[House Report 111-524]
[From the U.S. Government Publishing Office]


111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     111-524

======================================================================



 
           ASSISTANCE, QUALITY, AND AFFORDABILITY ACT OF 2010

                                _______
                                

  July 1, 2010.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Waxman, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 5320]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 5320) to amend the Safe Drinking Water Act to 
increase assistance for States, water systems, and 
disadvantaged communities; to encourage good financial and 
environmental management of water systems; to strengthen the 
Environmental Protection Agency's ability to enforce the 
requirements of the Act; to reduce lead in drinking water; to 
strengthen the endocrine disruptor screening program; and for 
other purposes, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................    13
Background and Need for Legislation..............................    14
Legislative History..............................................    15
Committee Consideration..........................................    16
Committee Votes..................................................    16
Committee Oversight Findings and Recommendations.................    18
New Budget Authority, Entitlement Authority, and Tax Expenditures    18
Statement of General Performance Goals and Objectives............    18
Constitutional Authority Statement...............................    18
Earmarks and Tax and Tariff Benefits.............................    19
Advisory Committee Statement.....................................    19
Applicability of Law to Legislative Branch.......................    19
Federal Mandates Statement.......................................    19
Committee Cost Estimate..........................................    19
Congressional Budget Office Estimate.............................    19
Section-by-Section Analysis of the Legislation...................    24
Explanation of Amendments........................................    30
Changes in Existing Law Made by the Bill, as Reported............    30

                               Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS; REFERENCES.

  (a) Short Title.--This Act may be cited as the ``Assistance, Quality, 
and Affordability Act of 2010''.
  (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents; references.
Sec. 2. Technical assistance for small public water systems.
Sec. 3. Prevailing wages.
Sec. 4. Use of funds.
Sec. 5. Requirements for use of American materials.
Sec. 6. Data on variances, exemptions, and persistent violations.
Sec. 7. Assistance for restructuring.
Sec. 8. Priority and weight of applications.
Sec. 9. Disadvantaged communities.
Sec. 10. Administration of State loan funds.
Sec. 11. State revolving loan funds for American Samoa, Northern 
Mariana Islands, Guam, and the Virgin Islands.
Sec. 12. Authorization of appropriations.
Sec. 13. Negotiation of contracts.
Sec. 14. Affordability of new standards.
Sec. 15. Focus on lifecycle costs.
Sec. 16. Enforcement.
Sec. 17. Reducing lead in drinking water.
Sec. 18. Endocrine disruptor screening program.
Sec. 19. Presence of pharmaceuticals and personal care products in 
sources of drinking water.
Sec. 20. Electronic reporting of compliance monitoring data to the 
Administrator.

  (c) References.--Except as otherwise specified, whenever in this Act 
an amendment is expressed in terms of an amendment to a section or 
other provision, the reference shall be considered to be made to a 
section or other provision of the Safe Drinking Water Act (42 U.S.C. 
300f et seq.).

SEC. 2. TECHNICAL ASSISTANCE FOR SMALL PUBLIC WATER SYSTEMS.

  Subsection (e) of section 1442 (42 U.S.C. 300j-1(e)) is amended to 
read as follows:
  ``(e) Technical Assistance.--
          ``(1) In general.--The Administrator, directly or through 
        grants or cooperative agreements with nonprofit organizations, 
        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.
          ``(2) Types of assistance.--Technical assistance under 
        paragraph (1) may include onsite technical assistance and 
        compliance assistance; circuit-rider and multi-State regional 
        technical assistance programs; training; assistance with 
        implementing source water protection programs; assistance with 
        increasing water or energy efficiency; assistance with 
        designing, installing, or operating sustainable energy 
        infrastructure to produce or capture sustainable energy on site 
        or through water transport; assistance with developing 
        technical, financial, and managerial capacity; assistance with 
        long-term infrastructure planning; assistance with applying for 
        funds from a State loan fund under section 1452; and assistance 
        with implementation of monitoring plans, rules, regulations, 
        and water security enhancements.
          ``(3) Priority.--In providing assistance under this 
        subsection, the Administrator shall give priority to assistance 
        that will promote compliance with national primary drinking 
        water standards, public health protection, and long-term 
        sustainability of small public water systems. In awarding 
        grants and cooperative assistance under paragraph (1) to 
        nonprofit organizations, the Administrator shall (subject to 
        the preceding sentence) give greater weight to nonprofit 
        organizations that, as determined by the Administrator, are 
        most qualified and most effective and that, as determined by 
        the Administrator using information where available, are 
        providing the types of technical assistance that are preferred 
        by small public water systems.
          ``(4) Competitive procedures.--It is the presumption of 
        Congress that any award of assistance under this subsection 
        will be awarded using competitive procedures based on merit. If 
        assistance is awarded under this subsection using procedures 
        other than competitive procedures, the Administrator shall 
        submit to the Congress, within 90 days of the award decision, a 
        report explaining why competitive procedures were not used.
          ``(5) Funding.--
                  ``(A) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                subsection $20,000,000 for each of fiscal years 2011 
                through 2015.
                  ``(B) Prohibition on earmarks.--No funds made 
                available under this subsection may be used to carry 
                out a provision or report language included primarily 
                at the request of a Member, Delegate, Resident 
                Commissioner, or Senator providing, authorizing, or 
                recommending a specific amount of discretionary budget 
                authority, credit authority, or other spending 
                authority for a contract, loan, loan guarantee, grant, 
                loan authority, or other expenditure with or to an 
                entity, or targeted to a specific State, locality, or 
                congressional district, other than through a statutory 
                or administrative formula-driven or competitive award 
                process.
                  ``(C) 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.
                  ``(D) 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. 3. PREVAILING WAGES.

  Subsection (e) of section 1450 (42 U.S.C. 300j-9) is amended to read 
as follows:
  ``(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 in connection with 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 title (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. 4. USE OF FUNDS.

  Section 1452(a)(2) (42 U.S.C. 300j-12(a)(2)) is amended--
          (1) by striking ``Except as otherwise'' and inserting the 
        following:
                  ``(A) In general.--Except as otherwise'';
          (2) by striking ``Financial assistance under this section'' 
        and inserting the following:
                  ``(B) Permissible expenditures.--Financial assistance 
                under this section'';
          (3) by striking ``The funds may also be used'' and inserting 
        the following:
                  ``(D) Certain loans.--Financial assistance under this 
                section may also be used'';
          (4) by striking ``The funds shall not be used'' and inserting 
        the following:
                  ``(E) Limitation.--Financial assistance under this 
                section shall not be used'';
          (5) by striking ``Of the amount credited'' and inserting the 
        following:
                  ``(F) Set-aside.--Of the amount credited'';
          (6) in subparagraph (B) (as designated by paragraph (2)) by 
        striking ``(not'' and inserting ``(including expenditures for 
        planning, design, siting, and associated preconstruction 
        activities, for replacing or rehabilitating aging treatment, 
        storage, or distribution facilities of public water systems, or 
        for producing or capturing sustainable energy on site or 
        through the transportation of water through the public water 
        system, but not''; and
          (7) by inserting after such subparagraph (B) the following:
                  ``(C) Sale of bonds.--If a State issues revenue or 
                general obligation bonds to provide all or part of the 
                State contribution required by subsection (e), and the 
                proceeds of the sale of such bonds will be deposited 
                into the State loan fund--
                          ``(i) financial assistance made available 
                        under this section may be used by the State as 
                        security for payment of the principal and 
                        interest on such bonds; and
                          ``(ii) interest earnings of the State loan 
                        fund may be used by the State as revenue for 
                        payment of the principal and interest on such 
                        bonds.''.

SEC. 5. REQUIREMENTS FOR USE OF AMERICAN MATERIALS.

  Section 1452(a) (42 U.S.C. 300j-12(a)) is amended by adding at the 
end the following new paragraph:
          ``(4) Requirements for use of american materials.--
                  ``(A) In general.--Notwithstanding any other 
                provision of law, none of the funds made available by a 
                State loan fund as authorized under this section may be 
                used for a project for the construction, alteration, 
                maintenance, or repair of a public water system unless 
                the steel, iron, and manufactured goods used in such 
                project are produced in the United States.
                  ``(B) Exceptions.--Subparagraph (A) shall not apply 
                in any case in which the Administrator (in consultation 
                with the Governor of the State) finds that--
                          ``(i) applying subparagraph (A) would be 
                        inconsistent with the public interest;
                          ``(ii) steel, iron, and manufactured goods 
                        are not produced in the United States in 
                        sufficient and reasonably available quantities 
                        and of a satisfactory quality; or
                          ``(iii) inclusion of steel, iron, and 
                        manufactured goods produced in the United 
                        States will increase the cost of the overall 
                        project by more than 25 percent.
                  ``(C) Public notification and written justification 
                for waiver.--If the Administrator determines that it is 
                necessary to waive the application of subparagraph (A) 
                based on a finding under subparagraph (B), the 
                Administrator shall--
                          ``(i) not less than 15 days prior to waiving 
                        application of subparagraph (A), provide public 
                        notice and the opportunity to comment on the 
                        Administrator's intent to issue such waiver; 
                        and
                          ``(ii) upon issuing such waiver, publish in 
                        the Federal Register a detailed written 
                        justification as to why the provision is being 
                        waived.
                  ``(D) Consistency with international agreements.--
                This paragraph shall be applied in a manner consistent 
                with United States obligations under international 
                agreements.''.

SEC. 6. DATA ON VARIANCES, EXEMPTIONS, AND PERSISTENT VIOLATIONS.

  Section 1452(b)(2) (42 U.S.C. 300j-12(b)(2)) is amended--
          (1) in subparagraph (B), by striking ``and'' at the end;
          (2) in subparagraph (C), by striking the period at the end 
        and inserting ``; and''; and
          (3) by adding at the end the following:
                  ``(D) a list of all water systems within the State 
                that have in effect an exemption or variance for any 
                national primary drinking water regulation or that are 
                in persistent violation of the requirements for any 
                maximum contaminant level or treatment technique under 
                a national primary drinking water regulation, including 
                identification of--
                          ``(i) the national primary drinking water 
                        regulation in question for each such exemption, 
                        variance, or violation; and
                          ``(ii) the date on which the exemption or 
                        variance came into effect or the violation 
                        began.''.

SEC. 7. ASSISTANCE FOR RESTRUCTURING.

  (a) Definition.--Section 1401 (42 U.S.C. 300f) is amended by adding 
at the end the following:
          ``(17) Restructuring.--The term `restructuring' means changes 
        in operations (including ownership, management, cooperative 
        partnerships, joint purchasing arrangements, consolidation, and 
        alternative water supply).''.
  (b) Restructuring.--Clause (ii) of section 1452(a)(3)(B) (42 U.S.C. 
300j-12(a)(3)(B)) is amended by striking ``changes in operations 
(including ownership, management, accounting, rates, maintenance, 
consolidation, alternative water supply, or other procedures)'' and 
inserting ``restructuring''.

SEC. 8. PRIORITY AND WEIGHT OF APPLICATIONS.

  (a) Priority.--Section 1452(b)(3) (42 U.S.C. 300j-12(b)(3)) is 
amended--
          (1) in subparagraph (A)--
                  (A) in clause (ii), by striking ``and'' at the end;
                  (B) in clause (iii), by striking the period at the 
                end and inserting ``; and''; and
                  (C) by adding at the end the following:
                          ``(iv) improve the ability of systems to 
                        protect human health and comply with the 
                        requirements of this title affordably in the 
                        future.'';
          (2) by redesignating subparagraph (B) as subparagraph (D);
          (3) by inserting after subparagraph (A) the following:
                  ``(B) Affordability of new standards.--For any year 
                in which enforcement begins for a new national primary 
                drinking water standard, each State that has entered 
                into a capitalization agreement pursuant to this 
                section shall evaluate whether capital improvements 
                required to meet the standard are affordable for 
                disadvantaged communities in the State. If the State 
                finds that such capital improvements do not meet 
                affordability criteria for disadvantaged communities in 
                the State, the State's intended use plan shall provide 
                that priority for the use of funds for such year be 
                given to public water systems affected by the standard 
                and serving disadvantaged communities.
                  ``(C) Weight given to applications.--After 
                determining priority under subparagraphs (A) and (B), 
                an intended use plan shall provide that the State will 
                give greater weight to an application for assistance if 
                the application contains--
                          ``(i) a description of measures undertaken by 
                        the system to improve the management and 
                        financial stability of the system, which may 
                        include--
                                  ``(I) an inventory of assets, 
                                including a description of the 
                                condition of the assets;
                                  ``(II) a schedule for replacement of 
                                assets;
                                  ``(III) an audit of water losses;
                                  ``(IV) 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; and
                                  ``(V) a review of options for 
                                restructuring;
                          ``(ii) a demonstration of consistency with 
                        State, regional, and municipal watershed plans;
                          ``(iii) a water conservation plan consistent 
                        with guidelines developed for such plans by the 
                        Administrator under section 1455(a); and
                          ``(iv) a description of measures undertaken 
                        by the system to improve the efficiency of the 
                        system or reduce the system's environmental 
                        impact, which may include--
                                  ``(I) water efficiency or 
                                conservation, including the 
                                rehabilitation or replacement of 
                                existing leaking pipes;
                                  ``(II) use of reclaimed water;
                                  ``(III) actions to increase energy 
                                efficiency;
                                  ``(IV) actions to generate or capture 
                                sustainable energy on site or through 
                                the transportation of water through the 
                                system;
                                  ``(V) actions to protect source 
                                water;
                                  ``(VI) actions to mitigate or prevent 
                                corrosion, including design, selection 
                                of materials, selection of coating, and 
                                cathodic protection; and
                                  ``(VII) actions to reduce 
                                disinfection byproducts.''; and
          (4) in subparagraph (D) (as redesignated by paragraph (2)) by 
        striking ``periodically'' and inserting ``at least 
        biennially''.
  (b) Guidance.--Section 1452 (42 U.S.C. 300j-12) is amended--
          (1) by redesignating subsection (r) as subsection (s); and
          (2) by inserting after subsection (q) the following:
  ``(r) Small System Guidance.--The Administrator may provide guidance 
and, as appropriate, tools, methodologies, or computer software, to 
assist small systems in undertaking measures to improve the management, 
financial stability, and efficiency of the system or reduce the 
system's environmental impact.''.

SEC. 9. DISADVANTAGED COMMUNITIES.

