[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2550 Reported in Senate (RS)]






                                                       Calendar No. 772
108th CONGRESS
  2d Session
                                S. 2550

                          [Report No. 108-386]

To amend the Federal Water Pollution Control Act and the Safe Drinking 
Water Act to improve water and wastewater infrastructure in the United 
                                States.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 21, 2004

 Mr. Crapo (for himself, Mr. Inhofe, and Ms. Murkowski) introduced the 
 following bill; which was read twice and referred to the Committee on 
                      Environment and Public Works

                            October 7, 2004

               Reported by Mr. Inhofe, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Water Pollution Control Act and the Safe Drinking 
Water Act to improve water and wastewater infrastructure in the United 
                                States.

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

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``Water 
Infrastructure Financing Act''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents of this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
            <DELETED>TITLE I--WATER POLLUTION INFRASTRUCTURE

<DELETED>Sec. 101. Technical assistance for rural and small treatment 
                            works.
<DELETED>Sec. 102. Projects eligible for assistance.
<DELETED>Sec. 103. Affordability.
<DELETED>Sec. 104. Water pollution control revolving loan funds.
<DELETED>Sec. 105. Transferability of funds.
<DELETED>Sec. 106. Grants program.
<DELETED>Sec. 107. Costs of administering water pollution control 
                            revolving loan funds.
<DELETED>Sec. 108. Allocation formula.
<DELETED>Sec. 109. Authorization of appropriations.
<DELETED>Sec. 110. Reports.
         <DELETED>TITLE II--SAFE DRINKING WATER INFRASTRUCTURE

<DELETED>Sec. 201. Technical assistance for small centers.
<DELETED>Sec. 202. Preconstruction work.
<DELETED>Sec. 203. Affordability.
<DELETED>Sec. 204. Safe drinking water revolving loan funds.
<DELETED>Sec. 205. Grants program.
<DELETED>Sec. 206. Other authorized activities.
<DELETED>Sec. 207. Small system revolving loan fund.
<DELETED>Sec. 208. Authorization of appropriations.
                   <DELETED>TITLE III--MISCELLANEOUS

<DELETED>Sec. 301. Definition of Administrator.
<DELETED>Sec. 302. Demonstration grant program for water quality 
                            enhancement and management.
<DELETED>Sec. 303. Cost of service study.
<DELETED>Sec. 304. State revolving fund review process.

       <DELETED>TITLE I--WATER POLLUTION INFRASTRUCTURE</DELETED>

<DELETED>SEC. 101. TECHNICAL ASSISTANCE FOR RURAL AND SMALL TREATMENT 
              WORKS.</DELETED>

<DELETED>Title II of the Federal Water Pollution Control Act is amended 
by adding after section 221 (33 U.S.C. 1301) the following:</DELETED>

<DELETED>``SEC. 222. TECHNICAL ASSISTANCE FOR RURAL AND SMALL TREATMENT 
              WORKS.</DELETED>

<DELETED>    ``(a) Definition of Qualified Nonprofit Technical 
Assistance Provider.--In this section, the term `qualified nonprofit 
technical assistance provider' means a qualified nonprofit technical 
assistance provider of water and wastewater services to small rural 
communities that provide technical assistance to treatment works that--
</DELETED>
        <DELETED>    ``(1) serve not more than 10,000 users; 
        and</DELETED>
        <DELETED>    ``(2) are located in a rural area.</DELETED>
<DELETED>    ``(b) Grant Program.--</DELETED>
        <DELETED>    ``(1) In general.--The Administrator may make 
        grants to qualified nonprofit technical assistance providers--
        </DELETED>
                <DELETED>    ``(A) to assist small treatment works in 
                planning, developing, and obtaining financing for 
                eligible projects described in section 
                603(c);</DELETED>
                <DELETED>    ``(B) to capitalize revolving loan funds 
                to provide loans, in consultation with the State in 
                which the assistance is provided, to rural and small 
                municipalities for predevelopment costs (including 
                costs for planning, design, associated preconstruction, 
                and necessary activities for siting the facility and 
                related elements) associated with wastewater 
                infrastructure projects or short-term costs incurred 
                for equipment replacement that is not part of regular 
                operation and maintenance activities for existing 
                wastewater systems, so long as--</DELETED>
                        <DELETED>    ``(i) any loan from the fund is 
                        made at or below market interest rate, for a 
                        term not to exceed 10 years;</DELETED>
                        <DELETED>    ``(ii) the amount of a single loan 
                        does not exceed $100,000;</DELETED>
                        <DELETED>    ``(iii) all loan repayments are 
                        credited to the fund;</DELETED>
                <DELETED>    ``(C) to provide technical assistance and 
                training for rural and small publicly owned treatment 
                works and decentralized wastewater treatment systems to 
                enable those treatment works and systems to protect 
                water quality and achieve and maintain compliance with 
                this Act; and</DELETED>
                <DELETED>    ``(D) to disseminate information to rural 
                and small municipalities with respect to planning, 
                design, construction, and operation of publicly owned 
                treatment works and decentralized wastewater treatment 
                systems.</DELETED>
        <DELETED>    ``(2) Distribution of grant.--In carrying out this 
        subsection, the Administrator shall ensure, to the maximum 
        extent practicable, that technical assistance provided using 
        funds from a grant under paragraph (1) is made available in 
        each State.</DELETED>
        <DELETED>    ``(3) Consultation.--As a condition of receiving a 
        grant under this subsection, a qualified nonprofit technical 
        assistance provider shall consult with each State in which 
        grant funds are to be expended or otherwise made available 
        before the grant funds are expended or made available in the 
        State.</DELETED>
        <DELETED>    ``(4) Annual report.--For each fiscal year, a 
        qualified nonprofit technical assistance provider that receives 
        a grant under this paragraph shall submit to the Administrator 
        a report that--</DELETED>
                <DELETED>    ``(A) describes the activities of the 
                qualified nonprofit technical assistance provider using 
                grant funds received under this section for the fiscal 
                year; and</DELETED>
                <DELETED>    ``(B) specifies the number of communities 
                served, the size of those communities, and the type of 
                financing provided.</DELETED>
<DELETED>    ``(c) Authorization of Appropriations.--There is 
authorized to be appropriated to carry out this subsection $25,000,000 
for each of fiscal years 2005 through 2009.''.</DELETED>

<DELETED>SEC. 102. PROJECTS ELIGIBLE FOR ASSISTANCE.</DELETED>

<DELETED>    Section 603 of the Federal Water Pollution Control Act (33 
U.S.C. 1383) is amended by striking subsection (c) and inserting the 
following:</DELETED>
<DELETED>    ``(c) Projects Eligible for Assistance.--Funds in each 
State water pollution control revolving fund shall be used only for--
</DELETED>
        <DELETED>    ``(1) providing financial assistance to a 
        municipality, intermunicipal, interstate, or State agency, or 
        private utility that principally treats municipal wastewater or 
        domestic sewage, for construction (including costs for 
        planning, design, associated preconstruction, and necessary 
        activities for siting the facility and related elements) of 
        treatment works (as defined in section 212);</DELETED>
        <DELETED>    ``(2) implementation of a management program 
        established under section 319;</DELETED>
        <DELETED>    ``(3) development and implementation of a 
        conservation and management plan under section 320;</DELETED>
        <DELETED>    ``(4) water conservation projects or activities 
        the primary purpose of which is the protection, preservation, 
        or enhancement of water quality, including through--</DELETED>
                <DELETED>    ``(A) piping or lining of an irrigation 
                canal;</DELETED>
                <DELETED>    ``(B) recovery or recycling of wastewater 
                or runoff from irrigation;</DELETED>
                <DELETED>    ``(C) irrigation scheduling;</DELETED>
                <DELETED>    ``(D) measurement or metering of water 
                use; or</DELETED>
                <DELETED>    ``(E) improvement of on-field irrigation 
                efficiency;</DELETED>
        <DELETED>    ``(5) reuse, reclamation, or recycling projects 
        the primary purpose of which is the protection, preservation, 
        or enhancement of water quality;</DELETED>
        <DELETED>    ``(6) projects to increase the security of 
        wastewater treatment works (excluding any expenditure for 
        operations or maintenance); or</DELETED>
        <DELETED>    ``(7) measures to control municipal stormwater, 
        the primary purpose of which is the preservation, protection, 
        or enhancement of water quality.''.</DELETED>

<DELETED>SEC. 103. AFFORDABILITY.</DELETED>

<DELETED>    Section 603 of the Federal Water Pollution Control Act (33 
U.S.C. 1383) is amended--</DELETED>
        <DELETED>    (1) by redesignating subsections (e) through (h) 
        as subsections (f) through (i); and</DELETED>
        <DELETED>    (2) by inserting after subsection (d) the 
        following:</DELETED>
<DELETED>    ``(e) Types of Assistance for Disadvantaged Communities.--
</DELETED>
        <DELETED>    ``(1) Definition of disadvantaged community.--In 
        this subsection, the term `disadvantaged community' means the 
        service area, or portion of a service area, of a treatment 
        works that meets affordability criteria established after 
        public review and comment by the State in which the treatment 
        works is located.</DELETED>
        <DELETED>    ``(2) Loan subsidy.--Notwithstanding any other 
        provision of this section, in a case in which the State makes a 
        loan from the water pollution control revolving loan fund in 
        accordance with subsection (c) to a disadvantaged community or 
        a community that the State expects to become a disadvantaged 
        community as the result of a proposed project, the State may 
        provide additional subsidization, including the forgiveness of 
        the principal of the loan.</DELETED>
        <DELETED>    ``(3) Total amount of subsidies.--For each fiscal 
        year, the total amount of loan subsidies made by the State 
        pursuant to this subsection may not exceed 30 percent of the 
        amount of the capitalization grant received by the State for 
        the fiscal year.</DELETED>
        <DELETED>    ``(4) Extended term.--A State may provide an 
        extended term for a loan if the extended term--</DELETED>
                <DELETED>    ``(A) terminates not later than the date 
                that is 30 years after the date of completion of the 
                project; and</DELETED>
                <DELETED>    ``(B) does not exceed the expected design 
                life of the project.</DELETED>
        <DELETED>    ``(5) Information.--The Administrator may publish 
        information to assist States in establishing affordability 
        criteria described in paragraph (1).''.</DELETED>

<DELETED>SEC. 104. WATER POLLUTION CONTROL REVOLVING LOAN 
              FUNDS.</DELETED>

<DELETED>    Section 603 of the Federal Water Pollution Control Act (33 
U.S.C. 1383) is amended by striking subsection (h) (as redesignated by 
section 103) and inserting the following:</DELETED>
<DELETED>    ``(h) Priority System Requirement.--</DELETED>
        <DELETED>    ``(1) Definitions.--In this subsection:</DELETED>
                <DELETED>    ``(A) Restructuring.--The term 
                `restructuring' means--</DELETED>
                        <DELETED>    ``(i) the consolidation of 
                        management functions or ownership with another 
                        facility; or</DELETED>
                        <DELETED>    ``(ii) the formation of 
                        cooperative partnerships.</DELETED>
                <DELETED>    ``(B) Traditional wastewater approach.--
                The term `traditional wastewater approach' means a 
                managed system used to collect and treat wastewater 
                from an entire service area consisting of--</DELETED>
                        <DELETED>    ``(i) collection sewers;</DELETED>
                        <DELETED>    ``(ii) a centralized treatment 
                        plant using biological or physical/chemical 
                        treatment processes; and</DELETED>
                        <DELETED>    ``(iii) a direct point source 
                        discharge to surface water.</DELETED>
        <DELETED>    ``(2) Priority system.--A State shall provide 
        financial assistance from the water pollution control revolving 
        fund of the State only for projects described in subsection (c) 
        by amending the priority system established by the State under 
        subsection (g) under which the State--</DELETED>
                <DELETED>    ``(A) gives more weight to an application 
                for assistance by a treatment works if the application 
                includes--</DELETED>
                        <DELETED>    ``(i) an inventory of assets, 
                        including a description of the condition of 
                        those assets;</DELETED>
                        <DELETED>    ``(ii) a schedule for replacement 
                        of assets;</DELETED>
                        <DELETED>    ``(iii) a financing plan 
                        indicating sources of revenue from rate payers, 
                        grants, bonds, other loans, and other 
                        sources;</DELETED>
                        <DELETED>    ``(iv) a review of options for 
                        restructuring the treatment works;</DELETED>
                        <DELETED>    ``(v) a review of options for 
                        approaches other than a traditional wastewater 
                        approach that may include actions or projects 
                        that treat or minimize sewage or urban 
                        stormwater discharges using--</DELETED>
                                <DELETED>    ``(I) decentralized or 
                                distributed stormwater 
                                controls;</DELETED>
                                <DELETED>    ``(II) decentralized 
                                wastewater treatment;</DELETED>
                                <DELETED>    ``(III) low impact 
                                development technologies;</DELETED>
                                <DELETED>    ``(IV) stream 
                                buffers;</DELETED>
                                <DELETED>    ``(V) wetland restoration; 
                                or</DELETED>
                                <DELETED>    ``(VI) actions to minimize 
                                the amount of and direct connections to 
                                impervious surfaces; or</DELETED>
                        <DELETED>    ``(vi) such other information as 
                        the State determines to be 
                        appropriate;</DELETED>
                <DELETED>    ``(B) takes into consideration appropriate 
                chemical, physical, and biological data that the State 
                considers reasonably available and of sufficient 
                quality;</DELETED>
                <DELETED>    ``(C) provides for public notice and 
                opportunity to comment on establishment of the system 
                and the summary under subparagraph (D);</DELETED>
                <DELETED>    ``(D) publishes not less than biennially 
                in summary form a description of projects in the State 
                that are eligible for assistance under this title that 
                indicates--</DELETED>
                        <DELETED>    ``(i) the priority assigned to 
                        each project under the priority system of the 
                        State; and</DELETED>
                        <DELETED>    ``(ii) the funding schedule for 
                        each project, to the extent that such 
                        information is available; and</DELETED>
                <DELETED>    ``(E) ensures that projects undertaken 
                with assistance under this title are designed to 
                achieve, in the estimation of the State, the optimum 
                water quality management, consistent with the public 
                health and water quality goals and requirements of this 
                title.''.</DELETED>

<DELETED>SEC. 105. TRANSFERABILITY OF FUNDS.</DELETED>

<DELETED>    Section 603 of the Federal Water Pollution Control Act (33 
U.S.C. 1383) (as amended by section 103) is amended by adding at the 
end the following:</DELETED>
<DELETED>    ``(j) Transfer of Funds.--</DELETED>
        <DELETED>    ``(1) In general.--The Governor of a State may--
        </DELETED>
                <DELETED>    ``(A)(i) reserve not more than 33 percent 
                of a capitalization grant made under this title; 
                and</DELETED>
                <DELETED>    ``(ii) add the funds reserved to any funds 
                provided to the State under section 1452 of the Safe 
                Drinking Water Act (42 U.S.C. 300j-12); and</DELETED>
                <DELETED>    ``(B)(i) reserve in any year an amount 
                that does not exceed the amount that may be reserved 
                under subparagraph (A) for that year from 
                capitalization grants made under section 1452 of that 
                Act (42 U.S.C. 300j-12); and</DELETED>
                <DELETED>    ``(ii) add the reserved funds to any funds 
                provided to the State under this title.</DELETED>
        <DELETED>    ``(2) State match.--Funds reserved under this 
        subsection shall not be considered to be a State contribution 
        for a capitalization grant required under this title or section 
        1452(b) of the Safe Drinking Water Act (42 U.S.C. 300j-
        12(b)).''.</DELETED>

<DELETED>SEC. 106. GRANTS PROGRAM.</DELETED>

<DELETED>    Section 603 of the Federal Water Pollution Control Act (33 
U.S.C. 1383) (as amended by section 105) is amended by adding at the 
end the following:</DELETED>
<DELETED>    ``(k) Setaside.--</DELETED>
        <DELETED>    ``(1) $3,000,000,000 or less made available.--
        </DELETED>
                <DELETED>    ``(A) In general.--For a fiscal year in 
                which appropriations for State revolving loan funds do 
                not exceed $3,000,000,000, a State shall set aside 10 
                percent of its capitalization grant under section 
                601(a) to provide grants to eligible users described in 
                subsection (c) in the amount of not more than 55 
                percent of the total cost of a project for which a 
                grant is made.</DELETED>
                <DELETED>    ``(B) Waiver.--A State may waive the 
                requirement of subparagraph (A) if the average time for 
                processing loan applications during the preceding 12 
                months did not exceed 90 days.</DELETED>
        <DELETED>    ``(2) More than $3,000,000,000 made available.--
        For a fiscal year in which appropriations for State revolving 
        loan funds exceed $3,000,000,000, a State shall set aside not 
        more than 10 nor less than 5 percent of its State revolving 
        loan fund.''.</DELETED>

