[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4560 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4560

     To amend the Federal Water Pollution Control Act to authorize 
 appropriations for State water pollution control revolving funds, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 15, 2005

  Mr. Duncan introduced the following bill; which was referred to the 
Committee on Transportation and Infrastructure, and in addition to the 
  Committees on Resources and Budget, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
     To amend the Federal Water Pollution Control Act to authorize 
 appropriations for State water pollution control revolving funds, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) In General.--This Act may be cited as the ``Clean Water Trust 
Act of 2005''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Purpose.
Sec. 3. Amendment of Federal Water Pollution Control Act.
              TITLE I--TECHNICAL AND MANAGEMENT ASSISTANCE

Sec. 101. Technical assistance.
Sec. 102. National Center for Utility Management.
Sec. 103. State management assistance.
Sec. 104. Watershed pilot projects.
Sec. 105. Critical regional waters.
               TITLE II--CONSTRUCTION OF TREATMENT WORKS

Sec. 201. Sewage collection systems.
Sec. 202. Treatment works defined.
Sec. 203. Policy on cost effectiveness.
Sec. 204. Pilot program for alternative water source projects.
Sec. 205. Sewer overflow control grants.
        TITLE III--STATE WATER POLLUTION CONTROL REVOLVING FUNDS

Sec. 301. General authority for capitalization grants.
Sec. 302. Capitalization grant agreements.
Sec. 303. Water pollution control revolving loan funds.
Sec. 304. Allotment of funds.
Sec. 305. Intended use plan.
Sec. 306. Federal oversight.
Sec. 307. Technical assistance.
Sec. 308. High priority partnership grants.
Sec. 309. Authorization of appropriations from the Clean Water Trust 
                            Fund.
                    TITLE IV--CLEAN WATER TRUST FUND

Sec. 401. Establishment of Clean Water Trust Fund.
                           TITLE V--FISHERIES

Sec. 501. Fisheries habitat protection, restoration, and enhancement 
                            grants.
Sec. 502. State wetlands restoration grants.
                      TITLE VI--GENERAL PROVISIONS

Sec. 601. Definition of treatment works.
Sec. 602. Funding for Indian programs.
Sec. 603. Private property not affected.

SEC. 2. PURPOSE.

    The purpose of this Act is to make further progress towards the 
achievement of the Nation's water quality goals by establishing and 
providing funding for a clean water trust fund, which will provide for 
increased investment in critical water infrastructure, improvements in 
technology and management, greater funding for critical regional 
programs, and increased attention to fishable uses.

SEC. 3. AMENDMENT OF FEDERAL WATER POLLUTION CONTROL ACT.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Federal Water Pollution 
Control Act (33 U.S.C. 1251 et seq.).

              TITLE I--TECHNICAL AND MANAGEMENT ASSISTANCE

SEC. 101. TECHNICAL ASSISTANCE.

    (a) Technical Assistance for Rural and Small Treatment Works.--
Section 104(b) (33 U.S.C. 1254(b)) is amended--
            (1) by striking ``and'' at the end of paragraph (6);
            (2) by striking the period at the end of paragraph (7) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(8) make grants to nonprofit organizations--
                    ``(A) to provide technical assistance to rural and 
                small municipalities for the purpose of assisting, in 
                consultation with the State in which the assistance is 
                provided, such municipalities in the planning, 
                developing, and acquisition of financing for wastewater 
                infrastructure assistance;
                    ``(B) to capitalize revolving loan funds for the 
                purpose of providing loans, in consultation with the 
                State in which the assistance is provided, to rural and 
                small municipalities for predevelopment costs 
                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, subject to 
                the conditions that any loan from the fund will be made 
                at a below market interest rate, for a term not to 
                exceed 10 years, and in an amount not to exceed 
                $100,000 and that all loan repayments will be 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 
                such treatment works and systems to protect water 
                quality and achieve and maintain compliance with the 
                requirements of this Act; and
                    ``(D) to disseminate information to rural and small 
                municipalities and municipalities that meet the 
                affordability criteria established under section 603(i) 
                by the State in which the municipality is located with 
                respect to planning, design, construction, and 
                operation of publicly owned treatment works and 
                decentralized wastewater treatment systems.''.
    (b) Authorization of Appropriations.--Section 104(u) (33 U.S.C. 
1254(u)) is amended--
            (1) by striking ``and (6)'' and inserting ``(6)''; and
            (2) by inserting before the period at the end the 
        following: ``; (7) not to exceed $50,000,000 from the Clean 
        Water Trust Fund established by section 701 for each of fiscal 
        years 2006 through 2010 for carrying out subsection (b)(8), 
        except that not more than one-third of such amount may be used 
        in a fiscal year for carrying out subsection (b)(8)(B); and (8) 
        not to exceed $295,000,000 from the Clean Water Trust Fund for 
        each of fiscal years 2006 through 2010 for carrying out 
        subsection (b)(3).''.
    (c) Competitive Procedures for Awarding Grants.--Section 104 (33 
U.S.C. 1254(b)) is amended by adding at the end the following:
    ``(w) Competitive Procedures for Awarding Grants.--The 
Administrator shall establish procedures that, to the maximum extent 
practicable, promote competition and openness in the award of grants to 
nonprofit private agencies, institutions, and organizations under this 
section.''.

