[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1920 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 1920

To amend title XIV of the Public Health Service Act (commonly known as 
 the ``Safe Drinking Water Act'') to ensure the safety of public water 
                    systems, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             March 10 (legislative day, February 22), 1994

 Mr. Domenici (for himself, Mr. Boren, Mr. Hatfield, and Mr. Nickles) 
introduced the following bill; which was read twice and referred to the 
               Committee on Environment and Public Works

_______________________________________________________________________

                                 A BILL


 
To amend title XIV of the Public Health Service Act (commonly known as 
 the ``Safe Drinking Water Act'') to ensure the safety of public water 
                    systems, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; REFERENCES.

    (a) Short Title.--This Act may be cited as the ``Safe Drinking 
Water Act Amendments of 1994''.
    (b) References to Title XIV of the Public Health Service Act.--
Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of title XIV of the Public 
Health Service Act (commonly known as the ``Safe Drinking Water Act'') 
(42 U.S.C. 300f et seq.).

SEC. 2. GOALS.

    Part A (42 U.S.C. 300f et seq.) is amended by inserting before 
section 1401 the following new section:

``SEC. 1400. GOALS.

    ``The goals of this Act are--
            ``(1) to ensure the quality and safety of drinking water 
        provided to the public by public water systems; and
            ``(2) to protect the public health from the threat of 
        disease caused by water-borne contaminants.''.

SEC. 3. DEFINITIONS.

    Section 1401 (42 U.S.C. 300f) is amended--
            (1) by striking paragraph (1) and inserting the following 
        new paragraph:
            ``(1) The term `primary drinking water regulation' means a 
        regulation that--
                    ``(A) applies to public water systems;
                    ``(B) specifies 1 or more contaminants subject to 
                regulation under section 1412;
                    ``(C) specifies for each contaminant referred to in 
                subparagraph (B)--
                            ``(i) a maximum contaminant level; or
                            ``(ii) a treatment technique; and
                    ``(D) contains criteria and procedures to ensure a 
                supply of drinking water that dependably complies with 
                each maximum contaminant level or treatment technique 
                referred to in subparagraph (C), including--
                            ``(i) quality control and testing 
                        procedures to ensure--
                                    ``(I) compliance with the level or 
                                treatment technique; and
                                    ``(II) proper operation and 
                                maintenance of the public water system; 
                                and
                            ``(ii) requirements as to--
                                    ``(I) the minimum quality of water 
                                that may be taken into the public water 
                                system; and
                                    ``(II) siting for new facilities 
                                for public water systems.'';
            (2) in paragraph (4), by striking the second sentence and 
        inserting the following new sentence: ``The term includes--
                    ``(A) a collection, treatment, storage, or 
                distribution facility that is under the ownership of 
                the system and is used primarily in connection with the 
                system; and
                    ``(B) a collection or pretreatment storage facility 
                that is not under the ownership of the system and that 
                is used primarily in connection with the system.'';
            (3) in paragraph (6), by inserting before the period at the 
        end the following: ``that is of public health or welfare 
        concern'';
            (4) in paragraph (14), by adding at the end the following 
        new sentence: ``The term includes any Native village, as 
        defined in section 3(c) of the Alaska Native Claims Settlement 
        Act (43 U.S.C. 1602(c)).''; and
            (5) by adding at the end the following new paragraphs:
            ``(15) The term `risk reduction benefits and costs' means 
        the public health benefits achieved by changing the regulated 
        level of a contaminant from 1 level to another level, taking 
        costs into consideration.
            ``(16) The term `community water system' means a public 
        water system that--
                    ``(A) serves at least 15 service connections used 
                by year-round residents of the area served by the 
                system; or
                    ``(B) regularly serves at least 25 year-round 
                residents.
            ``(17) The term `noncommunity water system' means a public 
        water system that is not a community water system.''.

SEC. 4. NATIONAL DRINKING WATER REGULATIONS.

