[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 720 Reported in House (RH)]






                                                  Union Calendar No. 11
110th CONGRESS
  1st Session
                                H. R. 720

                          [Report No. 110-30]

     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

                            January 30, 2007

   Mr. Oberstar (for himself, Mr. Young of Alaska, Ms. Eddie Bernice 
  Johnson of Texas, and Mrs. Tauscher) introduced the following bill; 
       which was referred to the Committee on Transportation and 
                             Infrastructure

                             March 5, 2007

 Additional sponsors: Mr. Saxton, Mr. Kagen, Mr. Costello, Ms. Matsui, 
 Mr. Mitchell, Mr. Nadler, Ms. Hirono, Mr. Faleomavaega, Mr. DeFazio, 
Mr. Cummings, Mr. Boucher, Mr. Gallegly, Mr. Arcuri, Mr. Carnahan, Mr. 
   Pascrell, Mr. Dingell, Mr. Hall of New York, Mr. Abercrombie, Mr. 
    Weller of Illinois, Ms. Woolsey, Mr. Capuano, Mr. Conyers, Mr. 
    Gonzalez, Mr. Delahunt, Mr. Moran of Virginia, Mr. Cleaver, Mr. 
       Gillmor, Ms. Loretta Sanchez of California, and Mr. Stupak

                             March 5, 2007

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on January 
                               30, 2007]

_______________________________________________________________________

                                 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 ``Water Quality 
Financing Act of 2007''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Amendment of Federal Water Pollution Control Act.

              TITLE I--TECHNICAL AND MANAGEMENT ASSISTANCE

Sec. 101. Technical assistance.
Sec. 102. State management assistance.
Sec. 103. Watershed pilot projects.

               TITLE II--CONSTRUCTION OF TREATMENT WORKS

Sec. 201. Sewage collection systems.
Sec. 202. Treatment works defined.
Sec. 203. Policy on cost effectiveness.

        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. Annual reports.
Sec. 307. Technical assistance.
Sec. 308. Authorization of appropriations.

                      TITLE IV--GENERAL PROVISIONS

Sec. 401. Definition of treatment works.
Sec. 402. Funding for Indian programs.

                            TITLE V--STUDIES

Sec. 501. Study of long-term, sustainable, clean water funding.
Sec. 502. Feasibility study of supplemental and alternative clean water 
                            funding mechanisms.

                        TITLE VI--TONNAGE DUTIES

Sec. 601. Tonnage duties.

SEC. 2. 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 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
                    ``(C) to disseminate information to rural and small 
                municipalities and municipalities that meet the 
                affordability criteria established under section 
                603(i)(2) 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: ``; and (7) not to exceed $75,000,000 for each of 
        fiscal years 2008 through 2012 for carrying out subsections 
        (b)(3) and (b)(8), except that not less than 20 percent of the 
        amounts appropriated pursuant to this paragraph in a fiscal 
        year shall be used for carrying out subsection (b)(8)''.
    (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. STATE MANAGEMENT ASSISTANCE.

    Section 106(a) (33 U.S.C. 1256(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (1);
            (2) by striking the semicolon at the end of paragraph (2) 
        and inserting ``; and''; and
            (3) by inserting after paragraph (2) the following:
            ``(3) such sums as may be necessary for each of fiscal 
        years 1991 through 2007, and $300,000,000 for each of fiscal 
        years 2008 through 2012;''.

SEC. 103. WATERSHED PILOT PROJECTS.

    (a) Pilot Projects.--Section 122 (33 U.S.C. 1274) is amended--
            (1) in the section heading by striking ``wet weather''; and
            (2) in subsection (a)--
                    (A) in the matter preceding paragraph (1) by 
                striking ``wet weather discharge'';
                    (B) in paragraph (2) by inserting ``, including 
                low-impact development technologies'' before the period 
                at the end; and
                    (C) by adding at the end 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.''.
    (b) Authorization of Appropriations.--Section 122(c)(1) is amended 
by striking ``for fiscal year 2004'' and inserting ``for each of fiscal 
years 2004 through 2012''.
    (c) Report to Congress.--Section 122(d) is amended by striking ``5 
years'' and inserting ``10 years''.

               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, 2007, 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, 2007, 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 the 
period at the end and inserting ``treatment works that meets the 
requirements of this Act. The system may include water efficiency 
measures and devices.''.

