[Congressional Record Volume 149, Number 116 (Thursday, July 31, 2003)]
[Senate]
[Pages S10669-S10671]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REED (for himself, Mr. Voinovich, Mr. Sarbanes, Ms. Snowe, 
        Mr. Jeffords, Mr. Levin, and Mr. Harkin):
  S. 1539. A bill to amend the Federal Water Pollution Control Act to 
establish a National Clean and Sage Water 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 from damage resulting from violations of that Act and the 
Safe Drinking Water Act, and for other purposes; to the Committee on 
Environment and Public Works.
  Mr. REED. Mr. President, we often don't think about how important 
water is to our everyday lives, for our health and for our economy. As 
Americans, we take for granted that when we turn on the tap that clean 
and safe water will flow from the faucet.
  Over the last three decades, the United States has made substantial 
progress in reducing the pollution flowing into our waters and 
safeguarding drinking water supplies for our communities. Despite our 
progress, we still face many challenges.
  Population growth is increasing demand for water, and pollution from 
point and nonpoint sources threaten the quality and quantity of water 
available to us. According to EPA, the overwhelming majority of the 
population of the United States--218 million people--live within 10 
miles of a polluted river, lake, or coastal water. Nearly 40 percent of 
these waters are not safe for fishing, swimming, boating, drinking 
water, or other needs. And while overall water pollution levels 
decreased dramatically over the last 30 years, recent data may be 
revealing a disturbing trend. Indeed, EPA's most recent National Water 
Quality Inventory found that the number of polluted rivers and 
estuaries increased between 1998 and 2000. Water pollution represents a 
real and daily threat to public health and to the wildlife that depend 
on clean water.
  This year, we are celebrating the Year of Clean Water. To honor our 
national commitment to reduce the pollution flowing into our waters and 
provide safe drinking water for our communities, I am introducing the 
National Clean and Safe Water Fund Act of 2003. The legislation, 
cosponsored by Senators Voinovich, Sarbanes, Snowe, Jeffords, Levin and 
Harkin will create a fund to carry out projects to promote water 
quality and protect watersheds and aquifers. It would establish a fund 
whose sole purpose is to advance the restoration of U.S. waters, 
particularly in the watersheds where these violations occurred. The 
bill is supported by a wide variety of organizations, including: the 
Narragansett Bay Commission, the Association of Metropolitan Water 
Agencies, American Rivers, Environmental Integrity Project, Friends of 
the Earth, National Audubon Society, Natural Resources Defense Council, 
The Ocean Conservancy and the U.S. Public Interest Research Group. I 
asked unanimous consent that the bill and letters of support be 
included in the record following my statement.
  Last year, the Federal Government collected $52 million in civil and 
criminal penalties from violations of the Clean Water Act and Safe 
Drinking Water Acts. The money was deposited in the Treasury with no 
guarantee that the fines collected would be used to correct the water 
pollution for which the penalties were levied. Our legislation would 
make these funds available to local communities, tribes, States and 
non-profit organizations to protect and preserve watersheds and 
aquifers and to improve water quality.
  This legislation would target this money to worthy projects, such as 
wetland protection and stream buffers to help filter out pathogens and 
pollutants that contaminate drinking water; land acquisition and 
conservation easements to protect watershed and aquifers; best 
management practices to prevent pollution in the first place; and, 
treatment works to control combined sewer or sanitary sewer overflows. 
Our legislation will continue progress to reduce the number of impaired 
waterways in our Nation, and to reduce, or better yet, prevent 
contamination of groundwater and drinking water sources.
  It is imperative that we increase Federal investment in clean water 
and drinking water infrastructure and devote greater resources and 
attention to protecting and improving our watersheds and aquifers.
  The Congressional Budget Office released a report that estimated the 
spending gap for clean water needs could reach as high as $388 billion 
and the spending gap for drinking water needs could reach $362 billion 
over 20 years. The CBO concluded the current funding from all levels of 
government and current revenue generated from ratepayers will not be 
sufficient to meet the Nation's future demand for water infrastructure. 
Yet, despite these grim statistics, the Federal Government is investing 
only $1.35 billion in Clean Water infrastructure each year and $850 
million in Drinking Water infrastructure. And unfortunately, the 
President's budget proposes to cut this funding by $500 million this 
year.
  Given the tremendous need in our communities, and the importance of 
water infrastructure to our economy, it is vital that the Federal 
Government maintain a strong partnership with States and local 
governments to avert this massive funding gap. We need to find new 
funding sources for watershed and aquifer protection. Clean, safe and 
abundant drinking water can no longer be taken for granted.
  The costs of building new reservoirs and treatment facilities 
threaten to overrun our ability to pay, especially during the current 
fiscal crisis. Technology also has limitations in its ability to treat 
polluted water. Many water agencies are focusing on protecting 
watersheds and aquifers and conserving valuable clean water resources. 
In my State, the Providence Water Supply Board collects 1 cent per 100 
gallons in a water usage tax to fund watershed acquisition. This may be 
our best and cheapest way to guarantee water quality and quantity.
  Congress needs to increase support for efforts to protect our water 
resources. Polluted runoff from urban and agricultural land is now the 
most significant source of water pollution in the nation and the 
greatest threat to our drinking water. Our greatest future gains in 
pollution control will, therefore, come from reducing non-point source 
pollution.
  There are cost-effective and environmentally sound projects that 
could help reduce this pollution, but currently, many non-point source 
projects cannot participate in the State revolving loan programs since 
they often do not have a guaranteed source of revenue. Also, without 
making new Federal resources available it is unlikely we will be able 
support increased investment in green infrastructure projects such as 
wetland conservation and stream buffers. The legislation that we are 
introducing today will make greater funding available for water quality 
projects.
  I hope that my colleagues will join Senators Voinovich, Sarbanes, 
Snowe, Jeffords, Levin, Harkin and me in supporting this legislation. 
Creating this fund will help further the Nation's goals of providing 
safe and clean water for our communities and restoring water quality 
for wildlife.
  Mr. President, I ask unanimous consent that the text of bill and 
letters of support be printed in the Record.
  There being no objection, the material ordered to be printed in the 
Record, as follows:

                                S. 1539

       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 and Safe 
     Water Fund Act of 2003''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) the Administrator of the Environmental Protection 
     Agency has determined that more than 40 percent of the 
     assessed water of the United States does not meet applicable 
     water quality standards established by States, territories, 
     and Indian tribes;
       (2) the water described in paragraph (1) includes 
     approximately 300,000 miles of rivers and shorelines, and 
     approximately 5,000,000 acres of lakes, that are polluted by 
     sediments, excess nutrients, and harmful microorganisms;

[[Page S10670]]

       (3) Congress enacted--
       (A) the Federal Water Pollution Control Act (33 U.S.C. 1251 
     et seq.) to maintain the chemical, physical, and biological 
     integrity of water of the United States; and
       (B) the Safe Drinking Water Act (42 U.S.C. 300f et seq.) to 
     protect public health by regulating the public drinking water 
     supply of the United States;
       (4) because criminal, civil, and administrative penalties 
     assessed under the Acts referred to in paragraph (3) are 
     returned to the Treasury, those amounts are not available to 
     protect, preserve, or enhance the quality of water in 
     watersheds in which violations of those Acts occur; and
       (5) the establishment of a national clean and safe water 
     fund would help States in achieving the goals described in 
     paragraph (1) by providing funding to protect and improve 
     watersheds and aquifers.