  (a) Assistance To Increase Compliance.--Section 1452(b)(3) (42 U.S.C. 
300j-12(b)(3)), as amended, is further amended by adding at the end the 
following:
                  ``(E) Assistance to increase compliance.--A State's 
                intended use plan shall provide that, of the funds 
                received by the State through a capitalization grant 
                under this section for a fiscal year, the State will, 
                to the extent that there are sufficient eligible 
                project applications, reserve not less than 6 percent 
                to be spent on assistance under subsection (d) to 
                public water systems included in the State's most 
                recent list under paragraph (2)(D).''.
  (b) Assistance for Disadvantaged Communities.--Section 1452(d) (42 
U.S.C. 300j-12(d)) is amended--
          (1) in paragraph (1), by adding at the end the following: 
        ``Such additional subsidization shall directly and primarily 
        benefit the disadvantaged community.''; and
          (2) in paragraph (3), by inserting ``, or portion of a 
        service area,'' after ``service area''.
  (c) Affordability Criteria.--Section 1452(d)(3) is amended by adding 
at the end: ``Each State that has entered into a capitalization 
agreement pursuant to this section shall, in establishing affordability 
criteria, consider, solicit public comment on, and include as 
appropriate--
                  ``(A) the methods or criteria that the State will use 
                to identify disadvantaged communities;
                  ``(B) a description of the institutional, regulatory, 
                financial, tax, or legal factors at the Federal, State, 
                or local level that affect identified affordability 
                criteria; and
                  ``(C) a description of how the State will use the 
                authorities and resources under this subsection to 
                assist communities meeting the identified criteria.''.

SEC. 10. ADMINISTRATION OF STATE LOAN FUNDS.

  Section 1452(g) (42 U.S.C. 300j-12(g)) is amended--
          (1) in paragraph (2)--
                  (A) in the first sentence, by striking ``up to 4 
                percent of the funds allotted to the State under this 
                section'' and inserting ``, for each fiscal year, an 
                amount that does not exceed the sum of the amount of 
                any fees collected by the State for use in covering 
                reasonable costs of administration of programs under 
                this section, regardless of the source, and an amount 
                equal to the greatest of $400,000, \1/5\ of one percent 
                of the current valuation of the State loan fund, or 6 
                percent of all grant awards to the State loan fund 
                under this section for the fiscal year,'';
                  (B) by striking ``1419,'' and all that follows 
                through ``1993.'' and inserting ``1419.''; and
                  (C) in the matter following subparagraph (D), by 
                striking ``2 percent'' and inserting ``4 percent''; and
          (2) by adding at the end the following:
          ``(5) Transfer of funds.--
                  ``(A) In general.--The Governor of a State may--
                          ``(i) reserve for any fiscal year not more 
                        than the lesser of--
                                  ``(I) 33 percent of a capitalization 
                                grant made under this section; or
                                  ``(II) 33 percent of a capitalization 
                                grant made under section 601 of the 
                                Federal Water Pollution Control Act; 
                                and
                          ``(ii) add the funds so reserved to any funds 
                        provided to the State under this section or 
                        section 601 of the Federal Water Pollution 
                        Control Act.
                  ``(B) State matching funds.--Funds reserved under 
                this paragraph shall not be considered for purposes of 
                calculating the amount of a State contribution required 
                by subsection (e) of this section or section 602(b) of 
                the Federal Water Pollution Control Act.''.

SEC. 11. STATE REVOLVING LOAN FUNDS FOR AMERICAN SAMOA, NORTHERN 
                    MARIANA ISLANDS, GUAM, AND THE VIRGIN ISLANDS.

  Section 1452(j) (42 U.S.C. 300j-12(j)) is amended by striking ``0.33 
percent'' and inserting ``1 percent''.

SEC. 12. AUTHORIZATION OF APPROPRIATIONS.

  Subsection (m) of section 1452 (42 U.S.C. 300j-12) is amended to read 
as follows:
  ``(m) Authorization of Appropriations.--
          ``(1) In general.--There are authorized to be appropriated to 
        carry out this section--
                  ``(A) $1,400,000,000 for fiscal year 2011;
                  ``(B) $1,600,000,000 for fiscal year 2012; and
                  ``(C) $1,800,000,000 for fiscal year 2013.
          ``(2) Availability.--Amounts made available pursuant to 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).''.

SEC. 13. NEGOTIATION OF CONTRACTS.

  Section 1452 (42 U.S.C. 300j-12), as amended, is further amended by 
adding at the end the following:
  ``(t) Negotiation of Contracts.--For community water systems serving 
communities with populations of more than 10,000 individuals, a 
contract to be carried out using funds made available through 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--
          ``(1) a contract for architectural and engineering services 
        is negotiated under chapter 11 of title 40, United States Code; 
        or
          ``(2) a contract subject to an equivalent State or local 
        qualifications-based requirement (as determined by the Governor 
        of the State).''.

SEC. 14. AFFORDABILITY OF NEW STANDARDS.

  (a) Treatment Technologies for Small Public Water Systems.--Clause 
(ii) of section 1412(b)(4)(E) (42 U.S.C. 300g-1(b)(4)(E)) is amended by 
adding at the end the following: ``If no technology, treatment 
technique, or other means is included in a list under this subparagraph 
for a category of small public water systems, the Administrator shall 
periodically review the list and supplement it when new technology 
becomes available.''.
  (b) Assistance for Disadvantaged Communities.--
          (1) In general.--Subparagraph (E) of section 1452(a)(1) (42 
        U.S.C. 300j-12(a)(1)) is amended--
                  (A) by striking ``except that the Administrator may 
                reserve'' and inserting ``except that--
                          ``(i) in any year in which enforcement of a 
                        new national primary drinking water standard 
                        begins, the Administrator may use the remaining 
                        amount to make grants to States whose public 
                        water systems are disproportionately affected 
                        by the new standard for the provision of 
                        assistance under subsection (d) to such public 
                        water systems;
                          ``(ii) the Administrator may reserve''; and
                  (B) by striking ``and none of the funds reallotted'' 
                and inserting ``; and
                          ``(iii) none of the funds reallotted''.
          (2) Elimination of certain provisions.--
                  (A) Section 1412(b) (42 U.S.C. 300g-1(b)) is amended 
                by striking paragraph (15).
                  (B) Section 1415 (42 U.S.C. 300g-4) is amended by 
                striking subsection (e).
          (3) Conforming amendment.--Subparagraph (B) of section 
        1414(c)(1) (42 U.S.C. 300g-3(c)(1)(B)) is amended by striking 
        ``(a)(2), or (e)'' and inserting ``or (a)(2)''.

SEC. 15. FOCUS ON LIFECYCLE COSTS.

  Section 1412(b)(4) (42 U.S.C. 300g-1(b)(4)) is amended--
          (1) in subparagraph (D), by striking ``taking cost into 
        consideration'' and inserting ``taking lifecycle costs, 
        including maintenance, replacement, and avoided costs, into 
        consideration''; and
          (2) in the matter preceding subclause (I) in subparagraph 
        (E)(ii), by inserting ``taking lifecycle costs, including 
        maintenance, replacement, and avoided costs, into 
        consideration,'' after ``as determined by the Administrator in 
        consultation with the States,''.

SEC. 16. ENFORCEMENT.

  (a) Advice and Technical Assistance.--Section 1414 (42 U.S.C. 300g-3) 
is amended--
          (1) in the matter following clause (ii) in subsection 
        (a)(1)(A), by striking ``and provide such advice and technical 
        assistance to such State and public water system as may be 
        appropriate to bring the system into compliance with the 
        requirement by the earliest feasible time''; and
          (2) in subsection (a)(1), by adding at the end the following:
  ``(C) At any time after providing notice of a violation to a State 
and public water system under subparagraph (A), the Administrator may 
provide such advice and technical assistance to such State and public 
water system as may be appropriate to bring the system into compliance 
with the requirement by the earliest feasible time. In deciding whether 
the provision of advice or technical assistance is appropriate, the 
Administrator may consider the potential for the violation to result in 
serious adverse effects to human health, whether the violation has 
occurred continuously or frequently, and the effectiveness of past 
technical assistance efforts.''.
  (b) Additional Inspections.--
          (1) In general.--Section 1414 (42 U.S.C. 300g-3) is amended--
                  (A) by redesignating subsections (d) through (i) as 
                subsections (e) through (j), respectively; and
                  (B) by inserting after subsection (c) the following:
  ``(d) Additional Inspections Following Violations.--
          ``(1) In general.--The Administrator shall, by regulation, 
        and after consultation with the States, prescribe the number, 
        frequency, and type of additional inspections to follow any 
        violation requiring notice under subsection (c). Regulations 
        under this subsection shall--
                  ``(A) take into account--
                          ``(i) differences between violations that are 
                        intermittent or infrequent and violations that 
                        are continuous or frequent;
                          ``(ii) the seriousness of any potential 
                        adverse health effects that may be involved; 
                        and
                          ``(iii) the number and severity of past 
                        violations by the public water system; and
                  ``(B) specify procedures for inspections following a 
                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.
          ``(2) State primary enforcement responsibility.--Nothing in 
        this subsection shall be construed or applied to modify the 
        requirements of section 1413.''.
          (2) Conforming amendments.--
                  (A) Subsections (a)(1)(B), (a)(2)(A), and (b) of 
                section 1414 (42 U.S.C. 300g-3) are amended by striking 
                ``subsection (g)'' each place it appears and inserting 
                ``subsection (h)''.
                  (B) Section 1448(a) is amended by striking 
                ``1414(g)(3)(B)'' and inserting ``1414(h)(3)(B)''.

SEC. 17. REDUCING LEAD IN DRINKING WATER.

  (a) In General.--Section 1417 (42 U.S.C. 300g-6) is amended--
          (1) by adding at the end of subsection (a) the following:
          ``(4) Exemptions.--The prohibitions in paragraphs (1) and (3) 
        shall not apply to--
                  ``(A) pipes, pipe fittings, plumbing fittings, or 
                fixtures, including backflow preventers, that are used 
                exclusively for nonpotable services such as 
                manufacturing, industrial processing, irrigation, 
                outdoor watering, or any other uses where the water is 
                not anticipated to be used for human consumption; or
                  ``(B) toilets, bidets, urinals, fill valves, 
                flushometer valves, tub fillers, shower valves, service 
                saddles, or water distribution main gate valves that 
                are 2 inches in diameter or larger.''; and
          (2) by amending subsection (d) to read as follows:
  ``(d) Definition of Lead Free.--
          ``(1) In general.--For the purposes of this section, the term 
        `lead free' means--
                  ``(A) not containing more than 0.2 percent lead when 
                used with respect to solder and flux; and
                  ``(B) not more than a weighted average of 0.25 
                percent lead when used with respect to the wetted 
                surfaces of pipes, pipe fittings, plumbing fittings, 
                and fixtures.
          ``(2) Calculation.--The weighted average lead content of a 
        pipe, pipe fitting, plumbing fitting, or fixture shall be 
        calculated by using the following formula: For each wetted 
        component, the percentage of lead in the component shall be 
        multiplied by the ratio of the wetted surface area of that 
        component to the total wetted surface area of the entire 
        product to arrive at the weighted percentage of lead of the 
        component. The weighted percentage of lead of each wetted 
        component shall be added together, and the sum of these 
        weighted percentages shall constitute the weighted average lead 
        content of the product. The lead content of the material used 
        to produce wetted components shall be used to determine 
        compliance with paragraph (1)(B). For lead content of materials 
        that are provided as a range, the maximum content of the range 
        shall be used.''.
  (b) Effective Date.--The provisions of subsections (a)(4) and (d) of 
section 1417 of the Safe Drinking Water Act, as added by this section, 
apply beginning on the day that is 36 months after the date of the 
enactment of this Act.

SEC. 18. ENDOCRINE DISRUPTOR SCREENING PROGRAM.

