SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Level of Effort Clean Water Bonus 
Fund Act of 1995''.

SEC. 2. LEVEL OF EFFORT CAPITALIZATION GRANTS.

    (a) In General.--Section 604 of the Federal Water Pollution Control 
Act (33 U.S.C. 1384) is amended--
            (1) in subsection (a), by striking ``Sums'' and inserting 
        ``Subject to subsection (d), sums''; and
            (2) by adding at the end the following new subsection:
    ``(d) Level of Effort Capitalization Grants.--
            ``(1) In general.--For each fiscal year, the Administrator 
        shall reserve 20 percent of the funds made available for 
        capitalization grants under this title for making level of 
        effort capitalization grants to eligible States in accordance 
        with this subsection. A State that receives grant payments 
        under this subsection shall deposit all such payments in the 
        water pollution control revolving fund established by the State 
        in accordance with this title.
            ``(2) Eligibility.--A State shall be eligible to receive a 
        grant under this subsection if the State--
                    ``(A) submits an application for the grant to the 
                Administrator in such form and at such time as the 
                Administrator shall require; and
                    ``(B) for the fiscal year preceding the fiscal year 
                for which the application is submitted, deposits--
                            ``(i) an amount of State funds in addition 
                        to the amount required under section 602(b)(2) 
                        into the water pollution control revolving fund 
                        of the State established under this title;
                            ``(ii) an amount of State funds into a non-
                        Federal revolving fund or grant program that 
                        the Administrator determines is subject to 
                        requirements that are substantially similar to 
                        the requirements of the fund referred to in 
                        clause (i); or
                            ``(iii) both an amount as described in 
                        clause (i) and an amount as described in clause 
                        (ii).
            ``(3) Amount of grants.--
                    ``(A) In general.--Subject to subparagraph (B), a 
                grant to a State under this subsection shall be in an 
                amount equal to the total amounts deposited as 
                described in paragraph (2)(B).
                    ``(B) Limitations.--
                            ``(i) State maximum.--For each fiscal year, 
                        no State may receive a grant under this 
                        subsection in an amount that is greater than 20 
                        percent of the amount of funds reserved under 
                        paragraph (1).
                            ``(ii) Insufficient funds.--If, for any 
                        fiscal year, the sum of the grant amounts 
                        calculated under subparagraph (A) for all 
                        eligible States is greater than the amount of 
                        funds reserved under paragraph (1), the 
                        Administrator shall make a grant to each 
                        eligible State in an amount that is equal to 
                        the product obtained by multiplying--
                                    ``(I) the amount of funds reserved 
                                under paragraph (1); by
                                    ``(II) the quotient obtained by 
                                dividing--
                                            ``(aa) the grant amount 
                                        calculated under subparagraph 
                                        (A) for the State; by
                                            ``(bb) the sum of the grant 
                                        amounts calculated under 
                                        subparagraph (A) for all 
                                        eligible States.
            ``(4) Allotment of excess funds.--If, for any fiscal year, 
        the sum of the grant amounts calculated under paragraph (3) for 
        all eligible States is less than the amount of funds reserved 
        under paragraph (1), the Administrator shall allot the excess 
        funds in accordance with subsection (a).''.
    (b) Conforming Amendments.--Section 602(b) of such Act (33 U.S.C. 
1382(b)) is amended--
            (1) in paragraph (2), by inserting ``except with respect to 
        grants made to the State under section 604(d),'' before ``the 
        State will deposit''; and
            (2) in paragraph (3), by inserting ``, except that with 
        respect to grants made to the State under section 604(d), the 
        State will enter into binding commitments to provide the 
        assistance in an amount equal to 100 percent of the amount of 
        each grant payment'' before the semicolon at the end.
Level of Effort Clean Water Bonus Fund Act of 1995 - Amends the Federal Water Pollution Control Act to require the Administrator of the Environmental Protection Agency to reserve 20 percent of the amounts made available for capitalization grants for State water pollution control revolving funds for making level of effort capitalization grants to eligible States. 
Requires States that receive level of effort grant payments to deposit all payments into the revolving funds.  Makes eligible for such grants States that have deposited more than the required matching amount into the revolving fund or into a non-Federal revolving fund or grant program that is subject to requirements similar to those for the State revolving fund. 
Prohibits States from receiving a grant in an amount greater than 20 percent of the amount of funds reserved.
Level of Effort Clean Water Bonus Fund Act of 1995