SECTION 1. GRANTS FOR WASTEWATER TREATMENT.

    (a) Coastal Localities.--The Administrator shall make grants under 
title II of the Federal Water Pollution Control Act to appropriate 
instrumentalities for the purpose of construction of treatment works 
(including combined sewer overflow facilities) to serve coastal 
localities.
    (b) Federal Share.--Notwithstanding section 202(a)(1) of the 
Federal Water Pollution Control Act, the Federal share of grants under 
subsection (a) shall be 80 percent of the cost of construction, and the 
non-Federal share shall be 20 percent of the cost of construction.
    (c) Small Communities.--The Administrator shall make grants to 
States for the purpose of providing assistance for the construction of 
treatment works and alternative wastewater treatment systems to serve 
small communities as defined by the State; except that the term ``small 
communities'' may not include any locality with a population greater 
than 75,000. Funds made available to carry out this subsection shall be 
allotted by the Administrator to the States in accordance with the 
allotment formula contained in section 604(a) of the Federal Water 
Pollution Control Act.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated for making grants under this section $300,000,000 for 
fiscal year 1996. Such sums shall remain available until expended and 
shall be equally divided between subsections (a) and (c) of this 
section. Such authorization of appropriation shall take effect only if 
the total amount appropriated for fiscal year 1996 to carry out title 
VI of the Federal Water Pollution Control Act is at least 
$2,250,000,000.

SEC. 2. TREATMENT WORKS DEFINED.

    (a) Inclusion of Other Lands.--Section 212(2)(A) of the Federal 
Water Pollution Control Act (33 U.S.C. 1292(2)(A)) is amended--
            (1) by striking ``any works, including site'';
            (2) by striking ``is used for ultimate'' and inserting 
        ``will be used for ultimate''; and
            (3) by inserting before the period at the end the 
        following: ``and acquisition of other lands, and interests in 
        lands, which are necessary for construction''.
    (b) Policy on Cost Effectiveness.--Section 218(a) of such Act (33 
U.S.C. 1298(a)) is amended by striking ``combination of devices and 
systems'' and all that follows through ``from such treatment;'' and 
inserting ``treatment works;''.

SEC. 3. COMBINED SEWER OVERFLOWS.

    Section 402 of the Federal Water Pollution Control Act (33 U.S.C. 
1342) is amended by adding at the end the following:
    ``(q) Combined Sewer Overflows.--
            ``(1) Requirement for permits.--Each permit issued pursuant 
        to this section for a discharge from a combined storm and 
        sanitary sewer shall conform with the combined sewer overflow 
        control policy signed by the Administrator on April 11, 1994.
            ``(2) Term of permit.--
                    ``(A) Compliance deadline.--Notwithstanding any 
                compliance schedule under section 301(b), or any permit 
                limitation under section 402(b)(1)(B), the 
                Administrator (or a State with a program approved under 
                subsection (b)) may issue a permit pursuant to this 
                section for a discharge from a combined storm and 
                sanitary sewer, that includes a schedule for compliance 
                with a long-term control plan under the control policy 
                referred to in paragraph (1), for a term not to exceed 
                15 years.
                    ``(B) Extension.--Notwithstanding the compliance 
                deadline specified in subparagraph (A), the 
                Administrator or a State with a program approved under 
                subsection (b) shall extend, on request of an owner or 
                operator of a combined storm and sanitary sewer and 
                subject to subparagraph (C), the period of compliance 
                beyond the last day of the 15-year period--
                            ``(i) if the Administrator or the State 
                        determines that compliance by such last day is 
                        not within the economic capability of the owner 
                        or operator; and
                            ``(ii) if the owner or operator 
                        demonstrates to the satisfaction of the 
                        Administrator or the State reasonable further 
                        progress toward compliance with a long-term 
                        control plan under the control policy referred 
                        to in paragraph (1).
                    ``(C) Limitation on extensions.--Notwithstanding 
                subparagraph (B), the Administrator or the State need 
                not grant an extension of the compliance deadline 
                specified in subparagraph (A) if the Administrator or 
                the State determines that such an extension is not 
                appropriate.
            ``(3) Savings clause.--Any consent decree or court order 
        entered by a United States district court, or administrative 
        order issued by the Administrator, before the date of the 
        enactment of this subsection establishing any deadlines, 
        schedules, or timetables, including any interim deadlines, 
        schedules, or timetables, for the evaluation, design, or 
        construction of treatment works for control or elimination of 
        any discharge from a municipal combined storm and sanitary 
        sewer system shall be modified upon motion or request by any 
        party to such consent decree or court order, to extend to 
        December 31, 2009, at a minimum, any such deadlines, schedules, 
        or timetables, including any interim deadlines, schedules, or 
        timetables as is necessary to conform to the policy referred to 
        in paragraph (1) or otherwise achieve the objectives of this 
        subsection.''

