(a) Establishment
Subject to the availability of appropriations, not later than 180 days after November 15, 2021, the Administrator shall establish an efficiency grant program (referred to in this section as the "efficiency grant program") under which the Administrator shall award grants to eligible entities for the replacement or repair of equipment that improves water or energy efficiency of small publicly owned treatment works, as identified in an efficiency audit.

(b) Eligible entities
The Administrator may award a grant under the efficiency grant program to—

(1) an owner or operator of a small publicly owned treatment works that serves—

(A) a population of not more than 10,000 people; or

(B) a disadvantaged community; or

(2) a nonprofit organization that seeks to assist a small publicly owned treatment works described in paragraph (1) to carry out the activities described in subsection (a).

(c) Report
Not later than 2 years after the date on which the Administrator establishes the efficiency grant program, and every 2 years thereafter, the Administrator shall submit to Congress a report describing—

(1) each recipient of a grant under the efficiency grant program; and

(2) a summary of the activities carried out under the efficiency grant program.

(d) Use of funds

(1) Small systems
Of the amounts made available for grants under this section, to the extent that there are sufficient applications, not less than 15 percent shall be used for grants to publicly owned treatment works that serve fewer than 3,300 people.

(2) Limitation on use of funds
Of the amounts made available for grants under this section, not more than 2 percent may be used to pay the administrative costs of the Administrator.