a) Eligible community water supplies. Funds available under this Part shall only be used for providing financial assistance to a project or activity that is otherwise PWSLP eligible and is a lead service line replacement project or associated activities directly connected to the identification, planning, design, and replacement of lead service lines.

1. 1) Any project funded under this Part involving a lead service line replacement must replace the entire lead service line, not just a portion, unless a portion has already been replaced or is concurrently being replaced with another funding source; and
2. 2) A lead service line replacement includes the replacement of goosenecks, pigtails, and connectors, whether standalone or connected to a lead service line.

b) Ineligible community water supplies. Funds available under the PWSLP and this Part may not be used for providing financial assistance to the following:

1. 1) Federally-owned public water supply and for-profit non-community water supply;
2. 2) Systems that lack the technical, financial, and managerial capability to ensure compliance with the requirements of the SDWA, unless the assistance will ensure compliance and the owners or operators of the systems agree to undertake feasible and appropriate changes in operations to ensure compliance over the long-term; and

3. 3) Systems that are in significant noncompliance with any national primary drinking water regulation or variance, unless:

   1. A) The purpose of the assistance is to address the cause of the significant noncompliance and will ensure that the systems return to compliance; or
   2. B) The purpose of the assistance is unrelated to the cause of the significant noncompliance and the systems are on enforcement schedules (for maximum contaminant level and treatment technique violations) or have compliance plans (for monitoring and reporting violations) to return to compliance.

d) Ineligible Project Categories. The following project categories are not eligible for assistance under this Part:

1. 1) Corrosion control studies and corrosion control infrastructure;
2. 2) Water meters;
3. 3) Bottled water; and