; and (2) the ability of the public water system to successfully sustain a water loss control program upon completion of the audit. (c) Federal share The Federal share of the cost of any audit for which a grant is awarded by the Administrator under subsection (a) shall not exceed 50 percent of the cost of the audit. (d) Authorization of appropriations There are authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2018 through 2022. 3004. Tax-exempt facility bonds (a) Volume cap exception Section 146 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (o) Exception for bonds for water infrastructure in areas with drought or disaster (1) In general Only for purposes of this section, the term private activity bond shall not include any exempt facility bond issued as part of an issue described in paragraph (4) or (5) of section 142(a) if not less than 95 percent of the net proceeds of such bond are used to provide property located— (A) in an area that is, at any time during the 5-year period ending on the date of enactment of this subsection, rated by the U.S. Drought Monitor as having at least a D2 intensity, and (B) in a State that is under a gubernatorial drought declaration. (2) Termination Paragraph (1) shall not apply to any bond issued more than 10 years after the date of the enactment of this subsection. . (b) Recycled water facilities Section 142(e) of the Internal Revenue Code of 1986 is amended by adding at the end the following flush sentence: For purposes of this subsection, the term water includes recycled water. . (c) Effective date The amendments made by this subsection shall apply with respect to bonds issued after the date of the enactment of this Act. 3005. Improving green infrastructure and community water systems through State revolving loan funds (a) Water pollution control State revolving loan funds Section 603 of the Federal Water Pollution Control Act ( 33 U.S.C. 1383 ) is amended by adding at the end the