    Section 1412 (42 U.S.C. 300g-1) is amended--
            (1) in subsection (a)(1), by striking the second sentence 
        and inserting the following new sentence: ``No regulation 
        referred to in the preceding sentence shall be required to 
        comply with the standards established under subsection (b)(3) 
        unless the regulation is revised to establish a different 
        maximum contaminant level (or treatment technique) after the 
        date of enactment of the Safe Drinking Water Act Amendments of 
        1994.'';
            (2) in paragraph (3), by striking ``, (2), or (3)'' each 
        place it appears and inserting ``or (2)'';
            (3) by striking subsection (b) and inserting the following 
        new subsection:
    ``(b)(1) In the case of a contaminant listed in the advance notice 
of proposed rulemaking published at 47 Fed. Reg. 9352, and at 48 Fed. 
Reg. 45502, for which a national primary drinking water regulation has 
not been issued as of the date of enactment of the Safe Drinking Water 
Act Amendments of 1994, the Administrator shall--
            ``(A) publish maximum contaminant level goals and issue a 
        national primary drinking water regulation in accordance with 
        paragraph (3) for the contaminant if the Administrator finds, 
        based on data available under section 1445, that the 
        contaminant occurs in drinking water at a level of public 
        health concern; and
            ``(B) not later than 18 months after the date of enactment 
        of the Safe Drinking Water Act Amendments of 1994, eliminate 
        monitoring, compliance, and enforcement requirements for the 
        contaminant if the Administrator finds, based on the data 
        referred to in subparagraph (A), that the contaminant does not 
        occur in drinking water at a level of public health concern.
    ``(2)(A) Not later than 3 years after the date of enactment of the 
Safe Drinking Water Act Amendments of 1994, and every 5 years 
thereafter, the Administrator shall issue maximum contaminant level 
goals and national primary drinking water regulations for new 
contaminants selected in accordance with this paragraph.
    ``(B) The Administrator shall review the national drinking water 
occurrence data base maintained under section 1445(b). After notice and 
an opportunity for public comment, the Administrator shall assess all 
occurrence and public health information available with respect to each 
contaminant in the data base.
    ``(C) Based on the assessment under subparagraph (B), the 
Administrator shall determine, with respect to each contaminant listed 
under section 1445, based on occurrence and public health concern, 
whether--
            ``(i) the issuance of a national primary drinking water 
        regulation is or is not appropriate; or
            ``(ii) additional health effects or occurrence information 
        is necessary before a determination under clause (i) can be 
        made.
    ``(D) For each contaminant with respect to which the Administrator 
makes a determination under subparagraph (C)(i) that the issuance of a 
national primary drinking water regulation is not appropriate, the 
Administrator shall make a determination on the continuation of 
monitoring under section 1445(a).
    ``(3)(A) Each maximum contaminant level goal established under this 
subsection shall be set at a level--
            ``(i) at which no known or anticipated adverse effects on 
        human health occur; and
            ``(ii) that allows an adequate margin of safety.
    ``(B) Each national primary drinking water regulation for a 
contaminant for which a maximum contaminant level goal is established 
under this subsection shall specify a maximum level for the contaminant 
that is achievable by public water systems with the use of the best 
technology, treatment techniques, and other means, taking public health 
risk reduction benefits and cost into consideration, that the 
Administrator finds are available, after examination for efficacy under 
field conditions (and not solely under laboratory conditions).
    ``(C) In each national primary drinking water regulation, the 
Administrator shall identify appropriate best technology treatment 
techniques (including watershed protection and pollution prevention) 
that may be used to meet applicable maximum contaminant levels under 
this subsection for public water systems that serve--
            ``(i) fewer than 1,000 people;
            ``(ii) between 1,000 and 10,000 people; and
            ``(iii) more than 10,000 people.
    ``(4) Notwithstanding paragraph (3), the Administrator shall issue 
national primary drinking water regulations for radionuclides, 
disinfection byproducts, sulfate, and corrosion byproducts that will be 
protective of public health and take into account--
            ``(A) the health benefits to be achieved by reducing the 
        level of the contaminants in drinking water relative to 
        reducing the level of the contaminants in other media;
            ``(B) the availability of technology--
                    ``(i) that is effective in removing or otherwise 
                treating the contaminants under field conditions 
                reflecting a representative range of water qualities 
                (and not solely under laboratory conditions); and
                    ``(ii) that does not cause significant adverse 
                impacts on--
                            ``(I) other elements of drinking water 
                        quality;
                            ``(II) other environmental media, including 
                        impacts related to disposal of treatment 
                        residuals; or
                            ``(III) the efficacy of other drinking 
                        water treatment or processes; and
            ``(C) the costs to consumers of the regulation.
    ``(5)(A) Subject to subparagraph (B), each national primary 
drinking water regulation that establishes a maximum contaminant level 
shall list the technology, treatment techniques, compliance timeframes, 
and other means that the Administrator finds are available for the 
purpose of meeting the maximum contaminant level.
    ``(B) A regulation issued under this subsection shall not require 
that any specified technology, treatment technique, compliance 
timeframe, or other means be used for the purpose of meeting the 
maximum contaminant level.
    ``(6)(A)(i) The Administrator may issue a national primary drinking 
water regulation that requires the use of a treatment technique in lieu 
of establishing a maximum contaminant level, if the Administrator makes 
a finding that it is not economically or technologically feasible to 
ascertain the level of the contaminant.
    ``(ii) If the Administrator issues a regulation under clause (i), 
the Administrator shall--
            ``(I) identify such treatment techniques as will be 
        protective of public health; and
            ``(II) take into account the factors specified in 
        paragraphs (3) and (4), as appropriate.
    ``(iii)(I) Subject to subclause (II), a regulation issued under 
clause (i) shall specify each treatment technique known to the 
Administrator that meets the requirements of this paragraph.
    ``(II) The Administrator may grant a variance from any specified 
treatment technique in accordance with section 1415(3).
    ``(B)(i) Not later than 18 months after June 19, 1986, the 
Administrator shall propose and issue national primary drinking water 
regulations specifying criteria under which filtration (including 
coagulation and sedimentation, as appropriate) is required as a 
treatment technique for public water systems supplied by surface water 
sources. In issuing the regulations, the Administrator shall consider 
the quality of source waters, protection afforded by watershed 
management, treatment practices (such as disinfection and length of 
water storage), and other factors relevant to the protection of health.
    ``(ii)(I) In lieu of variances under section 1415, the 
Administrator shall specify procedures by which a State shall determine 
which public water systems within the jurisdiction of the State shall 
adopt filtration under the criteria of clause (i).
    ``(II) A State may require a public water system to provide studies 
or other information to assist in the determination described in 
subclause (I).
    ``(III) The procedures referred to in subclause (I) shall provide 
notice and an opportunity for a public hearing on the determination 
described in such subclause.
    ``(IV) If a State determines under this clause that filtration is 
required, the State shall prescribe a schedule for compliance by the 
public water system with the filtration requirement. The schedule shall 
take into account the time that is reasonably necessary for the public 
water system to plan, design, finance, and construct filtration 
facilities and make such adjustments to operating practices as are 
necessary to achieve compliance with the filtration requirement.
    ``(iii) Not later than 2 years after the Administrator establishes 
the criteria and procedures under this subparagraph, a State with 
primary enforcement responsibility for public water systems under 
section 1413 shall adopt such regulations as are necessary to carry out 
this subparagraph. Not later than 1 year after the date of adoption of 
the regulations, the State shall make determinations regarding 
filtration for all the public water systems within the jurisdiction of 
the State supplied by surface waters.
    ``(iv) If a State does not have primary enforcement responsibility 
for public water systems, the Administrator shall have the same 
authority to make the determination described in clause (ii) in the 
State as the State would have under such clause. A filtration 
requirement or schedule under this subparagraph shall be treated as if 
the requirement or schedule were a requirement of a national primary 
drinking water regulation.
    ``(7)(A) Not later than 4 years after the date of enactment of the 
Safe Drinking Water Act Amendments of 1994, the Administrator shall 
propose and issue--
            ``(i) national primary drinking water regulations requiring 
        disinfection as a treatment technique for all public water 
        systems; and
            ``(ii) a rule specifying criteria that will be used by the 
        Administrator (or delegated State authorities) to grant 
        variances from the requirement described in clause (i) in 
        accordance with paragraphs (1)(B) and (3) of section 1415.
    ``(B) In carrying out section 1442(g), the Administrator (or the 
delegated State authority) shall, if appropriate, give special 
consideration to providing technical assistance to small public water 
systems in complying with the regulations issued under this paragraph.
    ``(8)(A)(i) The Administrator shall review each national primary 
drinking water regulation issued prior to the date of enactment of this 
clause not later than 30 months after the date of enactment.
    ``(ii) If the Administrator determines, based on data available 
under section 1445, that a contaminant subject to regulation does not 
occur in public water systems at a level of public health concern, the 
Administrator shall eliminate monitoring, compliance, and enforcement 
requirements from the contaminant regulation.
    ``(iii) In addition to the review under clause (i), the 
Administrator shall review each regulation referred to in clause (i) 
not later than 5 years after the date of enactment of this clause. If 
the Administrator determines that a regulation is not consistent with 
the factors specified in paragraph (3) or (4), as appropriate, the 
Administrator shall issue a revised regulation in accordance with the 
factors.
    ``(B)(i) Each national primary drinking water regulation issued 
after the date of enactment of this clause shall include a schedule for 
periodic review of the regulation.
    ``(ii) Each review referred to in clause (i) shall include an 
analysis of new health effects and occurrence data, and innovations or 
changes in technology, treatment techniques, or other activities, that 
have become available since the date of issuance of the regulation.
    ``(iii) If the Administrator determines that the contaminant 
subject to regulation no longer occurs in drinking water at a level of 
public health concern, the Administrator shall eliminate monitoring, 
compliance, and enforcement requirements from the contaminant 
regulation.
    ``(iv) If the Administrator determines that the regulation is not 
consistent with the factors specified in paragraph (3) or (4), as 
appropriate, the Administrator shall issue a revised regulation in 
accordance with the factors.
    ``(9)(A) Subject to subparagraph (B), a national primary drinking 
water regulation issued under this subsection (or a revision of the 
regulation) shall take effect in accordance with a schedule issued by 
the Administrator in the regulation.
    ``(B) Each schedule, including monitoring requirements, shall--
            ``(i) be for not less than 2 years; and
            ``(ii) take into account the time that is reasonably 
        necessary for public water systems to plan, design, finance, 
        and construct treatment facilities and make such adjustments to 
        operating practices as are necessary to achieve compliance with 
        the regulation.
    ``(C) A regulation issued under subsection (a) shall be superseded 
by a regulation issued under this subsection to the extent provided by 
the regulation issued under this subsection.
    ``(10) No national primary drinking water regulation may require 
the addition of any substance for preventive health care purposes 
unrelated to the contamination of drinking water.'';
            (4) in subsection (e), by striking the second sentence and 
        inserting the following new sentence: ``The Board shall 
        respond, as the Board considers appropriate, and the 
        Administrator shall publish the findings and recommendations of 
        the Board, if any, as part of the notice of proposed rulemaking 
        of the regulation.''; and
            (5) by adding at the end the following new subsection:
    ``(f) The Administrator may utilize negotiated rulemaking 
procedures provided for under subchapter III of chapter 5 of title 5, 
United States Code (commonly known as the `Negotiated Rulemaking Act of 
1990'), if the Administrator determines that the procedures will 
facilitate the issuance of regulations required by this section.''.

