H.R. 3862 — Clean Water SRF Parity Act of 2025

This section amends the requirements for state water pollution control revolving funds (SRFs) under the Clean Water State Revolving Fund program. Specifically, it (1) expands the types of projects and activities eligible for SRF financial assistance by adding a new paragraph (c)(13) authorizing assistance to qualified nonprofit entities (as determined by the EPA Administrator) for construction or acquisition of, or improvements to, a treatment works, or any other activity described in paragraphs (c)(1) through (10) (e.g., publicly owned treatment works construction, stormwater management); (2) prohibits states from providing additional subsidization (e.g., principal forgiveness, low-interest loans) under subsection (i) for assistance to qualified nonprofits under new (c)(13) or to privately owned treatment works under new subsection (l); and (3) establishes a special rule in new subsection (l) authorizing SRF financial assistance to owners or operators of privately owned treatment works for specified activities (e.g., improvements to such works, water conservation, energy reduction, security measures, or other activities in (c)(1) through (10)), subject to a limitation that such activities must primarily and directly benefit the individuals or entities served by the works (and not shareholders or owners), as determined by the state SRF administrator.