  Section 1457 (42 U.S.C. 300j-17) is amended to read as follows:
                ``endocrine disruptor screening program
  ``Sec. 1457.  (a) Testing of Substances.--
          ``(1) In general.--In carrying out the screening program 
        under section 408(p) of the Federal Food, Drug, and Cosmetic 
        Act, the Administrator shall provide for the testing of 
        substances described in paragraph (2) in addition to the 
        substances described in section 408(p)(3) of such Act.
          ``(2) Covered substances.--A substance is subject to testing 
        pursuant to paragraph (1) if--
                  ``(A) the substance may be found in sources of 
                drinking water; and
                  ``(B) the Administrator determines that a substantial 
                population may be exposed to such substance.
          ``(3) Substances already subject to testing.--Notwithstanding 
        paragraph (2), a substance is not subject to testing pursuant 
        to paragraph (1) if--
                  ``(A) the substance is already subject to evaluation 
                determined by the Administrator to be equivalent to 
                testing pursuant to paragraph (1); or
                  ``(B) the Administrator has already determined the 
                effect of the substance on the endocrine system.
          ``(4) Substances derived from degradation or metabolism of 
        another substance.--If a substance subject to testing pursuant 
        to paragraph (1) (in this paragraph referred to as the `covered 
        substance') is derived from the degradation or metabolism of 
        another substance, or is used in or generated by the 
        manufacture of another substance, the Administrator shall 
        provide for such testing of the covered substance by the 
        importer or manufacturer of the other substance.
  ``(b) Identification and Testing of Endocrine Disrupting Substances 
That May Be in Drinking Water.--
          ``(1) Identification.--Not later than 1 year after the date 
        of the enactment of the Assistance, Quality, and Affordability 
        Act of 2010, after opportunity for comment, the Administrator 
        shall publish--
                  ``(A) a list of no fewer than 100 substances for 
                testing pursuant to subsection (a)(1) (in accordance 
                with the schedule specified in paragraph (3)); and
                  ``(B) a plan for the identification of additional 
                substances for testing pursuant to subsection (a)(1), 
                and a schedule for issuing test orders for all such 
                additional substances by not later than 10 years after 
                the date of the enactment of the Assistance, Quality, 
                and Affordability Act of 2010, with the goal of 
                testing, at a minimum and consistent with subsection 
                (a), all substances that have been placed on the 
                Drinking Water Preliminary Contaminant Candidate List 
                published pursuant to section 1412(b)(1)(B)(i).
        In publishing the plan and schedule required by subparagraph 
        (B), the Administrator shall obtain advice and direction from 
        the Science Advisory Board.
          ``(2) Prioritization; considerations.--In selecting 
        substances for listing under paragraph (1)(A) or identification 
        pursuant to the plan under paragraph (1)(B), the 
        Administrator--
                  ``(A) shall prioritize the selection of substances 
                that pose the greatest public health concern, using the 
                best available science and taking into consideration 
                (among other factors of public health concern) the 
                effect of such substances on 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, and 
                other subpopulations) that are identifiable as being at 
                greater risk of adverse health effects due to exposure 
                to substances in drinking water; and
                  ``(B) shall take into consideration--
                          ``(i) available information on the extent of 
                        potential public exposures to the substances 
                        through drinking water; and
                          ``(ii) the Drinking Water Preliminary 
                        Contaminant Candidate List published pursuant 
                        to section 1412(b)(1)(B)(i).
          ``(3) Schedule.--After publication of the list under 
        paragraph (1)(A), the Administrator shall issue test orders 
        for--
                  ``(A) at least 25 substances on the list by the end 
                of each year during the 4-year period following the 
                date of the enactment of the Assistance, Quality, and 
                Affordability Act of 2010; and
                  ``(B) all substances on the list by the end of such 
                4-year period.
  ``(c) Testing Protocol Process.--
          ``(1) In general.--Not later than 2 years after the date of 
        the enactment of the Assistance, Quality, and Affordability Act 
        of 2010, the Administrator shall, after opportunity for 
        comment, and after obtaining advice and direction from the 
        Science Advisory Board, publish guidance on developing and 
        updating protocols for testing of possible endocrine disruptors 
        that may be found in sources of drinking water. The guidance 
        shall specify--
                  ``(A) the manner in which the Administrator will 
                evaluate and, where necessary, revise such protocols;
                  ``(B) the manner in which the Administrator will 
                determine when testing of substances will be required; 
                and
                  ``(C) the procedures by which other scientifically 
                relevant information can be used in lieu of some or all 
                of the information that otherwise would be collected 
                pursuant to testing under section 408(p) of the Federal 
                Food, Drug, and Cosmetic Act.
          ``(2) Minimum contents.--The procedures specified pursuant to 
        paragraph (1)(C) shall ensure that the Administrator may use 
        information that is prepared or provided by any person 
        (including a registrant, manufacturer, or importer of a 
        substance for which testing is required, and any other entity) 
        and shall apply equally with respect to any such person.
          ``(3) Amendments.--The Administrator may, after opportunity 
        for comment, and after obtaining advice and direction from the 
        Science Advisory Board, amend any guidance published pursuant 
        to this subsection.
  ``(d) Revision of Testing Protocols.--Not later than 2 years after 
the date of the enactment of the Assistance, Quality, and Affordability 
Act of 2010, the Administrator shall, after opportunity for comment, 
determine whether sufficient scientific information has been developed 
to warrant updating the screening protocols developed under section 
408(p) of the Federal Food, Drug, and Cosmetic Act for substances that 
may be found in sources of drinking water. Not later than 5 years after 
the date of the enactment of the Assistance, Quality, and Affordability 
Act of 2010 and every 3 years thereafter, the Administrator shall 
determine, consistent with the guidance published under subsection (c), 
whether to revise screening protocols under such section for substances 
that may be found in sources of drinking water based on significant 
improvements in the sensitivity, accuracy, reliability, 
reproducibility, or efficiency of such protocols, or a reduction in the 
number of animals required to conduct such protocols. Whenever the 
Administrator revises such a protocol, the Administrator shall also 
determine, after obtaining advice and direction from the Science 
Advisory Board, whether any substance that has already been subjected 
to testing should be tested using the revised protocol.
  ``(e) Valid Scientific Data.--Any testing protocols pursuant to this 
section shall be designed to produce scientific results that are based 
on--
          ``(1) verifiable measurements with sufficiently small error 
        rates;
          ``(2) well-controlled measurements whose interpretation is 
        not confounded by extraneous influences; and
          ``(3) results that are repeatable by independent scientists.
  ``(f) Results of Testing.--
          ``(1) Publication of data evaluation records.--Not later than 
        6 months after receipt of testing results for a substance that 
        may be found in sources of drinking water, the Administrator 
        shall prepare and, consistent with subsection (g), publish data 
        evaluation records for such results in a publicly searchable 
        database.
          ``(2) Administrative action.--Not later than 6 months after 
        receipt of test results that determine the endocrine-related 
        effects caused by a substance that may be found in sources of 
        drinking water, the Administrator shall--
                  ``(A) determine whether to take action related to the 
                substance pursuant to the agency's statutory authority; 
                and
                  ``(B) consistent with subsection (g), publish such 
                determination in a publicly searchable database.
        Nothing in this section shall be construed to affect the 
        Administrator's authority to take action under other provisions 
        of law.
          ``(3) Structured evaluation framework.--To assess the overall 
        weight of the evidence and relevance to human health of results 
        of testing for substances that may be found in sources of 
        drinking water, the Administrator shall develop and use a 
        structured evaluative framework consisting of science-based 
        criteria, consistent with the protection of public health, for 
        systematically evaluating endocrine mode of action and for 
        determining data relevance, quality, and reliability.
  ``(g) Public Database.--Beginning not later than 180 days after the 
date of the enactment of the Assistance, Quality, and Affordability Act 
of 2010 and consistent with section 552 of title 5, United States Code, 
the Administrator shall publish, in electronic format, a publicly 
searchable database that contains information regarding the testing 
program. Not later than 30 days after the date on which the information 
becomes available, the Administrator shall ensure that, at a minimum, 
the database--
          ``(1) identifies the substances selected for testing under 
        the program; and
          ``(2) includes the documents and information pertaining to 
        the status of testing activities for each such substance, 
        including test orders, deadlines for submission, the 
        Environmental Protection Agency's data evaluation records, any 
        scientific information on which the Administrator based actions 
        under subsection (f), the Administrator's determination under 
        subsection (f) on whether action will be taken under other 
        statutory authority, and the summary of chemical test results.
  ``(h) Petition for Inclusion of a Substance in the Program.--
          ``(1) In general.--Any person may submit a petition to the 
        Administrator to add a substance to the list under subsection 
        (b)(1)(A) or identify a substance pursuant to the plan under 
        subsection (b)(1)(B).
          ``(2) Specification of facts.--Any petition under paragraph 
        (1) shall specify the facts that are claimed to establish that 
        an action described in paragraph (1) is warranted.
          ``(3) Administrative action.--Not later than 90 days after 
        the filing of a petition described under paragraph (1), the 
        Administrator shall determine whether the petition has 
        established that an action described in paragraph (1) is 
        warranted and shall grant or deny the petition. If the 
        Administrator grants such petition, the Administrator shall 
        promptly add the substance to the list under subsection 
        (b)(1)(A) or identify the substance pursuant to the plan under 
        subsection (b)(1)(B), as applicable. If the Administrator 
        denies the petition, the Administrator shall publish the 
        reasons for such denial in the Federal Register.
  ``(i) Coordination With Other Federal Agencies.--After the 
Administrator--
          ``(1) requires testing of a substance that may be found in 
        sources of drinking water, or
          ``(2) based in whole or in part on the results of testing of 
        such a substance, takes action related to the substance 
        pursuant to the agency's statutory authority,
the Administrator shall give notice of such testing or action to 
Federal agencies which are authorized by other provisions of law to 
regulate the substance or products, materials, medications, processes, 
or practices that use the substance.
  ``(j) Reporting Requirement.--Not later than 1 year after the date of 
the enactment of the Assistance, Quality, and Affordability Act of 2010 
and every 3 years thereafter, the Administrator shall provide a report 
to the Committee on Energy and Commerce of the House of Representatives 
and the Committee on Environment and Public Works of the Senate that 
describes--
          ``(1) progress made in identifying and testing potential 
        endocrine disruptors as well as plans for future activities;
          ``(2) any change in screening or testing methodology and 
        evaluation or criteria for evaluating scientifically relevant 
        information;
          ``(3) actions taken to ensure communication and sharing of 
        scientific information with other Federal agencies and the 
        public; and
          ``(4) any deviations from the plan or schedule published 
        under subsection (b)(1)(B) as well as the reasons therefor.
  ``(k) Testing Consortia, Compensation, and Compliance.--
          ``(1) In general.--Any person required by the Administrator 
        to conduct testing of an endocrine disruptor that may be found 
        in sources of drinking water may--
                  ``(A) submit, on its own, data in response to an 
                order for such testing; and
                  ``(B) form (on a voluntary basis) a consortium in 
                order to satisfy the requirements of one or more orders 
                for such testing.
          ``(2) Reliance on consortium submissions.--Each member of a 
        consortium described in paragraph (1)(B) shall have full rights 
        to rely on all submissions of the consortium to satisfy the 
        requirements of any order for testing, but continues to be 
        individually subject to such requirements.
          ``(3) Sharing of costs.--
                  ``(A) In general.--Each member of a consortium 
                described in paragraph (1)(B) shall share the 
                applicable costs according to appropriate arrangements 
                established by the consortium members.
                  ``(B) Binding offer.--Whenever, to satisfy the 
                requirements of one or more orders for testing, any 
                person offers to form or join a consortium described in 
                paragraph (1)(B), or offers compensation to a person 
                that has already submitted data to the Administrator 
                satisfying an order for testing, such offer shall 
                constitute a binding offer to share an appropriate 
                portion of the applicable costs.
                  ``(C) Applicable costs.--In this subsection, the term 
                `applicable costs' includes the costs--
                          ``(i) incurred to generate and report 
                        information to comply with an order for 
                        testing; or
                          ``(ii) associated with the organization and 
                        administration of the consortium.
          ``(4) Dispute resolution.--
                  ``(A) In general.--In the event of any dispute about 
                an appropriate share or a fair method of determining an 
                appropriate share of applicable costs of the testing 
                requirements in a test order, any person involved in 
                the dispute may initiate binding arbitration 
                proceedings by requesting the Federal Mediation and 
                Conciliation Service to appoint an arbitrator from the 
                roster of arbitrators maintained by such Service or a 
                hearing with a regional office of the American 
                Arbitration Association. A copy of the request shall be 
                sent to each person from whom the requesting party 
                seeks compensation or who seeks compensation from that 
                party.
                  ``(B) No review of findings and determination.--The 
                findings and determination of the arbitrator in a 
                dispute initiated pursuant to subparagraph (A) shall be 
                final and conclusive, and no official or court of the 
                United States shall have power or jurisdiction to 
                review any such findings and determination, except in 
                the case of fraud, misrepresentation, or other 
                misconduct by one of the parties to the arbitration or 
                by the arbitrator.
                  ``(C) Payment of fee and expenses.--The parties to 
                arbitration initiated pursuant to subparagraph (A) 
                shall share equally in the payment of the fee and 
                expenses of the arbitrator.
          ``(5) Enforcement.--If the Administrator determines that any 
        person seeking to comply with an order for testing by relying 
        on a submission made by a consortium or an original data 
        submitter has failed to make an offer in accordance with 
        paragraph (3)(B), to participate in an arbitration proceeding 
        under paragraph (4), or to comply with the terms of an 
        agreement or arbitration decision concerning sharing of 
        applicable costs under paragraph (3), that person is deemed to 
        have failed to comply with an order under subparagraph (A) of 
        section 408(p)(5) of the Federal Food, Drug, and Cosmetic Act 
        for purposes of subparagraphs (B) and (C) of such section.
  ``(l) Definitions.--In this section:
          ``(1) The term `endocrine disruptor' means an exogenous agent 
        or mixture of agents that interferes or alters the synthesis, 
        secretion, transport, metabolism, binding action, or 
        elimination of hormones that are present in the body and are 
        responsible for homeostasis, growth, neurological signaling, 
        reproduction and developmental process, or any other effect 
        that the Administrator has designated as an `endocrine effect' 
        pursuant to section 408(p)(1) of the Federal Food, Drug, and 
        Cosmetic Act.
          ``(2) The term `testing' means the testing of a substance 
        pursuant to the screening program under section 408(p) of the 
        Federal Food, Drug, and Cosmetic Act, including a test of a 
        substance that is intended to identify substances that have the 
        potential to interact with the endocrine system or that is 
        intended to determine the endocrine-related effects caused by 
        such substance and obtain information about effects at various 
        doses.
  ``(m) Authorization of Appropriations.--To carry out this section, 
there is authorized to be appropriated $5,000,000 for each of fiscal 
years 2011 through 2015.''.

SEC. 19. PRESENCE OF PHARMACEUTICALS AND PERSONAL CARE PRODUCTS IN 
                    SOURCES OF DRINKING WATER.

  Subsection (a) of section 1442 (42 U.S.C. 300j-1) is amended by 
adding at the end the following:
  ``(11) Presence of Pharmaceuticals and Personal Care Products in 
Sources of Drinking Water.--
          ``(A) Study.--The Administrator shall carry out a study on 
        the presence of pharmaceuticals and personal care products in 
        sources of drinking water, which shall--
                  ``(i) identify pharmaceuticals and personal care 
                products that have been detected in sources of drinking 
                water and the levels at which such pharmaceuticals and 
                personal care products have been detected;
                  ``(ii) identify the sources of pharmaceuticals and 
                personal care products in sources of drinking water, 
                including point sources and nonpoint sources of 
                pharmaceutical and personal care products;
                  ``(iii) identify the effects of such products on 
                humans, the environment, and the safety of drinking 
                water; and
                  ``(iv) identify methods to control, limit, treat, or 
                prevent the presence of such products.
          ``(B) Consultation.--The Administrator shall conduct the 
        study described in subparagraph (A) in consultation with the 
        Secretary of Health and Human Services (acting through the 
        Commissioner of Food and Drugs), the Director of the United 
        States Geological Survey, the heads of other appropriate 
        Federal agencies (including the National Institute of 
        Environmental Health Sciences), and other interested 
        stakeholders (including manufacturers of pharmaceuticals and 
        personal care products and consumer groups and advocates).
          ``(C) Report.--Not later than 2 years after the date of the 
        enactment of this paragraph, the Administrator shall submit to 
        the Congress a report on the results of the study carried out 
        under this paragraph.
          ``(D) Definitions.--In this paragraph:
                  ``(i) The term `personal care product' has the 
                meaning given the term `cosmetic' in section 201 of the 
                Federal Food, Drug, and Cosmetic Act.
                  ``(ii) The term `pharmaceutical' has the meaning 
                given the term `drug' in section 201 of the Federal 
                Food, Drug, and Cosmetic Act.''.

SEC. 20. ELECTRONIC REPORTING OF COMPLIANCE MONITORING DATA TO THE 
                    ADMINISTRATOR.

  (a) Requirement.--Section 1414 (42 U.S.C. 300g-3), as amended, is 
further amended by adding at the end the following:
  ``(k) Electronic Reporting of Compliance Monitoring Data to the 
Administrator.--The Administrator shall by rule establish requirements 
for--
          ``(1) electronic submission by public water systems of all 
        compliance monitoring data--
                  ``(A) to the Administrator; or
                  ``(B) with respect to public water systems in a State 
                which has primary enforcement responsibility under 
                section 1413, to such State; and
          ``(2) electronic submission to the Administrator by each 
        State which has primary enforcement responsibility under 
        section 1413 of all compliance monitoring data submitted to 
        such State by public water systems pursuant to paragraph 
        (1)(B).''.
  (b) Final Rule.--Not later than 12 months after the date of the 
enactment of this Act, the Administrator of the Environmental 
Protection Agency shall issue a final rule to carry out section 1414(k) 
of the Safe Drinking Water Act, as added by subsection (a).