SEC. 5. STATE PRIMARY ENFORCEMENT RESPONSIBILITY.

    Section 1413(a) (42 U.S.C. 300g-2(a)) is amended--
            (1) by striking paragraph (1) and inserting the following 
        new paragraph:
            ``(1) has adopted drinking water regulations that are no 
        less stringent than the national primary drinking water 
        regulations issued by the Administrator under subsections (a) 
        and (b) of section 1412, by not later than 2 years after the 
        date of issuance by the Administrator;''; and
            (2) by striking paragraph (4) and inserting the following 
        new paragraph:
            ``(4) if the State permits variances from the requirements 
        of the drinking water regulations of the State that meet the 
        requirements of paragraph (1), permits the variances under 
        conditions and in a matter that is not less stringent than the 
        conditions under, and the manner in which, variances may be 
        granted under section 1415; and''.

SEC. 6. ENFORCEMENT OF DRINKING WATER REGULATIONS.

    Section 1414 (42 U.S.C. 300g-3) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)(A), by striking ``or an 
                exemption under section 1416'' each place it appears; 
                and
                    (B) in paragraph (2), by striking ``or an exemption 
                under section 1416(f)'' each place it appears;
            (2) in subsection (b)--
                    (A) by striking ``or exemption''; and
                    (B) by striking ``or 1416'';
            (3) by striking subsection (c) and inserting the following 
        new subsection:
    ``(c)(1) Each owner or operator of a public water system shall give 
notice to the persons served by the system--
            ``(A) of any failure on the part of the public water system 
        to--
                    ``(i) comply with an applicable maximum contaminant 
                level or treatment technique requirement of, or a 
                testing procedure prescribed by, a national primary 
                drinking water regulation; or
                    ``(ii) perform monitoring required under section 
                1445(a); and
            ``(B) if the public water system is subject to a variance 
        granted under section 1415(1) because of an inability to meet a 
        maximum contaminant level requirement, of--
                    ``(i) the existence of the variance; and
                    ``(ii) any failure to comply with the requirements 
                of a schedule prescribed pursuant to the variance.
    ``(2)(A) The Administrator shall by regulation prescribe the 
frequency for giving notice under this subsection.
    ``(B) Subject to subparagraphs (C) and (D), not later than 15 
months after the date of enactment of the Safe Drinking Water Act 
Amendments of 1994, the Administrator shall revise the regulations 
required under subparagraph (A) to provide for different types and 
frequencies of notice based on the seriousness of any potential adverse 
health effects that may be involved.
    ``(C) Notice of a violation designated by the Administrator as 
posing a serious potential adverse health effect shall be given as soon 
as practicable, but in no case later than 14 days after the violation.
    ``(D) Notice of a violation judged to be less serious than 
violations described in subparagraph (C) shall be given not less 
frequently than annually.
    ``(3) The Administrator shall provide guidance as to the form, 
manner, and content of the notices to be used to provide information as 
promptly and effectively as practicable, taking into account both the 
seriousness of any potential adverse health effects and the likelihood 
of reaching all affected persons. Each State, in consultation with 
public water systems in the State, shall determine the actual form, 
manner, and content of the notices.
    ``(4) The Administrator may require the owner or operator of a 
public water system to give notice to the persons served by the system 
of the contaminant level of any unregulated contaminant required to be 
monitored under section 1445(a).
    ``(5) A person who violates this subsection or regulations issued 
under this subsection shall be subject to a civil penalty in an amount 
not to exceed $25,000.''; and
            (4) in subsection (f)(2), by striking ``or exemption''.

SEC. 7. VARIANCES.

    Section 1415 (42 U.S.C. 300g-4) is amended to read as follows:

``SEC. 1415. VARIANCES.

    ``Notwithstanding any other provision of this part, a variance from 
a national primary drinking water regulation may be granted as follows:
            ``(1) A State that has primary enforcement responsibility 
        for public water systems under section 1413 may grant 1 or more 
        variances from an applicable national primary drinking water 
        regulation to 1 or more public water systems within the 
        jurisdiction of the State.
            ``(2)(A) A variance may be issued only if--
                    ``(i) the State has determined that the water 
                system cannot afford to install the best available 
                technology or other technology that has been identified 
                by the Administrator as appropriate for the system size 
                category to meet the maximum contaminant level; and
                    ``(ii) it is not feasible for the water system to 
                connect with another source of water that will meet the 
                standards.
            ``(B) If the State determines that a water system is unable 
        to comply with a designated best available technology, the 
        system shall comply with a best available affordable technology 
        as designated by the Administrator. The measures comprising the 
        best available affordable technology may include requirements 
        for public education and notification, and use of alternative 
        technologies that, while the technologies cannot bring the 
        contaminant level below the maximum contaminant level, will not 
        result in an unreasonable risk to health.
            ``(3) After a variance is issued, the variance shall be 
        reviewed by the State not less than every 3 years to determine 
        if the conditions for granting the variance continue to exist. 
        It shall be the responsibility of the water system to provide 
        documentation to the State indicating that then current best 
        available technology for the system size continues to be 
        unaffordable and that the system continues to be unable to 
        connect with another source of water that meets the standards.
            ``(4) Before a determination to grant a variance is made by 
        the State, the State shall provide notice and an opportunity 
        for a public hearing on the determination. Each State that 
        grants a variance shall promptly notify the Administrator of 
        the granting of the variance. The notification shall include 
        the reasons for the variance and the documentation used to 
        grant the variance.
            ``(5) Not later than 18 months after the date of enactment 
        of the Safe Drinking Water Act Amendments of 1994, the 
        Administrator, in consultation with the States, shall develop 
        affordability guidance. The affordability guidance shall be 
        reviewed by the Administrator and the States not less than 
        every 5 years to determine if changes are needed to the 
        guidance.''.

SEC. 8. EXEMPTIONS.

    Section 1416 (42 U.S.C. 300g-5) is repealed.

SEC. 9. RETURN OF WATER.

    Part B (42 U.S.C. 300g et seq.) is amended by inserting after 
section 1415 the following new section:

``SEC. 1416. PROHIBITION ON THE RETURN OF WATER TO PUBLIC WATER 
              SYSTEMS.

    ``(a) In General.--
            ``(1) Prohibition.--Except as provided in paragraph (2), 
        notwithstanding any other provision of law, no treated drinking 
        water may be removed from a public water system used for any 
        purpose or routed through a device or pipe outside the public 
        water system, and returned to the public water system.
            ``(2) Exceptions.--The prohibition in paragraph (1) shall 
        not apply to a device or pipe totally within the control of 1 
        or more public water systems or to connections between water 
        mains.
    ``(b) State Enforcement.--Subsection (a) shall be enforced in all 
States beginning on the date that is 2 years after the date of 
enactment of the Safe Drinking Water Act Amendments of 1994. Each State 
shall enforce the subsection through State or local plumbing codes, or 
such other means of enforcement as the State determines is 
appropriate.''.

SEC. 10. TAMPERING.

    Subsection (d) of section 1432 (42 U.S.C. 300i-1(d)) is amended to 
read as follows:
    ``(d) Definition of Tamper.--As used in this section, the term 
`tamper' means, with respect to a public water system--
            ``(1) to introduce a contaminant into the public water 
        system with the intention of harming persons;
            ``(2) to otherwise interfere with the operation of the 
        public water system with the intention of harming persons; or
            ``(3) to inject water that has gone out of the public water 
        system, back into the system in violation of section 1416.''.

