[Congressional Record Volume 144, Number 142 (Saturday, October 10, 1998)]
[Senate]
[Pages S12315-S12316]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ROBB:
  S. 2620. A bill to amend the Federal Water Pollution Control Act to 
establish a National Clean Water Trust Fund and to authorize the 
Administrator of the Environmental Protection Agency to use amounts in 
the Fund to carry out projects to promote the recovery of waters of the 
United States

[[Page S12316]]

from damage resulting from violations of that act, and for other 
purposes; to the Committee on Environment and Public Works.


              National Clean Water Trust Fund Act of 1998

 Mr. ROBB. Mr. President, today I introduce a bill that will 
help clean up and restore our nation's waters. This bill, the National 
Clean Water Trust Fund Act of 1998, creates a trust fund from fines, 
penalties and other monies collected through enforcement of the Clean 
Water Act. The money deposited into the National Clean Water Trust Fund 
would be used to address the pollution problems that initiated those 
enforcement actions.
  Last year, a highly publicized case in Virginia illustrated the need 
for this legislation. On August 8, 1997, U.S. District Court Judge 
Rebecca Smith issued a $12.6 million judgement, the largest fine ever 
levied for violations of the Clean Water Act, against Smithfield Foods, 
Isle of Wright County, Virginia, for polluting the James River. The 
Judge wrote in her opinion that the civil penalty imposed on Smithfield 
should be directed toward the restoration of the Pagan and James 
Rivers, tributaries of the Chesapeake Bay. Unfortunately, due to 
current federal budget laws, the court had no discretion over the 
damages, and the fine was deposited into the Treasury's general fund, 
defeating the very spirit of the Clean Water Act.
  Today, there is no guarantee that fines or other money levied against 
parties who violate provisions in the Clean Water Act will be used to 
correct water problems. Instead, some, if not all, of the money is 
directed into the general fund of the U.S. Treasury with no provision 
that it be used to improve the quality of our water. While the 
Environmental Protection Agency's enforcement activities are extracting 
large sums of money from industry and others through enforcement of the 
Clean Water Act, we ignore the fundamental issue of how to pay for 
clean up and restoration of pollution problems for which the penalties 
were levied. To ensure the successful implementation of the Clean Water 
Act, we should put these enforcement funds to work and actually clean 
up our nation's waters.
  This legislation will establish a National Clean Water Trust Fund 
within the U.S. Treasury to earmark fines, penalties, and other funds, 
including consent decrees, obtained through enforcement of the Clean 
Water Act that would otherwise be placed into the Treasury's general 
fund. Within the provisions of the bill, the EPA Administrator would be 
authorized, with direct consultation from the states, to prioritize and 
carry out projects to restore and recover waters of the United States 
using the funds collected from violations of the Clean Water Act. This 
legislation, however, would not preempt citizen suits or in any way 
preclude EPA's authority to undertake and complete supplemental 
environmental projects as part of settlements related to violations of 
the Clean Water Act and/or other legislation. The bill also provides 
court discretion over civil penalties from Clean Water Act violations 
to be used to carry out mitigation and restoration projects. With this 
legislation, we can avoid another predicament like the one faced in 
Virginia.
  Mr. President, it only makes sense that fines occurring from 
violations of the Clean Water Act be used to clean up and restore the 
waters that were damaged. This bill provides a real opportunity to 
improve the quality of our nation's waters.
  I recognize that no action can be taken on this legislation this 
session. I introduce it today in order to give my colleagues, the 
Administration and others an opportunity to examine the ideas contained 
in the legislation. I will introduce this legislation early in the next 
Congress and hope we can include it in the reauthorization of the Clean 
Water Act when it is taken up next year.
  Mr. President, I ask unanimous consent that the full text of the bill 
be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2620

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Clean Water Trust 
     Fund Act of 1998''.

     SEC. 2. NATIONAL CLEAN WATER TRUST FUND.