                          Purpose and Summary

    H.R. 5320 is a bill to amend the Safe Drinking Water Act 
(SDWA) to authorize increased assistance to states, water 
systems, and disadvantaged communities, encourage improved 
financial and environmental management of water systems, 
provide the Environmental Protection Agency (EPA) with 
additional tools for enforcement, reduce lead in drinking water 
fixtures and piping, and amend the Endocrine Disruptor 
Screening Program (EDSP) for chemicals in drinking water.
    The bill reauthorizes and increases the authorization 
levels for the drinking water state revolving fund (SRF) and 
technical assistance for small systems. It adds projects 
designed to improve the sustainability and long-term viability 
of water systems to the list of priorities that should inform 
state funding decisions and encourages public water systems to 
improve their managerial capacity and reduce their 
environmental impact. It provides priority for SRF funds for 
water systems serving disadvantaged communities that cannot 
afford to comply with new drinking water standards and requires 
states to provide additional assistance to water systems 
serving disadvantaged communities and struggling to comply with 
existing drinking water standards. It changes the legal 
definition of ``lead-free'' for pipes and fixtures from 8% lead 
to 0.25% lead in wetted surfaces. It increases the funding 
available to the territories for drinking water infrastructure. 
It provides additional tools for enforcement of the Safe 
Drinking Water Act by clarifying requirements for technical 
assistance and follow-up inspections and amends the Endocrine 
Disruptor Screening Program for chemicals in drinking water by 
outlining transparent procedures for requiring testing and 
updating methods.

                  Background and Need for Legislation

    In 1996, amendments to the Safe Drinking Water Act 
established the state revolving fund program to finance 
drinking water infrastructure improvements. The funds are used 
to increase compliance with drinking water standards, protect 
public health, and assist the water systems most in need. To 
date, the program has helped finance more than 6,600 drinking 
water projects throughout the country, using federal funds to 
supplement and leverage investment from other sources.
    Funds from the SRF are allotted to the states based on a 
needs survey, with no state receiving less than 1% of the 
fund.\1\ Since 1996, the EPA Administrator has been authorized 
to reserve up to 0.33% of the fund for the territories. Each 
state or territory administers its fund according to an 
approved intended use plan, providing loans to public water 
systems at below-market interest rates. The priorities for 
these funds under existing law are addressing the most serious 
risks to human health, ensuring compliance with SDWA 
requirements, and assisting systems most in need on a per 
household basis. Some states allow these funds to be used for 
preconstruction activities, to produce or capture sustainable 
energy, and to replace aging infrastructure, but the 
availability of the funding for these activities is 
inconsistent.
---------------------------------------------------------------------------
    \1\42 U.S.C. 300j-12.
---------------------------------------------------------------------------
    Public water systems in the United States serve more than 
272 million people, and, according to the most recent needs 
survey carried out by EPA, are facing infrastructure bills with 
the potential to climb to $334 billion over the next 17 years 
as our existing infrastructure ages.\2\ According to the 
American Water Works Association, cast iron pipes dating to the 
late 1800s have an average life expectancy of about 120 
years.\3\ Because of changing materials and manufacturing 
techniques, pipes laid in the 1920s have an average life 
expectancy of about 100 years, and pipes laid in the post-World 
War II boom can be expected to last about 75 years.\4\ EPA's 
``Gap Analysis,'' performed in 2002, predicted that by 2020, 
44% of our drinking water pipe network will be classified as 
either ``poor,'' ``very poor,'' or--disturbingly--``life 
elapsed.''\5\ The drinking water SRF provides an important 
funding source to help meet these infrastructure needs.
---------------------------------------------------------------------------
    \2\United States Environmental Protection Agency, Drinking Water 
Infrastructure Needs Survey and Assessment: Fourth Report to Congress, 
(Feb. 2009).
    \3\ American Water Works Association. Reinvesting in Drinking Water 
Structure: Dawn of the Replacement Era. Denver, CO: AWWA (May 2001).
    \4\ Id.
    \5\ United States Environmental Protection Agency, Clean Water and 
Drinking Water Infrastructure Gap Analysis, EPA-816-R-02-020 (Sept. 
2002).
---------------------------------------------------------------------------
    Infrastructure investment also encourages job creation. The 
U.S. Conference of Mayors has estimated that, for every million 
dollars spent on water infrastructure, 8.7 construction jobs 
are created, and each of those construction jobs creates 3.68 
additional jobs.

                          Legislative History

    The drinking water state revolving fund was created by the 
Safe Drinking Water Act Amendments of 1996 to finance projects 
necessary for protection of public health and compliance with 
drinking water standards.\6\ In 1997, appropriations for the 
drinking water SRF were $1.275 billion, and by 1999, more than 
100 projects had been completed using SRF funds. By 2007, more 
than 3,500 projects had been completed with SRF funds.\7\
---------------------------------------------------------------------------
    \6\ P.L. 104-182.
    \7\ United States Environmental Protection Agency, Drinking Water 
State Revolving Fund: 2007 Annual Report (Mar. 2008).
---------------------------------------------------------------------------
    The American Recovery and Reinvestment Act of 2009 (ARRA) 
directed $2 billion to states through the drinking water SRF, 
in addition to the 2009 SRF appropriation. Those funds were 
required to be obligated within one year of passage of ARRA. 
All states met that deadline and had their portion of the ARRA 
funds under contract by February 17, 2010, demonstrating the 
significant need for funds.
    ARRA included a requirement that 20% of the funds be used 
for ``green'' projects. This introduced environmental 
sustainability concerns into the SRF for the first time, and 
directed funds towards water efficiency and energy efficiency 
measures. ARRA also included a requirement for the provision of 
extra assistance to systems serving disadvantaged communities. 
Since its inception, the SRF has provided states with the 
authority to give extra assistance, in the form of extended 
loan terms, lower interest rates, or principal forgiveness to 
disadvantaged communities. Until ARRA, such assistance was 
completely discretionary.
    The 1996 amendments to the SDWA also created a technical 
assistance grant program to assist small systems. That 
provision does not include priority criteria for the selection 
of grant applications, and no competitive grants have ever been 
awarded under that authority.
    Since 1986, SDWA has prohibited the installation or repair 
of plumbing providing water for human consumption that does not 
meet the statutory definition of ``lead free''.\8\ The 1996 
amendments additionally prohibited the introduction into 
commerce of any pipe or plumbing fitting or fixture that does 
not meet the definition. At all times since 1986, the 
definition of ``lead free'' under SDWA for pipes and pipe 
fittings has been 8% lead.\9\
---------------------------------------------------------------------------
    \8\42 U.S.C. 300g-6.
    \9\42 U.S.C. 300g-6(d).
---------------------------------------------------------------------------
    The Endocrine Disruptor Screening Program was also created 
in 1996 by provisions in the SDWA amendments and provisions in 
the Food Quality Protection Act (FQPA).\10\ Under the EDSP, EPA 
is required to test all pesticides that may come into contact 
with food for their ability to interfere with the body's 
hormonal system. This program also provides EPA discretionary 
authority to test substances that might be found in drinking 
water for their ability to interfere with the body's hormonal 
system.
---------------------------------------------------------------------------
    \10\P.L. 104-170.
---------------------------------------------------------------------------
    Upon issuance of a test order by EPA, chemical 
manufacturers are responsible for screening a chemical to 
determine its potential to produce effects in humans that mimic 
or interfere with hormone action in the body. The FQPA 
authorizes EPA to take appropriate action to protect public 
health under existing statutory authority if substances are 
found to have endocrine effects in humans.
    The selection of testing protocols and the chemicals to 
test first were not finalized until October 2009, 11 years 
after the program's official establishment. Between October 
2009 and February 2010, EPA issued test orders for 67 pesticide 
chemicals. EPA has never exercised its discretionary authority 
to issue test orders for non-pesticide chemicals found in 
sources of drinking water.
    Reps. Henry A. Waxman (D-CA) and Edward J. Markey (D-MA) 
released proposed legislative text on May 10, 2010, to 
reauthorize the Safe Drinking Water Act state revolving fund. 
The legislative language was the focus of a hearing held by the 
Subcommittee on Energy and Environment on May 13, 2010. At this 
hearing, witnesses representing rural and metropolitan water 
systems, and state administrators testified on the SRF-related 
portions of the legislation. The Subcommittee also received 
testimony on the provisions related to the EDSP from Sarah 
Janssen, representing the Natural Resources Defense Council, 
and Terry Quill, of Quill Law Group. Cynthia Dougherty, 
Director of EPA's Office of Ground Water and Drinking Water, 
offered testimony on all provisions of the bill.

                        Committee Consideration

    H.R. 5320, the ``Assistance, Quality, and Affordability Act 
of 2010'', was introduced by Chairmen Waxman and Markey on May 
18, 2010, and referred to the Committee on Energy and Commerce. 
H.R. 5320 was then referred to the Subcommittee on Energy and 
Environment on May 18, 2010, and the Subcommittee met in open 
markup session and considered the bill on May 19, 2010. 
Subsequently, the Subcommittee agreed to favorably forward H.R. 
5320 to the full Committee, amended, by a roll call vote of 18 
yeas to 13 nays.
    On May 26, 2010, the Committee on Energy and Commerce met 
in open markup session to consider H.R. 5320, as approved by 
the Subcommittee. Subsequently, the Committee agreed to order 
H.R. 5320 favorably reported to the House, amended, by a roll 
call vote of 45 yeas and 1 nay.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list each record vote 
on the motion to report legislation and amendments thereto. The 
Committee agreed to a motion by Mr. Waxman ordering H.R. 5320 
favorably reported to the House, amended, by a record vote of 
45 yeas and 1 nay. The following is the record vote taken 
during Committee consideration, including the names of those 
Members voting for and against:


            Committee Oversight Findings and Recommendations

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the findings and 
recommendations of the Committee are reflected in the 
descriptive portions of this report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    Regarding compliance with clause 3(c)(2) of rule XIII of 
the Rules of the House of Representatives, the Committee adopts 
as its own the estimate prepared by the Director of the 
Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, H.R. 5320 contains the following 
general performance goals, and objectives, including outcome 
related goals and objectives authorized. The purpose of this 
legislation is to amend the Safe Drinking Water Act to 
reauthorize the drinking water state revolving fund and for 
other purposes, including:
     Adding projects designed to improve sustainability 
and long term viability to the list of priorities that should 
inform state funding decisions under the SRF.
     Encouraging public water systems to improve their 
managerial capacity and reduce their environmental impact.
     Ensuring that technical assistance funds for small 
water systems are awarded through a competitive process to 
nonprofits providing the types of technical assistance 
preferred by small communities.
     Providing priority for SRF funds to water systems 
serving disadvantaged communities that cannot afford to comply 
with new drinking water standards.
     Requiring states to reserve funding for water 
systems serving disadvantaged communities that have been unable 
to comply with existing drinking water standards.
     Amending the Endocrine Disruptor Screening Program 
for chemicals in drinking water by outlining transparent 
procedures for requiring testing and updating methods.
     Changing the legal definition of ``lead-free'' for 
pipes and fixtures from 8% lead to 0.25% lead in wetted 
surfaces.
     Providing additional tools for enforcement of the 
Safe Drinking Water Act by clarifying requirements for 
technical assistance and follow up inspections.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
constitutional authority for H.R. 5320 is provided in Article 
I, section 8, clauses 1, 3, and 18 of the Constitution of the 
United States.

                  Earmarks and Tax and Tariff Benefits

    H.R. 5320 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI of the Rules of the House of 
Representatives.

                      Advisory Committee Statement

    No advisory committees were created by H.R. 5320 within the 
meaning of section 5 U.S.C. App., 5(b) of the Federal Advisory 
Committee Act.

             Applicability of Law to the Legislative Branch

    The Committee finds that H.R. 5320 does not relate to the 
terms and conditions of employment or access to public services 
or accommodations within the meaning of section 102(b)(3) of 
the Congressional Accountability Act of 1985.

                       Federal Mandates Statement

    The Committee adopts as its own the estimates of federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandate Reform 
Act.

                        Committee Cost Estimate

    Pursuant to clause 3(d) of rule XIII of the Rules of the 
House of Representatives, the Committee adopts as its own the 
cost estimate on H.R. 5320 prepared by the Director of the 
Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate on 
H.R. 5320 provided by the Congressional Budget Office pursuant 
to section 402 of the Congressional Budget Act of 1974:

                                                     June 11, 2010.
Hon. Henry A. Waxman,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5320, the 
Assistance, Quality, and Affordability Act of 2010.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susanne S. 
Mehlman.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 5320--Assistance, Quality, and Affordability Act of 2010

    Summary: H.R. 5320 would authorize the appropriation of 
nearly $5 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 
over the 2011-2015 period. This legislation also would 
authorize the appropriation of $5 million annually over the 
next five years to support EPA's Endocrine Disruptor Screening 
program. CBO estimates that implementing this legislation would 
cost about $3.5 billion over the next five years, assuming 
appropriation of the authorized amounts. Remaining amounts 
would be spent after 2015.
    The Joint Committee on Taxation (JCT) estimates that 
enacting the bill would increase the use of tax-exempt bonds by 
states, thus reducing revenues by $337 million over the next 10 
years. Pay-as-you-go procedures apply because enacting the 
legislation would affect revenues.
    H.R. 5320 would impose intergovernmental and private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
CBO estimates that the aggregate cost of the intergovernmental 
mandates would fall below the annual threshold established in 
UMRA ($70 million in 2010, adjusted annually for inflation). 
Based on information from industry sources, CBO estimates that 
the aggregate cost of private-sector mandates would probably 
exceed the annual threshold established in UMRA for the private 
sector ($141 million in 2010, adjusted annually for inflation).
    Estimated cost to the Federal Government: For this 
estimate, CBO assumes that the bill will be enacted near the 
beginning of fiscal year 2011, that the full amounts authorized 
will be appropriated for each year, and that outlays will 
follow the historical patterns of spending for existing 
programs. Components of the estimated costs are described 
below.

                                                   TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 5320
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             By fiscal year, in millions of dollars--
                                         ---------------------------------------------------------------------------------------------------------------
                                            2011     2012     2013     2014     2015     2016     2017     2018     2019     2020   2011-2015  2011-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization Level.....................    1,425    1,625    1,825       25       25        0        0        0        0        0     4,925      4,925
Estimated Outlays.......................       66      392      867    1,209    1,057      627      277      120       61       33     3,591      4,709

                                                                   CHANGES IN REVENUES

Estimated Revenuesab....................        *       -1       -6      -15      -29      -44      -55      -61      -63      -64       -51      -337
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding. * = revenue loss of less than $500,000.
\a\Estimate provided by the Joint Committee on Taxation.
\b\Negative numbers indicate a reduction in revenues and an increase in the deficit.