SEC. 11. RESEARCH, TECHNICAL ASSISTANCE, INFORMATION, AND TRAINING OF 
              PERSONNEL.

    Section 1442 (42 U.S.C. 300j-1) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``may'' and by 
                inserting ``shall''; and
                    (B) in paragraph (2)(A), by inserting before the 
                period at the end the following: ``and for other 
                purposes, including--
            ``(i) the development and dissemination of advisory 
        measures to protect against contaminants that have not been 
        found to occur in drinking water at levels of public health 
        concern;
            ``(ii) assistance in achieving compliance with the public 
        notification requirements of section 1414(c); and
            ``(iii) the development and dissemination of minimum 
        guidance for the certification of laboratories that perform 
        drinking water analyses, and for the certification of 
        individuals who operate public water systems, for use by the 
        States in ensuring--
                    ``(I) the validity of monitoring reports by 
                regulations issued under section 1445; and
                    ``(II) the competence of system operators.''; and
            (2) by striking subsection (f) and inserting the following 
        new subsection:
    ``(f)(1) There are authorized to be appropriated to carry out this 
section, other than paragraphs (1) and (2)(B) of subsection (a) and 
provisions relating to research--
            ``(A) $15,000,000 for fiscal year 1975;
            ``(B) $25,000,000 for fiscal year 1976;
            ``(C) $35,000,000 for fiscal year 1977;
            ``(D) $17,000,000 for each of fiscal years 1978 and 1979;
            ``(E) $21,405,000 for fiscal year 1980;
            ``(F) $30,000,000 for fiscal year 1981; and
            ``(G) $35,000,000 for fiscal year 1982.
    ``(2) There are authorized to be appropriated to carry out 
subsection (a)(1) for each of fiscal years 1995 through 1999 not more 
than the following amounts:

``Fiscal Year                                                   Amount 
    1994..........................................          $20,000,000
    1995..........................................           20,000,000
    1996..........................................           20,000,000
    1997..........................................           20,000,000
    1998..........................................          20,000,000.
    ``(3) There are authorized to be appropriated to carry out 
subsection (a)(2)(B) $8,000,000 for each of fiscal years 1978 through 
1982. There are authorized to be appropriated to carry out subsection 
(a)(2)(B) for each of fiscal years 1987 through 1991 not more than the 
following amounts:

``Fiscal Year                                                   Amount 
    1987..........................................           $7,650,000
    1988..........................................            7,650,000
    1989..........................................            8,050,000
    1990..........................................            8,050,000
    1991..........................................           8,050,000.
    ``(4) There are authorized to be appropriated to carry out this 
section (other than subsection (g), paragraphs (1) and (2)(B) of 
subsection (a), and provisions relating to research) for each of fiscal 
years 1987 through 1991 not more than the following amounts:

``Fiscal Year                                                  Amount  
        1987.........................................       $35,600,000
        1988.........................................        35,600,000
        1989.........................................        38,020,000
        1990.........................................        38,020,000
        1991.........................................    38,020,000.''.

SEC. 12. GRANTS FOR STATE PROGRAMS.

    Section 1443 (42 U.S.C. 300j-2) is amended--
            (1) in subsection (a)(7), by striking the table and 
        inserting the following new table:

``Fiscal Year                                                  Amount  
        1987.........................................       $37,200,000
        1988.........................................        37,200,000
        1989.........................................        40,150,000
        1990.........................................        40,150,000
        1991.........................................        40,150,000
        1995.........................................       100,000,000
        1996.........................................       125,000,000
        1997.........................................       150,000,000
        1998.........................................       150,000,000
        1999.........................................   150,000,000.'';
        and
            (2) in subsection (c)(1)--
                    (A) by striking ``and exemptions'' both places it 
                appears; and
                    (B) by striking ``sections 1415 and 1416'' and 
                inserting ``section 1415''.

SEC. 13. RECORDS, OCCURRENCE DATA, AND INSPECTIONS.

    Section 1445 (42 U.S.C. 300j-4) is amended to read as follows:

``SEC. 1445. RECORDS, OCCURRENCE DATA, AND INSPECTIONS.

