Water Supply Construction Assistance Act of 1993

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Water Supply Construction Assistance 
Act of 1993''.

SEC. 2. PURPOSES.

    The purposes of this Act are as follows:
            (1) To provide grants for establishment of State revolving 
        funds for the purpose of providing financial and technical 
        assistance for the construction, rehabilitation, and 
        improvement of water supply systems, including treatment to 
        remove pollutants from navigable waters for the purpose of 
        making such waters useable by water supply systems.
            (2) To provide for administrative efficiencies through 
        implementation of this Act relying on existing mechanisms of 
        State water pollution control revolving loan fund programs 
        established pursuant to title VI of the Federal Water Pollution 
        Control Act.

SEC. 3. LIMITATION ON STATUTORY CONSTRUCTION.

    Nothing in this Act shall be construed as affecting the 
requirements of title XIV of the Public Health Service Act (42 U.S.C. 
300f-300j-9), commonly referred to as the Safe Drinking Water Act.

SEC. 4. GRANTS TO STATES.

    Subject to the provisions of this Act, the Administrator shall make 
grants to each State for the purpose of establishing a water supply 
construction account in the State water pollution control revolving 
loan fund programs established pursuant to title VI of the Federal 
Water Pollution Control Act, if any, to provide assistance for the 
construction, rehabilitation, and improvement of water supply systems.

SEC. 5. GRANT AGREEMENTS.

    (a) General Rule.--To receive a grant with funds made available 
under this Act, a State shall enter into an agreement with the 
Administrator which shall include, but not be limited to, the 
specifications set forth in subsection (b) of this section.
    (b) Specific Requirements.--The Administrator shall enter into an 
agreement under this section with a State only after the State has 
established to the satisfaction of the Administrator that--
            (1) the State will accept grant payments with funds to be 
        made available under this Act and will deposit all such 
        payments in the water supply construction account established 
        by the State in accordance with this Act;
            (2) if the State has a water pollution control revolving 
        fund established in accordance with title VI of the Federal 
        Water Pollution Control Act, the State will establish the water 
        supply construction account as a separate account in such fund;
            (3) the State will deposit in the water supply construction 
        account from State moneys an amount equal to at least 20 
        percent of the total amount of all grants which will be made to 
        the State with funds to be made available under this Act on or 
        before the date on which each grant payment will be made to the 
        State under this Act;
            (4) the State will enter into binding commitments to 
        provide assistance in accordance with the requirements of this 
        Act an amount equal to 120 percent of the amount of each such 
        grant payment within 1 year after the receipt of such grant 
        payment;
            (5) the State will not make available any assistance from 
        the account unless the State has first determined that the 
        applicant--
                    (A) has adopted or will adopt a system of charges 
                to assure that each recipient of water supply services 
                within the applicant's jurisdiction will pay its 
                proportionate share of the cost of operation and 
                maintenance (including replacement) of any such 
                services provided by the applicant; and
                    (B) has legal, institutional, managerial, and 
                financial capability to ensure adequate construction, 
                operation, and maintenance of water supply systems 
                throughout the applicant's jurisdiction;
            (6) the State will take such action as may be necessary to 
        ensure that, after construction, rehabilitation, and 
        improvement of a water supply system undertaken with funds 
        directly made available by grants under this Act, such system 
        will provide water supply services at the most economical cost;
            (7) the State will take such action as may be necessary 
        with respect to construction, rehabilitation, and improvement 
        of a water supply system undertaken with funds directly made 
        available by grants under this Act as the Administrator is 
        required to take under section 513 of the Federal Water 
        Pollution Control Act with respect to treatment works carried 
        out with assistance provided under such Act; and
            (8) the State will make annual reports to the Administrator 
        on the actual use of funds in accordance with section 606(d) of 
        the Federal Water Pollution Control Act.

SEC. 6. INCORPORATION OF FWPCA BY REFERENCE.

    (a) General Rule.--The provisions of title VI of the Federal Water 
Pollution Control Act shall apply as provided in this Act to accounts 
established by States under this Act. For purposes of this Act, any 
reference to the Federal Water Pollution Control Act and to any section 
thereof shall be treated as a reference to such Act or section as in 
effect on the date of the enactment of this Act.
    (b) Types of Assistance.--Section 603(d) of the Federal Water 
Pollution Control Act shall apply to accounts established by States 
under this Act to the same extent and in the same manner as such 
section applies to water pollution control revolving funds under such 
Act; except that the percentage of grant awards available for 
administrative expenses under paragraph (7) of such section shall be 5 
percent instead of 4 percent.
    (c) Corrective Action.--Section 605 of such Act shall apply to a 
State's agreement with the Administrator under this Act and to 
requirements of this Act to the same extent and in the same manner as 
such section applies to a State's agreement under section 602 of such 
Act and the requirements of title VI of such Act.
    (d) Audits, Reports, and Fiscal Controls.--Subsections (a), (b), 
(d), and (e) of section 606 of such Act shall apply to a State 
establishing an account under this Act and to such account to the same 
extent and in the same manner as such subsections apply to a State 
establishing a water pollution control revolving fund under title VI of 
such Act and to such fund.