                           BASIS OF ESTIMATE

Revenues

    The JCT expects that some of the funds authorized in H.R. 
5320 would be used by states to leverage additional funds by 
issuing tax-exempt bonds. The JCT estimates that issuing 
additional tax-exempt bonds would reduce federal revenues by 
about $337 million over the next 10 years.\11\
---------------------------------------------------------------------------
    \11\CBO estimates that federal revenues would be reduced by $22 
million over the 2010-2014 period and by $274 million over the 2010-
2019 period.
---------------------------------------------------------------------------

Spending subject to appropriation

    This legislation would authorize appropriations totaling 
nearly $5 billion over the next five years for EPA's water 
infrastructure and grant programs and to support EPA's 
Endocrine Disruptor Screening program. Amounts authorized to be 
appropriated for individual programs are shown in Table 2.

                TABLE 2.--AMOUNTS AUTHORIZED TO BE APPROPRIATED FOR EPA PROGRAMS UNDER H.R. 5320
----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal year, in millions of dollars--
                                                         -------------------------------------------------------
                                                            2011     2012     2013     2014     2015   2011-2015
----------------------------------------------------------------------------------------------------------------
Safe Drinking Water SRF Grants..........................    1,400    1,600    1,800        0        0     4,800
Grants for Small Public Water Systems...................       20       20       20       20       20       100
Endocrine Disruptor Screening Program...................        5        5        5        5        5        25
                                                         -------------------------------------------------------
    Total Authorization Level...........................    1,425    1,625    1,825       25       25    4,925
----------------------------------------------------------------------------------------------------------------
Note: SRF = state revolving fund; EPA = Environmental Protection Agency.

    The bill would authorize the appropriation of $4.8 billion 
over the 2011-2015 period for EPA to provide capitalization 
grants for the State Revolving Fund program for safe drinking 
water. In 2010, this program received an appropriation of about 
$1.4 billion. (In addition, the American Recovery and 
Reinvestment Act of 2009 provided $2 billion for this program). 
States use such grants along with their own funds to make low-
interest loans to communities to build or improve drinking 
water facilities. Indian tribes also use such grants 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 and changing the formulas used to allocate grant 
money among the states and tribes.
    This bill also would authorize the appropriation of about 
$100 million over the 2011-2015 period for EPA to make grants 
to small public water systems to address the cost of complying 
with drinking water regulations and $5 million annually over 
the same period to support EPA's Endocrine Disruptor Screening 
program, which tests for certain substances in drinking water.
    Pay-as-you-go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The changes in revenues that are subject to those 
pay-as-you-go procedures are shown in the following table.


         CBO ESTIMATE OF PAY-AS-YOU GO EFFECTS FOR H.R. 5320, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON ENERGY AND COMMERCE ON MAY 26, 2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              By fiscal year, in millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2010    2011    2012    2013    2014    2015    2016    2017    2018    2019    2020   2010-2015  2010-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET INCREASE IN THE DEFICIT

Statutory Pay-As-You-Go Impact............       0       0       1       6      15      29      44      55      61      63      64        51        337
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: H.R. 5320 
would impose intergovernmental and private-sector mandates as 
defined in UMRA. CBO estimates that the aggregate cost of the 
intergovernmental mandates would fall below the annual 
threshold established in UMRA ($70 million in 2010, adjusted 
annually for inflation). Based on information from industry 
sources, CBO estimates that the aggregate cost of private-
sector mandates would probably exceed the annual threshold 
established in UMRA for the private sector ($141 million in 
2010, adjusted annually for inflation).

                                MANDATES

    Lead-Free Plumbing. The bill would modify the definition of 
``lead free'' under the Safe Drinking Water Act to reduce the 
amount of lead allowed in plumbing products. The new definition 
would apply to pipes, fittings, or fixtures used to provide 
drinking water that are sold after the bill's enactment. 
Plumbing products used and sold in the United States would have 
to meet the new standard within three years of enactment.
    The cost of the mandate would be the additional costs to 
manufacturers, importers, or users associated with producing or 
acquiring compliant products. Based on information from 
industry sources, CBO expects that some manufacturers would 
already be in compliance with the new standard because of 
existing standards in some states. However, information from 
those sources suggests that the incremental cost of 
manufacturing or importing such products would total hundreds 
of millions of dollars to the private sector in at least some 
of the first five years the mandate is in effect. Some of those 
costs could be passed through to end users, including public 
entities. While the additional costs to state, local, and 
tribal entities could be significant, CBO estimates that those 
costs would total less than the annual threshold established in 
UMRA for intergovernmental mandates.
    Reporting Requirements. The bill would require public water 
systems (including both public and private entities) to submit 
monitoring data electronically. CBO estimates that the cost to 
submit such information electronically would be minimal.

                             OTHER IMPACTS

    The bill would provide capitalization grants to states to 
make loans to public water systems for infrastructure 
improvements relating to drinking water. Any costs to those 
entities related to the capitalization grants would result from 
complying with conditions of assistance.
    Estimate prepared by: Federal Spending: Susanne S. Mehlman; 
Federal Revenues: Mark Booth; Impact on State, Local, and 
Tribal Governments: Ryan Miller; Impact on the Private Sector: 
Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

             Section-by-Section Analysis of the Legislation


Section 1. Short title; table of contents; references

    This Act may be cited as the ``Assistance, Quality, and 
Affordability Act of 2010''. The table of contents of this Act 
is provided in this section. This section also provides that, 
unless otherwise specified, wherever in this Act an amendment 
is expressed in terms of an amendment to a section or other 
provision, it is referring to a section or other provision of 
the Safe Drinking Water Act (42 U.S.C. 300f et. seq.).

Section 2. Technical assistance for small public water systems

    This section amends the technical assistance provisions of 
the Safe Drinking Water Act (SDWA) to ensure that funds are 
awarded through a competitive process to the most qualified 
non-profits, to help small public water systems comply with 
SDWA requirements and protect public health.

Section 3. Prevailing wages

    This section requires that laborers and mechanics employed 
in connection with a construction project financed pursuant to 
the Safe Drinking Water Act, including through funds from a 
state revolving fund, are paid at a rate not less than the 
prevailing wage in the area.

Section 4. Use of funds

    This section amends the list of activities for which funds 
from the drinking water SRF may be used, to clarify that 
preconstruction activities, rehabilitation and replacement of 
aging infrastructure, and production or capture of sustainable 
energy are eligible for funding through the revolving funds. 
This section also codifies the existing practice of using funds 
for issuance of bonds.

Section 5. Requirements for use of American materials

    This section requires that water systems purchase iron, 
steel, and manufactured goods that have been produced in the 
United States for use in projects funded through the SRF, 
unless the required goods are not produced in the United 
States, the purchase of other goods is in the public interest, 
or making the purchase will increase the overall cost of the 
project by more than 25%. This section also provides the 
Administrator the authority to waive these provisions.

Section 6. Data on variances, exemptions, and persistent violations

    This section amends the list of items that must be included 
by states in their intended use plans. Specifically, this 
section requires state intended use plans to include a list of 
all of that state's water systems that have an exemption for a 
variance for any drinking water standard under SDWA, 
particularly those water systems that are in persistent 
violation of contaminant or treatment requirements under SDWA.

Section 7. Assistance for restructuring

    This section adds a new definition to the Safe Drinking 
Water Act. The Committee does not intend this definition to 
imply a preference for privatization.

Section 8. Priority and weight of applications

    This section amends the provisions describing the SRF and 
the procedures for prioritizing applications for funds from the 
SRF.
    This section adds an additional priority for the use of 
funds from the SRF. Existing law includes three priorities: 
addressing the most serious risks to human health, ensuring 
compliance with SDWA requirements, and assisting systems most 
in need on a per household basis. This amendment adds 
consideration of sustainability, by prioritizing projects that 
increase a system's ability to provide safe, affordable water 
for years to come. This will allow projects that anticipate 
significant needs and offer improvements that will benefit a 
system for many years to receive funding before public health 
concerns become acute.
    Additionally, and separate from the overall priority 
scheme, this section makes clear that SRF funds should be 
available for systems serving disadvantaged communities and 
facing unaffordable capital costs to come into compliance with 
a new national primary drinking water standard.
    This section also establishes a system for giving greater 
weight to applications from systems that have taken measures to 
improve their management and financial stability, efficiency, 
and environmental impact. Individual states may select 
qualifying measures in their Intended Use Plans, and this 
section provides several examples of measures that could 
qualify. The inclusion of restructuring option reviews among 
listed examples is intended to encourage water systems to 
undertake such reviews, but not to imply that restructuring is 
required.
    In order to ensure that small systems have the ability to 
evaluate and undertake qualifying measures, this section allows 
the Administrator to provide guidance, software, and tools to 
those systems. This guidance will supplement the assistance 
available under the technical assistance provisions of SDWA.

Section 9. Disadvantaged communities

    This section amends the disadvantaged community provisions 
of SDWA that allows states to provide additional assistance to 
public water systems serving disadvantaged communities. This 
section will, for the first time, require states with a 
demonstrated need to provide assistance through the 
disadvantaged community provisions of SDWA. Any state that 
reports exemptions or persistent violations by one or more 
systems serving disadvantaged communities will be required to 
reserve at least 6% of its SRF funds for assistance to those 
systems.
    The section would require states establishing definitions 
of ``disadvantaged communities'' after enactment to solicit 
public comment on and consider the methodology for identifying 
disadvantaged communities, the factors affecting identified 
affordability criteria, and approaches to use authorities under 
the SRF to help identified communities. The Committee does not 
intend for states with definitions in place when the AQUA Act 
is enacted to be required to revise their definitions.
    Additionally, this section will make disadvantaged 
community assistance available to public water systems whose 
service areas include a disadvantaged portion, and will require 
that the assistance is provided to that portion. Many water 
systems serve multiple communities, which may have different 
infrastructure needs and economic indicators. As systems 
consider restructuring, and possibly consolidation, the number 
of such systems may increase. This section will encourage 
projects to benefit disadvantaged areas served by larger 
systems, and address the concern that metropolitan systems have 
often been unable to qualify for disadvantaged community 
assistance, even for projects that directly benefit an area 
that would meet the state definition.

Section 10. Administration of State loan funds

    This section increases the portion of SRF funds that states 
may use for administration of their SRF programs. It also 
codifies the current practice of allowing states to transfer a 
portion of funds between the drinking water SRF and the Clean 
Water Act's state revolving funds.

Section 11. State loan funds for American Samoa, Northern Mariana 
        Islands, Guam, and the Virgin Islands

    This section increases the portion of SRF funds that may be 
reserved by the Administrator for infrastructure projects in 
the territories from 0.33% to 1% of the fund.

Section 12. Authorization of appropriations

    This section authorizes appropriations at $1.4 billion in 
fiscal year 2011, $1.6 billion in fiscal year 2012, and $1.8 
billion in fiscal year 2013.

Section 13. Negotiation of contracts

    This section requires that contracts to be carried out 
using federal funds provided through the SRF program be 
negotiated in keeping with federal qualifications-based 
requirements, or equivalent state or local requirements. This 
section applies only to communities of 10,000 or more, and 
leaves discretion to the states to determine what state or 
local requirements are equivalent.

Section 14. Affordability of new standards

    In promulgating new standards, the Administrator will now 
be required to regularly update and supplement the list of 
technologies that are affordable for different classes of 
systems to drive innovation and provide information for small 
systems.
    Any state finding that a new standard poses affordability 
issues for disadvantaged communities in that state will be 
required to prioritize projects for those systems under the 
SRF. Any state that is disproportionately affected by a new 
standard will be eligible, under this section, for additional 
funds from the SRF program to ensure that prioritizing projects 
for the new system does not limit funding for other projects.
    These funding priorities will replace the current small 
system variance mechanism. This section is designed to direct 
SRF funds to help make new standards affordable for all systems 
and customers.

Section 15. Focus on lifecycle costs

    This section will require the Administrator to look at the 
lifecycle costs, including maintenance, replacement, and 
avoided costs, in determining what technologies are feasible 
for new standards.

Section 16. Enforcement

    This section will amend the enforcement provisions of the 
Safe Drinking Water Act to ensure that technical assistance is 
provided to bring systems into compliance where deemed 
appropriate by the Administrator, and require the Administrator 
to promulgate regulations concerning the number, frequency, and 
types of inspections that should be conducted to ensure water 
systems with violations achieve and maintain compliance.

Section 17. Reducing lead in drinking water

    This section amends existing provisions in section 1417 of 
the Safe Drinking Water Act related to lead fixtures and to 
change the legal definition of ``lead-free'' from 8% lead to 
0.25% lead in wetted surfaces.
    The existing provisions on lead fixtures include a 
requirement for the Administrator to provide technical 
information and assistance to qualified third party certifiers 
for the development of voluntary standards and testing 
protocols for lead leaching. Nothing in this Act is intended to 
amend or abridge that direction.
    The Committee is aware that the Administrator has relied on 
third party certification in other programs, such as 
WaterSense, and nothing in this Act is intended to bar the 
Administrator from making use of third party certification for 
lead content.
    Importantly, this section provides 36 months for this new 
provision to take effect once this bill becomes enacted. The 
Committee believes, based on the assurances of manufacturers 
and distributors of faucets that would meet this standard, that 
this time frame is appropriate to provide adequate time for the 
infrastructure necessary to machine compliant piping and 
faucets for the national market.