    ``(a) Records and Monitoring.--
            ``(1) In general.--
                    ``(A) In general.--Each person who is a supplier of 
                water, who is or may be otherwise subject to a primary 
                drinking water regulation prescribed under section 1412 
                or to an applicable underground injection control 
                program (as defined in section 1422(c)), who is or may 
                be subject to the permit requirement of section 1424 or 
                to an order issued under section 1441, or who is a 
                grantee, shall establish and maintain such records, 
                make such reports, conduct such monitoring, and provide 
                such information as the Administrator may reasonably 
                require by regulation to assist the Administrator in--
                            ``(i) establishing regulations under this 
                        title;
                            ``(ii) determining whether the person has 
                        acted or is acting in compliance with this 
                        title;
                            ``(iii) administering a program of 
                        financial assistance under this title;
                            ``(iv) evaluating the health risks of an 
                        unregulated contaminant; or
                            ``(v) advising the public of the risks.
                    ``(B) Considerations by the administrator.--In 
                requiring a public water system to conduct monitoring 
                under this subsection, the Administrator may take into 
                consideration the system size and the contaminants 
                likely to be found in the drinking water of the system.
                    ``(C) Considerations by states.--Notwithstanding 
                subparagraph (A), a State with primary enforcement 
                responsibility under section 1413 may otherwise 
                establish, modify, or eliminate monitoring requirements 
                for a system or class of systems based on occurrence 
                data and other information concerning the system or 
                class of systems that is available to the State.
            ``(2) General monitoring program for unregulated 
        contaminants.--
                    ``(A) Establishment.--Not later than 18 months 
                after the date of enactment of this subparagraph, the 
                Administrator shall issue regulations establishing a 
                monitoring program for unregulated contaminants.
                    ``(B) Frequency of monitoring.--The regulations 
                shall require monitoring of drinking water supplied by 
                the public water system and shall vary the frequency 
                and schedule of monitoring requirements for systems 
                based on the number of persons served by the system, 
                the source of supply, and the contaminants likely to be 
                found. Each system required to conduct monitoring shall 
                conduct the monitoring at least once every 5 years 
                after the effective date of the regulations of the 
                Administrator, unless the Administrator requires more 
                frequent monitoring.
            ``(3) Monitoring program for certain unregulated 
        contaminants.--
                    ``(A) In general.--Not later than 18 months after 
                the date of enactment of this subparagraph and every 5 
                years thereafter, the Administrator shall issue revised 
                regulations under paragraph (2) listing not more than 
                30 unregulated contaminants to be monitored by public 
                water systems and included in the national drinking 
                water occurrence data base maintained pursuant to 
                subsection (b).
                    ``(B) Monitoring by large systems.--A public water 
                system that serves 10,000 or more people shall conduct 
                monitoring for all contaminants listed under 
                subparagraph (A).
                    ``(C) Monitoring plan for small systems.--Each 
                State shall develop a representative monitoring plan to 
                assess the occurrence of unregulated contaminants in 
                public water systems that serve fewer than 10,000 
                people. The plan shall require monitoring by systems 
                representative of different sizes, types, and 
                geographic locations within the State. The 
                Administrator shall make available to the States, on 
                request, laboratory capacity to analyze samples taken 
                pursuant to the plan.
            ``(4) Use of monitoring results.--Each public water system 
        that conducts monitoring of unregulated contaminants pursuant 
        to this subsection shall provide the results of the monitoring 
        to the primary enforcement authority.
            ``(5) Public notification.--Notification of the 
        availability of the results of the monitoring programs required 
        under paragraph (2), and notification of the availability of 
        the results of the monitoring program referred to in paragraph 
        (6), shall be given to the persons served by the system and the 
        Administrator.
            ``(6) Waiver of monitoring requirement.--The Administrator 
        may waive the monitoring requirement under paragraph (2) for a 
        system that has conducted a monitoring program after January 1, 
        1983, if the Administrator determines the program to have been 
        consistent with the regulations issued under this section.
            ``(7) Monitoring by very small systems.--A system that 
        supplies fewer than 150 service connections shall be treated as 
        complying with this subsection if the system provides water 
        samples or the opportunity for sampling according to rules 
        established by the Administrator.
            ``(8) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this subsection 
        $30,000,000 for fiscal year 1987, to remain available until 
        expended.
    ``(b) Occurrence Data Base.--
            ``(1) In general.--Not later than 2 years after the date of 
        enactment of the Safe Drinking Water Act Amendments of 1994, 
        the Administrator shall assemble and maintain a national 
        drinking water occurrence data base, using information on the 
        occurrence of both regulated and unregulated contaminants in 
        public water systems obtained under subsection (a), and 
        information from other public and private sources.
            ``(2) Use of data.--The data in the data base referred to 
        in paragraph (1) shall be used by the Administrator in making 
        any determination under section 1412 with respect to the 
        occurrence of a contaminant in drinking water at a level of 
        public health concern.
            ``(3) Public recommendations.--The Administrator shall 
        periodically solicit recommendations from the appropriate 
        officials of the National Academy of Sciences, and any person 
        may submit recommendations to the Administrator, with respect 
        to contaminants that should be included in the national 
        drinking water occurrence data base, including recommendations 
        with respect to additional unregulated contaminants that should 
        be listed in regulations issued under subsection (a)(3).
    ``(c) Entry and Inspection.--
            ``(1) In general.--
                    ``(A) Authority of the administrator.--
                            ``(i) In general.--Except as provided in 
                        paragraph (2), the Administrator, or a 
                        representative of the Administrator duly 
                        designated by the Administrator, upon 
                        presenting appropriate credentials and a 
                        written notice to a supplier of water or any 
                        other person subject to--
                                    ``(I) a national primary drinking 
                                water regulation prescribed under 
                                section 1412;
                                    ``(II) an applicable underground 
                                injection control program; or
                                    ``(III) a requirement to conduct 
                                monitoring with respect to an 
                                unregulated contaminant pursuant to 
                                subsection (a),
                        or a person in charge of any of the property of 
                        the supplier or other person referred to in 
                        subclause (I), (II), or (III), may enter any 
                        establishment, facility, or other property of 
                        the supplier or other person in order to 
                        determine whether the supplier or other person 
                        has acted or is acting in compliance with this 
                        title.
                            ``(ii) Purposes of entry.--An entry under 
                        clause (i) may include--
                                    ``(I) inspection, at reasonable 
                                times, of records, files, papers, 
                                processes, controls, and facilities; or
                                    ``(II) the testing of any feature 
                                of a public water system, including the 
                                raw water source of the system.
                    ``(B) Access to records.--The Administrator or the 
                Comptroller General of the United States (or a 
                representative designated by the Administrator or the 
                Comptroller General) shall have access for the purpose 
                of audit and examination to any record, report, or 
                information of a grantee that is required to be 
                maintained under subsection (a) or that is pertinent to 
                any financial assistance under this title.
            ``(2) Entry if state has primary enforcement 
        responsibility.--
                    ``(A) Requirement of notice.--No entry may be made 
                under paragraph (1)(A)(i) to an establishment, 
                facility, or other property of a supplier of water or 
                other person subject to a national primary drinking 
                water regulation if the establishment, facility, or 
                other property is located in a State that has primary 
                enforcement responsibility for public water systems 
                under section 1413, unless, before written notice of 
                the entry is made, the Administrator (or a designee of 
                the Administrator) notifies the State agency charged 
                with responsibility for safe drinking water of the 
                reasons for the entry.
                    ``(B) Showing by a state.--Upon a showing by the 
                State agency that an entry described in subparagraph 
                (A) will be detrimental to the administration of the 
                program of the State of primary enforcement 
                responsibility, the Administrator shall take the 
                showing into consideration in determining whether to 
                make the entry.
                    ``(C) Use of notice information.--No State agency 
                that receives notice under this paragraph of an entry 
                proposed to be made under paragraph (1) may use the 
                information contained in the notice to inform the 
                person whose property is proposed to be entered of the 
                proposed entry. If a State agency so uses the 
                information, notice to the agency under this paragraph 
                shall not be required until such time as the 
                Administrator determines that the agency has provided 
                the Administrator with satisfactory assurances that the 
                agency will no longer so use information contained in a 
                notice under this paragraph.
    ``(d) Penalty.--A person who fails or refuses to comply with a 
requirement of subsection (a) or to allow the Administrator or the 
Comptroller General of the United States (or a representative of the 
Administrator or the Comptroller General) to enter and conduct an audit 
or inspection authorized by subsection (b) shall be subject to a civil 
penalty in an amount not to exceed $25,000.
    ``(e) Trade Secrets.--
            ``(1) In general.--Subject to paragraph (2), upon a showing 
        satisfactory to the Administrator by a person that any 
        information required under this section from the person, if 
        made public, would divulge a trade secret or secret process of 
        the person, the Administrator shall consider the information 
        confidential in accordance with section 1905 of title 18, 
        United States Code. If the applicant fails to make a showing 
        satisfactory to the Administrator, the Administrator shall 
        notify the applicant not later than 30 days before releasing 
        the information to which the application relates (unless the 
        public health or safety requires an earlier release of the 
        information).
            ``(2) Disclosure.--Any information required under this 
        section--
                    ``(A) may be disclosed to any officer, employee, or 
                authorized representative of the United States 
                concerned with carrying out this title, to a committee 
                of Congress, or when relevant in a proceeding under 
                this title; and
                    ``(B) shall be disclosed as described in 
                subparagraph (A) to the extent that the information 
                deals with the level of contaminants in drinking water.
            ``(3) Definition.--As used in this subsection, the term 
        `information required under this section' means any paper, 
        book, document, or information, or any particular part thereof, 
        reported to or otherwise obtained by the Administrator under 
        this section.
    ``(f) Definitions.--As used in this section:
            ``(1) Grantee.--The term `grantee' means a person who 
        applies for or receives financial assistance, by grant, 
        contract, or loan guarantee, under this title.
            ``(2) Person.--The term `person' includes a Federal 
        agency.''.

SEC. 14. JUDICIAL REVIEW.

    Section 1448(b) (42 U.S.C. 300j-7(b)) is amended--
            (1) by striking ``or exemption'' each place it appears; and
            (2) in paragraph (1), by striking ``or 1416''.

SEC. 15. CITIZEN'S CIVIL ACTION.

    Section 1449(b) (42 U.S.C. 300j-8(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``, or'' and 
                inserting a semicolon; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(C) against a public water system that is 
                operating under the terms of--
                            ``(i) an administrative compliance order;
                            ``(ii) an administrative consent agreement; 
                        or
                            ``(iii) a judicial consent decree, and
                is in compliance with the terms of the order, 
                agreement, or decree; or''; and
            (2) in the third sentence--
                    (A) by striking ``or 1416''; and
                    (B) by striking ``or exemption''.