SEC. 102. NATIONAL CENTER FOR UTILITY MANAGEMENT.

    Section 104 (33 U.S.C. 1254) is further amended by adding at the 
end the following:
    ``(x) Establishment of a National Center for Utility Management.--
            ``(1) Grant.--The Administrator may make a grant to an 
        appropriate nonprofit organization to establish a National 
        Center for Utility Management for the purpose of promoting 
        improved management of public wastewater utilities, including 
        the use of best management practices with respect to 
        comprehensive asset management, worker training and 
        flexibility, information systems, financial planning, and 
        financial reporting.
            ``(2) Functions.--The functions of the National Center for 
        Utility Management shall include, at a minimum, the following:
                    ``(A) Developing best practices for utility 
                management.
                    ``(B) Coordinating relevant studies and development 
                activities conducted at university-based training and 
                technical assistance centers.
                    ``(C) Coordinating ongoing and planned initiatives 
                to promote best practices for utility management within 
                and across the wastewater program.
                    ``(D) Exploring opportunities to take advantage of 
                best management practices and informational materials 
                developed by other agencies (including the Office of 
                Asset Management in the Federal Highway 
                Administration).
                    ``(E) Strengthening efforts to educate utilities 
                and local government leaders about the optimal use of 
                best practices for utility management, through 
                handbooks, software, workshops, the establishment of a 
                website, and other steps to assure that wastewater 
                utilities, regardless of size, have easy access to 
                information about best practices for utility 
                management.
                    ``(F) In undertaking these functions, providing 
                appropriate attention to the needs and circumstances of 
                utilities that serve not more than 20,000 users and are 
                located in a rural area.
            ``(4) Authorization of appropriations.--There is authorized 
        to be appropriated from the Clean Water Trust Fund established 
        by section 701 $5,000,000 for each of fiscal years 2006 through 
        2010 to carry out this subsection.''.

SEC. 103. STATE MANAGEMENT ASSISTANCE.

    Section 106(a) (33 U.S.C. 1256(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (1); and
            (2) by inserting after paragraph (2) the following:
            ``(3) such sums as may be necessary for each of fiscal 
        years 1991 through 2005; and
            ``(4) $250,000,000 from the Clean Water Trust Fund 
        established by section 701 for each of fiscal years 2006 
        through 2010.''.

SEC. 104. WATERSHED PILOT PROJECTS.

    (a) Section Redesignation.--The second section 121 (33 U.S.C. 1274) 
relating to watershed pilot projects is redesignated as section 122.
    (b) Pilot Projects.--Section 122 (as so redesignated) is amended--
            (1) in the section heading by striking ``wet weather'';
            (2) in the matter preceding paragraph (1) of subsection (a) 
        by striking ``wet weather discharge'';
            (3) in subsection (a) by inserting ``, including low-impact 
        development technologies'' before the period at the end; and
            (4) by adding at the end of subsection (a) the following:
            ``(3) Watershed partnerships.--Efforts of municipalities 
        and property owners to demonstrate cooperative ways to address 
        nonpoint sources of pollution to reduce adverse impacts on 
        water quality.''.
    (c) Authorization of Appropriations.--Section 122(c)(1) (as so 
redesignated) is amended by inserting after ``for fiscal year 2004'' 
the following: ``and from the Clean Water Trust Fund established by 
section 701 $20,000,000 for each of fiscal years 2006 through 2010''.
    (d) Report to Congress.--Section 122(d) (as so redesignated) is 
amended by striking ``5 years'' and inserting ``7 years''.

SEC. 105. CRITICAL REGIONAL WATERS.

    (a) Critical Regional Waters.--Title I (33 U.S.C. 1251-1274) is 
amended by adding at the end the following:

`SEC. 123. CRITICAL REGIONAL WATERS.

    `(a) Generally.--In addition to amounts otherwise authorized to be 
appropriated, there is authorized to be appropriated from the Clean 
Water Trust Fund established by section 701 $250,000,000 for each of 
fiscal years 2006 through 2010 for the following:
            `(1) Implementing section 117, relating to the Chesapeake 
        Bay.
            `(2) Implementing section 118, relating to the Great Lakes.
            `(3) Implementing section 119, relating to the Long Island 
        Sound.
            `(4) Implementing section 120, relating to Lake Champlain.
            `(5) Implementing section 121, relating to Lake 
        Pontchartrain.
            `(6) Implementing section 320, relating to estuaries of 
        national significance.
            `(7) Making grants to States to protect and improve water 
        quality of waters in the Gulf of Mexico impaired by hypoxia.
    `(b) Limitations.--
            `(1) Maximum amount of grant.--The maximum amount of a 
        grant for a project or activity under subsection (a)(7) may not 
        exceed 65 percent of the cost of the project or activity, as 
        determined by the Administrator.
            `(2) Administrative expenses.--Not more than 4 percent of 
        the amount of any grant made subsection (a)(7) may be used to 
        pay administrative expenses in connection with the project or 
        activity for which the grant is made.'.