Section 18. Endocrine disruptor screening program

    The Committee is interested in knowing more about the 
possible presence and potential ramifications of endocrine 
disrupting chemicals in drinking water and any impact they may 
have on the health of persons. This section amends section 1457 
of the Safe Drinking Water Act to update its screening and 
testing program for this specific area and thereby help inform 
EPA's efforts to protect public health.
    The Committee is aware that the Endocrine Disrupter 
Screening Program (EDSP) currently utilizes a two-tiered 
screening and testing protocol. The ``screen,'' known as Tier 
1, is a battery of assays intended to screen substances to 
identify whether they have the potential to interact with the 
endocrine system. A showing that a substance may interact with 
an endocrine system does not mean that the substance will cause 
adverse effects in humans or ecological systems. The program's 
Tier 2 ``testing'' is a combination of assays intended to 
determine what, if any, endocrine-related adverse effects are 
caused by each chemical substance or mixture and obtain 
information about these effects at various doses.
    In choosing its definition of ``testing'' the Committee 
included both the elements of screening and testing described 
above.
    The Committee, however, chose not to create statutory 
definitions of ``Tier 1'' and ``Tier 2'' as experts believe 
that future advances in technology could result in screening 
and testing being conducted simultaneously, with the potential 
for these tiers to be collapsed into one combined set of 
assays. The definition chosen by the Committee reflects the 
possibility that future advances in technology could result in 
newer and more effective screening and testing methodologies 
that may not fit neatly into today's definitions.\12\ It is the 
Committee's expectation that until such time when existing 
protocols are revised, EPA will continue to utilize the EDSP's 
existing policies and procedures.
---------------------------------------------------------------------------
    \12\See, e.g., Testimony of Jim Jones, Deputy Assistant 
Administrator, Office of Prevention, Pesticides and Toxic Substances, 
Environmental Protection Agency, Subcommittee on Energy and 
Environment, Hearing on Endocrine Disrupting Chemicals in Drinking 
Water: Risks to Human Health and the Environment (Feb. 25, 2010) 
(discussing advancements in methodologies).
---------------------------------------------------------------------------
    The Committee did not limit the scope of endocrine-related 
effects in the definitions in this section to those effects 
determined to be ``adverse,'' though it is the understanding of 
the Committee that any examination of adverse effects would be 
included in the Tier 2 testing protocols developed. The 
Committee made this decision in recognition of the fact that 
the EDSP should be an effort to understand all effects of 
substances on the endocrine system. The Committee expects that 
regulatory decision-making regarding endocrine disrupting 
substances will continue to be based on the presence of adverse 
effects, using legislatively mandated risk-based criteria. 
Nothing in the definitions of endocrine disruptor or testing, 
contained in this section, is intended to alter any such 
criteria.
    The Committee is aware that there are numerous sources of 
scientific information regarding endocrine disruption, 
including results of studies generated by industry, academia 
and government institutions. The Administrator should take into 
consideration all sources of information when determining if 
substances need to be screened under this program, and should 
make use of best available science in prioritizing selection of 
substances. If the Administrator determines that a substance 
has already undergone equivalent screening or testing or has 
sufficient information that would render results of the program 
to be duplicative, EPA does not need to run the substance 
through the EDSP. The Administrator may also determine that 
data available for a substance would suffice for the 
``screening'' portion of the program, and in this instance the 
Administrator may choose to only run the substance through the 
``testing'' assays that would determine the endocrine-related 
effects at various doses.
    The Committee is aware that EPA recently issued test orders 
for 67 substances under the EDSP. The Committee is also aware 
that EPA is currently engaged in the identification of 100 
additional substances for testing that this section of the bill 
requires EPA to identify, and that EPA plans, in the near 
future, to issue test orders for the testing of these 100 
substances. Nothing in this section is intended to require EPA 
to restart, repeat, or delay its ongoing work.

Section 19. Presence of pharmaceuticals and personal care products in 
        sources of drinking water

    This section requires the Administrator to carry out a 
study on the presence of pharmaceuticals and personal care 
products in sources of drinking water.

Section 20. Electronic reporting of compliance monitoring data to the 
        Administrator

    This section requires the Administrator to promulgate a 
rule, no later than 12 months after the date of enactment of 
the AQUA Act, to require electronic submission of compliance 
monitoring data by water systems and to U.S. EPA or states with 
primary enforcement authority and further from states with 
primary enforcement authority to U.S. EPA.

                       Explanation of Amendments

    Two amendments were adopted during Committee consideration 
of H.R. 5320. The amendment offered by Representative Rush 
directs the Administrator to issue a regulation within 12 
months of enactment to require electronic submission of 
monitoring and compliance data by water systems. The amendment 
offered by Representatives Sutton, Murphy of Connecticut, 
Braley, Doyle, and Murphy of Pennsylvania requires water 
systems receiving funds from the SRF to purchase iron, steel, 
and manufactured goods produced in the United States.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, 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):

                        SAFE DRINKING WATER ACT


               TITLE XIV--SAFETY OF PUBLIC WATER SYSTEMS


                              SHORT TITLE

  Sec. 1400. This title may be cited as the ``Safe Drinking 
Water Act''.

                          Part A--Definitions


                              DEFINITIONS

  Sec. 1401. For purposes of this title:
          (1) * * *

           *       *       *       *       *       *       *

          (17) Restructuring.--The term ``restructuring'' means 
        changes in operations (including ownership, management, 
        cooperative partnerships, joint purchasing 
        arrangements, consolidation, and alternative water 
        supply).

Part B--Public Water Systems

           *       *       *       *       *       *       *


                  NATIONAL DRINKING WATER REGULATIONS

  Sec. 1412. (a) * * *
  (b) Standards.--
          (1) * * *

           *       *       *       *       *       *       *

          (4) Goals and standards.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (D) Definition of feasible.--For the purposes 
                of this subsection, the term ``feasible'' means 
                feasible with the use of the best technology, 
                treatment techniques and other means which the 
                Administrator finds, after examination for 
                efficacy under field conditions and not solely 
                under laboratory conditions, are available 
                ([taking cost into consideration] taking 
                lifecycle costs, including maintenance, 
                replacement, and avoided costs, into 
                consideration). For the purpose of this 
                paragraph, granular activated carbon is 
                feasible for the control of synthetic organic 
                chemicals, and any technology, treatment 
                technique, or other means found to be the best 
                available for the control of synthetic organic 
                chemicals must be at least as effective in 
                controlling synthetic organic chemicals as 
                granular activated carbon.
                  (E) Feasible technologies.--
                          (i) * * *
                          (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, taking lifecycle costs, 
                        including maintenance, replacement, and 
                        avoided costs, into consideration, for 
                        small public water systems serving--
                                  (I) * * *

           *       *       *       *       *       *       *

                        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. If no technology, treatment 
                        technique, or other means is included 
                        in a list under this subparagraph for a 
                        category of small public water systems, 
                        the Administrator shall periodically 
                        review the list and supplement it when 
                        new technology becomes available.

           *       *       *       *       *       *       *

          [(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.]

           *       *       *       *       *       *       *


               ENFORCEMENT OF DRINKING WATER REGULATIONS

  Sec. 1414. (a)(1)(A) Whenever the Administrator finds during 
a period during which a State has primary enforcement 
responsibility for public water systems (within the meaning of 
section 1413(a)) that any public water system--
          (i) * * *

           *       *       *       *       *       *       *

he shall so notify the State and such public water system [and 
provide such advice and technical assistance to such State and 
public water system as may be appropriate to bring the system 
into compliance with the requirement by the earliest feasible 
time].
  (B) If, beyond the thirtieth day after the Administrator's 
notification under subparagraph (A), the State has not 
commenced appropriate enforcement action, the Administrator 
shall issue an order under [subsection (g)] subsection (h) 
requiring the public water system to comply with such 
applicable requirement or the Administrator shall commence a 
civil action under subsection (b).
  (C) At any time after providing notice of a violation to a 
State and public water system under subparagraph (A), the 
Administrator may provide such advice and technical assistance 
to such State and public water system as may be appropriate to 
bring the system into compliance with the requirement by the 
earliest feasible time. In deciding whether the provision of 
advice or technical assistance is appropriate, the 
Administrator may consider the potential for the violation to 
result in serious adverse effects to human health, whether the 
violation has occurred continuously or frequently, and the 
effectiveness of past technical assistance efforts.
  (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) * * *

           *       *       *       *       *       *       *

        the Administrator shall issue an order under 
        [subsection (g)] subsection (h) requiring the public 
        water system to comply with the requirement, or 
        commence a civil action under subsection (b).
  (b) The Administrator may bring a civil action in the 
appropriate United States district court to require compliance 
with any applicable requirement, with an order issued under 
[subsection (g)] subsection (h), or with any schedule or other 
requirement imposed pursuant to a variance or exemption granted 
under section 1415 or 1416 if--
          (1) * * *

           *       *       *       *       *       *       *

  (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) * * *
                  (B) If the public water system is subject to 
                a variance granted under subsection (a)(1)(A), 
                [(a)(2), or (e)] or (a)(2) 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) * * *

           *       *       *       *       *       *       *

  (d) Additional Inspections Following Violations.--
          (1) In general.--The Administrator shall, by 
        regulation, and after consultation with the States, 
        prescribe the number, frequency, and type of additional 
        inspections to follow any violation requiring notice 
        under subsection (c). Regulations under this subsection 
        shall--
                  (A) take into account--
                          (i) differences between violations 
                        that are intermittent or infrequent and 
                        violations that are continuous or 
                        frequent;
                          (ii) the seriousness of any potential 
                        adverse health effects that may be 
                        involved; and
                          (iii) the number and severity of past 
                        violations by the public water system; 
                        and
                  (B) specify procedures for inspections 
                following a 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.
          (2) State primary enforcement responsibility.--
        Nothing in this subsection shall be construed or 
        applied to modify the requirements of section 1413.
  [(d)] (e) Whenever, on the basis of information available to 
him, the Administrator finds that within a reasonable time 
after national secondary drinking water regulations have been 
promulgated, one or more public water systems in a State do not 
comply with such secondary regulations, and that such 
noncompliance appears to result from a failure of such State to 
take reasonable action to assure that public water systems 
throughout such State meet such secondary regulations, he shall 
so notify the State.
  [(e)] (f) Nothing in this title shall diminish any authority 
of a State or political subdivision to adopt or enforce any law 
or regulation respecting drinking water regulations or public 
water systems, but no such law or regulation shall relieve any 
person of any requirement otherwise applicable under this 
title.
  [(f)] (g) If the Administrator makes a finding of 
noncompliance (described in subparagraph (A) or (B) of 
subsection (a)(1)) with respect to a public water system in a 
State which has primary enforcement responsibility, the 
Administrator may, for the purpose of assisting that State in 
carrying out such responsibility and upon the petition of such 
State or public water system or persons served by such system, 
hold, after appropriate notice, public hearings for the purpose 
of gathering information from technical or other experts, 
Federal, State, or other public officials, representatives of 
such public water system, persons served by such system, and 
other interested persons on--
          (1) * * *

           *       *       *       *       *       *       *

  [(g)] (h)(1) * * *

           *       *       *       *       *       *       *

  [(h)] (i) Consolidation Incentive.--
          (1) * * *

           *       *       *       *       *       *       *

  [(i)] (j) Definition of Applicable Requirement.--In this 
section, the term ``applicable requirement'' means--
          (1) * * *

           *       *       *       *       *       *       *

  (k) Electronic Reporting of Compliance Monitoring Data to the 
Administrator.--The Administrator shall by rule establish 
requirements for--
          (1) electronic submission by public water systems of 
        all compliance monitoring data--
                  (A) to the Administrator; or
                  (B) with respect to public water systems in a 
                State which has primary enforcement 
                responsibility under section 1413, to such 
                State; and
          (2) electronic submission to the Administrator by 
        each State which has primary enforcement responsibility 
        under section 1413 of all compliance monitoring data 
        submitted to such State by public water systems 
        pursuant to paragraph (1)(B).

                               VARIANCES

  Sec. 1415. (a) * * *

           *       *       *       *       *       *       *

  [(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.]

           *       *       *       *       *       *       *


           PROHIBITION ON USE OF LEAD PIPES, SOLDER, AND FLUX

  Sec. 1417. (a) In General.--
          (1) * * *

           *       *       *       *       *       *       *

          (4) Exemptions.--The prohibitions in paragraphs (1) 
        and (3) shall not apply to--
                  (A) pipes, pipe fittings, plumbing fittings, 
                or fixtures, including backflow preventers, 
                that are used exclusively for nonpotable 
                services such as manufacturing, industrial 
                processing, irrigation, outdoor watering, or 
                any other uses where the water is not 
                anticipated to be used for human consumption; 
                or
                  (B) toilets, bidets, urinals, fill valves, 
                flushometer valves, tub fillers, shower valves, 
                service saddles, or water distribution main 
                gate valves that are 2 inches in diameter or 
                larger.

           *       *       *       *       *       *       *

  [(d) Definition of Lead Free.--For purposes of this section, 
the term ``lead free''--
          [(1) when used with respect to solders and flux 
        refers to solders and flux containing not more than 0.2 
        percent lead;
          [(2) when used with respect to pipes and pipe 
        fittings refers to pipes and pipe fittings containing 
        not more than 8.0 percent lead; and
          [(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).]
  (d) Definition of Lead Free.--
          (1) In general.--For the purposes of this section, 
        the term ``lead free'' means--
                  (A) not containing more than 0.2 percent lead 
                when used with respect to solder and flux; and
                  (B) not more than a weighted average of 0.25 
                percent lead when used with respect to the 
                wetted surfaces of pipes, pipe fittings, 
                plumbing fittings, and fixtures.
          (2) Calculation.--The weighted average lead content 
        of a pipe, pipe fitting, plumbing fitting, or fixture 
        shall be calculated by using the following formula: For 
        each wetted component, the percentage of lead in the 
        component shall be multiplied by the ratio of the 
        wetted surface area of that component to the total 
        wetted surface area of the entire product to arrive at 
        the weighted percentage of lead of the component. The 
        weighted percentage of lead of each wetted component 
        shall be added together, and the sum of these weighted 
        percentages shall constitute the weighted average lead 
        content of the product. The lead content of the 
        material used to produce wetted components shall be 
        used to determine compliance with paragraph (1)(B). For 
        lead content of materials that are provided as a range, 
        the maximum content of the range shall be used.

           *       *       *       *       *       *       *


Part E--General Provisions

           *       *       *       *       *       *       *


   RESEARCH, TECHNICAL ASSISTANCE, INFORMATION, TRAINING OF PERSONNEL

  Sec. 1442. (a)(1) * * *

           *       *       *       *       *       *       *

  (11) Presence of Pharmaceuticals and Personal Care Products 
in Sources of Drinking Water.--
          (A) Study.--The Administrator shall carry out a study 
        on the presence of pharmaceuticals and personal care 
        products in sources of drinking water, which shall--
                  (i) identify pharmaceuticals and personal 
                care products that have been detected in 
                sources of drinking water and the levels at 
                which such pharmaceuticals and personal care 
                products have been detected;
                  (ii) identify the sources of pharmaceuticals 
                and personal care products in sources of 
                drinking water, including point sources and 
                nonpoint sources of pharmaceutical and personal 
                care products;
                  (iii) identify the effects of such products 
                on humans, the environment, and the safety of 
                drinking water; and
                  (iv) identify methods to control, limit, 
                treat, or prevent the presence of such 
                products.
          (B) Consultation.--The Administrator shall conduct 
        the study described in subparagraph (A) in consultation 
        with the Secretary of Health and Human Services (acting 
        through the Commissioner of Food and Drugs), the 
        Director of the United States Geological Survey, the 
        heads of other appropriate Federal agencies (including 
        the National Institute of Environmental Health 
        Sciences), and other interested stakeholders (including 
        manufacturers of pharmaceuticals and personal care 
        products and consumer groups and advocates).
          (C) Report.--Not later than 2 years after the date of 
        the enactment of this paragraph, the Administrator 
        shall submit to the Congress a report on the results of 
        the study carried out under this paragraph.
          (D) Definitions.--In this paragraph:
                  (i) The term ``personal care product'' has 
                the meaning given the term ``cosmetic'' in 
                section 201 of the Federal Food, Drug, and 
                Cosmetic Act.
                  (ii) The term ``pharmaceutical'' has the 
                meaning given the term ``drug'' in section 201 
                of the Federal Food, Drug, and Cosmetic Act.

