[House Report 104-741]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-741
_______________________________________________________________________


 
               SAFE DRINKING WATER ACT AMENDMENTS OF 1996

                                _______
                                

                 August 1, 1996.--Ordered to be printed

_______________________________________________________________________


 Mr. Bliley, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                         [To accompany S. 1316]

    The committee of conference on the disagreeing votes of the 
two Houses on the amendment of the House to the bill (S. 1316), 
to reauthorize and amend title XIV of the Public Health Service 
Act (commonly known as the ``Safe Drinking Water Act''), and 
for other purposes, having met, after full and free conference, 
have agreed to recommend and do recommend to their respective 
Houses as follows:
    That the Senate recede from its disagreement to the 
amendment of the House and agree to the same with an amendment 
as follows:
    In lieu of the matter proposed to be inserted by the House 
amendment, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Safe 
Drinking Water Act Amendments of 1996''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. References; effective date; disclaimer.
Sec. 3. Findings.

             TITLE I--AMENDMENTS TO SAFE DRINKING WATER ACT

Sec. 101. Definitions.
Sec. 102. General authority.
Sec. 103. Risk assessment, management, and communication.
Sec. 104. Standard-setting.
Sec. 105. Treatment technologies for small systems.
Sec. 106. Limited alternative to filtration.
Sec. 107. Ground water disinfection.
Sec. 108. Effective date for regulations.
Sec. 109. Arsenic, sulfate, and radon.
Sec. 110. Recycling of filter backwash.
Sec. 111. Technology and treatment techniques.
Sec. 112. State primacy.
Sec. 113. Enforcement; judicial review.
Sec. 114. Public notification.
Sec. 115. Variances.
Sec. 116. Small systems variances.
Sec. 117. Exemptions.
Sec. 118. Lead plumbing and pipes.
Sec. 119. Capacity development.
Sec. 120. Authorization of appropriations for certain ground water 
          programs.
Sec. 121. Amendments to section 1442.
Sec. 122. Technical assistance.
Sec. 123. Operator certification.
Sec. 124. Public water system supervision program.
Sec. 125. Monitoring and information gathering.
Sec. 126. Occurrence data base.
Sec. 127. Drinking Water Advisory Council.
Sec. 128. New York City watershed protection program.
Sec. 129. Federal agencies.
Sec. 130. State revolving loan funds.
Sec. 131. State ground water protection grants.
Sec. 132. Source water assessment.
Sec. 133. Source water petition program.
Sec. 134. Water conservation plan.
Sec. 135. Drinking water assistance to colonias.
Sec. 136. Estrogenic substances screening program.
Sec. 137. Drinking water studies.

                    TITLE II--DRINKING WATER RESEARCH

Sec. 201. Drinking water research authorization.
Sec. 202. Scientific research review.
Sec. 203. National center for ground water research.

                   TITLE III--MISCELLANEOUS PROVISIONS

Sec. 301. Water return flows.
Sec. 302  Transfer of funds.
Sec. 303. Grants to Alaska to improve sanitation in rural and Native 
          villages.
Sec. 304. Sense of the Congress.
Sec. 305. Bottled drinking water standards.
Sec. 306. Washington Aqueduct.
Sec. 307. Wastewater assistance to colonias.
Sec. 308. Prevention and control of zebra mussel infestation of Lake 
          Champlain.

 TITLE IV--ADDITIONAL ASSISTANCE FOR WATER INFRASTRUCTURE AND WATERSHEDS

Sec. 401. National program.

                      TITLE V--CLERICAL AMENDMENTS

Sec. 501. Clerical amendments.

SEC. 2. REFERENCES; EFFECTIVE DATE; DISCLAIMER.

    (a) References to Safe Drinking Water 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 that section or other provision of 
title XIV of the Public Health Service Act (commonly known as 
the ``Safe Drinking Water Act'') (42 U.S.C. 300f et seq.).
    (b) Effective Date.--Except as otherwise specified in this 
Act or in the amendments made by this Act, this Act and the 
amendments made by this Act shall take effect on the date of 
enactment of this Act.
    (c) Disclaimer.--Except for the provisions of section 302 
(relating to transfers of funds), nothing in this Act or in any 
amendments made by this Act to title XIV of the Public Health 
Service Act (commonly known as the ``Safe Drinking Water Act'') 
or any other law shall be construed by the Administrator of the 
Environmental Protection Agency or the courts as affecting, 
modifying, expanding, changing, or altering--
            (1) the provisions of the Federal Water Pollution 
        Control Act;
            (2) the duties and responsibilities of the 
        Administrator under that Act; or
            (3) the regulation or control of point or nonpoint 
        sources of pollution discharged into waters covered by 
        that Act.
The Administrator shall identify in the agency's annual budget 
all funding and full-time equivalents administering such title 
XIV separately from funding and staffing for the Federal Water 
Pollution Control Act.

SEC. 3. FINDINGS.

    The Congress finds that--
            (1) safe drinking water is essential to the 
        protection of public health;
            (2) because the requirements of the Safe Drinking 
        Water Act (42 U.S.C. 300f et seq.) now exceed the 
        financial and technical capacity of some public water 
        systems, especially many small public water systems, 
        the Federal Government needs to provide assistance to 
        communities to help the communities meet Federal 
        drinking water requirements;
            (3) the Federal Government commits to maintaining 
        and improving its partnership with the States in the 
        administration and implementation of the Safe Drinking 
        Water Act;
            (4) States play a central role in the 
        implementation of safe drinking water programs, and 
        States need increased financial resources and 
        appropriate flexibility to ensure the prompt and 
        effective development and implementation of drinking 
        water programs;
            (5) the existing process for the assessment and 
        selection of additional drinking water contaminants 
        needs to be revised and improved to ensure that there 
        is a sound scientific basis for setting priorities in 
        establishing drinking water regulations;
            (6) procedures for assessing the health effects of 
        contaminants establishing drinking water standards 
        should be revised to provide greater opportunity for 
        public education and participation;
            (7) in considering the appropriate level of 
        regulation for contaminants in drinking water, risk 
        assessment, based on sound and objective science, and 
        benefit-cost analysis are important analytical tools 
        for improving the efficiency and effectiveness of 
        drinking water regulations to protect human health;
            (8) more effective protection of public health 
        requires--
                    (A) a Federal commitment to set priorities 
                that will allow scarce Federal, State, and 
                local resources to be targeted toward the 
                drinking water problems of greatest public 
                health concern;
                    (B) maximizing the value of the different 
                and complementary strengths and 
                responsibilities of the Federal and State 
                governments in those States that have primary 
                enforcement responsibility for the Safe 
                Drinking Water Act; and
                    (C) prevention of drinking water 
                contamination through well-trained system 
                operators, water systems with adequate 
                managerial, technical, and financial capacity, 
                and enhanced protection of source waters of 
                public water systems;
            (9) compliance with the requirements of the Safe 
        Drinking Water Act continues to be a concern at public 
        water systems experiencing technical and financial 
        limitations, and Federal, State, and local governments 
        need more resources and more effective authority to 
        attain the objectives of the Safe Drinking Water Act; 
        and
            (10) consumers served by public water systems 
        should be provided with information on the source of 
        the water they are drinking and its quality and safety, 
        as well as prompt notification of any violation of 
        drinking water regulations.

             TITLE I--AMENDMENTS TO SAFE DRINKING WATER ACT

SEC. 101. DEFINITIONS.

    (a) In General.--Section 1401 (42 U.S.C. 300f) is amended 
as follows:
            (1) In paragraph (1)--
                    (A) in subparagraph (D), by inserting 
                ``accepted methods for'' before ``quality 
                control''; and
                    (B) by adding at the end the following: 
                ``At any time after promulgation of a 
                regulation referred to in this paragraph, the 
                Administrator may add equally effective quality 
                control and testing procedures by guidance 
                published in the Federal Register. Such 
                procedures shall be treated as an alternative 
                for public water systems to the quality control 
                and testing procedures listed in the 
                regulation.''.
            (2) In paragraph (13)--
                    (A) by striking ``The'' and inserting ``(A) 
                Except as provided in subparagraph (B), the''; 
                and
                    (B) by adding at the end the following:
            ``(B) For purposes of section 1452, the term 
        `State' means each of the 50 States, the District of 
        Columbia, and the Commonwealth of Puerto Rico.''.
            (3) In paragraph (14), by adding at the end the 
        following: ``For purposes of section 1452, the term 
        includes any Native village (as defined in section 3(c) 
        of the Alaska Native Claims Settlement Act (43 U.S.C. 
        1602(c))).''.
            (4) By adding at the end the following:
            ``(15) Community water system.--The term `community 
        water system' means a public water system that--
                    ``(A) serves at least 15 service 
                connections used by year-round residents of the 
                area served by the system; or
                    ``(B) regularly serves at least 25 year-
                round residents.
            ``(16) Noncommunity water system.--The term 
        `noncommunity water system' means a public water system 
        that is not a community water system.''.
    (b) Public Water System.--
            (1) In general.--Section 1401(4) (42 U.S.C. 
        300f(4)) is amended as follows:
                    (A) In the first sentence, by striking 
                ``piped water for human consumption'' and 
                inserting ``water for human consumption through 
                pipes or other constructed conveyances''.
                    (B) By redesignating subparagraphs (A) and 
                (B) as clauses (i) and (ii), respectively.
                    (C) By striking ``(4) The'' and inserting 
                the following:
            ``(4) Public water system.--
                    ``(A) In general.--The''; and
                    (D) by adding at the end the following:
                    ``(B) Connections.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A), a connection to a 
                        system that delivers water by a 
                        constructed conveyance other than a 
                        pipe shall not be considered a 
                        connection, if--
                                    ``(I) the water is used 
                                exclusively for purposes other 
                                than residential uses 
                                (consisting of drinking, 
                                bathing, and cooking, or other 
                                similar uses);
                                    ``(II) the Administrator or 
                                the State (in the case of a 
                                State exercising primary 
                                enforcement responsibility for 
                                public water systems) 
                                determines that alternative 
                                water to achieve the equivalent 
                                level of public health 
                                protection provided by the 
                                applicable national primary 
                                drinking water regulation is 
                                provided for residential or 
                                similar uses for drinking and 
                                cooking; or
                                    ``(III) the Administrator 
                                or the State (in the case of a 
                                State exercising primary 
                                enforcement responsibility for 
                                public water systems) 
                                determines that the water 
                                provided for residential or 
                                similar uses for drinking, 
                                cooking, and bathing is 
                                centrally treated or treated at 
                                the point of entry by the 
                                provider, a pass-through 
                                entity, or the user to achieve 
                                the equivalent level of 
                                protection provided by the 
                                applicable national primary 
                                drinking water regulations.
                            ``(ii) Irrigation districts.--An 
                        irrigation district in existence prior 
                        to May 18, 1994, that provides 
                        primarily agricultural service through 
                        a piped water system with only 
                        incidental residential or similar use 
                        shall not be considered to be a public 
                        water system if the system or the 
                        residential or similar users of the 
                        system comply with subclause (II) or 
                        (III) of clause (i).
                    ``(C) Transition period.--A water supplier 
                that would be a public water system only as a 
                result of modifications made to this paragraph 
                by the Safe Drinking Water Act Amendments of 
                1996 shall not be considered a public water 
                system for purposes of the Act until the date 
                that is two years after the date of enactment 
                of this subparagraph. If a water supplier does 
                not serve 15 service connections (as defined in 
                subparagraphs (A) and (B)) or 25 people at any 
                time after the conclusion of the 2-year period, 
                the water supplier shall not be considered a 
                public water system.''.
            (2) GAO study.--The Comptroller General of the 
        United States shall undertake a study to--
                    (A) ascertain the numbers and locations of 
                individuals and households relying for their 
                residential water needs, including drinking, 
                bathing, and cooking (or other similar uses) on 
                irrigation water systems, mining water systems, 
                industrial water systems, or other water 
                systems covered by section 1401(4)(B) of the 
                Safe Drinking Water Act that are not public 
                water systems subject to the Safe Drinking 
                Water Act;
                    (B) determine the sources and costs and 
                affordability (to users and systems) of water 
                used by such populations for their residential 
                water needs; and
                    (C) review State and water system 
                compliance with the exclusion provisions of 
                section 1401(4)(B) of such Act.
        The Comptroller General shall submit a report to the 
        Congress within 3 years after the date of enactment of 
        this Act containing the results of such study.

SEC. 102. GENERAL AUTHORITY.

    (a) Standards.--Section 1412(b) (42 U.S.C. 300g-1(b)) is 
amended by striking ``(b)(1)'' and all that follows through the 
end of paragraph (3) and inserting the following:
    ``(b) Standards.--
            ``(1) Identification of contaminants for listing.--
                    ``(A) General authority.--The Administrator 
                shall, in accordance with the procedures 
                established by this subsection, publish a 
                maximum contaminant level goal and promulgate a 
                national primary drinking water regulation for 
                a contaminant (other than a contaminant 
                referred to in paragraph (2) for which a 
                national primary drinking water regulation has 
                been promulgated as of the date of enactment of 
                the Safe Drinking Water Act Amendments of 1996) 
                if the Administrator determines that--
                            ``(i) the contaminant may have an 
                        adverse effect on the health of 
                        persons;
                            ``(ii) the contaminant is known to 
                        occur or there is a substantial 
                        likelihood that the contaminant will 
                        occur in public water systems with a 
                        frequency and at levels of public 
                        health concern; and
                            ``(iii) in the sole judgment of the 
                        Administrator, regulation of such 
                        contaminant presents a meaningful 
                        opportunity for health risk reduction 
                        for persons served by public water 
                        systems.
                    ``(B) Regulation of unregulated 
                contaminants.--
                            ``(i) Listing of contaminants for 
                        consideration.--(I) Not later than 18 
                        months after the date of enactment of 
                        the Safe Drinking Water Act Amendments 
                        of 1996 and every 5 years thereafter, 
                        the Administrator, after consultation 
                        with the scientific community, 
                        including the Science Advisory Board, 
                        after notice and opportunity for public 
                        comment, and after considering the 
                        occurrence data base established under 
                        section 1445(g), shall publish a list 
                        of contaminants which, at the time of 
                        publication, are not subject to any 
                        proposed or promulgated national 
                        primary drinking water regulation, 
                        which are known or anticipated to occur 
                        in public water systems, and which may 
                        require regulation under this title.
                            ``(II) The unregulated contaminants 
                        considered under subclause (I) shall 
                        include, but not be limited to, 
                        substances referred to in section 
                        101(14) of the Comprehensive 
                        Environmental Response, Compensation, 
                        and Liability Act of 1980, and 
                        substances registered as pesticides 
                        under the Federal Insecticide, 
                        Fungicide, and Rodenticide Act.
                            ``(III) The Administrator's 
                        decision whether or not to select an 
                        unregulated contaminant for a list 
                        under this clause shall not be subject 
                        to judicial review.
                            ``(ii) Determination to regulate.--
                        (I) Not later than 5 years after the 
                        date of enactment of the Safe Drinking 
                        Water Act Amendments of 1996, and every 
                        5 years thereafter, the Administrator 
                        shall, after notice of the preliminary 
                        determination and opportunity for 
                        public comment, for not fewer than 5 
                        contaminants included on the list 
                        published under clause (i), make 
                        determinations of whether or not to 
                        regulate such contaminants.
                            ``(II) A determination to regulate 
                        a contaminant shall be based on 
                        findings that the criteria of clauses 
                        (i), (ii), and (iii) of subparagraph 
                        (A) are satisfied. Such findings shall 
                        be based on the best available public 
                        health information, including the 
                        occurrence data base established under 
                        section 1445(g).
                            ``(III) The Administrator may make 
                        a determination to regulate a 
                        contaminant that does not appear on a 
                        list under clause (i) if the 
                        determination to regulate is made 
                        pursuant to subclause (II).
                            ``(IV) A determination under this 
                        clause not to regulate a contaminant 
                        shall be considered final agency action 
                        and subject to judicial review.
                            ``(iii) Review.--Each document 
                        setting forth the determination for a 
                        contaminant under clause (ii) shall be 
                        available for public comment at such 
                        time as the determination is published.
                    ``(C) Priorities.--In selecting unregulated 
                contaminants for consideration under 
                subparagraph (B), the Administrator shall 
                select contaminants that present the greatest 
                public health concern. The Administrator, in 
                making such selection, shall take into 
                consideration, among other factors of public 
                health concern, the effect of such contaminants 
                upon subgroups that comprise a meaningful 
                portion of the general population (such as 
                infants, children, pregnant women, the elderly, 
                individuals with a history of serious illness, 
                or other subpopulations) that are identifiable 
                as being at greater risk of adverse health 
                effects due to exposure to contaminants in 
                drinking water than the general population.
                    ``(D) Urgent threats to public health.--The 
                Administrator may promulgate an interim 
                national primary drinking water regulation for 
                a contaminant without making a determination 
                for the contaminant under paragraph (4)(C), or 
                completing the analysis under paragraph (3)(C), 
                to address an urgent threat to public health as 
                determined by the Administrator after 
                consultation with and written response to any 
                comments provided by the Secretary of Health 
                and Human Services, acting through the director 
                of the Centers for Disease Control and 
                Prevention or the director of the National 
                Institutes of Health. A determination for any 
                contaminant in accordance with paragraph (4)(C) 
                subject to an interim regulation under this 
                subparagraph shall be issued, and a completed 
                analysis meeting the requirements of paragraph 
                (3)(C) shall be published, not later than 3 
                years after the date on which the regulation is 
                promulgated and the regulation shall be 
                repromulgated, or revised if appropriate, not 
                later than 5 years after that date.
                    ``(E) Regulation.--For each contaminant 
                that the Administrator determines to regulate 
                under subparagraph (B), the Administrator shall 
                publish maximum contaminant level goals and 
                promulgate, by rule, national primary drinking 
                water regulations under this subsection. The 
                Administrator shall propose the maximum 
                contaminant level goal and national primary 
                drinking water regulation for a contaminant not 
                later than 24 months after the determination to 
                regulate under subparagraph (B), and may 
                publish such proposed regulation concurrent 
                with the determination to regulate. The 
                Administrator shall publish a maximum 
                contaminant level goal and promulgate a 
                national primary drinking water regulation 
                within 18 months after the proposal thereof. 
                The Administrator, by notice in the Federal 
                Register, may extend the deadline for such 
                promulgation for up to 9 months.
                    ``(F) Health advisories and other 
                actions.--The Administrator may publish health 
                advisories (which are not regulations) or take 
                other appropriate actions for contaminants not 
                subject to any national primary drinking water 
                regulation.
            ``(2) Schedules and deadlines.--
                    ``(A) In general.--In the case of the 
                contaminants listed in the Advance Notice of 
                Proposed Rulemaking published in volume 47, 
                Federal Register, page 9352, and in volume 48, 
                Federal Register, page 45502, the Administrator 
                shall publish maximum contaminant level goals 
                and promulgate national primary drinking water 
                regulations--
                            ``(i) not later than 1 year after 
                        June 19, 1986, for not fewer than 9 of 
                        the listed contaminants;
                            ``(ii) not later than 2 years after 
                        June 19, 1986, for not fewer than 40 of 
                        the listed contaminants; and
                            ``(iii) not later than 3 years 
                        after June 19, 1986, for the remainder 
                        of the listed contaminants.
                    ``(B) Substitution of contaminants.--If the 
                Administrator identifies a drinking water 
                contaminant the regulation of which, in the 
                judgment of the Administrator, is more likely 
                to be protective of public health (taking into 
                account the schedule for regulation under 
                subparagraph (A)) than a contaminant referred 
                to in subparagraph (A), the Administrator may 
                publish a maximum contaminant level goal and 
                promulgate a national primary drinking water 
                regulation for the identified contaminant in 
                lieu of regulating the contaminant referred to 
                in subparagraph (A). Substitutions may be made 
                for not more than 7 contaminants referred to in 
                subparagraph (A). Regulation of a contaminant 
                identified under this subparagraph shall be in 
                accordance with the schedule applicable to the 
                contaminant for which the substitution is made.
                    ``(C) Disinfectants and disinfection 
                byproducts.--The Administrator shall promulgate 
                an Interim Enhanced Surface Water Treatment 
                Rule, a Final Enhanced Surface Water Treatment 
                Rule, a Stage I Disinfectants and Disinfection 
                Byproducts Rule, and a Stage II Disinfectants 
                and Disinfection Byproducts Rule in accordance 
                with the schedule published in volume 59, 
                Federal Register, page 6361 (February 10, 
                1994), in table III.13 of the proposed 
                Information Collection Rule. If a delay occurs 
                with respect to the promulgation of any rule in 
                the schedule referred to in this subparagraph, 
                all subsequent rules shall be completed as 
                expeditiously as practicable but no later than 
                a revised date that reflects the interval or 
                intervals for the rules in the schedule.''.
    (b) Applicability of Prior Requirements.--The requirements 
of subparagraphs (C) and (D) of section 1412(b)(3) of the Safe 
Drinking Water Act as in effect before the date of enactment of 
this Act, and any obligation to promulgate regulations pursuant 
to such subparagraphs not promulgated as of the date of 
enactment of this Act, are superseded by the amendments made by 
subsection (a).
    (c) Conforming Amendments.--(1) Section 1415(d) (42 U.S.C. 
300g-4(d)) is amended by striking ``1412(b)(3)'' and inserting 
``1412(b)''.
    (2) Section 1412(a)(3) (42 U.S.C. 300g-1(a)(3)) is amended 
by striking ``paragraph (1), (2), or (3) of'' in each place it 
appears.

SEC. 103. RISK ASSESSMENT, MANAGEMENT, AND COMMUNICATION.

    Section 1412(b) (42 U.S.C. 300g-1(b)) is amended by 
inserting after paragraph (2) the following:
            ``(3) Risk assessment, management, and 
        communication.--
                    ``(A) Use of science in decisionmaking.--In 
                carrying out this section, and, to the degree 
                that an Agency action is based on science, the 
                Administrator shall use--
                            ``(i) the best available, peer-
                        reviewed science and supporting studies 
                        conducted in accordance with sound and 
                        objective scientific practices; and
                            ``(ii) data collected by accepted 
                        methods or best available methods (if 
                        the reliability of the method and the 
                        nature of the decision justifies use of 
                        the data).
                    ``(B) Public information.--In carrying out 
                this section, the Administrator shall ensure 
                that the presentation of information on public 
                health effects is comprehensive, informative, 
                and understandable. The Administrator shall, in 
                a document made available to the public in 
                support of a regulation promulgated under this 
                section, specify, to the extent practicable--
                            ``(i) each population addressed by 
                        any estimate of public health effects;
                            ``(ii) the expected risk or central 
                        estimate of risk for the specific 
                        populations;
                            ``(iii) each appropriate upper-
                        bound or lower-bound estimate of risk;
                            ``(iv) each significant uncertainty 
                        identified in the process of the 
                        assessment of public health effects and 
                        studies that would assist in resolving 
                        the uncertainty; and
                            ``(v) peer-reviewed studies known 
                        to the Administrator that support, are 
                        directly relevant to, or fail to 
                        support any estimate of public health 
                        effects and the methodology used to 
                        reconcile inconsistencies in the 
                        scientific data.
                    ``(C) Health risk reduction and cost 
                analysis.--
                            ``(i) Maximum contaminant levels.--
                        When proposing any national primary 
                        drinking water regulation that includes 
                        a maximum contaminant level, the 
                        Administrator shall, with respect to a 
                        maximum contaminant level that is being 
                        considered in accordance with paragraph 
                        (4) and each alternative maximum 
                        contaminant level that is being 
                        considered pursuant to paragraph (5) or 
                        (6)(A), publish, seek public comment 
                        on, and use for the purposes of 
                        paragraphs (4), (5), and (6) an 
                        analysis of each of the following:
                                    ``(I) Quantifiable and 
                                nonquantifiable health risk 
                                reduction benefits for which 
                                there is a factual basis in the 
                                rulemaking record to conclude 
                                that such benefits are likely 
                                to occur as the result of 
                                treatment to comply with each 
                                level.
                                    ``(II) Quantifiable and 
                                nonquantifiable health risk 
                                reduction benefits for which 
                                there is a factual basis in the 
                                rulemaking record to conclude 
                                that such benefits are likely 
                                to occur from reductions in co-
                                occurring contaminants that may 
                                be attributed solely to 
                                compliance with the maximum 
                                contaminant level, excluding 
                                benefits resulting from 
                                compliance with other proposed 
                                or promulgated regulations.
                                    ``(III) Quantifiable and 
                                nonquantifiable costs for which 
                                there is a factual basis in the 
                                rulemaking record to conclude 
                                that such costs are likely to 
                                occur solely as a result of 
                                compliance with the maximum 
                                contaminant level, including 
                                monitoring, treatment, and 
                                other costs and excluding costs 
                                resulting from compliance with 
                                other proposed or promulgated 
                                regulations.
                                    ``(IV) The incremental 
                                costs and benefits associated 
                                with each alternative maximum 
                                contaminant level considered.
                                    ``(V) The effects of the 
                                contaminant on the general 
                                population and on groups within 
                                the general population such as 
                                infants, children, pregnant 
                                women, the elderly, individuals 
                                with a history of serious 
                                illness, or other 
                                subpopulations that are 
                                identified as likely to be at 
                                greater risk of adverse health 
                                effects due to exposure to 
                                contaminants in drinking water 
                                than the general population.
                                    ``(VI) Any increased health 
                                risk that may occur as the 
                                result of compliance, including 
                                risks associated with co-
                                occurring contaminants.
                                    ``(VII) Other relevant 
                                factors, including the quality 
                                and extent of the information, 
                                the uncertainties in the 
                                analysis supporting subclauses 
                                (I) through (VI), and factors 
                                with respect to the degree and 
                                nature of the risk.
                            ``(ii) Treatment techniques.--When 
                        proposing a national primary drinking 
                        water regulation that includes a 
                        treatment technique in accordance with 
                        paragraph (7)(A), the Administrator 
                        shall publish and seek public comment 
                        on an analysis of the health risk 
                        reduction benefits and costs likely to 
                        be experienced as the result of 
                        compliance with the treatment technique 
                        and alternative treatment techniques 
                        that are being considered, taking into 
                        account, as appropriate, the factors 
                        described in clause (i).
                            ``(iii) Approaches to measure and 
                        value benefits.--The Administrator may 
                        identify valid approaches for the 
                        measurement and valuation of benefits 
                        under this subparagraph, including 
                        approaches to identify consumer 
                        willingness to pay for reductions in 
                        health risks from drinking water 
                        contaminants.
                            ``(iv) Authorization.--There are 
                        authorized to be appropriated to the 
                        Administrator, acting through the 
                        Office of Ground Water and Drinking 
                        Water, to conduct studies, assessments, 
                        and analyses in support of regulations 
                        or the development of methods, 
                        $35,000,000 for each of fiscal years 
                        1996 through 2003.''.

SEC. 104. STANDARD-SETTING.

    (a) In General.--Section 1412(b) (42 U.S.C. 300g-1(b)) is 
amended as follows:
            (1) In paragraph (4)--
                    (A) by striking ``(4) Each'' and inserting 
                the following:
            ``(4) Goals and standards.--
                    ``(A) Maximum contaminant level goals.--
                Each'';
                    (B) in the last sentence--
                            (i) by striking ``Each national'' 
                        and inserting the following:
                    ``(B) Maximum contaminant levels.--Except 
                as provided in paragraphs (5) and (6), each 
                national''; and
                            (ii) by striking ``maximum level'' 
                        and inserting ``maximum contaminant 
                        level''; and
                    (C) by adding at the end the following:
                    ``(C) Determination.--At the time the 
                Administrator proposes a national primary 
                drinking water regulation under this paragraph, 
                the Administrator shall publish a determination 
                as to whether the benefits of the maximum 
                contaminant level justify, or do not justify, 
                the costs based on the analysis conducted under 
                paragraph (3)(C).''.
            (2) By striking ``(5) For the'' and inserting the 
        following:
                    ``(D) Definition of feasible.--For the''.
            (3) In the second sentence of paragraph (4)(D) (as 
        so designated), by striking ``paragraph (4)'' and 
        inserting ``this paragraph''.
            (4) By striking ``(6) Each national'' and inserting 
        the following:
                    ``(E) Feasible technologies.--
                            ``(i) In general.--Each national''.
            (5) In paragraph (4)(E)(i) (as so designated), by 
        striking ``this paragraph'' and inserting ``this 
        subsection''.
            (6) By inserting after paragraph (4) (as so 
        amended) the following:
            ``(5) Additional health risk considerations.--
                    ``(A) In general.--Notwithstanding 
                paragraph (4), the Administrator may establish 
                a maximum contaminant level for a contaminant 
                at a level other than the feasible level, if 
                the technology, treatment techniques, and other 
                means used to determine the feasible level 
                would result in an increase in the health risk 
                from drinking water by--
                            ``(i) increasing the concentration 
                        of other contaminants in drinking 
                        water; or
                            ``(ii) interfering with the 
                        efficacy of drinking water treatment 
                        techniques or processes that are used 
                        to comply with other national primary 
                        drinking water regulations.
                    ``(B) Establishment of level.--If the 
                Administrator establishes a maximum contaminant 
                level or levels or requires the use of 
                treatment techniques for any contaminant or 
                contaminants pursuant to the authority of this 
                paragraph--
                            ``(i) the level or levels or 
                        treatment techniques shall minimize the 
                        overall risk of adverse health effects 
                        by balancing the risk from the 
                        contaminant and the risk from other 
                        contaminants the concentrations of 
                        which may be affected by the use of a 
                        treatment technique or process that 
                        would be employed to attain the maximum 
                        contaminant level or levels; and
                            ``(ii) the combination of 
                        technology, treatment techniques, or 
                        other means required to meet the level 
                        or levels shall not be more stringent 
                        than is feasible (as defined in 
                        paragraph (4)(D)).
            ``(6) Additional health risk reduction and cost 
        considerations.--
                    ``(A) In general.--Notwithstanding 
                paragraph (4), if the Administrator determines 
                based on an analysis conducted under paragraph 
                (3)(C) that the benefits of a maximum 
                contaminant level promulgated in accordance 
                with paragraph (4) would not justify the costs 
                of complying with the level, the Administrator 
                may, after notice and opportunity for public 
                comment, promulgate a maximum contaminant level 
                for the contaminant that maximizes health risk 
                reduction benefits at a cost that is justified 
                by the benefits.
                    ``(B) Exception.--The Administrator shall 
                not use the authority of this paragraph to 
                promulgate a maximum contaminant level for a 
                contaminant, if the benefits of compliance with 
                a national primary drinking water regulation 
                for the contaminant that would be promulgated 
                in accordance with paragraph (4) experienced 
                by--
                            ``(i) persons served by large 
                        public water systems; and
                            ``(ii) persons served by such other 
                        systems as are unlikely, based on 
                        information provided by the States, to 
                        receive a variance under section 
                        1415(e) (relating to small system 
                        variances);
                would justify the costs to the systems of 
                complying with the regulation. This 
                subparagraph shall not apply if the contaminant 
                is found almost exclusively in small systems 
                eligible under section 1415(e) for a small 
                system variance.
                    ``(C) Disinfectants and disinfection 
                byproducts.--The Administrator may not use the 
                authority of this paragraph to establish a 
                maximum contaminant level in a Stage I or Stage 
                II national primary drinking water regulation 
                (as described in paragraph (2)(C)) for 
                contaminants that are disinfectants or 
                disinfection byproducts, or to establish a 
                maximum contaminant level or treatment 
                technique requirement for the control of 
                cryptosporidium. The authority of this 
                paragraph may be used to establish regulations 
                for the use of disinfection by systems relying 
                on ground water sources as required by 
                paragraph (8).
                    ``(D) Judicial review.--A determination by 
                the Administrator that the benefits of a 
                maximum contaminant level or treatment 
                requirement justify or do not justify the costs 
                of complying with the level shall be reviewed 
                by the court pursuant to section 1448 only as 
                part of a review of a final national primary 
                drinking water regulation that has been 
                promulgated based on the determination and 
                shall not be set aside by the court under that 
                section unless the court finds that the 
                determination is arbitrary and capricious.''.
    (b) Disinfectants and Disinfection Byproducts.--The 
Administrator of the Environmental Protection Agency may use 
the authority of section 1412(b)(5) of the Safe Drinking Water 
Act (as amended by this Act) to promulgate the Stage I and 
Stage II Disinfectants and Disinfection Byproducts Rules as 
proposed in volume 59, Federal Register, page 38668 (July 29, 
1994). The considerations used in the development of the July 
29, 1994, proposed national primary drinking water regulation 
on disinfectants and disinfection byproducts shall be treated 
as consistent with such section 1412(b)(5) for purposes of such 
Stage I and Stage II rules.
    (c) Review of Standards.--Section 1412(b)(9) (42 U.S.C. 
300g-1(b)(9)) is amended to read as follows:
            ``(9) Review and revision.--The Administrator 
        shall, not less often than every 6 years, review and 
        revise, as appropriate, each national primary drinking 
        water regulation promulgated under this title. Any 
        revision of a national primary drinking water 
        regulation shall be promulgated in accordance with this 
        section, except that each revision shall maintain, or 
        provide for greater, protection of the health of 
        persons.''.

SEC. 105. TREATMENT TECHNOLOGIES FOR SMALL SYSTEMS.

    Section 1412(b)(4)(E) (42 U.S.C. 300g-1(b)(4)(E)) is 
amended by adding at the end the following:
                            ``(ii) List of technologies for 
                        small systems.--The Administrator shall 
                        include in the list any technology, 
                        treatment technique, or other means 
                        that is affordable, as determined by 
                        the Administrator in consultation with 
                        the States, for small public water 
                        systems serving--
                                    ``(I) a population of 
                                10,000 or fewer but more than 
                                3,300;
                                    ``(II) a population of 
                                3,300 or fewer but more than 
                                500; and
                                    ``(III) a population of 500 
                                or fewer but more than 25;
                        and that achieves compliance with the 
                        maximum contaminant level or treatment 
                        technique, including packaged or 
                        modular systems and point-of-entry or 
                        point-of-use treatment units. Point-of-
                        entry and point-of-use treatment units 
                        shall be owned, controlled and 
                        maintained by the public water system 
                        or by a person under contract with the 
                        public water system to ensure proper 
                        operation and maintenance and 
                        compliance with the maximum contaminant 
                        level or treatment technique and 
                        equipped with mechanical warnings to 
                        ensure that customers are automatically 
                        notified of operational problems. The 
                        Administrator shall not include in the 
                        list any point-of-use treatment 
                        technology, treatment technique, or 
                        other means to achieve compliance with 
                        a maximum contaminant level or 
                        treatment technique requirement for a 
                        microbial contaminant (or an indicator 
                        of a microbial contaminant). If the 
                        American National Standards Institute 
                        has issued product standards applicable 
                        to a specific type of point-of-entry or 
                        point-of-use treatment unit, individual 
                        units of that type shall not be 
                        accepted for compliance with a maximum 
                        contaminant level or treatment 
                        technique requirement unless they are 
                        independently certified in accordance 
                        with such standards. In listing any 
                        technology, treatment technique, or 
                        other means pursuant to this clause, 
                        the Administrator shall consider the 
                        quality of the source water to be 
                        treated.
                            ``(iii) List of technologies that 
                        achieve compliance.--Except as provided 
                        in clause (v), not later than 2 years 
                        after the date of enactment of this 
                        clause and after consultation with the 
                        States, the Administrator shall issue a 
                        list of technologies that achieve 
                        compliance with the maximum contaminant 
                        level or treatment technique for each 
                        category of public water systems 
                        described in subclauses (I), (II), and 
                        (III) of clause (ii) for each national 
                        primary drinking water regulation 
                        promulgated prior to the date of 
                        enactment of this paragraph.
                            ``(iv) Additional technologies.--
                        The Administrator may, at any time 
                        after a national primary drinking water 
                        regulation has been promulgated, 
                        supplement the list of technologies 
                        describing additional or new or 
                        innovative treatment technologies that 
                        meet the requirements of this paragraph 
                        for categories of small public water 
                        systems described in subclauses (I), 
                        (II), and (III) of clause (ii) that are 
                        subject to the regulation.
                            ``(v) Technologies that meet 
                        surface water treatment rule.--Within 
                        one year after the date of enactment of 
                        this clause, the Administrator shall 
                        list technologies that meet the Surface 
                        Water Treatment Rule for each category 
                        of public water systems described in 
                        subclauses (I), (II), and (III) of 
                        clause (ii).''.

SEC. 106. LIMITED ALTERNATIVE TO FILTRATION.

    Section 1412(b)(7)(C) (42 U.S.C. 300g-1(b)(7)(C)) is 
amended by adding the following after clause (iv):
    ``(v) As an additional alternative to the regulations 
promulgated pursuant to clauses (i) and (iii), including the 
criteria for avoiding filtration contained in 40 CFR 141.71, a 
State exercising primary enforcement responsibility for public 
water systems may, on a case-by-case basis, and after notice 
and opportunity for public comment, establish treatment 
requirements as an alternative to filtration in the case of 
systems having uninhabited, undeveloped watersheds in 
consolidated ownership, and having control over access to, and 
activities in, those watersheds, if the State determines (and 
the Administrator concurs) that the quality of the source water 
and the alternative treatment requirements established by the 
State ensure greater removal or inactivation efficiencies of 
pathogenic organisms for which national primary drinking water 
regulations have been promulgated or that are of public health 
concern than would be achieved by the combination of filtration 
and chlorine disinfection (in compliance with this section).''.

SEC. 107. GROUND WATER DISINFECTION.

    Paragraph (8) of section 1412(b) (42 U.S.C. 300g-1(b)(8)) 
is amended by moving the margins of such paragraph 2 ems to the 
right and by striking the first sentence and inserting the 
following: ``Disinfection.--At any time after the end of the 3-
year period that begins on the date of enactment of the Safe 
Drinking Water Act Amendments of 1996, but not later than the 
date on which the Administrator promulgates a Stage II 
rulemaking for disinfectants and disinfection byproducts (as 
described in paragraph (2)(C)), the Administrator shall also 
promulgate national primary drinking water regulations 
requiring disinfection as a treatment technique for all public 
water systems, including surface water systems and, as 
necessary, ground water systems. After consultation with the 
States, the Administrator shall (as part of the regulations) 
promulgate criteria that the Administrator, or a State that has 
primary enforcement responsibility under section 1413, shall 
apply to determine whether disinfection shall be required as a 
treatment technique for any public water system served by 
ground water.''.

SEC. 108. EFFECTIVE DATE FOR REGULATIONS.

    Section 1412(b)(10) (42 U.S.C. 300g-1(b)(10)) is amended to 
read as follows:
            ``(10) Effective date.--A national primary drinking 
        water regulation promulgated under this section (and 
        any amendment thereto) shall take effect on the date 
        that is 3 years after the date on which the regulation 
        is promulgated unless the Administrator determines that 
        an earlier date is practicable, except that the 
        Administrator, or a State (in the case of an individual 
        system), may allow up to 2 additional years to comply 
        with a maximum contaminant level or treatment technique 
        if the Administrator or State (in the case of an 
        individual system) determines that additional time is 
        necessary for capital improvements.''.

SEC. 109. ARSENIC, SULFATE, AND RADON.

    (a) Arsenic and Sulfate.--Section 1412(b) (42 U.S.C. 300g-
1(b)) is amended by inserting after paragraph (11) the 
following:
            ``(12) Certain contaminants.--
                    ``(A) Arsenic.--
                            ``(i) Schedule and standard.--
                        Notwithstanding the deadlines set forth 
                        in paragraph (1), the Administrator 
                        shall promulgate a national primary 
                        drinking water regulation for arsenic 
                        pursuant to this subsection, in 
                        accordance with the schedule 
                        established by this paragraph.
                            ``(ii) Study plan.--Not later than 
                        180 days after the date of enactment of 
                        this paragraph, the Administrator shall 
                        develop a comprehensive plan for study 
                        in support of drinking water rulemaking 
                        to reduce the uncertainty in assessing 
                        health risks associated with exposure 
                        to low levels of arsenic. In conducting 
                        such study, the Administrator shall 
                        consult with the National Academy of 
                        Sciences, other Federal agencies, and 
                        interested public and private entities.
                            ``(iii) Cooperative agreements.--In 
                        carrying out the study plan, the 
                        Administrator may enter into 
                        cooperative agreements with other 
                        Federal agencies, State and local 
                        governments, and other interested 
                        public and private entities.
                            ``(iv) Proposed regulations.--The 
                        Administrator shall propose a national 
                        primary drinking water regulation for 
                        arsenic not later than January 1, 2000.
                            ``(v) Final regulations.--Not later 
                        than January 1, 2001, after notice and 
                        opportunity for public comment, the 
                        Administrator shall promulgate a 
                        national primary drinking water 
                        regulation for arsenic.
                            ``(vi) Authorization.--There are 
                        authorized to be appropriated 
                        $2,500,000 for each of fiscal years 
                        1997 through 2000 for the studies 
                        required by this paragraph.
                    ``(B) Sulfate.--
                            ``(i) Additional study.--Prior to 
                        promulgating a national primary 
                        drinking water regulation for sulfate, 
                        the Administrator and the Director of 
                        the Centers for Disease Control and 
                        Prevention shall jointly conduct an 
                        additional study to establish a 
                        reliable dose-response relationship for 
                        the adverse human health effects that 
                        may result from exposure to sulfate in 
                        drinking water, including the health 
                        effects that may be experienced by 
                        groups within the general population 
                        (including infants and travelers) that 
                        are potentially at greater risk of 
                        adverse health effects as the result of 
                        such exposure. The study shall be 
                        conducted in consultation with 
                        interested States, shall be based on 
                        the best available, peer-reviewed 
                        science and supporting studies 
                        conducted in accordance with sound and 
                        objective scientific practices, and 
                        shall be completed not later than 30 
                        months after the date of enactment of 
                        the Safe Drinking Water Act Amendments 
                        of 1996.
                            ``(ii) Determination.--The 
                        Administrator shall include sulfate 
                        among the 5 or more contaminants for 
                        which a determination is made pursuant 
                        to paragraph (3)(B) not later than 5 
                        years after the date of enactment of 
                        the Safe Drinking Water Act Amendments 
                        of 1996.
                            ``(iii) Proposed and final rule.--
                        Notwithstanding the deadlines set forth 
                        in paragraph (2), the Administrator 
                        may, pursuant to the authorities of 
                        this subsection and after notice and 
                        opportunity for public comment, 
                        promulgate a final national primary 
                        drinking water regulation for sulfate. 
                        Any such regulation shall include 
                        requirements for public notification 
                        and options for the provision of 
                        alternative water supplies to 
                        populations at risk as a means of 
                        complying with the regulation in lieu 
                        of a best available treatment 
                        technology or other means.''.
    (b) Radon.--Section 1412(b) (42 U.S.C. 300g-1(b)) is 
amended by inserting after paragraph (12) the following:
            ``(13) Radon in drinking water.--
                    ``(A) National primary drinking water 
                regulation.--Notwithstanding paragraph (2), the 
                Administrator shall withdraw any national 
                primary drinking water regulation for radon 
                proposed prior to the date of enactment of this 
                paragraph and shall propose and promulgate a 
                regulation for radon under this section, as 
                amended by the Safe Drinking Water Act 
                Amendments of 1996.
                    ``(B) Risk assessment and studies.--
                            ``(i) Assessment by nas.--Prior to 
                        proposing a national primary drinking 
                        water regulation for radon, the 
                        Administrator shall arrange for the 
                        National Academy of Sciences to prepare 
                        a risk assessment for radon in drinking 
                        water using the best available science 
                        in accordance with the requirements of 
                        paragraph (3). The risk assessment 
                        shall consider each of the risks 
                        associated with exposure to radon from 
                        drinking water and consider studies on 
                        the health effects of radon at levels 
                        and under conditions likely to be 
                        experienced through residential 
                        exposure. The risk assessment shall be 
                        peer-reviewed.
                            ``(ii) Study of other measures.--
                        The Administrator shall arrange for the 
                        National Academy of Sciences to prepare 
                        an assessment of the health risk 
                        reduction benefits associated with 
                        various mitigation measures to reduce 
                        radon levels in indoor air. The 
                        assessment may be conducted as part of 
                        the risk assessment authorized by 
                        clause (i) and shall be used by the 
                        Administrator to prepare the guidance 
                        and approve State programs under 
                        subparagraph (G).
                            ``(iii) Other organization.--If the 
                        National Academy of Sciences declines 
                        to prepare the risk assessment or 
                        studies required by this subparagraph, 
                        the Administrator shall enter into a 
                        contract or cooperative agreement with 
                        another independent, scientific 
                        organization to prepare such 
                        assessments or studies.
                    ``(C) Health risk reduction and cost 
                analysis.--Not later than 30 months after the 
                date of enactment of this paragraph, the 
                Administrator shall publish, and seek public 
                comment on, a health risk reduction and cost 
                analysis meeting the requirements of paragraph 
                (3)(C) for potential maximum contaminant levels 
                that are being considered for radon in drinking 
                water. The Administrator shall include a 
                response to all significant public comments 
                received on the analysis with the preamble for 
                the proposed rule published under subparagraph 
                (D).
                    ``(D) Proposed regulation.--Not later than 
                36 months after the date of enactment of this 
                paragraph, the Administrator shall propose a 
                maximum contaminant level goal and a national 
                primary drinking water regulation for radon 
                pursuant to this section.
                    ``(E) Final regulation.--Not later than 12 
                months after the date of the proposal under 
                subparagraph (D), the Administrator shall 
                publish a maximum contaminant level goal and 
                promulgate a national primary drinking water 
                regulation for radon pursuant to this section 
                based on the risk assessment prepared pursuant 
                to subparagraph (B) and the health risk 
                reduction and cost analysis published pursuant 
                to subparagraph (C). In considering the risk 
                assessment and the health risk reduction and 
                cost analysis in connection with the 
                promulgation of such a standard, the 
                Administrator shall take into account the costs 
                and benefits of control programs for radon from 
                other sources.
                    ``(F) Alternative maximum contaminant 
                level.--If the maximum contaminant level for 
                radon in drinking water promulgated pursuant to 
                subparagraph (E) is more stringent than 
                necessary to reduce the contribution to radon 
                in indoor air from drinking water to a 
                concentration that is equivalent to the 
                national average concentration of radon in 
                outdoor air, the Administrator shall, 
                simultaneously with the promulgation of such 
                level, promulgate an alternative maximum 
                contaminant level for radon that would result 
                in a contribution of radon from drinking water 
                to radon levels in indoor air equivalent to the 
                national average concentration of radon in 
                outdoor air. If the Administrator promulgates 
                an alternative maximum contaminant level under 
                this subparagraph, the Administrator shall, 
                after notice and opportunity for public comment 
                and in consultation with the States, publish 
                guidelines for State programs, including 
                criteria for multimedia measures to mitigate 
                radon levels in indoor air, to be used by the 
                States in preparing programs under subparagraph 
                (G). The guidelines shall take into account 
                data from existing radon mitigation programs 
                and the assessment of mitigation measures 
                prepared under subparagraph (B).
                    ``(G) Multimedia radon mitigation 
                programs.--
                            ``(i) In general.--A State may 
                        develop and submit a multimedia program 
                        to mitigate radon levels in indoor air 
                        for approval by the Administrator under 
                        this subparagraph. If, after notice and 
                        the opportunity for public comment, 
                        such program is approved by the 
                        Administrator, public water systems in 
                        the State may comply with the 
                        alternative maximum contaminant level 
                        promulgated under subparagraph (F) in 
                        lieu of the maximum contaminant level 
                        in the national primary drinking water 
                        regulation promulgated under 
                        subparagraph (E).
                            ``(ii) Elements of programs.--State 
                        programs may rely on a variety of 
                        mitigation measures including public 
                        education, testing, training, technical 
                        assistance, remediation grant and loan 
                        or incentive programs, or other 
                        regulatory or nonregulatory measures. 
                        The effectiveness of elements in State 
                        programs shall be evaluated by the 
                        Administrator based on the assessment 
                        prepared by the National Academy of 
                        Sciences under subparagraph (B) and the 
                        guidelines published by the 
                        Administrator under subparagraph (F).
                            ``(iii) Approval.--The 
                        Administrator shall approve a State 
                        program submitted under this paragraph 
                        if the health risk reduction benefits 
                        expected to be achieved by the program 
                        are equal to or greater than the health 
                        risk reduction benefits that would be 
                        achieved if each public water system in 
                        the State complied with the maximum 
                        contaminant level promulgated under 
                        subparagraph (E). The Administrator 
                        shall approve or disapprove a program 
                        submitted under this paragraph within 
                        180 days of receipt. A program that is 
                        not disapproved during such period 
                        shall be deemed approved. A program 
                        that is disapproved may be modified to 
                        address the objections of the 
                        Administrator and be resubmitted for 
                        approval.
                            ``(iv) Review.--The Administrator 
                        shall periodically, but not less often 
                        than every 5 years, review each 
                        multimedia mitigation program approved 
                        under this subparagraph to determine 
                        whether it continues to meet the 
                        requirements of clause (iii) and shall, 
                        after written notice to the State and 
                        an opportunity for the State to correct 
                        any deficiency in the program, withdraw 
                        approval of programs that no longer 
                        comply with such requirements.
                            ``(v) Extension.--If, within 90 
                        days after the promulgation of an 
                        alternative maximum contaminant level 
                        under subparagraph (F), the Governor of 
                        a State submits a letter to the 
                        Administrator committing to develop a 
                        multimedia mitigation program under 
                        this subparagraph, the effective date 
                        of the national primary drinking water 
                        regulation for radon in the State that 
                        would be applicable under paragraph 
                        (10) shall be extended for a period of 
                        18 months.
                            ``(vi) Local programs.--In the 
                        event that a State chooses not to 
                        submit a multimedia mitigation program 
                        for approval under this subparagraph or 
                        has submitted a program that has been 
                        disapproved, any public water system in 
                        the State may submit a program for 
                        approval by the Administrator according 
                        to the same criteria, conditions, and 
                        approval process that would apply to a 
                        State program. The Administrator shall 
                        approve a multimedia mitigation program 
                        if the health risk reduction benefits 
                        expected to be achieved by the program 
                        are equal to or greater than the health 
                        risk reduction benefits that would 
                        result from compliance by the public 
                        water system with the maximum 
                        contaminant level for radon promulgated 
                        under subparagraph (E).''.

SEC. 110. RECYCLING OF FILTER BACKWASH.

    Section 1412(b) (42 U.S.C. 300g-1(b)) is amended by adding 
the following new paragraph after paragraph (13):
            ``(14) Recycling of filter backwash.--The 
        Administrator shall promulgate a regulation to govern 
        the recycling of filter backwash water within the 
        treatment process of a public water system. The 
        Administrator shall promulgate such regulation not 
        later than 4 years after the date of enactment of the 
        Safe Drinking Water Act Amendments of 1996 unless such 
        recycling has been addressed by the Administrator's 
        Enhanced Surface Water Treatment Rule prior to such 
        date.''.

SEC. 111. TECHNOLOGY AND TREATMENT TECHNIQUES.

    (a) Variance Technologies.--Section 1412(b) (42 U.S.C. 
300g-1(b)) is amended by adding the following new paragraph 
after paragraph (14):
            ``(15) Variance technologies.--
                    ``(A) In general.--At the same time as the 
                Administrator promulgates a national primary 
                drinking water regulation for a contaminant 
                pursuant to this section, the Administrator 
                shall issue guidance or regulations describing 
                the best treatment technologies, treatment 
                techniques, or other means (referred to in this 
                paragraph as `variance technology') for the 
                contaminant that the Administrator finds, after 
                examination for efficacy under field conditions 
                and not solely under laboratory conditions, are 
                available and affordable, as determined by the 
                Administrator in consultation with the States, 
                for public water systems of varying size, 
                considering the quality of the source water to 
                be treated. The Administrator shall identify 
                such variance technologies for public water 
                systems serving--
                            ``(i) a population of 10,000 or 
                        fewer but more than 3,300;
                            ``(ii) a population of 3,300 or 
                        fewer but more than 500; and
                            ``(iii) a population of 500 or 
                        fewer but more than 25,
                if, considering the quality of the source water 
                to be treated, no treatment technology is 
                listed for public water systems of that size 
                under paragraph (4)(E). Variance technologies 
                identified by the Administrator pursuant to 
                this paragraph may not achieve compliance with 
                the maximum contaminant level or treatment 
                technique requirement of such regulation, but 
                shall achieve the maximum reduction or 
                inactivation efficiency that is affordable 
                considering the size of the system and the 
                quality of the source water. The guidance or 
                regulations shall not require the use of a 
                technology from a specific manufacturer or 
                brand.
                    ``(B) Limitation.--The Administrator shall 
                not identify any variance technology under this 
                paragraph, unless the Administrator has 
                determined, considering the quality of the 
                source water to be treated and the expected 
                useful life of the technology, that the 
                variance technology is protective of public 
                health.
                    ``(C) Additional information.--The 
                Administrator shall include in the guidance or 
                regulations identifying variance technologies 
                under this paragraph any assumptions supporting 
                the public health determination referred to in 
                subparagraph (B), where such assumptions 
                concern the public water system to which the 
                technology may be applied, or its source 
                waters. The Administrator shall provide any 
                assumptions used in determining affordability, 
                taking into consideration the number of persons 
                served by such systems. The Administrator shall 
                provide as much reliable information as 
                practicable on performance, effectiveness, 
                limitations, costs, and other relevant factors 
                including the applicability of variance 
                technology to waters from surface and 
                underground sources.
                    ``(D) Regulations and guidance.--Not later 
                than 2 years after the date of enactment of 
                this paragraph and after consultation with the 
                States, the Administrator shall issue guidance 
                or regulations under subparagraph (A) for each 
                national primary drinking water regulation 
                promulgated prior to the date of enactment of 
                this paragraph for which a variance may be 
                granted under section 1415(e). The 
                Administrator may, at any time after a national 
                primary drinking water regulation has been 
                promulgated, issue guidance or regulations 
                describing additional variance technologies. 
                The Administrator shall, not less often than 
                every 7 years, or upon receipt of a petition 
                supported by substantial information, review 
                variance technologies identified under this 
                paragraph. The Administrator shall issue 
                revised guidance or regulations if new or 
                innovative variance technologies become 
                available that meet the requirements of this 
                paragraph and achieve an equal or greater 
                reduction or inactivation efficiency than the 
                variance technologies previously identified 
                under this subparagraph. No public water system 
                shall be required to replace a variance 
                technology during the useful life of the 
                technology for the sole reason that a more 
                efficient variance technology has been listed 
                under this subparagraph.''.
    (b) Availability of Information on Small System 
Technologies.--Section 1445 (42 U.S.C. 300j-4) is amended by 
adding the following new subsection after subsection (g):
    ``(h) Availability of Information on Small System 
Technologies.--For purposes of sections 1412(b)(4)(E) and 
1415(e) (relating to small system variance program), the 
Administrator may request information on the characteristics of 
commercially available treatment systems and technologies, 
including the effectiveness and performance of the systems and 
technologies under various operating conditions. The 
Administrator may specify the form, content, and submission 
date of information to be submitted by manufacturers, States, 
and other interested persons for the purpose of considering the 
systems and technologies in the development of regulations or 
guidance under sections 1412(b)(4)(E) and 1415(e).''.

SEC. 112. STATE PRIMACY.

    (a) State Primary Enforcement Responsibility.--Section 1413 
(42 U.S.C. 300g-2) is amended as follows:
            (1) In subsection (a), by amending paragraph (1) to 
        read as follows:
            ``(1) has adopted drinking water regulations that 
        are no less stringent than the national primary 
        drinking water regulations promulgated by the 
        Administrator under subsections (a) and (b) of section 
        1412 not later than 2 years after the date on which the 
        regulations are promulgated by the Administrator, 
        except that the Administrator may provide for an 
        extension of not more than 2 years if, after submission 
        and review of appropriate, adequate documentation from 
        the State, the Administrator determines that the 
        extension is necessary and justified;''.
            (2) By adding at the end the following subsection:
    ``(c) Interim Primary Enforcement Authority.--A State that 
has primary enforcement authority under this section with 
respect to each existing national primary drinking water 
regulation shall be considered to have primary enforcement 
authority with respect to each new or revised national primary 
drinking water regulation during the period beginning on the 
effective date of a regulation adopted and submitted by the 
State with respect to the new or revised national primary 
drinking water regulation in accordance with subsection (b)(1) 
and ending at such time as the Administrator makes a 
determination under subsection (b)(2)(B) with respect to the 
regulation.''.
    (b) Emergency Plans.--Section 1413(a)(5) (42 U.S.C. 300g-
2(a)(5)) is amended by inserting after ``emergency 
circumstances'' the following: ``including earthquakes, floods, 
hurricanes, and other natural disasters, as appropriate''.

SEC. 113. ENFORCEMENT; JUDICIAL REVIEW.

    (a) In General.--Section 1414 (42 U.S.C. 300g-3) is amended 
as follows:
            (1) In subsection (a)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A)--
                                    (I) in clause (i), by 
                                striking ``any national primary 
                                drinking water regulation in 
                                effect under section 1412'' and 
                                inserting ``any applicable 
                                requirement''; and
                                    (II) by striking ``with 
                                such regulation or 
                                requirement'' and inserting 
                                ``with the requirement''; and
                            (ii) in subparagraph (B), by 
                        striking ``regulation or'' and 
                        inserting ``applicable''; and
                    (B) by striking paragraph (2) and inserting 
                the following:
            ``(2) Enforcement in nonprimacy states.--
                    ``(A) In general.--If, on the basis of 
                information available to the Administrator, the 
                Administrator finds, with respect to a period 
                in which a State does not have primary 
                enforcement responsibility for public water 
                systems, that a public water system in the 
                State--
                            ``(i) for which a variance under 
                        section 1415 or an exemption under 
                        section 1416 is not in effect, does not 
                        comply with any applicable requirement; 
                        or
                            ``(ii) for which a variance under 
                        section 1415 or an exemption under 
                        section 1416 is in effect, does not 
                        comply with any schedule or other 
                        requirement imposed pursuant to the 
                        variance or exemption;
                the Administrator shall issue an order under 
                subsection (g) requiring the public water 
                system to comply with the requirement, or 
                commence a civil action under subsection (b).
                    ``(B) Notice.--If the Administrator takes 
                any action pursuant to this paragraph, the 
                Administrator shall notify an appropriate local 
                elected official, if any, with jurisdiction 
                over the public water system of the action 
                prior to the time that the action is taken.''.
            (2) In the first sentence of subsection (b), by 
        striking ``a national primary drinking water 
        regulation'' and inserting ``any applicable 
        requirement''.
            (3) In subsection (g)--
                    (A) in paragraph (1), by striking 
                ``regulation, schedule, or other'' each place 
                it appears and inserting ``applicable'';
                    (B) in paragraph (2)--
                            (i) in the first sentence--
                                    (I) by striking ``effect 
                                until after notice and 
                                opportunity for public hearing 
                                and,'' and inserting 
                                ``effect,''; and
                                    (II) by striking ``proposed 
                                order'' and inserting 
                                ``order''; and
                            (ii) in the second sentence, by 
                        striking ``proposed to be''; and
                    (C) in paragraph (3)--
                            (i) by striking subparagraph (B) 
                        and inserting the following:
    ``(B) In a case in which a civil penalty sought by the 
Administrator under this paragraph does not exceed $5,000, the 
penalty shall be assessed by the Administrator after notice and 
opportunity for a public hearing (unless the person against 
whom the penalty is assessed requests a hearing on the record 
in accordance with section 554 of title 5, United States Code). 
In a case in which a civil penalty sought by the Administrator 
under this paragraph exceeds $5,000, but does not exceed 
$25,000, the penalty shall be assessed by the Administrator 
after notice and opportunity for a hearing on the record in 
accordance with section 554 of title 5, United States Code.''; 
and
                            (ii) in subparagraph (C), by 
                        striking ``paragraph exceeds $5,000'' 
                        and inserting ``subsection for a 
                        violation of an applicable requirement 
                        exceeds $25,000''.
            (4) By adding at the end the following:
    ``(h) Consolidation Incentive.--
            ``(1) In general.--An owner or operator of a public 
        water system may submit to the State in which the 
        system is located (if the State has primary enforcement 
        responsibility under section 1413) or to the 
        Administrator (if the State does not have primary 
        enforcement responsibility) a plan (including specific 
        measures and schedules) for--
                    ``(A) the physical consolidation of the 
                system with 1 or more other systems;
                    ``(B) the consolidation of significant 
                management and administrative functions of the 
                system with 1 or more other systems; or
                    ``(C) the transfer of ownership of the 
                system that may reasonably be expected to 
                improve drinking water quality.
            ``(2) Consequences of approval.--If the State or 
        the Administrator approves a plan pursuant to paragraph 
        (1), no enforcement action shall be taken pursuant to 
        this part with respect to a specific violation 
        identified in the approved plan prior to the date that 
        is the earlier of the date on which consolidation is 
        completed according to the plan or the date that is 2 
        years after the plan is approved.
    ``(i) Definition of Applicable Requirement.--In this 
section, the term `applicable requirement' means--
            ``(1) a requirement of section 1412, 1414, 1415, 
        1416, 1417, 1441, or 1445;
            ``(2) a regulation promulgated pursuant to a 
        section referred to in paragraph (1);
            ``(3) a schedule or requirement imposed pursuant to 
        a section referred to in paragraph (1); and
            ``(4) a requirement of, or permit issued under, an 
        applicable State program for which the Administrator 
        has made a determination that the requirements of 
        section 1413 have been satisfied, or an applicable 
        State program approved pursuant to this part.''.
    (b) State Authority for Administrative Penalties.--Section 
1413(a) (42 U.S.C. 300g-2(a)) is amended--
            (1) by striking ``and'' at the end of paragraph 
        (4);
            (2) by striking the period at the end of paragraph 
        (5) and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) has adopted authority for administrative 
        penalties (unless the constitution of the State 
        prohibits the adoption of the authority) in a maximum 
        amount--
                    ``(A) in the case of a system serving a 
                population of more than 10,000, that is not 
                less than $1,000 per day per violation; and
                    ``(B) in the case of any other system, that 
                is adequate to ensure compliance (as determined 
                by the State);
        except that a State may establish a maximum limitation 
        on the total amount of administrative penalties that 
        may be imposed on a public water system per 
        violation.''.
    (c) Judicial Review.--Section 1448(a) (42 U.S.C. 300j-7(a)) 
is amended--
            (1) in paragraph (2) of the first sentence, by 
        inserting ``final'' after ``any other'';
            (2) in the second sentence, by striking ``or 
        issuance of the order'' and inserting ``or any other 
        final Agency action''; and
            (3) by adding at the end the following ``In any 
        petition concerning the assessment of a civil penalty 
        pursuant to section 1414(g)(3)(B), the petitioner shall 
        simultaneously send a copy of the complaint by 
        certified mail to the Administrator and the Attorney 
        General. The court shall set aside and remand the 
        penalty order if the court finds that there is not 
        substantial evidence in the record to support the 
        finding of a violation or that the assessment of the 
        penalty by the Administrator constitutes an abuse of 
        discretion.''.
    (d) Emergency Powers.--Section 1431(b) (42 U.S.C. 300i(b)) 
is amended by striking ``$5,000'' and inserting ``$15,000''.

SEC. 114. PUBLIC NOTIFICATION.

    (a) Public Water Systems.--Section 1414(c) (42 U.S.C. 300g-
3(c)) is amended to read as follows:
    ``(c) Notice to Persons Served.--
            ``(1) In general.--Each owner or operator of a 
        public water system shall give notice of each of the 
        following to the persons served by the system:
                    ``(A) Notice of any failure on the part of 
                the public water system to--
                            ``(i) comply with an applicable 
                        maximum contaminant level or treatment 
                        technique requirement of, or a testing 
                        procedure prescribed by, a national 
                        primary drinking water regulation; or
                            ``(ii) perform monitoring required 
                        by section 1445(a).
                    ``(B) If the public water system is subject 
                to a variance granted under subsection 
                (a)(1)(A), (a)(2), or (e) of section 1415 for 
                an inability to meet a maximum contaminant 
                level requirement or is subject to an exemption 
                granted under section 1416, notice of--
                            ``(i) the existence of the variance 
                        or exemption; and
                            ``(ii) any failure to comply with 
                        the requirements of any schedule 
                        prescribed pursuant to the variance or 
                        exemption.
                    ``(C) Notice of the concentration level of 
                any unregulated contaminant for which the 
                Administrator has required public notice 
                pursuant to paragraph (2)(E).
            ``(2) Form, manner, and frequency of notice.--
                    ``(A) In general.--The Administrator shall, 
                by regulation, and after consultation with the 
                States, prescribe the manner, frequency, form, 
                and content for giving notice under this 
                subsection. The regulations shall--
                            ``(i) provide for different 
                        frequencies of notice based on the 
                        differences between violations that are 
                        intermittent or infrequent and 
                        violations that are continuous or 
                        frequent; and
                            ``(ii) take into account the 
                        seriousness of any potential adverse 
                        health effects that may be involved.
                    ``(B) State requirements.--
                            ``(i) In general.--A State may, by 
                        rule, establish alternative 
                        notification requirements--
                                    ``(I) with respect to the 
                                form and content of notice 
                                given under and in a manner in 
                                accordance with subparagraph 
                                (C); and
                                    ``(II) with respect to the 
                                form and content of notice 
                                given under subparagraph (D).
                            ``(ii) Contents.--The alternative 
                        requirements shall provide the same 
                        type and amount of information as 
                        required pursuant to this subsection 
                        and regulations issued under 
                        subparagraph (A).
                            ``(iii) Relationship to section 
                        1413.--Nothing in this subparagraph 
                        shall be construed or applied to modify 
                        the requirements of section 1413.
                    ``(C) Violations with potential to have 
                serious adverse effects on human health.--
                Regulations issued under subparagraph (A) shall 
                specify notification procedures for each 
                violation by a public water system that has the 
                potential to have serious adverse effects on 
                human health as a result of short-term 
                exposure. Each notice of violation provided 
                under this subparagraph shall--
                            ``(i) be distributed as soon as 
                        practicable after the occurrence of the 
                        violation, but not later than 24 hours 
                        after the occurrence of the violation;
                            ``(ii) provide a clear and readily 
                        understandable explanation of--
                                    ``(I) the violation;
                                    ``(II) the potential 
                                adverse effects on human 
                                health;
                                    ``(III) the steps that the 
                                public water system is taking 
                                to correct the violation; and
                                    ``(IV) the necessity of 
                                seeking alternative water 
                                supplies until the violation is 
                                corrected;
                            ``(iii) be provided to the 
                        Administrator or the head of the State 
                        agency that has primary enforcement 
                        responsibility under section 1413 as 
                        soon as practicable, but not later than 
                        24 hours after the occurrence of the 
                        violation; and
                            ``(iv) as required by the State 
                        agency in general regulations of the 
                        State agency, or on a case-by-case 
                        basis after the consultation referred 
                        to in clause (iii), considering the 
                        health risks involved--
                                    ``(I) be provided to 
                                appropriate broadcast media;
                                    ``(II) be prominently 
                                published in a newspaper of 
                                general circulation serving the 
                                area not later than 1 day after 
                                distribution of a notice 
                                pursuant to clause (i) or the 
                                date of publication of the next 
                                issue of the newspaper; or
                                    ``(III) be provided by 
                                posting or door-to-door 
                                notification in lieu of 
                                notification by means of 
                                broadcast media or newspaper.
                    ``(D) Written notice.--
                            ``(i) In general.--Regulations 
                        issued under subparagraph (A) shall 
                        specify notification procedures for 
                        violations other than the violations 
                        covered by subparagraph (C). The 
                        procedures shall specify that a public 
                        water system shall provide written 
                        notice to each person served by the 
                        system by notice (I) in the first bill 
                        (if any) prepared after the date of 
                        occurrence of the violation, (II) in an 
                        annual report issued not later than 1 
                        year after the date of occurrence of 
                        the violation, or (III) by mail or 
                        direct delivery as soon as practicable, 
                        but not later than 1 year after the 
                        date of occurrence of the violation.
                            ``(ii) Form and manner of notice.--
                        The Administrator shall prescribe the 
                        form and manner of the notice to 
                        provide a clear and readily 
                        understandable explanation of the 
                        violation, any potential adverse health 
                        effects, and the steps that the system 
                        is taking to seek alternative water 
                        supplies, if any, until the violation 
                        is corrected.
                    ``(E) Unregulated contaminants.--The 
                Administrator may require the owner or operator 
                of a public water system to give notice to the 
                persons served by the system of the 
                concentration levels of an unregulated 
                contaminant required to be monitored under 
                section 1445(a).
            ``(3) Reports.--
                    ``(A) Annual report by state.--
                            ``(i) In general.--Not later than 
                        January 1, 1998, and annually 
                        thereafter, each State that has primary 
                        enforcement responsibility under 
                        section 1413 shall prepare, make 
                        readily available to the public, and 
                        submit to the Administrator an annual 
                        report on violations of national 
                        primary drinking water regulations by 
                        public water systems in the State, 
                        including violations with respect to 
                        (I) maximum contaminant levels, (II) 
                        treatment requirements, (III) variances 
                        and exemptions, and (IV) monitoring 
                        requirements determined to be 
                        significant by the Administrator after 
                        consultation with the States.
                            ``(ii) Distribution.--The State 
                        shall publish and distribute summaries 
                        of the report and indicate where the 
                        full report is available for review.
                    ``(B) Annual report by administrator.--Not 
                later than July 1, 1998, and annually 
                thereafter, the Administrator shall prepare and 
                make available to the public an annual report 
                summarizing and evaluating reports submitted by 
                States pursuant to subparagraph (A) and notices 
                submitted by public water systems serving 
                Indian Tribes provided to the Administrator 
                pursuant to subparagraph (C) or (D) of 
                paragraph (2) and making recommendations 
                concerning the resources needed to improve 
                compliance with this title. The report shall 
                include information about public water system 
                compliance on Indian reservations and about 
                enforcement activities undertaken and financial 
                assistance provided by the Administrator on 
                Indian reservations, and shall make specific 
                recommendations concerning the resources needed 
                to improve compliance with this title on Indian 
                reservations.
            ``(4) Consumer confidence reports by community 
        water systems.--
                    ``(A) Annual reports to consumers.--The 
                Administrator, in consultation with public 
                water systems, environmental groups, public 
                interest groups, risk communication experts, 
                and the States, and other interested parties, 
                shall issue regulations within 24 months after 
                the date of enactment of this paragraph to 
                require each community water system to mail to 
                each customer of the system at least once 
                annually a report on the level of contaminants 
                in the drinking water purveyed by that system 
                (referred to in this paragraph as a `consumer 
                confidence report'). Such regulations shall 
                provide a brief and plainly worded definition 
                of the terms `maximum contaminant level goal', 
                `maximum contaminant level', `variances', and 
                `exemptions' and brief statements in plain 
                language regarding the health concerns that 
                resulted in regulation of each regulated 
                contaminant. The regulations shall also include 
                a brief and plainly worded explanation 
                regarding contaminants that may reasonably be 
                expected to be present in drinking water, 
                including bottled water. The regulations shall 
                also provide for an Environmental Protection 
                Agency toll-free hotline that consumers can 
                call for more information and explanation.
                    ``(B) Contents of report.--The consumer 
                confidence reports under this paragraph shall 
                include, but not be limited to, each of the 
                following:
                            ``(i) Information on the source of 
                        the water purveyed.
                            ``(ii) A brief and plainly worded 
                        definition of the terms `maximum 
                        contaminant level goal', `maximum 
                        contaminant level', `variances', and 
                        `exemptions' as provided in the 
                        regulations of the Administrator.
                            ``(iii) If any regulated 
                        contaminant is detected in the water 
                        purveyed by the public water system, a 
                        statement setting forth (I) the maximum 
                        contaminant level goal, (II) the 
                        maximum contaminant level, (III) the 
                        level of such contaminant in such water 
                        system, and (IV) for any regulated 
                        contaminant for which there has been a 
                        violation of the maximum contaminant 
                        level during the year concerned, the 
                        brief statement in plain language 
                        regarding the health concerns that 
                        resulted in regulation of such 
                        contaminant, as provided by the 
                        Administrator in regulations under 
                        subparagraph (A).
                            ``(iv) Information on compliance 
                        with national primary drinking water 
                        regulations, as required by the 
                        Administrator, and notice if the system 
                        is operating under a variance or 
                        exemption and the basis on which the 
                        variance or exemption was granted.
                            ``(v) Information on the levels of 
                        unregulated contaminants for which 
                        monitoring is required under section 
                        1445(a)(2) (including levels of 
                        cryptosporidium and radon where States 
                        determine they may be found).
                            ``(vi) A statement that the 
                        presence of contaminants in drinking 
                        water does not necessarily indicate 
                        that the drinking water poses a health 
                        risk and that more information about 
                        contaminants and potential health 
                        effects can be obtained by calling the 
                        Environmental Protection Agency 
                        hotline.
                A public water system may include such 
                additional information as it deems appropriate 
                for public education. The Administrator may, 
                for not more than 3 regulated contaminants 
                other than those referred to in subclause (IV) 
                of clause (iii), require a consumer confidence 
                report under this paragraph to include the 
                brief statement in plain language regarding the 
                health concerns that resulted in regulation of 
                the contaminant or contaminants concerned, as 
                provided by the Administrator in regulations 
                under subparagraph (A).
                    ``(C) Coverage.--The Governor of a State 
                may determine not to apply the mailing 
                requirement of subparagraph (A) to a community 
                water system serving fewer than 10,000 persons. 
                Any such system shall--
                            ``(i) inform, in the newspaper 
                        notice required by clause (iii) or by 
                        other means, its customers that the 
                        system will not be mailing the report 
                        as required by subparagraph (A);
                            ``(ii) make the consumer confidence 
                        report available upon request to the 
                        public; and
                            ``(iii) publish the report referred 
                        to in subparagraph (A) annually in one 
                        or more local newspapers serving the 
                        area in which customers of the system 
                        are located.
                    ``(D) Alternative to publication.--For any 
                community water system which, pursuant to 
                subparagraph (C), is not required to meet the 
                mailing requirement of subparagraph (A) and 
                which serves 500 persons or fewer, the 
                community water system may elect not to comply 
                with clause (i) or (iii) of subparagraph (C). 
                If the community water system so elects, the 
                system shall, at a minimum--
                            ``(i) prepare an annual consumer 
                        confidence report pursuant to 
                        subparagraph (B); and
                            ``(ii) provide notice at least once 
                        per year to each of its customers by 
                        mail, by door-to-door delivery, by 
                        posting or by other means authorized by 
                        the regulations of the Administrator 
                        that the consumer confidence report is 
                        available upon request.
                    ``(E) Alternative form and content.--A 
                State exercising primary enforcement 
                responsibility may establish, by rule, after 
                notice and public comment, alternative 
                requirements with respect to the form and 
                content of consumer confidence reports under 
                this paragraph.''.
    (b) Bottled Water Study.--Not later than 18 months after 
the date of enactment of this Act, the Administrator of the 
Food and Drug Administration, in consultation with the 
Administrator of the Environmental Protection Agency, shall 
publish for public notice and comment a draft study on the 
feasibility of appropriate methods, if any, of informing 
customers of the contents of bottled water. The Administrator 
of the Food and Drug Administration shall publish a final study 
not later than 30 months after the date of enactment of this 
Act.

SEC. 115. VARIANCES.

    The second sentence of section 1415(a)(1)(A) (42 U.S.C. 
300g-4(a)(1)(A)) is amended--
            (1) by striking ``only be issued to a system after 
        the system's application of'' and inserting ``be issued 
        to a system on condition that the system install''; and
            (2) by inserting before the period at the end the 
        following: ``, and based upon an evaluation 
        satisfactory to the State that indicates that 
        alternative sources of water are not reasonably 
        available to the system''.

SEC. 116. SMALL SYSTEMS VARIANCES.

    (a) Small System Variances.--Section 1415 (42 U.S.C. 300g-
4) is amended by adding at the end the following:
    ``(e) Small System Variances.--
            ``(1) In general.--A State exercising primary 
        enforcement responsibility for public water systems 
        under section 1413 (or the Administrator in nonprimacy 
        States) may grant a variance under this subsection for 
        compliance with a requirement specifying a maximum 
        contaminant level or treatment technique contained in a 
        national primary drinking water regulation to--
                    ``(A) public water systems serving 3,300 or 
                fewer persons; and
                    ``(B) with the approval of the 
                Administrator pursuant to paragraph (9), public 
                water systems serving more than 3,300 persons 
                but fewer than 10,000 persons,
        if the variance meets each requirement of this 
        subsection.
            ``(2) Availability of variances.--A public water 
        system may receive a variance pursuant to paragraph 
        (1), if--
                    ``(A) the Administrator has identified a 
                variance technology under section 1412(b)(15) 
                that is applicable to the size and source water 
                quality conditions of the public water system;
                    ``(B) the public water system installs, 
                operates, and maintains, in accordance with 
                guidance or regulations issued by the 
                Administrator, such treatment technology, 
                treatment technique, or other means; and
                    ``(C) the State in which the system is 
                located determines that the conditions of 
                paragraph (3) are met.
            ``(3) Conditions for granting variances.--A 
        variance under this subsection shall be available only 
        to a system--
                    ``(A) that cannot afford to comply, in 
                accordance with affordability criteria 
                established by the Administrator (or the State 
                in the case of a State that has primary 
                enforcement responsibility under section 1413), 
                with a national primary drinking water 
                regulation, including compliance through--
                            ``(i) treatment;
                            ``(ii) alternative source of water 
                        supply; or
                            ``(iii) restructuring or 
                        consolidation (unless the Administrator 
                        (or the State in the case of a State 
                        that has primary enforcement 
                        responsibility under section 1413) 
                        makes a written determination that 
                        restructuring or consolidation is not 
                        practicable); and
                    ``(B) for which the Administrator (or the 
                State in the case of a State that has primary 
                enforcement responsibility under section 1413) 
                determines that the terms of the variance 
                ensure adequate protection of human health, 
                considering the quality of the source water for 
                the system and the removal efficiencies and 
                expected useful life of the treatment 
                technology required by the variance.
            ``(4) Compliance schedules.--A variance granted 
        under this subsection shall require compliance with the 
        conditions of the variance not later than 3 years after 
        the date on which the variance is granted, except that 
        the Administrator (or the State in the case of a State 
        that has primary enforcement responsibility under 
        section 1413) may allow up to 2 additional years to 
        comply with a variance technology, secure an 
        alternative source of water, restructure or consolidate 
        if the Administrator (or the State) determines that 
        additional time is necessary for capital improvements, 
        or to allow for financial assistance provided pursuant 
        to section 1452 or any other Federal or State program.
            ``(5) Duration of variances.--The Administrator (or 
        the State in the case of a State that has primary 
        enforcement responsibility under section 1413) shall 
        review each variance granted under this subsection not 
        less often than every 5 years after the compliance date 
        established in the variance to determine whether the 
        system remains eligible for the variance and is 
        conforming to each condition of the variance.
            ``(6) Ineligibility for variances.--A variance 
        shall not be available under this subsection for--
                    ``(A) any maximum contaminant level or 
                treatment technique for a contaminant with 
                respect to which a national primary drinking 
                water regulation was promulgated prior to 
                January 1, 1986; or
                    ``(B) a national primary drinking water 
                regulation for a microbial contaminant 
                (including a bacterium, virus, or other 
                organism) or an indicator or treatment 
                technique for a microbial contaminant.
            ``(7) Regulations and guidance.--
                    ``(A) In general.--Not later than 2 years 
                after the date of enactment of this subsection 
                and in consultation with the States, the 
                Administrator shall promulgate regulations for 
                variances to be granted under this subsection. 
                The regulations shall, at a minimum, specify--
                            ``(i) procedures to be used by the 
                        Administrator or a State to grant or 
                        deny variances, including requirements 
                        for notifying the Administrator and 
                        consumers of the public water system 
                        that a variance is proposed to be 
                        granted (including information 
                        regarding the contaminant and variance) 
                        and requirements for a public hearing 
                        on the variance before the variance is 
                        granted;
                            ``(ii) requirements for the 
                        installation and proper operation of 
                        variance technology that is identified 
                        (pursuant to section 1412(b)(15)) for 
                        small systems and the financial and 
                        technical capability to operate the 
                        treatment system, including operator 
                        training and certification;
                            ``(iii) eligibility criteria for a 
                        variance for each national primary 
                        drinking water regulation, including 
                        requirements for the quality of the 
                        source water (pursuant to section 
                        1412(b)(15)(A)); and
                            ``(iv) information requirements for 
                        variance applications.
                    ``(B) Affordability criteria.--Not later 
                than 18 months after the date of enactment of 
                the Safe Drinking Water Act Amendments of 1996, 
                the Administrator, in consultation with the 
                States and the Rural Utilities Service of the 
                Department of Agriculture, shall publish 
                information to assist the States in developing 
                affordability criteria. The affordability 
                criteria shall be reviewed by the States not 
                less often than every 5 years to determine if 
                changes are needed to the criteria.
            ``(8) Review by the administrator.--
                    ``(A) In general.--The Administrator shall 
                periodically review the program of each State 
                that has primary enforcement responsibility for 
                public water systems under section 1413 with 
                respect to variances to determine whether the 
                variances granted by the State comply with the 
                requirements of this subsection. With respect 
                to affordability, the determination of the 
                Administrator shall be limited to whether the 
                variances granted by the State comply with the 
                affordability criteria developed by the State.
                    ``(B) Notice and publication.--If the 
                Administrator determines that variances granted 
                by a State are not in compliance with 
                affordability criteria developed by the State 
                and the requirements of this subsection, the 
                Administrator shall notify the State in writing 
                of the deficiencies and make public the 
                determination.
            ``(9) Approval of variances.--A State proposing to 
        grant a variance under this subsection to a public 
        water system serving more than 3,300 and fewer than 
        10,000 persons shall submit the variance to the 
        Administrator for review and approval prior to the 
        issuance of the variance. The Administrator shall 
        approve the variance if it meets each of the 
        requirements of this subsection. The Administrator 
        shall approve or disapprove the variance within 90 
        days. If the Administrator disapproves a variance under 
        this paragraph, the Administrator shall notify the 
        State in writing of the reasons for disapproval and the 
        variance may be resubmitted with modifications to 
        address the objections stated by the Administrator.
            ``(10) Objections to variances.--
                    ``(A) By the administrator.--The 
                Administrator may review and object to any 
                variance proposed to be granted by a State, if 
                the objection is communicated to the State not 
                later than 90 days after the State proposes to 
                grant the variance. If the Administrator 
                objects to the granting of a variance, the 
                Administrator shall notify the State in writing 
                of each basis for the objection and propose a 
                modification to the variance to resolve the 
                concerns of the Administrator. The State shall 
                make the recommended modification or respond in 
                writing to each objection. If the State issues 
                the variance without resolving the concerns of 
                the Administrator, the Administrator may 
                overturn the State decision to grant the 
                variance if the Administrator determines that 
                the State decision does not comply with this 
                subsection.
                    ``(B) Petition by consumers.--Not later 
                than 30 days after a State exercising primary 
                enforcement responsibility for public water 
                systems under section 1413 proposes to grant a 
                variance for a public water system, any person 
                served by the system may petition the 
                Administrator to object to the granting of a 
                variance. The Administrator shall respond to 
                the petition and determine whether to object to 
                the variance under subparagraph (A) not later 
                than 60 days after the receipt of the petition.
                    ``(C) Timing.--No variance shall be granted 
                by a State until the later of the following:
                            ``(i) 90 days after the State 
                        proposes to grant a variance.
                            ``(ii) If the Administrator objects 
                        to the variance, the date on which the 
                        State makes the recommended 
                        modifications or responds in writing to 
                        each objection.''.

SEC. 117. EXEMPTIONS.

    (a) In General.--Section 1416 (42 U.S.C. 300g-5) is amended 
as follows:
            (1) In subsection (a)(1)--
                    (A) by inserting after ``(which may include 
                economic factors'' the following: ``, including 
                qualification of the public water system as a 
                system serving a disadvantaged community 
                pursuant to section 1452(d)''; and
                    (B) by inserting after ``treatment 
                technique requirement,'' the following: ``or to 
                implement measures to develop an alternative 
                source of water supply,''.
            (2) In subsection (a), by striking ``and'' at the 
        end of paragraph (2), striking the period at the end of 
        paragraph (3) and inserting ``; and'' and by adding the 
        following at the end thereof:
            ``(4) management or restructuring changes (or both) 
        cannot reasonably be made that will result in 
        compliance with this title or, if compliance cannot be 
        achieved, improve the quality of the drinking water.''.
            (3) In subsection (b)(1)(A)--
                    (A) by striking ``(including increments of 
                progress)'' and inserting ``(including 
                increments of progress or measures to develop 
                an alternative source of water supply)''; and
                    (B) by striking ``requirement and 
                treatment'' and inserting ``requirement or 
                treatment''.
            (4) In subsection (b)(2)--
                    (A) by striking ``(except as provided in 
                subparagraph (B))'' in subparagraph (A) and all 
                that follows through ``3 years after the date 
                of the issuance of the exemption if'' in 
                subparagraph (B) and inserting the following: 
                ``not later than 3 years after the otherwise 
                applicable compliance date established in 
                section 1412(b)(10).
    ``(B) No exemption shall be granted unless'';
                    (B) in subparagraph (B)(i), by striking 
                ``within the period of such exemption'' and 
                inserting ``prior to the date established 
                pursuant to section 1412(b)(10)'';
                    (C) in subparagraph (B)(ii), by inserting 
                after ``such financial assistance'' the 
                following: ``or assistance pursuant to section 
                1452, or any other Federal or State program is 
                reasonably likely to be available within the 
                period of the exemption'';
                    (D) in subparagraph (C)--
                            (i) by striking ``500 service 
                        connections'' and inserting ``a 
                        population of 3,300''; and
                            (ii) by inserting ``, but not to 
                        exceed a total of 6 years,'' after 
                        ``for one or more additional 2-year 
                        periods''; and
                    (E) by adding at the end the following:
    ``(D) Limitation.--A public water system may not receive an 
exemption under this section if the system was granted a 
variance under section 1415(e).''.
    (b) Limited Additional Compliance Period.--(1) The State of 
New York, on a case-by-case basis and after notice and an 
opportunity of at least 60 days for public comment, may allow 
an additional period for compliance with the Surface Water 
Treatment Rule established pursuant to section 1412(b)(7)(C) of 
the Safe Drinking Water Act in the case of unfiltered systems 
in Essex, Columbia, Greene, Dutchess, Rensselaer, Schoharie, 
Saratoga, Washington, and Warren Counties serving a population 
of less than 5,000, which meet appropriate disinfection 
requirements and have adequate watershed protections, so long 
as the State determines that the public health will be 
protected during the duration of the additional compliance 
period and the system agrees to implement appropriate control 
measures as determined by the State.
    (2) The additional compliance period referred to in 
paragraph (1) shall expire on the earlier of the date 3 years 
after the date on which the Administrator identifies 
appropriate control technology for the Surface Water Treatment 
Rule for public water systems in the category that includes 
such system pursuant to section 1412(b)(4)(E) of the Safe 
Drinking Water Act or 5 years after the date of enactment of 
the Safe Drinking Water Act Amendments of 1996.

SEC. 118. LEAD PLUMBING AND PIPES.

    Section 1417 (42 U.S.C. 300g-6) is amended as follows:
            (1) In subsection (a), by striking paragraph (1) 
        and inserting the following:
            ``(1) Prohibitions.--
                    ``(A) In general.--No person may use any 
                pipe, any pipe or plumbing fitting or fixture, 
                any solder, or any flux, after June 19, 1986, 
                in the installation or repair of--
                            ``(i) any public water system; or
                            ``(ii) any plumbing in a 
                        residential or nonresidential facility 
                        providing water for human consumption,
                that is not lead free (within the meaning of 
                subsection (d)).
                    ``(B) Leaded joints.--Subparagraph (A) 
                shall not apply to leaded joints necessary for 
                the repair of cast iron pipes.''.
            (2) In subsection (a)(2)(A), by inserting ``owner 
        or operator of a'' after ``Each''.
            (3) By adding at the end of subsection (a) the 
        following:
            ``(3) Unlawful acts.--Effective 2 years after the 
        date of enactment of this paragraph, it shall be 
        unlawful--
                    ``(A) for any person to introduce into 
                commerce any pipe, or any pipe or plumbing 
                fitting or fixture, that is not lead free, 
                except for a pipe that is used in manufacturing 
                or industrial processing;
                    ``(B) for any person engaged in the 
                business of selling plumbing supplies, except 
                manufacturers, to sell solder or flux that is 
                not lead free; or
                    ``(C) for any person to introduce into 
                commerce any solder or flux that is not lead 
                free unless the solder or flux bears a 
                prominent label stating that it is illegal to 
                use the solder or flux in the installation or 
                repair of any plumbing providing water for 
                human consumption.''.
            (4) In subsection (d)--
                    (A) by striking ``lead, and'' in paragraph 
                (1) and inserting ``lead;'';
                    (B) by striking ``lead.'' in paragraph (2) 
                and inserting ``lead; and''; and
                    (C) by adding at the end the following:
            ``(3) when used with respect to plumbing fittings 
        and fixtures, refers to plumbing fittings and fixtures 
        in compliance with standards established in accordance 
        with subsection (e).''.
            (5) By adding at the end the following:
    ``(e) Plumbing Fittings and Fixtures.--
            ``(1) In general.--The Administrator shall provide 
        accurate and timely technical information and 
        assistance to qualified third-party certifiers in the 
        development of voluntary standards and testing 
        protocols for the leaching of lead from new plumbing 
        fittings and fixtures that are intended by the 
        manufacturer to dispense water for human ingestion.
            ``(2) Standards.--
                    ``(A) In general.--If a voluntary standard 
                for the leaching of lead is not established by 
                the date that is 1 year after the date of 
                enactment of this subsection, the Administrator 
                shall, not later than 2 years after the date of 
                enactment of this subsection, promulgate 
                regulations setting a health-effects-based 
                performance standard establishing maximum 
                leaching levels from new plumbing fittings and 
                fixtures that are intended by the manufacturer 
                to dispense water for human ingestion. The 
                standard shall become effective on the date 
                that is 5 years after the date of promulgation 
                of the standard.
                    ``(B) Alternative requirement.--If 
                regulations are required to be promulgated 
                under subparagraph (A) and have not been 
                promulgated by the date that is 5 years after 
                the date of enactment of this subsection, no 
                person may import, manufacture, process, or 
                distribute in commerce a new plumbing fitting 
                or fixture, intended by the manufacturer to 
                dispense water for human ingestion, that 
                contains more than 4 percent lead by dry 
                weight.''.

SEC. 119. CAPACITY DEVELOPMENT.

    Part B (42 U.S.C. 300g et seq.) is amended by adding after 
section 1419 the following:


                         ``capacity development


    ``Sec. 1420. (a) State Authority for New Systems.--A State 
shall receive only 80 percent of the allotment that the State 
is otherwise entitled to receive under section 1452 (relating 
to State loan funds) unless the State has obtained the legal 
authority or other means to ensure that all new community water 
systems and new nontransient, noncommunity water systems 
commencing operation after October 1, 1999, demonstrate 
technical, managerial, and financial capacity with respect to 
each national primary drinking water regulation in effect, or 
likely to be in effect, on the date of commencement of 
operations.
    ``(b) Systems in Significant Noncompliance.--
            ``(1) List.--Beginning not later than 1 year after 
        the date of enactment of this section, each State shall 
        prepare, periodically update, and submit to the 
        Administrator a list of community water systems and 
        nontransient, noncommunity water systems that have a 
        history of significant noncompliance with this title 
        (as defined in guidelines issued prior to the date of 
        enactment of this section or any revisions of the 
        guidelines that have been made in consultation with the 
        States) and, to the extent practicable, the reasons for 
        noncompliance.
            ``(2) Report.--Not later than 5 years after the 
        date of enactment of this section and as part of the 
        capacity development strategy of the State, each State 
        shall report to the Administrator on the success of 
        enforcement mechanisms and initial capacity development 
        efforts in assisting the public water systems listed 
        under paragraph (1) to improve technical, managerial, 
        and financial capacity.
            ``(3) Withholding.--The list and report under this 
        subsection shall be considered part of the capacity 
        development strategy of the State required under 
        subsection (c) of this section for purposes of the 
        withholding requirements of section 1452(a)(1)(G)(i) 
        (relating to State loan funds).
    ``(c) Capacity Development Strategy.--
            ``(1) In general.--Beginning 4 years after the date 
        of enactment of this section, a State shall receive 
        only--
                    ``(A) 90 percent in fiscal year 2001;
                    ``(B) 85 percent in fiscal year 2002; and
                    ``(C) 80 percent in each subsequent fiscal 
                year,
        of the allotment that the State is otherwise entitled 
        to receive under section 1452 (relating to State loan 
        funds), unless the State is developing and implementing 
        a strategy to assist public water systems in acquiring 
        and maintaining technical, managerial, and financial 
        capacity.
            ``(2) Content.--In preparing the capacity 
        development strategy, the State shall consider, solicit 
        public comment on, and include as appropriate--
                    ``(A) the methods or criteria that the 
                State will use to identify and prioritize the 
                public water systems most in need of improving 
                technical, managerial, and financial capacity;
                    ``(B) a description of the institutional, 
                regulatory, financial, tax, or legal factors at 
                the Federal, State, or local level that 
                encourage or impair capacity development;
                    ``(C) a description of how the State will 
                use the authorities and resources of this title 
                or other means to--
                            ``(i) assist public water systems 
                        in complying with national primary 
                        drinking water regulations;
                            ``(ii) encourage the development of 
                        partnerships between public water 
                        systems to enhance the technical, 
                        managerial, and financial capacity of 
                        the systems; and
                            ``(iii) assist public water systems 
                        in the training and certification of 
                        operators;
                    ``(D) a description of how the State will 
                establish a baseline and measure improvements 
                in capacity with respect to national primary 
                drinking water regulations and State drinking 
                water law; and
                    ``(E) an identification of the persons that 
                have an interest in and are involved in the 
                development and implementation of the capacity 
                development strategy (including all appropriate 
                agencies of Federal, State, and local 
                governments, private and nonprofit public water 
                systems, and public water system customers).
            ``(3) Report.--Not later than 2 years after the 
        date on which a State first adopts a capacity 
        development strategy under this subsection, and every 3 
        years thereafter, the head of the State agency that has 
        primary responsibility to carry out this title in the 
        State shall submit to the Governor a report that shall 
        also be available to the public on the efficacy of the 
        strategy and progress made toward improving the 
        technical, managerial, and financial capacity of public 
        water systems in the State.
            ``(4) Review.--The decisions of the State under 
        this section regarding any particular public water 
        system are not subject to review by the Administrator 
        and may not serve as the basis for withholding funds 
        under section 1452.
    ``(d) Federal Assistance.--
            ``(1) In general.--The Administrator shall support 
        the States in developing capacity development 
        strategies.
            ``(2) Informational assistance.--
                    ``(A) In general.--Not later than 180 days 
                after the date of enactment of this section, 
                the Administrator shall--
                            ``(i) conduct a review of State 
                        capacity development efforts in 
                        existence on the date of enactment of 
                        this section and publish information to 
                        assist States and public water systems 
                        in capacity development efforts; and
                            ``(ii) initiate a partnership with 
                        States, public water systems, and the 
                        public to develop information for 
                        States on recommended operator 
                        certification requirements.
                    ``(B) Publication of information.--The 
                Administrator shall publish the information 
                developed through the partnership under 
                subparagraph (A)(ii) not later than 18 months 
                after the date of enactment of this section.
            ``(3) Promulgation of drinking water regulations.--
        In promulgating a national primary drinking water 
        regulation, the Administrator shall include an analysis 
        of the likely effect of compliance with the regulation 
        on the technical, financial, and managerial capacity of 
        public water systems.
            ``(4) Guidance for new systems.--Not later than 2 
        years after the date of enactment of this section, the 
        Administrator shall publish guidance developed in 
        consultation with the States describing legal 
        authorities and other means to ensure that all new 
        community water systems and new nontransient, 
        noncommunity water systems demonstrate technical, 
        managerial, and financial capacity with respect to 
        national primary drinking water regulations.
    ``(e) Variances and Exemptions.--Based on information 
obtained under subsection (c)(3), the Administrator shall, as 
appropriate, modify regulations concerning variances and 
exemptions for small public water systems to ensure flexibility 
in the use of the variances and exemptions. Nothing in this 
subsection shall be interpreted, construed, or applied to 
affect or alter the requirements of section 1415 or 1416.
    ``(f) Small Public Water Systems Technology Assistance 
Centers.--
            ``(1) Grant program.--The Administrator is 
        authorized to make grants to institutions of higher 
        learning to establish and operate small public water 
        system technology assistance centers in the United 
        States.
            ``(2) Responsibilities of the centers.--The 
        responsibilities of the small public water system 
        technology assistance centers established under this 
        subsection shall include the conduct of training and 
        technical assistance relating to the information, 
        performance, and technical needs of small public water 
        systems or public water systems that serve Indian 
        Tribes.
            ``(3) Applications.--Any institution of higher 
        learning interested in receiving a grant under this 
        subsection shall submit to the Administrator an 
        application in such form and containing such 
        information as the Administrator may require by 
        regulation.
            ``(4) Selection criteria.--The Administrator shall 
        select recipients of grants under this subsection on 
        the basis of the following criteria:
                    ``(A) The small public water system 
                technology assistance center shall be located 
                in a State that is representative of the needs 
                of the region in which the State is located for 
                addressing the drinking water needs of small 
                and rural communities or Indian Tribes.
                    ``(B) The grant recipient shall be located 
                in a region that has experienced problems, or 
                may reasonably be foreseen to experience 
                problems, with small and rural public water 
                systems.
                    ``(C) The grant recipient shall have access 
                to expertise in small public water system 
                technology management.
                    ``(D) The grant recipient shall have the 
                capability to disseminate the results of small 
                public water system technology and training 
                programs.
                    ``(E) The projects that the grant recipient 
                proposes to carry out under the grant are 
                necessary and appropriate.
                    ``(F) The grant recipient has regional 
                support beyond the host institution.
            ``(5) Consortia of states.--At least 2 of the 
        grants under this subsection shall be made to consortia 
        of States with low population densities.
            ``(6) Authorization of appropriations.--There are 
        authorized to be appropriated to make grants under this 
        subsection $2,000,000 for each of the fiscal years 1997 
        through 1999, and $5,000,000 for each of the fiscal 
        years 2000 through 2003.
    ``(g) Environmental Finance Centers.--
            ``(1) In general.--The Administrator shall provide 
        initial funding for one or more university-based 
        environmental finance centers for activities that 
        provide technical assistance to State and local 
        officials in developing the capacity of public water 
        systems. Any such funds shall be used only for 
        activities that are directly related to this title.
            ``(2) National capacity development 
        clearinghouse.--The Administrator shall establish a 
        national public water system capacity development 
        clearinghouse to receive and disseminate information 
        with respect to developing, improving, and maintaining 
        financial and managerial capacity at public water 
        systems. The Administrator shall ensure that the 
        clearinghouse does not duplicate other federally 
        supported clearinghouse activities.
            ``(3) Capacity development techniques.--The 
        Administrator may request an environmental finance 
        center funded under paragraph (1) to develop and test 
        managerial, financial, and institutional techniques for 
        capacity development. The techniques may include 
        capacity assessment methodologies, manual and computer 
        based public water system rate models and capital 
        planning models, public water system consolidation 
        procedures, and regionalization models.
            ``(4) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this 
        subsection $1,500,000 for each of the fiscal years 1997 
        through 2003.
            ``(5) Limitation.--No portion of any funds made 
        available under this subsection may be used for 
        lobbying expenses.''.

SEC. 120. AUTHORIZATION OF APPROPRIATIONS FOR CERTAIN GROUND WATER 
                    PROGRAMS.

    (a) Critical Aquifer Protection.--Section 1427 (42 U.S.C. 
300h-6) is amended as follows:
            (1) Subsection (b)(1) is amended by striking ``not 
        later than 24 months after the enactment of the Safe 
        Drinking Water Act Amendments of 1986''.
            (2) The table in subsection (m) is amended by 
        adding at the end the following:

    ``1992-2003.........................................  15,000,000.''.

    (b) Wellhead Protection Areas.--The table in section 
1428(k) (42 U.S.C. 300h-7(k)) is amended by adding at the end 
the following:

    ``1992-2003.........................................  30,000,000.''.

    (c) Underground Injection Control Grant.--The table in 
section 1443(b)(5) (42 U.S.C. 300j-2(b)(5)) is amended by 
adding at the end the following:

    ``1992-2003.........................................  15,000,000.''.

SEC. 121. AMENDMENTS TO SECTION 1442.

    Section 1442 (42 U.S.C. 300j-1) is amended--
            (1) by redesignating paragraph (3) of subsection 
        (b) as paragraph (3) of subsection (d) and moving such 
        paragraph to appear after paragraph (2) of subsection 
        (d);
            (2) by striking subsection (b) (as so amended);
            (3) by redesignating subparagraph (B) of subsection 
        (a)(2) as subsection (b) and moving such subsection to 
        appear after subsection (a);
            (4) in subsection (a)--
                    (A) by striking paragraph (2) (as so 
                amended) and inserting the following:
            ``(2) Information and research facilities.--In 
        carrying out this title, the Administrator is 
        authorized to--
                    ``(A) collect and make available 
                information pertaining to research, 
                investigations, and demonstrations with respect 
                to providing a dependably safe supply of 
                drinking water, together with appropriate 
                recommendations in connection with the 
                information; and
                    ``(B) make available research facilities of 
                the Agency to appropriate public authorities, 
                institutions, and individuals engaged in 
                studies and research relating to this title.'';
                    (B) by striking paragraph (3); and
                    (C) by redesignating paragraph (11) as 
                paragraph (3) and moving such paragraph to 
                appear before paragraph (4).

SEC. 122. TECHNICAL ASSISTANCE.

    Section 1442(e) (42 U.S.C. 300j-1(e)) is amended to read as 
follows:
    ``(e) Technical Assistance.--The Administrator may provide 
technical assistance to small public water systems to enable 
such systems to achieve and maintain compliance with applicable 
national primary drinking water regulations. Such assistance 
may include circuit-rider and multi-State regional technical 
assistance programs, training, and preliminary engineering 
evaluations. The Administrator shall ensure that technical 
assistance pursuant to this subsection is available in each 
State. Each nonprofit organization receiving assistance under 
this subsection shall consult with the State in which the 
assistance is to be expended or otherwise made available before 
using assistance to undertake activities to carry out this 
subsection. There are authorized to be appropriated to the 
Administrator to be used for such technical assistance 
$15,000,000 for each of the fiscal years 1997 through 2003. No 
portion of any State loan fund established under section 1452 
(relating to State loan funds) and no portion of any funds made 
available under this subsection may be used for lobbying 
expenses. Of the total amount appropriated under this 
subsection, 3 percent shall be used for technical assistance to 
public water systems owned or operated by Indian Tribes.''.

SEC. 123. OPERATOR CERTIFICATION.

    Part B (42 U.S.C. 300g et seq.) is amended by adding the 
following after section 1418:


                        ``operator certification


    ``Sec. 1419. (a) Guidelines.--Not later than 30 months 
after the date of enactment of the Safe Drinking Water Act 
Amendments of 1996 and in cooperation with the States, the 
Administrator shall publish guidelines in the Federal Register, 
after notice and opportunity for comment from interested 
persons, including States and public water systems, specifying 
minimum standards for certification (and recertification) of 
the operators of community and nontransient noncommunity public 
water systems. Such guidelines shall take into account existing 
State programs, the complexity of the system, and other factors 
aimed at providing an effective program at reasonable cost to 
States and public water systems, taking into account the size 
of the system.
    ``(b) State Programs.--Beginning 2 years after the date on 
which the Administrator publishes guidelines under subsection 
(a), the Administrator shall withhold 20 percent of the funds a 
State is otherwise entitled to receive under section 1452 
unless the State has adopted and is implementing a program for 
the certification of operators of community and nontransient 
noncommunity public water systems that meets the requirements 
of the guidelines published pursuant to subsection (a) or that 
has been submitted in compliance with subsection (c) and that 
has not been disapproved.
    ``(c) Existing Programs.--For any State exercising primary 
enforcement responsibility for public water systems or any 
other State which has an operator certification program, the 
guidelines under subsection (a) shall allow the State to 
enforce such program in lieu of the guidelines under subsection 
(a) if the State submits the program to the Administrator 
within 18 months after the publication of the guidelines unless 
the Administrator determines (within 9 months after the State 
submits the program to the Administrator) that such program is 
not substantially equivalent to such guidelines. In making this 
determination, an existing State program shall be presumed to 
be substantially equivalent to the guidelines, notwithstanding 
program differences, based on the size of systems or the 
quality of source water, providing the State program meets the 
overall public health objectives of the guidelines. If 
disapproved, the program may be resubmitted within 6 months 
after receipt of notice of disapproval.
    ``(d) Expense Reimbursement.--
            ``(1) In general.--The Administrator shall provide 
        reimbursement for the costs of training, including an 
        appropriate per diem for unsalaried operators, and 
        certification for persons operating systems serving 
        3,300 persons or fewer that are required to undergo 
        training pursuant to this section.
            ``(2) State grants.--The reimbursement shall be 
        provided through grants to States with each State 
        receiving an amount sufficient to cover the reasonable 
        costs for training all such operators in the State, as 
        determined by the Administrator, to the extent required 
        by this section. Grants received by a State pursuant to 
        this paragraph shall first be used to provide 
        reimbursement for training and certification costs of 
        persons operating systems serving 3,300 persons or 
        fewer. If a State has reimbursed all such costs, the 
        State may, after notice to the Administrator, use any 
        remaining funds from the grant for any of the other 
        purposes authorized for grants under section 1452.
            ``(3) Authorization.--There are authorized to be 
        appropriated to the Administrator to provide grants for 
        reimbursement under this section $30,000,000 for each 
        of fiscal years 1997 through 2003.
            ``(4) Reservation.--If the appropriation made 
        pursuant to paragraph (3) for any fiscal year is not 
        sufficient to satisfy the requirements of paragraph 
        (1), the Administrator shall, prior to any other 
        allocation or reservation, reserve such sums as 
        necessary from the funds appropriated pursuant to 
        section 1452(m) to provide reimbursement for the 
        training and certification costs mandated by this 
        subsection.''.

SEC. 124. PUBLIC WATER SYSTEM SUPERVISION PROGRAM.

    Section 1443(a) (42 U.S.C. 300j-2(a)) is amended as 
follows:
            (1) Paragraph (7) is amended to read as follows:
            ``(7) Authorization.--For the purpose of making 
        grants under paragraph (1), there are authorized to be 
        appropriated $100,000,000 for each of fiscal years 1997 
        through 2003.''.
            (2) By adding at the end the following:
            ``(8) Reservation of funds by the administrator.--
        If the Administrator assumes the primary enforcement 
        responsibility of a State public water system 
        supervision program, the Administrator may reserve from 
        funds made available pursuant to this subsection an 
        amount equal to the amount that would otherwise have 
        been provided to the State pursuant to this subsection. 
        The Administrator shall use the funds reserved pursuant 
        to this paragraph to ensure the full and effective 
        administration of a public water system supervision 
        program in the State.
            ``(9) State loan funds.--
                    ``(A) Reservation of funds.--For any fiscal 
                year for which the amount made available to the 
                Administrator by appropriations to carry out 
                this subsection is less than the amount that 
                the Administrator determines is necessary to 
                supplement funds made available pursuant to 
                paragraph (8) to ensure the full and effective 
                administration of a public water system 
                supervision program in a State, the 
                Administrator may reserve from the funds made 
                available to the State under section 1452 
                (relating to State loan funds) an amount that 
                is equal to the amount of the shortfall. This 
                paragraph shall not apply to any State not 
                exercising primary enforcement responsibility 
                for public water systems as of the date of 
                enactment of the Safe Drinking Water Act 
                Amendments of 1996.
                    ``(B) Duty of administrator.--If the 
                Administrator reserves funds from the 
                allocation of a State under subparagraph (A), 
                the Administrator shall carry out in the State 
                each of the activities that would be required 
                of the State if the State had primary 
                enforcement authority under section 1413.''.

SEC. 125. MONITORING AND INFORMATION GATHERING.

    (a) Review of Existing Requirements.--Paragraph (1) of 
section 1445(a) (42 U.S.C. 300j-4(a)(1)) is amended to read as 
follows:
    ``(1)(A) Every person who is subject to any requirement of 
this title or who is a grantee, shall establish and maintain 
such records, make such reports, conduct such monitoring, and 
provide such information as the Administrator may reasonably 
require by regulation to assist the Administrator in 
establishing regulations under this title, in determining 
whether such person has acted or is acting in compliance with 
this title, in administering any program of financial 
assistance under this title, in evaluating the health risks of 
unregulated contaminants, or in advising the public of such 
risks. In requiring a public water system to monitor under this 
subsection, the Administrator may take into consideration the 
system size and the contaminants likely to be found in the 
system's drinking water.
    ``(B) Every person who is subject to a national primary 
drinking water regulation under section 1412 shall provide such 
information as the Administrator may reasonably require, after 
consultation with the State in which such person is located if 
such State has primary enforcement responsibility for public 
water systems, on a case-by-case basis, to determine whether 
such person has acted or is acting in compliance with this 
title.
    ``(C) Every person who is subject to a national primary 
drinking water regulation under section 1412 shall provide such 
information as the Administrator may reasonably require to 
assist the Administrator in establishing regulations under 
section 1412 of this title, after consultation with States and 
suppliers of water. The Administrator may not require under 
this subparagraph the installation of treatment equipment or 
process changes, the testing of treatment technology, or the 
analysis or processing of monitoring samples, except where the 
Administrator provides the funding for such activities. Before 
exercising this authority, the Administrator shall first seek 
to obtain the information by voluntary submission.
    ``(D) The Administrator shall not later than 2 years after 
the date of enactment of this subparagraph, after consultation 
with public health experts, representatives of the general 
public, and officials of State and local governments, review 
the monitoring requirements for not fewer than 12 contaminants 
identified by the Administrator, and promulgate any necessary 
modifications.''.
    (b) Monitoring Relief.--Part B is amended by adding the 
following new section after section 1417 (42 U.S.C. 300g-6):


                      ``monitoring of contaminants


    ``Sec. 1418. (a) Interim Monitoring Relief Authority.--
            ``(1) In general.--A State exercising primary 
        enforcement responsibility for public water systems may 
        modify the monitoring requirements for any regulated or 
        unregulated contaminants for which monitoring is 
        required other than microbial contaminants (or 
        indicators thereof), disinfectants and disinfection 
        byproducts or corrosion byproducts for an interim 
        period to provide that any public water system serving 
        10,000 persons or fewer shall not be required to 
        conduct additional quarterly monitoring during an 
        interim relief period for such contaminants if--
                    ``(A) monitoring, conducted at the 
                beginning of the period for the contaminant 
                concerned and certified to the State by the 
                public water system, fails to detect the 
                presence of the contaminant in the ground or 
                surface water supplying the public water 
                system; and
                    ``(B) the State, considering the 
                hydrogeology of the area and other relevant 
                factors, determines in writing that the 
                contaminant is unlikely to be detected by 
                further monitoring during such period.
            ``(2) Termination; timing of monitoring.--The 
        interim relief period referred to in paragraph (1) 
        shall terminate when permanent monitoring relief is 
        adopted and approved for such State, or at the end of 
        36 months after the date of enactment of the Safe 
        Drinking Water Act Amendments of 1996, whichever comes 
        first. In order to serve as a basis for interim relief, 
        the monitoring conducted at the beginning of the period 
        must occur at the time determined by the State to be 
        the time of the public water system's greatest 
        vulnerability to the contaminant concerned in the 
        relevant ground or surface water, taking into account 
        in the case of pesticides the time of application of 
        the pesticide for the source water area and the travel 
        time for the pesticide to reach such waters and taking 
        into account, in the case of other contaminants, 
        seasonality of precipitation and contaminant travel 
        time.
    ``(b) Permanent Monitoring Relief Authority.--
            ``(1) In general.--Each State exercising primary 
        enforcement responsibility for public water systems 
        under this title and having an approved source water 
        assessment program may adopt, in accordance with 
        guidance published by the Administrator, tailored 
        alternative monitoring requirements for public water 
        systems in such State (as an alternative to the 
        monitoring requirements for chemical contaminants set 
        forth in the applicable national primary drinking water 
        regulations) where the State concludes that (based on 
        data available at the time of adoption concerning 
        susceptibility, use, occurrence, or wellhead 
        protection, or from the State's drinking water source 
        water assessment program) such alternative monitoring 
        would provide assurance that it complies with the 
        Administrator's guidelines. The State program must be 
        adequate to assure compliance with, and enforcement of, 
        applicable national primary drinking water regulations. 
        Alternative monitoring shall not apply to regulated 
        microbiological contaminants (or indicators thereof), 
        disinfectants and disinfection byproducts, or corrosion 
        byproducts. The preceding sentence is not intended to 
        limit other authority of the Administrator under other 
        provisions of this title to grant monitoring 
        flexibility.
            ``(2) Guidelines.--
                    ``(A) In general.--The Administrator shall 
                issue, after notice and comment and at the same 
                time as guidelines are issued for source water 
                assessment under section 1453, guidelines for 
                States to follow in proposing alternative 
                monitoring requirements under paragraph (1) for 
                chemical contaminants. The Administrator shall 
                publish such guidelines in the Federal 
                Register. The guidelines shall assure that the 
                public health will be protected from drinking 
                water contamination. The guidelines shall 
                require that a State alternative monitoring 
                program apply on a contaminant-by-contaminant 
                basis and that, to be eligible for such 
                alternative monitoring program, a public water 
                system must show the State that the contaminant 
                is not present in the drinking water supply or, 
                if present, it is reliably and consistently 
                below the maximum contaminant level.
                    ``(B) Definition.--For purposes of 
                subparagraph (A), the phrase `reliably and 
                consistently below the maximum contaminant 
                level' means that, although contaminants have 
                been detected in a water supply, the State has 
                sufficient knowledge of the contamination 
                source and extent of contamination to predict 
                that the maximum contaminant level will not be 
                exceeded. In determining that a contaminant is 
                reliably and consistently below the maximum 
                contaminant level, States shall consider the 
                quality and completeness of data, the length of 
                time covered and the volatility or stability of 
                monitoring results during that time, and the 
                proximity of such results to the maximum 
                contaminant level. Wide variations in the 
                analytical results, or analytical results close 
                to the maximum contaminant level, shall not be 
                considered to be reliably and consistently 
                below the maximum contaminant level.
            ``(3) Effect of detection of contaminants.--The 
        guidelines issued by the Administrator under paragraph 
        (2) shall require that if, after the monitoring program 
        is in effect and operating, a contaminant covered by 
        the alternative monitoring program is detected at 
        levels at or above the maximum contaminant level or is 
        no longer reliably or consistently below the maximum 
        contaminant level, the public water system must 
        either--
                    ``(A) demonstrate that the contamination 
                source has been removed or that other action 
                has been taken to eliminate the contamination 
                problem; or
                    ``(B) test for the detected contaminant 
                pursuant to the applicable national primary 
                drinking water regulation.
            ``(4) States not exercising primary enforcement 
        responsibility.--The Governor of any State not 
        exercising primary enforcement responsibility under 
        section 1413 on the date of enactment of this section 
        may submit to the Administrator a request that the 
        Administrator modify the monitoring requirements 
        established by the Administrator and applicable to 
        public water systems in that State. After consultation 
        with the Governor, the Administrator shall modify the 
        requirements for public water systems in that State if 
        the request of the Governor is in accordance with each 
        of the requirements of this subsection that apply to 
        alternative monitoring requirements established by 
        States that have primary enforcement responsibility. A 
        decision by the Administrator to approve a request 
        under this clause shall be for a period of 3 years and 
        may subsequently be extended for periods of 5 years.
    ``(c) Treatment as NPDWR.--All monitoring relief granted by 
a State to a public water system for a regulated contaminant 
under subsection (a) or (b) shall be treated as part of the 
national primary drinking water regulation for that 
contaminant.
    ``(d) Other Monitoring Relief.--Nothing in this section 
shall be construed to affect the authority of the States under 
applicable national primary drinking water regulations to alter 
monitoring requirements through waivers or other existing 
authorities. The Administrator shall periodically review and, 
as appropriate, revise such authorities.''.
    (c) Unregulated Contaminants.--Section 1445(a) (42 U.S.C. 
300j-4(a)) is amended by striking paragraphs (2) through (8) 
and inserting the following:
            ``(2) Monitoring program for unregulated 
        contaminants.--
                    ``(A) Establishment.--The Administrator 
                shall promulgate regulations establishing the 
                criteria for a monitoring program for 
                unregulated contaminants. The regulations shall 
                require monitoring of drinking water supplied 
                by public water systems and shall vary the 
                frequency and schedule for monitoring 
                requirements for systems based on the number of 
                persons served by the system, the source of 
                supply, and the contaminants likely to be 
                found, ensuring that only a representative 
                sample of systems serving 10,000 persons or 
                fewer are required to monitor.
                    ``(B) Monitoring program for certain 
                unregulated contaminants.--
                            ``(i) Initial list.--Not later than 
                        3 years after the date of enactment of 
                        the Safe Drinking Water Act Amendments 
                        of 1996 and every 5 years thereafter, 
                        the Administrator shall issue a list 
                        pursuant to subparagraph (A) of not 
                        more than 30 unregulated contaminants 
                        to be monitored by public water systems 
                        and to be included in the national 
                        drinking water occurrence data base 
                        maintained pursuant to subsection (g).
                            ``(ii) Governors' petition.--The 
                        Administrator shall include among the 
                        list of contaminants for which 
                        monitoring is required under this 
                        paragraph each contaminant recommended 
                        in a petition signed by the Governor of 
                        each of 7 or more States, unless the 
                        Administrator determines that the 
                        action would prevent the listing of 
                        other contaminants of a higher public 
                        health concern.
                    ``(C) Monitoring plan for small and medium 
                systems.--
                            ``(i) In general.--Based on the 
                        regulations promulgated by the 
                        Administrator, each State may develop a 
                        representative monitoring plan to 
                        assess the occurrence of unregulated 
                        contaminants in public water systems 
                        that serve a population of 10,000 or 
                        fewer in that State. The plan shall 
                        require monitoring for systems 
                        representative of different sizes, 
                        types, and geographic locations in the 
                        State.
                            ``(ii) Grants for small system 
                        costs.--From funds reserved under 
                        section 1452(o) or appropriated under 
                        subparagraph (H), the Administrator 
                        shall pay the reasonable cost of such 
                        testing and laboratory analysis as are 
                        necessary to carry out monitoring under 
                        the plan.
                    ``(D) Monitoring results.--Each public 
                water system that conducts monitoring of 
                unregulated contaminants pursuant to this 
                paragraph shall provide the results of the 
                monitoring to the primary enforcement authority 
                for the system.
                    ``(E) Notification.--Notification of the 
                availability of the results of monitoring 
                programs required under paragraph (2)(A) shall 
                be given to the persons served by the system.
                    ``(F) Waiver of monitoring requirement.--
                The Administrator shall waive the requirement 
                for monitoring for a contaminant under this 
                paragraph in a State, if the State demonstrates 
                that the criteria for listing the contaminant 
                do not apply in that State.
                    ``(G) Analytical methods.--The State may 
                use screening methods approved by the 
                Administrator under subsection (i) in lieu of 
                monitoring for particular contaminants under 
                this paragraph.
                    ``(H) Authorization of appropriations.--
                There are authorized to be appropriated to 
                carry out this paragraph $10,000,000 for each 
                of the fiscal years 1997 through 2003.''.
    (d) Screening Methods.--Section 1445 (42 U.S.C. 300j-4) is 
amended by adding the following after subsection (h):
    ``(i) Screening Methods.--The Administrator shall review 
new analytical methods to screen for regulated contaminants and 
may approve such methods as are more accurate or cost-effective 
than established reference methods for use in compliance 
monitoring.''.

SEC. 126. OCCURRENCE DATA BASE.

    Section 1445 (42 U.S.C. 300j-4) is amended by adding the 
following new subsection after subsection (f):
    ``(g) Occurrence Data Base.--
            ``(1) In general.--Not later than 3 years after the 
        date of enactment of the Safe Drinking Water Act 
        Amendments of 1996, the Administrator shall assemble 
        and maintain a national drinking water contaminant 
        occurrence data base, using information on the 
        occurrence of both regulated and unregulated 
        contaminants in public water systems obtained under 
        subsection (a)(1)(A) or subsection (a)(2) and reliable 
        information from other public and private sources.
            ``(2) Public input.--In establishing the occurrence 
        data base, the Administrator shall solicit 
        recommendations from the Science Advisory Board, the 
        States, and other interested parties concerning the 
        development and maintenance of a national drinking 
        water contaminant occurrence data base, including such 
        issues as the structure and design of the data base, 
        data input parameters and requirements, and the use and 
        interpretation of data.
            ``(3) Use.--The data shall be used by the 
        Administrator in making determinations under section 
        1412(b)(1) with respect to the occurrence of a 
        contaminant in drinking water at a level of public 
        health concern.
            ``(4) Public recommendations.--The Administrator 
        shall periodically solicit recommendations from the 
        appropriate officials of the National Academy of 
        Sciences and the States, and any person may submit 
        recommendations to the Administrator, with respect to 
        contaminants that should be included in the national 
        drinking water contaminant occurrence data base, 
        including recommendations with respect to additional 
        unregulated contaminants that should be listed under 
        subsection (a)(2). Any recommendation submitted under 
        this clause shall be accompanied by reasonable 
        documentation that--
                    ``(A) the contaminant occurs or is likely 
                to occur in drinking water; and
                    ``(B) the contaminant poses a risk to 
                public health.
            ``(5) Public availability.--The information from 
        the data base shall be available to the public in 
        readily accessible form.
            ``(6) Regulated contaminants.--With respect to each 
        contaminant for which a national primary drinking water 
        regulation has been established, the data base shall 
        include information on the detection of the contaminant 
        at a quantifiable level in public water systems 
        (including detection of the contaminant at levels not 
        constituting a violation of the maximum contaminant 
        level for the contaminant).
            ``(7) Unregulated contaminants.--With respect to 
        contaminants for which a national primary drinking 
        water regulation has not been established, the data 
        base shall include--
                    ``(A) monitoring information collected by 
                public water systems that serve a population of 
                more than 10,000, as required by the 
                Administrator under subsection (a);
                    ``(B) monitoring information collected from 
                a representative sampling of public water 
                systems that serve a population of 10,000 or 
                fewer; and
                    ``(C) other reliable and appropriate 
                monitoring information on the occurrence of the 
                contaminants in public water systems that is 
                available to the Administrator.''.

SEC. 127. DRINKING WATER ADVISORY COUNCIL.

    The second sentence of section 1446(a) (42 U.S.C. 300j-
6(a)) is amended by inserting before the period at the end the 
following: ``, of which two such members shall be associated 
with small, rural public water systems''.

SEC. 128. NEW YORK CITY WATERSHED PROTECTION PROGRAM.

    Section 1443 (42 U.S.C. 300j-2) is amended by adding at the 
end the following:
    ``(d) New York City Watershed Protection Program.--
            ``(1) In general.--The Administrator is authorized 
        to provide financial assistance to the State of New 
        York for demonstration projects implemented as part of 
        the watershed program for the protection and 
        enhancement of the quality of source waters of the New 
        York City water supply system, including projects that 
        demonstrate, assess, or provide for comprehensive 
        monitoring and surveillance and projects necessary to 
        comply with the criteria for avoiding filtration 
        contained in 40 CFR 141.71. Demonstration projects 
        which shall be eligible for financial assistance shall 
        be certified to the Administrator by the State of New 
        York as satisfying the purposes of this subsection. In 
        certifying projects to the Administrator, the State of 
        New York shall give priority to monitoring projects 
        that have undergone peer review.
            ``(2) Report.--Not later than 5 years after the 
        date on which the Administrator first provides 
        assistance pursuant to this paragraph, the Governor of 
        the State of New York shall submit a report to the 
        Administrator on the results of projects assisted.
            ``(3) Matching requirements.--Federal assistance 
        provided under this subsection shall not exceed 50 
        percent of the total cost of the protection program 
        being carried out for any particular watershed or 
        ground water recharge area.
            ``(4) Authorization.--There are authorized to be 
        appropriated to the Administrator to carry out this 
        subsection for each of fiscal years 1997 through 2003, 
        $15,000,000 for the purpose of providing assistance to 
        the State of New York to carry out paragraph (1).''.

SEC. 129. FEDERAL AGENCIES.

    (a) In General.--Section 1447 (42 U.S.C. 300j-6) is amended 
by redesignating subsection (c) as subsection (d) and by 
striking subsections (a) and (b) and inserting the following:
    ``(a) In General.--Each department, agency, and 
instrumentality of the executive, legislative, and judicial 
branches of the Federal Government--
            ``(1) owning or operating any facility in a 
        wellhead protection area;
            ``(2) engaged in any activity at such facility 
        resulting, or which may result, in the contamination of 
        water supplies in any such area;
            ``(3) owning or operating any public water system; 
        or
            ``(4) engaged in any activity resulting, or which 
        may result in, underground injection which endangers 
        drinking water (within the meaning of section 
        1421(d)(2)),
shall be subject to, and comply with, all Federal, State, 
interstate, and local requirements, both substantive and 
procedural (including any requirement for permits or reporting 
or any provisions for injunctive relief and such sanctions as 
may be imposed by a court to enforce such relief), respecting 
the protection of such wellhead areas, respecting such public 
water systems, and respecting any underground injection in the 
same manner and to the same extent as any person is subject to 
such requirements, including the payment of reasonable service 
charges. The Federal, State, interstate, and local substantive 
and procedural requirements referred to in this subsection 
include, but are not limited to, all administrative orders and 
all civil and administrative penalties and fines, regardless of 
whether such penalties or fines are punitive or coercive in 
nature or are imposed for isolated, intermittent, or continuing 
violations. The United States hereby expressly waives any 
immunity otherwise applicable to the United States with respect 
to any such substantive or procedural requirement (including, 
but not limited to, any injunctive relief, administrative order 
or civil or administrative penalty or fine referred to in the 
preceding sentence, or reasonable service charge). The 
reasonable service charges referred to in this subsection 
include, but are not limited to, fees or charges assessed in 
connection with the processing and issuance of permits, renewal 
of permits, amendments to permits, review of plans, studies, 
and other documents, and inspection and monitoring of 
facilities, as well as any other nondiscriminatory charges that 
are assessed in connection with a Federal, State, interstate, 
or local regulatory program respecting the protection of 
wellhead areas or public water systems or respecting any 
underground injection. Neither the United States, nor any 
agent, employee, or officer thereof, shall be immune or exempt 
from any process or sanction of any State or Federal Court with 
respect to the enforcement of any such injunctive relief. No 
agent, employee, or officer of the United States shall be 
personally liable for any civil penalty under any Federal, 
State, interstate, or local law concerning the protection of 
wellhead areas or public water systems or concerning 
underground injection with respect to any act or omission 
within the scope of the official duties of the agent, employee, 
or officer. An agent, employee, or officer of the United States 
shall be subject to any criminal sanction (including, but not 
limited to, any fine or imprisonment) under any Federal or 
State requirement adopted pursuant to this title, but no 
department, agency, or instrumentality of the executive, 
legislative, or judicial branch of the Federal Government shall 
be subject to any such sanction. The President may exempt any 
facility of any department, agency, or instrumentality in the 
executive branch from compliance with such a requirement if he 
determines it to be in the paramount interest of the United 
States to do so. No such exemption shall be granted due to lack 
of appropriation unless the President shall have specifically 
requested such appropriation as a part of the budgetary process 
and the Congress shall have failed to make available such 
requested appropriation. Any exemption shall be for a period 
not in excess of 1 year, but additional exemptions may be 
granted for periods not to exceed 1 year upon the President's 
making a new determination. The President shall report each 
January to the Congress all exemptions from the requirements of 
this section granted during the preceding calendar year, 
together with his reason for granting each such exemption.
    ``(b) Administrative Penalty Orders.--
            ``(1) In general.--If the Administrator finds that 
        a Federal agency has violated an applicable requirement 
        under this title, the Administrator may issue a penalty 
        order assessing a penalty against the Federal agency.
            ``(2) Penalties.--The Administrator may, after 
        notice to the agency, assess a civil penalty against 
        the agency in an amount not to exceed $25,000 per day 
        per violation.
            ``(3) Procedure.--Before an administrative penalty 
        order issued under this subsection becomes final, the 
        Administrator shall provide the agency an opportunity 
        to confer with the Administrator and shall provide the 
        agency notice and an opportunity for a hearing on the 
        record in accordance with chapters 5 and 7 of title 5, 
        United States Code.
            ``(4) Public review.--
                    ``(A) In general.--Any interested person 
                may obtain review of an administrative penalty 
                order issued under this subsection. The review 
                may be obtained in the United States District 
                Court for the District of Columbia or in the 
                United States District Court for the district 
                in which the violation is alleged to have 
                occurred by the filing of a complaint with the 
                court within the 30-day period beginning on the 
                date the penalty order becomes final. The 
                person filing the complaint shall 
                simultaneously send a copy of the complaint by 
                certified mail to the Administrator and the 
                Attorney General.
                    ``(B) Record.--The Administrator shall 
                promptly file in the court a certified copy of 
                the record on which the order was issued.
                    ``(C) Standard of review.--The court shall 
                not set aside or remand the order unless the 
                court finds that there is not substantial 
                evidence in the record, taken as a whole, to 
                support the finding of a violation or that the 
                assessment of the penalty by the Administrator 
                constitutes an abuse of discretion.
                    ``(D) Prohibition on additional 
                penalties.--The court may not impose an 
                additional civil penalty for a violation that 
                is subject to the order unless the court finds 
                that the assessment constitutes an abuse of 
                discretion by the Administrator.''
    ``(c) Limitation on State Use of Funds Collected From 
Federal Government.--Unless a State law in effect on the date 
of enactment of the Safe Drinking Water Act Amendments of 1996 
or a State constitution requires the funds to be used in a 
different manner, all funds collected by a State from the 
Federal Government from penalties and fines imposed for 
violation of any substantive or procedural requirement referred 
to in subsection (a) shall be used by the State only for 
projects designed to improve or protect the environment or to 
defray the costs of environmental protection or enforcement.''.
    (b) Citizen Enforcement.--(1) The first sentence of section 
1449(a) (42 U.S.C. 300j-8(a)) is amended--
            (A) in paragraph (1), by striking ``, or'' and 
        inserting a semicolon;
            (B) in paragraph (2), by striking the period at the 
        end and inserting ``; or''; and
            (C) by adding at the end the following:
            ``(3) for the collection of a penalty by the United 
        States Government (and associated costs and interest) 
        against any Federal agency that fails, by the date that 
        is 18 months after the effective date of a final order 
        to pay a penalty assessed by the Administrator under 
        section 1429(b), to pay the penalty.''.
    (2) Subsection (b) of section 1449 (42 U.S.C. 300j-8(b)) is 
amended by striking the period at the end of paragraph (2) and 
inserting ``; or'' and by adding the following new paragraph 
after paragraph (2):
            ``(3) under subsection (a)(3) prior to 60 days 
        after the plaintiff has given notice of such action to 
        the Attorney General and to the Federal agency.''.
    (c) Washington Aqueduct.--Section 1447 (42 U.S.C. 300j-6) 
is amended by adding at the end the following:
    ``(e) Washington Aqueduct.--The Secretary of the Army shall 
not pass the cost of any penalty assessed under this title on 
to any customer, user, or other purchaser of drinking water 
from the Washington Aqueduct system, including finished water 
from the Dalecarlia or McMillan treatment plant.''.

SEC. 130. STATE REVOLVING LOAN FUNDS.

    Part E (42 U.S.C. 300j et seq.) is amended by adding the 
following new section after section 1451:


                      ``state revolving loan funds


    ``Sec. 1452. (a) General Authority.--
            ``(1) Grants to states to establish state loan 
        funds.--
                    ``(A) In general.--The Administrator shall 
                offer to enter into agreements with eligible 
                States to make capitalization grants, including 
                letters of credit, to the States under this 
                subsection to further the health protection 
                objectives of this title, promote the efficient 
                use of fund resources, and for other purposes 
                as are specified in this title.
                    ``(B) Establishment of fund.--To be 
                eligible to receive a capitalization grant 
                under this section, a State shall establish a 
                drinking water treatment revolving loan fund 
                (referred to in this section as a `State loan 
                fund') and comply with the other requirements 
                of this section. Each grant to a State under 
                this section shall be deposited in the State 
                loan fund established by the State, except as 
                otherwise provided in this section and in other 
                provisions of this title. No funds authorized 
                by other provisions of this title to be used 
                for other purposes specified in this title 
                shall be deposited in any State loan fund.
                    ``(C) Extended period.--The grant to a 
                State shall be available to the State for 
                obligation during the fiscal year for which the 
                funds are authorized and during the following 
                fiscal year, except that grants made available 
                from funds provided prior to fiscal year 1997 
                shall be available for obligation during each 
                of the fiscal years 1997 and 1998.
                    ``(D) Allotment formula.--Except as 
                otherwise provided in this section, funds made 
                available to carry out this section shall be 
                allotted to States that have entered into an 
                agreement pursuant to this section (other than 
                the District of Columbia) in accordance with--
                            ``(i) for each of fiscal years 1995 
                        through 1997, a formula that is the 
                        same as the formula used to distribute 
                        public water system supervision grant 
                        funds under section 1443 in fiscal year 
                        1995, except that the minimum 
                        proportionate share established in the 
                        formula shall be 1 percent of available 
                        funds and the formula shall be adjusted 
                        to include a minimum proportionate 
                        share for the State of Wyoming and the 
                        District of Columbia; and
                            ``(ii) for fiscal year 1998 and 
                        each subsequent fiscal year, a formula 
                        that allocates to each State the 
                        proportional share of the State needs 
                        identified in the most recent survey 
                        conducted pursuant to subsection (h), 
                        except that the minimum proportionate 
                        share provided to each State shall be 
                        the same as the minimum proportionate 
                        share provided under clause (i).
                    ``(E) Reallotment.--The grants not 
                obligated by the last day of the period for 
                which the grants are available shall be 
                reallotted according to the appropriate 
                criteria set forth in subparagraph (D), except 
                that the Administrator may reserve and allocate 
                10 percent of the remaining amount for 
                financial assistance to Indian Tribes in 
                addition to the amount allotted under 
                subsection (i) and none of the funds reallotted 
                by the Administrator shall be reallotted to any 
                State that has not obligated all sums allotted 
                to the State pursuant to this section during 
                the period in which the sums were available for 
                obligation.
                    ``(F) Nonprimacy states.--The State 
                allotment for a State not exercising primary 
                enforcement responsibility for public water 
                systems shall not be deposited in any such fund 
                but shall be allotted by the Administrator 
                under this subparagraph. Pursuant to section 
                1443(a)(9)(A) such sums allotted under this 
                subparagraph shall be reserved as needed by the 
                Administrator to exercise primary enforcement 
                responsibility under this title in such State 
                and the remainder shall be reallotted to States 
                exercising primary enforcement responsibility 
                for public water systems for deposit in such 
                funds. Whenever the Administrator makes a final 
                determination pursuant to section 1413(b) that 
                the requirements of section 1413(a) are no 
                longer being met by a State, additional grants 
                for such State under this title shall be 
                immediately terminated by the Administrator. 
                This subparagraph shall not apply to any State 
                not exercising primary enforcement 
                responsibility for public water systems as of 
                the date of enactment of the Safe Drinking 
                Water Act Amendments of 1996.
                    ``(G) Other programs.--
                            ``(i) New system capacity.--
                        Beginning in fiscal year 1999, the 
                        Administrator shall withhold 20 percent 
                        of each capitalization grant made 
                        pursuant to this section to a State 
                        unless the State has met the 
                        requirements of section 1420(a) 
                        (relating to capacity development) and 
                        shall withhold 10 percent for fiscal 
                        year 2001, 15 percent for fiscal year 
                        2002, and 20 percent for fiscal year 
                        2003 if the State has not complied with 
                        the provisions of section 1420(c) 
                        (relating to capacity development 
                        strategies). Not more than a total of 
                        20 percent of the capitalization grants 
                        made to a State in any fiscal year may 
                        be withheld under the preceding 
                        provisions of this clause. All funds 
                        withheld by the Administrator pursuant 
                        to this clause shall be reallotted by 
                        the Administrator on the basis of the 
                        same ratio as is applicable to funds 
                        allotted under subparagraph (D). None 
                        of the funds reallotted by the 
                        Administrator pursuant to this 
                        paragraph shall be allotted to a State 
                        unless the State has met the 
                        requirements of section 1420 (relating 
                        to capacity development).
                            ``(ii) Operator certification.--The 
                        Administrator shall withhold 20 percent 
                        of each capitalization grant made 
                        pursuant to this section unless the 
                        State has met the requirements of 1419 
                        (relating to operator certification). 
                        All funds withheld by the Administrator 
                        pursuant to this clause shall be 
                        reallotted by the Administrator on the 
                        basis of the same ratio as applicable 
                        to funds allotted under subparagraph 
                        (D). None of the funds reallotted by 
                        the Administrator pursuant to this 
                        paragraph shall be allotted to a State 
                        unless the State has met the 
                        requirements of section 1419 (relating 
                        to operator certification).
            ``(2) Use of funds.--Except as otherwise authorized 
        by this title, amounts deposited in a State loan fund, 
        including loan repayments and interest earned on such 
        amounts, shall be used only for providing loans or loan 
        guarantees, or as a source of reserve and security for 
        leveraged loans, the proceeds of which are deposited in 
        a State loan fund established under paragraph (1), or 
        other financial assistance authorized under this 
        section to community water systems and nonprofit 
        noncommunity water systems, other than systems owned by 
        Federal agencies. Financial assistance under this 
        section may be used by a public water system only for 
        expenditures (not including monitoring, operation, and 
        maintenance expenditures) of a type or category which 
        the Administrator has determined, through guidance, 
        will facilitate compliance with national primary 
        drinking water regulations applicable to the system 
        under section 1412 or otherwise significantly further 
        the health protection objectives of this title. The 
        funds may also be used to provide loans to a system 
        referred to in section 1401(4)(B) for the purpose of 
        providing the treatment described in section 
        1401(4)(B)(i)(III). The funds shall not be used for the 
        acquisition of real property or interests therein, 
        unless the acquisition is integral to a project 
        authorized by this paragraph and the purchase is from a 
        willing seller. Of the amount credited to any State 
        loan fund established under this section in any fiscal 
        year, 15 percent shall be available solely for 
        providing loan assistance to public water systems which 
        regularly serve fewer than 10,000 persons to the extent 
        such funds can be obligated for eligible projects of 
        public water systems.
            ``(3) Limitation.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), no assistance under this 
                section shall be provided to a public water 
                system that--
                            ``(i) does not have the technical, 
                        managerial, and financial capability to 
                        ensure compliance with the requirements 
                        of this title; or
                            ``(ii) is in significant 
                        noncompliance with any requirement of a 
                        national primary drinking water 
                        regulation or variance.
                    ``(B) Restructuring.--A public water system 
                described in subparagraph (A) may receive 
                assistance under this section if--
                            ``(i) the use of the assistance 
                        will ensure compliance; and
                            ``(ii) if subparagraph (A)(i) 
                        applies to the system, the owner or 
                        operator of the system agrees to 
                        undertake feasible and appropriate 
                        changes in operations (including 
                        ownership, management, accounting, 
                        rates, maintenance, consolidation, 
                        alternative water supply, or other 
                        procedures) if the State determines 
                        that the measures are necessary to 
                        ensure that the system has the 
                        technical, managerial, and financial 
                        capability to comply with the 
                        requirements of this title over the 
                        long term.
                    ``(C) Review.--Prior to providing 
                assistance under this section to a public water 
                system that is in significant noncompliance 
                with any requirement of a national primary 
                drinking water regulation or variance, the 
                State shall conduct a review to determine 
                whether subparagraph (A)(i) applies to the 
                system.
    ``(b) Intended Use Plans.--
            ``(1) In general.--After providing for public 
        review and comment, each State that has entered into a 
        capitalization agreement pursuant to this section shall 
        annually prepare a plan that identifies the intended 
        uses of the amounts available to the State loan fund of 
        the State.
            ``(2) Contents.--An intended use plan shall 
        include--
                    ``(A) a list of the projects to be assisted 
                in the first fiscal year that begins after the 
                date of the plan, including a description of 
                the project, the expected terms of financial 
                assistance, and the size of the community 
                served;
                    ``(B) the criteria and methods established 
                for the distribution of funds; and
                    ``(C) a description of the financial status 
                of the State loan fund and the short-term and 
                long-term goals of the State loan fund.
            ``(3) Use of funds.--
                    ``(A) In general.--An intended use plan 
                shall provide, to the maximum extent 
                practicable, that priority for the use of funds 
                be given to projects that--
                            ``(i) address the most serious risk 
                        to human health;
                            ``(ii) are necessary to ensure 
                        compliance with the requirements of 
                        this title (including requirements for 
                        filtration); and
                            ``(iii) assist systems most in need 
                        on a per household basis according to 
                        State affordability criteria.
                    ``(B) List of projects.--Each State shall, 
                after notice and opportunity for public 
                comment, publish and periodically update a list 
                of projects in the State that are eligible for 
                assistance under this section, including the 
                priority assigned to each project and, to the 
                extent known, the expected funding schedule for 
                each project.
    ``(c) Fund Management.--Each State loan fund under this 
section shall be established, maintained, and credited with 
repayments and interest. The fund corpus shall be available in 
perpetuity for providing financial assistance under this 
section. To the extent amounts in the fund are not required for 
current obligation or expenditure, such amounts shall be 
invested in interest bearing obligations.
    ``(d) Assistance for Disadvantaged Communities.--
            ``(1) Loan subsidy.--Notwithstanding any other 
        provision of this section, in any case in which the 
        State makes a loan pursuant to subsection (a)(2) to a 
        disadvantaged community or to a community that the 
        State expects to become a disadvantaged community as 
        the result of a proposed project, the State may provide 
        additional subsidization (including forgiveness of 
        principal).
            ``(2) Total amount of subsidies.--For each fiscal 
        year, the total amount of loan subsidies made by a 
        State pursuant to paragraph (1) may not exceed 30 
        percent of the amount of the capitalization grant 
        received by the State for the year.
            ``(3) Definition of disadvantaged community.--In 
        this subsection, the term `disadvantaged community' 
        means the service area of a public water system that 
        meets affordability criteria established after public 
        review and comment by the State in which the public 
        water system is located. The Administrator may publish 
        information to assist States in establishing 
        affordability criteria.
    ``(e) State Contribution.--Each agreement under subsection 
(a) shall require that the State deposit in the State loan fund 
from State moneys an amount equal to at least 20 percent of the 
total amount of the grant to be made to the State on or before 
the date on which the grant payment is made to the State, 
except that a State shall not be required to deposit such 
amount into the fund prior to the date on which each grant 
payment is made for fiscal years 1994, 1995, 1996, and 1997 if 
the State deposits the State contribution amount into the State 
loan fund prior to September 30, 1999.
    ``(f) Types of Assistance.--Except as otherwise limited by 
State law, the amounts deposited into a State loan fund under 
this section may be used only--
            ``(1) to make loans, on the condition that--
                    ``(A) the interest rate for each loan is 
                less than or equal to the market interest rate, 
                including an interest free loan;
                    ``(B) principal and interest payments on 
                each loan will commence not later than 1 year 
                after completion of the project for which the 
                loan was made, and each loan will be fully 
                amortized not later than 20 years after the 
                completion of the project, except that in the 
                case of a disadvantaged community (as defined 
                in subsection (d)(3)), a State may provide an 
                extended term for a loan, if the extended 
                term--
                            ``(i) terminates not later than the 
                        date that is 30 years after the date of 
                        project completion; and
                            ``(ii) does not exceed the expected 
                        design life of the project;
                    ``(C) the recipient of each loan will 
                establish a dedicated source of revenue (or, in 
                the case of a privately owned system, 
                demonstrate that there is adequate security) 
                for the repayment of the loan; and
                    ``(D) the State loan fund will be credited 
                with all payments of principal and interest on 
                each loan;
            ``(2) to buy or refinance the debt obligation of a 
        municipality or an intermunicipal or interstate agency 
        within the State at an interest rate that is less than 
        or equal to the market interest rate in any case in 
        which a debt obligation is incurred after July 1, 1993;
            ``(3) to guarantee, or purchase insurance for, a 
        local obligation (all of the proceeds of which finance 
        a project eligible for assistance under this section) 
        if the guarantee or purchase would improve credit 
        market access or reduce the interest rate applicable to 
        the obligation;
            ``(4) as a source of revenue or security for the 
        payment of principal and interest on revenue or general 
        obligation bonds issued by the State if the proceeds of 
        the sale of the bonds will be deposited into the State 
        loan fund; and
            ``(5) to earn interest on the amounts deposited 
        into the State loan fund.
    ``(g) Administration of State Loan Funds.--
            ``(1) Combined financial administration.--
        Notwithstanding subsection (c), a State may (as a 
        convenience and to avoid unnecessary administrative 
        costs) combine, in accordance with State law, the 
        financial administration of a State loan fund 
        established under this section with the financial 
        administration of any other revolving fund established 
        by the State if otherwise not prohibited by the law 
        under which the State loan fund was established and if 
        the Administrator determines that--
                    ``(A) the grants under this section, 
                together with loan repayments and interest, 
                will be separately accounted for and used 
                solely for the purposes specified in subsection 
                (a); and
                    ``(B) the authority to establish assistance 
                priorities and carry out oversight and related 
                activities (other than financial 
                administration) with respect to assistance 
                remains with the State agency having primary 
                responsibility for administration of the State 
                program under section 1413, after consultation 
                with other appropriate State agencies (as 
                determined by the State): Provided, That in 
                nonprimacy States eligible to receive 
                assistance under this section, the Governor 
                shall determine which State agency will have 
                authority to establish priorities for financial 
                assistance from the State loan fund.
            ``(2) Cost of administering fund.--Each State may 
        annually use up to 4 percent of the funds allotted to 
        the State under this section to cover the reasonable 
        costs of administration of the programs under this 
        section, including the recovery of reasonable costs 
        expended to establish a State loan fund which are 
        incurred after the date of enactment of this section, 
        and to provide technical assistance to public water 
        systems within the State. For fiscal year 1995 and each 
        fiscal year thereafter, each State may use up to an 
        additional 10 percent of the funds allotted to the 
        State under this section--
                    ``(A) for public water system supervision 
                programs under section 1443(a);
                    ``(B) to administer or provide technical 
                assistance through source water protection 
                programs;
                    ``(C) to develop and implement a capacity 
                development strategy under section 1420(c); and
                    ``(D) for an operator certification program 
                for purposes of meeting the requirements of 
                section 1419,
        if the State matches the expenditures with at least an 
        equal amount of State funds. At least half of the match 
        must be additional to the amount expended by the State 
        for public water supervision in fiscal year 1993. An 
        additional 2 percent of the funds annually allotted to 
        each State under this section may be used by the State 
        to provide technical assistance to public water systems 
        serving 10,000 or fewer persons in the State. Funds 
        utilized under subparagraph (B) shall not be used for 
        enforcement actions.
            ``(3) Guidance and regulations.--The Administrator 
        shall publish guidance and promulgate regulations as 
        may be necessary to carry out the provisions of this 
        section, including--
                    ``(A) provisions to ensure that each State 
                commits and expends funds allotted to the State 
                under this section as efficiently as possible 
                in accordance with this title and applicable 
                State laws;
                    ``(B) guidance to prevent waste, fraud, and 
                abuse; and
                    ``(C) guidance to avoid the use of funds 
                made available under this section to finance 
                the expansion of any public water system in 
                anticipation of future population growth.
        The guidance and regulations shall also ensure that the 
        States, and public water systems receiving assistance 
        under this section, use accounting, audit, and fiscal 
        procedures that conform to generally accepted 
        accounting standards.
            ``(4) State report.--Each State administering a 
        loan fund and assistance program under this subsection 
        shall publish and submit to the Administrator a report 
        every 2 years on its activities under this section, 
        including the findings of the most recent audit of the 
        fund and the entire State allotment. The Administrator 
        shall periodically audit all State loan funds 
        established by, and all other amounts allotted to, the 
        States pursuant to this section in accordance with 
        procedures established by the Comptroller General.
    ``(h) Needs Survey.--The Administrator shall conduct an 
assessment of water system capital improvement needs of all 
eligible public water systems in the United States and submit a 
report to the Congress containing the results of the assessment 
within 180 days after the date of enactment of the Safe 
Drinking Water Act Amendments of 1996 and every 4 years 
thereafter.
    ``(i) Indian Tribes.--
            ``(1) In general.--1\1/2\ percent of the amounts 
        appropriated annually to carry out this section may be 
        used by the Administrator to make grants to Indian 
        Tribes and Alaska Native villages that have not 
        otherwise received either grants from the Administrator 
        under this section or assistance from State loan funds 
        established under this section. The grants may only be 
        used for expenditures by tribes and villages for public 
        water system expenditures referred to in subsection 
        (a)(2).
            ``(2) Use of funds.--Funds reserved pursuant to 
        paragraph (1) shall be used to address the most 
        significant threats to public health associated with 
        public water systems that serve Indian Tribes, as 
        determined by the Administrator in consultation with 
        the Director of the Indian Health Service and Indian 
        Tribes.
            ``(3) Alaska native villages.--In the case of a 
        grant for a project under this subsection in an Alaska 
        Native village, the Administrator is also authorized to 
        make grants to the State of Alaska for the benefit of 
        Native villages. An amount not to exceed 4 percent of 
        the grant amount may be used by the State of Alaska for 
        project management.
            ``(4) Needs assessment.--The Administrator, in 
        consultation with the Director of the Indian Health 
        Service and Indian Tribes, shall, in accordance with a 
        schedule that is consistent with the needs surveys 
        conducted pursuant to subsection (h), prepare surveys 
        and assess the needs of drinking water treatment 
        facilities to serve Indian Tribes, including an 
        evaluation of the public water systems that pose the 
        most significant threats to public health.
    ``(j) Other Areas.--Of the funds annually available under 
this section for grants to States, the Administrator shall make 
allotments in accordance with section 1443(a)(4) for the Virgin 
Islands, the Commonwealth of the Northern Mariana Islands, 
American Samoa, and Guam. The grants allotted as provided in 
this subsection may be provided by the Administrator to the 
governments of such areas, to public water systems in such 
areas, or to both, to be used for the public water system 
expenditures referred to in subsection (a)(2). The grants, and 
grants for the District of Columbia, shall not be deposited in 
State loan funds. The total allotment of grants under this 
section for all areas described in this subsection in any 
fiscal year shall not exceed 0.33 percent of the aggregate 
amount made available to carry out this section in that fiscal 
year.
    ``(k) Other Authorized Activities.--
            ``(1) In general.--Notwithstanding subsection 
        (a)(2), a State may take each of the following actions:
                    ``(A) Provide assistance, only in the form 
                of a loan, to one or more of the following:
                            ``(i) Any public water system 
                        described in subsection (a)(2) to 
                        acquire land or a conservation easement 
                        from a willing seller or grantor, if 
                        the purpose of the acquisition is to 
                        protect the source water of the system 
                        from contamination and to ensure 
                        compliance with national primary 
                        drinking water regulations.
                            ``(ii) Any community water system 
                        to implement local, voluntary source 
                        water protection measures to protect 
                        source water in areas delineated 
                        pursuant to section 1453, in order to 
                        facilitate compliance with national 
                        primary drinking water regulations 
                        applicable to the system under section 
                        1412 or otherwise significantly further 
                        the health protection objectives of 
                        this title. Funds authorized under this 
                        clause may be used to fund only 
                        voluntary, incentive-based mechanisms.
                            ``(iii) Any community water system 
                        to provide funding in accordance with 
                        section 1454(a)(1)(B)(i).
                    ``(B) Provide assistance, including 
                technical and financial assistance, to any 
                public water system as part of a capacity 
                development strategy developed and implemented 
                in accordance with section 1420(c).
                    ``(C) Make expenditures from the 
                capitalization grant of the State for fiscal 
                years 1996 and 1997 to delineate and assess 
                source water protection areas in accordance 
                with section 1453, except that funds set aside 
                for such expenditure shall be obligated within 
                4 fiscal years.
                    ``(D) Make expenditures from the fund for 
                the establishment and implementation of 
                wellhead protection programs under section 
                1428.
            ``(2) Limitation.--For each fiscal year, the total 
        amount of assistance provided and expenditures made by 
        a State under this subsection may not exceed 15 percent 
        of the amount of the capitalization grant received by 
        the State for that year and may not exceed 10 percent 
        of that amount for any one of the following activities:
                    ``(A) To acquire land or conservation 
                easements pursuant to paragraph (1)(A)(i).
                    ``(B) To provide funding to implement 
                voluntary, incentive-based source water quality 
                protection measures pursuant to clauses (ii) 
                and (iii) of paragraph (1)(A).
                    ``(C) To provide assistance through a 
                capacity development strategy pursuant to 
                paragraph (1)(B).
                    ``(D) To make expenditures to delineate or 
                assess source water protection areas pursuant 
                to paragraph (1)(C).
                    ``(E) To make expenditures to establish and 
                implement wellhead protection programs pursuant 
                to paragraph (1)(D).
            ``(3) Statutory construction.--Nothing in this 
        section creates or conveys any new authority to a 
        State, political subdivision of a State, or community 
        water system for any new regulatory measure, or limits 
        any authority of a State, political subdivision of a 
        State or community water system.
    ``(l) Savings.--The failure or inability of any public 
water system to receive funds under this section or any other 
loan or grant program, or any delay in obtaining the funds, 
shall not alter the obligation of the system to comply in a 
timely manner with all applicable drinking water standards and 
requirements of this title.
    ``(m) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out the purposes of this 
section $599,000,000 for the fiscal year 1994 and 
$1,000,000,000 for each of the fiscal years 1995 through 2003. 
To the extent amounts authorized to be appropriated under this 
subsection in any fiscal year are not appropriated in that 
fiscal year, such amounts are authorized to be appropriated in 
a subsequent fiscal year (prior to the fiscal year 2004). Such 
sums shall remain available until expended.
    ``(n) Health Effects Studies.--From funds appropriated 
pursuant to this section for each fiscal year, the 
Administrator shall reserve $10,000,000 for health effects 
studies on drinking water contaminants authorized by the Safe 
Drinking Water Act Amendments of 1996. In allocating funds made 
available under this subsection, the Administrator shall give 
priority to studies concerning the health effects of 
cryptosporidium (as authorized by section 1458(c)), 
disinfection byproducts (as authorized by section 1458(c)), and 
arsenic (as authorized by section 1412(b)(12)(A)), and the 
implementation of a plan for studies of subpopulations at 
greater risk of adverse effects (as authorized by section 
1458(a)).
    ``(o) Monitoring for Unregulated Contaminants.--From funds 
appropriated pursuant to this section for each fiscal year 
beginning with fiscal year 1998, the Administrator shall 
reserve $2,000,000 to pay the costs of monitoring for 
unregulated contaminants under section 1445(a)(2)(C).
    ``(p) Demonstration Project for State of Virginia.--
Notwithstanding the other provisions of this section limiting 
the use of funds deposited in a State loan fund from any State 
allotment, the State of Virginia may, as a single demonstration 
and with the approval of the Virginia General Assembly and the 
Administrator, conduct a program to demonstrate alternative 
approaches to intergovernmental coordination to assist in the 
financing of new drinking water facilities in the following 
rural communities in southwestern Virginia where none exists on 
the date of enactment of the Safe Drinking Water Act Amendments 
of 1996 and where such communities are experiencing economic 
hardship: Lee County, Wise County, Scott County, Dickenson 
County, Russell County, Buchanan County, Tazewell County, and 
the city of Norton, Virginia. The funds allotted to that State 
and deposited in the State loan fund may be loaned to a 
regional endowment fund for the purpose set forth in this 
subsection under a plan to be approved by the Administrator. 
The plan may include an advisory group that includes 
representatives of such counties.
    ``(q) Small System Technical Assistance.--The Administrator 
may reserve up to 2 percent of the total funds appropriated 
pursuant to subsection (m) for each of the fiscal years 1997 
through 2003 to carry out the provisions of section 1442(e) 
(relating to technical assistance for small systems), except 
that the total amount of funds made available for such purpose 
in any fiscal year through appropriations (as authorized by 
section 1442(e)) and reservations made pursuant to this 
subsection shall not exceed the amount authorized by section 
1442(e).
    ``(r) Evaluation.--The Administrator shall conduct an 
evaluation of the effectiveness of the State loan funds through 
fiscal year 2001. The evaluation shall be submitted to the 
Congress at the same time as the President submits to the 
Congress, pursuant to section 1108 of title 31, United States 
Code, an appropriations request for fiscal year 2003 relating 
to the budget of the Environmental Protection Agency.''.

SEC. 131. STATE GROUND WATER PROTECTION GRANTS.

    Part C (42 U.S.C. 300j et seq.) is amended by adding at the 
end the following:


                 ``state ground water protection grants


    ``Sec. 1429. (a) In General.--The Administrator may make a 
grant to a State for the development and implementation of a 
State program to ensure the coordinated and comprehensive 
protection of ground water resources within the State.
    ``(b) Guidance.--Not later than 1 year after the date of 
enactment of the Safe Drinking Water Act Amendments of 1996, 
and annually thereafter, the Administrator shall publish 
guidance that establishes procedures for application for State 
groundwater protection program assistance and that identifies 
key elements of State ground water protection programs.
    ``(c) Conditions of Grants.--
            ``(1) In general.--The Administrator shall award 
        grants to States that submit an application that is 
        approved by the Administrator. The Administrator shall 
        determine the amount of a grant awarded pursuant to 
        this paragraph on the basis of an assessment of the 
        extent of ground water resources in the State and the 
        likelihood that awarding the grant will result in 
        sustained and reliable protection of ground water 
        quality.
            ``(2) Innovative program grants.--The Administrator 
        may also award a grant pursuant to this subsection for 
        innovative programs proposed by a State for the 
        prevention of ground water contamination.
            ``(3) Allocation of funds.--The Administrator 
        shall, at a minimum, ensure that, for each fiscal year, 
        not less than 1 percent of funds made available to the 
        Administrator by appropriations to carry out this 
        section are allocated to each State that submits an 
        application that is approved by the Administrator 
        pursuant to this section.
            ``(4) Limitation on grants.--No grant awarded by 
        the Administrator may be used for a project to 
        remediate ground water contamination.
    ``(d) Amount of Grants.--The amount of a grant awarded 
pursuant to paragraph (1) shall not exceed 50 percent of the 
eligible costs of carrying out the ground water protection 
program that is the subject of the grant (as determined by the 
Administrator) for the 1-year period beginning on the date that 
the grant is awarded. The State shall pay a State share to 
cover the costs of the ground water protection program from 
State funds in an amount that is not less than 50 percent of 
the cost of conducting the program.
    ``(e) Evaluations and Reports.--Not later than 3 years 
after the date of enactment of the Safe Drinking Water Act 
Amendments of 1996, and every 3 years thereafter, the 
Administrator shall evaluate the State ground water protection 
programs that are the subject of grants awarded pursuant to 
this section and report to the Congress on the status of ground 
water quality in the United States and the effectiveness of 
State programs for ground water protection.
    ``(f) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section 
$15,000,000 for each of fiscal years 1997 through 2003.''.

SEC. 132. SOURCE WATER ASSESSMENT.

    (a) In General.--Part E (42 U.S.C. 300j et seq.) is amended 
by adding at the end the following:


                   ``source water quality assessment


    ``Sec. 1453. (a) Source Water Assessment.--
            ``(1) Guidance.--Within 12 months after the date of 
        enactment of the Safe Drinking Water Act Amendments of 
        1996, after notice and comment, the Administrator shall 
        publish guidance for States exercising primary 
        enforcement responsibility for public water systems to 
        carry out directly or through delegation (for the 
        protection and benefit of public water systems and for 
        the support of monitoring flexibility) a source water 
        assessment program within the State's boundaries. Each 
        State adopting modifications to monitoring requirements 
        pursuant to section 1418(b) shall, prior to adopting 
        such modifications, have an approved source water 
        assessment program under this section and shall carry 
        out the program either directly or through delegation.
            ``(2) Program requirements.--A source water 
        assessment program under this subsection shall--
                    ``(A) delineate the boundaries of the 
                assessment areas in such State from which one 
                or more public water systems in the State 
                receive supplies of drinking water, using all 
                reasonably available hydrogeologic information 
                on the sources of the supply of drinking water 
                in the State and the water flow, recharge, and 
                discharge and any other reliable information as 
                the State deems necessary to adequately 
                determine such areas; and
                    ``(B) identify for contaminants regulated 
                under this title for which monitoring is 
                required under this title (or any unregulated 
                contaminants selected by the State, in its 
                discretion, which the State, for the purposes 
                of this subsection, has determined may present 
                a threat to public health), to the extent 
                practical, the origins within each delineated 
                area of such contaminants to determine the 
                susceptibility of the public water systems in 
                the delineated area to such contaminants.
            ``(3) Approval, implementation, and monitoring 
        relief.--A State source water assessment program under 
        this subsection shall be submitted to the Administrator 
        within 18 months after the Administrator's guidance is 
        issued under this subsection and shall be deemed 
        approved 9 months after the date of such submittal 
        unless the Administrator disapproves the program as 
        provided in section 1428(c). States shall begin 
        implementation of the program immediately after its 
        approval. The Administrator's approval of a State 
        program under this subsection shall include a 
        timetable, established in consultation with the State, 
        allowing not more than 2 years for completion after 
        approval of the program. Public water systems seeking 
        monitoring relief in addition to the interim relief 
        provided under section 1418(a) shall be eligible for 
        monitoring relief, consistent with section 1418(b), 
        upon completion of the assessment in the delineated 
        source water assessment area or areas concerned.
            ``(4) Timetable.--The timetable referred to in 
        paragraph (3) shall take into consideration the 
        availability to the State of funds under section 1452 
        (relating to State loan funds) for assessments and 
        other relevant factors. The Administrator may extend 
        any timetable included in a State program approved 
        under paragraph (3) to extend the period for completion 
        by an additional 18 months.
            ``(5) Demonstration project.--The Administrator 
        shall, as soon as practicable, conduct a demonstration 
        project, in consultation with other Federal agencies, 
        to demonstrate the most effective and protective means 
        of assessing and protecting source waters serving large 
        metropolitan areas and located on Federal lands.
            ``(6) Use of other programs.--To avoid duplication 
        and to encourage efficiency, the program under this 
        section may make use of any of the following:
                    ``(A) Vulnerability assessments, sanitary 
                surveys, and monitoring programs.
                    ``(B) Delineations or assessments of ground 
                water sources under a State wellhead protection 
                program developed pursuant to this section.
                    ``(C) Delineations or assessments of 
                surface or ground water sources under a State 
                pesticide management plan developed pursuant to 
                the Pesticide and Ground Water State Management 
                Plan Regulation (subparts I and J of part 152 
                of title 40, Code of Federal Regulations), 
                promulgated under section 3(d) of the Federal 
                Insecticide, Fungicide, and Rodenticide Act (7 
                U.S.C. 136a(d)).
                    ``(D) Delineations or assessments of 
                surface water sources under a State watershed 
                initiative or to satisfy the watershed 
                criterion for determining if filtration is 
                required under the Surface Water Treatment Rule 
                (section 141.70 of title 40, Code of Federal 
                Regulations).
                    ``(E) Delineations or assessments of 
                surface or ground water sources under programs 
                or plans pursuant to the Federal Water 
                Pollution Control Act.
            ``(7) Public availability.--The State shall make 
        the results of the source water assessments conducted 
        under this subsection available to the public.
    ``(b) Approval and Disapproval.--For provisions relating to 
program approval and disapproval, see section 1428(c).''.
    (b) Approval and Disapproval of State Programs.--Section 
1428 (42 U.S.C. 300h-7) is amended as follows:
            (1) Amend the first sentence of subsection (c)(1) 
        to read as follows: ``If, in the judgment of the 
        Administrator, a State program or portion thereof under 
        subsection (a) is not adequate to protect public water 
        systems as required by subsection (a) or a State 
        program under section 1453 or section 1418(b) does not 
        meet the applicable requirements of section 1453 or 
        section 1418(b), the Administrator shall disapprove 
        such program or portion thereof.''.
            (2) Add after the second sentence of subsection 
        (c)(1) the following: ``A State program developed 
        pursuant to section 1453 or section 1418(b) shall be 
        deemed to meet the applicable requirements of section 
        1453 or section 1418(b) unless the Administrator 
        determines within 9 months of the receipt of the 
        program that such program (or portion thereof) does not 
        meet such requirements.''.
            (3) In the third sentence of subsection (c)(1) and 
        in subsection (c)(2), strike ``is inadequate'' and 
        insert ``is disapproved''.
            (4) In subsection (b), add the following before the 
        period at the end of the first sentence: ``and source 
        water assessment programs under section 1453''.

SEC. 133. SOURCE WATER PETITION PROGRAM.

    (a) In General.--Part E (42 U.S.C. 300j et seq.) is amended 
by adding at the end the following:


                    ``source water petition program


    ``Sec. 1454. (a) Petition Program.--
            ``(1) In general.--
                    ``(A) Establishment.--A State may establish 
                a program under which an owner or operator of a 
                community water system in the State, or a 
                municipal or local government or political 
                subdivision of a State, may submit a source 
                water quality protection partnership petition 
                to the State requesting that the State assist 
                in the local development of a voluntary, 
                incentive-based partnership, among the owner, 
                operator, or government and other persons 
                likely to be affected by the recommendations of 
                the partnership, to--
                            ``(i) reduce the presence in 
                        drinking water of contaminants that may 
                        be addressed by a petition by 
                        considering the origins of the 
                        contaminants, including to the maximum 
                        extent practicable the specific 
                        activities that affect the drinking 
                        water supply of a community;
                            ``(ii) obtain financial or 
                        technical assistance necessary to 
                        facilitate establishment of a 
                        partnership, or to develop and 
                        implement recommendations of a 
                        partnership for the protection of 
                        source water to assist in the provision 
                        of drinking water that complies with 
                        national primary drinking water 
                        regulations with respect to 
                        contaminants addressed by a petition; 
                        and
                            ``(iii) develop recommendations 
                        regarding voluntary and incentive-based 
                        strategies for the long-term protection 
                        of the source water of community water 
                        systems.
                    ``(B) Funding.--Each State may--
                            ``(i) use funds set aside pursuant 
                        to section 1452(k)(1)(A)(iii) by the 
                        State to carry out a program described 
                        in subparagraph (A), including 
                        assistance to voluntary local 
                        partnerships for the development and 
                        implementation of partnership 
                        recommendations for the protection of 
                        source water such as source water 
                        quality assessment, contingency plans, 
                        and demonstration projects for partners 
                        within a source water area delineated 
                        under section 1453(a); and
                            ``(ii) provide assistance in 
                        response to a petition submitted under 
                        this subsection using funds referred to 
                        in subsection (b)(2)(B).
            ``(2) Objectives.--The objectives of a petition 
        submitted under this subsection shall be to--
                    ``(A) facilitate the local development of 
                voluntary, incentive-based partnerships among 
                owners and operators of community water 
                systems, governments, and other persons in 
                source water areas; and
                    ``(B) obtain assistance from the State in 
                identifying resources which are available to 
                implement the recommendations of the 
                partnerships to address the origins of drinking 
                water contaminants that may be addressed by a 
                petition (including to the maximum extent 
                practicable the specific activities 
                contributing to the presence of the 
                contaminants) that affect the drinking water 
                supply of a community.
            ``(3) Contaminants addressed by a petition.--A 
        petition submitted to a State under this subsection may 
        address only those contaminants--
                    ``(A) that are pathogenic organisms for 
                which a national primary drinking water 
                regulation has been established or is required 
                under section 1412; or
                    ``(B) for which a national primary drinking 
                water regulation has been promulgated or 
                proposed and that are detected by adequate 
                monitoring methods in the source water at the 
                intake structure or in any collection, 
                treatment, storage, or distribution facilities 
                by the community water systems at levels--
                            ``(i) above the maximum contaminant 
                        level; or
                            ``(ii) that are not reliably and 
                        consistently below the maximum 
                        contaminant level.
            ``(4) Contents.--A petition submitted under this 
        subsection shall, at a minimum--
                    ``(A) include a delineation of the source 
                water area in the State that is the subject of 
                the petition;
                    ``(B) identify, to the maximum extent 
                practicable, the origins of the drinking water 
                contaminants that may be addressed by a 
                petition (including to the maximum extent 
                practicable the specific activities 
                contributing to the presence of the 
                contaminants) in the source water area 
                delineated under section 1453;
                    ``(C) identify any deficiencies in 
                information that will impair the development of 
                recommendations by the voluntary local 
                partnership to address drinking water 
                contaminants that may be addressed by a 
                petition;
                    ``(D) specify the efforts made to establish 
                the voluntary local partnership and obtain the 
                participation of--
                            ``(i) the municipal or local 
                        government or other political 
                        subdivision of the State with 
                        jurisdiction over the source water area 
                        delineated under section 1453; and
                            ``(ii) each person in the source 
                        water area delineated under section 
                        1453--
                                    ``(I) who is likely to be 
                                affected by recommendations of 
                                the voluntary local 
                                partnership; and
                                    ``(II) whose participation 
                                is essential to the success of 
                                the partnership;
                    ``(E) outline how the voluntary local 
                partnership has or will, during development and 
                implementation of recommendations of the 
                voluntary local partnership, identify, 
                recognize and take into account any voluntary 
                or other activities already being undertaken by 
                persons in the source water area delineated 
                under section 1453 under Federal or State law 
                to reduce the likelihood that contaminants will 
                occur in drinking water at levels of public 
                health concern; and
                    ``(F) specify the technical, financial, or 
                other assistance that the voluntary local 
                partnership requests of the State to develop 
                the partnership or to implement recommendations 
                of the partnership.
    ``(b) Approval or Disapproval of Petitions.--
            ``(1) In general.--After providing notice and an 
        opportunity for public comment on a petition submitted 
        under subsection (a), the State shall approve or 
        disapprove the petition, in whole or in part, not later 
        than 120 days after the date of submission of the 
        petition.
            ``(2) Approval.--The State may approve a petition 
        if the petition meets the requirements established 
        under subsection (a). The notice of approval shall, at 
        a minimum, include for informational purposes--
                    ``(A) an identification of technical, 
                financial, or other assistance that the State 
                will provide to assist in addressing the 
                drinking water contaminants that may be 
                addressed by a petition based on--
                            ``(i) the relative priority of the 
                        public health concern identified in the 
                        petition with respect to the other 
                        water quality needs identified by the 
                        State;
                            ``(ii) any necessary coordination 
                        that the State will perform of the 
                        program established under this section 
                        with programs implemented or planned by 
                        other States under this section; and
                            ``(iii) funds available (including 
                        funds available from a State revolving 
                        loan fund established under title VI of 
                        the Federal Water Pollution Control Act 
                        (33 U.S.C. 1381 et seq.) or section 
                        1452;
                    ``(B) a description of technical or 
                financial assistance pursuant to Federal and 
                State programs that is available to assist in 
                implementing recommendations of the partnership 
                in the petition, including--
                            ``(i) any program established under 
                        the Federal Water Pollution Control Act 
                        (33 U.S.C. 1251 et seq.);
                            ``(ii) the program established 
                        under section 6217 of the Coastal Zone 
                        Act Reauthorization Amendments of 1990 
                        (16 U.S.C. 1455b);
                            ``(iii) the agricultural water 
                        quality protection program established 
                        under chapter 2 of subtitle D of title 
                        XII of the Food Security Act of 1985 
                        (16 U.S.C. 3838 et seq.);
                            ``(iv) the sole source aquifer 
                        protection program established under 
                        section 1427;
                            ``(v) the community wellhead 
                        protection program established under 
                        section 1428;
                            ``(vi) any pesticide or ground 
                        water management plan;
                            ``(vii) any voluntary agricultural 
                        resource management plan or voluntary 
                        whole farm or whole ranch management 
                        plan developed and implemented under a 
                        process established by the Secretary of 
                        Agriculture; and
                            ``(viii) any abandoned well closure 
                        program; and
                    ``(C) a description of activities that will 
                be undertaken to coordinate Federal and State 
                programs to respond to the petition.
            ``(3) Disapproval.--If the State disapproves a 
        petition submitted under subsection (a), the State 
        shall notify the entity submitting the petition in 
        writing of the reasons for disapproval. A petition may 
        be resubmitted at any time if--
                    ``(A) new information becomes available;
                    ``(B) conditions affecting the source water 
                that is the subject of the petition change; or
                    ``(C) modifications are made in the type of 
                assistance being requested.
    ``(c) Grants To Support State Programs.--
            ``(1) In general.--The Administrator may make a 
        grant to each State that establishes a program under 
        this section that is approved under paragraph (2). The 
        amount of each grant shall not exceed 50 percent of the 
        cost of administering the program for the year in which 
        the grant is available.
            ``(2) Approval.--In order to receive grant 
        assistance under this subsection, a State shall submit 
        to the Administrator for approval a plan for a source 
        water quality protection partnership program that is 
        consistent with the guidance published under subsection 
        (d). The Administrator shall approve the plan if the 
        plan is consistent with the guidance published under 
        subsection (d).
    ``(d) Guidance.--
            ``(1) In general.--Not later than 1 year after the 
        date of enactment of this section, the Administrator, 
        in consultation with the States, shall publish guidance 
        to assist--
                    ``(A) States in the development of a source 
                water quality protection partnership program; 
                and
                    ``(B) municipal or local governments or 
                political subdivisions of a State and community 
                water systems in the development of source 
                water quality protection partnerships and in 
                the assessment of source water quality.
            ``(2) Contents of the guidance.--The guidance 
        shall, at a minimum--
                    ``(A) recommend procedures for the approval 
                or disapproval by a State of a petition 
                submitted under subsection (a);
                    ``(B) recommend procedures for the 
                submission of petitions developed under 
                subsection (a);
                    ``(C) recommend criteria for the assessment 
                of source water areas within a State; and
                    ``(D) describe technical or financial 
                assistance pursuant to Federal and State 
                programs that is available to address the 
                contamination of sources of drinking water and 
                to develop and respond to petitions submitted 
                under subsection (a).
    ``(e) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section 
$5,000,000 for each of the fiscal years 1997 through 2003. Each 
State with a plan for a program approved under subsection (b) 
shall receive an equitable portion of the funds available for 
any fiscal year.
    ``(f) Statutory Construction.--Nothing in this section--
            ``(1)(A) creates or conveys new authority to a 
        State, political subdivision of a State, or community 
        water system for any new regulatory measure; or
            ``(B) limits any authority of a State, political 
        subdivision, or community water system; or
            ``(2) precludes a community water system, municipal 
        or local government, or political subdivision of a 
        government from locally developing and carrying out a 
        voluntary, incentive-based, source water quality 
        protection partnership to address the origins of 
        drinking water contaminants of public health 
        concern.''.
    (b) Sense of the Congress.--It is the sense of the Congress 
that each State in establishing priorities under section 
606(c)(1) of the Federal Water Pollution Control Act should 
give special consideration to projects that are eligible for 
funding under that Act and have been recommended pursuant to a 
petition submitted under section 1454 of the Safe Drinking 
Water Act.

SEC. 134. WATER CONSERVATION PLAN.

    Part E (42 U.S.C. 300j et seq.) is amended by adding at the 
end the following:


                       ``water conservation plan


    ``Sec. 1455. (a) Guidelines.--Not later than 2 years after 
the date of enactment of the Safe Drinking Water Act Amendments 
of 1996, the Administrator shall publish in the Federal 
Register guidelines for water conservation plans for public 
water systems serving fewer than 3,300 persons, public water 
systems serving between 3,300 and 10,000 persons, and public 
water systems serving more than 10,000 persons, taking into 
consideration such factors as water availability and climate.
    ``(b) Loans or Grants.--Within 1 year after publication of 
the guidelines under subsection (a), a State exercising primary 
enforcement responsibility for public water systems may require 
a public water system, as a condition of receiving a loan or 
grant from a State loan fund under section 1452, to submit with 
its application for such loan or grant a water conservation 
plan consistent with such guidelines.''.

SEC. 135. DRINKING WATER ASSISTANCE TO COLONIAS.

    Part E (42 U.S.C. 300j et seq.) is amended by adding the 
following new section at the end thereof:


                        ``assistance to colonias


    ``Sec. 1456. (a) Definitions.--As used in this section:
            ``(1) Border state.--The term `border State' means 
        Arizona, California, New Mexico, and Texas.
            ``(2) Eligible community.--The term `eligible 
        community' means a low-income community with economic 
        hardship that--
                    ``(A) is commonly referred to as a colonia;
                    ``(B) is located along the United States-
                Mexico border (generally in an unincorporated 
                area); and
                    ``(C) lacks a safe drinking water supply or 
                adequate facilities for the provision of safe 
                drinking water for human consumption.
    ``(b) Grants To Alleviate Health Risks.--The Administrator 
of the Environmental Protection Agency and the heads of other 
appropriate Federal agencies are authorized to award grants to 
a border State to provide assistance to eligible communities to 
facilitate compliance with national primary drinking water 
regulations or otherwise significantly further the health 
protection objectives of this title.
    ``(c) Use of Funds.--Each grant awarded pursuant to 
subsection (b) shall be used to provide assistance to one or 
more eligible communities with respect to which the residents 
are subject to a significant health risk (as determined by the 
Administrator or the head of the Federal agency making the 
grant) attributable to the lack of access to an adequate and 
affordable drinking water supply system.
    ``(d) Cost Sharing.--The amount of a grant awarded pursuant 
to this section shall not exceed 50 percent of the costs of 
carrying out the project that is the subject of the grant.
    ``(e) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section 
$25,000,000 for each of the fiscal years 1997 through 1999.''.

SEC. 136. ESTROGENIC SUBSTANCES SCREENING PROGRAM.

    Part E (42 U.S.C. 300j et seq.) is amended by adding at the 
end the following:


               ``estrogenic substances screening program


    ``Sec. 1457. In addition to the substances referred to in 
section 408(p)(3)(B) of the Federal Food, Drug, and Cosmetic 
Act (21 U.S.C. 346a(p)(3)(B)) the Administrator may provide for 
testing under the screening program authorized by section 
408(p) of such Act, in accordance with the provisions of 
section 408(p) of such Act, of any other substance that may be 
found in sources of drinking water if the Administrator 
determines that a substantial population may be exposed to such 
substance.''.

SEC. 137. DRINKING WATER STUDIES.

    Part E (42 U.S.C. 300j et seq.) is amended by adding after 
section 1457 the following:


                        ``drinking water studies


    ``Sec. 1458. (a) Subpopulations at Greater Risk.--
            ``(1) In general.--The Administrator shall conduct 
        a continuing program of studies to identify groups 
        within the general population that may be at greater 
        risk than the general population of adverse health 
        effects from exposure to contaminants in drinking 
        water. The study shall examine whether and to what 
        degree infants, children, pregnant women, the elderly, 
        individuals with a history of serious illness, or other 
        subpopulations that can be identified and characterized 
        are likely to experience elevated health risks, 
        including risks of cancer, from contaminants in 
        drinking water.
            ``(2) Report.--Not later than 4 years after the 
        date of enactment of this subsection and periodically 
        thereafter as new and significant information becomes 
        available, the Administrator shall report to the 
        Congress on the results of the studies.
    ``(b) Biological Mechanisms.--The Administrator shall 
conduct biomedical studies to--
            ``(1) understand the mechanisms by which chemical 
        contaminants are absorbed, distributed, metabolized, 
        and eliminated from the human body, so as to develop 
        more accurate physiologically based models of the 
        phenomena;
            ``(2) understand the effects of contaminants and 
        the mechanisms by which the contaminants cause adverse 
        effects (especially noncancer and infectious effects) 
        and the variations in the effects among humans, 
        especially subpopulations at greater risk of adverse 
        effects, and between test animals and humans; and
            ``(3) develop new approaches to the study of 
        complex mixtures, such as mixtures found in drinking 
        water, especially to determine the prospects for 
        synergistic or antagonistic interactions that may 
        affect the shape of the dose-response relationship of 
        the individual chemicals and microbes, and to examine 
        noncancer endpoints and infectious diseases, and 
        susceptible individuals and subpopulations.
    ``(c) Studies on Harmful Substances in Drinking Water.--
            ``(1) Development of studies.--The Administrator 
        shall, not later than 180 days after the date of 
        enactment of this section and after consultation with 
        the Secretary of Health and Human Services, the 
        Secretary of Agriculture, and, as appropriate, the 
        heads of other Federal agencies, conduct the studies 
        described in paragraph (2) to support the development 
        and implementation of the most current version of each 
        of the following:
                    ``(A) Enhanced Surface Water Treatment Rule 
                (59 Fed. Reg. 38832 (July 29, 1994)).
                    ``(B) Disinfectant and Disinfection 
                Byproducts Rule (59 Fed. Reg. 38668 (July 29, 
                1994)).
                    ``(C) Ground Water Disinfection Rule 
                (availability of draft summary announced at (57 
                Fed. Reg. 33960; July 31, 1992)).
            ``(2) Contents of studies.--The studies required by 
        paragraph (1) shall include, at a minimum, each of the 
        following:
                    ``(A) Toxicological studies and, if 
                warranted, epidemiological studies to determine 
                what levels of exposure from disinfectants and 
                disinfection byproducts, if any, may be 
                associated with developmental and birth defects 
                and other potential toxic end points.
                    ``(B) Toxicological studies and, if 
                warranted, epidemiological studies to quantify 
                the carcinogenic potential from exposure to 
                disinfection byproducts resulting from 
                different disinfectants.
                    ``(C) The development of dose-response 
                curves for pathogens, including cryptosporidium 
                and the Norwalk virus.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this 
        subsection $12,500,000 for each of fiscal years 1997 
        through 2003.
    ``(d) Waterborne Disease Occurrence Study.--
            ``(1) System.--The Director of the Centers for 
        Disease Control and Prevention, and the Administrator 
        shall jointly--
                    ``(A) within 2 years after the date of 
                enactment of this section, conduct pilot 
                waterborne disease occurrence studies for at 
                least 5 major United States communities or 
                public water systems; and
                    ``(B) within 5 years after the date of 
                enactment of this section, prepare a report on 
                the findings of the pilot studies, and a 
                national estimate of waterborne disease 
                occurrence.
            ``(2) Training and education.--The Director and 
        Administrator shall jointly establish a national health 
        care provider training and public education campaign to 
        inform both the professional health care provider 
        community and the general public about waterborne 
        disease and the symptoms that may be caused by 
        infectious agents, including microbial contaminants. In 
        developing such a campaign, they shall seek comment 
        from interested groups and individuals, including 
        scientists, physicians, State and local governments, 
        environmental groups, public water systems, and 
        vulnerable populations.
            ``(3) Funding.--There are authorized to be 
        appropriated for each of the fiscal years 1997 through 
        2001, $3,000,000 to carry out this subsection. To the 
        extent funds under this subsection are not fully 
        appropriated, the Administrator may use not more than 
        $2,000,000 of the funds from amounts reserved under 
        section 1452(n) for health effects studies for purposes 
        of this subsection. The Administrator may transfer a 
        portion of such funds to the Centers for Disease 
        Control and Prevention for such purposes.''.

                   TITLE II--DRINKING WATER RESEARCH

SEC. 201. DRINKING WATER RESEARCH AUTHORIZATION.

    Other than amounts authorized to be appropriated to the 
Administrator of the Environmental Protection Agency under 
other titles of this Act, there are authorized to be 
appropriated such additional sums as may be necessary for 
drinking water research for fiscal years 1997 through 2003. The 
annual total of such additional sums authorized to be 
appropriated under this section shall not exceed $26,593,000.

SEC. 202. SCIENTIFIC RESEARCH REVIEW.

    (a) In General.--The Administrator shall--
            (1) develop a strategic plan for drinking water 
        research activities throughout the Environmental 
        Protection Agency (in this section referred to as the 
        ``Agency'');
            (2) integrate that strategic plan into ongoing 
        Agency planning activities; and
            (3) review all Agency drinking water research to 
        ensure the research--
                    (A) is of high quality; and
                    (B) does not duplicate any other research 
                being conducted by the Agency.
      (b) Plan.--The Administrator shall transmit the plan to 
the Committees on Commerce and Science of the House of 
Representatives and the Committee on Environment and Public 
Works of the Senate and the plan shall be made available to the 
public.

SEC. 203. NATIONAL CENTER FOR GROUND WATER RESEARCH.

      The Administrator of the Environmental Protection Agency, 
acting through the Robert S. Kerr Environmental Research 
Laboratory, is authorized to reestablish a partnership between 
the Laboratory and the National Center for Ground Water 
Research, a university consortium, to conduct research, 
training, and technology transfer for ground water quality 
protection and restoration. No funds are authorized by this 
section.

                  TITLE III--MISCELLANEOUS PROVISIONS

SEC. 301. WATER RETURN FLOWS.

    Section 3013 of Public Law 102-486 (42 U.S.C. 13551) is 
repealed.

SEC. 302. TRANSFER OF FUNDS.

    (a) In General.--Notwithstanding any other provision of 
law, at any time after the date 1 year after a State 
establishes a State loan fund pursuant to section 1452 of the 
Safe Drinking Water Act but prior to fiscal year 2002, a 
Governor of the State may--
            (1) reserve up to 33 percent of a capitalization 
        grant made pursuant to such section 1452 and add the 
        funds reserved to any funds provided to the State 
        pursuant to section 601 of the Federal Water Pollution 
        Control Act (33 U.S.C. 1381); and
            (2) reserve in any year a dollar amount up to the 
        dollar amount that may be reserved under paragraph (1) 
        for that year from capitalization grants made pursuant 
        to section 601 of such Act (33 U.S.C. 1381) and add the 
        reserved funds to any funds provided to the State 
        pursuant to section 1452 of the Safe Drinking Water 
        Act.
    (b) Report.--Not later than 4 years after the date of 
enactment of this Act, the Administrator shall submit a report 
to the Congress regarding the implementation of this section, 
together with the Administrator's recommendations, if any, for 
modifications or improvement.
    (c) State Match.--Funds reserved pursuant to this section 
shall not be considered to be a State match of a capitalization 
grant required pursuant to section 1452 of the Safe Drinking 
Water Act or the Federal Water Pollution Control Act (33 U.S.C. 
1251 et seq.).

SEC. 303. GRANTS TO ALASKA TO IMPROVE SANITATION IN RURAL AND NATIVE 
                    VILLAGES.

    (a) In General.--The Administrator of the Environmental 
Protection Agency may make grants to the State of Alaska for 
the benefit of rural and Native villages in Alaska to pay the 
Federal share of the cost of--
            (1) the development and construction of public 
        water systems and wastewater systems to improve the 
        health and sanitation conditions in the villages; and
            (2) training, technical assistance, and educational 
        programs relating to the operation and management of 
        sanitation services in rural and Native villages.
    (b) Federal Share.--The Federal share of the cost of the 
activities described in subsection (a) shall be 50 percent.
    (c) Administrative Expenses.--The State of Alaska may use 
an amount not to exceed 4 percent of any grant made available 
under this subsection for administrative expenses necessary to 
carry out the activities described in subsection (a).
    (d) Consultation With the State of Alaska.--The 
Administrator shall consult with the State of Alaska on a 
method of prioritizing the allocation of grants under 
subsection (a) according to the needs of, and relative health 
and sanitation conditions in, each eligible village.
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated $15,000,000 for each of the fiscal years 
1997 through 2000 to carry out this section.

SEC. 304. SENSE OF THE CONGRESS.

    It is the sense of the Congress that appropriations for 
grants under section 130 (relating to New York City watershed), 
section 137 (relating to colonias), and section 303 (relating 
to Alaska Native villages) should not be provided if such 
appropriations would prevent the adequate capitalization of 
State revolving loan funds.

SEC. 305. BOTTLED DRINKING WATER STANDARDS.

    Section 410 of the Federal Food, Drug, and Cosmetic Act (21 
U.S.C. 349) is amended as follows:
            (1) By striking ``Whenever'' and inserting ``(a) 
        Except as provided in subsection (b), whenever''.
            (2) By adding at the end the following new 
        subsection:
    ``(b)(1) Not later than 180 days before the effective date 
of a national primary drinking water regulation promulgated by 
the Administrator of the Environmental Protection Agency for a 
contaminant under section 1412 of the Safe Drinking Water Act 
(42 U.S.C. 300g-1), the Secretary shall promulgate a standard 
of quality regulation under this subsection for that 
contaminant in bottled water or make a finding that such a 
regulation is not necessary to protect the public health 
because the contaminant is contained in water in public water 
systems (as defined under section 1401(4) of such Act (42 
U.S.C. 300f(4))) but not in water used for bottled drinking 
water. The effective date for any such standard of quality 
regulation shall be the same as the effective date for such 
national primary drinking water regulation, except for any 
standard of quality of regulation promulgated by the Secretary 
before the date of enactment of the Safe Drinking Water Act 
Amendments of 1996 for which (as of such date of enactment) an 
effective date had not been established. In the case of a 
standard of quality regulation to which such exception applies, 
the Secretary shall promulgate monitoring requirements for the 
contaminants covered by the regulation not later than 2 years 
after such date of enactment.
    ``(2) A regulation issued by the Secretary as provided in 
this subsection shall include any monitoring requirements that 
the Secretary determines appropriate for bottled water.
    ``(3) A regulation issued by the Secretary as provided in 
this subsection shall require the following:
            ``(A) In the case of contaminants for which a 
        maximum contaminant level is established in a national 
        primary drinking water regulation under section 1412 of 
        the Safe Drinking Water Act (42 U.S.C. 300g-1), the 
        regulation under this subsection shall establish a 
        maximum contaminant level for the contaminant in 
        bottled water which is no less stringent than the 
        maximum contaminant level provided in the national 
        primary drinking water regulation.
            ``(B) In the case of contaminants for which a 
        treatment technique is established in a national 
        primary drinking water regulation under section 1412 of 
        the Safe Drinking Water Act (42 U.S.C. 300g-1), the 
        regulation under this subsection shall require that 
        bottled water be subject to requirements no less 
        protective of the public health than those applicable 
        to water provided by public water systems using the 
        treatment technique required by the national primary 
        drinking water regulation.
    ``(4)(A) If the Secretary does not promulgate a regulation 
under this subsection within the period described in paragraph 
(1), the national primary drinking water regulation referred to 
in paragraph (1) shall be considered, as of the date on which 
the Secretary is required to establish a regulation under 
paragraph (1), as the regulation applicable under this 
subsection to bottled water.
    ``(B) In the case of a national primary drinking water 
regulation that pursuant to subparagraph (A) is considered to 
be a standard of quality regulation, the Secretary shall, not 
later than the applicable date referred to in such 
subparagraph, publish in the Federal Register a notice--
            ``(i) specifying the contents of such regulation, 
        including monitoring requirements; and
            ``(ii) providing that for purposes of this 
        paragraph the effective date for such regulation is the 
        same as the effective date for the regulation for 
        purposes of the Safe Drinking Water Act (or, if the 
        exception under paragraph (1) applies to the 
        regulation, that the effective date for the regulation 
        is not later than 2 years and 180 days after the date 
        of enactment of the Safe Drinking Water Act Amendments 
        of 1996).''.

SEC. 306. WASHINGTON AQUEDUCT.

    (a) Definitions.--In this section:
            (1) Non-federal public water supply customer.--The 
        terms ``non-Federal public water supply customer'' and 
        ``customer'' mean--
                    (A) the District of Columbia;
                    (B) Arlington County, Virginia; and
                    (C) the city of Falls Church, Virginia.
            (2) Secretary.--The term ``Secretary'' means the 
        Secretary of the Army, acting through the Chief of 
        Engineers.
            (3) Value to the government.--The term ``value to 
        the Government'' means the net present value of a 
        contract entered into under subsection (e)(2), 
        calculated in accordance with subparagraphs (A) and (B) 
        of section 502(5) of the Congressional Budget Act of 
        1974 (2 U.S.C. 66la(5)), other than section 
        502(5)(B)(I) of the Act, as though the contract 
        provided for repayment of a direct loan to a customer.
            (4) Washington aqueduct.--The term ``Washington 
        Aqueduct'' means the Washington Aqueduct facilities and 
        related facilities owned by the Federal Government as 
        of the date of enactment of this Act, including--
                    (A) the dams, intake works, conduits, and 
                pump stations that capture and transport raw 
                water from the Potomac River to the Dalecarlia 
                Reservoir;
                    (B) the infrastructure and appurtenances 
                used to treat water taken from the Potomac 
                River to potable standards; and
                    (C) related water distribution facilities.
    (b) Regional Entity.--
            (1) In general.--The Congress encourages and grants 
        consent to the customers to establish a non-Federal 
        public or private entity, or to enter into an agreement 
        with an existing non-Federal public or private entity, 
        to--
                    (A) receive title to the Washington 
                Aqueduct; and
                    (B) operate, maintain, and manage the 
                Washington Aqueduct in a manner that adequately 
                represents all interests of its customers.
            (2) Consideration.--If an entity receiving title to 
        the Washington Aqueduct is not composed entirely of 
        non-Federal public water supply customers, the entity 
        shall consider the customers' historical provision of 
        equity for the Aqueduct.
            (3) Priority access.--The customers shall have 
        priority access to any water produced by the Washington 
        Aqueduct.
            (4) Consent of the congress.--The Congress grants 
        consent to the customers to enter into any interstate 
        agreement or compact required to carry out this 
        section.
            (5) Statutory construction.--This section shall not 
        preclude the customers from pursuing any option 
        regarding ownership, operation, maintenance, and 
        management of the Washington Aqueduct.
    (c) Progress Report and Plan.--Not later than 1 year after 
the date of enactment of this Act, the Secretary shall report 
to the Committee on Environment and Public Works of the Senate 
and the Committee on Transportation and Infrastructure of the 
House of Representatives on any progress in achieving the 
objectives of subsection (b)(1) and shall submit a plan for the 
transfer of ownership, operation, maintenance, and management 
of the Washington Aqueduct to a non-Federal public or private 
entity. Such plan shall include a detailed consideration of any 
proposal to transfer such ownership, maintenance, or management 
to a private entity.
    (d) Transfer.--
            (1) In general.--Subject to subsection (b)(2), the 
        other provisions of this subsection, and any other 
        terms and conditions the Secretary considers 
        appropriate to protect the interests of the United 
        States, the Secretary shall, not later than 3 years 
        after the date of enactment of this Act and with the 
        consent of a majority of the customers and without 
        consideration to the Federal Government, transfer all 
        right, title, and interest of the United States in the 
        Washington Aqueduct, and its real property, facilities, 
        and personalty, to a non-Federal, public or private 
        entity. Approval of such transfer shall not be 
        unreasonably withheld by the Secretary.
            (2) Adequate capabilities.--The Secretary shall 
        transfer ownership of the Washington Aqueduct under 
        paragraph (1) only if the Secretary determines, after 
        opportunity for public input, that the entity to 
        receive ownership of the Aqueduct has the technical, 
        managerial, and financial capability to operate, 
        maintain, and manage the Aqueduct.
            (3) Responsibilities.--The Secretary shall not 
        transfer title under this subsection unless the entity 
        to receive title assumes full responsibility for 
        performing and financing the operation, maintenance, 
        repair, replacement, rehabilitation, and necessary 
        capital improvements of the Washington Aqueduct so as 
        to ensure the continued operation of the Washington 
        Aqueduct consistent with the Aqueduct's intended 
        purpose of providing an uninterrupted supply of potable 
        water sufficient to meet the current and future needs 
        of the Aqueduct's service area.
    (e) Borrowing Authority.--
            (1) Borrowing.--
                    (A) In general.--Subject to the other 
                provisions of this paragraph and paragraph (2), 
                the Secretary is authorized to borrow from the 
                Treasury of the United States such amounts for 
                fiscal years 1997, 1998, and 1999 as are 
                sufficient to cover any obligations that the 
                Army Corps of Engineers is required to incur in 
                carrying out capital improvements during fiscal 
                years 1997, 1998, and 1999 for the Washington 
                Aqueduct to ensure continued operation of the 
                Aqueduct until such time as a transfer of title 
                to the Aqueduct has taken place.
                    (E) Limitation.--The amount borrowed by the 
                Secretary under subparagraph (A) may not exceed 
                $29,000,000 for fiscal year 1997, $24,000,000 
                for fiscal year 1998, and $22,000,000 for 
                fiscal year 1999.
                    (C) Agreement.--Amounts borrowed under 
                subparagraph (A) may only be used for capital 
                improvements agreed to by the Army Corps of 
                Engineers and the customers.
                    (D) Terms of borrowing.--
                            (i) In general.--The Secretary of 
                        the Treasury shall provide the funds 
                        borrowed under subparagraph (A) under 
                        such terms and conditions as the 
                        Secretary of Treasury determines to be 
                        necessary and in the public interest 
                        and subject to the contracts required 
                        under paragraph (2).
                            (ii) Term.--The term of any loan 
                        made under subparagraph (A) shall be 
                        for a period of not less than 20 years.
                            (iii) Prepayment.--There shall be 
                        no penalty for the prepayment of any 
                        amounts borrowed under subparagraph 
                        (A).
            (2) Contracts with customers.--
                    (A) In general.--The borrowing authority 
                under paragraph (1)(A) shall be effective only 
                after the Chief of Engineers has entered into 
                contracts with each customer under which the 
                customer commits to repay a pro rata share 
                (based on water purchase) of the principal and 
                interest owed by the Secretary to the Secretary 
                of the Treasury under paragraph (1).
                    (B) Prepayment.--Any customer may repay, at 
                any time, the pro rata share of the principal 
                and interest then owed by the customer and 
                outstanding, or any portion thereof, without 
                penalty.
                    (C) Risk of default.--Under each of the 
                contracts, the customer that enters into the 
                contract shall commit to pay any additional 
                amount necessary to fully offset the risk of 
                default on the contract.
                    (D) Obligations.--Each contract under 
                subparagraph (A) shall include such terms and 
                conditions as the Secretary of the Treasury may 
                require so that the value to the Government of 
                the contracts entered into under subparagraph 
                (A) is estimated to be equal to the obligations 
                of the Army Corps of Engineers for carrying out 
                capital improvements at the Washington Aqueduct 
                at the time that each series of contracts is 
                entered into.
                    (E) Other conditions.--Each contract 
                entered into under subparagraph (A) shall--
                            (i) provide that the customer 
                        pledges future income only from fees 
                        assessed for principal and interest 
                        payments required by such contracts and 
                        costs to operate and maintain the 
                        Washington Aqueduct;
                            (ii) provide the United States 
                        priority in regard to income from fees 
                        assessed to operate and maintain the 
                        Washington Aqueduct; and
                            (iii) include other conditions 
                        consistent with this section that the 
                        Secretary of the Treasury determines to 
                        be appropriate.
            (3) Limitations.--
                    (A) Borrowing authority.--The Secretary's 
                borrowing authority for making capital 
                improvements at the Washington Aqueduct under 
                paragraph (1) shall not extend beyond fiscal 
                year 1999.
                    (B) Obligation authority.--Upon expiration 
                of the borrowing authority exercised under 
                paragraph (1), the Secretary shall not obligate 
                funds for making capital improvements at the 
                Washington Aqueduct except funds which are 
                provided in advance by the customers. This 
                limitation does not affect the Secretary's 
                authority to conduct normal operation and 
                maintenance activities, including minor repair 
                and replacement work.
            (4) Impact on improvement program.--Not later than 
        180 days after the date of enactment of this Act, the 
        Secretary, in consultation with other Federal agencies, 
        shall transmit to the Committee on Environment and 
        Public Works of the Senate and the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives a report that assesses the impact of 
        the borrowing authority provided under this subsection 
        on the near-term improvement projects in the Washington 
        Aqueduct Improvement Program, work scheduled, and the 
        financial liability to be incurred.
    (f) Reissuance of NPDES Permit.--Prior to reissuing a 
National Pollutant Discharge Elimination System (NPDES) permit 
for the Washington Aqueduct, the Administrator of the 
Environmental Protection Agency shall consult with the 
customers and the Secretary regarding opportunities for more 
efficient water facility configurations that might be achieved 
through various possible transfers of the Washington Aqueduct. 
Such consultation shall include specific consideration of 
concerns regarding a proposed solids recovery facility, and may 
include a public hearing.

SEC. 307. WASTEWATER ASSISTANCE TO COLONIAS.

    (a) Definitions.--As used in this section:
            (1) Border state.--The term ``border State'' means 
        Arizona, California, New Mexico, and Texas.
            (2) Eligible community.--The term ``eligible 
        community'' means a low-income community with economic 
        hardship that--
                    (A) is commonly referred to as a colonia;
                    (B) is located along the United States-
                Mexico border (generally in an unincorporated 
                area); and
                    (C) lacks basic sanitation facilities such 
                as household plumbing or a proper sewage 
                disposal system.
            (3) Treatment works.--The term ``treatment works'' 
        has the meaning provided in section 212(2) of the 
        Federal Water Pollution Control Act (33 U.S.C. 
        1292(2)).
    (b) Grants for Wastewater Assistance.--The Administrator of 
the Environmental Protection Agency and the heads of other 
appropriate Federal agencies are authorized to award grants to 
a border State to provide assistance to eligible communities 
for the planning, design, and construction or improvement of 
sewers, treatment works, and appropriate connections for 
wastewater treatment.
    (c) Use of Funds.--Each grant awarded pursuant to 
subsection (b) shall be used to provide assistance to one or 
more eligible communities with respect to which the residents 
are subject to a significant health risk (as determined by the 
Administrator or the head of the Federal agency making the 
grant) attributable to the lack of access to an adequate and 
affordable treatment works for wastewater.
    (d) Cost Sharing.--The amount of a grant awarded pursuant 
to this section shall not exceed 50 percent of the costs of 
carrying out the project that is the subject of the grant.
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section $25,000,000 for 
each of the fiscal years 1997 through 1999.

SEC. 308. PREVENTION AND CONTROL OF ZEBRA MUSSEL INFESTATION OF LAKE 
                    CHAMPLAIN.

    (a) Findings.--Section 1002(a) of the Nonindigenous Aquatic 
Nuisance Prevention and Control Act of 1990 (16 U.S.C. 4701(a)) 
is amended as follows:
            (1) By striking ``and'' at the end of paragraph 
        (3).
            (2) By striking the period at the end of paragraph 
        (4) and inserting ``; and''.
            (3) By adding at the end the following new 
        paragraph;
            ``(5) the zebra mussel was discovered on Lake 
        Champlain during 1993 and the opportunity exists to act 
        quickly to establish zebra mussel controls before Lake 
        Champlain is further infested and management costs 
        escalate.''.
    (b) Ex Officio Members of Aquatic Nuisance Species Task 
Force.--Section 1201(c) of such Act (16 U.S.C. 4721(c)) is 
amended by inserting ``, the Lake Champlain Basin Program,'' 
after ``Great Lakes Commission''.

TITLE IV--ADDITIONAL ASSISTANCE FOR WATER INFRASTRUCTURE AND WATERSHEDS

SEC. 401. NATIONAL PROGRAM.

    (a) Technical and Financial Assistance.--The Administrator 
of the Environmental Protection Agency may provide technical 
and financial assistance in the form of grants to States (1) 
for the construction, rehabilitation, and improvement of water 
supply systems, and (2) consistent with nonpoint source 
management programs established under section 319 of the 
Federal Water Pollution Control Act, for source water quality 
protection programs to address pollutants in navigable waters 
for the purpose of making such waters usable by water supply 
systems.
    (b) Limitation.--Not more than 30 percent of the amounts 
appropriated to carry out this section in a fiscal year may be 
used for source water quality protection programs described in 
subsection (a)(2).
    (c) Condition.--As a condition to receiving assistance 
under this section, a State shall ensure that such assistance 
is carried out in the most cost-effective manner, as determined 
by the State.
    (d) Authorization of Appropriations.--
            (1) Unconditional authorization.--There are 
        authorized to be appropriated to carry out this section 
        $25,000,000 for each of fiscal years 1997 through 2003. 
        Such sums shall remain available until expended.
            (2) Conditional authorization.--In addition to 
        amounts authorized under paragraph (1), there are 
        authorized to be appropriated to carry out this title 
        $25,000,000 for each of fiscal years 1997 through 2003, 
        provided that such authorization shall be in effect for 
        a fiscal year only if at least 75 percent of the total 
        amount of funds authorized to be appropriated for such 
        fiscal year by section 1452(m) of the Safe Drinking 
        Water Act are appropriated.
    (e) Acquisition of Lands.--Assistance provided with funds 
made available under this title may be used for the acquisition 
of lands and other interests in lands; however, nothing in this 
title authorizes the acquisition of lands or other interests in 
lands from other than willing sellers.
    (f) Federal Share.--The Federal share of the cost of 
activities for which grants are made under this title shall be 
50 percent.
    (g) Definitions.--In this section, the following 
definitions apply:
            (1) State.--The term ``State'' means a State, the 
        District of Columbia, the Commonwealth of Puerto Rico, 
        the Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.
            (2) Water supply system.--The term ``water supply 
        system'' means a system for the provision to the public 
        of piped water for human consumption if such system has 
        at least 15 service connections or regularly serves at 
        least 25 individuals and a draw and fill system for the 
        provision to the public of water for human consumption. 
        Such term does not include a system owned by a Federal 
        agency. Such term includes (A) any collection, 
        treatment, storage, and distribution facilities under 
        control of the operator of such system and used 
        primarily in connection with such system, and (B) any 
        collection or pretreatment facilities not under such 
        control that are used primarily in connection with such 
        system.

                      TITLE V--CLERICAL AMENDMENTS

SEC. 501. CLERICAL AMENDMENTS.

    (a) Part B.--Part B (42 U.S.C. 300g et seq.) is amended as 
follows:
            (1) In section 1412(b), move the margins of 
        paragraph (11) 2 ems to the right.
            (2) In section 1412(b)(8), strike ``1442(g)'' and 
        insert ``1442(e)''.
            (3) In section 1415(a)(1)(A), insert ``the'' before 
        ``time the variance is granted''.
    (b) Part C.--Part C (42 U.S.C. 300h et seq.) is amended as 
follows:
            (1) In section 1421(b)(3)(B)(i), strike ``number or 
        States'' and inserting ``number of States''.
            (2) In section 1427(k), strike ``this subsection'' 
        and inserting ``this section''.
    (c) Part E.--Section 1441(f) (42 U.S.C. 300j(f)) is amended 
by inserting a period at the end.
    (d) Section 1465(b).--Section 1465(b) (42 U.S.C. 300j-
25(b)) is amended by striking ``as by'' and inserting ``by''.
    (e) Short Title.--Section 1 of Public Law 93-523 (88 Stat. 
1600) is amended by inserting ``of 1974'' after ``Act'' the 
second place it appears and title XIV of the Public Health 
Service Act is amended by inserting the following immediately 
before part A:


                             ``short title


    ``Sec. 1400. This title may be cited as the `Safe Drinking 
Water Act'.''.
    (f) Technical Amendments to Section Headings.--
            (1) The section heading and subsection designation 
        of subsection (a) of section 1417 (42 U.S.C. 300g-6) 
        are amended to read as follows:


          ``prohibition on use of lead pipes, solder, and flux


    ``Sec. 1417. (a)''.
            (2) The section heading and subsection designation 
        of subsection (a) of section 1426 (42 U.S.C. 300h-5) 
        are amended to read as follows:


                     ``regulation of state programs


    ``Sec. 1426. (a)''.
            (3) The section heading and subsection designation 
        of subsection (a) of section 1427 (42 U.S.C. 300h-6) 
        are amended to read as follows:


              ``sole source aquifer demonstration program


    ``Sec. 1427. (a)''.
            (4) The section heading and subsection designation 
        of subsection (a) of section 1428 (42 U.S.C. 300h-7) 
        are amended to read as follows:


        ``state programs to establish wellhead protection areas


    ``Sec. 1428. (a)''.
            (5) The section heading and subsection designation 
        of subsection (a) of section 1432 (42 U.S.C. 300i-1) 
        are amended to read as follows:


                 ``tampering with public water systems


    ``Sec. 1432. (a)''.
            (6) The section heading and subsection designation 
        of subsection (a) of section 1451 (42 U.S.C. 300j-11) 
        are amended to read as follows:


                            ``indian tribes


    ``Sec. 1451. (a)''.
            (7) The section heading and first word of section 
        1461 (42 U.S.C. 300j-21) are amended to read as 
        follows:


                             ``definitions


    ``Sec. 1461. As''.
            (8) The section heading and first word of section 
        1462 (42 U.S.C. 300j-22) are amended to read as 
        follows:


        ``recall of drinking water coolers with lead-lined tanks


    ``Sec. 1462. For''.
            (9) The section heading and subsection designation 
        of subsection (a) of section 1463 (42 U.S.C. 300j-23) 
        are amended to read as follows:


                ``drinking water coolers containing lead


    ``Sec. 1463. (a)''.
            (10) The section heading and subsection designation 
        of subsection (a) of section 1464 (42 U.S.C. 300j-24) 
        are amended to read as follows:


             ``lead contamination in school drinking water


    ``Sec. 1464. (a)''.
            (11) The section heading and subsection designation 
        of subsection (a) of section 1465 (42 U.S.C. 300j-25) 
        are amended to read as follows:


``federal assistance for state programs regarding lead contamination in 
                         school drinking water


    ``Sec. 1465. (a)''.
      And the House agree to the same.
                From the Committee on Commerce, for 
                consideration of the Senate bill (except for 
                secs. 28(a) and 28(e)) and the House amendment 
                (except for title V), and modifications 
                committed to conference:
                                   Tom Bliley,
                                   Mike Bilirakis,
                                   Mike Crapo,
                                   Brian P. Bilbray,
                From the Committee on Commerce, for 
                consideration of secs. 28(a) and 28(e) of the 
                Senate bill, and modifications committed to 
                conference:
                                   Tom Bliley,
                                   Mike Bilirakis,
                As additional conferees from the Committee on 
                Science, for the consideration of that portion 
                of section 3 that adds a new sec. 1478 and 
                secs. 23, 25(f), and 28(f) of the Senate bill, 
                and that portion of sec. 308 that adds a new 
                sec. 1452(n) and sec. 402 and title VI of the 
                House amendment, and modifications committed to 
                conference:
                                   Robert S. Walker,
                                   Dana Rohrabacher,
                                   Tim Roemer,
                As additional conferees from the Committee on 
                Transportation and Infrastructure, for the 
                consideration of that portion of sec. 3 that 
                adds a new sec. 1471(c) and secs. 9, 17, 22(d), 
                25(a), 25(g), 28(a), 28(e), 28(h), and 28(i) of 
                the Senate bill, and title V of the House 
                amendment and modifications committed to 
                conference:
                                   Bud Shuster,
                                   Sherwood Boehlert,
                                   Zach Wamp,
                                   Robert A. Borski,
                                   Robert Menendez,
                Provided, Mr. Blute is appointed in lieu of Mr. 
                Wamp for consideration of title V of the House 
                amendment:
                                   Peter Blute,
                                 Managers on the Part of the House.

                                   John H. Chafee,
                                   Dirk Kempthorne,
                                   Craig Thomas,
                                   John Warner,
                                   Max Baucus,
                                   Harry Reid,
                                   Frank Lautenberg,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE ON CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendments of the House to the bill S. 1316, to reauthorize 
and amend Title XIV of the Public Health Service Act (commonly 
known as the ``Safe Drinking Water Act''), and for other 
purposes, submit the following joint statement to the House and 
the Senate in explanation of the effect of the action agreed 
upon by the managers and recommended in the accompanying 
conference report:
      The House amendment to the text of the Senate bill struck 
all of the Senate bill after the enacting clause and inserted a 
substitute text.
      The Senate recedes from its disagreement to the amendment 
of the House with an amendment that is a substitute for the 
Senate bill and the House amendment.
      The conference agreement on S. 1316, the Safe Drinking 
Water Act Amendments of 1996, provides (1) revisions to the 
procedures, process, and criteria for regulating contaminants 
in drinking water to protect the public health; (2) special 
programs to help small public water systems meet the 
requirements of the Act; (3) provisions to promote cost-
effectiveness in new drinking water regulations; (4) increased 
flexibility for water suppliers where consistent with public 
health; (5) new programs to promote the proper operation of 
public water systems; (6) substantial new Federal financial and 
technical assistance to help water suppliers meet the 
requirements of the Act and to help States in carrying out 
programs under the Act; (7) refinements and new programs to 
improve protection of public health from drinking water 
contamination; and (8) consumers with information on the source 
of the water they are drinking and its quality and safety.
      Certain matters agreed to in conference are noted below.

             Title I--Amendments to Safe Drinking Water Act

Maximum contaminant level goals (sec. 104(a))
      The Senate recedes from its legislative provision and 
report language (found in Senate Report 104-169, pages 30-33) 
with respect to maximum contaminant level goals for 
carcinogens. The House recedes from all its report language on 
the same subject (House Report 104-632, the first paragraph on 
page 28). The Conferees agree that the Safe Drinking Water Act 
Amendments of 1996 make no changes to the provision or 
legislative history for maximum contaminant level goals.
Disinfectants and disinfection by-products (sec. 104(b))
      The conference agreement addresses the application of 
amended section 1412(b)(5) to the Environmental protection 
Agency's proposed Stage I and Stage II regulations for 
disinfectants and disinfection byproducts. Public water systems 
use disinfectants to kill harmful microbial contaminants that 
can cause serious illness or even death. However, disinfectants 
and their resulting byproducts also may pose risks, including 
potential increases in cancer rates and liver and kidney 
damage. The regulation of both risks from microbial 
contaminants and risks from disinfectants and disinfection 
byproducts presents the Environmental Protection Agency (EPA) 
with a unique challenge. Nonetheless, controls for 
cryptosporidium and disinfection byproducts are widely 
considered to be a pressing and high priority for improving 
drinking water safety.
      In November 1992, EPA convened a negotiated rulemaking to 
examine both the proper strategy for combating cryptosporidium 
and other microbial contaminants and to consider threats to 
human health from the use of disinfectants commonly employed to 
combat microbial contaminants. EPA had determined to use the 
negotiated rulemaking process because the Agency believed that 
``the available occurrence, treatment and health effects data 
were inadequate to address EPA's concern about the tradeoff 
between risks from disinfectants and disinfection byproducts 
and microbial pathogen risk, and wanted all stakeholders to 
participate in the decision-making on setting proposed 
standards.'' (59 Fed. Reg. 38670, July 29, 1994).
      Representatives from EPA, State and local government, 
water suppliers, public health organizations and environmental 
groups, among others, worked for nearly two years to reach 
agreement on a framework for regulating both microbial 
contaminants and disinfection byproducts. The framework will 
result in rules for controlling disinfection byproducts and an 
Enhanced Surface Water Treatment Rule to address risks posed 
from microbial organisms. The package of rules when fully 
implemented is expected to minimize exposures to harmful 
microbial contaminants while reducing exposure to disinfection 
byproducts that present a health risk by optimizing the use of 
disinfectants and other means of water treatment.
      The negotiating committee agreed that a two-step process 
was necessary to address the microbial and disinfectants and 
disinfection by-products issues. The July 29, 1994 Federal 
Register notice thus proposes both Stage I and Stage II levels 
of control. The Stage I provisions set limits for two principal 
classes of chlorination byproducts, as well as limits for 
specific byproducts resulting from other disinfection 
processes, at levels deemed appropriate as a first step 
standard based on current information. More stringent Stage II 
controls were also proposed for the two classes of chlorination 
byproducts but a second round of negotiations is envisioned. In 
the meantime, EPA is conducting an agreed-upon regime of health 
effects research and water quality monitoring which will be 
used both to finalize the disinfection byproduct rule and the 
Enhanced Surface Water Treatment Rule (as provided for by the 
parties' agreement) and for the second round of negotiations. 
``Based on this information and new data generated through 
research,'' EPA ``will reevaluate the Stage 2 regulations and 
repropose, as appropriate, depending on criteria agreed on in a 
second regulatory negotiation (or similar rule development 
process)'' (59 Fed. Reg. 38743).
      The Conferees acknowledge the delicate balance that was 
struck by the parties in structuring the settlement of these 
complicated and difficult issues, and encourages the parties to 
continue according to the negotiated agreement. The negotiated 
agreement contains an over-arching set of principles to guide 
the individual rulemakings which incorporated consideration of 
various factors. The Conferees intend that all additional 
negotiations weigh the same factors that guided the development 
of the proposed rule. Specifically, all further negotiations 
for the Stage II regulations for the control of disinfection 
byproducts should follow and be consistent with the 
considerations that led to an agreement regarding the proposed 
rule for Stage I.
      In order to preserve the progress made, there has been 
considerable care taken to ensure that the new provisions of 
this conference agreement not conflict with the parties' 
agreement nor disrupt the implementation of the regulatory 
actions. To do otherwise would substantially disrupt, if not 
destroy, the next round of negotiations and lead to unnecessary 
delays in protecting public health. For this reason, the 
conference agreement precludes the use of the new authority in 
section 1412(b)(6) to establish maximum contaminant levels for 
the Stage I and Stage II rulemakings for disinfectants or 
disinfection byproducts or to establish a national primary 
drinking water maximum contaminant level or treatment technique 
for cryptosporidium.
      The Conferees recognize, however, that the development of 
this regulatory package has required the negotiators to 
consider complex issues of risk, costs, affordability, feasible 
technology, and health benefits. It is the Conferees' view that 
the proposed rule that has been produced is consistent with the 
``risk-risk'' provision set out in new section 1412(b)(5). 
Therefore, Section 104(b) makes clear that the Administrator 
may use the authority of section 1412(b)(5) to promulgate Stage 
I and Stage II rules. However, it is also the Conferees' intent 
that no provision of Section 1412(b)(5) be interpreted to force 
an alteration of the negotiated agreement.
      Finally, Section 104(b) of the conference agreement 
provides that for the purpose of promulgating Stage I and Stage 
II regulations for disinfection and disinfection byproducts, 
the consideration that the Administrator used in the 
development of the July 29, 1994 proposal for such regulation 
are to be considered consistent with section 1412(b)(5). These 
considerations included risk, cost, affordability, feasible 
technology, and health benefits. The Conferees intend with this 
language to ensure that the negotiators and ultimately the 
Administrator are authorized to consider these factors in the 
same manner as these considerations were used in developing the 
Stage I proposed rule.
      In the convening process for both the negotiating and 
technical advisory committees for Stage II of the Disinfectant/
Disinfection By-Products rulemaking, the Administrator should 
consider for inclusion appropriate representatives of all 
interested parties, including State and local governments, 
public water systems, public interest groups, public health 
organizations, and experts on chemical disinfectants, their use 
and alternative disinfection process and their technologies.
Arsenic (sec. 109)
      The Conferees encourage EPA to work with the American 
Water Works Association Research Foundation (AWWARF) to carry 
out the study projects authorized by new section 1412(b)(12)(A) 
if AWWARF contributes matching funds.
Consumer confidence reports (sec. 114(a))
      The Administrator may, in regulations, permit the 
notification requirement of subparagraph (A) to be satisfied by 
a means other than postal delivery, such as personal delivery 
or electronic mail, if the Administrator determines that the 
alternative means will provide equivalent notice to individual 
customers.
      EPA regulations should include a clear statement that all 
drinking water, including bottled water, contains contaminants, 
usually at levels below the threshold that would present a 
health risk to humans. The presence of contaminants in drinking 
water does not necessarily indicate that the drinking water is 
unsafe for human consumption. If consumers have any questions 
regarding the levels of contaminants detected in their drinking 
water or the safety of their drinking water, they should be 
directed to contact either their drinking water supplier or EPA 
at the toll-free hotline number.
Bottled water study (sec. 114(b))
      The conference agreement provides that the Administrator 
of the FDA shall provide a study of the feasibility of 
appropriate methods, if any, of informing customers of the 
contents of bottled water. The study is intended to provide 
information on the feasibility of informing customers 
concerning the contents of bottled water, and is not intended 
to prejudge the question of whether such information 
requirements are necessary.
Exemptions (sec. 117)
      Management changes referred to in the conference 
agreement may include rate increases, accounting changes, the 
hiring of consultants, the appointment of a technician with 
expertise in operating such systems, contractual arrangements 
for a more efficient and capable system for joint operation, or 
other reasonable strategies to improve capacity. Restructuring 
changes referred in the conference agreement may include 
ownership change, physical consolidation with another system, 
or other measures to otherwise improve customer base and gain 
economies of scale.
Capacity development (sec. 119)
      The phrase ``legal authority or other means'' is intended 
to require a State to have the actual authority to ensure that 
all new community water systems demonstrate the technical, 
managerial and financial capacity to comply with the Safe 
Drinking Water Act. These could include regulations, training, 
and bonding requirements.
      States are also to adopt and implement a capacity 
development strategy. This is intended to encourage States to 
continue to focus resources on capacity development 
initiatives. States are required to consider, solicit public 
comment on, and include as deemed appropriate by the State, a 
number of elements and criteria.
      The Conferees do not expect that every State will adopt 
the same capacity development strategy and do not expect States 
to include elements in section 1420 (c) that the States 
determine are not appropriate. It is not expected that every 
State will give the same consideration to each of the elements 
listed in section 1420(c). Rather, the Conferees expect that, 
as suggested by existing State capacity development programs, 
State capacity development strategies developed under this 
section will very according to the unique needs of the State. 
The Conferees encourage this diversity and indicate that EPA 
should give deference to a State's determination as to content 
and manner of implementation of a State plan, so long as the 
State has solicited and considered public comment on the listed 
elements and has adopted a strategy that incorporates 
appropriate provisions.
Operator certification reimbursement (sec. 123)
      New subsection 1419(c) requires the Administrator to 
provide reimbursement for the costs of training, including an 
appropriate per diem for unsalaried operators, and 
certification for persons operating systems serving 3,300 
persons or fewer that are required to undergo training pursuant 
to section 1419. The Conferees do not consider the term 
``unsalaried operators'' to include the persons who receive 
compensation at an hourly rate, professional consultants, and 
employees of circuit-rider programs.
State revolving loan funds (sec. 130)
      The administrator is to include, in the guidance for 
State loan fund programs to avoid use of the funds to finance 
expansion of any public water system in anticipation of future 
population growth. The Administrator is not to preclude the use 
of SRF financing for facilities with the capacity necessary to 
meet the objectives of the Safe Drinking Water Act for the 
population to be served by the facility over its useful life.
      States are allowed to jointly manage the corpus of the 
new drinking water State loan fund with other revolving loan 
funds. The requirement that the funds be used solely for 
purposes that meet the objectives of the Safe Drinking Water 
Act does not preclude bond pooling arrangements, including 
cross-collateralization, provided that revenues from the bonds 
are allocated to the purposes of the Safe Drinking Water Act in 
the same portion as the funds are used as security for the 
bonds.
Estrogenic substances screening program (sec. 136)
      Section 404 of H.R. 3604 as reported out of the House 
Committee on Commerce formed the basis for section 408(p)(3)(B) 
of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
346a(p)(3) (an estrogenic substances screening program). 
Section 136 of the Safe Drinking Water Act Amendments of 1996 
adds to the authority of the Administrator to provide for 
testing of substances that may be found in sources of drinking 
water if the Administrator determines that a substantial 
population may be exposed to such substances. The Conferees 
agree that the treatment of substances addressed under this 
section shall be consistent with the Report of the Commerce 
Committee (House Rep. 104-632, Part I, pp. 55-58).

                   Title II--Drinking Water Research

Clarifications made in conference
      The House Committee on Commerce and the House Committee 
on Science have the following understanding on clarifications 
made in conference. This understanding has no impact on the 
operation of law.

            In reconciling the text of H.R. 3604, the Safe 
        Drinking Water Act Amendments of 1996, with the text of 
        S. 1316, the Safe Drinking Water Act Amendments of 
        1995, the Conference Committee agreed to minor word 
        changes, such as from ``research'' to ``study'', and 
        citation changes and deletions, including the deletion 
        of references in the House passed version of section 
        601. None of these minor changes should be considered 
        to lessen or enhance the House Committee on Science's 
        jurisdictional claim to environmental research 
        involving drinking water issues. None of these minor 
        changes should be considered to lessen or enhance the 
        House Committee on Commerce's jurisdictional claim to 
        biomedical research involving drinking water issues.

                  Title III--Miscellaneous Provisions

Transfer of funds (sec. 302)
      The following represents an understanding between the 
House Committee on Commerce and the House Committee on 
Transportation and Infrastructure. This understanding has no 
impact on the operation of law.

            The House Commerce Committee, which has 
        jurisdiction over the Safe Drinking Water Act, and the 
        House Transportation and Infrastructure Committee, 
        which has jurisdiction over the Federal Water Pollution 
        Control Act, agree to share jurisdiction over the free-
        standing provision in section 302 of the Safe Drinking 
        Water Act Amendments of 1996 involving transfer of 
        revolving loan funds. This provision allows for the 
        transfer of funds, under specified terms and 
        conditions, between the Safe Drinking Water State 
        Revolving Loan Fund which is under the exclusive 
        jurisdiction of the Commerce Committee and the Clean 
        Water State Revolving Fund which is under the exclusive 
        jurisdiction of the Transportation and Infrastructure 
        Committee.
            For matters directly amending section 302, the two 
        Committees agree that each should be given equal weight 
        in bill referrals, conference appointments, and other 
        jurisdictional assignments. For instance, a bill to 
        amend section 302 to increase the percentage amount 
        that may be transferred between the two revolving funds 
        would be in the joint jurisdiction of the two 
        Committees. Likewise, a direct or indirect amendment to 
        the provisions of section 302 would be in the 
        committees' joint jurisdiction.
            Enactment of this freestanding section does not 
        give the Commerce Committee any jurisdiction over the 
        Federal Water Pollution Control Act, nor does it give 
        the Transportation and Infrastructure Committee any 
        jurisdiction over the Safe Drinking Water Act. 
        Jurisdiction for changes that amend provisions of the 
        Federal Water Pollution Control Act or the Safe 
        Drinking Water Act should be determined without regard 
        to section 302. Thus, for example, a bill to change or 
        impose conditions or limitations on the criteria 
        applicable to a State for the receipt or expenditure of 
        revolving funds under the Safe Drinking Water Act or 
        Federal Pollution Control Act would be in the sole 
        jurisdiction of the Committee on Commerce or the 
        Committee on Transportation and Infrastructure 
        respectively.
Washington Aqueduct (sec. 306)
      The Senate bill authorized the Secretary of the Army 
acting through the Chief of Engineers to borrow from the 
Secretary of the Treasury funds necessary to make capital 
improvements to the Washington Aqueduct. The Washington 
Aqueduct provides drinking water to the three wholesale 
customers of the District of Columbia and the Virginia 
jurisdictions of Arlington County and the City of Falls Church. 
Amounts borrowed from the Treasury are to be repaid by the 
customers.
      The Washington Aqueduct system consists of the Dalecarlia 
and McMillan water treatment plants located in Washington, D.C. 
The system was constructed in 1853 and is under the control of 
the U.S. Army Corps of Engineers for appropriate management and 
maintenance.
      The conference agreement modifies the Senate provision to 
authorize for three years the Secretary of the Army to borrow 
from the Secretary of the Treasury funds to finance capital 
improvements necessary to assure continued operation of the 
Washington Aqueduct.
      The conference agreement encourages and provides a 
process for the establishment of a regional entity--or the use 
of an existing entity--to own, operate, maintain and manage the 
Washington Aqueduct in a manner that fully represents all 
interests of the non-Federal public water supply customers. The 
Secretary of the Army is directed to transfer within the three 
year period all right, title, and interest in Washington 
Aqueduct after receiving the consent of a majority of the 
customers. The Conferees express a strong preference for a 
consensus among all of the customers prior to any transfer of 
the Washington Aqueduct under this section.

Title IV--Additional Assistance for Water Infrastructure and Watersheds

      The conference agreement includes the House provision 
regarding the national grants program for water infrastructure 
and watershed, with a modification to provide that $25 million 
per year is conditioned on the appropriation of 75 percent for 
the amounts authorized per year for the drinking water state 
loan fund. Provisions on the New York City Watershed and Alaska 
rural and Native villages are contained in other titles of the 
conference agreement.
      As in the House bill, section 401(a) establishes a 
national program for technical and financial assistance grants 
for water supply systems and source water quality protection 
programs. The Administrator is directed to provide priority 
consideration to the following:
            (1) Drinking water infrastructure projects for 
        areas described in section 313 of the Water Resources 
        Development Act of 1992 (P.L. 102-580);
            (2) Construction of an alternative water supply 
        system for the area referred to in section 219(c)(5) of 
        the Water Resources Development Act of 1992 (P.L. 102-
        580);
            (3) Attleboro, Massachusetts, and Worcester, 
        Massachusetts, for ratepayer assistance relating to 
        water infrastructure facilities, in addition to other 
        assistance in the form of low interest loans and 
        negative interest rates;
            (4) Buffalo, New York, for construction, 
        rehabilitation, and improvement of water treatment 
        facilities;
            (5) Bad Axe, Michigan, for connection of its 
        drinking water system to the municipal system in Port 
        Austin, Michigan;
            (6) Georgetown, Illinois, for construction and 
        related activities intended to increase the capacity of 
        the City's water supply reservoir and enhance source 
        water quality protection;
            (7) Morgan County, Tennessee, for water line 
        extensions and related infrastructure assistance;
            (8) Northwest Iowa, for water infrastructure 
        facilities that are either part of or separate from the 
        proposed Lewis and Clark Rural Water System;
            (9) Olney, Illinois for construction of new water 
        tower and Millstone Water District, Harrisburg, 
        Illinois for completion of Phase I of a water line 
        extension project;
            (10) Philadelphia, Pennsylvania, acting through the 
        Fairmount Park Commission, for improvement and 
        restoration of aquatic systems at Pennypack Park;
            (11) San Bernardino County, California, for water 
        infrastructure assistance related to the Mojave River 
        Pipeline;
            (12) Springfield, Illinois, for financial and 
        technical assistance to complete the planning, design, 
        and construction of a water supply reservoir;
            (13) Tenino, Washington, for water supply 
        infrastructure, including work related to wells, 
        hydrants, and water lines;
            (14) Madison, Ohio, for waterline replacement and 
        booster station needs;
            (15) Bridger Valley Joint Board, Wyoming, for the 
        study and construction of needed improvements in the 
        water supply system;
            (16) Treasure Valley Hydrologic Project, to study 
        the Treasure Valley aquifer system to develop a better 
        understanding of the regional hydraulic stresses and 
        their impacts on source waters in the Boise Basin;
            (17) Beuna Borough, New Jersey, to remediate 
        mercury levels in the water supply and to provide 
        alternative drinking water for residents;
            (18) Projects for areas described in section 219(c) 
        (16) and (17) of the Water Resources Development Act of 
        1992;
            (19) Berlin, New Hampshire, for a filtration plant 
        and associated facilities;
            (20) South Tahoe Public Utility District to replace 
        the export pipeline for reclaimed water;
            (21) Projects described in section 307 of the Water 
        Resources Development Act of 1992;
            (22) Cranston, Rhode Island, for a wastewater 
        regional connector system;
            (23) Funding for construction of filtration plants 
        in Connecticut; and
            (24) Perth Amboy, New Jersey, to protect the 
        drinking water supply through multimedia programs to 
        remediate pollution in the Runyon Watershed.

                      Title V--Clerical Amendments

      The conference agreement makes miscellaneous technical 
and clerical changes.

                From the Committee on Commerce, for 
                consideration of the Senate bill (except for 
                secs. 28(a) and 28(e)) and the House amendment 
                (except for title V), and modifications 
                committed to conference:
                                   Tom Bliley,
                                   Mike Bilirakis,
                                   Mike Crapo,
                                   Brian P. Bilbray,
                From the Committee on Commerce, for 
                consideration of secs. 28(a) and 28(e) of the 
                Senate bill, and modifications committed to 
                conference:
                                   Tom Bliley,
                                   Mike Bilirakis,
                As additional conferees from the Committee on 
                Science, for the consideration of that portion 
                of section 3 that adds a new sec. 1478 and 
                secs. 23, 25(f), and 28(f) of the Senate bill, 
                and that portion of sec. 308 that adds a new 
                sec. 1452(n) and sec. 402 and title VI of the 
                House amendment, and modifications committed to 
                conference:
                                   Robert S. Walker,
                                   Dana Rohrabacher,
                                   Tim Roemer,
                As additional conferees from the Committee on 
                Transportation and Infrastructure, for the 
                consideration of that portion of sec. 3 that 
                adds a new sec. 1471(c) and secs. 9, 17, 22(d), 
                25(a), 25(g), 28(a), 28(e), 28(h), and 28(i) of 
                the Senate bill, and title V of the House 
                amendment and modifications committed to 
                conference:
                                   Bud Shuster,
                                   Sherwood Boehlert,
                                   Zack Wamp,
                                   Robert A. Borski,
                                   Robert Menendez,
                Provided, Mr. Blute is appointed in lieu of Mr. 
                Wamp for consideration of title V of the House 
                amendment:
                                   Peter Blute,
                                 Managers on the Part of the House.

                                   John H. Chafee,
                                   Dirk Kempthorne,
                                   Craig Thomas,
                                   John Warner,
                                   Max Baucus,
                                   Harry Reid,
                                   Frank Lautenberg,
                                Managers on the Part of the Senate.