SEC. 4. SPECIFIC REQUIREMENTS FOR CAPITALIZATION GRANTS.

    Section 602(b)(6) of the Federal Water Pollution Control Act (33 
U.S.C. 1382(b)(6)) is amended by inserting ``(other than the 20 percent 
limitation contained in the exception at the end of the last sentence 
of such section)'' after ``201(g)(1)''.

SEC. 5. WATER POLLUTION CONTROL REVOLVING LOAN FUNDS.

    (a) Activities Eligible for Assistance.--Section 603(c) of the 
Federal Water Pollution Control Act (33 U.S.C. 1383(c)) is amended to 
read as follows:
    ``(c) Activities Eligible for Assistance.--
            ``(1) In general.--The amounts of funds available to each 
        State water pollution control revolving fund shall be used only 
        for providing financial assistance to activities which have as 
        a principal benefit the improvement or protection of water 
        quality of navigable waters to a municipality, intermunicipal 
        agency, interstate agency, State agency, or other person. Such 
        activities may include the following:
                    ``(A) Construction of a publicly owned treatment 
                works if the recipient of such assistance is a 
                municipality.
                    ``(B) Implementation of lake protection programs 
                and projects under section 314.
                    ``(C) Implementation of a management program under 
                section 319.
                    ``(D) Implementation of a conservation and 
                management plan under section 320.
                    ``(E) Acquisition of property rights for the 
                restoration or protection of publicly or privately 
                owned riparian areas.
                    ``(F) Implementation of measures to improve the 
                efficiency of public water use.
                    ``(G) Development and implementation of plans by a 
                public recipient to prevent water pollution.
                    ``(H) Acquisition of lands necessary to meet any 
                mitigation requirements related to construction of a 
                publicly owned treatment works.
            ``(2) Fund amounts.--The water pollution control revolving 
        fund of a State shall be established, maintained, and credited 
        with repayments, and the fund balance shall be available in 
        perpetuity for providing financial assistance described in 
        paragraph (1). Fees charged by a State to recipients of such 
        assistance may be deposited in the fund for the sole purpose of 
        financing the cost of administration of this title.''.
    (b) Extended Repayment Period for Disadvantaged Communities.--
Section 603(d)(1) of such Act (33 U.S.C. 1383(d)(1)) is amended--
            (1) in subparagraph (A) by inserting after ``20 years'' the 
        following: ``or, in the case of a disadvantaged community, the 
        lesser of 40 years or the expected life of the project to be 
        financed with the proceeds of the loan''; and
            (2) in subparagraph (B) by striking ``not later than 20 
        years after project completion'' and inserting ``upon the 
        expiration of the term of the loan''.
    (c) Interest Rates.--Section 603 of such Act is further amended by 
adding at the end the following:
    ``(i) Interest Rates.--In any case in which a State makes a loan 
pursuant to subsection (d)(1) to a disadvantaged community, the State 
may charge a negative interest rate of not to exceed 2 percent to 
reduce the unpaid principal of the loan. The aggregate amount of all 
such negative interest rate loans the State makes in a fiscal year 
shall not exceed 20 percent of the aggregate amount of all loans made 
by the State from its revolving loan fund in such fiscal year.''.

SEC. 6. ALLOTMENT OF FUNDS.

    (a) In General.--Section 604(a) of the Federal Water Pollution 
Control Act (33 U.S.C. 1384(a)) is amended to read as follows:
    ``(a) Formula for Fiscal Years 1996-2000.--Sums authorized to be 
appropriated pursuant to section 607 for each of fiscal years 1996, 
1997, 1998, 1999, and 2000 shall be allotted for such year by the 
Administrator not later than the 10th day which begins after the date 
of the enactment of the table contained in this subsection. Sums 
authorized for each such fiscal year shall be allotted in accordance 
with the following table:

``States:                                Percentage of sums authorized:
    Alabama.......................................              0.7736 
    Alaska........................................              0.2500 
    Arizona.......................................              1.1526 
    Arkansas......................................              0.3853 
    California....................................              9.3957 
    Colorado......................................              0.6964 
    Connecticut...................................              1.3875 
    Delaware......................................              0.2500 
    District of Columbia..........................              0.3203 
    Florida.......................................              3.4696 
    Georgia.......................................              2.0334 
    Hawaii........................................              0.2629 
    Idaho.........................................              0.2531 
    Illinois......................................              5.6615 
    Indiana.......................................              3.1304 
    Iowa..........................................              0.6116 
    Kansas........................................              0.8749 
    Kentucky......................................              1.3662 
    Louisiana.....................................              1.0128 
    Maine.........................................              0.6742 
    Maryland......................................              1.6701 
    Massachusetts.................................              4.3755 
    Michigan......................................              3.8495 
    Minnesota.....................................              1.3275 
    Mississippi...................................              0.6406 
    Missouri......................................              1.7167 
    Montana.......................................              0.2500 
    Nebraska......................................              0.4008 
    Nevada........................................              0.2500 
    New Hampshire.................................              0.4791 
    New Jersey....................................              4.7219 
    New Mexico....................................              0.2500 
    New York......................................             14.7435 
    North Carolina................................              2.5920 
    North Dakota..................................              0.2500 
    Ohio..........................................              4.9828 
    Oklahoma......................................              0.6273 
    Oregon........................................              1.2483 
    Pennsylvania..................................              4.2431 
    Rhode Island..................................              0.4454 
    South Carolina................................              0.7480 
    South Dakota..................................              0.2500 
    Tennessee.....................................              1.4767 
    Texas.........................................              4.6773 
    Utah..........................................              0.2937 
    Vermont.......................................              0.2722 
    Virginia......................................              2.4794 
    Washington....................................              2.2096 
    West Virginia.................................              1.4346 
    Wisconsin.....................................              1.4261 
    Wyoming.......................................              0.2500 
    Puerto Rico...................................              1.0866 
    Northern Marianas.............................              0.0308 
    American Samoa................................              0.0908 
    Guam..........................................              0.0657 
    Palau.........................................              0.1295 
    Virgin Islands................................           0.0527.''.
    (b) Conforming Amendment.--Section 604(c)(2) is amended by striking 
``title II of this Act'' and inserting ``this title''.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    Section 607 (33 U.S.C. 1387) is amended--
            (1) by striking ``and'' at the end of paragraph (4);
            (2) by striking the period at the end of paragraph (5) and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(6) such sums as may be necessary for fiscal year 1995;
            ``(7) $2,250,000,000 for fiscal year 1996;
            ``(8) $2,300,000,000 for fiscal year 1997;
            ``(9) $2,300,000,000 for fiscal year 1998;
            ``(10) $2,300,000,000 for fiscal year 1999; and
            ``(11) $2,300,000,000 for fiscal year 2000.''.
Directs the Administrator of the Environmental Protection Agency to make grants:  (1) under the Federal Water Pollution Control Act (the Act) to appropriate instrumentalities for the construction of treatment works (including combined sewer overflow facilities) to serve coastal localities; and (2) to States for assistance for the construction of treatment works and alternative wastewater treatment systems to serve small communities.  Authorizes appropriations. 
Modifies the Act's:  (1) definition of "treatment works" to include acquisition of the land that will be an integral part of the treatment process or will be used for ultimate disposal of residues resulting from such treatment and acquisition of other lands, and interests in lands, which are necessary for construction; and (2) policy on cost effectiveness to provide that a project for waste treatment and management undertaken with Federal assistance by any State, municipality, or intermunicipal or interstate agency shall be that system which constitutes the most economical and cost-effective treatment works, subject to specified requirements. 
Requires that each permit issued for a discharge from a combined storm and sanitary sewer conform with the combined sewer overflow control policy signed by the Administrator on April 11, 1994. Authorizes the Administrator or a State with an approved program to issue a permit for such a discharge that includes a schedule for compliance with a long-term control plan under the control policy up to 15 years, subject to extension under specified circumstances. 
Modifies the Act to allow sums available to each State water pollution control revolving fund to be used only for providing financial assistance to activities which have as a principal benefit the improvement or protection of water quality of navigable waters to a municipality, intermunicipal, interstate, or State agency or other person.  Extends the repayment period for loans from a State water pollution control revolving fund for disadvantaged communities. Permits the State, in making a loan to a disadvantaged community, to charge a negative interest rate of not to exceed two percent to reduce the unpaid principal of the loan, subject to specified limitations. 
Revises Act provisions regarding the allotment of funds to set forth a table of percentages of sums authorized for various States for FY 1996 through 2000. 
Authorizes appropriations.
To amend the Federal Water Pollution Control Act.