           *       *       *       *       *       *       *

  [(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.]
  (e) Technical Assistance.--
          (1) In general.--The Administrator, directly or 
        through grants or cooperative agreements with nonprofit 
        organizations, 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.
          (2) Types of assistance.--Technical assistance under 
        paragraph (1) may include onsite technical assistance 
        and compliance assistance; circuit-rider and multi-
        State regional technical assistance programs; training; 
        assistance with implementing source water protection 
        programs; assistance with increasing water or energy 
        efficiency; assistance with designing, installing, or 
        operating sustainable energy infrastructure to produce 
        or capture sustainable energy on site or through water 
        transport; assistance with developing technical, 
        financial, and managerial capacity; assistance with 
        long-term infrastructure planning; assistance with 
        applying for funds from a State loan fund under section 
        1452; and assistance with implementation of monitoring 
        plans, rules, regulations, and water security 
        enhancements.
          (3) Priority.--In providing assistance under this 
        subsection, the Administrator shall give priority to 
        assistance that will promote compliance with national 
        primary drinking water standards, public health 
        protection, and long-term sustainability of small 
        public water systems. In awarding grants and 
        cooperative assistance under paragraph (1) to nonprofit 
        organizations, the Administrator shall (subject to the 
        preceding sentence) give greater weight to nonprofit 
        organizations that, as determined by the Administrator, 
        are most qualified and most effective and that, as 
        determined by the Administrator using information where 
        available, are providing the types of technical 
        assistance that are preferred by small public water 
        systems.
          (4) Competitive procedures.--It is the presumption of 
        Congress that any award of assistance under this 
        subsection will be awarded using competitive procedures 
        based on merit. If assistance is awarded under this 
        subsection using procedures other than competitive 
        procedures, the Administrator shall submit to the 
        Congress, within 90 days of the award decision, a 
        report explaining why competitive procedures were not 
        used.
          (5) Funding.--
                  (A) Authorization of appropriations.--There 
                is authorized to be appropriated to carry out 
                this subsection $20,000,000 for each of fiscal 
                years 2011 through 2015.
                  (B) Prohibition on earmarks.--No funds made 
                available under this subsection may be used to 
                carry out a provision or report language 
                included primarily at the request of a Member, 
                Delegate, Resident Commissioner, or Senator 
                providing, authorizing, or recommending a 
                specific amount of discretionary budget 
                authority, credit authority, or other spending 
                authority for a contract, loan, loan guarantee, 
                grant, loan authority, or other expenditure 
                with or to an entity, or targeted to a specific 
                State, locality, or congressional district, 
                other than through a statutory or 
                administrative formula-driven or competitive 
                award process.
                  (C) 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.
                  (D) 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.

           *       *       *       *       *       *       *


                            JUDICIAL REVIEW

  Sec. 1448. (a) A petition for review of--
          (1) * * *

           *       *       *       *       *       *       *

Any such petition shall be filed within the 45-day period 
beginning on the date of the promulgation of the regulation or 
any other final Agency action with respect to which review is 
sought or on the date of the determination with respect to 
which review is sought, and may be filed after the expiration 
of such 45-day period if the petition is based solely on 
grounds arising after the expiration of such period. Action of 
the Administrator with respect to which review could have been 
obtained under this subsection shall not be subject to judicial 
review in any civil or criminal proceeding for enforcement or 
in any civil action to enjoin enforcement. In any petition 
concerning the assessment of a civil penalty pursuant to 
section [1414(g)(3)(B)] 1414(h)(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.

           *       *       *       *       *       *       *


                           GENERAL PROVISIONS

  Sec. 1450. (a) * * *

           *       *       *       *       *       *       *

  [(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 in connection with 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 
        title (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.

           *       *       *       *       *       *       *


                       STATE REVOLVING LOAN FUNDS

  Sec. 1452. (a) General Authority.--
          (1) Grants to states to establish state loan funds.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (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] except that--
                          (i) in any year in which enforcement 
                        of a new national primary drinking 
                        water standard begins, the 
                        Administrator may use the remaining 
                        amount to make grants to States whose 
                        public water systems are 
                        disproportionately affected by the new 
                        standard for the provision of 
                        assistance under subsection (d) to such 
                        public water systems;
                          (ii) 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]; 
                        and
                          (iii) 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.

           *       *       *       *       *       *       *

          (2) Use of funds.--[Except as otherwise]
                  (A) In general.--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]
                  (B) Permissible expenditures.--Financial 
                assistance under this section may be used by a 
                public water system only for expenditures 
                [(not] (including expenditures for planning, 
                design, siting, and associated preconstruction 
                activities, for replacing or rehabilitating 
                aging treatment, storage, or distribution 
                facilities of public water systems, or for 
                producing or capturing sustainable energy on 
                site or through the transportation of water 
                through the public water system, 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 title. [The funds 
                may also be used]
                  (C) Sale of bonds.--If a State issues revenue 
                or general obligation bonds to provide all or 
                part of the State contribution required by 
                subsection (e), and the proceeds of the sale of 
                such bonds will be deposited into the State 
                loan fund--
                          (i) financial assistance made 
                        available under this section may be 
                        used by the State as security for 
                        payment of the principal and interest 
                        on such bonds; and
                          (ii) interest earnings of the State 
                        loan fund may be used by the State as 
                        revenue for payment of the principal 
                        and interest on such bonds.
                  (D) Certain loans.--Financial assistance 
                under this section 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]
                  (E) Limitation.--Financial assistance under 
                this section 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]
                  (F) Set-aside.--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) * * *
                  (B) Restructuring.--A public water system 
                described in subparagraph (A) may receive 
                assistance under this section if--
                          (i) * * *
                          (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)] 
                        restructuring 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.

           *       *       *       *       *       *       *

          (4) Requirements for use of american materials.--
                  (A) In general.--Notwithstanding any other 
                provision of law, none of the funds made 
                available by a State loan fund as authorized 
                under this section may be used for a project 
                for the construction, alteration, maintenance, 
                or repair of a public water system unless the 
                steel, iron, and manufactured goods used in 
                such project are produced in the United States.
                  (B) Exceptions.--Subparagraph (A) shall not 
                apply in any case in which the Administrator 
                (in consultation with the Governor of the 
                State) finds that--
                          (i) applying subparagraph (A) would 
                        be inconsistent with the public 
                        interest;
                          (ii) steel, iron, and manufactured 
                        goods are not produced in the United 
                        States in sufficient and reasonably 
                        available quantities and of a 
                        satisfactory quality; or
                          (iii) inclusion of steel, iron, and 
                        manufactured goods produced in the 
                        United States will increase the cost of 
                        the overall project by more than 25 
                        percent.
                  (C) Public notification and written 
                justification for waiver.--If the Administrator 
                determines that it is necessary to waive the 
                application of subparagraph (A) based on a 
                finding under subparagraph (B), the 
                Administrator shall--
                          (i) not less than 15 days prior to 
                        waiving application of subparagraph 
                        (A), provide public notice and the 
                        opportunity to comment on the 
                        Administrator's intent to issue such 
                        waiver; and
                          (ii) upon issuing such waiver, 
                        publish in the Federal Register a 
                        detailed written justification as to 
                        why the provision is being waived.
                  (D) Consistency with international 
                agreements.--This paragraph shall be applied in 
                a manner consistent with United States 
                obligations under international agreements.
  (b) Intended Use Plans.--
          (1) * * *
          (2) Contents.--An intended use plan shall include--
                  (A) * * *
                  (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[.]; and
                  (D) a list of all water systems within the 
                State that have in effect an exemption or 
                variance for any national primary drinking 
                water regulation or that are in persistent 
                violation of the requirements for any maximum 
                contaminant level or treatment technique under 
                a national primary drinking water regulation, 
                including identification of--
                          (i) the national primary drinking 
                        water regulation in question for each 
                        such exemption, variance, or violation; 
                        and
                          (ii) the date on which the exemption 
                        or variance came into effect or the 
                        violation began.
          (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) * * *
                          (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[.]; and
                          (iv) improve the ability of systems 
                        to protect human health and comply with 
                        the requirements of this title 
                        affordably in the future.
                  (B) Affordability of new standards.--For any 
                year in which enforcement begins for a new 
                national primary drinking water standard, each 
                State that has entered into a capitalization 
                agreement pursuant to this section shall 
                evaluate whether capital improvements required 
                to meet the standard are affordable for 
                disadvantaged communities in the State. If the 
                State finds that such capital improvements do 
                not meet affordability criteria for 
                disadvantaged communities in the State, the 
                State's intended use plan shall provide that 
                priority for the use of funds for such year be 
                given to public water systems affected by the 
                standard and serving disadvantaged communities.
                  (C) Weight given to applications.--After 
                determining priority under subparagraphs (A) 
                and (B), an intended use plan shall provide 
                that the State will give greater weight to an 
                application for assistance if the application 
                contains--
                          (i) a description of measures 
                        undertaken by the system to improve the 
                        management and financial stability of 
                        the system, which may include--
                                  (I) an inventory of assets, 
                                including a description of the 
                                condition of the assets;
                                  (II) a schedule for 
                                replacement of assets;
                                  (III) an audit of water 
                                losses;
                                  (IV) 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; and
                                  (V) a review of options for 
                                restructuring;
                          (ii) a demonstration of consistency 
                        with State, regional, and municipal 
                        watershed plans;
                          (iii) a water conservation plan 
                        consistent with guidelines developed 
                        for such plans by the Administrator 
                        under section 1455(a); and
                          (iv) a description of measures 
                        undertaken by the system to improve the 
                        efficiency of the system or reduce the 
                        system's environmental impact, which 
                        may include--
                                  (I) water efficiency or 
                                conservation, including the 
                                rehabilitation or replacement 
                                of existing leaking pipes;
                                  (II) use of reclaimed water;
                                  (III) actions to increase 
                                energy efficiency;
                                  (IV) actions to generate or 
                                capture sustainable energy on 
                                site or through the 
                                transportation of water through 
                                the system;
                                  (V) actions to protect source 
                                water;
                                  (VI) actions to mitigate or 
                                prevent corrosion, including 
                                design, selection of materials, 
                                selection of coating, and 
                                cathodic protection; and
                                  (VII) actions to reduce 
                                disinfection byproducts.
                  [(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.
                  (E) Assistance to increase compliance.--A 
                State's intended use plan shall provide that, 
                of the funds received by the State through a 
                capitalization grant under this section for a 
                fiscal year, the State will, to the extent that 
                there are sufficient eligible project 
                applications, reserve not less than 6 percent 
                to be spent on assistance under subsection (d) 
                to public water systems included in the State's 
                most recent list under paragraph (2)(D).

           *       *       *       *       *       *       *

  (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). Such additional subsidization shall 
        directly and primarily benefit the disadvantaged 
        community.

           *       *       *       *       *       *       *

          (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. Each State that 
        has entered into a capitalization agreement pursuant to 
        this section shall, in establishing affordability 
        criteria, consider, solicit public comment on, and 
        include as appropriate--
                  (A) the methods or criteria that the State 
                will use to identify disadvantaged communities;
                  (B) a description of the institutional, 
                regulatory, financial, tax, or legal factors at 
                the Federal, State, or local level that affect 
                identified affordability criteria; and
                  (C) a description of how the State will use 
                the authorities and resources under this 
                subsection to assist communities meeting the 
                identified criteria.

           *       *       *       *       *       *       *

  (g) Administration of State Loan Funds.--
          (1) * * *
          (2) Cost of administering fund.--Each State may 
        annually use [up to 4 percent of the funds allotted to 
        the State under this section], for each fiscal year, an 
        amount that does not exceed the sum of the amount of 
        any fees collected by the State for use in covering 
        reasonable costs of administration of programs under 
        this section, regardless of the source, and an amount 
        equal to the greatest of $400,000, 1/5 of one percent 
        of the current valuation of the State loan fund, or 6 
        percent of all grant awards to the State loan fund 
        under this section for the fiscal year, 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) * * *

           *       *       *       *       *       *       *

                  (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] 4 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.

           *       *       *       *       *       *       *

          (5) Transfer of funds.--
                  (A) In general.--The Governor of a State 
                may--
                          (i) reserve for any fiscal year not 
                        more than the lesser of--
                                  (I) 33 percent of a 
                                capitalization grant made under 
                                this section; or
                                  (II) 33 percent of a 
                                capitalization grant made under 
                                section 601 of the Federal 
                                Water Pollution Control Act; 
                                and
                          (ii) add the funds so reserved to any 
                        funds provided to the State under this 
                        section or section 601 of the Federal 
                        Water Pollution Control Act.
                  (B) State matching funds.--Funds reserved 
                under this paragraph shall not be considered 
                for purposes of calculating the amount of a 
                State contribution required by subsection (e) 
                of this section or section 602(b) of the 
                Federal Water Pollution Control Act.

           *       *       *       *       *       *       *

  (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] 1 percent of the 
aggregate amount made available to carry out this section in 
that fiscal year.

           *       *       *       *       *       *       *

  [(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) $1,400,000,000 for fiscal year 2011;
                  (B) $1,600,000,000 for fiscal year 2012; and
                  (C) $1,800,000,000 for fiscal year 2013.
          (2) Availability.--Amounts made available pursuant to 
        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).

           *       *       *       *       *       *       *

  (r) Small System Guidance.--The Administrator may provide 
guidance and, as appropriate, tools, methodologies, or computer 
software, to assist small systems in undertaking measures to 
improve the management, financial stability, and efficiency of 
the system or reduce the system's environmental impact.
  [(r)] (s) 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.
  (t) Negotiation of Contracts.--For community water systems 
serving communities with populations of more than 10,000 
individuals, a contract to be carried out using funds made 
available through 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--
          (1) a contract for architectural and engineering 
        services is negotiated under chapter 11 of title 40, 
        United States Code; or
          (2) a contract subject to an equivalent State or 
        local qualifications-based requirement (as determined 
        by the Governor of the State).

           *       *       *       *       *       *       *


                [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.]