        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 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 projects or activities 
        eligible for assistance from the fund;
            ``(13) beginning in fiscal year 2009, 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, techniques, and technologies 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 may result in greater environmental 
                benefits or equivalent environmental benefits when 
                compared to standard processes, materials, techniques, 
                and technologies and more efficiently uses energy and 
                natural and financial resources; and
                    ``(B) has considered the cost and effectiveness of 
                alternative management and financing approaches 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 10,000 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) 
        which will be constructed in whole or in part with funds made 
        available under section 205(m) or by a State water pollution 
        control revolving fund under this title, or both, 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;
            ``(16) a contract to be carried out using funds directly 
        made available by a capitalization grant under this title for 
        program management, construction management, feasibility 
        studies, preliminary engineering, design, engineering, 
        surveying, mapping, or architectural related services shall be 
        negotiated in the same manner as a contract for architectural 
        and engineering services is negotiated under chapter 11 of 
        title 40, United States Code, or an equivalent State 
        qualifications-based requirement (as determined by the Governor 
        of the State); and
            ``(17) the requirements of section 513 will apply to the 
        construction of treatment works carried out in whole or in part 
        with assistance made available by a State water pollution 
        control revolving fund as authorized under this title, or with 
        assistance made available under section 205(m), or both, in the 
        same manner as treatment works for which grants are made under 
        this Act.''.

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 municipality or intermunicipal, interstate, or 
        State agency for measures to reduce the demand for publicly 
        owned treatment works capacity through water conservation, 
        efficiency, or reuse;
            ``(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 a 
                loan 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) Administrative Expenses.--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) Technical and Planning Assistance for Small Systems.--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 ``; and''; and
            (3) by adding at the end the following:
            ``(8) to provide owners and operators of treatment works 
        that serve a population of 10,000 or fewer with technical and 
        planning assistance and assistance in financial management, 
        user fee analysis, budgeting, capital improvement planning, 
        facility operation and maintenance, equipment replacement, 
        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.''.
    (f) Additional Subsidization.--Section 603 (33 U.S.C. 1383) is 
amended by adding at the end the following:
    ``(i) Additional Subsidization.--
            ``(1) In general.--In any case in which a State provides 
        assistance to a municipality or intermunicipal, interstate, or 
        State agency under subsection (d), the State may provide 
        additional subsidization, including forgiveness of principal 
        and negative interest loans--
                    ``(A) to benefit a municipality that--
                            ``(i) meets the State's affordability 
                        criteria established under paragraph (2); or
                            ``(ii) does not meet the State's 
                        affordability criteria if the recipient--
                                    ``(I) seeks additional 
                                subsidization to benefit individual 
                                ratepayers in the residential user rate 
                                class;
                                    ``(II) demonstrates to the State 
                                that such ratepayers will experience a 
                                significant hardship from the increase 
                                in rates necessary to finance the 
                                project or activity for which 
                                assistance is sought; and
                                    ``(III) ensures, as part of an 
                                assistance agreement between the State 
                                and the recipient, that the additional 
                                subsidization provided under this 
                                paragraph is directed through a user 
                                charge rate system (or other 
                                appropriate method) to such ratepayers; 
                                or
                    ``(B) to implement an innovative or alternative 
                process, material, technique, or technology (including 
                nonstructural protection of surface waters, a new or 
                improved method of waste treatment, and pollutant 
                trading) that may result in greater environmental 
                benefits, or equivalent environmental benefits at 
                reduced cost, when compared to a standard process, 
                material, technique, or technology.
            ``(2) Affordability criteria.--
                    ``(A) Establishment.--On or before September 30, 
                2008, 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.
                    ``(B) Existing criteria.--If a State has previously 
                established, after providing notice and an opportunity 
                for public comment, affordability criteria that meet 
                the requirements of subparagraph (A), 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.
                    ``(C) Information to assist states.--The 
                Administrator may publish information to assist States 
                in establishing affordability criteria under 
                subparagraph (A).
            ``(3) 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.
            ``(4) Set-aside.--
                    ``(A) In general.--In any fiscal year in which the 
                Administrator has available for obligation more than 
                $1,000,000,000 for the purposes of this title, a State 
                shall provide additional subsidization under this 
                subsection in the amount specified in subparagraph (B) 
                to eligible entities described in paragraph (1) for 
                projects and activities identified in the State's 
                intended use plan prepared under section 606(c) to the 
                extent that there are sufficient applications for such 
                assistance.
                    ``(B) Amount.--In a fiscal year described in 
                subparagraph (A), a State shall set aside for purposes 
                of subparagraph (A) an amount not less than 25 percent 
                of the difference between--
                            ``(i) the total amount that would have been 
                        allotted to the State under section 604 for 
                        such fiscal year if the amount available to the 
                        Administrator for obligation under this title 
                        for such fiscal year had been equal to 
                        $1,000,000,000; and
                            ``(ii) the total amount allotted to the 
                        State under section 604 for such fiscal year.
            ``(5) Limitation.--The total amount of additional 
        subsidization provided under this subsection by a State may not 
        exceed 30 percent of the total amount of capitalization grants 
        received by the State under this title in fiscal years 
        beginning after September 30, 2007.''.