     SEC. 3. NATIONAL CLEAN AND SAFE WATER 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 and Safe Water Fund.--
       ``(1) Establishment.--There is established in the Treasury 
     a fund to be known as the `National Clean and Safe Water 
     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.--Notwithstanding any other 
     provision of law, for fiscal year 2003 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 collected as a result of enforcement actions 
     brought under this section, section 505(a)(1), or the Safe 
     Drinking Water Act (42 U.S.C. 300f et seq.), excluding any 
     amounts ordered to be used to carry out projects in 
     accordance with subsection (d).
       ``(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 judgment of the 
     Secretary, 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 water quality projects.--
       ``(A) In general.--Amounts in the Fund shall be available 
     to the Administrator, subject to appropriation, to carry out 
     projects the primary purpose of which is water quality 
     maintenance or improvement, including--
       ``(i) water conservation projects;
       ``(ii) wetland protection and restoration projects;
       ``(iii) contaminated sediment projects;
       ``(iv) drinking water source protection projects;
       ``(v) projects consisting of best management practices that 
     reduce pollutant loads in an impaired or threatened body of 
     water;
       ``(vi) decentralized stormwater or wastewater treatment 
     projects, including low-impact development practices;
       ``(vii) projects consisting of conservation easements or 
     land acquisition for water quality protection;
       ``(viii) projects consisting of construction or maintenance 
     of stream buffers;
       ``(ix) projects for planning, design, and construction of 
     treatment works to remediate or control combined or sanitary 
     sewer overflows; and
       ``(x) such other similar projects as the Administrator 
     determines to be appropriate.
       ``(B) Limitations on use of funds.--Amounts in the Fund--
       ``(i)(I) shall be used only to carry out projects described 
     in subparagraph (A); and
       ``(II) shall not be used by the Administrator to pay the 
     cost of any legal or administrative expense incurred by the 
     Administrator (except a legal or administrative expense 
     relating to administration of the Fund); and
       ``(ii) shall be in addition to any amount made available to 
     carry out projects described in subparagraph (A) under any 
     other provision of law.
       ``(5) Selection of projects.--
       ``(A) Priority.--In selecting among projects eligible for 
     assistance under this subsection, the Administrator shall 
     give priority to a project described in paragraph (4) that is 
     located in a watershed in a State in which there has occurred 
     a violation under this Act or the Safe Drinking Water Act (42 
     U.S.C. 300f et seq.) for which an enforcement action was 
     brought that resulted in the payment of an amount into the 
     general fund of the Treasury.
       ``(B) Selection criteria.--The Administrator, in 
     consultation with the United States Geological Survey and 
     other appropriate agencies, shall establish criteria that 
     maximize water quality improvement in watersheds and aquifers 
     for use in selecting projects to carry out under this 
     subsection.
       ``(C) Coordination with states.--In selecting a project to 
     carry out under this subsection, the Administrator shall 
     coordinate with the State in which the Administrator is 
     considering carrying out the project.
       ``(6) Implementation.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Administrator may carry out a project under this subsection 
     making grants to--
       ``(i) another Federal agency;
       ``(ii) a State agency;
       ``(iii) a political subdivision of a State;
       ``(iv) a publicly-owned treatment works;
       ``(v) a nonprofit entity;
       ``(vi) a public water system (as defined in section 1401 of 
     the Safe Drinking Water Act (42 U.S.C. 300f));
       ``(vii) a Federal interstate water compact commission;
       ``(viii) an Indian tribe (as defined in section 4 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b)); or
       ``(ix) a Native Hawaiian (as defined in section 12 of the 
     Native Hawaiian Health Care Improvement Act (42 U.S.C. 
     11710)).
       ``(B) Exclusion.--Under subparagraph (A), the Administrator 
     may not make any grant to or enter into any contract with any 
     private entity that is subject to regulation under--
       ``(i) this Act; or
       ``(ii) the Safe Drinking Water Act (42 U.S.C. 300f et 
     seq.).
       ``(7) Report to congress.--Not later than 1 year after the 
     date of enactment of this subsection and biennially 
     thereafter, the Administrator shall submit to Congress a 
     report that--
       ``(A) identifies the projects selected for funding under 
     this subsection during the period covered by the report;
       ``(B) details the selection criteria established under 
     paragraph (5)(B) that were used to select those projects;
       ``(C) describes the ways in which the Administrator 
     coordinated with States under paragraph (5)(C) in selecting 
     those projects; and
       ``(D) describes the priorities for use of funds from the 
     Fund in future years in order to achieve water quality goals 
     in bodies of impaired or threatened water.
       ``(8) No effect on obligation to comply.--Nothing in this 
     subsection affects the obligation of any person subject to 
     this Act or the Safe Drinking Water Act (42 U.S.C. 300f et 
     seq.) to comply with either of those Acts.''.

     SEC. 4. USE OF CIVIL PENALTIES FOR REMEDIAL 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 assessed under this Act 
     or the Safe Drinking Water Act (42 U.S.C. 300f et seq.) 
     (other than a civil penalty that would otherwise be deposited 
     in the Oil Spill Liability Trust Fund under section 9509 of 
     the Internal Revenue Code of 1986) be used to carry out 1 or 
     more projects in accordance with clauses (i) through (iv) of 
     subsection (h)(4)(A).''.
       (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 
     the following: ``, including ordering the use of a civil 
     penalty for carrying out projects in accordance with section 
     309(d)''.
                                  ____