<DELETED>SEC. 107. COSTS OF ADMINISTERING WATER POLLUTION CONTROL 
              REVOLVING LOAN FUNDS.</DELETED>

<DELETED>    Section 603(d)(7) of the Federal Water Pollution Control 
Act (33 U.S.C. 1383(d)(7)) is amended by striking ``4 percent'' and 
inserting ``6 percent''.</DELETED>

<DELETED>SEC. 108. ALLOCATION FORMULA.</DELETED>

<DELETED>    Section 604 of the Federal Water Pollution Control Act (33 
U.S.C. 1384) is amended--</DELETED>
        <DELETED>    (1) by redesignating subsections (b) and (c) as 
        subsections (d) and (e), respectively; and</DELETED>
        <DELETED>    (2) by striking subsection (a) and inserting the 
        following:</DELETED>
<DELETED>    ``(a) Definitions.--In this subsection:</DELETED>
        <DELETED>    ``(1) Base formula.--The term `base formula' means 
        a formula for the allotment of funds made available to carry 
        out this section for a fiscal year to States in accordance with 
        section 205(c)(3).</DELETED>
        <DELETED>    ``(2) Needs survey.--The term `needs survey' means 
        a needs survey conducted under section 516(2).</DELETED>
        <DELETED>    ``(3) Needs survey percentage.-- The term `needs 
        survey percentage', with respect to a State, means the 
        percentage applicable to the State under a formula for the 
        allotment of funds made available to carry out this section for 
        a fiscal year to States in amounts determined by the 
        Administrator based on the ratio that--</DELETED>
                <DELETED>    ``(A) the needs of a State described in 
                categories I through VII of the most recent needs 
                survey; bears to</DELETED>
                <DELETED>    ``(B) the needs of all States described in 
                categories I through VII of the most recent needs 
                survey.</DELETED>
        <DELETED>    ``(4) Next needs survey.--The term `next needs 
        survey' means the first needs survey that is completed after 
        the 2000 needs survey.</DELETED>
        <DELETED>    ``(5) State.--The term `State' means a State, the 
        District of Columbia, and the Commonwealth of Puerto 
        Rico.</DELETED>
<DELETED>    ``(b) Allocation of Funds.--</DELETED>
        <DELETED>    ``(1) In general.--Funds made available to carry 
        out this section for a fiscal year shall be allocated by the 
        Administrator in accordance with this subsection.</DELETED>
        <DELETED>    ``(2) Indian tribes.--Of the total amount of funds 
        available, 1.5 percent shall be allocated to Indian tribes 
        (within the meaning of section 518(c)).</DELETED>
        <DELETED>    ``(3) Certain territories and freely associated 
        states.--Of the total amount of funds made available, 0.25 
        percent shall be allocated to Guam, the Virgin Islands, Samoa, 
        the Commonwealth of the Northern Mariana Islands, the Federated 
        States of Micronesia, the Republic of the Marshall Islands, and 
        the Republic of Palau to be allocated among those territories 
        and freely associated states, as determined by the 
        Administrator.</DELETED>
        <DELETED>    ``(4) States.--</DELETED>
                <DELETED>    ``(A) Target allocation.--Each State shall 
                have a target allocation, which--</DELETED>
                        <DELETED>    ``(i) in the case of a State for 
                        which the needs survey percentage is less than 
                        1.0 percent, shall be 1.0 percent; 
                        and</DELETED>
                        <DELETED>    ``(ii) in the case of any other 
                        State, shall be the needs survey 
                        percentage.</DELETED>
                <DELETED>    ``(B) Limitation on growth.--</DELETED>
                        <DELETED>    ``(i) Applicability.--This 
                        subparagraph applies with respect to any fiscal 
                        year for which the amount of funds made 
                        available to carry out this section is 
                        $3,150,000,000 or less.</DELETED>
                        <DELETED>    ``(ii) States for which the needs 
                        survey percentage is less than 1.0 percent.--In 
                        the case of a State for which the needs survey 
                        percentage is 1.0 percent or less, the growth 
                        in allocation in dollar terms relative to the 
                        base formula shall be limited to--</DELETED>
                                <DELETED>    ``(I) 12 percent for 
                                fiscal year 2005;</DELETED>
                                <DELETED>    ``(II) 16 percent for 
                                fiscal year 2006;</DELETED>
                                <DELETED>    ``(III) 20 percent for 
                                fiscal year 2007;</DELETED>
                                <DELETED>    ``(IV) 24 percent for 
                                fiscal year 2008; and</DELETED>
                                <DELETED>    ``(V) 28 percent for 
                                fiscal year 2009 and each fiscal year 
                                thereafter.</DELETED>
                        <DELETED>    ``(iii) States for which the needs 
                        survey percentage is 1.0 percent or more.--In 
                        the case of a State for which the needs survey 
                        percentage is greater than 1.0 percent, the 
                        growth in allocation in dollar terms relative 
                        to the base formula shall be limited to 0.0 
                        percent.</DELETED>
                <DELETED>    ``(C) Limitation on loss.--</DELETED>
                        <DELETED>    ``(i) Growth of less than 1.0 
                        percent.--A dollar amount that is not less than 
                        the dollar amount under the base formula shall 
                        be allocated to States described in 
                        subparagraph (A)(i) but not described in 
                        subparagraph (D).</DELETED>
                        <DELETED>    ``(ii) Growth of 1.0 percent or 
                        more.--A dollar amount that is equal to the 
                        dollar amount under the base formula shall be 
                        allocated to States described in subparagraph 
                        (A)(ii) but not described in subparagraph (D) 
                        that--</DELETED>
                                <DELETED>    ``(I) in the most recent 
                                needs survey, reported higher needs in 
                                both categories V and VII than the 
                                State reported in the previous needs 
                                survey;</DELETED>
                                <DELETED>    ``(II) grew in population 
                                by more than 10 percent between the 
                                1990 decenniel census and the 2000 
                                decenniel census; or</DELETED>
                                <DELETED>    ``(III) has a population 
                                equal to 4 percent or more of the total 
                                population of the United States, as 
                                reported in the 2000 decenniel 
                                census.</DELETED>
                <DELETED>    ``(D) Unallocated balance.--The 
                unallocated balance of available funds shall be 
                allocated in equal parts to all States that, in the 
                most recent needs survey, report higher total needs 
                both in absolute dollar terms and as a percentage of 
                total United States needs.''.</DELETED>

<DELETED>SEC. 109. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    The Federal Water Pollution Control Act is amended by 
striking section 607 (33 U.S.C. 1387) and inserting the 
following:</DELETED>

<DELETED>``SEC. 607. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    ``(a) In General.--There are authorized to be appropriated 
to carry out this title--</DELETED>
        <DELETED>    ``(1) $3,200,000,000 for each of fiscal years 2005 
        and 2006;</DELETED>
        <DELETED>    ``(2) $3,600,000,000 for fiscal year 
        2007;</DELETED>
        <DELETED>    ``(3) $4,000,000,000 for fiscal year 2008; 
        and</DELETED>
        <DELETED>    ``(4) $6,000,000,000 for fiscal year 
        2009.</DELETED>
<DELETED>    ``(b) Availability.--Amounts made available under this 
section shall remain available until expended.</DELETED>
<DELETED>    ``(c) Reservation for Needs Surveys.--Of the amount made 
available under subsection (a) to carry out this title for a fiscal 
year, the Administrator may reserve not more than $1,000,000 per year 
to pay the costs of conducting needs surveys under section 
516(2).''.</DELETED>

<DELETED>SEC. 110. REPORTS.</DELETED>

<DELETED>    Section 516 of the Federal Waste Pollution Control Act (33 
U.S.C. 1375) is amended in the second sentence by striking ``odd-
numbered'' and inserting ``fourth''.</DELETED>

    <DELETED>TITLE II--SAFE DRINKING WATER INFRASTRUCTURE</DELETED>

<DELETED>SEC. 201. TECHNICAL ASSISTANCE FOR SMALL CENTERS.</DELETED>

<DELETED>Section 1420(g) of the Safe Drinking Water Act (42 U.S.C. 
300g-9(g)) is amended by striking paragraph (4) and inserting the 
following:</DELETED>
        <DELETED>    ``(4) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this subsection 
        $2,000,000 for each of fiscal years 2005 through 
        2009.''.</DELETED>

<DELETED>SEC. 202. PRECONSTRUCTION WORK.</DELETED>

<DELETED>    Section 1452(a)(2) of the Safe Drinking Water Act (42 
U.S.C. 300j-12(a)(2)) is amended in the second sentence--</DELETED>
        <DELETED>    (1) by striking ``(not'' and inserting 
        ``(including expenditures for planning, design, and associated 
        preconstruction and for recovery for siting of the facility and 
        related elements but not''; and</DELETED>
        <DELETED>    (2) by inserting before the period at the end the 
        following: ``or to replace or rehabilitate aging collection, 
        treatment, storage (including reservoirs), and distribution 
        facilities of public water systems or provide for capital 
        projects to upgrade the security of public water 
        systems''.</DELETED>

<DELETED>SEC. 203. AFFORDABILITY.</DELETED>

<DELETED>    Section 1452(d)(3) of the Safe Drinking Water Act (42 
U.S.C. 300j-12(d)(3)) is amended in the first sentence by inserting ``, 
or portion of a service area,'' after ``service area''.</DELETED>

<DELETED>SEC. 204. SAFE DRINKING WATER REVOLVING LOAN FUNDS.</DELETED>

<DELETED>    (a) In General.--Section 1452(g) of the Safe Drinking 
Water Act (42 U.S.C. 300j-12(g)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (2)--</DELETED>
                <DELETED>    (A) in the first sentence, by striking 
                ``4'' and inserting ``6''; and</DELETED>
                <DELETED>    (B) by striking ``1419'' and all that 
                follows and inserting ``1419.''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
        <DELETED>    ``(5) Transfer of funds.--</DELETED>
                <DELETED>    ``(A) In general.--The Governor of a State 
                may--</DELETED>
                        <DELETED>    ``(i)(I) reserve not more than 33 
                        percent of a capitalization grant made under 
                        this section; and</DELETED>
                        <DELETED>    ``(II) add the funds reserved to 
                        any funds provided to the State under section 
                        601 of the Federal Water Pollution Control Act 
                        (33 U.S.C. 1381); and</DELETED>
                        <DELETED>    ``(ii)(I) reserve for any year an 
                        amount that does not exceed the amount that may 
                        be reserved under clause (i)(I) for that year 
                        from capitalization grants made under section 
                        601 of that Act (33 U.S.C. 1381); and</DELETED>
                        <DELETED>    ``(II) add the reserved funds to 
                        any funds provided to the State under this 
                        section.</DELETED>
                <DELETED>    ``(B) State match.--Funds reserved under 
                this paragraph shall not be considered to be a State 
                match of a capitalization grant required under this 
                section or section 602(b) of the Federal Water 
                Pollution Control Act (33 U.S.C. 1382(b)).''.</DELETED>
<DELETED>    (b) Priority System Requirements.--Section 1452(b)(3) of 
the Safe Drinking Water Act (42 U.S.C. 300j-12(3)) is amended--
</DELETED>
        <DELETED>    (1) by redesignating subparagraph (B) as 
        subparagraph (C);</DELETED>
        <DELETED>    (2) by striking subparagraph (A) and inserting the 
        following:</DELETED>
                <DELETED>    ``(A) Definitions.--In this 
                paragraph:</DELETED>
                        <DELETED>    ``(i) Restructuring.--The term 
                        `restructuring' means--</DELETED>
                                <DELETED>    ``(I) the consolidation of 
                                management functions or ownership with 
                                another facility; or</DELETED>
                                <DELETED>    ``(II) the formation of 
                                cooperative partnerships.</DELETED>
                        <DELETED>    ``(ii) Traditional approach.--The 
                        term `traditional approach' means a managed 
                        system used to treat and distribute drinking 
                        water to an entire service area consisting of a 
                        centralized water system using biological or 
                        physical/chemical treatment 
                        processes.</DELETED>
                <DELETED>    ``(B) Priority system.--An intended use 
                plan shall provide, to the maximum extent practicable, 
                that the State shall give more weight to an application 
                for assistance by a community water system if the 
                application includes--</DELETED>
                        <DELETED>    ``(i) an inventory of assets, 
                        including a description of the condition of 
                        those assets;</DELETED>
                        <DELETED>    ``(ii) a schedule for replacement 
                        of assets;</DELETED>
                        <DELETED>    ``(iii) a financing plan 
                        indicating sources of revenue from rate payers, 
                        grants, bonds, other loans, and other 
                        sources;</DELETED>
                        <DELETED>    ``(iv) a review of options for 
                        restructuring the public water 
                        system;</DELETED>
                        <DELETED>    ``(v) a review of options for 
                        approaches other than a traditional approach; 
                        or</DELETED>
                        <DELETED>    ``(vi) such other information as 
                        the State determines to be appropriate.''; 
                        and</DELETED>
        <DELETED>    (3) in subparagraph (C) (as redesignated by 
        paragraph (1)), by striking ``periodically'' and inserting ``at 
        least biennially''.</DELETED>

<DELETED>SEC. 205. GRANTS PROGRAM.</DELETED>

<DELETED>    Section 1452 of the Safe Drinking Water Act (42 U.S.C. 
300j-12) is amended by adding at the end the following:</DELETED>
<DELETED>    ``(s) Setaside.--</DELETED>
        <DELETED>    ``(1) $2,500,000,000 or less made available.--
        </DELETED>
                <DELETED>    ``(A) In general.--For a fiscal year in 
                which appropriations for State revolving loan funds do 
                not exceed $2,500,000,000, a State shall set aside 10 
                percent of its capitalization grant under subsection 
                (a) to provide grants to eligible users described in 
                subsection (c) of not more than 55 percent of the total 
                cost of a project for which a grant is made.</DELETED>
                <DELETED>    ``(B) Waiver.--A State may waive the 
                requirement of subparagraph (A) if the average time for 
processing loan applications during the preceding 12 months did not 
exceed 90 days.</DELETED>
        <DELETED>    ``(2) More than $2,500,000,000 made available.--
        For a fiscal year in which appropriations for State revolving 
        loan funds exceed $2,500,000,000, a State shall set aside not 
        more than 5 nor less than 2.5 percent of its State revolving 
        loan fund.''.</DELETED>

<DELETED>SEC. 206. OTHER AUTHORIZED ACTIVITIES.</DELETED>

<DELETED>    Section 1452(k)(2)(D) of the Safe Drinking Water Act (42 
U.S.C. 300j-12(k)(2)(D)) is amended by inserting before the period at 
the end the following: ``(including implementation of source water 
protection plans)''.</DELETED>