SEC. 16. STATE REVOLVING LOAN FUNDS.

    Title XIV of the Public Health Service Act (42 U.S.C. 300f et seq.) 
is amended by adding at the end the following new part:

                  ``PART G--STATE REVOLVING LOAN FUNDS

``SEC. 1471. GENERAL AUTHORITY.

    ``(a) Capitalization Grant Agreements.--The Administrator shall 
offer to enter into an agreement with each State having primacy to make 
capitalization grants to the State pursuant to section 1472 (referred 
to in this part as `capitalization grants') to establish a drinking 
water treatment State revolving loan fund (referred to in this part as 
a `State loan fund').
    ``(b) Requirements of Agreements.--An agreement entered into 
pursuant to this section shall establish, to the satisfaction of the 
Administrator, that--
            ``(1) the State has established a State loan fund that 
        complies with the requirements of this part;
            ``(2) the State loan fund will be administered by an 
        instrumentality of the State that has the powers and 
        authorities that are required to operate the State loan fund in 
        accordance with this part;
            ``(3) the State will deposit the capitalization grants into 
        the State loan fund;
            ``(4) the State will deposit all loan repayments received, 
        and interest earned on the amounts deposited into the State 
        loan fund under this part, into the State loan fund;
            ``(5) the State, beginning in fiscal year 1996, will 
        deposit into the State loan fund an amount equal to at least 20 
        percent of the total amount of each capitalization grant to be 
        made to the State on or before the date on which the grant is 
        made to the State;
            ``(6) the State will use funds in the State loan fund in 
        accordance with an intended use plan prepared pursuant to 
        section 1474(b); and
            ``(7) the State and loan recipients that receive funds that 
        the State makes available from the State loan fund will use 
        accounting, audit, and fiscal procedures that conform to 
        generally accepted accounting standards, as determined by the 
        Administrator.
    ``(c) Administration of State Loan Funds.--
            ``(1) In general.--The authority to establish assistance 
        priorities and carry out oversight and related activities 
        (other than financial administration) with respect to financial 
        assistance provided with amounts deposited into the State loan 
        fund shall remain with the State agency that has primary 
        responsibility for the administration of the State program 
        pursuant to section 1413(a).
            ``(2) Financial administration.--A State may combine the 
        financial administration of the State loan fund pursuant to 
        this part with the financial administration of any other 
        revolving loan fund established by the State if the 
        Administrator determines that--
                    ``(A) the grants to be provided to the State under 
                this part, together with loan repayments and interest 
                deposited into the State loan fund pursuant to this 
                part, will be segregated and used solely for the 
                purposes specified in this part; and
                    ``(B) the authority to establish assistance 
                priorities and carry out oversight and related 
                activities (other than financial administration) with 
                respect to such assistance remains with the State 
                agency having primary responsibility for administration 
                of the State program under section 1413(a).

``SEC. 1472. CAPITALIZATION GRANTS.

    ``(a) General Authority.--The Administrator may make grants to 
capitalize State loan funds to a State that has entered into an 
agreement pursuant to section 1471(a).
    ``(b) Formula for Allotment of Funds.--
            ``(1) In general.--Subject to subsection (c), funds made 
        available to carry out this part shall be allotted to States 
        that have entered into an agreement pursuant to section 1471(a) 
        in accordance with a formula that is the same as the formula 
        used to distribute public water system supervision grant funds 
        under section 1443 for fiscal year 1994.
            ``(2) Other jurisdictions.--Each formula established 
        pursuant to paragraph (1) shall reserve 0.5 percent of the 
        amounts made available to carry out this part for a fiscal year 
        for providing capitalization grants to jurisdictions referred 
        to in subsection (e), other than Indian tribes.
    ``(c) Reservation of Funds.--
            ``(1) Indian tribes.--
                    ``(A) In general.--For each fiscal year, prior to 
                the allotment of funds made available to carry out this 
                part, the Administrator shall reserve 1 percent of the 
                funds for providing financial assistance to Indian 
                tribes pursuant to subsection (e).
                    ``(B) Use of funds.--Funds reserved pursuant to 
                subparagraph (A) shall be used to address the most 
                significant threats to public health associated with 
                public water systems that serve Indian tribes, as 
                determined by the Administrator in consultation with 
                the Commissioner of Indian Affairs.
                    ``(C) Needs assessment.--The Administrator, in 
                consultation with the Commissioner of Indian Affairs, 
                shall, in accordance with a schedule that is consistent 
                with the needs survey for assessments conducted 
                pursuant to section 1475(c), prepare a biennial survey 
                and assess the needs of drinking water treatment 
                facilities to serve Indian tribes, including an 
                evaluation of the public water systems that pose the 
                most significant threats to public health.
            ``(2) Public health emergencies.--
                    ``(A) In general.--For each fiscal year, prior to 
                the allotment of funds made available to carry out this 
                part pursuant to subsection (b), the Administrator 
                shall reserve 0.5 percent of the funds to provide 
                financial assistance to respond to public health 
                emergencies under section 1442(a)(2)(B).
                    ``(B) Allotment of unused funds.--On the last day 
                of each fiscal year, the Administrator shall allot any 
                funds that were reserved pursuant to subparagraph (A) 
                but were not expended in the fiscal year to the States 
                on the basis of the same ratio as is applicable to sums 
                allotted under subsection (b).
            ``(3) Rural system technical assistance program, and 
        drinking water health effects research.--For each fiscal year, 
        prior to allotment of funds made available to carry out this 
        part pursuant to subsection (b), the Administrator shall 
        reserve--
                    ``(A) $15,000,000 to carry out the rural small 
                drinking water systems technical assistance programs of 
                the Environmental Protection Agency pursuant to section 
                1442(g); and
                    ``(B) $10,000,000 for drinking water health effects 
                research carried out under section 1442(a).
    ``(d) Allotment Period.--
            ``(1) Period of availability for financial assistance.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the sums allotted to a State pursuant 
                to subsection (b) for a fiscal year shall be available 
                to the State for obligation during the fiscal year for 
                which the sums are authorized and during the following 
                fiscal year.
                    ``(B) Funds made available for fiscal year 1994.--
                The sums allotted to a State pursuant to subsection (b) 
                from funds that are made available by appropriations 
                for fiscal year 1994 shall be available to the State 
                for obligation during each of fiscal years 1994 through 
                1996.
            ``(2) Reallotment of unobligated funds.--The amount of any 
        allotment that is not obligated by a State by the last day of 
        the period of availability established by paragraph (1) shall 
        be immediately reallotted by the Administrator on the basis of 
        the same ratio as is applicable to sums allotted under 
        subsection (b). None of the funds reallotted by the 
        Administrator shall be reallotted to any State that has not 
        obligated all sums allotted to the State pursuant to this 
        section during the period that the sums were available for 
        obligation.
    ``(e) Direct Grants.--The Administrator is authorized to make 
grants for compliance with this title to Indian tribes, the District of 
Columbia, the United States Virgin Islands, the Commonwealth of the 
Northern Mariana Islands, American Samoa, Guam, and the Republic of 
Palau.

``SEC. 1473. ELIGIBLE ASSISTANCE.