SEC. 7. WATER SUPPLY CONSTRUCTION REVOLVING LOAN FUNDS.

    (a) Requirements for Obligation of Grant Funds.--Before a State may 
receive a grant with funds made available under this Act, the State 
shall first establish a water supply construction account which 
complies with the requirements of this Act.
    (b) Administrator.--Each State water supply construction account 
shall be administered by an instrumentality of the State with such 
powers and limitations as may be required to operate such account in 
accordance with the requirements and objectives of this Act.
    (c) Projects Eligible for Assistance.--The amounts of funds 
available to each State water supply construction account shall be used 
only for providing financial assistance for construction, 
rehabilitation, and improvement of a water supply system. The account 
shall be established, maintained, and credited with repayments, and the 
account balance shall be available in perpetuity for providing such 
financial assistance.
    (d) Types of Assistance.--In addition to the types of assistance 
which may be made available under section 603(d) of the Federal Water 
Pollution Control Act from a water supply construction account of a 
State under this Act--
            (1) such account may be used to provide technical 
        assistance with respect to construction, rehabilitation, and 
        improvement of water supply systems; and
            (2) the interest derived from funds in such account or from 
        loans made from such account may be used by the State to make 
        grants to pay up to 50 percent of the cost of construction, 
        rehabilitation, and improvement of a water supply system.

SEC. 8. ALLOTMENT OF FUNDS.

    (a) Fiscal Year 1994.--Sums authorized to be appropriated pursuant 
to this Act for fiscal year 1994 shall be allotted for such year by the 
Administrator not later than the 10th day which begins after the date 
of the enactment of this Act. Sums authorized for such fiscal year 
shall be allotted in accordance with the following table:

  States:
                                                           Percentages:
        Alabama............................................        0.96
        Alaska.............................................        2.38
        Arizona............................................        1.40
        Arkansas...........................................        0.99
        California.........................................        6.75
        Colorado...........................................        1.33
        Connecticut........................................        1.77
        Delaware...........................................        0.50
        District of Columbia...............................        0.50
        Florida............................................        3.82
        Georgia............................................        2.13
        Hawaii.............................................        0.50
        Idaho..............................................        0.98
        Illinois...........................................        3.29
        Indiana............................................        2.04
        Iowa...............................................        1.35
        Kansas.............................................        1.12
        Kentucky...........................................        0.90
        Louisiana..........................................        1.66
        Maine..............................................        0.99
        Maryland...........................................        1.48
        Massachusetts......................................        1.11
        Michigan...........................................        5.05
        Minnesota..........................................        3.51
        Mississippi........................................        1.33
        Missouri...........................................        1.80
        Montana............................................        1.17
        Nebraska...........................................        1.00
        Nevada.............................................        0.70
        New Hampshire......................................        1.07
        New Jersey.........................................        2.31
        New Mexico.........................................        1.00
        New York...........................................        5.35
        North Carolina.....................................        3.94
        North Dakota.......................................        0.53
        Ohio...............................................        3.71
        Oklahoma...........................................        1.43
        Oregon.............................................        1.52
        Pennsylvania.......................................        4.54
        Rhode Island.......................................        0.50
        South Carolina.....................................        1.23
        South Dakota.......................................        0.63
        Tennessee..........................................        1.01
        Texas..............................................        5.95
        Utah...............................................        0.73
        Vermont............................................        0.58
        Virginia...........................................        2.44
        Washington.........................................        2.64
        West Virginia......................................        0.96
        Wisconsin..........................................        3.66
        Wyoming............................................        0.62
        American Samoa.....................................        0.09
        Guam...............................................        0.07
        Northern Marianas..................................        0.04
        Puerto Rico........................................        0.62
        Pacific Trust Territories..........................        0.13
        Virgin Islands.....................................       0.27.
    (b) Fiscal Years 1995 and 1996.--Sums authorized to be appropriated 
pursuant to this Act for each of fiscal years 1995 and 1996 shall be 
allotted by the Administrator in accordance with the relative needs of 
the States for construction, rehabilitation, and improvement of water 
supply systems as determined by the Administrator, in consultation with 
the States.
    (c) Reservation of Funds for Indian Tribes.--Notwithstanding 
subsections (a) and (b) of this section, the Administrator shall 
reserve for each fiscal year not to exceed 1.5 percent of the amount 
made available to carry out this Act for such fiscal year for the 
purpose of making grants to Indian tribes for construction, 
rehabilitation, and improvement of water supply systems.
    (d) Allotment Period.--
            (1) Period of availability for grant award.--Sums allotted 
        to a State under this section for a fiscal year shall be 
        available for obligation by the State during the fiscal year 
        for which sums are authorized and during the following fiscal 
        year; except that for sums allotted in fiscal year 1994, such 
        period of availability shall be fiscal years 1994-1996.
            (2) Reallotment of unobligated funds.--The amount of any 
        allotment not obligated by the State by the last day of the 
        period of availability established by paragraph (1) shall be 
        immediately reallotted by the Administrator on the basis of the 
        same ratio as is applicable to sums allotted under this Act for 
        the second fiscal year of such period. None of the funds 
        reallotted by the Administrator shall be reallotted to any 
        State which has not obligated all sums allotted to such State 
        in the first fiscal year of such period.