              ``TITLE II--CONSTRUCTION OF TREATMENT WORKS

``SEC. 201. SEWAGE COLLECTION SYSTEMS.

    ``Section 211 (33 U.S.C. 1291) is amended--
            ``(1) by striking the section designation and all that 
        follows through `(a) No' and inserting the following:

`SEC. 211. SEWAGE COLLECTION SYSTEMS.

    `(a) In General.--No';
            ``(2) in subsection (b) by inserting `population density.--
        ' after `(b)'; and
            ``(3) by striking subsection (c) and inserting the 
        following:
    `(c) Exceptions.--
            `(1) Replacement and major rehabilitation.--Notwithstanding 
        the requirement of subsection (a)(1) concerning the existence 
        of a collection system as a condition of eligibility, a project 
        for replacement or major rehabilitation of a collection system 
        existing on January 1, 2006, shall be eligible for a grant 
        under this title if the project otherwise meets the 
        requirements of subsection (a)(1) and meets the requirement of 
        paragraph (3).
            `(2) New systems.--Notwithstanding the requirement of 
        subsection (a)(2) concerning the existence of a community as a 
        condition of eligibility, a project for a new collection system 
        to serve a community existing on January 1, 2006, shall be 
        eligible for a grant under this title if the project otherwise 
        meets the requirements of subsection (a)(2) and meets the 
        requirement of paragraph (3).
            `(3) Requirement.--A project meets the requirement of this 
        paragraph if the purpose of the project is to accomplish the 
        objectives, goals, and policies of this Act by addressing an 
        adverse environmental condition existing on the date of 
        enactment of this paragraph.'.

``SEC. 202. TREATMENT WORKS DEFINED.

    ``Section 212(2)(A) (33 U.S.C. 1292(2)(A)) is amended--
            ``(1) by striking `any works, including site';
            ``(2) by striking `is used for ultimate' and inserting 
        `will be used for ultimate'; and
            ``(3) by inserting before the period at the end the 
        following: `and acquisition of other lands, and interests in 
        lands, which are necessary for construction'.

``SEC. 203. POLICY ON COST EFFECTIVENESS.

    ``Section 218(a) (33 U.S.C. 1298(a)) is amended by striking 
`combination of devices and systems' and all that follows through `from 
such treatment;' and inserting `treatment works;'.

``SEC. 204. PILOT PROGRAM FOR ALTERNATIVE WATER SOURCE PROJECTS.

    ``Section 220(j) (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 `from the Clean Water Trust Fund 
established by section 701 $125,000,000'.

``SEC. 205. SEWER OVERFLOW CONTROL GRANTS.

    ``(a) Administrative Requirements.--Section 221(e) (33 U.S.C. 
1301(e)) is amended to read as follows:
    `(e) Administrative Requirements.--A project that receives 
assistance under this section shall be carried out subject to the same 
requirements as a project that receives assistance from a State water 
pollution control revolving fund under title VI, except to the extent 
that the Governor of the State in which the project is located 
determines that a requirement of title VI is inconsistent with the 
purposes of this section.'.
    ``(b) Authorization of Appropriations.--The first sentence of 
section 221(f) (33 U.S.C. 1301(f)) is amended by striking 
`$750,000,000' and all that follows before the period and inserting 
`from the Clean Water Trust Fund established by section 701 
$250,000,000 for each of fiscal years 2006 through 2010'.
    ``(c) Allocation of Funds.--Section 221(g) (33 U.S.C. 1301(g)) is 
amended to read as follows:
    `(g) Allocation of Funds.--
            `(1) Fiscal year 2006.--Subject to subsection (h), the 
        Administrator shall use the amounts appropriated to carry out 
        this section for fiscal year 2006 for making grants to 
        municipalities and municipal entities under subsection (a)(2) 
        in accordance with the criteria set forth in subsection (b).
            `(2) Fiscal year 2007 and thereafter.--Subject to 
        subsection (h), the Administrator shall use the amounts 
        appropriated to carry out this section for fiscal year 2007 and 
        each fiscal year thereafter for making grants to States under 
        subsection (a)(1) in accordance with a formula to be 
        established by the Administrator, after providing notice and an 
        opportunity for public comment, that allocates to each State a 
        proportional share of such amounts based on the total needs of 
        the State for municipal combined sewer overflow controls and 
        sanitary sewer overflow controls identified in the most recent 
        survey conducted pursuant to section 516.'.
    ``(d) Reports.--The first sentence of section 221(i) (33 U.S.C. 
1301(i)) is amended by striking `2003' and inserting `2008'.

       ``TITLE III--STATE WATER POLLUTION CONTROL REVOLVING FUNDS

``SEC. 301. GENERAL AUTHORITY FOR CAPITALIZATION GRANTS.