                 ENDOCRINE DISRUPTOR SCREENING PROGRAM

  Sec. 1457. (a) Testing of Substances.--
          (1) In general.--In carrying out the screening 
        program under section 408(p) of the Federal Food, Drug, 
        and Cosmetic Act, the Administrator shall provide for 
        the testing of substances described in paragraph (2) in 
        addition to the substances described in section 
        408(p)(3) of such Act.
          (2) Covered substances.--A substance is subject to 
        testing pursuant to paragraph (1) if--
                  (A) the substance may be found in sources of 
                drinking water; and
                  (B) the Administrator determines that a 
                substantial population may be exposed to such 
                substance.
          (3) Substances already subject to testing.--
        Notwithstanding paragraph (2), a substance is not 
        subject to testing pursuant to paragraph (1) if--
                  (A) the substance is already subject to 
                evaluation determined by the Administrator to 
                be equivalent to testing pursuant to paragraph 
                (1); or
                  (B) the Administrator has already determined 
                the effect of the substance on the endocrine 
                system.
          (4) Substances derived from degradation or metabolism 
        of another substance.--If a substance subject to 
        testing pursuant to paragraph (1) (in this paragraph 
        referred to as the ``covered substance'') is derived 
        from the degradation or metabolism of another 
        substance, or is used in or generated by the 
        manufacture of another substance, the Administrator 
        shall provide for such testing of the covered substance 
        by the importer or manufacturer of the other substance.
  (b) Identification and Testing of Endocrine Disrupting 
Substances That May be in Drinking Water.--
          (1) Identification.--Not later than 1 year after the 
        date of the enactment of the Assistance, Quality, and 
        Affordability Act of 2010, after opportunity for 
        comment, the Administrator shall publish--
                  (A) a list of no fewer than 100 substances 
                for testing pursuant to subsection (a)(1) (in 
                accordance with the schedule specified in 
                paragraph (3)); and
                  (B) a plan for the identification of 
                additional substances for testing pursuant to 
                subsection (a)(1), and a schedule for issuing 
                test orders for all such additional substances 
                by not later than 10 years after the date of 
                the enactment of the Assistance, Quality, and 
                Affordability Act of 2010, with the goal of 
                testing, at a minimum and consistent with 
                subsection (a), all substances that have been 
                placed on the Drinking Water Preliminary 
                Contaminant Candidate List published pursuant 
                to section 1412(b)(1)(B)(i).
        In publishing the plan and schedule required by 
        subparagraph (B), the Administrator shall obtain advice 
        and direction from the Science Advisory Board.
          (2) Prioritization; considerations.--In selecting 
        substances for listing under paragraph (1)(A) or 
        identification pursuant to the plan under paragraph 
        (1)(B), the Administrator--
                  (A) shall prioritize the selection of 
                substances that pose the greatest public health 
                concern, using the best available science and 
                taking into consideration (among other factors 
                of public health concern) the effect of such 
                substances on 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, and other subpopulations) that are 
                identifiable as being at greater risk of 
                adverse health effects due to exposure to 
                substances in drinking water; and
                  (B) shall take into consideration--
                          (i) available information on the 
                        extent of potential public exposures to 
                        the substances through drinking water; 
                        and
                          (ii) the Drinking Water Preliminary 
                        Contaminant Candidate List published 
                        pursuant to section 1412(b)(1)(B)(i).
          (3) Schedule.--After publication of the list under 
        paragraph (1)(A), the Administrator shall issue test 
        orders for--
                  (A) at least 25 substances on the list by the 
                end of each year during the 4-year period 
                following the date of the enactment of the 
                Assistance, Quality, and Affordability Act of 
                2010; and
                  (B) all substances on the list by the end of 
                such 4-year period.
  (c) Testing Protocol Process.--
          (1) In general.--Not later than 2 years after the 
        date of the enactment of the Assistance, Quality, and 
        Affordability Act of 2010, the Administrator shall, 
        after opportunity for comment, and after obtaining 
        advice and direction from the Science Advisory Board, 
        publish guidance on developing and updating protocols 
        for testing of possible endocrine disruptors that may 
        be found in sources of drinking water. The guidance 
        shall specify--
                  (A) the manner in which the Administrator 
                will evaluate and, where necessary, revise such 
                protocols;
                  (B) the manner in which the Administrator 
                will determine when testing of substances will 
                be required; and
                  (C) the procedures by which other 
                scientifically relevant information can be used 
                in lieu of some or all of the information that 
                otherwise would be collected pursuant to 
                testing under section 408(p) of the Federal 
                Food, Drug, and Cosmetic Act.
          (2) Minimum contents.--The procedures specified 
        pursuant to paragraph (1)(C) shall ensure that the 
        Administrator may use information that is prepared or 
        provided by any person (including a registrant, 
        manufacturer, or importer of a substance for which 
        testing is required, and any other entity) and shall 
        apply equally with respect to any such person.
          (3) Amendments.--The Administrator may, after 
        opportunity for comment, and after obtaining advice and 
        direction from the Science Advisory Board, amend any 
        guidance published pursuant to this subsection.
  (d) Revision of Testing Protocols.--Not later than 2 years 
after the date of the enactment of the Assistance, Quality, and 
Affordability Act of 2010, the Administrator shall, after 
opportunity for comment, determine whether sufficient 
scientific information has been developed to warrant updating 
the screening protocols developed under section 408(p) of the 
Federal Food, Drug, and Cosmetic Act for substances that may be 
found in sources of drinking water. Not later than 5 years 
after the date of the enactment of the Assistance, Quality, and 
Affordability Act of 2010 and every 3 years thereafter, the 
Administrator shall determine, consistent with the guidance 
published under subsection (c), whether to revise screening 
protocols under such section for substances that may be found 
in sources of drinking water based on significant improvements 
in the sensitivity, accuracy, reliability, reproducibility, or 
efficiency of such protocols, or a reduction in the number of 
animals required to conduct such protocols. Whenever the 
Administrator revises such a protocol, the Administrator shall 
also determine, after obtaining advice and direction from the 
Science Advisory Board, whether any substance that has already 
been subjected to testing should be tested using the revised 
protocol.
  (e) Valid Scientific Data.--Any testing protocols pursuant to 
this section shall be designed to produce scientific results 
that are based on--
          (1) verifiable measurements with sufficiently small 
        error rates;
          (2) well-controlled measurements whose interpretation 
        is not confounded by extraneous influences; and
          (3) results that are repeatable by independent 
        scientists.
  (f) Results of Testing.--
          (1) Publication of data evaluation records.--Not 
        later than 6 months after receipt of testing results 
        for a substance that may be found in sources of 
        drinking water, the Administrator shall prepare and, 
        consistent with subsection (g), publish data evaluation 
        records for such results in a publicly searchable 
        database.
          (2) Administrative action.--Not later than 6 months 
        after receipt of test results that determine the 
        endocrine-related effects caused by a substance that 
        may be found in sources of drinking water, the 
        Administrator shall--
                  (A) determine whether to take action related 
                to the substance pursuant to the agency's 
                statutory authority; and
                  (B) consistent with subsection (g), publish 
                such determination in a publicly searchable 
                database.
        Nothing in this section shall be construed to affect 
        the Administrator's authority to take action under 
        other provisions of law.
          (3) Structured evaluation framework.--To assess the 
        overall weight of the evidence and relevance to human 
        health of results of testing for substances that may be 
        found in sources of drinking water, the Administrator 
        shall develop and use a structured evaluative framework 
        consisting of science-based criteria, consistent with 
        the protection of public health, for systematically 
        evaluating endocrine mode of action and for determining 
        data relevance, quality, and reliability.
  (g) Public Database.--Beginning not later than 180 days after 
the date of the enactment of the Assistance, Quality, and 
Affordability Act of 2010 and consistent with section 552 of 
title 5, United States Code, the Administrator shall publish, 
in electronic format, a publicly searchable database that 
contains information regarding the testing program. Not later 
than 30 days after the date on which the information becomes 
available, the Administrator shall ensure that, at a minimum, 
the database--
          (1) identifies the substances selected for testing 
        under the program; and
          (2) includes the documents and information pertaining 
        to the status of testing activities for each such 
        substance, including test orders, deadlines for 
        submission, the Environmental Protection Agency's data 
        evaluation records, any scientific information on which 
        the Administrator based actions under subsection (f), 
        the Administrator's determination under subsection (f) 
        on whether action will be taken under other statutory 
        authority, and the summary of chemical test results.
  (h) Petition for Inclusion of a Substance in the Program.--
          (1) In general.--Any person may submit a petition to 
        the Administrator to add a substance to the list under 
        subsection (b)(1)(A) or identify a substance pursuant 
        to the plan under subsection (b)(1)(B).
          (2) Specification of facts.--Any petition under 
        paragraph (1) shall specify the facts that are claimed 
        to establish that an action described in paragraph (1) 
        is warranted.
          (3) Administrative action.--Not later than 90 days 
        after the filing of a petition described under 
        paragraph (1), the Administrator shall determine 
        whether the petition has established that an action 
        described in paragraph (1) is warranted and shall grant 
        or deny the petition. If the Administrator grants such 
        petition, the Administrator shall promptly add the 
        substance to the list under subsection (b)(1)(A) or 
        identify the substance pursuant to the plan under 
        subsection (b)(1)(B), as applicable. If the 
        Administrator denies the petition, the Administrator 
        shall publish the reasons for such denial in the 
        Federal Register.
  (i) Coordination With Other Federal Agencies.--After the 
Administrator--
          (1) requires testing of a substance that may be found 
        in sources of drinking water, or
          (2) based in whole or in part on the results of 
        testing of such a substance, takes action related to 
        the substance pursuant to the agency's statutory 
        authority,
the Administrator shall give notice of such testing or action 
to Federal agencies which are authorized by other provisions of 
law to regulate the substance or products, materials, 
medications, processes, or practices that use the substance.
  (j) Reporting Requirement.--Not later than 1 year after the 
date of the enactment of the Assistance, Quality, and 
Affordability Act of 2010 and every 3 years thereafter, the 
Administrator shall provide a report to the Committee on Energy 
and Commerce of the House of Representatives and the Committee 
on Environment and Public Works of the Senate that describes--
          (1) progress made in identifying and testing 
        potential endocrine disruptors as well as plans for 
        future activities;
          (2) any change in screening or testing methodology 
        and evaluation or criteria for evaluating 
        scientifically relevant information;
          (3) actions taken to ensure communication and sharing 
        of scientific information with other Federal agencies 
        and the public; and
          (4) any deviations from the plan or schedule 
        published under subsection (b)(1)(B) as well as the 
        reasons therefor.
  (k) Testing Consortia, Compensation, and Compliance.--
          (1) In general.--Any person required by the 
        Administrator to conduct testing of an endocrine 
        disruptor that may be found in sources of drinking 
        water may--
                  (A) submit, on its own, data in response to 
                an order for such testing; and
                  (B) form (on a voluntary basis) a consortium 
                in order to satisfy the requirements of one or 
                more orders for such testing.
          (2) Reliance on consortium submissions.--Each member 
        of a consortium described in paragraph (1)(B) shall 
        have full rights to rely on all submissions of the 
        consortium to satisfy the requirements of any order for 
        testing, but continues to be individually subject to 
        such requirements.
          (3) Sharing of costs.--
                  (A) In general.--Each member of a consortium 
                described in paragraph (1)(B) shall share the 
                applicable costs according to appropriate 
                arrangements established by the consortium 
                members.
                  (B) Binding offer.--Whenever, to satisfy the 
                requirements of one or more orders for testing, 
                any person offers to form or join a consortium 
                described in paragraph (1)(B), or offers 
                compensation to a person that has already 
                submitted data to the Administrator satisfying 
                an order for testing, such offer shall 
                constitute a binding offer to share an 
                appropriate portion of the applicable costs.
                  (C) Applicable costs.--In this subsection, 
                the term ``applicable costs'' includes the 
                costs--
                          (i) incurred to generate and report 
                        information to comply with an order for 
                        testing; or
                          (ii) associated with the organization 
                        and administration of the consortium.
          (4) Dispute resolution.--
                  (A) In general.--In the event of any dispute 
                about an appropriate share or a fair method of 
                determining an appropriate share of applicable 
                costs of the testing requirements in a test 
                order, any person involved in the dispute may 
                initiate binding arbitration proceedings by 
                requesting the Federal Mediation and 
                Conciliation Service to appoint an arbitrator 
                from the roster of arbitrators maintained by 
                such Service or a hearing with a regional 
                office of the American Arbitration Association. 
                A copy of the request shall be sent to each 
                person from whom the requesting party seeks 
                compensation or who seeks compensation from 
                that party.
                  (B) No review of findings and 
                determination.--The findings and determination 
                of the arbitrator in a dispute initiated 
                pursuant to subparagraph (A) shall be final and 
                conclusive, and no official or court of the 
                United States shall have power or jurisdiction 
                to review any such findings and determination, 
                except in the case of fraud, misrepresentation, 
                or other misconduct by one of the parties to 
                the arbitration or by the arbitrator.
                  (C) Payment of fee and expenses.--The parties 
                to arbitration initiated pursuant to 
                subparagraph (A) shall share equally in the 
                payment of the fee and expenses of the 
                arbitrator.
          (5) Enforcement.--If the Administrator determines 
        that any person seeking to comply with an order for 
        testing by relying on a submission made by a consortium 
        or an original data submitter has failed to make an 
        offer in accordance with paragraph (3)(B), to 
        participate in an arbitration proceeding under 
        paragraph (4), or to comply with the terms of an 
        agreement or arbitration decision concerning sharing of 
        applicable costs under paragraph (3), that person is 
        deemed to have failed to comply with an order under 
        subparagraph (A) of section 408(p)(5) of the Federal 
        Food, Drug, and Cosmetic Act for purposes of 
        subparagraphs (B) and (C) of such section.
  (l) Definitions.--In this section:
          (1) The term ``endocrine disruptor'' means an 
        exogenous agent or mixture of agents that interferes or 
        alters the synthesis, secretion, transport, metabolism, 
        binding action, or elimination of hormones that are 
        present in the body and are responsible for 
        homeostasis, growth, neurological signaling, 
        reproduction and developmental process, or any other 
        effect that the Administrator has designated as an 
        ``endocrine effect'' pursuant to section 408(p)(1) of 
        the Federal Food, Drug, and Cosmetic Act.
          (2) The term ``testing'' means the testing of a 
        substance pursuant to the screening program under 
        section 408(p) of the Federal Food, Drug, and Cosmetic 
        Act, including a test of a substance that is intended 
        to identify substances that have the potential to 
        interact with the endocrine system or that is intended 
        to determine the endocrine-related effects caused by 
        such substance and obtain information about effects at 
        various doses.
  (m) Authorization of Appropriations.--To carry out this 
section, there is authorized to be appropriated $5,000,000 for 
each of fiscal years 2011 through 2015.

           *       *       *       *       *       *       *


                                  