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 2008 and 2009.--Sums appropriated to 
        carry out this title for each of fiscal years 2008 and 2009 
        shall be allotted by the Administrator in accordance with the 
        formula used to allot sums appropriated to carry out this title 
        for fiscal year 2007.
            ``(2) Fiscal year 2010 and thereafter.--Sums appropriated 
        to carry out this title for fiscal year 2010 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, 2009, 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 2009 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 requirements 
                of section 602(b)(5) and section 603(i)(3) 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) in paragraph (4)--
                    (A) by striking ``and (6)'' and inserting ``(6), 
                (15), and (17)''; and
                    (B) by striking ``and'' at the end;
            (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. ANNUAL REPORTS.

    Section 606(d) (33 U.S.C. 1386(d)) is amended by inserting ``the 
eligible purpose under section 603(c) for which the assistance is 
provided,'' after ``loan amounts,''.

SEC. 307. TECHNICAL ASSISTANCE.

    Title VI (33 U.S.C. 1381 et seq.) is amended--
            (1) by redesignating section 607 as section 608; 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) Compliance Criteria.--At the request of any State, the 
Administrator, after providing notice and an opportunity for public 
comment, shall assist in the development of criteria for a State to 
determine compliance with the conditions of funding assistance 
established under sections 602(b)(13) and 603(d)(1)(E).''.

SEC. 308. AUTHORIZATION OF APPROPRIATIONS.

    Section 608 (as redesignated by section 307 of this Act) is amended 
by striking paragraphs (1) through (5) and inserting the following:
            ``(1) $2,000,000,000 for fiscal year 2008;
            ``(2) $3,000,000,000 for fiscal year 2009;
            ``(3) $4,000,000,000 for fiscal year 2010; and
            ``(4) $5,000,000,000 for fiscal year 2011.''.

                      TITLE IV--GENERAL PROVISIONS

SEC. 401. DEFINITION OF TREATMENT WORKS.

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

SEC. 402. FUNDING FOR INDIAN PROGRAMS.

    Section 518(c) (33 U.S.C. 1377) 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)).''.

                            TITLE V--STUDIES

SEC. 501. STUDY OF LONG-TERM, SUSTAINABLE, CLEAN WATER FUNDING.

    (a) Study.--Not later than 30 days after the date of enactment of 
this Act, the Comptroller General shall commence a study of the funding 
mechanisms and funding sources available to establish a Clean Water 
Trust Fund.
    (b) Contents.--The study shall include an analysis of potential 
revenue sources that can be efficiently collected, are broad based, are 
related to water quality, and that support the annual funding levels 
authorized by the amendments made by this Act.
    (c) Consultation.--In conducting the study, the Comptroller 
General, at a minimum, shall consult with Federal, State, and local 
agencies, representatives of business and industry, representatives of 
entities operating publicly owned treatment works, and other interested 
groups.
    (d) Report.--Not later than January 1, 2008, the Comptroller 
General shall submit to the Committee on Transportation and 
Infrastructure of the House of Representatives and the Committee on 
Environment and Public Works of the Senate a report on the results of 
the study.

SEC. 502. FEASIBILITY STUDY OF SUPPLEMENTAL AND ALTERNATIVE CLEAN WATER 
              FUNDING MECHANISMS.