    ``Section 601(a) (33 U.S.C. 1381(a)) is amended by striking `for 
providing assistance' and all that follows through the period at the 
end and inserting the following: `to accomplish the objectives, goals, 
and policies of this Act by providing assistance for projects and 
activities identified in section 603(c).'.

``SEC. 302. CAPITALIZATION GRANT AGREEMENTS.

    ``(a) Reporting Infrastructure Assets.--Section 602(b)(9) (33 
U.S.C. 1382(b)(9)) is amended by striking `standards' and inserting 
`standards, including standards relating to the reporting of 
infrastructure assets'.
    ``(b) Additional Requirements.--Section 602(b) (33 U.S.C. 1382(b)) 
is amended--
            ``(1) by striking `and' at the end of paragraph (9);
            ``(2) by striking the period at the end of paragraph (10) 
        and inserting a semicolon; and
            ``(3) by adding at the end the following:
            `(11) the State will establish, maintain, invest, and 
        credit the fund with any repayments, such that the fund balance 
        will be available in perpetuity for providing financial 
        assistance in accordance with this title;
            `(12) any fees charged by the State to recipients of 
        assistance will be used for the purpose of financing the cost 
        of administering the fund or financing activities eligible for 
        assistance from the fund;
            `(13) beginning in fiscal year 2008, the State will include 
        as a condition of providing assistance to a municipality or 
        intermunicipal, interstate, or State agency that the recipient 
        of such assistance certify, in a manner determined by the 
        Governor of the State, that the recipient--
                    `(A) has studied and evaluated the cost and 
                effectiveness of innovative and alternative processes, 
                materials, and techniques for carrying out the proposed 
                project or activity for which assistance is sought 
                under this title, and has selected, to the extent 
                practicable, a project or activity that more 
                efficiently uses energy and natural and financial 
                resources or provides greater environmental benefits; 
                and
                    `(B) has considered the cost and effectiveness of 
                alternative management and financing approaches 
                (including, as appropriate, rate structures, issuance 
                of bonds, restructuring, regional alternatives, 
                consolidation, and public-private partnerships) for 
                carrying out a project or activity for which assistance 
                is sought under this title, taking into account the 
                cost of operating and maintaining the project or 
                activity over its life, as well as the cost of 
                constructing the project or activity;
            `(14) the State will use at least 15 percent of the amount 
        of each capitalization grant received by the State under this 
        title after September 30, 2007, to provide assistance to 
        municipalities of fewer than 20,000 individuals that meet the 
        affordability criteria established by the State under section 
        603(i)(2) for activities included on the State's priority list 
        established under section 603(g), to the extent that there are 
        sufficient applications for such assistance;
            `(15) treatment works eligible under section 603(c)(1) that 
        will be constructed in whole or in part with funds directly 
        made available by capitalization grants under this title and 
        section 205(m) will meet the requirements of, or otherwise be 
        treated (as determined by the Governor of the State) under 
        sections 204(b)(1), 211, 218, and 511(c)(1) in the same manner 
        as treatment works constructed with assistance under title II 
        of this Act; and
            `(16) contracts and subcontracts to be carried out using 
        funds under this title for program management, construction 
        management, planning studies, feasibility studies, 
        architectural services, preliminary engineering, design, 
        engineering, surveying, mapping, and related services shall be 
        awarded in the same manner as contracts for architectural and 
        engineering services are awarded under chapter 11 of title 40, 
        United States Code, or an equivalent qualifications-based 
        method of selection (as determined by the Governor of the 
        State).'.

``SEC. 303. WATER POLLUTION CONTROL REVOLVING LOAN FUNDS.