<DELETED>SEC. 207. SMALL SYSTEM REVOLVING LOAN FUND.</DELETED>

<DELETED>    Section 1442(e) of the Safe Drinking Water Act (42 U.S.C. 
300j-1(e)) is amended--</DELETED>
        <DELETED>    (1) by striking ``The Administrator may provide'' 
        and inserting the following:</DELETED>
        <DELETED>    ``(1) In general.--The Administrator may 
        provide''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
        <DELETED>    ``(2) Small system revolving loan fund.--
        </DELETED>
                <DELETED>    ``(A) In general.--In addition to amounts 
                provided under this section, each State may provide 
                grants to qualified private, nonprofit entities to 
                capitalize revolving funds to provide financing to 
                eligible entities described in subparagraph (B) for--
                </DELETED>
                        <DELETED>    ``(i) predevelopment costs 
                        (including costs for planning, design, 
                        associated preconstruction, and necessary 
                        activities for siting the facility and related 
                        elements) associated with proposed water 
                        projects or with existing water systems; 
                        and</DELETED>
                        <DELETED>    ``(ii) short-term costs incurred 
                        for replacement equipment, small-scale 
                        extension services, or other small capital 
                        projects that are not part of the regular 
                        operations and maintenance activities of 
                        existing water systems.</DELETED>
                <DELETED>    ``(B) Eligible entities.--Only small water 
                systems (as described in section 1412(b)(4)(E)(ii)) 
                shall be eligible for assistance under this 
                paragraph.</DELETED>
                <DELETED>    ``(C) Maximum amount of loans.--The amount 
                of financing made to an eligible entity under this 
                paragraph shall not exceed--</DELETED>
                        <DELETED>    ``(i) $100,000 for costs described 
                        in subparagraph (A)(i); and</DELETED>
                        <DELETED>    ``(ii) $100,000 for costs 
                        described in subparagraph (A)(ii).</DELETED>
                <DELETED>    ``(D) Term.--The term of a loan made to an 
                eligible entity under this paragraph shall not exceed 
                10 years.</DELETED>
                <DELETED>    ``(E) Annual report.--For each fiscal 
                year, a nonprofit entity that receives a grant under 
                this paragraph shall submit to the Administrator a 
                report that--</DELETED>
                        <DELETED>    ``(i) describes the activities of 
                        nonprofit entities receiving grants 
                        reauthorized under this paragraph for the 
                        fiscal year; and</DELETED>
                        <DELETED>    ``(ii) specifies the number of 
                        communities served, the size of those 
                        communities, and the type of financing 
                        provided.</DELETED>
                <DELETED>    ``(F) Authorization of appropriations.--
                There is authorized to be appropriated to carry out 
                this subsection $25,000,000 for each of fiscal years 
                2005 through 2009.''.</DELETED>

<DELETED>SEC. 208. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    Section 1452 of the Safe Drinking Water Act (42 U.S.C. 
300j-12) is amended by striking subsection (m) and inserting the 
following:</DELETED>
<DELETED>    ``(m) Authorization of Appropriations.--</DELETED>
        <DELETED>    ``(1) In general.--There are authorized to be 
        appropriated to carry out this section--</DELETED>
                <DELETED>    ``(A) $1,500,000,000 for fiscal year 
                2005;</DELETED>
                <DELETED>    ``(B) $2,000,000,000 for each of fiscal 
                years 2006 and 2007;</DELETED>
                <DELETED>    ``(C) $3,500,000,000 for fiscal year 2008; 
                and</DELETED>
                <DELETED>    ``(D) $6,000,000,000 for fiscal year 
                2009.</DELETED>
        <DELETED>    ``(2) Availability.--Amounts made available under 
        this subsection shall remain available until 
        expended.</DELETED>
        <DELETED>    ``(3) Reservation for needs surveys.--Of the 
        amount made available under paragraph (1) to carry out this 
        section for a fiscal year, the Administrator may reserve not 
        more than $1,000,000 per year to pay the costs of conducting 
        needs surveys under subsection (h).''.</DELETED>

              <DELETED>TITLE III--MISCELLANEOUS</DELETED>

<DELETED>SEC. 301. DEFINITION OF ADMINISTRATOR.</DELETED>

<DELETED>    In this title, the term ``Administrator'' means the 
Administrator of the Environmental Protection Agency.</DELETED>

<DELETED>SEC. 302. DEMONSTRATION GRANT PROGRAM FOR WATER QUALITY 
              ENHANCEMENT AND MANAGEMENT.</DELETED>

<DELETED>    (a) Establishment.--</DELETED>
        <DELETED>    (1) In general.--As soon as practicable after the 
        date of enactment of this Act, the Administrator shall 
        establish a nationwide demonstration grant program to--
        </DELETED>
                <DELETED>    (A) promote innovations in technology and 
                alternative approaches to water quality management or 
                water supply; and</DELETED>
                <DELETED>    (B) reduce costs to municipalities 
                incurred in complying with--</DELETED>
                        <DELETED>    (i) the Federal Water Pollution 
                        Control Act (33 U.S.C. 1251 et seq.); 
                        and</DELETED>
                        <DELETED>    (ii) the Safe Drinking Water Act 
                        (42 U.S.C. 300f et seq.).</DELETED>
        <DELETED>    (2) Scope.--The demonstration grant program shall 
        consist of 10 projects each year, to be carried out in 
        municipalities selected by the Administrator under subsection 
        (b).</DELETED>
<DELETED>    (b) Selection of Municipalities.--</DELETED>
        <DELETED>    (1) Application.--A municipality that seeks to be 
        selected to participate in the demonstration grant program 
        shall submit to the Administrator a plan that--</DELETED>
                <DELETED>    (A) is developed in coordination with--
                </DELETED>
                        <DELETED>    (i) the agency of the State having 
                        jurisdiction over water quality or water supply 
                        matters; and</DELETED>
                        <DELETED>    (ii) interested 
                        stakeholders;</DELETED>
                <DELETED>    (B) describes water impacts specific to 
                urban or rural areas;</DELETED>
                <DELETED>    (C) includes a strategy under which the 
                municipality, through participation in the 
                demonstration grant program, could effectively--
                </DELETED>
                        <DELETED>    (i) address those problems; 
                        and</DELETED>
                        <DELETED>    (ii) achieve the same water 
                        quality goals as those goals that--</DELETED>
                                <DELETED>    (I) could be achieved 
                                using more traditional methods; 
                                or</DELETED>
                                <DELETED>    (II) are mandated under--
                                </DELETED>
                                        <DELETED>    (aa) the Federal 
                                        Water Pollution Control Act (33 
                                        U.S.C. 1251 et seq.); 
                                        and</DELETED>
                                        <DELETED>    (bb) the Safe 
                                        Drinking Water Act (42 U.S.C. 
                                        300f et seq.); and</DELETED>
                <DELETED>    (D) includes a schedule for achieving the 
                goals of the municipality.</DELETED>
        <DELETED>    (2) Types of projects.--In carrying out the 
        demonstration grant program, the Administrator shall provide 
        grants for projects relating to water supply or water quality 
        matters such as--</DELETED>
                <DELETED>    (A) excessive nutrient growth;</DELETED>
                <DELETED>    (B) urban or rural population 
                pressure;</DELETED>
                <DELETED>    (C) lack of an alternative water 
                supply;</DELETED>
                <DELETED>    (D) difficulties in water conservation and 
                efficiency;</DELETED>
                <DELETED>    (E) lack of support tools and technologies 
                to rehabilitate and replace water supplies;</DELETED>
                <DELETED>    (F) lack of monitoring and data analysis 
                for water distribution systems;</DELETED>
                <DELETED>    (G) nonpoint source water pollution 
                (including stormwater);</DELETED>
                <DELETED>    (H) sanitary overflows;</DELETED>
                <DELETED>    (I) combined sewer overflows;</DELETED>
                <DELETED>    (J) problems with naturally occurring 
                constituents of concern; and</DELETED>
                <DELETED>    (K) problems with erosion and excess 
                sediment.</DELETED>
        <DELETED>    (3) Responsibilities of administrator.--In 
        providing grants for projects under this subsection, the 
        Administrator shall--</DELETED>
                <DELETED>    (A) ensure, to the maximum extent 
                practicable, that--</DELETED>
                        <DELETED>    (i) the demonstration program 
                        includes a variety of projects with respect 
                        to--</DELETED>
                                <DELETED>    (I) geographic 
                                distribution;</DELETED>
                                <DELETED>    (II) innovative 
                                technologies used for the projects; 
                                and</DELETED>
                                <DELETED>    (III) nontraditional 
                                approaches (including low-impact 
                                development technologies) used for the 
                                projects; and</DELETED>
                        <DELETED>    (ii) each category of project 
                        described in paragraph (2) is adequately 
                        represented;</DELETED>
                <DELETED>    (B) give higher priority to projects 
                that--</DELETED>
                        <DELETED>    (i) address multiple problems; 
                        and</DELETED>
                        <DELETED>    (ii) are regionally 
                        applicable;</DELETED>
                <DELETED>    (C) ensure, to the maximum extent 
                practicable, that at least 1 community having a 
                population of 10,000 or fewer individuals receives a 
                grant each fiscal year; and</DELETED>
                <DELETED>    (D) ensure that, for each fiscal year, no 
                municipality receives more than 25 percent of the total 
                amount of funds made available for the fiscal year to 
                provide grants under this section.</DELETED>
        <DELETED>    (4) Cost sharing.--</DELETED>
                <DELETED>    (A) In general.--Except as provided in 
                subparagraph (B), the non-Federal share of the total 
                cost of a project funded by a grant under this section 
                shall be not less than 20 percent.</DELETED>
                <DELETED>    (B) Waiver.--The Administrator may reduce 
                or eliminate the non-Federal share of the cost of a 
                project for reasons of affordability.</DELETED>
<DELETED>    (c) Reports.--</DELETED>
        <DELETED>    (1) Reports from grant recipients.--A recipient of 
        a grant under this section shall submit to the Administrator, 
        on the date of completion of a project of the recipient and on 
        each of the dates that is 1, 2, and 3 years after that date, a 
        report that describes the effectiveness of the 
        project.</DELETED>
        <DELETED>    (2) Reports to congress.--Not later than 2 years 
        after the date of enactment of this Act, and every 2 years 
        thereafter, the Administrator shall submit to the Committee on 
        Environment and Public Works of the Senate and the Committee on 
        Transportation and Infrastructure and the Committee on Energy 
        and Commerce of the House of Representatives a report that 
        describes the status and results of the demonstration 
        program.</DELETED>
<DELETED>    (d) Incorporation of Results and Information.--To the 
maximum extent practicable, the Administrator shall incorporate the 
results of, and information obtained from, successful projects under 
this section into programs administered by the Administrator.</DELETED>
<DELETED>    (e) Research and Development.--</DELETED>
        <DELETED>    (1) In general.--As soon as practicable after the 
        date of enactment of this Act, the Administrator shall, through 
        a competitive process, award grants and enter into contracts 
        and cooperative agreements for research and development on the 
        use of innovative and alternative technologies to improve water 
        quality or drinking water supply.</DELETED>
        <DELETED>    (2) Types of projects.--In carrying out this 
        subsection, the Administrator may select projects relating to 
        such matters as innovative or alternative technologies, 
        approaches, practices, or methods--</DELETED>
                <DELETED>    (A) to increase the effectiveness and 
                efficiency of public water supply systems, including--
                </DELETED>
                        <DELETED>    (i) source water 
                        protection;</DELETED>
                        <DELETED>    (ii) water use 
                        reduction;</DELETED>
                        <DELETED>    (iii) water reuse;</DELETED>
                        <DELETED>    (iv) water treatment;</DELETED>
                        <DELETED>    (v) water distribution and 
                        collection systems; and</DELETED>
                        <DELETED>    (vi) water security;</DELETED>
                <DELETED>    (B) to encourage the use of innovative or 
                alternative technologies or approaches relating to 
                water supply or availability; or</DELETED>
                <DELETED>    (C) to increase the effectiveness and 
                efficiency of treatment works, including--</DELETED>
                        <DELETED>    (i) methods of collecting, 
                        treating, dispersing, reusing, reclaiming, and 
                        recycling wastewater;</DELETED>
                        <DELETED>    (ii) system design;</DELETED>
                        <DELETED>    (iii) nonstructural 
                        alternatives;</DELETED>
                        <DELETED>    (iv) decentralized 
                        approaches;</DELETED>
                        <DELETED>    (v) assessment;</DELETED>
                        <DELETED>    (vi) water efficiency; 
                        and</DELETED>
                        <DELETED>    (vii) wastewater 
                        security.</DELETED>
        <DELETED>    (3) Recipients.--Grant recipients and parties to 
        contracts or cooperative agreements under this subsection may 
        be research institutions or consortia or educational 
        institutions or consortia.</DELETED>
        <DELETED>    (4) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this subsection 
        $20,000,000 for each of fiscal years 2005 through 
        2009.</DELETED>
<DELETED>    (f) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section (other than subsection 
(e)) $20,000,000 for each of fiscal years 2005 through 2009.</DELETED>

<DELETED>SEC. 303. COST OF SERVICE STUDY.</DELETED>

<DELETED>    (a) In General.--Not later than 2 years after the date of 
enactment of this Act, the Administrator shall enter into a contract 
with the National Academy of Sciences for, and the National Academy of 
Sciences shall complete and provide to the Administrator the results 
of, a study of the means by which public water systems and treatment 
works selected by the Academy in accordance with subsection (c) meet 
the costs associated with operations, maintenance, capital replacement, 
and regulatory requirements.</DELETED>
<DELETED>    (b) Required Elements.--</DELETED>
        <DELETED>    (1) Affordability.--The study shall, at a 
        minimum--</DELETED>
                <DELETED>    (A) identify existing standards for 
                affordability;</DELETED>
                <DELETED>    (B) determine the manner in which those 
                standards are determined and defined;</DELETED>
                <DELETED>    (C) determine the manner in which 
                affordability varies with respect to communities of 
                different sizes and in different regions; and</DELETED>
                <DELETED>    (D) determine the extent to which 
                affordability affects the decision of a community to 
                increase public water system and treatment works rates 
                (including the decision relating to the percentage by 
                which those rates should be increased).</DELETED>
        <DELETED>    (2) Disadvantaged communities.--The study shall, 
        at a minimum--</DELETED>
                <DELETED>    (A) survey a cross-section of States 
                representing different sizes, demographics, and 
                geographical regions;</DELETED>
                <DELETED>    (B) describe, for each State described in 
                subparagraph (A), the definition of ``disadvantaged 
                community'' used in the State in carrying out projects 
                and activities under the Safe Drinking Water Act (42 
                U.S.C. 300f et seq.);</DELETED>
                <DELETED>    (C) review other means of identifying the 
                meaning of the term ``disadvantaged'', as that term 
                applies to communities;</DELETED>
                <DELETED>    (D) determine which factors and 
                characteristics are required for a community to be 
                considered ``disadvantaged''; and</DELETED>
                <DELETED>    (E) evaluate the degree to which factors 
                such as a reduction in the tax base over a period of 
                time, a reduction in population, the loss of an 
                industrial base, and the existence of areas of 
                concentrated poverty are taken into account in 
                determining whether a community is a disadvantaged 
                community.</DELETED>
<DELETED>    (c) Selection of Communities.--The National Academy of 
Sciences shall select communities, the public water system and 
treatment works rate structures of which are to be studied under this 
section, that include a cross section of communities representing 
various populations, income levels, demographics, and geographical 
regions.</DELETED>
<DELETED>    (d) Use of Results of Study.--On receipt of the results of 
the study, the Administrator shall--</DELETED>
        <DELETED>    (1) submit to Congress a report that describes the 
        results of the study; and</DELETED>
        <DELETED>    (2) make the results available to treatment works 
        and public water systems for use by the publicly owned 
        treatment works and public water systems, on a voluntary basis, 
        in determining whether 1 or more new approaches may be 
        implemented at facilities of the publicly owned treatment works 
        and public water systems.</DELETED>
<DELETED>    (e) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $1,000,000 for each of 
fiscal years 2005 and 2006.</DELETED>

<DELETED>SEC. 304. STATE REVOLVING FUND REVIEW PROCESS.</DELETED>

<DELETED>    As soon as practicable after the date of enactment of this 
Act, the Administrator shall--</DELETED>
        <DELETED>    (1) consult with States, utilities, and other 
        Federal agencies providing financial assistance to identify 
        ways to expedite and improve the application and review process 
        for the provision of assistance from--</DELETED>
                <DELETED>    (A) the State water pollution control 
                revolving funds established under title VI of the 
                Federal Water Pollution Control Act (33 U.S.C. 1381 et 
                seq.); and</DELETED>
                <DELETED>    (B) the State drinking water treatment 
                revolving loan funds established under section 1452 of 
                the Safe Drinking Water Act (42 U.S.C. 300j-12); 
                and</DELETED>
        <DELETED>    (2) take such administrative action as is 
        necessary to expedite and improve the process as the 
        Administrator has authority to take under existing law; 
        and</DELETED>
        <DELETED>    (3) submit to Congress a report that, based on the 
        information identified under paragraph (1), contains 
        recommendations for legislation to facilitate further 
        streamlining and improvement of the process.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Water 
Infrastructure Financing Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents. 

                TITLE I--WATER POLLUTION INFRASTRUCTURE

Sec. 101. Technical assistance for rural and small treatment works. 
Sec. 102. Projects eligible for assistance. 
Sec. 103. Water pollution control revolving loan funds. 
Sec. 104. Affordability. 
Sec. 105. Water pollution control revolving loan funds. 
Sec. 106. Transferability of funds. 
Sec. 107. Grants program. 
Sec. 108. Costs of administering water pollution control revolving loan 
                            funds. 
Sec. 109. Allocation formula. 
Sec. 110. Authorization of appropriations. 
Sec. 111. Reports. 
Sec. 112. Pilot program for alternative water source projects. 
Sec. 113. Wet weather grants.
Sec. 114. Technical correction.

              TITLE II--SAFE DRINKING WATER INFRASTRUCTURE

Sec. 201. Technical assistance for small centers. 
Sec. 202. Labor standards. 
Sec. 203. Preconstruction work. 
Sec. 204. Affordability. 
Sec. 205. Safe drinking water revolving loan funds. 
Sec. 206. Grants program. 
Sec. 207. Other authorized activities. 
Sec. 208. Small system revolving loan funds. 
Sec. 209. Authorization of appropriations. 
Sec. 210. Removal of lead from drinking water in schools and in the 
                            District of Columbia.
Sec. 211. Small public water system assistance program.
Sec. 212. Small public water system assistance program.

                        TITLE III--MISCELLANEOUS

Sec. 301. Definition of Administrator. 
Sec. 302. Demonstration grant program for water quality enhancement and 
                            management. 
Sec. 303. Cost of service study. 
Sec. 304. State revolving fund review process. 
Sec. 305. Southeast Colorado safe drinking water supply. 
Sec. 306. Assessment of perchlorate contamination.
Sec. 307. National estuary program. 
Sec. 308. Sewage control technology grant program.
Sec. 309. Special water resources study. 

                TITLE I--WATER POLLUTION INFRASTRUCTURE

SEC. 101. TECHNICAL ASSISTANCE FOR RURAL AND SMALL TREATMENT WORKS.

     Title II of the Federal Water Pollution Control Act is amended by 
adding at the end the following:

``SEC. 222. TECHNICAL ASSISTANCE FOR RURAL AND SMALL TREATMENT WORKS.

    ``(a) Definition of Qualified Nonprofit Technical Assistance 
Provider.--In this section, the term `qualified nonprofit technical 
assistance provider' means a qualified nonprofit technical assistance 
provider of water and wastewater services to small rural communities 
that provides technical assistance to treatment works that--
            ``(1) serve not more than 10,000 users; and
            ``(2) are located in a rural area.
    ``(b) Grant Program.--
            ``(1) In general.--The Administrator may make grants to 
        qualified nonprofit technical assistance providers--
                    ``(A) to assist small treatment works in planning, 
                developing, and obtaining financing for eligible 
                projects described in section 603(c);
                    ``(B) to capitalize revolving loan funds to provide 
                loans, in consultation with the State in which the 
                assistance is provided, to rural and small 
                municipalities for predevelopment costs (including 
                costs for planning, design, associated preconstruction, 
                and necessary activities for siting the facility and 
                related elements) associated with wastewater 
                infrastructure projects or short-term costs incurred 
                for equipment replacement that is not part of regular 
                operation and maintenance activities for existing 
                wastewater systems, if--
                            ``(i) any loan from the fund is made at or 
                        below market interest rate, for a term not to 
                        exceed 10 years;
                            ``(ii) the amount of a single loan does not 
                        exceed $100,000; and
                            ``(iii) all loan repayments are credited to 
                        the fund;
                    ``(C) to provide technical assistance and training 
                for rural and small publicly owned treatment works and 
                decentralized wastewater treatment systems to enable 
                those treatment works and systems to protect water 
                quality and achieve and maintain compliance with this 
                Act; and
                    ``(D) to disseminate information to rural and small 
                municipalities with respect to planning, design, 
                construction, and operation of publicly owned treatment 
                works and decentralized wastewater treatment systems.
            ``(2) Distribution of grant.--In carrying out this 
        subsection, the Administrator shall ensure, to the maximum 
        extent practicable, that technical assistance provided using 
        funds from a grant under paragraph (1) is made available in 
        each State.
            ``(3) Consultation.--As a condition of receiving a grant 
        under this subsection, a qualified nonprofit technical 
        assistance provider shall consult with each State in which 
        grant funds are to be expended or otherwise made available 
        before the grant funds are expended or made available in the 
        State.
            ``(4) Annual report.--For each fiscal year, a qualified 
        nonprofit technical assistance provider that receives a grant 
        under this subsection shall submit to the Administrator a 
        report that--
                    ``(A) describes the activities of the qualified 
                nonprofit technical assistance provider using grant 
                funds received under this subsection for the fiscal 
                year; and
                    ``(B) specifies--
                            ``(i) the number of communities served;
                            ``(ii) the sizes of those communities; and
                            ``(iii) the type of financing provided by 
                        the qualified nonprofit technical assistance 
                        provider.
    ``(c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $25,000,000 for each of fiscal 
years 2005 through 2009.''.

SEC. 102. PROJECTS ELIGIBLE FOR ASSISTANCE.

    Section 603 of the Federal Water Pollution Control Act (33 U.S.C. 
1383) is amended by striking subsection (c) and inserting the 
following:
    ``(c) Projects Eligible for Assistance.--
            ``(1) Requirements.--A project shall be eligible to receive 
        funding, in whole or in part, from a State water pollution 
        control revolving fund under this section only if the project 
        meets the requirements of section 513.
            ``(2) Use of funds.--Funds in each State water pollution 
        control revolving fund shall be used only for--
                    ``(A) providing financial assistance to a 
                municipality, intermunicipal, interstate, or State 
                agency, or private utility that principally treats 
                municipal wastewater or domestic sewage, for 
                construction (including costs for planning, design, 
                associated preconstruction, and necessary activities 
                for siting the facility and related elements) of 
                treatment works (as defined in section 212);
                    ``(B) implementation of a management program 
                established under section 319;
                    ``(C) development and implementation of a 
                conservation and management plan under section 320;
                    ``(D) water conservation projects or activities the 
                primary purpose of which is the protection, 
                preservation, or enhancement of water quality, 
                including through--
                            ``(i) piping or lining of an irrigation 
                        canal;
                            ``(ii) recovery or recycling of wastewater 
                        or runoff from irrigation;
                            ``(iii) irrigation scheduling;
                            ``(iv) measurement or metering of water 
                        use; or
                            ``(v) improvement of on-field irrigation 
                        efficiency;
                    ``(E) providing financial assistance to a 
                municipality or an intermunicipal, interstate, or State 
                agency for reuse, reclamation, or recycling projects 
                the primary purpose of which is the protection, 
                preservation, or enhancement of water quality;
                    ``(F) providing financial assistance to a 
                municipality or an intermunicipal, interstate, or State 
                agency for projects to increase the security of 
                wastewater treatment works (excluding any expenditure 
                for operations or maintenance); or
                    ``(G) providing financial assistance to a 
                municipality or an intermunicipal, interstate, or State 
                agency for measures to control municipal stormwater, 
                the primary purpose of which is the preservation, 
                protection, or enhancement of water quality.''.

SEC. 103. WATER POLLUTION CONTROL REVOLVING LOAN FUNDS.

    Section 603(d) of the Federal Water Pollution Control Act (33 
U.S.C. 1383(d)) is amended--
            (1) in paragraph (6), by striking ``and'' at the end;
            (2) in paragraph (7), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(8) to carry out a project under paragraph (2) or (3) of 
        section 601(a), which may be--
                    ``(A) operated by a municipal, intermunicipal, or 
                interstate entity, State, public or private utility, 
                corporation, partnership, association, or nonprofit 
                agency; and
                    ``(B) used to make loans that will be fully 
                amortized not later than 30 years after the date of the 
                completion of the project.''.

SEC. 104. AFFORDABILITY.

    (a) In General.--Section 603 of the Federal Water Pollution Control 
Act (33 U.S.C. 1383) is amended--
            (1) by redesignating subsections (e) through (h) as 
        subsections (f) through (i), respectively; and
            (2) by inserting after subsection (d) the following:
    ``(e) Types of Assistance for Disadvantaged Communities.--
            ``(1) Definition of disadvantaged community.--In this 
        subsection, the term `disadvantaged community' means the 
        service area, or portion of a service area, of a treatment 
        works that meets affordability criteria established after 
        public review and comment by the State in which the treatment 
        works is located.
            ``(2) Loan subsidy.--Notwithstanding any other provision of 
        this section, in a case in which the State makes a loan from 
        the water pollution control revolving loan fund in accordance 
        with subsection (c) to a disadvantaged community or a community 
        that the State expects to become a disadvantaged community as 
        the result of a proposed project, the State may provide 
        additional subsidization, including the forgiveness of the 
        principal of the loan.
            ``(3) Total amount of subsidies.--For each fiscal year, the 
        total amount of loan subsidies made by the State pursuant to 
        this subsection may not exceed 30 percent of the amount of the 
        capitalization grant received by the State for the fiscal year.
            ``(4) Extended term.--A State may provide an extended term 
        for a loan if the extended term--
                    ``(A) terminates not later than the date that is 30 
                years after the date of completion of the project; and
                    ``(B) does not exceed the expected design life of 
                the project.
            ``(5) Information.--The Administrator may publish 
        information to assist States in establishing affordability 
        criteria described in paragraph (1).''.
    (b) Conforming Amendment.--Section 221(d) of the Federal Water 
Pollution Control Act (33 U.S.C. 1301(d)) is amended in the second 
sentence by striking ``603(h)'' and inserting ``603(i)''.

SEC. 105. WATER POLLUTION CONTROL REVOLVING LOAN FUNDS.

    Section 603 of the Federal Water Pollution Control Act (33 U.S.C. 
1383) is amended by striking subsection (h) (as redesignated by section 
104) and inserting the following:
    ``(h) Priority System Requirement.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Restructuring.--The term `restructuring' 
                means--
                            ``(i) the consolidation of management 
                        functions or ownership with another facility; 
                        or
                            ``(ii) the formation of cooperative 
                        partnerships.
                    ``(B) Traditional wastewater approach.--The term 
                `traditional wastewater approach' means a managed 
                system used to collect and treat wastewater from an 
entire service area consisting of--
                            ``(i) collection sewers;
                            ``(ii) a centralized treatment plant using 
                        biological, physical, or chemical treatment 
                        processes; and
                            ``(iii) a direct point source discharge to 
                        surface water.
            ``(2) Priority system.--A State shall establish a system 
        for providing financial assistance from the water pollution 
        control revolving fund of the State under which the State--
                    ``(A) gives more weight to an application for 
                assistance by a treatment works if the application 
                includes such other information as the State determines 
                to be appropriate and--
                            ``(i) an inventory of assets, including a 
                        description of the condition of those assets;
                            ``(ii) a schedule for replacement of 
                        assets;
                            ``(iii) a financing plan indicating sources 
                        of revenue from rate payers, grants, bonds, 
                        other loans, and other sources;
                            ``(iv) a review of options for 
                        restructuring the treatment works; or
                            ``(v) a review of options for approaches 
                        other than a traditional wastewater approach 
                        that may include actions or projects that treat 
                        or minimize sewage or urban stormwater 
                        discharges using--
                                    ``(I) decentralized or distributed 
                                stormwater controls;
                                    ``(II) decentralized wastewater 
                                treatment;
                                    ``(III) low impact development 
                                technologies;
                                    ``(IV) stream buffers;
                                    ``(V) wetland restoration; or
                                    ``(VI) actions to minimize the 
                                amount of and direct connections to 
                                impervious surfaces;
                    ``(B) takes into consideration appropriate 
                chemical, physical, and biological data that the State 
                considers reasonably available and of sufficient 
                quality;
                    ``(C) provides for public notice and opportunity to 
                comment on establishment of the system and the summary 
                under subparagraph (D);
                    ``(D) publishes not less than biennially in summary 
                form a description of projects in the State that are 
                eligible for assistance under this title that 
                indicates--
                            ``(i) the priority assigned to each project 
                        under the priority system of the State; and
                            ``(ii) the funding schedule for each 
                        project, to that extent the such information is 
                        available; and
                    ``(E) ensures that projects undertaken with 
                assistance under this title are designed to achieve, in 
                the estimation of the State, the optimum water quality 
                management, consistent with the public health and water 
                quality goals and requirements of this title.''.

SEC. 106. TRANSFERABILITY OF FUNDS.

    Section 603 of the Federal Water Pollution Control Act (33 U.S.C. 
1383) (as amended by section 104(1)) is amended by adding at the end 
the following:
    ``(j) Transfer of Funds.--
            ``(1) In general.--The Governor of a State may--
                    ``(A)(i) reserve not more than 33 percent of a 
                capitalization grant made under this title; and
                    ``(ii) add the funds reserved to any funds provided 
                to the State under section 1452 of the Safe Drinking 
                Water Act (42 U.S.C. 300j-12); and
                    ``(B)(i) reserve for any year an amount that does 
                not exceed the amount that may be reserved under 
                subparagraph (A) for that year from capitalization 
                grants made under section 1452 of that Act (42 U.S.C. 
                300j-12); and
                    ``(ii) add the reserved funds to any funds provided 
                to the State under this title.
            ``(2) State match.--Funds reserved under this subsection 
        shall not be considered to be a State contribution for a 
        capitalization grant required under this title or section 
        1452(b) of the Safe Drinking Water Act (42 U.S.C. 300j-
        12(b)).''.

SEC. 107. GRANTS PROGRAM.

    Section 603 of the Federal Water Pollution Control Act (33 U.S.C. 
1383) (as amended by section 106) is amended by adding at the end the 
following:
    ``(k) Set-Aside.--
            ``(1) $3,000,000,000 or less made available.--
                    ``(A) In general.--In the case of a fiscal year for 
                which appropriations for State revolving loan funds do 
                not exceed $3,000,000,000, a State shall set aside 10 
                percent of the capitalization grant of the State under 
                section 601(a) to provide grants to eligible users 
                described in subsection (c) in the amount of not more 
                than 55 percent of the total cost of a project for 
                which a grant is made.
                    ``(B) Waiver.--A State may waive the requirement of 
                subparagraph (A) if the average time for processing 
                loan applications during the preceding 12 months did 
                not exceed 90 days.
            ``(2) More than $3,000,000,000 made available.--In the case 
        of a fiscal year for which appropriations for State revolving 
        loan funds exceed $3,000,000,000, a State shall set aside not 
        more than 10 nor less than 5 percent of the State revolving 
        loan fund of the State.''.

SEC. 108. COSTS OF ADMINISTERING WATER POLLUTION CONTROL REVOLVING LOAN 
              FUNDS.

    Section 603(d)(7) of the Federal Water Pollution Control Act (33 
U.S.C. 1383(d)(7)) is amended by striking ``4 percent'' and inserting 
``6 percent''.

SEC. 109. ALLOCATION FORMULA.

    Section 604 of the Federal Water Pollution Control Act (33 U.S.C. 
1384) is amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively;
            (2) by striking subsection (a) and inserting the following:
    ``(a) Definitions.--In this subsection:
            ``(1) Base formula.--The term `base formula' means the 
        formula for the allotment of funds made available to carry out 
        this section for a fiscal year to States in accordance with 
        section 205(c)(3).
            ``(2) Needs survey.--The term `needs survey' means a needs 
        survey conducted under section 516(2).
            ``(3) Needs survey percentage.--The term `needs survey 
        percentage', with respect to a State, means the percentage 
        applicable to the State under a formula for the allotment of 
        funds made available to carry out this section for a fiscal 
        year to States in amounts determined by the Administrator based 
        on the ratio that--
                    ``(A) the needs of a State described in categories 
                I through VII of the most recent needs survey; bears to
                    ``(B) the needs of all States described in 
                categories I through VII of the most recent needs 
                survey.
            ``(4) Next needs survey.--The term `next needs survey' 
        means the first needs survey that is completed after the 2000 
        needs survey.
            ``(5) State.--The term `State' means a State, the District 
        of Columbia, and the Commonwealth of Puerto Rico.
    ``(b) Allocation of Funds.--
            ``(1) In general.--Funds made available to carry out this 
        section for a fiscal year shall be allocated by the 
        Administrator in accordance with this subsection.
            ``(2) Indian tribes.--Of the total amount of funds 
        available, 1.5 percent shall be allocated to Indian tribes 
        (within the meaning of section 518(c)).
            ``(3) Certain territories and freely associated states.--Of 
        the total amount of funds made available, 0.25 percent shall be 
        allocated to Guam, the United States Virgin Islands, American 
        Samoa, the Commonwealth of the Northern Mariana Islands, the 
        Federated States of Micronesia, the Republic of the Marshall 
        Islands, and the Republic of Palau to be allocated among those 
        territories and freely associated states, as determined by the 
        Administrator.
            ``(4) States.--
                    ``(A) Target allocation.--Each State shall have a 
                target allocation that--
                            ``(i) in the case of a State for which the 
                        needs survey percentage is less than 1.0 
                        percent, shall be 1.0 percent; and
                            ``(ii) in the case of any other State, 
                        shall be the needs survey percentage.
                    ``(B) Limitation on growth.--
                            ``(i) Applicability.--This subparagraph 
                        applies with respect to any fiscal year for 
                        which the amount of funds made available to 
                        carry out this section is $3,150,000,000 or 
                        less.
                            ``(ii) States with a needs survey 
                        percentage of 1.0 percent or less.--In the case 
                        of a State for which the needs survey 
                        percentage is 1.0 percent or less, the growth 
                        in allocation in dollar terms relative to the 
                        base formula shall be limited to--
                                    ``(I) 12 percent for fiscal year 
                                2005;
                                    ``(II) 16 percent for fiscal year 
                                2006;
                                    ``(III) 20 percent for fiscal year 
                                2007;
                                    ``(IV) 24 percent for fiscal year 
                                2008; and
                                    ``(V) 28 percent for fiscal year 
                                2009 and each fiscal year thereafter.
                            ``(iii) States with a needs survey 
                        percentage of greater than 1.0 percent.--In the 
                        case of a State for which the needs survey 
                        percentage is greater than 1.0 percent, the 
                        growth in allocation in dollar terms relative 
                        to the base formula shall be limited to 0.0 
                        percent (before an allocation, if any, is made 
                        under subparagraph (D)).
                    ``(C) Limitation on loss.--
                            ``(i) States with a needs survey percentage 
                        of 1.0 percent or less.--A dollar amount that 
                        is not less than the dollar amount under the 
                        base formula shall be allocated to States 
                        described in subparagraph (A)(i).
                            ``(ii) States for which the needs survey 
                        percentage is greater than 1.0 percent.--A 
                        dollar amount that is equal to the dollar 
                        amount under the base formula shall be 
                        allocated to States described in subparagraph 
                        (A)(ii) (before an allocation, if any, is made 
                        under subparagraph (D)) that--
                                    ``(I) in the most recent needs 
                                survey, reported higher needs in both 
                                categories V and VII than the State 
                                reported in the previous needs survey;
                                    ``(II) grew in population by more 
                                than 10 percent between the 1990 
                                decenniel census and the 2000 decenniel 
                                census; or
                                    ``(III) has a population equal to 4 
                                percent or more of the total population 
                                of the United States, as reported in 
                                the 2000 decenniel census.
                    ``(D) Unallocated balance.--
                            ``(i) Less than $1,380,000,000 made 
                        available.--For a fiscal year for which less 
                        than $1,380,000,000 is made available to carry 
                        out this section, the unallocated balance of 
                        available funds shall be allocated in equal 
                        amounts to all States that, in the most recent 
                        needs survey, report higher total needs both in 
                        absolute dollar terms and as a percentage of 
                        the total United States needs.
                            ``(ii) $1,380,000,000 or more made 
                        available.--For a fiscal year for 
which $1,380,000,000 or more is made available to carry out this 
section, the unallocated balance of available funds shall be allocated 
in equal amounts to all States that--
                                    ``(I) are described in clause (i); 
                                or
                                    ``(II) are described in 
                                subparagraph (C).''; and
            (3) by adding at the end the following:
    ``(f) Reservation of Funds for Planning.--A State shall reserve to 
carry out planning under sections 205(j) and 303(e) for each fiscal 
year the greater of--
            ``(1) 2 percent of the amount allocated to the State under 
        this section for the fiscal year; or
            ``(2) $100,000.''.

SEC. 110. AUTHORIZATION OF APPROPRIATIONS.

    Section 607 of the Federal Water Pollution Control Act (33 U.S.C. 
1387) is amended to read as follows:

``SEC. 607. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this title--
            ``(1) $3,200,000,000 for each of fiscal years 2005 and 
        2006;
            ``(2) $3,600,000,000 for fiscal year 2007;
            ``(3) $4,000,000,000 for fiscal year 2008; and
            ``(4) $6,000,000,000 for fiscal year 2009.
    ``(b) Availability.--Amounts made available under this section 
shall remain available until expended.
    ``(c) Reservation for Needs Surveys.--Of the amount made available 
under subsection (a) to carry out this title for a fiscal year, the 
Administrator may reserve not more than $1,000,000 per year to pay the 
costs of conducting needs surveys under section 516(2).''.

SEC. 111. REPORTS.

    Section 516 of the Federal Water Pollution Control Act (33 U.S.C. 
1375) is amended in the second sentence by striking ``odd-numbered'' 
and inserting ``fourth''.

SEC. 112. PILOT PROGRAM FOR ALTERNATIVE WATER SOURCE PROJECTS.

    Section 220(j) of the Federal Water Pollution Control Act (33 
U.S.C. 1300(j)) is amended in the first sentence by striking ``a total 
of $75,000,000 for fiscal years 2002 through 2004'' and inserting 
``$25,000,000 for each of fiscal years 2005 through 2007''.

SEC. 113. WET WEATHER GRANTS.

    Section 221 of the Federal Water Pollution Control Act (33 U.S.C. 
1301) is amended--
            (1) by striking the section heading and inserting the 
        following:

``SEC. 221. WET WEATHER GRANTS.'';

            (2) in subsection (a)(1), by striking ``and sanitary sewer 
        overflows'' and inserting ``, sanitary sewer overflows, and 
        stormwater runoff'';
            (3) in subsection (b)--
                    (A) in paragraph (2), by striking ``or a separate 
                sanitary sewer overflow control plan'' and inserting 
                ``, sanitary sewer overflow control plan, or stormwater 
                runoff control plan'';
                    (B) by redesignating paragraphs (3) and (4) as 
                paragraphs (4) and (5), respectively; and
                    (C) by inserting after paragraph (2) the following:
            ``(3) is a municipality that is subject to the Phase I or 
        Phase II stormwater regulations;'';
            (4) in subsection (f), by striking ``section $750,000,000'' 
        and all that follows and inserting ``section $250,000,000 for 
        each of fiscal years 2005 through 2009, to remain available 
        until expended.'';
            (5) in subsection (g)(2)(B), by striking ``and sanitary 
        sewer overflow controls'' and inserting ``, sanitary sewer 
        overflow controls, and stormwater runoff controls''; and
            (6) in subsection (i), by striking ``and sanitary sewer 
        overflow controls'' and inserting ``, sanitary sewer overflow, 
        and stormwater runoff''.

SEC. 114. TECHNICAL CORRECTION.

    Title I of the Federal Water Pollution Control Act is amended by 
redesignating the second section 121 (33 U.S.C. 1274) as section 122.

              TITLE II--SAFE DRINKING WATER INFRASTRUCTURE

SEC. 201. TECHNICAL ASSISTANCE FOR SMALL CENTERS.

     Section 1420(g) of the Safe Drinking Water Act (42 U.S.C. 300g-
9(g)) is amended by striking paragraph (4) and inserting the following:
            ``(4) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $2,000,000 for 
        each of fiscal years 2005 through 2009.''.

SEC. 202. LABOR STANDARDS.

    Section 1450(e) of the Safe Drinking Water Act (42 U.S.C. 300j-
9(e)) is amended by striking ``(e) The Administrator'' and all that 
follows through ``the Secretary of Labor'' in the second sentence and 
inserting the following:
    ``(e) Labor Standards.--
            ``(1) In general.--The Administrator shall take such action 
        as is necessary to ensure that all laborers and mechanics 
        employed by contractors and subcontractors on construction 
        projects financed, in whole or in part, by a grant, loan, loan 
        guarantee, refinancing, or any other form of assistance 
        provided under this title (including assistance provided from 
        the State drinking water revolving fund under section 1452) are 
        paid wages at rates that are not less than the rates prevailing 
        for the same type of work for similar construction in the 
        immediate locality, as determined by the Secretary of Labor in 
        accordance with the Act of March 3, 1931 (40 U.S.C. 276a et 
        seq.).
            ``(2) Authority and functions.--The Secretary of Labor''.

SEC. 203. PRECONSTRUCTION WORK.

    Section 1452(a)(2) of the Safe Drinking Water Act (42 U.S.C. 300j-
12(a)(2)) is amended in the second sentence--
            (1) by striking ``(not'' and inserting ``(including 
        expenditures for planning, design, and associated 
        preconstruction and for recovery for siting of the facility and 
        related elements but not''; and
            (2) by inserting before the period at the end the 
        following: ``or to replace or rehabilitate aging collection, 
        treatment, storage (including reservoirs), or distribution 
        facilities of public water systems or provide for capital 
        projects to upgrade the security of public water systems''.

SEC. 204. AFFORDABILITY.

    Section 1452(d)(3) of the Safe Drinking Water Act (42 U.S.C. 300j-
12(d)(3)) is amended in the first sentence by inserting ``, or portion 
of a service area,'' after ``service area''.

SEC. 205. SAFE DRINKING WATER REVOLVING LOAN FUNDS.

    (a) In General.--Section 1452(g) of the Safe Drinking Water Act (42 
U.S.C. 300j-12(g)) is amended--
            (1) in paragraph (2)--
                    (A) in the first sentence, by striking ``4'' and 
                inserting ``6''; and
                    (B) by striking ``1419'' and all that follows 
                through ``1993.'' and inserting ``1419.''; and
            (2) by adding at the end the following:
            ``(5) Transfer of funds.--
                    ``(A) In general.--The Governor of a State may--
                            ``(i)(I) reserve not more than 33 percent 
                        of a capitalization grant made under this 
                        section; and
                            ``(II) add the funds reserved to any funds 
                        provided to the State under section 601 of the 
                        Federal Water Pollution Control Act (33 U.S.C. 
                        1381); and
                            ``(ii)(I) reserve for any fiscal year an 
                        amount that does not exceed the amount that may 
                        be reserved under clause (i)(I) for that year 
                        from capitalization grants made under section 
                        601 of that Act (33 U.S.C. 1381); and
                            ``(II) add the reserved funds to any funds 
                        provided to the State under this section.
                    ``(B) State match.--Funds reserved under this 
                paragraph shall not be considered to be a State match 
                of a capitalization grant required under this section 
                or section 602(b) of the Federal Water Pollution 
                Control Act (33 U.S.C. 1382(b)).''.
    (b) Priority System Requirements.--Section 1452(b)(3) of the Safe 
Drinking Water Act (42 U.S.C. 300j-12(b)(3)) is amended--
            (1) by redesignating subparagraph (B) as subparagraph (C);
            (2) by striking subparagraph (A) and inserting the 
        following:
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Restructuring.--The term 
                        `restructuring' means changes in operations 
                        (including ownership, accounting, rates, 
                        maintenance, consolidation, and alternative 
                        water supply).
                            ``(ii) Traditional approach.--The term 
                        `traditional approach' means a managed system 
                        used to treat and distribute drinking water to 
                        an entire service area consisting of a 
                        centralized water system using biological, 
                        physical, or chemical treatment processes.
                    ``(B) Priority system.--An intended use plan shall 
                provide, to the maximum extent practicable, that--
                            ``(i) priority for the use of funds be 
                        given to projects--
                                    ``(I) that address the most serious 
                                risk to human health;
                                    ``(II) that are necessary to ensure 
                                compliance with the requirements of 
                                this title (including requirements for 
                                filtration); and
                                    ``(III) that assist systems most in 
                                need on a per-household basis according 
                                to State affordability criteria; and
                            ``(ii) the State shall give more weight to 
                        an application for assistance by a community 
                        water system if the application includes such 
                        other information as the State determines to be 
                        necessary and--
                                    ``(I) an inventory of assets, 
                                including a description of the 
                                condition of those assets;
                                    ``(II) a schedule for replacement 
                                of assets;
                                    ``(III) a financing plan indicating 
                                sources of revenue from rate payers, 
                                grants, bonds, other loans, and other 
                                sources;
                                    ``(IV) a review of options for 
                                restructuring the public water system; 
                                or
                                    ``(V) a review of options for 
                                approaches other than a traditional 
                                approach.''; and
            (3) in subparagraph (C) (as redesignated by paragraph (1)), 
        by striking ``periodically'' and inserting ``at least 
        biennially''.

SEC. 206. GRANTS PROGRAM.

    Section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j-12) is 
amended by adding at the end the following:
    ``(s) Set-Aside.--
            ``(1) $2,500,000,000 or less made available.--
                    ``(A) In general.--In the case of a fiscal year for 
                which appropriations for State revolving loan funds do 
                not exceed $2,500,000,000, a State shall set aside 10 
                percent of the capitalization grant of the State under 
                subsection (a) to provide grants to projects eligible 
                for assistance under subsection (a)(2) of not more than 
                55 percent of the total cost of a project for which a 
                grant is made.
                    ``(B) Waiver.--A State may waive the requirement of 
                subparagraph (A) if the average time for processing 
                loan applications during the preceding 12 months did 
                not exceed 90 days.
            ``(2) More than $2,500,000,000 made available.--In the case 
        of a fiscal year for which appropriations for State revolving 
        loan funds exceed $2,500,000,000, a State shall set aside not 
        more than 5 nor less than 2.5 percent of the State revolving 
        loan fund of the State.''.

SEC. 207. OTHER AUTHORIZED ACTIVITIES.

    Section 1452(k)(2)(D) of the Safe Drinking Water Act (42 U.S.C. 
300j-12(k)(2)(D)) is amended by inserting before the period at the end 
the following: ``(including implementation of source water protection 
plans)''.

SEC. 208. SMALL SYSTEM REVOLVING LOAN FUNDS.

    Section 1442(e) of the Safe Drinking Water Act (42 U.S.C. 300j-
1(e)) is amended--
            (1) by striking ``The Administrator may provide'' and 
        inserting the following:
            ``(1) In general.--The Administrator may provide''; and
            (2) by adding at the end the following:
            ``(2) Small system revolving loan fund.--
                    ``(A) In general.--In addition to amounts provided 
                under this section, the Administrator may provide 
                grants to qualified private, nonprofit entities to 
                capitalize revolving funds to provide financing to 
                eligible entities described in subparagraph (B) for--
                            ``(i) predevelopment costs (including costs 
                        for planning, design, associated 
                        preconstruction, and necessary activities for 
                        siting the facility and related elements) 
                        associated with proposed water projects or with 
                        existing water systems; and
                            ``(ii) short-term costs incurred for 
                        replacement equipment, small-scale extension 
                        services, or other small capital projects that 
                        are not part of the regular operations and 
                        maintenance activities of existing water 
                        systems.
                    ``(B) Eligible entities.--To be eligible for 
                assistance under this paragraph, an entity shall be a 
                small water system (as described in section 
                1412(b)(4)(E)(ii)).
                    ``(C) Maximum amount of loans.--The amount of 
                financing made to an eligible entity under this 
                paragraph shall not exceed--
                            ``(i) $100,000 for costs described in 
                        subparagraph (A)(i); and
                            ``(ii) $100,000 for costs described in 
                        subparagraph (A)(ii).
                    ``(D) Term.--The term of a loan made to an eligible 
                entity under this paragraph shall not exceed 10 years.
                    ``(E) Annual report.--For each fiscal year, a 
                qualified private, nonprofit entity that receives a 
                grant under subparagraph (A) shall submit to the 
                Administrator a report that--
                            ``(i) describes the activities of the 
                        qualified private, nonprofit entity under this 
                        paragraph for the fiscal year; and
                            ``(ii) specifies--
                                    ``(I) the number of communities 
                                served;
                                    ``(II) the sizes of those 
                                communities; and
                                    ``(III) the type of financing 
                                provided by the qualified private, 
                                nonprofit entity.
                    ``(F) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                subsection $25,000,000 for each of fiscal years 2005 
                through 2009.''.

