Clean Water Compliance and Ratepayer Affordability Act of 2013

Summary: Clean Water Compliance and Ratepayer Affordability Act of 2013 - Requires the Administrator of the Environmental Protection Agency (EPA) to carry out a pilot program to work cooperatively with and facilitate the efforts of municipalities to develop and implement integrated plans to meet their wastewater and stormwater obligations under the Federal Water Pollution Control Act (commonly known as the Clean Water Act) in a cost-effective and flexible manner and consistent with the Integrated Municipal Stormwater and Wastewater Approach Framework issued by EPA in May 2012. Directs the Administrator, in consultation with states that have approved National Pollutant Discharge Elimination System programs, to select at least 15 municipalities to participate in the program. Sets forth selection factors, including by giving a priority to those with a history of knowledgeable, detailed, and comprehensive efforts to develop integrated and adaptive clean water management practices, without regard to the municipality's status in the process of planning or implementing them. Provides standards for approval of a municipality's integrated plan under the pilot program, including concerning financial capability, prioritization of obligations under the Clean Water Act, and the use of innovative and flexible approaches to meet obligations. Allows priority to be given to municipalities seeking to develop and implement approaches that adapt to changed or future uncertain circumstances. Provides additional authorities regarding selected municipalities concerning: (1) extension of the allowable national pollutant discharge elimination system permit term, (2) modification of implementation terms of a consent decree, and (3) additional regulatory flexibility in approving and implementing an integrated plan that includes adaptive approaches.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Clean Water Compliance and Ratepayer 
Affordability Act of 2013''.

SEC. 2. INTEGRATED MUNICIPAL STORMWATER AND WASTEWATER APPROACH 
              FRAMEWORK.

    (a) In General.--In the first 5 fiscal years beginning after the 
date of enactment of this Act, the Administrator of the Environmental 
Protection Agency, in coordination with appropriate State, local, and 
regional authorities, shall carry out a pilot program under which the 
Administrator shall work cooperatively with and facilitate the efforts 
of municipalities to develop and implement integrated plans to meet 
their wastewater and stormwater obligations under the Federal Water 
Pollution Control Act (33 U.S.C. 1251 et seq.) in a more cost-effective 
and flexible manner.
    (b) Framework.--The Administrator shall carry out the pilot program 
in a manner that is consistent with the Integrated Municipal Stormwater 
and Wastewater Approach Framework issued by the Environmental 
Protection Agency, dated May 2012.
    (c) Selection of Municipalities.--
            (1) In general.--The Administrator, in consultation with 
        States that have approved National Pollutant Discharge 
        Elimination System programs, shall select not less than 15 
        municipalities to participate in the pilot program.
            (2) Factors.--In selecting the municipalities, the 
        Administrator shall--
                    (A) specifically focus on--
                            (i) municipalities that are operating under 
                        an administrative order, administrative consent 
                        agreement, or judicial consent decree to comply 
                        with the requirements of the Federal Water 
                        Pollution Control Act;
                            (ii) other municipalities facing compliance 
                        issues under the Federal Water Pollution 
                        Control Act, in addition to the municipalities 
                        described in clause (i); and
                            (iii) municipalities that are affected by 
                        affordability constraints in planning and 
                        implementing control measures to address wet 
                        weather discharges from their wastewater and 
                        stormwater facilities; and
                    (B) give priority to municipalities with a history 
                of knowledgeable, detailed, and comprehensive efforts 
                to develop integrated and adaptive clean water 
                management practices, without regard to the status of 
                the municipality in the process of planning or 
                implementing such practices.
    (d) Approval of Integrated Plans.--
            (1) In general.--In approving the integrated plan of a 
        municipality under the pilot program, the Administrator shall--
                    (A) account for the financial capability of the 
                municipality to adequately address the requirements of 
                the Federal Water Pollution Control Act that apply to 
                the municipality;
                    (B) prioritize the obligations of the municipality 
                under the Federal Water Pollution Control Act according 
                to the most cost-effective and environmentally 
                beneficial outcomes;
                    (C) account for the maintenance, operational, and 
                regulatory obligations of the municipality; and
                    (D) enable the municipality to implement innovative 
                and flexible approaches to meet the obligations of the 
                municipality under the Federal Water Pollution Control 
                Act.
            (2) Use of adaptive management approaches.--
                    (A) Priority.--In selecting municipalities to 
                participate in the program, the Administrator may give 
                priority to a municipality that is seeking to develop 
                and implement an integrated plan that includes adaptive 
                approaches to account for changed or future uncertain 
                circumstances.
                    (B) Types of adaptive approaches.--Adaptive 
                approaches referred to in subparagraph (A) include, at 
                a minimum--
                            (i) the use of new innovative technical or 
                        institutional approaches; and
                            (ii) the ability to adapt the integrated 
                        plan in response to new regulatory requirements 
                        and reductions in financial capability.
            (3) Additional authorities.--In carrying out the pilot 
        program, the Administrator may, in full coordination and mutual 
        agreement with a municipality selected to participate in the 
        pilot program--
                    (A) extend the allowable national pollutant 
                discharge elimination system permit term under section 
                402 of the Federal Water Pollution Control Act (33 
                U.S.C. 1342) to a maximum of 25 years, and make 
                corresponding changes to any associated implementation 
                schedule;
                    (B) modify the implementation terms of a consent 
                decree entered into by the municipality with the 
                Administrator pursuant to that Act; and
                    (C) provide additional regulatory flexibility under 
                the Federal Water Pollution Control Act in approving 
                and implementing an integrated plan that includes 
                adaptive approaches in order to encourage the 
                innovation integral to such approaches.
    (e) Report to Congress.--Not later than 1 year after the date of 
enactment of this Act, and each year thereafter for 5 years, the 
Administrator shall transmit to Congress a report on the results of the 
pilot program, including a description of the specific outcomes 
expected to be achieved that will reduce the costs of complying with 
the requirements of the Federal Water Pollution Control Act for 
municipalities participating in the program and similarly situated 
municipalities.