    ``(a) Projects and Activities Eligible for Assistance.--Section 
603(c) (33 U.S.C. 1383(c)) is amended to read as follows:
    `(c) Projects and Activities Eligible for Assistance.--The amounts 
of funds available to each State water pollution control revolving fund 
shall be used only for providing financial assistance--
            `(1) to any municipality or intermunicipal, interstate, or 
        State agency for construction of publicly owned treatment 
        works;
            `(2) for the implementation of a management program 
        established under section 319;
            `(3) for development and implementation of a conservation 
        and management plan under section 320;
            `(4) for the implementation of lake protection programs and 
        projects under section 314;
            `(5) for repair or replacement of decentralized wastewater 
        treatment systems that treat domestic sewage;
            `(6) for measures to manage or reduce municipal stormwater 
        runoff;
            `(7) to any public entity for a water conservation project 
        or activity the primary purpose of which is the protection, 
        preservation, or enhancement of water quality, including--
                    `(A) piping or lining an irrigation canal;
                    `(B) recovery or recycling of wastewater or runoff 
                from irrigation;
                    `(C) irrigation scheduling;
                    `(D) measurement or metering of water use;
                    `(E) installation of water conservation measures by 
                public utilities;
                    `(F) improving on-field irrigation efficiency; or
                    `(G) measures to enable customers to make more 
                efficient use of treated water.
            `(8) for measures to increase the security of publicly 
        owned treatment works; and
            `(9) for the development and implementation of watershed 
        projects meeting the criteria set forth in section 122.'.
    ``(b) Extended Repayment Period.--Section 603(d)(1) (33 U.S.C. 
1383(d)(1)) is amended--
            ``(1) in subparagraph (A) by striking `20 years' and 
        inserting `the lesser of 30 years or the design life of the 
        project to be financed with the proceeds of the loan'; and
            ``(2) in subparagraph (B) by striking `not later than 20 
        years after project completion' and inserting `upon the 
        expiration of the term of the loan'.
    ``(c) Fiscal Sustainability Plan.--Section 603(d)(1) (33 U.S.C. 
1383(d)(1)) is further amended--
            ``(1) by striking `and' at the end of subparagraph (C);
            ``(2) by inserting `and' at the end of subparagraph (D); 
        and
            ``(3) by adding at the end the following:
                    `(E) for any portion of a treatment works proposed 
                for repair, replacement, or expansion, and eligible for 
                assistance under section 603(c)(1), the recipient of 
                assistance will develop and implement a fiscal 
                sustainability plan that includes--
                            `(i) an inventory of critical assets that 
                        are a part of that portion of the treatment 
                        works;
                            `(ii) an evaluation of the condition and 
                        performance of inventoried assets or asset 
                        groupings; and
                            `(iii) a plan for maintaining, repairing, 
                        and, as necessary, replacing that portion of 
                        the treatment works and a plan for funding such 
                        activities.'.
    ``(d) Expenses of Administering the State Fund.--Section 603(d)(7) 
(33 U.S.C. 1383(d)(7)) is amended by inserting before the period at the 
end the following: `, $400,000 per year, or \1/5\ percent per year of 
the current valuation of the fund, whichever amount is greatest, plus 
the amount of any fees collected by the State for such purpose 
regardless of the source'.
    ``(e) Types of Assistance.--Section 603(d) (33 U.S.C. 1383(d)) is 
amended--
            ``(1) by striking `and' at the end of paragraph (6);
            ``(2) by striking the period at the end of paragraph (7) 
        and inserting a semicolon; and
            ``(3) by adding at the end the following:
            `(8) to provide owners and operators of treatment works 
        that serve a population of 20,000 or fewer with technical and 
        planning assistance and assistance in financial management, 
        user fee analysis, budgeting, capital improvement planning, 
        facility operation and maintenance, repair schedules, and other 
        activities to improve wastewater treatment plant management and 
        operations; except that such amounts shall not exceed 2 percent 
        of grant awards to such fund under this title; and
            `(9) to make grants to States for high priority partnership 
        projects under section 608 on the condition that the 
        requirements of paragraph (1)(E) are met in the case of any 
        grant by a State for the repair, replacement, or expansion of a 
        treatment works.'.
    ``(f) Affordability Criteria.--Section 603 (33 U.S.C. 1383) is 
amended by adding at the end the following:
    `(i) Affordability Criteria.--
            `(1) Establishment.--On or before September 30, 2007, and 
        after providing notice and an opportunity for public comment, a 
        State shall establish affordability criteria to assist in 
        identifying municipalities that would experience a significant 
        hardship raising the revenue necessary to finance a project or 
        activity eligible for assistance under section 603(c)(1) if 
        additional subsidization is not provided. Such criteria shall 
        be based on income data, population trends, and other data 
        determined relevant by the State.
            `(2) Existing criteria.--If a State has previously 
        established, after providing notice and an opportunity for 
        public comment, affordability criteria that meet the 
        requirements of paragraph (1), the State may use the criteria 
        for the purposes of this subsection. For purposes of this Act, 
        any such criteria shall be treated as affordability criteria 
        established under this paragraph.
            `(3) Information to assist states.--The Administrator may 
        publish information to assist States in establishing 
        affordability criteria under paragraph (1).
            `(4) Priority.--A State may give priority to a recipient 
        for a project or activity eligible for funding under section 
        603(c)(1) if the recipient meets the State's affordability 
        criteria.'.

``SEC. 304. ALLOTMENT OF FUNDS.

    ``(a) In General.--Section 604(a) (33 U.S.C. 1384(a)) is amended to 
read as follows:
    `(a) Allotments.--
            `(1) Fiscal years 2006 and 2007.--Sums appropriated to 
        carry out this title for each of fiscal years 2006 and 2007 
        shall be allotted by the Administrator in accordance with the 
        formula used to allot sums appropriated to carry out this title 
        for fiscal year 2005.
            `(2) Fiscal year 2008 and thereafter.--Sums appropriated to 
        carry out this title for fiscal year 2008 and each fiscal year 
        thereafter shall be allotted by the Administrator as follows:
                    `(A) Amounts that do not exceed $1,350,000,000 
                shall be allotted in accordance with the formula 
                described in paragraph (1).
                    `(B) Amounts that exceed $1,350,000,000 shall be 
                allotted in accordance with the formula developed by 
                the Administrator under subsection (d).'.
    ``(b) Planning Assistance.--Section 604(b) (33 U.S.C. 1384(b)) is 
amended by striking `1 percent' and inserting `2 percent'.
    ``(c) Formula.--Section 604 (33 U.S.C. 1384) is amended by adding 
at the end the following:
    `(d) Formula Based on Water Quality Needs.--Not later than 
September 30, 2007, and after providing notice and an opportunity for 
public comment, the Administrator shall publish an allotment formula 
based on water quality needs in accordance with the most recent survey 
of needs developed by the Administrator under section 516(b).'.

``SEC. 305. INTENDED USE PLAN.

    ``(a) Integrated Priority List.--Section 603(g) (33 U.S.C. 1383(g)) 
is amended to read as follows:
    `(g) Priority List.--
            `(1) In general.--For fiscal year 2008 and each fiscal year 
        thereafter, a State shall establish or update a list of 
        projects and activities for which assistance is sought from the 
        State's water pollution control revolving fund. Such projects 
        and activities shall be listed in priority order based on the 
        methodology established under paragraph (2). The State may 
        provide financial assistance from the State's water pollution 
        control revolving fund only with respect to a project or 
        activity included on such list. In the case of projects and 
        activities eligible for assistance under section 603(c)(2), the 
        State may include a category or subcategory of nonpoint sources 
        of pollution on such list in lieu of a specific project or 
        activity.
            `(2) Methodology.--
                    `(A) In general.--Not later than 1 year after the 
                date of enactment of this paragraph, and after 
                providing notice and opportunity for public comment, 
                each State (acting through the State's water quality 
                management agency and other appropriate agencies of the 
                State) shall establish a methodology for developing a 
                priority list under paragraph (1).
                    `(B) Priority for projects and activities that 
                achieve greatest water quality improvement.--In 
                developing the methodology, the State shall seek to 
                achieve the greatest degree of water quality 
                improvement, taking into consideration the requirement 
                of section 602(b)(5), section 603(i), and whether such 
                water quality improvements would be realized without 
                assistance under this title.
                    `(C) Considerations in selecting projects and 
                activities.--In determining which projects and 
                activities will achieve the greatest degree of water 
                quality improvement, the State shall consider--
                            `(i) information developed by the State 
                        under sections 303(d) and 305(b);
                            `(ii) the State's continuing planning 
                        process developed under section 303(e);
                            `(iii) the State's management program 
                        developed under section 319; and
                            `(iv) conservation and management plans 
                        developed under section 320.
                    `(D) Nonpoint sources.--For categories or 
                subcategories of nonpoint sources of pollution that a 
                State may include on its priority list under paragraph 
                (1), the State may consider the cumulative water 
                quality improvements associated with projects or 
                activities in such categories or subcategories.
                    `(E) Existing methodologies.--If a State has 
                previously developed, after providing notice and an 
                opportunity for public comment, a methodology that 
                meets the requirements of this paragraph, the State may 
                use the methodology for the purposes of this 
                subsection.'.
    ``(b) Intended Use Plan.--Section 606(c) (33 U.S.C. 1386(c)) is 
amended--
            ``(1) in the matter preceding paragraph (1) by striking 
        `each State shall annually prepare' and inserting `each State 
        (acting through the State's water quality management agency and 
        other appropriate agencies of the State) shall annually prepare 
        and publish';
            ``(2) by striking paragraph (1) and inserting the 
        following:
            `(1) the State's priority list developed under section 
        603(g);';
            ``(3) by striking `and' at the end of paragraph (4);
            ``(4) by striking the period at the end of paragraph (5) 
        and inserting `; and'; and
            ``(5) by adding at the end the following:
            `(6) if the State does not fund projects and activities in 
        the order of the priority established under section 603(g), an 
        explanation of why such a change in order is appropriate.'.
    ``(c) Transitional Provision.--Before completion of a priority list 
based on a methodology established under section 603(g) of the Federal 
Water Pollution Control Act (as amended by this section), a State shall 
continue to comply with the requirements of sections 603(g) and 606(c) 
of such Act, as in effect on the day before the date of enactment of 
this Act.

``SEC. 306. FEDERAL OVERSIGHT.

    ``(a) Annual Report.--Section 606(d) (33 U.S.C. 1386(d)) is 
amended--
            ``(1) by inserting `or grant' after `loan' each place it 
        appears; and
            ``(2) by inserting `the eligible purpose under section 
        603(c) for which the assistance is provided,' after `loan 
        amounts,'.
    ``(b) Annual Federal Oversight Review.--Section 606(e) (33 U.S.C. 
1386(e)) is amended--
            ``(1) by inserting `or the recipient of a grant under 
        section 608' after `revolving fund'; and
            ``(2) by inserting `or grant' after `loan'; and
            ``(3) by adding at the end the following: `In carrying out 
        an oversight review under this subsection, the Administrator 
        may allow a State to certify, with supporting documentation, 
        its compliance with the requirements of this title.'.

``SEC. 307. TECHNICAL ASSISTANCE.

    ``Title VI (33 U.S.C. 1381 et seq.) is amended--
            ``(1) by redesignating section 607 as section 609; and
            ``(2) by inserting after section 606 the following:

`SEC. 607. TECHNICAL ASSISTANCE.