SEC. 209. AUTHORIZATION OF APPROPRIATIONS.

    Section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j-12) is 
amended by striking subsection (m) and inserting the following:
    ``(m) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section--
                    ``(A) $1,500,000,000 for fiscal year 2005;
                    ``(B) $2,000,000,000 for each of fiscal years 2006 
                and 2007;
                    ``(C) $3,500,000,000 for fiscal year 2008; and
                    ``(D) $6,000,000,000 for fiscal year 2009.
            ``(2) Availability.--Amounts made available under this 
        subsection shall remain available until expended.
            ``(3) Reservation for needs surveys.--Of the amount made 
        available under paragraph (1) to carry out this section for a 
        fiscal year, the Administrator may reserve not more than 
        $1,000,000 for each fiscal year to pay the costs of conducting 
        needs surveys under subsection (h).''.

SEC. 210. REMOVAL OF LEAD FROM DRINKING WATER IN SCHOOLS AND IN THE 
              DISTRICT OF COLUMBIA.

    (a) Lead Contamination in School Drinking Water.--Section 1464 of 
the Safe Drinking Water Act (42 U.S.C. 300j-24) is amended by striking 
subsection (d) and inserting the following:
    ``(d) Removal of Lead in Schools.--
            ``(1) In general.--Not later than 270 days after the date 
        of enactment of the Water Infrastructure Financing Act, in 
        consultation with each State, the Administrator shall establish 
        a program to provide grants to States to assist in paying, or 
        to provide reimbursement for, costs incurred by local 
        educational agencies in testing for, remediating, and informing 
        students, parents, teachers, and employees about lead 
contamination in drinking water from coolers and from other sources of 
lead contamination at schools under the jurisdiction of the local 
educational agencies.
            ``(2) Funding.--
                    ``(A) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                subsection $40,000,000 for each of fiscal years 2005 
                through 2008.
                    ``(B) Administrative expenses.--The Administrator 
                may use not more than 5 percent of amounts made 
                available under subparagraph (A) for a fiscal year to 
                pay administrative expenses incurred in carrying out 
                this subsection.''.
    (b) Lead Contamination in Drinking Water in the District of 
Columbia.--Section 1465 of the Safe Drinking Water Act (42 U.S.C. 300j-
25) is amended to read as follows:

``SEC. 1465. LEAD CONTAMINATION IN DRINKING WATER IN THE DISTRICT OF 
              COLUMBIA.

    ``(a) Grant.--
            ``(1) In general.--The Administrator may provide to the 
        District of Columbia a grant of $20,000,000 to be used to 
        address lead contamination in the water supply of the District 
        of Columbia.
            ``(2) Use of grant funds.--Funds provided under paragraph 
        (1) may be used for activities such as--
                    ``(A) assessment of infrastructure (which may 
                include, on a voluntary basis, fixtures within private 
                residences, including replacement faucet strainers);
                    ``(B) testing of water supplies throughout the 
                water system;
                    ``(C) distribution of filters to residences with 
                high lead levels;
                    ``(D) evaluation of chemical additives (including 
                zinc orthophosphate) to the water supply;
                    ``(E) pipe replacement; and
                    ``(F) evaluation and improvement of communication 
                with the general public, particularly households with 
                water that tested above the action level for lead.
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $20,000,000.
    ``(b) Study by the National Academy of Sciences.--
            ``(1) In general.--The Administrator shall contract with 
        the National Academy of Sciences to conduct a 2-phase study in 
        accordance with this subsection.
            ``(2) Phase i.--In phase I of the study, the National 
        Academy of Sciences shall conduct a comprehensive evaluation 
        of--
                    ``(A) compliance by the District of Columbia Water 
                and Sewer Authority with regulations pertaining to lead 
                and copper in drinking water (including meeting the 
                public notification requirements of the regulations); 
                and
                    ``(B) the potential causes of lead in the water 
                supply of the District of Columbia.
            ``(3) Phase ii.--In phase II of the study, the National 
        Academy of Sciences shall assess, from a cross-section of 
        cities of varying population sizes across the United States 
        with lead service lines--
                    ``(A) the extent to which water levels in those 
                cities have exceeded the action level for lead; and
                    ``(B) the potential causes of the exceedences 
                (including service lines, chemical additives in the 
                water supply, equipment upgrades, and pipes in 
                residences).
            ``(4) Report.--Not later than 1 year after the date of 
        enactment of this paragraph, the National Academy of Sciences 
        shall submit to the Committee on Environment and Public Works 
        of the Senate and the Committee on Energy and Commerce of the 
        House of Representatives a report describing the findings made 
        in the study.
            ``(5) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $2,000,000.''.

SEC. 211. SMALL PUBLIC WATER SYSTEM ASSISTANCE PROGRAM.

    (a) Establishment of Program.--The Safe Drinking Water Act (42 
U.S.C. 300f et seq.) is amended by adding at the end the following:

             ``PART G--SMALL PUBLIC WATER SYSTEM ASSISTANCE

``SEC. 1471. DEFINITIONS.

    ``In this part:
            ``(1) Eligible activity.--
                    ``(A) In general.--The term `eligible activity' 
                means an activity that is carried out by an eligible 
                entity to ensure compliance with national primary 
                drinking water regulations applicable to the eligible 
                entity under section 1412.
                    ``(B) Inclusion.--The term `eligible activity' 
                includes source water protection.
                    ``(C) Exclusion.--The term `eligible activity' does 
                not include any activity to increase the population 
                served by a public water system, except to the extent 
                that the Administrator determines an activity to be 
                necessary to--
                            ``(i) achieve compliance with a national 
                        primary drinking water regulation; and
                            ``(ii) provide a water supply to a 
                        population that, as of the date of enactment of 
                        this part, is not served by a safe public water 
                        system.
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) a small public water system that--
                            ``(i) if located in a State, serves a 
                        community that, under affordability criteria 
                        established by the State under section 1452(d), 
                        is determined by the State to be--
                                    ``(I) a disadvantaged community; or
                                    ``(II) a community that would 
                                otherwise become a disadvantaged 
                                community as a result of carrying out 
                                an eligible activity, as determined by 
                                the State; or
                            ``(ii) if located in an area governed by an 
                        Indian Tribe, serves a community that is 
                        determined by the Administrator, under criteria 
                        published by the Administrator under section 
                        1452(d) and in consultation with the Secretary, 
                        to be--
                                    ``(I) a disadvantaged community; or
                                    ``(II) a community that would 
                                otherwise become a disadvantaged 
                                community as a result of carrying out 
                                an eligible activity, as determined by 
                                the State; and
                    ``(B) a public water system that--
                            ``(i) would incur $3,000,000 or more in 
                        costs in complying with national primary 
                        drinking water regulations promulgated under 
                        this Act; and
                            ``(ii) is a disadvantaged community or a 
                        community may otherwise become disadvantaged as 
                        a result of carrying out an eligible activity, 
                        as determined by the State.
            ``(3) Program.--The term `program' means the small public 
        water system assistance program established under section 
        1472(a).
            ``(4) Secretary.--The term `Secretary' means the Secretary 
        of Health and Human Services, acting through the Director of 
        the Indian Health Service.
            ``(5) Small public water system.--The term `small public 
        water system' means a public water system (including a 
        community water system and a noncommunity water system) that 
        serves a population of 15,000 or fewer individuals.

``SEC. 1472. SMALL PUBLIC WATER SYSTEM ASSISTANCE PROGRAM.

    ``(a) Establishment.--Not later than July 1, 2006, the 
Administrator shall establish within the Environmental Protection 
Agency a small public water system assistance program for, and provide 
grants to, eligible entities for use in carrying out eligible 
activities.
    ``(b) Priority.--
            ``(1) In general.--The Administrator shall provide grants 
        to eligible entities for eligible activities that--
                    ``(A) address the most serious risks to human 
                health from lack of compliance with the regulations 
                specified in subparagraph (B);
                    ``(B) are necessary to ensure compliance with 
                national primary drinking water regulations applicable 
                to eligible entities under section 1412; and
                    ``(C) assist systems serving communities that are 
                most in need, as calculated on the basis of median 
                household income, under affordability criteria 
                established by the State under section 1452(d) (or, in 
                the case of eligible entities in an area governed by an 
                Indian Tribe, under affordability criteria established 
                by the Administrator, in consultation with the 
                Secretary).
            ``(2) Management cooperatives.--The Administrator shall 
        consider giving priority for grants under this section to 
        eligible activities that are carried out by communities that 
        form management cooperatives.
    ``(c) Technical Assistance.--In providing grants under this 
section, the Administrator shall--
            ``(1) use not less than 1.5 percent of funds made available 
        to carry out this section to provide grants to nonprofit 
        technical assistance organizations to be used to assist 
        eligible entities in--
                    ``(A) assessing needs relating to eligible 
                activities;
                    ``(B) identifying additional available sources of 
                funding to meet the cost-sharing requirements under the 
                program; and
                    ``(C) planning, implementing, and maintaining any 
                eligible activities of the eligible entities that 
                receive funding under this section;
            ``(2) require that none of the funds provided under 
        paragraph (1) be used to pay for lobbying expenses; and
            ``(3) require that for each fiscal year, not more than 5 
        percent of the funds received by an eligible entity under this 
        section may be used to obtain technical assistance in planning, 
        implementing, and maintaining eligible activities for which 
        funding is provided under this section.
    ``(d) Indian Tribes.--
            ``(1) In general.--In providing grants under this section, 
        the Administrator shall use not less than 3 percent of funds 
        made available to carry out this section for each fiscal year 
        to provide grants to eligible entities that are located in 
        areas governed by Indian Tribes.
            ``(2) Program priority requirement.--
                    ``(A) List of eligible activities.--
                            ``(i) In general.--The Administrator, in 
                        consultation with the Secretary, shall, for 
                        each fiscal year, identify, and, consistent 
                        with subsection (b) and considering the 
                        criteria described in subparagraph (B), list in 
                        descending order of priority, eligible 
                        activities for eligible entities located in 
                        areas governed by Indian Tribes for which funds 
                        provided from a grant under this part may be 
                        used.
                            ``(ii) Coordination.--
                                    ``(I) In general.--To the maximum 
                                extent practicable, the Administrator 
                                shall ensure that the preparation of 
                                the list under clause (i) is 
                                coordinated with any needs assessment 
                                conducted under section 1452(i)(4).
                                    ``(II) Additional consideration.--
                                Any additional financial needs of small 
                                public water systems located in areas 
                                governed by Indian Tribes that are 
                                associated with the cost of complying 
                                with a national primary drinking water 
                                regulation (including a regulation 
                                concerning arsenic) that is promulgated 
                                after the then most recent needs survey 
                                conducted under section 1452(i)(4) 
                                shall be factored into the 
                                determination of financial need for, 
                                and prioritization of, eligible 
                                activities under this section.
                    ``(B) Criteria.--The Administrator shall, in 
                preparing a list under subparagraph (A), consider 
                giving priority to any listed eligible activities that 
                are to be carried out by communities that form 
                management cooperatives (including management 
                cooperatives between systems that do not have public 
                water system connections).
            ``(3) Allocation of grant funding.--For each fiscal year, 
        the Administrator, in consultation with the Secretary, shall 
        provide grants to eligible entities located in an area governed 
        by an Indian Tribe for the maximum number of eligible 
        activities for which the funding allocation makes assistance 
        available, based on the priority assigned by the Administrator 
        to eligible activities under paragraph (2).
            ``(4) Limitation on use of funds.--For each fiscal year, 
        not more than 5 percent of the funds received by an eligible 
        entity located in an area governed by an Indian Tribe under 
        this section may be used to obtain technical assistance in 
        planning, implementing, and maintaining eligible activities 
        that are funded under this section.
    ``(e) Limitation on Receipt of Funds.--An eligible entity may 
receive a grant under this section only--
            ``(1) if the Administrator determines that use of the grant 
        will aid compliance with national primary drinking water 
        regulations applicable to the eligible entity under section 
        1412;
            ``(2)(A) to restructure or consolidate the facility to 
        achieve compliance with applicable national primary drinking 
        water regulations; or
            ``(B) in a case in which restructuring or consolidation of 
        the facility is not practicable, if the Administrator 
        determines that--
                    ``(i) the eligible entity has made a good faith 
                effort to achieve compliance with applicable national 
                primary drinking water regulations; and
                    ``(ii) the eligible entity is adhering to an 
                enforceable schedule for complying with those 
                regulations; and
            ``(3) if--
                    ``(A) the Administrator determines that an eligible 
                entity may lack the technical, managerial, operations, 
                maintenance, or financial capacity to ensure compliance 
                with national primary drinking water regulations 
                applicable to the eligible entity under section 1412, 
                and the eligible entity agrees to undertake feasible 
                and appropriate changes in operations (including 
                changes in ownership, management, accounting, rates, 
                maintenance, consolidation, provision of an alternative 
                water supply, or other procedures); and
                    ``(B) the Administrator determines that the 
                measures are necessary to ensure that the eligible 
                entity has the technical, managerial, operational, 
                maintenance, and financial capacity to comply with 
                applicable national primary drinking water regulations 
                over the long term.
    ``(f) Cost Sharing.--
            ``(1) In general.--
                    ``(A) Limit.--Except as provided in paragraph (2), 
                the share of the total cost of an eligible activity 
                funded by a grant under this section shall not exceed 
                80 percent.
                    ``(B) Use of other federal funds.--To pay the 
                portion of an eligible activity that is not funded by a 
                grant under this section, an eligible entity located in 
                an area governed by an Indian Tribe may use Federal 
                financial assistance other than assistance received 
                under this section.
            ``(2) Waiver of cost-sharing requirement.--
                    ``(A) In general.--The Administrator may waive the 
                requirement of an eligible entity to pay all or a 
                portion of the share of an eligible activity that is 
                not funded by a grant under this section, based on a 
                determination by the State that the eligible entity is 
                unable to pay any or all of the share.
                    ``(B) Limitation.--For each fiscal year, the total 
                amount of cost-share waivers provided by the 
                Administrator to eligible entities located in an area 
                governed by an Indian Tribe under subparagraph (A) 
                shall not exceed 30 percent of the amount of funding 
                used to provide grants to Indian Tribes under this 
                part.
    ``(g) Unobligated Funds.--Any funds not obligated by the small 
public water system assistance program established under subsection (a) 
for an eligible activity within 1 year after the date on which funds 
are made available to carry out this part shall be returned to the 
Administrator for use in providing new grants under this part.

``SEC. 1473. REPORTS.

    ``Not later than January 1, 2006, and annually thereafter through 
January 1, 2010, the Administrator shall--
            ``(1) submit, to the Committee on Environment and Public 
        Works of the Senate and the Committee on Energy and Commerce of 
        the House of Representatives, a report that, for the preceding 
        fiscal year--
                    ``(A) lists the eligible activities for eligible 
                entities that receive funds under this part for the 
                preceding fiscal year;
                    ``(B) identifies the number of grants provided 
                under this part to eligible entities located in areas 
                governed by Indian Tribes, and in each State;
                    ``(C) identifies each eligible entity that receives 
                a grant to carry out an eligible activity;
                    ``(D) identifies the amount of each grant provided 
                to an eligible entity to carry out an eligible 
                activity; and
                    ``(E) describes each eligible activity funded by 
                such a grant (including the status of the eligible 
                activity); and
            ``(2) make the report under paragraph (1) available to the 
        public.

``SEC. 1474. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this part 
$200,000,000 for each of fiscal years 2005 through 2009.''.
    (b) Conforming Amendment.--Section 1401(14) of the Safe Drinking 
Water Act (42 U.S.C. 300f(14)) is amended in the second sentence by 
striking ``1452,'' and inserting ``1452 and part G,''.

SEC. 212. SMALL PUBLIC WATER SYSTEM ASSISTANCE PROGRAM.

    (a) Establishment of Program.--The Safe Drinking Water Act (42 
U.S.C. 300f et seq.) is amended by adding at the end the following:

             ``PART G--SMALL PUBLIC WATER SYSTEM ASSISTANCE

``SEC. 1471. DEFINITIONS.

