SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Community Wastewater Treatment 
Affordability Act of 1994''.

SEC. 2. ELIGIBILITY.

    (a) Acquisition of Lands, Easements, and Rights-of-Ways.--Sections 
601(a) and 603(c) of the Federal Water Pollution Control Act (33 U.S.C. 
1381(a) and 1383(c)) are each amended by inserting before ``(2)'' the 
following: ``including acquisition of lands, easements, and rights-of-
ways necessary for construction of a treatment works,''.
    (b) Rural Nonprofit Water Association.--Section 603(c)(1) of such 
Act is amended by inserting ``or any nonprofit corporation eligible for 
assistance to provide wastewater treatment and water supply services to 
communities under section 306(a)(1) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(1))'' after ``State agency''.

SEC. 3. CAPITALIZATION GRANT AGREEMENTS.

    Section 602(b) of the Federal Water Pollution Control Act (33 
U.S.C. 1382(b)) is amended--
            (1) by striking ``and'' at the end of paragraph (9);
            (2) by striking the period at the end of paragraph (10) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(11) the State will encourage the use of innovative and 
        cost-effective technologies in the construction of treatment 
        works financed with assistance provided from the fund.''.

SEC. 4. TYPES OF ASSISTANCE.

    (a) Loan Program.--Section 603(d)(1) of the Federal Water Pollution 
Control Act (33 U.S.C. 1383(d)(1)) is amended--
            (1) by inserting before the semicolon at the end of 
        subparagraph (A) the following: ``and such loans are made to 
        rural and disadvantaged communities at or below market interest 
        rates, including interest free loans and negative-interest 
        loans (or the equivalent of such negative-interest loans), at 
        terms not to exceed 40 years or the useful life of the project 
        being financed with the proceeds of the loan, whichever is 
        earlier'';
            (2) in subparagraph (B) by inserting after ``20 years'' the 
        following: ``and, in the case of loans to rural and 
        disadvantaged communities, at terms not to exceed 40 years or 
        the useful life of the project being financed with the proceeds 
        of the loan, whichever is earlier''; and
            (3) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (D) and (E), respectively, and inserting after 
        subparagraph (B) the following:
                    ``(C) not to exceed 15 percent of all loans made 
                from the water pollution control revolving fund after 
                the date of the enactment of this subparagraph will be 
                used to make negative-interest loans to rural and 
                disadvantaged communities under this paragraph;''.
    (b) Planning Grants to Disadvantaged Communities.--Section 603(d) 
of such Act is further amended--
            (1) by striking ``and'' at the end of paragraph (6);
            (2) by striking the period at the end of paragraph (7) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(8) for making grants to rural and disadvantaged 
        communities to pay not to exceed 75 percent of planning and 
        predevelopment costs incurred by such communities with respect 
        to construction or improvement of treatment works without 
        regard to whether or not actual construction of the project is 
        carried out; except that amounts available for making such 
        grants in any fiscal year shall not be less than 1 percent, and 
        shall not exceed 2 percent, of the Federal grant awards to the 
        water pollution control revolving fund in such fiscal year and 
        except that the aggregate amount of such grants with respect to 
        any project shall not exceed $75,000.''.
    (c) Definitions.--Section 603 of such Act is further amended by 
adding at the end the following new subsection:
    ``(i) Definitions.--In this title, the following definitions apply:
            ``(1) Rural and disadvantaged communities.--The term `rural 
        and disadvantaged communities' means a service area of a 
        publicly owned treatment works as defined by the concerned 
        State. Except as otherwise provided by the Administrator, the 
        term shall not include a service area which has a population of 
        10,000 or more as determined by the latest decennial census of 
        the United States and the residents of which have a median 
        household income of more than 75 percent of the national median 
        household income as determined by such census.
            ``(2) Negative interest loan.--The term `negative-interest 
        loan' means a loan made by a State from its water pollution 
        control revolving fund to a rural and disadvantaged community 
        pursuant to section 603(d)(1) under which the interest rate is 
        zero percent per year and, in addition, the State forgives an 
        amount of the principal of the loan not to exceed 2 percent per 
        year but not to exceed a total forgiveness of 20 percent of the 
        principal over the term of the loan.''.

SEC. 5. ADMINISTRATIVE COSTS.

    Section 603(d)(7) of the Federal Water Pollution Control Act (33 
U.S.C. 1383(d)(7)) is amended by striking ``except that'' and all that 
follows through the period and inserting ``except that in a fiscal year 
such amount shall not exceed 4 percent of the total amount of funds 
deposited into the fund in such fiscal year, including Federal and 
State funds and repayments of principal and interest on loans made from 
the fund.''.

SEC. 6. TECHNICAL ASSISTANCE.

    (a) Grant Program.--Title VI of the Federal Water Pollution Control 
Act (33 U.S.C. 1381-1387) is amended by adding at the end the 
following:

``SEC. 608. TECHNICAL ASSISTANCE GRANT PROGRAM.

    ``(a) In General.--The Administrator may make grants to the 
National Rural Water Association, the Rural Community Assistance 
Program, and the Small Flows Clearinghouse and any other appropriately 
qualified organizations as determined by the Administrator to provide 
training and technical assistance to rural and disadvantaged 
communities with respect to the planning, construction, and operation 
of treatment works.
    ``(b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $15,000,000 per fiscal year for 
each of fiscal years 1994 through 1998. Such funds shall remain 
available until expended.''.
    (b) Conforming Amendment.--Section 607 of such Act (33 U.S.C. 1387) 
is amended by inserting ``(other than section 608)'' after ``title''.
Rural Community Wastewater Treatment Affordability Act of 1994 - Amends the Federal Water Pollution Control Act to make activities involving the acquisition of lands, easements, and rights-of-way necessary for construction of publicly owned treatment works eligible for assistance from State revolving loan funds (SRFs).  Makes certain nonprofit associations and other entities eligible for wastewater treatment and supply services under the Consolidated Farm and Rural Development Act eligible for SRF assistance as well. 
Adds to the list of conditions that a State must meet to receive a capitalization grant that the State will encourage the use of innovative and cost-effective technologies in the construction of treatment works financed with SRF assistance. 
Requires loans made from SRFs to be made to rural and disadvantaged communities at or below market interest rates for terms of up to 40 years or the useful life of the project being financed, whichever is earlier. 
Permits up to 15 percent of all loans made from an SRF to be used for negative-interest loans to rural and disadvantaged communities. 
Allows SRFs to be used to make grants to such communities for up to 75 percent of planning and predevelopment costs incurred with respect to construction or improvement of treatment works without regard to whether actual construction is carried out.  Limits amounts available for grants per fiscal year. 
Authorizes the Administrator of the Environmental Protection Agency to make grants to the National Rural Water Association, the Rural Community Assistance Program, the Small Flows Clearinghouse, and other qualified organizations to provide training and technical assistance to rural and disadvantaged communities with respect to the planning, construction, and operation of treatment works.  Authorizes appropriations.
Rural Community Wastewater Treatment Affordability Act of 1994