    `(a) Simplified Procedures.--Not later than 1 year after the date 
of enactment of this section, the Administrator shall assist the States 
in establishing simplified procedures for treatment works to obtain 
assistance under this title.
    `(b) Publication of Manual.--Not later than 2 years after the date 
of the enactment of this section, and after providing notice and 
opportunity for public comment, the Administrator shall publish a 
manual to assist treatment works in obtaining assistance under this 
title and publish in the Federal Register notice of the availability of 
the manual.
    `(c) Assistance for Improving the Management of Water Quality 
Infrastructure and Increasing Cost-Effectiveness of Infrastructure 
Improvements.--At the request of any State, the Administrator shall 
assist in the development of criteria for a State to determine 
compliance with the conditions of funding assistance established under 
section 602(b)(13).'.

``SEC. 308. HIGH PRIORITY PARTNERSHIP GRANTS.

    ``Title VI of the Federal Water Pollution Control Act (33 U.S.C. 
1381 et seq.) is further amended by inserting after section 607 (as 
inserted by section 307 of this Act) the following:

`SEC. 608. HIGH PRIORITY PARTNERSHIP GRANTS.

    `(a) Establishment of Program.--The Administrator is authorized to 
make grants to States for the purpose of providing grants to entities 
eligible for assistance under section 603(c) for projects and 
activities that are eligible under section 603(c) based on the 
selection criteria in subsection (b).
    `(b) Criteria.--In selecting from among applications for grants 
under this section, a State shall give priority, to the maximum extent 
practicable, to projects and activities that--
            `(1) address the most serious water pollution problems;
            `(2) are necessary to ensure compliance with the 
        requirements of this Act; or
            `(3) benefit communities with the greatest need (determined 
        on the basis of affordability criteria established by the State 
        under section 603(i)).
    `(c) Federal Share.--The amount of Federal funds granted by a State 
for a project or activity under this section may not exceed 65 percent 
of the cost of the project or activity.'.

``SEC. 309. AUTHORIZATION OF APPROPRIATIONS FROM THE CLEAN WATER TRUST 
              FUND.

    ``Title VI (33 U.S.C. 1381 et seq.) is further amended by adding at 
the end the following:

`SEC. 610. AUTHORIZATION OF APPROPRIATIONS FROM CLEAN WATER TRUST FUND.

    `There is authorized to be appropriated from the Clean Water Trust 
Fund established by section 701 $6,000,000,000 for grants to States 
under section 601(a) for each of fiscal years 2006 through 2010, of 
which the first $1,500,000,000 shall be available only for the purpose 
of providing assistance under paragraphs (1) through (8) of section 
603(d). The remainder of the amount made available under this section 
for a fiscal year shall be available for grants for high priority 
partnerships under section 608 for such fiscal year.'.

                   ``TITLE IV--CLEAN WATER TRUST FUND

``SEC. 401. ESTABLISHMENT OF CLEAN WATER TRUST FUND.

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

                   `TITLE VII--CLEAN WATER TRUST FUND

`SEC. 701. CLEAN WATER TRUST FUND.

    `(a) Establishment.--There is established in the Treasury of the 
United States a trust fund to be known as the ``Clean Water Trust 
Fund''.
    `(b) Transfers to the Trust Fund.--There are hereby appropriated to 
the Clean Water Trust Fund amounts equivalent to fees collected and 
deposited in the Fund under section 702.
    `(c) Expenditures From the Trust Fund.--Amounts in the Trust Fund 
are available, as provided by appropriations acts, for--
            `(1) water pollution reduction and control activities under 
        section 104(b)(3);
            `(2) the technical assistance for small rural communities 
        program under section 104(b)(8);
            `(3) the National Center for Utility Management program 
        under section 104(x);
            `(4) grants for State management assistance under section 
        106(a);
            `(5) carrying out section 122, relating to watershed pilot 
        projects;
            `(6) critical regional waters under section 123;
            `(7) carrying out section 220 relating to alternative water 
        source projects;
            `(8) carrying out section 221, relating to sewer overflow 
        control grants;
            `(9) grants to States under section 601;
            `(10) grants for fisheries habitat protection, restoration, 
        and enhancement under section 501 of the Clean Water Trust Act 
        of 2005; and
            `(11) grants for wetlands restoration under section 502 of 
        the Clean Water Trust Act of 2005.
    `(d) Budgetary Treatment of the Fund.--Notwithstanding any other 
provision of law, the receipts and disbursements of the Clean Water 
Trust Fund--
            `(1) shall not be counted as new budget authority, outlays, 
        receipts, or deficit or surplus for purposes of--
                    `(A) the budget of the United States submitted by 
                the President; or
                    `(B) the congressional budget (including 
                allocations of budget authority and outlays provided 
                therein); and
            `(2) shall be exempt from any general budget limitation 
        imposed by statute on expenditures and net lending (budget 
        outlays) of the United States Government.

`SEC. 702. REVENUE.

    `[The Administrator shall submit to Congress for consideration, 
within 180 days of enactment of this section, an equitable system of 
user fees to fund this title.]'.