    ``(a) In General.--The amounts deposited into a State loan fund, 
including any amounts equal to the amounts of loan repayments and 
interest earned on the amounts deposited, may be used by the State to 
carry out projects that are consistent with this section.
    ``(b) Use of Funds.--
            ``(1) In general.--The amounts referred to in subsection 
        (a) shall be used for providing loans or other financial 
        assistance of any kind that the State considers appropriate for 
        public water systems. The financial assistance may be used by a 
        public water system only for expenditures (not including 
        compliance monitoring, operation, and maintenance expenditures) 
        of a type or category that the Administrator determines, 
        through guidance, will--
                    ``(A) facilitate compliance with national primary 
                drinking water regulations applicable to the system 
                under section 1412; or
                    ``(B) otherwise significantly further the health 
                protection objectives of this title.
            ``(2) Systems that serve fewer than 10,000 individuals.--15 
        percent of the amounts credited to any State loan fund 
        established under this part for a fiscal year shall be 
        available solely for providing assistance to public water 
        systems that regularly serve less than 10,000 individuals.
    ``(c) Specific Requirements.--
            ``(1) In general.--The Administrator shall offer to enter 
        into an agreement with a State under this subsection only if 
        the State has established, to the satisfaction of the 
        Administrator, that--
                    ``(A) the State will deposit all grants received 
                from the Administrator under this subsection, together 
                with all repayments and interest on the grants, in a 
                drinking water treatment revolving fund established by 
                the State in accordance with this subsection; and
                    ``(B) the appropriate official of the State agency 
                with primacy shall have authority to make 
                determinations for criteria and eligibility for funding 
                provided to a public water system from the revolving 
                fund.
            ``(2) Prohibition.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), no loan or other financial assistance 
                may be used by any public water system in significant 
                noncompliance of a requirement of this title, for any 
                expenditure that could be avoided or significantly 
                reduced by appropriate consolidation, restructuring, or 
                obtaining a new water source.
                    ``(B) Exception.--The assistance referred to in 
                subparagraph (A) may be provided for a consolidation, 
                restructuring, or new water source referred to in such 
                subparagraph.
    ``(d) Eligible Public Water Systems.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        State loan fund may provide financial assistance only to 
        community water systems and public and nonprofit noncommunity 
        water systems.
            ``(2) Privately owned noncommunity systems.--Before 
        providing financial assistance to a privately owned 
        noncommunity system pursuant to this paragraph, the State shall 
        ensure that the assistance is secured with an appropriate 
        amount of, and type of, financial collateral.
    ``(e) Types of Assistance.--Except as otherwise limited by State 
law, the amounts deposited into a State loan fund under this section 
may be used only--
            ``(1) to make loans, on the condition that--
                    ``(A) the interest rate for each loan is less than 
                or equal to the market interest rate, including an 
                interest free loan;
                    ``(B)(i) the annual principal and interest payments 
                on each loan will commence not later than 1 year after 
                the completion of the project for which the loan was 
                made; and
                    ``(ii) each loan will be fully amortized not later 
                than 30 years after the completion of the project;
                    ``(C) the recipient of each loan will establish a 
                dedicated source of revenue for the repayment of the 
                loan; and
                    ``(D) the State loan fund will be credited with all 
                payments of principal and interest on each loan;
            ``(2) to buy or refinance the debt obligation of a 
        municipality, or other public body created by or pursuant to 
        State law, or interstate agency within the State, at an 
        interest rate that is less than or equal to the market interest 
        rate;
            ``(3) to guarantee, or purchase insurance for, a local 
        obligation if the guarantee or purchase would improve credit 
        market access or reduce the interest rate applicable to the 
        obligation;
            ``(4) as a source of revenue or security for the payment of 
        principal and interest on revenue or general obligation bonds 
        issued by the State if the proceeds of the sale of the bonds 
        will be deposited into the State loan fund;
            ``(5) as a source of revenue or security for the payment of 
        interest on a local obligation, if the payment from the State 
        loan fund does not reduce the effective interest rate of the 
        obligation by more than 2.5 percentage points; and
            ``(6) to earn interest on the amounts deposited into the 
        State loan fund.
    ``(f) Assistance for Disadvantaged Communities.--Notwithstanding 
subsection (d), each State may forgive repayment of some or all of the 
principal amount of a loan or other financial assistance made available 
from the State loan fund to any community that the State determines, 
using criteria developed by the State, is (or will become) a 
disadvantaged community. The total amount of repayments of principal 
forgiven pursuant to this subsection shall be an amount not less than 
10 percent and not more than 20 percent of the capitalization grant 
allotted to the State pursuant to section 1472.

``SEC. 1474. STATE LOAN FUND ADMINISTRATION.

    ``(a) Administration, Planning, and Technical Assistance.--Each 
State that has a State loan fund is authorized to expend from the State 
loan fund a reasonable amount--
            ``(1) not to exceed 5 percent of the capitalization grant 
        made to the State, for the costs of the administration of the 
        State loan fund; and
            ``(2) not to exceed the greater of--
                    ``(A) $3,000,000; or
                    ``(B) 10 percent of the capitalization grant made 
                to the State,
        for State primacy, technical and financial management 
        assistance to public water systems including requirements for 
        the preparation of ground water and wellhead protection plans, 
        the implementation of underground injection control programs, 
        and the operation of small systems monitoring programs and 
        operator certification programs. The amount (whether principal 
        or interest of the fund) shall not be subject to repayment to 
        the fund.
    ``(b) Intended Use Plans.--
            ``(1) In general.--Not later than 1 year after receiving an 
        initial capitalization grant under section 1472, and before 
        receiving any subsequent grant, each State that enters into a 
        capitalization agreement under this part shall, after providing 
        an opportunity for public review and comment, prepare a plan 
        that identifies the intended uses of the amounts deposited into 
        the State loan fund of the State.
            ``(2) Contents.--An intended use plan shall include--
                    ``(A) a list of the projects to be assisted in the 
                first fiscal year that begins after the date of the 
                plan, including a description of the project, the terms 
                of financial assistance, and the size of the community 
                served;
                    ``(B) a description of all projects for which a 
                public water system sought financial assistance for the 
                fiscal year and the annual user charges of the system;
                    ``(C) the criteria and methods established for the 
                distribution of funds;
                    ``(D) a description of projects expected to be 
                assisted in the 2 fiscal years following the fiscal 
                year for which a list was prepared under subparagraph 
                (A); and
                    ``(E) a description of the financial status of the 
                State loan fund and the short-term and long-term goals 
                of the State loan fund.
            ``(3) Priority for project funding.--An intended use plan 
        shall provide, to the extent practicable, that priority for the 
        use of funds be given to public water systems that are in 
        violation of a national primary drinking water regulation.

``SEC. 1475. STATE LOAN FUND MANAGEMENT.

    ``(a) In General.--Not later than 1 year after the date of 
enactment of this part, and annually thereafter, the Administrator 
shall conduct such reviews and audits as the Administrator considers 
appropriate, or require each State to have the reviews and audits 
independently conducted, in accordance with the single audit 
requirements of chapter 75 of title 31, United States Code.
    ``(b) State Reports.--Not later than 1 year after the date of 
enactment of this part, and annually thereafter, each State that 
administers a State loan fund shall publish and submit to the 
Administrator a report on the activities of the State under this part, 
including the findings of the most recent audit of the State loan fund.
    ``(c) Drinking Water Needs Survey and Assessment.--Not later than 2 
years after the date of enactment of this part, and every 4 years 
thereafter, the Administrator shall submit to Congress a survey and 
assessment of the needs for facilities in each State eligible for 
assistance under this part. The survey and assessment conducted 
pursuant to this subsection shall--
            ``(1) identify the needs for projects or facilities 
        eligible for assistance under this part on the date of the 
        assessment (other than refinancing for a project pursuant to 
        section 1473(d)(2));
            ``(2) identify the needs for eligible facilities over the 
        20-year period following the date of the assessment;
            ``(3) identify the population served by each public water 
        system that has a project eligible for assistance; and
            ``(4) include such other information as the Administrator 
        determines to be appropriate.
    ``(d) Evaluation.--The Administrator shall conduct an evaluation of 
the effectiveness of the State loan funds through fiscal year 1996. The 
evaluation shall be submitted to Congress at the same time as the 
President submits to Congress, pursuant to section 1108 of title 31, 
United States Code, an appropriations request for fiscal year 1998 
relating to the budget of the Environmental Protection Agency.

``SEC. 1476. ENFORCEMENT.

    ``The failure or inability of any public water system to receive 
funds under this part or any other loan or grant program, or any delay 
in obtaining the funds, shall not alter the obligation of the system to 
comply in a timely manner with all applicable drinking water standards 
and requirements of this Act.

``SEC. 1477. REGULATIONS AND GUIDANCE.

    ``The Administrator shall publish such guidance and issue such 
regulations as are necessary to carry out this part, including guidance 
and regulations to ensure that--
            ``(1) each State commits and expends funds from State loan 
        funds in accordance with the requirements of this part and 
        applicable Federal and State laws; and
            ``(2) the States and eligible public water systems that 
        receive funds under this part use accounting, auditing, and 
        fiscal procedures that conform to generally accepted accounting 
        standards.

``SEC. 1478. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to the Environmental 
Protection Agency to carry out this part $600,000,000 for fiscal year 
1994 and $1,000,000,000 for each of fiscal years 1995 through 2000.''.

SEC. 17. MINORITY COMMUNITY GRANTS FOR COMMUNITIES WITH ECONOMIC 
              HARDSHIP.

    (a) Definitions.--As used in this section:
            (1) Minority.--The term ``minority'' means an African-
        American, Hispanic American, Asian American, or Native 
        American.
            (2) Minority community with economic hardship.--The term 
        ``minority community with economic hardship'' means an 
        unincorporated community--
                    (A) that, based on the latest census data, has a 
                minority population in excess of 50 percent of the 
                total population;
                    (B) that is unable to be recognized as an 
                appropriate political subdivision of the State that 
                could more effectively access funding for water and 
                wastewater projects; and
                    (C) for which the State legislature has made funds 
                available by appropriations to assist in the payment of 
                an eligible wastewater project (as described in 
                subsection (c)).
    (b) In General.--The Administrator may make a grant or provide 
other financial assistance to 1 or more minority communities with 
economic hardship for eligible wastewater treatment projects, including 
providing assistance for the construction of facilities and related 
expenses to minority communities with economic hardship to--
            (1) improve the housing stock infrastructure in the 
        communities; and
            (2) abate health hazards caused by ground water 
        contamination from septage in arid areas with high ground water 
        levels.
    (c) Eligible Wastewater Treatment Projects.--The eligible 
wastewater treatment projects that may receive assistance under this 
section shall include innovative technologies, including vacuum systems 
and constructed wetlands.
    (d) Funding.--In carrying out this section, the Administrator shall 
use an amount equal to $20,000,000 of the funds made available to the 
Environmental Protection Agency for use beginning on May 31, 1994, 
under the matter under the heading ``water infrastructure/state 
revolving funds'' under the heading ``Environmental Protection Agency'' 
in title III of the Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1994 
(Public Law 103-124; 107 Stat. 1294).

SEC. 18. ASSISTANCE TO COLONIAS.

    (a) Definitions.--As used in this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Border state.--The term ``border State'' means each of 
        the following States:
                    (A) Arizona.
                    (B) California.
                    (C) New Mexico.
                    (D) Texas.
            (3) Construction.--The term ``construction'' has the 
        meaning provided the term under section 212(1) of the Federal 
        Water Pollution Control Act (33 U.S.C. 1292(1)).
            (4) Eligible community.--The term ``eligible community'' 
        means a low-income community with economic hardship that--
                    (A) is commonly referred to as a colonia;
                    (B) is located along the United States-Mexico 
                border (generally in an unincorporated area); and
                    (C) lacks basic sanitation facilities such as safe 
                drinking water, household plumbing, and a proper sewage 
                disposal system.
            (5) Treatment works.--The term ``treatment works'' has the 
        meaning provided the term under section 212(2) of the Federal 
        Water Pollution Control Act (33 U.S.C. 1292(2)).
    (b) Purposes.--The purposes of this section are to protect the 
economy, public health, environment, and water quality of the United 
States-Mexico border area that is endangered and is being polluted by 
raw or partially treated sewage, effluent, and other pollutants.
    (c) Transfers and Grants To Alleviate Health Risk.--
            (1) In general.--
                    (A) Assistance.--The Administrator is authorized to 
                transfer funds to another Federal agency or award 
                grants to any other appropriate entity or border State, 
                designated by the President, to provide assistance to 
                eligible communities for--
                            (i) the conservation, development, use, and 
                        control of water (including the extension or 
                        improvement of a water supply system); and
                            (ii) the construction or improvement of 
                        sewers, treatment works for wastewater 
                        treatment, and essential community facilities 
                        (including necessary related equipment).
                    (B) Use of funds.--Each transfer of funds, and each 
                grant awarded, pursuant to subparagraph (A) shall be 
                used to provide assistance to 1 (or more) eligible 
                community with respect to which the residents are 
                subject to a significant health risk (as determined by 
                the Administrator) attributable to the lack of access 
                to, or service by, an adequate and affordable--
                            (i) water supply system; or
                            (ii) treatment works for wastewater 
                        treatment.
            (2) Operation and maintenance.--To carry out the purposes 
        referred to in subsection (b), the Administrator and the head 
        of each other Federal agency, entity, or border State, 
        designated by the President pursuant to paragraph (1)(A) are 
        each authorized to operate and maintain a treatment works or 
        other project that is constructed with funds made available 
        pursuant to paragraph (1).
            (3) Approval of plans.--
                    (A) Plans and specifications.--Each treatment works 
                or other project that is funded by a transfer or a 
                grant made pursuant to paragraph (1)(A) shall be 
                constructed in accordance with plans and specifications 
                developed by the Administrator or the head of another 
                Federal agency or the appropriate official of an entity 
                or border State designated by the President under 
                subparagraph (A), in consultation with the appropriate 
                official of the affected border State.
                    (B) Approval by the administrator.--As a condition 
                of carrying out the construction of a treatment works 
                or other project referred to in subparagraph (A), the 
                head of the Federal agency or appropriate official of 
                an entity or border State shall submit the plans and 
                specifications referred to in paragraph (1) to the 
                Administrator for approval.
                    (C) Standards for construction.--The standards for 
                construction applicable to a treatment works or other 
                project under title II of the Federal Water Pollution 
                Control Act (33 U.S.C. 1281 et seq.) shall apply to the 
                construction of a treatment works or other project 
                under this section in the same manner as the standards 
                apply under such title.
    (d) Funding.--
            (1) Available funds.--The Administrator shall use such 
        amount of the funds made available to the Environmental 
        Protection Agency for use beginning on May 31, 1994, under the 
        matter under the heading ``water infrastructure/state revolving 
        funds'' under the heading ``Environmental Protection Agency'' 
        in title III of the Departments of Veterans Affairs and Housing 
        and Urban Development, and Independent Agencies Appropriations 
        Act, 1994 (Public Law 103-124; 107 Stat. 1294) as is necessary 
        to carry out this section.
            (2) Authorization of appropriations.--There are authorized 
        to be appropriated to the Environmental Protection Agency to 
        carry out this section such sums as may be necessary for fiscal 
        year 1995, and for each fiscal year thereafter.

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