    ``In this part:
            ``(1) Eligible activity.--
                    ``(A) In general.--The term `eligible activity' 
                means an activity that is carried out by an eligible 
                entity to ensure compliance with national primary 
                drinking water regulations applicable to the eligible 
                entity under section 1412.
                    ``(B) Inclusion.--The term `eligible activity' 
                includes source water protection.
                    ``(C) Exclusion.--The term `eligible activity' does 
                not include any activity to increase the population 
                served by a public water system, except to the extent 
                that the Administrator determines an activity to be 
                necessary to--
                            ``(i) achieve compliance with a national 
                        primary drinking water regulation; and
                            ``(ii) provide a water supply to a 
                        population that, as of the date of enactment of 
                        this part, is not served by a safe public water 
                        system.
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) a small public water system that--
                            ``(i) if located in a State, serves a 
                        community that, under affordability criteria 
                        established by the State under section 1452(d), 
                        is determined by the State to be--
                                    ``(I) a disadvantaged community; or
                                    ``(II) a community that would 
                                otherwise become a disadvantaged 
                                community as a result of carrying out 
                                an eligible activity, as determined by 
                                the State; or
                            ``(ii) if located in an area governed by an 
                        Indian Tribe, serves a community that is 
                        determined by the Administrator, under criteria 
                        published by the Administrator under section 
                        1452(d) and in consultation with the Secretary, 
                        to be--
                                    ``(I) a disadvantaged community; or
                                    ``(II) a community that would 
                                otherwise become a disadvantaged 
                                community as a result of carrying out 
                                an eligible activity, as determined by 
                                the State; and
                    ``(B) a public water system that--
                            ``(i) would incur $3,000,000 or more in 
                        costs in complying with national primary 
                        drinking water regulations promulgated under 
                        this Act; and
                            ``(ii) is a disadvantaged community or a 
                        community may otherwise become disadvantaged as 
                        a result of carrying out an eligible activity, 
                        as determined by the State.
            ``(3) Program.--The term `program' means the small public 
        water system assistance program established under section 
        1472(a).
            ``(4) Secretary.--The term `Secretary' means the Secretary 
        of Health and Human Services, acting through the Director of 
        the Indian Health Service.
            ``(5) Small public water system.--The term `small public 
        water system' means a public water system (including a 
        community water system and a noncommunity water system) that 
        serves a population of 15,000 or fewer individuals.

``SEC. 1472. SMALL PUBLIC WATER SYSTEM ASSISTANCE PROGRAM.

    ``(a) Establishment.--Not later than July 1, 2006, the 
Administrator shall establish within the Environmental Protection 
Agency a small public water system assistance program for, and provide 
grants to, eligible entities for use in carrying out eligible 
activities.
    ``(b) Priority.--
            ``(1) In general.--The Administrator shall provide grants 
        to eligible entities for eligible activities that--
                    ``(A) address the most serious risks to human 
                health from lack of compliance with the regulations 
                specified in subparagraph (B);
                    ``(B) are necessary to ensure compliance with 
                national primary drinking water regulations applicable 
                to eligible entities under section 1412; and
                    ``(C) assist systems serving communities that are 
                most in need, as calculated on the basis of median 
                household income, under affordability criteria 
                established by the State under section 1452(d) (or, in 
                the case of eligible entities in an area governed by an 
                Indian Tribe, under affordability criteria established 
                by the Administrator, in consultation with the 
                Secretary).
            ``(2) Management cooperatives.--The Administrator shall 
        consider giving priority for grants under this section to 
        eligible activities that are carried out by communities that 
        form management cooperatives.
    ``(c) Technical Assistance.--In providing grants under this 
section, the Administrator shall--
            ``(1) use not less than 1.5 percent of funds made available 
        to carry out this section to provide grants to nonprofit 
        technical assistance organizations to be used to assist 
        eligible entities in--
                    ``(A) assessing needs relating to eligible 
                activities;
                    ``(B) identifying additional available sources of 
                funding to meet the cost-sharing requirements under the 
                program; and
                    ``(C) planning, implementing, and maintaining any 
                eligible activities of the eligible entities that 
                receive funding under this section;
            ``(2) require that none of the funds provided under 
        paragraph (1) be used to pay for lobbying expenses; and
            ``(3) require that for each fiscal year, not more than 5 
        percent of the funds received by an eligible entity under this 
        section may be used to obtain technical assistance in planning, 
        implementing, and maintaining eligible activities for which 
        funding is provided under this section.
    ``(d) Indian Tribes.--
            ``(1) In general.--In providing grants under this section, 
        the Administrator shall use not less than 3 percent of funds 
        made available to carry out this section for each fiscal year 
        to provide grants to eligible entities that are located in 
        areas governed by Indian Tribes.
            ``(2) Program priority requirement.--
                    ``(A) List of eligible activities.--
                            ``(i) In general.--The Administrator, in 
                        consultation with the Secretary, shall, for 
                        each fiscal year, identify, and, consistent 
                        with subsection (b) and considering the 
                        criteria described in subparagraph (B), list in 
                        descending order of priority, eligible 
                        activities for eligible entities located in 
                        areas governed by Indian Tribes for which funds 
                        provided from a grant under this part may be 
                        used.
                            ``(ii) Coordination.--
                                    ``(I) In general.--To the maximum 
                                extent practicable, the Administrator 
                                shall ensure that the preparation of 
                                the list under clause (i) is 
                                coordinated with any needs assessment 
                                conducted under section 1452(i)(4).
                                    ``(II) Additional consideration.--
                                Any additional financial needs of small 
                                public water systems located in areas 
                                governed by Indian Tribes that are 
                                associated with the cost of complying 
                                with a national primary drinking water 
                                regulation (including a regulation 
                                concerning arsenic) that is promulgated 
                                after the then most recent needs survey 
                                conducted under section 1452(i)(4) 
                                shall be factored into the 
                                determination of financial need for, 
                                and prioritization of, eligible 
                                activities under this section.
                    ``(B) Criteria.--The Administrator shall, in 
                preparing a list under subparagraph (A), consider 
                giving priority to any listed eligible activities that 
                are to be carried out by communities that form 
                management cooperatives (including management 
                cooperatives between systems that do not have public 
                water system connections).
            ``(3) Allocation of grant funding.--For each fiscal year, 
        the Administrator, in consultation with the Secretary, shall 
        provide grants to eligible entities located in an area governed 
        by an Indian Tribe for the maximum number of eligible 
        activities for which the funding allocation makes assistance 
        available, based on the priority assigned by the Administrator 
        to eligible activities under paragraph (2).
            ``(4) Limitation on use of funds.--For each fiscal year, 
        not more than 5 percent of the funds received by an eligible 
        entity located in an area governed by an Indian Tribe under 
        this section may be used to obtain technical assistance in 
        planning, implementing, and maintaining eligible activities 
        that are funded under this section.
    ``(e) Limitation on Receipt of Funds.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        grant under this section shall not be provided to an eligible 
        entity that, as determined by the Administrator--
                    ``(A) does not have the technical, managerial, 
                operations, maintenance, or financial capacity to 
                ensure compliance with national primary drinking water 
                regulations applicable to the eligible entity under 
                section 1412; or
                    ``(B) is in significant noncompliance with any 
                applicable national primary drinking water regulation.
            ``(2) Exception for receipt of grant.--An eligible entity 
        described in paragraph (1) may receive a grant under this 
        section only--
                    ``(A) if the Administrator determines that use of 
                the grant will ensure compliance with national primary 
                drinking water regulations applicable to the eligible 
                entity under section 1412;
                    ``(B)(i) to restructure or consolidate the facility 
                to achieve compliance with applicable national primary 
                drinking water regulations; or
                    ``(ii) in a case in which restructuring or 
                consolidation of the facility is not practicable, if 
                the Administrator determines that--
                            ``(I) the eligible entity has made a good 
                        faith effort to achieve compliance with 
                        applicable national primary drinking water 
                        regulations; and
                            ``(II) the eligible entity is adhering to 
                        an enforceable schedule for complying with 
                        those regulations; and
                    ``(C) in a case in which paragraph (1)(A) applies 
                to an eligible entity, and the eligible entity if--
                            ``(i) the eligible entity agrees to 
                        undertake feasible and appropriate changes in 
                        operations (including changes in ownership, 
                        management, accounting, rates, maintenance, 
                        consolidation, provision of an alternative 
                        water supply, or other procedures); and
                            ``(ii) the Administrator determines that 
                        the measures are necessary to ensure that the 
                        eligible entity has the capacity described in 
                        paragraph (1)(A) to comply with applicable 
                        national primary drinking water regulations 
                        over the long term.
            ``(3) Review.--Before providing assistance under this 
        section to an eligible entity that is in significant 
        noncompliance with any national primary drinking water 
        regulation applicable to the eligible entity under section 
        1412, the Administrator shall conduct a review to determine 
        whether paragraph (1)(A) applies to the entity.
    ``(f) Cost Sharing.--
            ``(1) In general.--
                    ``(A) Limit.--Except as provided in paragraph (2), 
                the share of the total cost of an eligible activity 
                funded by a grant under this section shall not exceed 
                80 percent.
                    ``(B) Use of other federal funds.--To pay the 
                portion of an eligible activity that is not funded by a 
                grant under this section, an eligible entity located in 
                an area governed by an Indian Tribe may use Federal 
                financial assistance other than assistance received 
                under this section.
            ``(2) Waiver of cost-sharing requirement.--
                    ``(A) In general.--The Administrator may waive the 
                requirement of an eligible entity to pay all or a 
                portion of the share of an eligible activity that is 
                not funded by a grant under this section, based on a 
                determination by the State that the eligible entity is 
                unable to pay any or all of the share.
                    ``(B) Limitation.--For each fiscal year, the total 
                amount of cost-share waivers provided by the 
                Administrator to eligible entities located in an area 
                governed by an Indian Tribe under subparagraph (A) 
                shall not exceed 30 percent of the amount of funding 
                used to provide grants to Indian Tribes under this 
                part.
    ``(g) Unobligated Funds.--Any funds not obligated by the small 
public water system assistance program established under subsection (a) 
for an eligible activity within 1 year after the date on which funds 
are made available to carry out this part shall be returned to the 
Administrator for use in providing new grants under this part.

``SEC. 1473. REPORTS.

    ``Not later than January 1, 2006, and annually thereafter through 
January 1, 2010, the Administrator shall--
            ``(1) submit, to the Committee on Environment and Public 
        Works of the Senate and the Committee on Energy and Commerce of 
        the House of Representatives, a report that, for the preceding 
        fiscal year--
                    ``(A) lists the eligible activities for eligible 
                entities that receive funds under this part for the 
                preceding fiscal year;
                    ``(B) identifies the number of grants provided 
                under this part to eligible entities located in areas 
                governed by Indian Tribes, and in each State;
                    ``(C) identifies each eligible entity that receives 
                a grant to carry out an eligible activity;
                    ``(D) identifies the amount of each grant provided 
                to an eligible entity to carry out an eligible 
                activity; and
                    ``(E) describes each eligible activity funded by 
                such a grant (including the status of the eligible 
                activity); and
            ``(2) make the report under paragraph (1) available to the 
        public.

``SEC. 1474. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this part 
$1,000,000,000 for each of fiscal years 2005 through 2008.''.
    (b) Conforming Amendment.--Section 1401(14) of the Safe Drinking 
Water Act (42 U.S.C. 300f(14)) is amended in the second sentence by 
striking ``1452,'' and inserting ``1452 and part G,''.

                        TITLE III--MISCELLANEOUS

SEC. 301. DEFINITION OF ADMINISTRATOR.

    In this title, the term ``Administrator'' means the Administrator 
of the Environmental Protection Agency.

SEC. 302. DEMONSTRATION GRANT PROGRAM FOR WATER QUALITY ENHANCEMENT AND 
              MANAGEMENT.

    (a) Establishment.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act, the Administrator shall establish a 
        nationwide demonstration grant program to--
                    (A) promote innovations in technology and 
                alternative approaches to water quality management or 
                water supply; and
                    (B) reduce costs to municipalities incurred in 
                complying with--
                            (i) the Federal Water Pollution Control Act 
                        (33 U.S.C. 1251 et seq.); and
                            (ii) the Safe Drinking Water Act (42 U.S.C. 
                        300f et seq.).
            (2) Scope.--The demonstration grant program shall consist 
        of 10 projects each year, to be carried out in municipalities 
selected by the Administrator under subsection (b).
    (b) Selection of Municipalities.--
            (1) Application.--A municipality that seeks to participate 
        in the demonstration grant program shall submit to the 
        Administrator a plan that--
                    (A) is developed in coordination with--
                            (i) the agency of the State having 
                        jurisdiction over water quality or water supply 
                        matters; and
                            (ii) interested stakeholders;
                    (B) describes water impacts specific to urban or 
                rural areas;
                    (C) includes a strategy under which the 
                municipality, through participation in the 
                demonstration grant program, could effectively--
                            (i) address water quality or water supply 
                        problems; and
                            (ii) achieve the same water quality goals 
                        as the goals that--
                                    (I) could be achieved using more 
                                traditional methods; or
                                    (II) are required under--
                                            (aa) the Federal Water 
                                        Pollution Control Act (33 
                                        U.S.C. 1251 et seq.); or
                                            (bb) the Safe Drinking 
                                        Water Act (42 U.S.C. 300f et 
                                        seq.); and
                    (D) includes a schedule for achieving the water 
                quality or water supply goals of the municipality.
            (2) Types of projects.--In carrying out the demonstration 
        grant program, the Administrator shall provide grants for 
        projects relating to water supply or water quality matters such 
        as--
                    (A) excessive nutrient growth;
                    (B) urban or rural population pressure;
                    (C) lack of an alternative water supply;
                    (D) difficulties in water conservation and 
                efficiency;
                    (E) lack of support tools and technologies to 
                rehabilitate and replace water supplies;
                    (F) lack of monitoring and data analysis for water 
                distribution systems;
                    (G) nonpoint source water pollution (including 
                stormwater);
                    (H) sanitary overflows;
                    (I) combined sewer overflows;
                    (J) problems with naturally occurring constituents 
                of concern;
                    (K) problems with erosion and excess sediment;
                    (L) new approaches to water treatment, 
                distribution, and collection systems; and
                    (M) new methods for collecting and treating 
                wastewater (including system design and nonstructural 
                alternatives).
            (3) Responsibilities of administrator.--In providing grants 
        for projects under this subsection, the Administrator shall--
                    (A) ensure, to the maximum extent practicable, 
                that--
                            (i) the demonstration program includes a 
                        variety of projects with respect to--
                                    (I) geographic distribution;
                                    (II) innovative technologies used 
                                for the projects; and
                                    (III) nontraditional approaches 
                                (including low-impact development 
                                technologies) used for the projects; 
                                and
                            (ii) each category of project described in 
                        paragraph (2) is adequately represented;
                    (B) give higher priority to projects that--
                            (i) address multiple problems; and
                            (ii) are regionally applicable;
                    (C) ensure, to the maximum extent practicable, that 
                at least 1 community having a population of 10,000 or 
                fewer individuals receives a grant for each fiscal 
                year; and
                    (D) ensure that, for each fiscal year, no 
                municipality receives more than 25 percent of the total 
                amount of funds made available for the fiscal year to 
                provide grants under this section.
            (4) Cost sharing.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the non-Federal share of the total cost of a 
                project funded by a grant under this section shall be 
                not less than 20 percent.
                    (B) Waiver.--The Administrator may reduce or 
                eliminate the non-Federal share of the cost of a 
                project for reasons of affordability.
    (c) Reports.--
            (1) Reports from grant recipients.--A recipient of a grant 
        under this section shall submit to the Administrator, on the 
        date of completion of a project of the recipient and on each of 
        the dates that is 1, 2, and 3 years after that date, a report 
        that describes the effectiveness of the project.
            (2) Reports to congress.--Not later than 2 years after the 
        date of enactment of this Act, and every 2 years thereafter, 
        the Administrator shall submit to the Committee on Environment 
        and Public Works of the Senate and the Committee on 
        Transportation and Infrastructure and the Committee on Energy 
        and Commerce of the House of Representatives a report that 
        describes the status and results of the demonstration program.
    (d) Incorporation of Results and Information.--To the maximum 
extent practicable, the Administrator shall incorporate the results of, 
and information obtained from, successful projects under this section 
into programs administered by the Administrator.
    (e) Research and Development.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act, the Administrator shall, through a 
        competitive process, award grants and enter into contracts and 
        cooperative agreements with research institutions, educational 
        institutions, and other appropriate entities (including 
        consortia of such institutions and entities) for research and 
        development on the use of innovative and alternative 
        technologies to improve water quality or drinking water supply.
            (2) Types of projects.--In carrying out this subsection, 
        the Administrator may select projects relating to such matters 
        as innovative or alternative technologies, approaches, 
        practices, or methods--
                    (A) to increase the effectiveness and efficiency of 
                public water supply systems, including--
                            (i) source water protection;
                            (ii) water use reduction;
                            (iii) water reuse;
                            (iv) water treatment;
                            (v) water distribution and collection 
                        systems; and
                            (vi) water security;
                    (B) to encourage the use of innovative or 
                alternative technologies or approaches relating to 
                water supply or availability; or
                    (C) to increase the effectiveness and efficiency of 
                treatment works, including--
                            (i) methods of collecting, treating, 
                        dispersing, reusing, reclaiming, and recycling 
                        wastewater;
                            (ii) system design;
                            (iii) nonstructural alternatives;
                            (iv) decentralized approaches;
                            (v) assessment;
                            (vi) water efficiency; and
                            (vii) wastewater security.
            (3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $20,000,000 for 
        each of fiscal years 2005 through 2009.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section (other than subsection (e)) 
$20,000,000 for each of fiscal years 2005 through 2009.

