Authority: §§ 32.1-163 through 32.1-176.7, 32.1-246, 32.1-246.1, and 62.1-44.18 through 62.1-44.19:9, Code of Virginia; and P.L. 92-500, P.L. 93-523 and P.L. 95-217, Federal Code.

A. It is the intent of the General Assembly that the Virginia Department of Health be the agency designated to receive and manage general and nongeneral funds appropriated pursuant to the federal Safe Drinking Water Act of 1996.

B. The fee schedule for charges to community waterworks shall be adjusted to the level necessary to cover the cost of operating the Waterworks Technical Assistance Program, consistent with § 32.1-171.1, Code of Virginia, and shall not exceed $3.00 per connection to all community waterworks.

C. Any positions necessary for the Office of Drinking Water to perform regulatory functions in dispersing federal State and Local Recovery Funds (SLRF) pursuant to the American Rescue Plan Act of 2021 (ARPA) for drinking water infrastructure shall be restricted positions and shall expire at the end of the grant period.

D. Out of this appropriation, $1,000,000 the first year and $1,500,000 the second year from the general fund shall be provided to the Virginia Department of Health to implement a Water Sampling Verification Program. The program shall ensure sampling is valid and representative of the actual water quality and conditions at the waterworks.

E. Out of this appropriation, $3,000,000 the first year and $3,373,581 the second year from the general fund is provided as state match for additional federal awards for the Drinking Water State Revolving Fund from the Infrastructure Investment and Jobs Act (P.L. 117-58).

F. Out of this appropriation, $1,833,505 from indirect cost recoveries the first year and $1,833,505 from the general fund the second year is provided to cover the operational costs of the Office of Drinking Water.

2. The Virginia Department of Health and the Department of Planning and Budget shall evaluate the budget for the Office of Drinking Water to: (i) determine the reasons behind the budget shortfall for the office beginning in fiscal year 2022; (ii) identify and explore funding opportunities in order to maximize nongeneral fund sources that can be used to support the office; (iii) analyze the office's budget to determine cost efficiencies, including consideration of merging the office with another appropriate office in the department to achieve cost savings; and (iv) report findings and recommendations on the budget shortfall, funding opportunities and cost efficiencies to the Governor, and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees by October 15, 2022.