SEC. 9. DETERMINATION OF PRIORITY.

    Each State establishing a water supply construction account shall 
determine the priority to be given projects for construction, 
rehabilitation, and improvement of water supply systems within the 
boundaries of the State taking into account the relative financial and 
other needs for such construction, rehabilitation, and improvement.

SEC. 10. NEEDS SURVEY.

    (a) In General.--The Administrator, in cooperation with the States, 
shall make--
            (1) a detailed estimate, biennially revised, of the cost of 
        needed construction, rehabilitation, and improvement of water 
        supply systems in all of the States and of the cost of needed 
        construction in each of the States; and
            (2) a comprehensive study of the economic impact on 
        affected units of government of the cost of installation of 
        water supply systems and parts thereof.
    (b) Submission to Congress.--The Administrator shall submit the 
detailed estimate and the comprehensive study of costs under subsection 
(a) to Congress no later than January 1, 1996, and January 1 of each 
even-numbered year thereafter. The Administrator shall also submit 
recommendations for allotment of funds under this Act to the States 
based on such estimates and on such additional factors as the 
Administrator deems appropriate, including financial need. Whenever the 
Administrator, pursuant to this section, requests and receives an 
estimate of cost from a State, the Administrator shall furnish copies 
of such estimate together with such detailed estimate to Congress.

SEC. 11. BUY AMERICAN.

    (a) Sense of Congress.--It is the sense of Congress that a 
recipient of assistance under this Act should purchase American-made 
equipment and products.
    (b) Notice.--The Administrator shall provide to each recipient of 
assistance under this Act a notice describing the sense of Congress set 
forth in subsection (a).

SEC. 12. DEFINITIONS.

    In this Act, the following definitions apply:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Indian tribe.--The term ``Indian tribe'' has the 
        meaning such term has under section 518 of the Federal Water 
        Pollution Control Act and includes Alaska Native Villages and 
        former Indian reservations in Oklahoma.
            (3) State.--The term ``State'' means a State, the District 
        of Columbia, the Commonwealth of Puerto Rico, the Virgin 
        Islands, Guam, American Samoa, the Commonwealth of the Northern 
        Mariana Islands, and the Trust Territory of the Pacific 
        Islands.
            (4) Water supply system.--The term ``water supply system'' 
        means a system (owned by a governmental entity, a nonprofit 
        organization, or any other private person regulated by a State 
        public utility commission and having the greatest public need 
        for assistance under this Act) for the provision to the public 
        of piped water for human consumption, if such system has at 
        least 15 service connections or regularly serves at least 25 
        individuals. Such term includes (A) any collection, treatment, 
        storage, and distribution facilities under control of the 
        operator of such system and used primarily in connection with 
        such system, and (B) any collection or pretreatment facilities 
        not under such control that are used primarily in connection 
        with such system.

SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated for purposes of this Act 
the following sums:
            (1) $599,000,000 for fiscal year 1994;
            (2) $1,000,000,000 for fiscal year 1995; and
            (3) $1,000,000,000 for fiscal year 1996.

Summary: Water Supply Construction Assistance Act of 1993 - Directs the Administrator of the Environmental Protection Agency to make grants to States for establishing water supply construction accounts in State water pollution control revolving loan fund programs to provide assistance for the construction, rehabilitation, and improvement of water supply systems. Sets forth specific requirements for grant agreements. Applies certain provisions of the Federal Water Pollution Control Act regarding authorized uses of water pollution control revolving funds, corrective action, and auditing, reporting, and fiscal controls to water supply construction accounts. Sets forth amounts to be allotted to States and US territories. Reserves a specified amount for grants to Indian tribes. Directs the Administrator to develop and submit to the Congress: (1) an estimate of the cost of needed construction, rehabilitation, and improvement of water supply systems in all States. And (2) a study of the economic impact on affected units of government of the cost of installation of water supply systems. Expresses the sense of the Congress that recipients of assistance under this Act should purchase American-made equipment and products. Authorizes appropriations.