       Section 309 of the Federal Water Pollution Control Act (33 
     U.S.C. 1319) is amended by adding at the end the following:
       ``(h) National Clean Water Trust Fund.--
       ``(1) Establishment.--There is established in the Treasury 
     a National Clean Water Trust Fund (referred to in this 
     subsection as the `Fund') consisting of amounts transferred 
     to the Fund under paragraph (2) and amounts credited to the 
     Fund under paragraph (3).
       ``(2) Transfer of amounts.--For fiscal year 1998, and each 
     fiscal year thereafter, the Secretary of the Treasury shall 
     transfer to the Fund an amount determined by the Secretary to 
     be equal to the total amount deposited in the general fund of 
     the Treasury in the preceding fiscal year from fines, 
     penalties, and other funds obtained through enforcement 
     actions conducted pursuant to this section and section 
     505(a)(1), including any amounts obtained under consent 
     decrees and excluding any amounts ordered to be used to carry 
     out mitigation projects under this section or section 505(a).
       ``(3) Investment of amounts.--
       ``(A) In general.--The Secretary of the Treasury shall 
     invest in interest-bearing obligations of the United States 
     such portion of the Fund as is not, in the Secretary's 
     judgment, required to meet current withdrawals.
       ``(B) Administration.--The obligations shall be acquired 
     and sold and interest on, and the proceeds from the sale or 
     redemption of, the obligations shall be credited to the Fund 
     in accordance with section 9602 of the Internal Revenue Code 
     of 1986.
       ``(4) Use of amounts for remedial projects.--Amounts in the 
     Fund shall be available, as provided in appropriations Acts, 
     to the Administrator to carry out projects to restore and 
     recover waters of the United States from damage resulting 
     from violations of this Act that are subject to enforcement 
     actions under this section and similar damage resulting from 
     the discharge of pollutants into the waters of the United 
     States.
       ``(5) Selection of projects.--
       ``(A) Priority.--In selecting projects to carry out under 
     this subsection, the Administrator shall give priority to a 
     project to promote the recovery of waters of the United 
     States from damage described in paragraph (4), if an 
     enforcement action conducted pursuant to this section or 
     section 505(a)(1) with respect to the violation, or another 
     violation of this Act in the same administrative region of 
     the Environmental Protection Agency as the violation, 
     resulted in amounts being deposited in the general fund of 
     the Treasury.
       ``(B) Consultation with states.--In selecting projects to 
     carry out under this section, the Administrator shall consult 
     with States in which the Administrator is considering 
     carrying out a project.
       ``(C) Allocation of amounts.--In determining an amount to 
     allocate to carry out a project to restore and recover waters 
     of the United States from damage described in paragraph (4), 
     the Administrator shall, in the case of a priority project 
     described in subparagraph (A), take into account the total 
     amount deposited in the general fund of the Treasury as a 
     result of enforcement actions conducted with respect to the 
     violation pursuant to this section or section 505(a)(1).
       ``(6) Implementation.--The Administrator may carry out a 
     project under this subsection directly or by making grants 
     to, or entering into contracts with, another Federal agency, 
     a State agency, a political subdivision of a State, or any 
     other public or private entity.
       ``(7) Report to congress.--Not later than 1 year after the 
     date of the enactment of this subsection, and every 2 years 
     thereafter, the Administrator shall submit to Congress a 
     report on implementation of this subsection.''.

     SEC. 3. USE OF CIVIL PENALTIES FOR MITIGATION PROJECTS.

       (a) In General.--Section 309(d) of the Federal Water 
     Pollution Control Act (33 U.S.C. 1319(d)) is amended by 
     inserting after the second sentence the following: ``The 
     court may order that a civil penalty be used for carrying out 
     mitigation, restoration, or other projects that are 
     consistent with the purposes of this Act and that enhance 
     public health or the environment.''.
       (b) Conforming Amendment.--Section 505(a) of the Federal 
     Water Pollution Control Act (33 U.S.C. 1365(a)) is amended in 
     the last sentence by inserting before the period at the end 
     of the following: ``, including ordering the use of a civil 
     penalty for carrying out mitigation, restoration, or other 
     projects in accordance with section 309(d)''.
                                 ______