    (a) Study.--Not later than 30 days after the date of enactment of 
this Act, the Comptroller General shall commence a study of funding 
mechanisms and funding sources potentially available for wastewater 
infrastructure and other water pollution control activities under the 
Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.).
    (b) Contents.--The study shall include an analysis of funding and 
investment mechanisms and revenue sources from other potential 
supplemental or alternative public or private sources that could be 
used to fund wastewater infrastructure and other water pollution 
control activities under the Federal Water Pollution Control Act.
    (c) Consultation.--In conducting the study, the Comptroller 
General, at a minimum, shall consult with Federal, State, and local 
agencies, representatives of business, industry, and financial 
investment entities, representatives of entities operating treatment 
works, and other interested groups.
    (d) Report.--Not later than January 1, 2008, the Comptroller 
General shall submit to the Committee on Transportation and 
Infrastructure of the House of Representatives and the Committee on 
Environment and Public Works of the Senate a report on the results of 
the study.

                        TITLE VI--TONNAGE DUTIES

SEC. 601. TONNAGE DUTIES.

    (a) In General.--Section 60301 of title 46, United State Code, is 
amended--
            (1) in the section heading by striking ``taxes'' and 
        inserting ``duties'';
            (2) by amending subsections (a) and (b) to read as follows:
    ``(a) Lower Rate.--
            ``(1) Imposition of duty.--A duty is imposed at the rate 
        described in paragraph (2) at each entry in a port of the 
        United States of--
                    ``(A) a vessel entering from a foreign port or 
                place in North America, Central America, the West 
                Indies Islands, the Bahama Islands, the Bermuda 
                Islands, or the coast of South America bordering the 
                Caribbean Sea; or
                    ``(B) a vessel returning to the same port or place 
                in the United States from which it departed, and not 
                entering the United States from another port or place, 
                except--
                            ``(i) a vessel of the United States;
                            ``(ii) a recreational vessel (as defined in 
                        section 2101 of this title); or
                            ``(iii) a barge.
            ``(2) Rate.--The rate referred to in paragraph (1) shall 
        be--
                    ``(A) 4.5 cents per ton (but not more than a total 
                of 22.5 cents per ton per year) for fiscal years 2006 
                through 2007;
                    ``(B) 9.0 cents per ton (but not more than a total 
                of 45 cents per ton per year) for fiscal years 2008 
                through 2017; and
                    ``(C) 2 cents per ton (but not more than a total of 
                10 cents per ton per year) for each fiscal year 
                thereafter.
    ``(b) Higher Rate.--
            ``(1) Imposition of duty.--A duty is imposed at the rate 
        described in paragraph (2) on a vessel at each entry in a port 
        of the United States from a foreign port or place not named in 
        subsection (a)(1).
            ``(2) Rate.--The rate referred to in paragraph (1) shall 
        be--
                    ``(A) 13.5 cents per ton (but not more than a total 
                of 67.5 cents per ton per year) for fiscal years 2006 
                through 2007;
                    ``(B) 27 cents per ton (but not more than a total 
                of $1.35 per ton per year) for fiscal years 2008 
                through 2017, and
                    ``(C) 6 cents per ton (but not more than a total of 
                30 cents per ton per year) for each fiscal year 
                thereafter.''; and
            (3) in subsection (c) by striking ``taxes'' and inserting 
        ``duties''.
    (b) Conforming Amendments.--Such title is further amended--
            (1) by striking the heading for subtitle VI and inserting 
        the following:

             ``Subtitle VI--Clearance and Tonnage Duties'';

            (2) in the headings of sections in chapter 603, by striking 
        ``taxes'' each place it appears and inserting ``duties'';
            (3) in the heading for subsection (a) of section 60303, by 
        striking ``Tax'' and inserting ``Duty'';
            (4) in the text of sections in chapter 603, by striking 
        ``taxes'' each place it appears and inserting ``duties''; and
            (5) in the text of sections in chapter 603, by striking 
        ``tax'' each place it appears and inserting ``duty''.
    (c) Clerical Amendments.--Such title is further amended--
            (1) in the title analysis by striking the item relating to 
        subtitle VI and inserting the following:

``VI. CLEARANCE AND TONNAGE DUTIES..........................   60101'';
        and
            (2) in the analysis for chapter 603--
                    (A) by striking the items relating to sections 
                60301 and 60302 and inserting the following:

``60301. Regular tonnage duties.
``60302. Special tonnage duties.'';
        and
                    (B) by striking the item relating to section 60304 
                and inserting the following:

``60304. Presidential suspension of tonnage duties and light money.''.
                                                  Union Calendar No. 11

110th CONGRESS

  1st Session

                               H. R. 720

                          [Report No. 110-30]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                             March 5, 2007

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed