[Senate Report 110-509]
[From the U.S. Government Publishing Office]
Calendar No. 1092
110th Congress Report
SENATE
2d Session 110-509
======================================================================
WATER INFRASTRUCTURE FINANCING ACT OF 2008
_______
September 26 (legislative day, September 17), 2008.--Ordered to be
printed
_______
Mrs. Boxer, from the Committee on Environment and Public Works,
submitted the following
R E P O R T
together with
ADDITIONAL VIEWS
[Including an estimate by the Congressional Budget Office]
The Committee on Environment and Public Works considered an
original bill to amend the Federal Water Pollution Control Act
and the Safe Drinking Water Act to improve water and wastewater
infrastructure in the United States, and reports favorably
thereon and recommends that the bill, as amended, do pass.
Purposes of the Legislation
The Water Infrastructure Financing Act of 2008 would
reauthorize the Clean Water Act State Revolving Fund and the
Safe Drinking Water Act State Revolving Fund to improve
wastewater and drinking water infrastructure in America. It
also makes improvements to these and related programs.
General Statement and Background
The nationwide need for investment in water and wastewater
infrastructure through the State Revolving Funds continues to
far outpace the amount of funding that is available on all
levels of government. The EPA estimates that the capital
investment shortfall for wastewater infrastructure ranges from
$73 billion to $177 billion over 20 years.
A 2000 EPA report, entitled Progress in Water Quality,
states that ``without continued improvements in wastewater
treatment infrastructure, future population growth will erode
away many of the Clean Water Act achievements in effluent
loading reduction.'' EPA projects that given the expansion of
the U.S. population forecast over the next 20 years, even with
expected increases in wastewater treatment efficiencies, by
2016, wastewater treatment plants, nationwide, may discharge
pollutants into U.S. waters at levels similar to those that
existed in the mid-1970s, only a few years removed from the
enactment of the Clean Water Act.
This legislation would authorize $19.6 billion in
appropriations from 2008 through 2012 for the EPA to give
capitalization grants for the Clean Water State Revolving Fund
(SRF) program. The bill would authorize appropriations of $14.7
billion over the 2008-2012 period for the EPA to provide grants
within the Safe Drinking Water Act SRF program. Grants within
the SRF programs are used to help States in making low-interest
loans to local communities to build wastewater treatment
facilities to treat wastewater and drinking water. The bill
also makes programmatic changes to the SRFs and establishes and
improves other related grant and technical assistance programs.
Section-by-Section Analysis
Section 1. Short title; table of contents
This section provides that the Act may be cited as the
``Water Infrastructure Financing Act''.
TITLE I--WATER POLLUTION INFRASTRUCTURE
Section 101. Technical assistance for rural small treatment works and
medium treatment works
This section would authorize the Administrator of the
Environmental Protection Agency to make grants on a competitive
basis to nonprofit organizations that are qualified to provide
technical assistance on wastewater and stormwater approaches to
owners and operators of small and medium treatment works.
This section would authorize annual appropriations for each
of fiscal years 2009-2013 of $25,000,000 for grants for small
treatment works and $15,000,000 for grants for medium treatment
works.
Section 102. Projects eligible for assistance
This section describes the projects eligible for assistance
from the State Water Pollution Control Revolving Loan Fund.
Section 103. Affordability
This section would amend section 603 of the Clean Water Act
(33 U.S.C. 1383) to make the program more affordable to States
and municipalities, including by extending the terms of loans
made under section 603 of the Clean Water Act to the lesser of
30 years or the design life of the project; increasing the
State's allowable administrative costs to 6 percent; providing
additional assistance to disadvantaged communities with loan
subsidies, including loan forgiveness and negative interest
rates, up to 30 percent of the capitalization grant received by
the State in a fiscal year.
This section would authorize a State to forgive repayment
of up to 5 percent of loans for the percentage of a project
that treats or minimizes sewage or urban stormwater discharges
using: decentralized stormwater or wastewater controls; low-
impact development technologies; stream buffers; wetland
restoration and enhancement; actions to minimize impervious
surfaces; use of vegetation and other permeable materials; and
actions to increase efficient water use, conservation, and
reuse.
Section 104. Water Pollution Control Revolving Fund
This section would establish a priority system for each
State in implementing the State Water Pollution Control
Revolving Loan Fund, including giving greater weight to an
application that proposes approaches other than the traditional
waste water approach (which consists of collection sewers,
centralized treatment works, and a direct point source
discharge to surface water) using decentralized stormwater or
wastewater controls; low-impact development technologies;
stream buffers; wetland restoration and enhancement; actions to
minimize impervious surfaces; use of vegetation and other
permeable materials; and actions to increase efficient water
use, conservation, and reuse.
Section 105. Transferability of funds
This section would authorize the Governor of a State to
reserve up to 33 percent of a capitalization grant under title
II of the Clean Water Act and add those funds to funds provided
to the State under section 1452 of the Safe Drinking Water Act
(42 U.S.C. 300j-12), and to reserve up to that amount from
capitalization grants made under section 1452 of the Safe
Drinking Water Act and add those funds to any funds the State
received under title II of the Clean Water Act. The reserved
funds would not be considered for purposes of the State's
matching funds for a capitalization grant under title II of the
Clean Water Act.
Section 106. Noncompliance
This section would generally prohibit assistance (other
than for purposes of planning, design, or security) to an owner
or operator of a treatment works that has been in significant
noncompliance with the Clean Water Act, unless the
Administrator and the State determines that the enforcement
agency has determined that the assistance will enable the owner
to take corrective action or would assist the owner in making
progress toward compliance.
Section 107. Negotiation of contracts
This section would require that certain contracts to be
carried out with funds directly made available by a
capitalization grant be negotiated in the same manner as a
contract for architectural and engineering services under
chapter 11 of title 40, United States Code, or equivalent State
qualifications-based requirement. Small communities of 10,000
or fewer would be exempted from this requirement.
Section 108. Allotment of funds
This section would allow each State to reserve the greater
of 2 percent or $100,000 from its fiscal year allotment to
carry out planning under sections 205(j) and 303(e) of the
Clean Water Act, and requires 1.5 percent of those funds be
allocated to Indian Tribes.
Section 109. Authorization of appropriations
This section would authorize appropriations of $16.8
billion over 5 years for the capitalization of state revolving
funds as follows: $3.2 billion in each of fiscal years 2008 and
2009, $3.6 billion in fiscal year 2010, $4 billion in fiscal
year 2011, and $6 billion in fiscal year 2012. Section 109
would authorize the Administrator to reserve not more than
$100,000 of the amounts made available in each fiscal year to
conduct needs surveys.
Section 110. Sewer overflow control grants
This section would authorize the Administrator to make
grants for fiscal years 2008-2012 to prevent sewer overflows.
Projects that receive grants under this section would be
subject to the same requirements as a project that receives
assistance from a State water pollution control revolving fund.
This section would authorize appropriations of $2 billion
over 5 years for sewer overflow control grants as follows: $375
million for each of fiscal years 2008-2011, and $500 million
for fiscal year 2012. For each of fiscal years 2008 and 2009,
the Administrator is required to use the priority criteria in
section 221(b) (33 U.S.C. 1301(b)), with additional priority
given to projects that use nonstructural, low-impact
development, water conservation, efficiency or reuse, or other
decentralized stormwater or wastewater approaches. Starting in
fiscal year 2010, the Administrator would be required to
provide sewer overflow control grants in accordance with the
needs survey required conducted under section 210 (33 U.S.C.
1290).
Section 111. Capitalization grant agreements
This section would provide that treatment works
constructed, in whole or in part, using State loan funds must
meet the requirements of section 513 of the Clean Water Act (33
U.S.C. 1372) relating to labor standards.
Section 112. Critical water infrastructure projects
This section would require the Administrator to establish a
watershed restoration grant program to protect or improve water
quality. Section 112 would authorize the Administrator to enter
into agreements with one or more non-Federal entities to carry
watershed restoration projects, which may include projects that
are included in a State's intended use plan developed under
section 606(c) of the Clean Water Act (33 U.S.C. 1386(c)). The
non-Federal entities would be required to pay 45 percent of the
total project costs, which may include in-kind contributions.
The Administrator may waive the cost-sharing requirement based
on financial hardship.
This section would authorize appropriations of $50 million
for each fiscal year 2008 through 2012.
TITLE II--SAFE DRINKING WATER INFRASTRUCTURE
Section 201. Contaminant prevention, detection, and response
This section would require the Administrator to submit a
report to Congress, within 180 days of enactment, concerning
progress in implementing section 1434 of the Safe Drinking
Water Act (42 U.S.C. 300i-3). Section 201 would also require
the Administrator to develop and carry our an implementation
plan for section 1434, incorporating results of the report.
Section 202. Drinking water technical assistance for communities
This section would reauthorize and amend the form of
assistance, priorities, and other requirements for technical
assistance under section 1442(e) of the Safe Drinking Water
Act. This section would allow for well system nonprofit
technical assistance to be included under section 1442(e) of
the Safe Drinking Water Act.
Section 203. Preservation of employee labor standards
This section would require that contractors financed, in
whole or in part, with financial assistance provided under the
Safe Drinking Water Act, including State loan funds under
section 1452, pay workers the prevailing wage.
Section 204. Preconstruction work
This section would amend section 1452(a)(2) of the Safe
Drinking Water Act (42 U.S.C. 300j-12(a)(2)) to allow the use
of State loan funds for replacing or rehabilitating aging
treatment, storage, or distribution facilities or to upgrade
security of public water systems. Section 204 also allows the
use of loan funds for payment of certain costs of general
obligation bonds issued by the State to provide matching funds.
Section 205. Priority system requirements
This section would establish a priority system to be used
for funding projects that addresses the most serious risks to
human health, are necessary to ensure compliance with the Act,
and assist the public water systems in the most need.
Section 206. Affordability
This section would amend section 1452(d)(3) of the Safe
Drinking Water Act (42 U.S.C. 300j-12(d)(3)) to expand the
definition of a ``disadvantaged community'' to include a
portion of a service area.
Section 207. Safe drinking water revolving loan funds
This section would authorize a State to reserve up to 33
percent of the capitalization grant made under section 1452(g)
of the Safe Drinking Water Act (42 U.S.C. 300j-12(g)) and
transfer those funds to any funds provided the State under
section 601 of the Clean Water Act (33 U.S.C. 1381), and to
reserve up to that amount from capitalization grants made under
section 601 of the Clean Water Act and add those funds to any
funds the State received under section 1452(g) of the Safe
Drinking Water Act. The reserved funds would not be considered
for purposes of the State's matching funds for a capitalization
grant under 602(b) of the Clean Water Act.
Section 207 also would make certain technical corrections
to section 1452(g)) of the Safe Drinking Water Act.
Section 208. Other authorized activities
This section authorizes the use of capitalization grant
funds to implement source water protection plans.
Section 209. Authorization of appropriations
Section 208 would authorize appropriations of $13 billion
over 5 years for the capitalization of state revolving funds as
follows: $1.5 billion in fiscal years 2008, $2 billion in each
of fiscal years 2009 and 2010, $3.5 billion in fiscal year
2011, and $6 billion in fiscal year 2012. Section 209 would
authorize the Administrator to reserve not more than $100,000
of the amounts made available in each fiscal year to conduct
needs surveys.
Section 210. Negotiation of contracts
Section 209 would require that certain contracts to be
carried out with funds directly made available by a
capitalization grant under Section 1452 of the Safe Drinking
Water Act be negotiated in the same manner as a contract for
architectural and engineering services under chapter 11 of
title 40, United States Code, or equivalent State
qualifications-based requirement. Small communities of 10,000
or fewer would be exempted from this requirement.
Section 211. Critical drinking water infrastructure projects
This section requires the Administrator to establish a
grant program to eligible entities for use in carrying out
project and activities to assist community water systems in
meeting the requirements of the Safe Drinking Water Act. The
section authorizes $300 million for each of fiscal years 2008
through 2012.
Section 212. District of Columbia lead service line replacement
This section authorizes $30 million to carry out lead
service line replacement in the District of Columbia and
establishes certain conditions and limitations of lead service
line replacement.
TITLE III--MISCELLANEOUS
Section 301. Definitions
This section defines certain terms within this title.
Section 302. Program for water quality enhancement and management
This section requires the Administrator to establish a
program for water quality enhancement and management within the
EPA. It also requires the Administrator to establish a
nationwide demonstration grant program on innovative and
nontraditional water technologies. It authorizes $20 million
for fiscal years 2008-2012.
Section 303. Agricultural Pollution Control Technology Grant Program
This section requires the Administrator to provide
capitalization grants of no more than $1 million per State to
establish an agricultural pollution control technology State
revolving fund. The section establishes state eligibility
requirements and other conditions. The section authorizes $50
million in appropriations to carry out this section.
Section 304. State revolving fund review process
This section requires the Administrator to consult with
States, utilities, nonprofit organizations, and other Federal
agencies providing financial assistance to identify ways to
expedite and improve the application and review process, for
the provision of assistance from the Clean Water Act and Safe
Drinking Water Act State Revolving Funds. It also requires the
Administrator to take administrative action necessary to
expedite and improve the process, and collect information
relating to innovative approaches taken by any State to simply
the application process.
Section 305. Cost of service study
This section requires the Administrator to enter into an
agreement with the National Academy of Sciences to conduct a
study regarding public water systems and treatment works and
the costs associated with operations, maintenance, capital
replacement, and regulatory requirements.
Section 306. Water management study
This section requires the Administrator to enter into an
agreement with the National Academy of Sciences to conduct a
study looking at innovative, effective, and systematic
approaches for the management of water supply, wastewater, and
stormwater in urban areas and surrounding communities
throughout the United States and other countries.
Section 307. Reduction in authorization of appropriations
This section requires that each amount authorized to be
appropriated under this Act will be reduced by 2 percent.
Legislative History
The Water Infrastructure Investment Act was an original
bill sponsored by Senator Lautenberg, drafted in cooperation
with Senators Boxer, Inhofe, and Vitter. On September 17, 2008
the Committee on Environment and Public Works held a Business
Meeting, at which Senator Lautenberg offered an amendment
making certain technical changes to the bill, and the amendment
was agreed to by voice vote. Senator Lautenberg also offered an
amendment applying Davis-Bacon prevailing wage requirements to
contract negotiations under these programs--that amendment was
passed by a roll call vote, 11 ayes, 7 nays, and 1 Not
Recorded. Senator Inhofe also offered an amendment requiring
that each amount authorized to be appropriated under this Act
shall be reduced by 2 percent. That amendment passed by voice
vote. S. 3500 was ordered favorably reported as amended by
voice vote.
Rollcall Votes
There was one rollcall vote during the consideration of the
Water Infrastructure Financing Act of 2008. Senator
Lautenberg's Amendment #1, which would apply Davis-Bacon
prevailing wage requirements to contract negotiations under the
SRF programs was approved with 11 ayes, 7 nays, and 1 Not
Recorded vote.
Regulatory Impact Statement
In compliance with section 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes evaluation of
the regulatory impact of the reported bill. The Committee finds
that this legislation, which provides grants and financial
assistance to communities, wastewater and drinking water
utilities, certain technical assistance providers and others,
does not have substantial regulatory impacts.
Mandates Assessment
In compliance with the Unfunded Mandates Reform Act of 1995
(Pub. L. 104-4), the Committee finds that this legislation does
not impose intergovernmental mandates or private sector
mandates as those terms are defined in UMRA. The Congressional
Budget Office concurs, finding ``This legislation contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act (UMRA) and would impose no costs
on state, local, or tribal governments.''
Water Infrastructure Financing Act
Summary: This bill would authorize the appropriation of $33
billion for the Environmental Protection Agency (EPA) to
provide grants to states and nonprofit organizations to support
a wide range of water quality projects and programs. CBO
estimates that implementing this legislation would cost about
$19 billion over the next five years and an additional $14
billion after 2013, assuming appropriation of the authorized
amounts.
The Joint Committee on Taxation (JCT) estimates that
enacting the bill would reduce revenues by $1.3 billion over
the next 10 years. Enacting the bill would not affect direct
spending.
This legislation contains no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act
(UMRA) and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of this legislation is summarized in Table 1.
The costs of this legislation fall within budget function 300
(natural resources and environment).
TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF THE WATER INFRASTRUCTURE FINANCING ACT
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
----------------------------------------------------------------------------------------------------------------
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009-2013 2009-2018
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Authorization Level.................... 5,994 6,337 8,198 12,730 81 0 0 0 0 0 33,340 33,340
Estimated Outlays...................... 564 1,977 3,746 5,597 6,912 6,098 3,681 1,740 829 370 18,796 31,514
CHANGES IN REVENUES
Estimated Revenues\1\.................. * -4 -15 -42 -87 -147 -209 -253 -278 -289 -148 -1,324
--------------------------------------------------------------------------------------------------------------------------------------------------------
NOTE: * = revenue of less than $500,000.
\1\Estimate provided by the Joint Committee on Taxation.
Basis of estimate: For this estimate, CBO assumes that the
bill will be enacted near the beginning of 2009, that the full
amounts authorized will be appropriated for each year, and that
outlays will follow the historical patterns of spending for
existing and similar programs. Components of the estimated
costs are described below.
Spending subject to appropriation
This legislation would authorize appropriations totaling
about $33 billion over the next five years for EPA's water
infrastructure and grant programs. Amounts authorized to be
appropriated for individual programs are shown in Table 2.
The bill would authorize the appropriation of nearly $30
billion over the 2009-2012 period for EPA to provide
capitalization grants for the State Revolving Fund (SRF)
program (about $16 billion for the clean water SRF program and
about $13 billion for the safe drinking water SRF program). In
2008, the combined appropriation for these SRF programs was
about $1.5 billion. States would use such grants along with
their own funds to make low-interest loans to communities for
wastewater treatment and drinking water facilities. Indian
tribes would use such grants to construct wastewater treatment
facilities and to fund projects that would improve the quality
of drinking water. This bill would make several revisions to
those grant programs, including expanding the types of projects
eligible for assistance, changing the formulas used to allocate
grant money among the states and tribes, and extending the
repayment terms for loans made by states.
Table 2.--AMOUNTS AUTHORIZED TO BE APPROPRIATED FOR EPA PROGRAMS UNDER THE WATER INFRASTRUCTURE FINANCING ACT
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
----------------------------------------------------
2009 2010 2011 2012 2013 2009-2013
----------------------------------------------------------------------------------------------------------------
Clean Water SRF Grants..................................... 3,136 3,528 3,920 5,880 0 16,464
Safe Drinking Water SRF Grants............................. 1,960 1,960 3,430 5,880 0 13,230
Sewer Overflow Grants...................................... 368 368 368 490 0 1,594
Critical Drinking Water Infrastructure Grant Program....... 294 294 294 294 0 1,176
Critical Water Infrastructure Grant Program................ 49 49 49 49 0 196
Grants for Lead Service Line Replacement in the District of 29 29 29 29 0 116
Columbia..................................................
Technical Assistance for Nonprofits........................ 42 42 42 42 42 210
EPA Safe Drinking Water Implementation Plan................ 7 7 7 7 0 28
Technical Assistance for Small and Medium Treatment Works.. 39 39 39 39 39 195
Agricultural Pollution Control Technology Grant Program.... 49 0 0 0 0 49
Grants for Water Quality Enhancement and Management........ 20 20 20 20 0 80
National Academy of Sciences Studies....................... 1 1 0 0 0 2
----------------------------------------------------
Total Authorization Level.............................. 5,994 6,337 8,198 12,730 81 33,340
----------------------------------------------------------------------------------------------------------------
NOTE: SRF = state revolving fund; EPA = Environmental Protection Agency.
This legislation also would authorize the appropriation of
about $1.6 billion over the 2009-2012 period for EPA to make
grants to states to remedy sewage overflows (that is, the
discharge of untreated wastewater into waterways). This bill
also would authorize the appropriation of about $1.2 billion
for the Critical Drinking Water Infrastructure Grant Program
and about $200 million for the Critical Water Infrastructure
Grant Program over the same period. These grant programs would
allow EPA to make grants to small public water systems to
address the cost of complying with drinking water regulations
and to make grants to entities to carry out projects related to
watershed restoration.
All of the remaining authorizations in the bill would total
about $680 million over the next five years. That funding would
be used for various other purposes, including a grant program
to assist small and medium treatment works in a broad range of
approaches to wastewater and stormwater management, grant
programs aimed at promoting innovations in technology and
alternative approaches to water quality management, and a grant
program to address the replacement of lead drinking water
service lines in the District of Columbia.
Revenues
This bill would authorize the appropriation of funds for
EPA's clean water SRF and the safe drinking water SRF programs,
as well as appropriations for the agricultural pollution
control technology grant program. The JCT expects that some of
those funds would be used by states to leverage additional
funds by issuing tax-exempt bonds. The JCT estimates that the
consequent reductions in revenue from issuing additional tax-
exempt bonds would total about $1.3 billion over the next 10
years.
Intergovernmental and private-sector impact: This
legislation contains no intergovernmental or private-sector
mandates as defined in UMRA and would impose no costs on state,
local, or tribal governments. The bill would benefit state,
local, and tribal governments by authorizing grants for water
and sewer projects.
Estimate prepared by: Federal Spending: Susanne S. Mehlman.
Federal Revenues: Mark Booth. Impact on State, Local, and
Tribal Governments: Burke Doherty. Impact on the Private
Sector: Amy Petz.
Estimate approved by: Peter H. Fontaine, Assistant Director
for Budget Analysis.
ADDITIONAL VIEWS
The integration of Davis-Bacon with the SRF program is
antithetical to its purpose of lowering the costs incurred by
state and local governments for constructing facilities to
clean up water. Davis-Bacon has consistently inflated the cost
of public construction projects anywhere from 5 percent to 38
percent over what they would be if they were to be bid upon
competitively in the private sector. As a former Mayor, I am
sensitive to the budgetary concerns of state and local
governments especially during such lean economic times. This
country faces tens of billions of dollars in infrastructure
needs, and the inclusion of Davis-Bacon will certainly delay
and potentially prohibit infrastructure construction and
compliance progress. I regret that this provision will
ultimately lead to a legislative impasse and that communities
in need won't receive the resources this bill could provide.
James M. Inhofe.
Changes in Existing Law
In compliance with section 12 of rule XXVI of the Standing
Rules of the Senate, changes in existing law made by the bill
as reported are shown as follows: Existing law proposed to be
omitted is enclosed in [black brackets], new matter is printed
in italic, existing law in which no change is proposed is shown
in roman:
* * * * * * *
TITLE II--GRANTS FOR CONSTRUCTION OF TREATMENT WORKS
PURPOSE
Sec. 201. (a) * * *
* * * * * * *
SEC. 221. SEWER OVERFLOW CONTROL GRANTS.
[(a) In General.--In any fiscal year in which the
Administrator has available for obligation at least
$1,350,000,000 for the purposes of section 601--
[(1) the Administrator may make grants to States for
the purpose of providing grants to a municipality or
municipal entity for planning, design, and construction
of treatment works to intercept, transport, control, or
treat municipal combined sewer overflows and sanitary
sewer overflows; and
[(2) subject to subsection (g), the Administrator
may]
(a) In General.--The Administrator may--
(1) make grants to States for the purpose of
providing grants to a municipality or municipal entity
for planning, design, and construction of treatment
works to intercept, transport, control, or treat
municipal combined sewer overflows and sanitary sewer
overflows; and
(2) subject to subsection (g), make a direct grant to
a municipality or municipal entity for the purposes
described in paragraph (1).
* * * * * * *
(d) Cost-Sharing.--The Federal share of the cost of
activities carried out using amounts from a grant made under
subsection (a) shall be not less than 55 percent of the cost.
The non-Federal share of the cost may include, in any amount,
public and private funds and in-kind services, and may include,
notwithstanding section [603(h)] 603(j), financial assistance,
including loans, from a State water pollution control revolving
fund.
FEDERAL WATER POLLUTION CONTROL ACT
[(e) Administrative Reporting Requirements.--If a project
receives grant assistance under subsection (a) and loan
assistance from a State water pollution control revolving fund
and the loan assistance is for 15 percent or more of the cost
of the project, the project may be administered in accordance
with State water pollution control revolving fund
administrative reporting requirements for the purposes of
streamlining such requirements.
[(f) Authorization of Appropriations.--There is authorized to
be appropriated to carry out this section $750,000,000 for each
of fiscal years 2002 and 2003. Such sums shall remain available
until expended.
[(g) Allocation of Funds.--
[(1) Fiscal year 2002.--Subject to subsection (h),
the Administrator shall use the amounts appropriated to
carry out this section for fiscal year 2002 for making
grants to municipalities and municipal entities under
subsection (a)(2), in accordance with the criteria set
forth in subsection (b).
[(2) Fiscal year 2003.--Subject to subsection (h),
the Administrator shall use the amounts appropriated to
carry out this section for fiscal year 2003 as follows:
[(A) Not to exceed $250,000,000 for making
grants to municipalities and municipal entities
under subsection (a)(2), in accordance with the
criteria set forth in subsection (b).
[(B) All remaining amounts for making grants
to States under subsection (a)(1), in
accordance with a formula to be established by
the Administrator, after providing notice and
an opportunity for public comment, that
allocates to each State a proportional share of
such amounts based on the total needs of the
State for municipal combined sewer overflow
controls and sanitary sewer overflow controls
identified in the most recent survey conducted
pursuant to section 516(b)(1).]
(e) Administrative Requirements.--
(1) In general.--Subject to paragraph (2), a project
that receives grant assistance under subsection (a)
shall be carried out subject to the same requirements
as a project that receives assistance from a State
water pollution control revolving fund established
pursuant to title VI.
(2) Determination of governor.--The requirement
described in paragraph (1) shall not apply to a project
that receives grant assistance under subsection (a) to
the extent that the Governor of the State in which the
project is located determines that a requirement
described in title VI is inconsistent with the purposes
of this section.
(f) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section, to remain available
until expended--
(1) $375,000,000 for fiscal year 2008;
(2) $375,000,000 for fiscal year 2009;
(3) $375,000,000 for fiscal year 2010;
(4) $375,000,000 for fiscal year 2011; and
(5) $500,000,000 for fiscal year 2012.
(g) Allocation of Funds.--
(1) Fiscal year 2008 and 2009.--For each of fiscal
years 2008 and 2009, subject to subsection (h), the
Administrator shall use the amounts made available to
carry out this section to provide grants to
municipalities and municipal entities under subsection
(a)(2)--
(A) in accordance with the priority criteria
described in subsection (b); and
(B) with additional priority given to
proposed projects that involve the use of--
(i) nonstructural, low-impact
development;
(ii) water conservation, efficiency,
or reuse; or
(iii) other decentralized stormwater
or wastewater approaches to minimize
flows into the sewer systems.
(2) Fiscal year 2010 and thereafter.--For fiscal year
2010 and each fiscal year thereafter, subject to
subsection (h), the Administrator shall use the amounts
made available to carry out this section to provide
grants to States under subsection (a)(1) in accordance
with a formula that--
(A) shall be established by the
Administrator, after providing notice and an
opportunity for public comment; and
(B) allocates to each State a proportional
share of the amounts based on the total needs
of the State for municipal combined sewer
overflow controls and sanitary sewer overflow
controls, as identified in the most recent
survey--
(i) conducted under section 210; and
(ii) included in a report required
under section 516(b)(1)(B).
* * * * * * *
(i) Reports.--Not later than December 31, [2003] 2010, and
periodically thereafter, the Administrator shall transmit to
Congress a report containing recommended funding levels for
grants under this section. The recommended funding levels shall
be sufficient to ensure the continued expeditious
implementation of municipal combined sewer overflow and
sanitary sewer overflow controls nationwide.
SEC. 222. TECHNICAL ASSISTANCE FOR RURAL SMALL TREATMENT WORKS AND
MEDIUM TREATMENT WORKS.
(a) Definitions.--In this section:
(1) Decentralized wastewater system.--
(A) In general.--The term ``decentralized
wastewater system'' means a wastewater
treatment system that is at or near a site at
which wastewater is generated.
(B) Inclusions.--The term ``decentralized
wastewater system'' includes a system that
provides for--
(i) nonpotable reuse of treated
effluent; or
(ii) energy and nutrient recovery
from wastewater constituents.
(2) Medium treatment works.--The term ``medium
treatment works'' means a publicly owned treatment
works serving more than 10,000 but fewer than 100,000
individuals.
(3) Qualified nonprofit technical assistance
provider.--The term ``qualified nonprofit technical
assistance provider'' means a qualified nonprofit
technical assistance provider of water and wastewater
services to small or medium-sized communities that
provides technical assistance (including circuit rider,
multi-State regional assistance programs, and training
and preliminary engineering evaluations) to owners and
operators of small treatment works or medium treatment
works that may include State agencies.
(4) Small treatment works.--The term ``small
treatment works'' means a publicly owned treatment
works serving not more than 10,000 individuals.
(b) Grant Program.--
(1) In general.--The Administrator may make grants on
a competitive basis to qualified nonprofit technical
assistance providers that are qualified to provide
assistance on a broad range of wastewater and
stormwater approaches--
(A) to assist owners and operators of small
treatment works and medium treatment works to
plan, develop, and obtain financing for
eligible projects described in section 603(c)
or 518(c);
(B) to provide financial assistance, in
consultation with the State in which the
assistance is provided, to owners and operators
of small treatment works and medium treatment
works for predevelopment costs (including costs
for planning, design, and associated
preconstruction activities, such as activities
relating directly to the siting of the facility
and related elements) associated with
stormwater or wastewater infrastructure
projects or short-term costs incurred for
equipment replacement that is not part of
regular operation and maintenance activities
for existing stormwater or wastewater systems,
if the amount of assistance for any single
project does not exceed $50,000;
(C) to provide technical assistance and
training for owners and operators of small
treatment works and medium treatment works to
enable those treatment works and systems to
protect water quality and achieve and maintain
compliance with this Act; and
(D) to disseminate information to owners and
operators of small treatment works and medium
treatment works, with respect to planning,
design, construction, and operation of
treatment works, small municipal separate storm
sewer systems, and decentralized wastewater
treatment systems.
(2) Distribution of grant.--In carrying out this
subsection, the Administrator shall ensure, to the
maximum extent practicable, that technical assistance
provided using funds from a grant under paragraph (1)
is made available in each State.
(3) Consultation.--As a condition of receiving a
grant under this subsection, a qualified nonprofit
technical assistance provider shall agree to consult
with each State in which grant funds are to be expended
before the grant funds are expended in the State.
(4) Annual report.--Not later than 60 days after the
end of each fiscal year, a qualified nonprofit
technical assistance provider that receives a grant
under this subsection shall submit to the Administrator
a report that--
(A) describes the activities of the qualified
nonprofit technical assistance provider using
grant funds received under this subsection for
the fiscal year; and
(B) specifies--
(i) the number of communities served;
(ii) the sizes of those communities;
and
(iii) the type of assistance provided
by the qualified nonprofit technical
assistance provider.
(c) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section--
(1) for grants for small treatment works, $25,000,000
for each of fiscal years 2009 through 2013; and
(2) for grants for medium treatment works,
$15,000,000 for each of fiscal years 2009 through 2013.
* * * * * * *
SEC. 602. CAPITALIZATION GRANT AGREEMENTS.
(a) General Rule.--* * *
* * * * * * *
(b) Specific Requirements.--The Administrator shall enter
into an agreement under this section with a State only after
the State has established to the satisfaction of the
Administrator that--
(1) * * *
* * * * * * *
[(6) treatment works eligible under section 603(c)(1)
of this Act which will be constructed in whole or in
part before fiscal year 1995 with funds directly made
available by capitalization grants under this title and
section 205(m) of this Act will meet the requirements
of, or otherwise be treated (as determined by the
Governor of the State) under sections 201(b),
201(g)(1), 201(g)(2), 201(g)(3), 201(g)(5), 201(g)(6),
201(n)(1), 201(o), 204(a)(1), 204(a)(2), 204(b)(1),
204(d)(2), 211, 218, 511(c)(1), and 513 of this Act in
the same manner as treatment works constructed with
assistance under title II of this Act;]
(6) treatment works eligible under section 603(c)
that are constructed, in whole or in part, using funds
made available by a State loan fund under this title
shall meet the requirements of section 513 in the same
manner as treatment works constructed using assistance
provided under title II;
(c) Guidance for Small Systems.--
(1) Definition of small system.--In this subsection,
the term ``small system'' means a system--
(A) for which a municipality or
intermunicipal, interstate, or State agency
seeks assistance under this title; and
(B) that serves a population of not more than
10,000 individuals.
(2) Simplified procedures.--Not later than 1 year
after the date of enactment of this subsection, the
Administrator shall assist the States in establishing
simplified procedures for small systems to obtain
assistance under this title.
(3) Publication of manual.--Not later than 1 year
after the date of enactment of this subsection, after
providing notice and opportunity for public comment,
the Administrator shall publish--
(A) a manual to assist small systems in
obtaining assistance under this title; and
(B) in the Federal Register, notice of the
availability of the manual.
* * * * * * *
SEC. 603. WATER POLLUTION CONTROL REVOLVING LOAN FUNDS.
(a) Requirements for Obligation of Grant Funds.--Before a
State may receive a capitalization grant with funds made
available under this title and section 205(m) of this Act, the
State shall first establish a water pollution control revolving
fund which complies with the requirements of this section.
(b) Administrator.--Each State water pollution control
revolving fund shall be administered by an instrumentality of
the State with such powers and limitations as may be required
to operate such fund in accordance with the requirements and
objectives of this Act.
[(c) Projects Eligible for Assistance.--The amounts of
funds available to each State water pollution control revolving
fund shall be used only for providing financial assistance (1)
to any municipality, intermunicipal, interstate, or State
agency for construction of publicly owned treatment works (as
defined in section 212 of this Act), (2) for the implementation
of a management program established under section 319 of this
Act, and (3) for development and implementation of a
conservation and management plan under section 320 of this Act.
The fund shall be established, maintained, and credited with
repayments, and the fund balance shall be available in
perpetuity for providing such financial assistance.]
(c) Projects Eligible for Assistance.--Funds in each State
water pollution control revolving fund shall be used only by a
municipality or an intermunicipal, interstate, or State agency
(or, for the purpose of paragraph (1), by either of those
entities or a private treatment works or decentralized
wastewater system that principally treats municipal wastewater
or domestic sewage)--
(1) to provide financial assistance for construction
activities (such as expansion to meet needs of existing
development), including planning design, and associated
preconstruction planning activities (as defined in
section 212)--
(A) to implement a management program
established under section 319; and
(B) to develop and implement a conservation
and management plan under section 320;
(2) to increase the security of wastewater treatment
works (excluding any expenditure for operations or
maintenance);
(3) to implement measures to control, manage, reduce,
treat, infiltrate, or reuse municipal stormwater, the
primary purpose of which is the protection,
preservation, or enhancement of water quality to
support public purposes, including procurement and use
of equipment to support minimum measures such as street
sweeping and storm drain system cleaning;
(4) to carry out water conservation or efficiency
projects, the primary purpose of which is the
protection, preservation, or enhancement of water
quality to support public purposes;
(5) to implement measures to integrate water resource
management planning and implementation;
(6) to carry out water and wastewater reuse,
reclamation, and recycling projects, the primary
purpose of which is the protection, preservation, or
enhancement of water quality to support public
purposes; and
(7) for capital costs associated with monitoring
equipment for combined or sanitary sewer overflows.
(d) Types of Assistance.--Except as otherwise limited by
State law, a water pollution control revolving fund of a State
under this section may be used only--
(1) to make loans, on the condition that--
(A) such loans are made at or below market
interest rates, including interest free loans,
at terms not to exceed [20 years] the lesser of
30 years or the design life of the project to
be financed with the proceeds of the loan;
(B) annual principal and interest payments
will commence not later than 1 year after
completion of any project and all loans will be
fully amortized not later than 20 years after
project completion;
(C) the recipient of a loan will establish a
dedicated source of revenue for repayment of
loans; and
(D) the fund will be credited with all
payments of principal and interest on all
loans;
(2) to buy or refinance the debt obligation of
municipalities and intermunicipal and interstate
agencies within the State at or below market rates,
where such debt obligations were incurred after March
7, 1985;
(3) to guarantee, or purchase insurance for, local
obligations where such action would improve credit
market access or reduce interest rates;
(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 such bonds will be deposited in the fund;
(5) to provide loan guarantees for similar revolving
funds established by municipalities or intermunicipal
agencies;
(6) to earn interest on fund accounts; [and]
(7) for the reasonable costs of administering the
fund and conducting activities under this [title,
except that such amounts shall not exceed 4 percent of
all grant awards to such fund under this title.] title,
except that--
(A) such amounts shall not exceed 6 percent
of all grant awards to the fund under this
title; and
(B) if there is no appropriation for a fiscal
year, the total amount of the reasonable cost
of administering the fund and conducting
activities under this title shall not exceed 6
percent of all grant loan awards made by the
State for that fiscal year; and
(8) as a source of revenue (restricted solely to
interest earnings of the fund) or security for payment
of the principal and interest on revenue or general
obligation bonds issued by the State to provide
matching funds under section 602(b)(2), if the proceeds
of the sale of the bonds will be deposited in the fund.
(e) Additional Assistance for Disadvantaged Communities.--
(1) Definition of disadvantaged community.--In this
subsection, the term ``disadvantaged community'' means
a community with a service area, or portion of a
service area, of a treatment works that meets
affordability criteria established after public review
and comment by the State in which the treatment works
is located.
(2) Loan subsidy.--Notwithstanding any other
provision of this section, in a case in which the State
makes a loan from the water pollution control revolving
loan fund in accordance with subsection (c) to a
disadvantaged community or 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--
(A) the forgiveness of all or a portion of
the principal of the loan; and
(B) a negative interest rate on the loan.
(3) Total amount of subsidies.--For each fiscal year,
the total amount of loan subsidies made by the State
pursuant to this subsection may not exceed 30 percent
of the amount of the capitalization grant received by
the State for the fiscal year.
(4) Information.--The Administrator may publish
information to assist States in establishing
affordability criteria described in paragraph (1).
(f) Cost-Saving Water Treatment and Efficiency
Improvements.--Subject to subsection (e)(3), in providing a
loan for a project under this section, a State may forgive
repayment of such portion of the loan amount, not to exceed 5
percent, as is equal to the percentage of the project that is
devoted to alternative approaches to wastewater and stormwater
controls (including nonstructural methods) such as projects
that treat or minimize sewage or urban stormwater discharges
using--
(1) decentralized or distributed stormwater controls;
(2) decentralized wastewater treatment;
(3) low-impact development technologies and
nonstructural approaches;
(4) stream buffers;
(5) wetland restoration and enhancement;
(6) actions to minimize the quantity of and direct
connections to impervious surfaces;
(7) soil and vegetation, or other permeable
materials;
(8) actions that increase efficient water use, water
conservation, or water reuse.
[(e)] (g) Limitation To Prevent Double Benefits.--If a
State makes, from its water pollution revolving fund, a loan
which will finance the cost of facility planning and the
preparation of plans, specifications, and estimates for
construction of publicly owned treatment works, the State shall
ensure that if the recipient of such loan receives a grant
under section 201(g) of this Act for construction of such
treatment works and an allowance under section 201(l)(1) of
this Act for non-federal funds expended for such planning and
preparation, such recipient will promptly repay such loan to
the extent of such allowance.
[(f)] (h) Consistency With Planning Requirements.--A
State may provide financial assistance from its water pollution
control revolving fund only with respect to a project which is
consistent with plans, if any, developed under sections 205(j),
208, 303(e), 319, and 320 of this Act.
[(g) Priority List Requirement.--The State may provide
financial assistance from its water pollution control revolving
fund only with respect to a project for construction of a
treatment works described in subsection (c)(1) if such project
is on the State's priority list under section 216 of this Act.
Such assistance may be provided regardless of the rank of such
project on such list.]
(i) Priority System Requirement.--
(1) Definitions.--In this subsection:
(A) Restructuring.--The term
``restructuring'' means--
(i) the consolidation of management
functions or ownership with another
facility; or
(ii) the formation of cooperative
partnerships.
(B) Traditional wastewater approach.--The
term ``traditional wastewater approach'' means
a managed system used to collect and treat
wastewater from an entire service area
consisting of--
(i) collection sewers;
(ii) a centralized treatment plant
using biological, physical, or chemical
treatment processes; and
(iii) a direct point source discharge
to surface water.
(2) Priority system.--In providing financial
assistance from the water pollution control revolving
fund of the State, the State shall establish a priority
system that--
(A) gives greater weight to an application
for assistance by the owner or operator of a
treatment works if the application includes--
(i) an inventory of assets, including
a description of the condition of those
assets;
(ii) a schedule for replacement of
the assets;
(iii) a financing plan that factors
in all lifecycle costs indicating
sources of revenue from ratepayers,
grants, bonds, other loans, and other
sources to meet the costs;
(iv) a review of options for
restructuring the treatment works; or
(v) approaches other than a
traditional wastewater approach that
treat or minimize sewage or urban
stormwater discharges using--
(I) decentralized or
distributed stormwater
controls;
(II) decentralized wastewater
treatment;
(III) low-impact development
technologies and nonstructural
approaches;
(IV) stream buffers;
(V) wetland restoration and
enhancement;
(VI) actions to minimize the
quantity of and direct
connections to impervious
surfaces;
(VII) soil and vegetation, or
other permeable materials; or
(VIII) actions that increase
efficient water use, water
conservation, or water reuse;
(vi) a demonstration of consistency
with State, regional, and municipal
watershed plans, water conservation and
efficiency plans, or integrated water
resource management plans;
(vii) a proposal by the applicant
demonstrating flexibility through
alternative means to carry out
responsibilities under Federal
regulations, that may include watershed
permitting and other innovative
management approaches, while achieving
results that--
(I) the State, in the case of
a permit program approved under
section 402, determines will
meet permit requirements; or
(II) the Administrator
determines are measurably
superior when compared to
regulatory standards;
(B) takes into consideration appropriate
chemical, physical, and biological data
relating to water quality that the State
considers reasonably available and of
sufficient quality;
(C) provides for public notice and
opportunity to comment on the establishment of
the priority system and the summary under
subparagraph (D);
(D) provides for the publication, not less
than biennially in summary form, of a
description of projects in the State that are
eligible for assistance under this title that
indicates--
(i) the priority assigned to each
project under the priority system of
the State; and
(ii) the funding schedule for each
project, to that extent the information
is available; and
(E) ensures that projects undertaken with
assistance under this title are designed to
achieve, as determined by the State, the
optimum water quality management, consistent
with the public health and water quality goals
and requirements of this Act.
[(h)] (j) Eligibility of Non-Federal Share of Construction
Grant Projects.--A State water pollution control revolving fund
may provide assistance (other than under subsection (d)(1) of
this section) to a municipality or intermunicipal or interstate
agency with respect to the non-Federal share of the costs of a
treatment works project for which such municipality or agency
is receiving assistance from the Administrator under any other
authority only if such assistance is necessary to allow such
project to proceed.
(k) Transfer of Funds.--
(1) In general.--The Governor of a State may--
(A)(i) reserve not more than 33 percent of a
capitalization grant made under this title; and
(ii) add the funds reserved to any funds
provided to the State under section 1452 of the
Safe Drinking Water Act (42 U.S.C. 300j-12);
and
(B)(i) reserve for any year an amount that
does not exceed the amount that may be reserved
under subparagraph (A) for that year from
capitalization grants made under section 1452
of that Act (42 U.S.C. 300j-12); and
(ii) add the reserved funds to any funds
provided to the State under this title.