SEC. 303. COST OF SERVICE STUDY.

    (a) In General.--Not later than 2 years after the date of enactment 
of this Act, the Administrator shall enter into a contract with the 
National Academy of Sciences for, and the National Academy of Sciences 
shall complete and provide to the Administrator the results of, a study 
of the means by which public water systems and treatment works selected 
by the Academy in accordance with subsection (c) meet the costs 
associated with operations, maintenance, capital replacement, and 
regulatory requirements.
    (b) Required Elements.--
            (1) Affordability.--The study shall, at a minimum--
                    (A) identify existing standards for affordability;
                    (B) determine the manner in which those standards 
                are determined and defined;
                    (C) determine the manner in which affordability 
                varies with respect to communities of different sizes 
                and in different regions; and
                    (D) determine the extent to which affordability 
                affects the decision of a community to increase public 
                water system and treatment works rates (including the 
                decision relating to the percentage by which those 
                rates should be increased).
            (2) Disadvantaged communities.--The study shall, at a 
        minimum--
                    (A) survey a cross-section of States representing 
                different sizes, demographics, and geographical 
                regions;
                    (B) describe, for each State described in 
                subparagraph (A), the definition of ``disadvantaged 
                community'' used in the State in carrying out projects 
                and activities under the Safe Drinking Water Act (42 
                U.S.C. 300f et seq.);
                    (C) review other means of identifying the meaning 
                of the term ``disadvantaged'', as that term applies to 
                communities;
                    (D) determine which factors and characteristics are 
                required for a community to be considered 
                ``disadvantaged''; and
                    (E) evaluate the degree to which factors such as a 
                reduction in the tax base over a period of time, a 
                reduction in population, the loss of an industrial 
                base, and the existence of areas of concentrated 
                poverty are taken into account in determining whether a 
                community is a disadvantaged community.
    (c) Selection of Communities.--The National Academy of Sciences 
shall select communities, the public water system and treatment works 
rate structures of which are to be studied under this section, that 
include a cross-section of communities representing various 
populations, income levels, demographics, and geographical regions.
    (d) Use of Results of Study.--On receipt of the results of the 
study, the Administrator shall--
            (1) submit to Congress a report that describes the results 
        of the study; and
            (2) make the results available to treatment works and 
        public water systems for use by the publicly owned treatment 
        works and public water systems, on a voluntary basis, in 
        determining whether 1 or more new approaches may be implemented 
        at facilities of the publicly owned treatment works and public 
        water systems.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $1,000,000 for each of fiscal 
years 2005 and 2006.

SEC. 304. STATE REVOLVING FUND REVIEW PROCESS.

    As soon as practicable after the date of enactment of this Act, the 
Administrator shall--
            (1) consult with States, utilities, and other Federal 
        agencies providing financial assistance to identify ways to 
        expedite and improve the application and review process for the 
        provision of assistance from--
                    (A) the State water pollution control revolving 
                funds established under title VI of the Federal Water 
                Pollution Control Act (33 U.S.C. 1381 et seq.); and
                    (B) the State drinking water treatment revolving 
                loan funds established under section 1452 of the Safe 
                Drinking Water Act (42 U.S.C. 300j-12);
            (2) take such administrative action as is necessary to 
        expedite and improve the process as the Administrator has 
        authority to take under existing law; and
            (3) submit to Congress a report that, based on the 
        information identified under paragraph (1), contains 
        recommendations for legislation to facilitate further 
        streamlining and improvement of the process.

SEC. 305. SOUTHEAST COLORADO SAFE DRINKING WATER SUPPLY.

    (a) In General.--The Administrator shall provide a grant to the 
Southeast Colorado Water Activity Enterprise, a water activity 
enterprise of the Southeastern Colorado Water Conservancy District, to 
construct a water transmission line from the Pueblo Reservoir in Pueblo 
County, Colorado, to the city of Lamar in Prowers County, Colorado.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $85,000,000 for the period of 
fiscal years 2005 through 2010.

SEC. 306. ASSESSMENT OF PERCHLORATE CONTAMINATION.

    Not later that 1 year after the date of enactment of this Act--
            (1) the Secretary of the Interior, acting through the 
        United States Geological Survey, shall carry out a nationwide 
        assessment of sites contaminated with perchlorate and the 
        geological conditions at those sites; and
            (2) submit to Congress a report that describes the results 
        of the assessment.

SEC. 307. NATIONAL ESTUARY PROGRAM.

    Section 320(i) of the Federal Water Pollution Control Act (33 
U.S.C. 1330(i)) is amended by striking ``$35,000,000 for each of fiscal 
years 2001 through 2005'' and inserting ``$35,000,000 for each of 
fiscal years 2005 through 2010''.

SEC. 308. SEWAGE CONTROL TECHNOLOGY GRANT PROGRAM.

    The Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) is 
amended by adding at the end the following:

                       ``TITLE VII--MISCELLANEOUS

``SEC. 701. SEWAGE CONTROL TECHNOLOGY GRANT PROGRAM.

    ``(a) Definition of Eligible Facility.--In this section, the term 
`eligible facility' means a municipal wastewater treatment plant that--
            ``(1) as of the date of enactment of this title, has a 
        permitted design capacity to treat an annual average of at 
        least 500,000 gallons of wastewater per day; and
            ``(2) is located within the Chesapeake Bay watershed in any 
        of the States of Delaware, Maryland, New York, Pennsylvania, 
        Virginia, or West Virginia or in the District of Columbia.
    ``(b) Grant Program.--
            ``(1) Establishment.--Not later than 1 year after the date 
        of enactment of this title, the Administrator shall establish a 
        program within the Environmental Protection Agency to provide 
        grants to States and municipalities to upgrade eligible 
        facilities with nutrient removal technologies.
            ``(2) Priority.--In providing a grant under paragraph (1), 
        the Administrator shall--
                    ``(A) consult with the Chesapeake Bay Program 
                Office;
                    ``(B) give priority to eligible facilities at which 
                nutrient removal upgrades would--
                            ``(i) produce the greatest nutrient load 
                        reductions at points of discharge; or
                            ``(ii) result in the greatest environmental 
                        benefits to local bodies of water surrounding, 
                        and the main stem of, the Chesapeake Bay; and
                    ``(C) take into consideration the geographic 
                distribution of the grants.
            ``(3) Application.--
                    ``(A) In general.--On receipt of an application 
                from a State or municipality for a grant under this 
                section, if the Administrator approves the request, the 
                Administrator shall transfer to the State or 
                municipality the amount of assistance requested.
                    ``(B) Form.--An application submitted by a State or 
                municipality under subparagraph (A) shall be in such 
                form and shall include such information as the 
                Administrator may prescribe.
            ``(4) Use of funds.--A State or municipality that receives 
        a grant under this section shall use the grant to upgrade 
        eligible facilities with nutrient removal technologies that are 
        designed to reduce total nitrogen in discharged wastewater to 
        an average annual concentration of 4 milligrams per liter.
            ``(5) Cost sharing.--
                    ``(A) Federal share.--The Federal share of the cost 
                of upgrading any eligible facility described in 
                paragraph (1) using funds provided under this section 
                shall not exceed 55 percent.
                    ``(B) Non-federal share.--The non-Federal share of 
                the costs of upgrading any eligible facility described 
                in paragraph (1) using funds provided under this 
                section may be provided in the form of funds made 
                available to a State or municipality under--
                            ``(i) any provision of this Act other than 
                        this section (including funds made available 
                        from a State revolving fund established under 
                        title VI); or
                            ``(ii) any other Federal or State law.
    ``(c) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        to carry out this section $100,000,000 for each of fiscal years 
        2005 through 2009, to remain available until expended.
            ``(2) Administrative costs.--The Administrator may use not 
        to exceed 4 percent of any amount made available under 
        paragraph (1) for a fiscal year to pay administrative costs 
        incurred in carrying out this section.''.

SEC. 309. SPECIAL WATER RESOURCES STUDY.

    (a) Homeland Security.--Section 101 of the Water Resources Planning 
Act (42 U.S.C. 1962a) is amended in the first sentence by inserting 
``the Secretary of Homeland Security,'' after ``the Secretary of 
Agriculture,''.
    (b) Water Resources Study.--Section 102 of the Water Resources 
Planning Act (42 U.S.C. 1962a-1) is amended--
            (1) by redesignating subsections (a) and (b) as paragraphs 
        (1) and (2), respectively;
            (2) by     striking   ``Sec. 102. The Council shall--'' and 
        inserting the following:

``SEC. 102. DUTIES OF COUNCIL.

    ``(a) In General.--The Council shall--'';
            (3) in subsection (a) (as amended by paragraphs (1) and 
        (2))--
                    (A) in paragraph (1), by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) carry out a special water resources study in 
        accordance with subsection (b).''; and
            (4) by adding at the end the following:
    ``(b) Special Water Resources Study.--
            ``(1) In general.--The Council shall carry out a special 
        water resources study to--
                    ``(A) use existing water assessments and conduct 
                such additional assessments as are necessary to project 
                future water supply and demand;
                    ``(B) study water management programs used by the 
                Federal Government, State and local governments, and 
                private entities to increase water supplies and improve 
                the availability, reliability, and quality of 
                freshwater resources;
                    ``(C) consult with agencies and entities to develop 
                recommendations consistent with laws (including 
                treaties, decrees, and compacts) for a comprehensive 
                water strategy that--
                            ``(i) respects the primary role of States 
                        in regulating water rights and uses;
                            ``(ii) identifies incentives to ensure an 
                        adequate and dependable supply of water through 
                        the year 2054;
                            ``(iii) suggests strategies to avoid 
                        increased mandates on State and local 
                        governments;
                            ``(iv) eliminates duplication and conflict 
                        among Federal programs;
                            ``(v) considers all available technologies 
                        and methods to optimize water supply 
                        reliability, availability, and quality, while 
                        safeguarding the environment;
                            ``(vi) recommends means of capturing excess 
                        water and flood water for conservation and use 
                        in a drought;
                            ``(vii) suggests financing options for--
                                    ``(I) water supply and water 
                                management projects; and
                                    ``(II) appropriate public works 
                                projects;
                            ``(viii) suggests strategies to conserve 
                        existing water supplies, including 
                        recommendations for repairing aging 
                        infrastructure; and
                            ``(ix) includes other objectives relating 
                        to the effective management of the water supply 
                        to ensure reliability, availability, and 
                        quality;
                    ``(D) evaluate Federal water programs in existence 
                on the date of enactment of this paragraph and submit 
                to Congress and the President recommendations on--
                            ``(i) means of eliminating discrepancies 
                        between the goals of the programs and actual 
                        service delivery;
                            ``(ii) duplication among programs; and
                            ``(iii) any other circumstances that 
                        interfere with the effective operation of the 
                        programs;
                    ``(E) based on a review of water plans, develop and 
                make available to the public water planning models to 
                reduce water resource conflicts; and
                    ``(F) develop and coordinate public awareness 
                activities to provide the public with access to 
                understandable informational material, including, at a 
                minimum--
                            ``(i) descriptions of the value and 
                        benefits of land stewardship to reduce the 
                        impact of water shortages; and
                            ``(ii) clear instructions for appropriate 
                        responses to water supply shortages, 
                        including--
                                    ``(I) water conservation;
                                    ``(II) water reuse; and
                                    ``(III) detection and elimination 
                                of water leaks.
            ``(2) Consultation.--In carrying out this subsection, the 
        Council shall consult with interested groups, including groups 
        that represent--
                    ``(A) agricultural production, wildlife, and 
                fishery interests;
                    ``(B) forestry and fire management interests;
                    ``(C) rural and urban water associations;
                    ``(D) environmental interests;
                    ``(E) engineering and construction interests;
                    ``(F) the portion of the scientific community that 
                is concerned with climatology and hydrology;
                    ``(G) resource-dependent businesses and other 
                private entities (including the recreation and tourism 
                industries); and
                    ``(H) any other group, organization, or entity that 
                the Council considers necessary to advance the work of 
                the Council.
            ``(3) Reports.--
                    ``(A) Interim reports.--Not later than 180 days 
                after the first meeting of the Council following the 
                date of enactment of this paragraph, and every 180 days 
                thereafter, the Council shall submit to the President, 
                the Committee on Energy and Natural Resources and the 
                Committee on the Environment and Public Works of the 
                Senate, and the Committee on Resources, the Committee 
                on Transportation and Infrastructure, and the Committee 
                on Energy and Commerce of the House of Representatives 
                an interim report that describes the progress made by 
                the Council in carrying out this subsection.
                    ``(B) Final report.--As soon as practicable, but 
                not later than 3 years, after the date of the first 
                meeting of the Council referred to in subparagraph (A), 
                the Council shall submit to the President and the 
                Committees referred to in subparagraph (A) a final 
                report that includes--
                            ``(i) a detailed statement of the findings 
                        and conclusions of the Council; and
                            ``(ii) recommendations for legislation and 
                        other policies to implement those findings and 
                        conclusions, including--
                                    ``(I) a list of recommendations 
                                that can be implemented immediately in 
                                accordance with existing law; and
                                    ``(II) a list of recommendations 
                                that require statutory changes prior to 
                                implementation.''.
    (c) Authorization of Appropriations.--Section 401 of the Water 
Resources Planning Act (42 U.S.C. 1962d) is amended--
            (1) in the matter preceding subsection (a), by striking 
        ``Council:'' and inserting ``Council each of the following 
        amounts:'';
            (2) by redesignating subsections (a) through (c) as 
        paragraphs (1) through (3), respectively;
            (3) in paragraph (1) (as redesignated by paragraph (2))--
                    (A) by striking ``subsection (c) below:'' and 
                inserting ``paragraph (3):''; and
                    (B) by striking the semicolon at the end and 
                inserting a period;
            (4) in paragraph (2) (as redesignated by paragraph (2))--
                    (A) by striking ``the sum'' and inserting ``The 
                sum''; and
                    (B) by striking ``subsection (c) below;'' and 
                inserting ``paragraph (3).''; and
            (5) by adding after paragraph (3) (as redesignated by 
        paragraph (2)) the following:
            ``(4) The sum of $9,000,000 for fiscal year 2005 to be used 
        to carry out the special water resources study under section 
        102(b), to remain available until expended.''.
                                                       Calendar No. 772

108th CONGRESS

  2d Session

                                S. 2550

                          [Report No. 108-386]

_______________________________________________________________________

                                 A BILL

To amend the Federal Water Pollution Control Act and the Safe Drinking 
Water Act to improve water and wastewater infrastructure in the United 
                                States.

_______________________________________________________________________

                            October 7, 2004

                       Reported with an amendment