                          ``TITLE V--FISHERIES

``SEC. 501. FISHERIES HABITAT PROTECTION, RESTORATION, AND ENHANCEMENT 
              GRANTS.

    ``(a) Grants.--The Administrator of the Environmental Protection 
Agency is authorized to make grants to any State (as defined in section 
502 of the Federal Water Pollution Control Act (33 U.S.C. 1362), 
municipality, intermunicipal or interstate agency, nonprofit 
organization, or institution of higher education for the purpose of 
assisting in the protection, preservation, and restoration of fresh 
water, estuarine, and marine fisheries habitat and uses and for the 
enhancement of access within a watershed for fisheries uses.
    ``(b) Watershed Plans.--Activities to be funded shall be based on a 
comprehensive assessment and plan for the watershed. All funded 
activities must directly support the described plan, and grant funds 
must be used in accordance with the plan.
    ``(c) Limitations.--
            ``(1) Maximum amount.--The maximum amount of a grant under 
        this section for any activity may not exceed 65 percent of the 
        cost of the activity, as determined by the Administrator.
            ``(2) Administrative expenses.--Not more than 4 percent of 
        the amount of any grant made under this section may be used to 
        pay administrative expenses in connection with the activity for 
        which the grant is made.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Administrator from the Clean Water Trust Fund 
$250,000,000 for each of fiscal years 2006 through 2010 to carry out 
this section.

``SEC. 502. STATE WETLANDS RESTORATION GRANTS.

    ``(a) Grants to States.--The Administrator of the Environmental 
Protection Agency is authorized to make grants of up to $2,000,000 to 
each State (as defined in section 502 of the Federal Water Pollution 
Control Act (33 U.S.C. 1362)) for fiscal years 2006 through 2010 to 
carry out this section.
    ``(b) Wetland Restoration Project Defined.--For the purposes of 
this section, a `wetland restoration project' means an activity to 
improve wetland functions, including the filtration of surface and 
ground water, the mitigation of flooding, and the enhancement of 
wildlife habitat.
    ``(c) Project Grants.--
            ``(1) Distribution of funds.--A State receiving a grant 
        under this section shall distribute funds received under the 
        grant for wetland restoration projects to appropriate State, 
        municipal, intermunicipal, and interstate agencies, nonprofit 
        organizations, and institutions of higher education that have 
        expertise in wetlands restoration.
            ``(2) Maximum amount.--The maximum amount of grants under 
        this section for any project may not exceed $500,000 in a 
        fiscal year and 65 percent of the cost of the project, as 
        determined by the Administrator.
    ``(d) Project Administration.--A State receiving a grant under this 
section may use up to 4 percent of the funds received under the grant 
for administrative expenses in carrying out this section.
    ``(e) Reporting.--Each State receiving a grant under this section 
shall provide annually to the Administrator a summary of the wetland 
restoration projects funded under this section.
    ``(f) Authorization.--There is authorized to be appropriated to the 
Administrator from the Clean Water Trust Fund $112,000,000 for each of 
fiscal years 2006 through 2010 to carry out this section.

                     ``TITLE VI--GENERAL PROVISIONS

``SEC. 601. DEFINITION OF TREATMENT WORKS.

    ``Section 502 (33 U.S.C. 1362) is amended by adding at the end the 
following:
            `(25) The term ``treatment works'' has the meaning given 
        that term in section 212.'.

``SEC. 602. FUNDING FOR INDIAN PROGRAMS.

    ``(a) Reservation of Funds.--Section 518(c) (33 U.S.C. 1377(c)) is 
amended--
            ``(1) by striking `The Administrator' and inserting the 
        following:
            `(1) Fiscal years 1987-2006.--The Administrator';
            ``(2) in paragraph (1) (as so designated)--
                    ``(A) by inserting `and ending before October 1, 
                2006,' after `1986,'; and
                    ``(B) by striking the second sentence; and
            ``(3) by adding at the end the following:
            `(2) Fiscal year 2007 and thereafter.--For fiscal year 2007 
        and each fiscal year thereafter, the Administrator shall 
        reserve, before allotments to the States under section 604(a), 
        not less than 0.5 percent and not more than 1.5 percent of the 
        funds made available to carry out title VI.
            `(3) Use of funds.--Funds reserved under this subsection 
        shall be available only for grants for projects and activities 
        eligible for assistance under section 603(c) to serve--
                    `(A) Indian tribes;
                    `(B) former Indian reservations in Oklahoma (as 
                determined by the Secretary of the Interior); and
                    `(C) Native villages (as defined in section 3 of 
                the Alaska Native Claims Settlement Act (43 U.S.C. 
                1602)).'.
    ``(b) Eligibility of Indian Tribes.--Section 518(e) of such Act (33 
U.S.C. 1377(e)) is amended by striking `and 406' and inserting `406, 
and 608'.

``SEC. 603. PRIVATE PROPERTY NOT AFFECTED.

    ``Nothing in this Act affects the rights of private property owners 
or may be construed to provide any Federal, State, or local entity with 
authority to restrict the use of, encumber, or take private property.
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