                                       Association of Metropolitan


                                               Water Agencies,

                                    Washington, DC, July 31, 2003.
     Hon. Jack Reed,
     U.S. Senate,
     Washington, DC.
       Dear Senator Reed: I write today to express the support of 
     the Association of Metropolitan Water Agencies (AMWA) for 
     your National Clean and Safe Water Fund Act of 2003.
       AMWA is an association of the nation's largest publicly 
     owned drinking water systems. AMWA members serve safe 
     drinking water to more than 110 million Americans.
       Funded with fines collected due to violations of the Clean 
     Water Act and the Safe Drinking Water Act, the National Clean 
     and Safe Water Fund could provide much-needed resources to 
     improve the rivers and lakes that serve as sources of 
     drinking water for millions of Americans.
       Agricultural run-off remains the largest contributor of 
     nonpoint source pollution in our nation's waters. According 
     to the Environmental Protection Agency and the U.S. 
     Geological Survey, agricultural pollution--such as siltation, 
     animal waste, pesticides and fertilizers--contributes to 59 
     percent of reported water quality problems in impaired rivers 
     and streams.
       These and other water quality problems in our nation's 
     sources of drinking water could be reduced with the 
     assistance of land acquisition, reduced pollutant loading, 
     wetlands restoration, wastewater treatment works and other 
     projects eligible for funding in the National Clean and Safe 
     Water Fund Act of 2003.
           Sincerely,
                                                  Diane VanDe Hei,
     Executive Director.
                                  ____



                              The Narragansett Bay Commission,

                                    Providence, RI, July 29, 2003.
     Hon. Jack Reed,
     U.S. Senator, Senate Hart Office Building, Washington, DC.
       Dear Senator Reed: On behalf of the Narragansett Bay 
     Commission, I am writing to express support for the Clean and 
     Safe Water Fund Legislation, as proposed by you and Senators 
     Voinovich and Sarbanes.
       According to the EPA, the Congressional Budget Office, and 
     the Water Infrastructure Network, the nation faces a funding 
     gap as

[[Page S10671]]

     high as $46 billion per year for necessary and mandated water 
     and wastewater infrastructure projects. The burden of paying 
     for these mandated projects currently falls almost 
     exclusively on municipalities. This legislation will be an 
     important first step in moving toward a national trust fund 
     for water and wastewater infrastructure.
       We applaud you and your fellow Senator for your recognition 
     of the importance of a dedicated funding source for water and 
     wastewater infrastructure and we are pleased to support this 
     bill.
           Sincerely,
                                               Paul Pinault, P.E.,
     Executive Director.
                                  ____

         American Rivers Environmental Integrity Project, Friends 
           of the Earth, National Audubon Society, Natural 
           Resources Defense Council, The Ocean Conservancy, U.S. 
           Public Interest Research Group,
                                                        July 2003.
       Dear Senator Reed: On behalf of our organizations and the 
     millions of members we represent, we are writing to express 
     our support for your new legislation, the National Clean and 
     Safe Water Fund Act of 2003. Currently, funds from violators 
     of the Clean Water Act and Safe Drinking Water Act go into 
     the general Treasury, and are not specifically earmarked for 
     the protection and enhancement of water quality. This 
     legislation would establish a fund whose sole purpose is to 
     advance the restoration of U.S. waters, particularly in the 
     areas in which violations of those acts occur.
       This year marks the 30th anniversary of the Clean Water 
     Act, but unfortunately we remain far behind the goals of the 
     authors of the Act. The Environmental Protection Agency 
     acknowledges that over 40 percent of our nation's waters 
     remain unfit for fishing and swimming. We need to do a better 
     job of enforcing the laws that are already on the books, as 
     well as adopting new strategies to ensure that penalties from 
     violations of clean water laws are used to restore the 
     impacted watersheds. The National Clean and Safe Water Fund 
     Act of 2003 outlines many projects for which penalties 
     collected from violators of the Clean Water Act and Safe 
     Drinking Water Act would go towards, including drinking water 
     source protection, wetland protection and restoration, and 
     stormwater and wastewater treatment projects.
       We appreciate your leadership in introducing this 
     legislation, and look forward to working with you to see it 
     passed into law.
     Ellen Athas,
       Director, Clean Oceans Programs, The Ocean Conservancy.
     Richard Caplan,
       Environmental Advocate, U.S. Public Interest Research 
     Group.
     Michele M. Merkel,
       Senior Counsel, Environmental Integrity Project.
     Betsy Otto,
       Senior Director, Watersheds Program, American Rivers.
     Perry Plumart,
       Director of Government Relations, National Audubon Society.
     Nancy Stoner,
       Director, Clean Water Project, Natural Resources Defense 
     Council.
     Sara Zdeb,
       Legislative Director, Friends of the Earth.
                                 ______