(2) State match.--Funds reserved under this
subsection shall not be considered to be a State
contribution for a capitalization grant required under
this title or section 1452(b) of the Safe Drinking
Water Act (42 U.S.C. 300j-12(b)).
(l) Noncompliance.--
(1) In general.--Except as provided in paragraph (2),
no assistance (other than assistance that is to be used
by a treatment works solely for planning, design, or
security purposes) shall be provided under this title
to the owner or operator of a treatment works that has
been in significant noncompliance with any requirement
of this Act for any of the 4 quarters during the
preceding 8 quarters, unless the treatment works is in
compliance with an enforceable administrative order to
effect compliance with the requirement.
(2) Exception.--An owner or operator of a treatment
works that is determined under paragraph (1) to be in
significant noncompliance with a requirement described
in that paragraph may receive assistance under this
title if the Administrator and the State providing the
assistance determine that--
(A) the entity conducting the enforcement
action on which the determination of
significant noncompliance is based has
determined that the use of assistance would
enable the owner or operator of the treatment
works to take corrective action toward
resolving the violations; or
(B) the entity conducting the enforcement
action on which the determination of
significant noncompliance is based has
determined that the assistance would be used by
the owner or operator of the treatment works in
order to assist owners and operators in making
progress towards compliance.
(m) Negotiation of Contracts.--
(1) In general.--A contract to be carried out using
funds directly made available by a capitalization grant
under this section for program management, construction
management, feasibility studies, preliminary
engineering, design, engineering, surveying, mapping,
or architectural or related services shall be
negotiated in the same manner as--
(A) a contract for architectural and
engineering services is negotiated under
chapter 11 of title 40, United States Code; or
(B) an equivalent State qualifications-based
requirement (as determined by the Governor of
the State).
(2) Exemption for small communities.--Paragraph (1)
shall not apply to a contract described in that
paragraph for program management, construction
management, feasibility studies, preliminary
engineering, design, engineering, surveying, mapping,
or architectural or related services for a community of
10,000 or fewer individuals.
* * * * * * *
SEC. 604. ALLOTMENT OF FUNDS.
(a) Formula.--Sums authorized to be appropriated to carry
out this section for each of fiscal years 1989 and 1990 shall
be allotted by the Administrator in accordance with section
205(c) of this Act.
[(b) Reservation of Funds for Planning.--Each State shall
reserve each fiscal year 1 percent of the sums allotted to such
State under this section for such fiscal year, or $100,000,
whichever amount is greater, to carry out planning under
sections 205(j) and 303(e) of this Act.]
(b) Reservation of Funds.--
(1) Planning.--Each State may reserve for each fiscal
year the greater of 2 percent of the sums allotted to
the State under this section for the fiscal year, or
$100,000, to carry out planning under sections 205(j)
and 303(e).
(2) Indian tribes.--Of the total amount of funds made
available under paragraph (1), 1.5 percent shall be
allocated to Indian tribes (as defined in section
518(h)).
* * * * * * *
[SEC. 607. AUTHORIZATION OF APPROPRIATIONS.]
There is authorized to be appropriated to carry out the
purposes of this title the following sums:
[(1) $1,200,000,000 per fiscal year for each of
fiscal year 1989 and 1990;
[(2) $2,400,000,000 for fiscal year 1991;
[(3) $1,800,000,000 for fiscal year 1992;
[(4) $1,200,000,000 for fiscal year 1993; and
[(5) $600,000,000 for fiscal year 1994.]
SEC. 607. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated to
carry out this title--
(1) $3,200,000,000 for each of fiscal years 2008 and
2009;
(2) $3,600,000,000 for fiscal year 2010;
(3) $4,000,000,000 for fiscal year 2011; and
(4) $6,000,000,000 for fiscal year 2012.
(b) Availability.--Amounts made available under this section
shall remain available until expended.
(c) Reservation for Needs Surveys.--Of the amount made
available under subsection (a) to carry out this title for a
fiscal year, the Administrator may reserve not more than
$1,000,000 for the fiscal year, to remain available until
expended, to pay the costs of conducting needs surveys under
section 516(b)(1)(B).
SAFETY OF PUBLIC WATER SYSTEMS (SAFE DRINKING WATER ACT)
* * * * * * *
SEC. 1434. CONTAMINANT PREVENTION, DETECTION AND RESPONSE.
(a) In General.--* * *
* * * * * * *
[(b) Funding.--For the authorization of appropriations to
carry out this section, see section 1435(e).]
(b) Report.--Not later than 180 days after the date of
enactment of the Water Infrastructure Financing Act, the
Administrator shall submit to Congress a report that includes--
(1) a description of the progress made as of that
date in implementing this section; and
(2) a description of any impediments to that
implementation identified by the Administrator,
including--
(A) difficulty in coordinating the
implementation with other Federal, State, or
local agencies or organizations;
(B) insufficient funding for effective
implementation;
(C) a lack of authorization to take certain
actions (including the authority to hire
necessary personnel) required to carry out the
implementation; and
(D) technological impediments to developing
the methods, means, and equipment specified in
subsection (a)(1).
(c) Implementation Plan.--The Administrator shall develop and
carry out an implementation plan for this section consistent
with actions taken to date and incorporating the results of the
report under subsection (b).
(d) Funding.--There is authorized to be appropriated to carry
out this section $7,500,000 for each of fiscal years 2008
through 2012.
* * * * * * *
Sec. 1442. (a)(1) The Administrator may conduct research,
studies, and demonstrations relating to the causes, diagnosis,
treatment, control, and prevention of physical and mental
diseases and other impairments of man resulting directly or
indirectly from contaminants in water, or to the provision of a
dependably safe supply of drinking water, including--
(A) improved methods (i) to identify and measure the
existence of contaminants in drinking water (including
methods which may be used by State and local health and
water officials), and (ii) to identify the source of
such contaminants;
(B) * * *
* * * * * * *
(e) Technical Assistance.--[The Administrator may provide]
(1) Public water systems.--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]
(2) Types of assistance.--Such assistance may include
circuit-rider and multi-State regional technical
assistance programs, training, and preliminary
engineering evaluations. [The Administrator shall
ensure]
(3) Availability.--The Administrator shall ensure
that technical assistance pursuant to this subsection
is available in each State. [Each nonprofit]
(4) Requirement applicable to nonprofit
organizations.--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.]
(5) Priority.--In providing grants under this
section, the Administrator shall give priority to small
systems organizations that, as determined by the
Administrator, are qualified and will be the most
effective at assisting those small systems that have
the greatest need (or a majority of need) in the
States.
(6) Wells and well systems.--
(A) In general.--The Administrator shall
provide grants to nonprofit organizations to
provide technical assistance to communities and
individuals regarding the design, operation,
construction, and maintenance of household
wells and small shared well-systems that
provide drinking water.
(B) Form of assistance.--Technical assistance
referred to in subparagraph (A) may include--
(i) training and education;
(ii) operation of a hotline; and
(iii) the conduct of other activities
relating to the design and construction
of household, shared, and small water
well systems in rural areas.
(C) Priority.--Subject to paragraph (5), in
providing grants under this section, the
Administrator shall give priority to applicants
that, as determined by the Administrator--
(i) are qualified; and
(ii) have demonstrated experience in
providing similar technical assistance
and in developing similar projects.
(D) Authorization of appropriations.--There
is authorized to be appropriated to carry out
this paragraph $7,500,000 for each of fiscal
years 2009 through 2013.
(7) Funding.--
(A) Authorization of appropriations.--There
is authorized to be appropriated to the
Administrator to carry out this subsection
(other than paragraph (6)) $35,000,000 for each
of fiscal years 2009 through 2013.
(B) Lobbying expenses.--No portion of any
State loan fund established under section 1452
and no portion of any funds made available
under this subsection may be used for lobbying
expenses.
(C) Indian tribes.--Of the total amount made
available under this section for each fiscal
year, 3 percent shall be used for technical
assistance to public water systems owned or
operated by Indian Tribes.
* * * * * * *
Sec. 1450. (a)(1) The Administrator is authorized to
prescribe such regulations as are necessary or appropriate to
carry out his functions under this title.
(2) * * *
* * * * * * *
[(e) The Administrator shall take such action as may be
necessary to assure compliance with provisions of the Act of
March 3, 1931 (known as the Davis-Bacon Act; 40 U.S.C. 276a-
276a(5)). The Secretary of Labor shall have, with respect to
the labor standards specified in this subsection, the authority
and functions set forth in Reorganization Plan Numbered 14 of
1950 (15 F.R. 3176; 64 Stat. 1267) and section 2 of the Act of
June 13, 1934 (40 U.S.C. 276c).]
(e) Labor Standards.--
(1) In general.--The Administrator shall take such
action as the Administrator determines to be necessary
to ensure that each laborer and mechanic employed by a
contractor or subcontractor of a construction project
financed, in whole or in part, by a grant, loan, loan
guarantee, refinancing, or any other form of financial
assistance provided under this Act (including
assistance provided by a State loan fund established
under section 1452) is paid wages at a rate of not less
than the wages prevailing for the same type of work on
similar construction in the immediate locality, as
determined by the Secretary of Labor in accordance with
subchapter IV of chapter 31 of title 40, United States
Code.
(2) Authority of secretary of labor.--With respect to
the labor standards specified in this subsection, the
Secretary of Labor shall have the authority and
functions established in Reorganization Plan Numbered
14 of 1950 (5 U.S.C. App.) and section 3145 of title
40, United States Code.
* * * * * * *
Sec. 1452. (a) General Authority.--
(1) Grants to states to establish state loan funds.--
(A) In general.--* * *
* * * * * * *
(2) Use of funds.--
(A) 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.
(B) Financial assistance under this section
may be used by a public water system only for
expenditures [(not] (including expenditures for
planning, design, and associated
preconstruction activities, including
activities relating to the siting of the
facility, but 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
titleor to replace or rehabilitate aging
treatment, storage (including reservoirs), or
distribution facilities of public water systems
or provide for capital projects to upgrade the
security of public water systems.
(C) Sale of bonds.--Funds may also be used by
a public water system to increase security at
the public water system (excluding any
expenditure for operations and maintenance), or
as a source of revenue (restricted solely to
interest earnings of the applicable State loan
fund) or security for payment of the principal
and interest on revenue or general obligation
bonds issued by the State to provide matching
funds under subsection (e), if the proceeds of
the sale of the bonds will be deposited in the
State loan fund.
(D) 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).
(E) 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.
(F) 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.
* * * * * * *
(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.--* * *
* * * * * * *
(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.]
(A) Definition of restructuring.--In this
paragraph, the term ``restructuring'' means
changes in operations (including ownership,
cooperative partnerships, asset management,
consolidation, and alternative water supply).
(B) Priority system.--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 this title (including
requirements for filtration); and
(iii) assist systems most in need on
a per-household basis according to
State affordability criteria.
(C) Weight given to applications.--After
determining project priorities under
subparagraph (B), an intended use plan shall
further provide that the State shall give
greater weight to an application for assistance
by a community water system if the application
includes such information as the State
determines to be necessary, including--
(i) an inventory of assets, including
a description of the condition of the
assets;
(ii) a schedule for replacement of
assets;
(iii) a financing plan that factors
in all life-cycle costs indicating
sources of revenue from ratepayers,
grants, bonds, other loans, and other
sources to meet the costs;
(iv) a review of options for
restructuring the public water system;
(v) demonstration of consistency with
State, regional, and municipal
watershed plans; and
(vi) a water conservation plan
consistent with guidelines developed
for those plans by the Administrator
under section 1455(a).
[(B)] (D) List of projects.--Each State
shall, after notice and opportunity for public
comment, publish and [periodically] at least
biennially 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.
* * * * * * *
(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, or portion of a 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.
* * * * * * *
(g) Administration of State Loan Funds.--
(1) Combined financial administration.--* * *
* * * * * * *
(2) Cost of administering fund.--Each State may
annually use up to [4] 6 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.]
1419. 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.
(5) Transfer of funds.--
(A) In general.--The Governor of a State
may--
(i)(I) reserve not more than 33
percent of a capitalization grant made
under this section; and
(II) add the funds reserved to any
funds provided to the State under
section 601 of the Federal Water
Pollution Control Act (33 U.S.C. 1381);
and
(ii)(I) reserve for any fiscal year
an amount that does not exceed the
amount that may be reserved under
clause (i)(I) for that year from
capitalization grants made under
section 601 of that Act (33 U.S.C.
1381); and
(II) add the reserved funds to any
funds provided to the State under this
section.
(B) State match.--Funds reserved under this
paragraph shall not be considered to be a State
match of a capitalization grant required under
this section or section 602(b) of the Federal
Water Pollution Control Act (33 U.S.C.
1382(b)).
* * * * * * *
(k) Other Authorized Activities.--
(1) In general.--Notwithstanding subsection (a)(2), a
State may take each of the following actions:
(A) * * *
* * * * * * *
(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) (including implementation
of source water protection plans).
* * * * * * *
[(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.]
(m) Authorization of Appropriations.--
(1) In general.--There are authorized to be
appropriated to carry out this section--
(A) $1,500,000,000 for fiscal year 2008;
(B) $2,000,000,000 for each of fiscal years
2009 and 2010;
(C) $3,500,000,000 for fiscal year 2011; and
(D) $6,000,000,000 for fiscal year 2012.
(2) Availability.--Amounts made available under this
subsection shall remain available until expended.
(3) Reservation for needs surveys.--Of the amount
made available under paragraph (1) to carry out this
section for a fiscal year, the Administrator may
reserve not more than $1,000,000 per year to pay the
costs of conducting needs surveys under subsection (h).
* * * * * * *
(s) Negotiation of Contracts.--
(1) In general.--A contract to be carried out using
funds directly made available by a capitalization grant
under this section for program management, construction
management, feasibility studies, preliminary
engineering, design, engineering, surveying, mapping,
or architectural or related services shall be
negotiated in the same manner as--
(A) a contract for architectural and
engineering services is negotiated under
chapter 11 of title 40, United States Code; or
(B) an equivalent State qualifications-based
requirement (as determined by the Governor of
the State).
(2) Exemption for small communities.--Paragraph (1)
shall not apply to a contract described in that
paragraph for program management, construction
management, feasibility studies, preliminary
engineering, design, engineering, surveying, mapping,
or architectural or related services for a community of
10,000 or fewer individuals.
* * * * * * *