To amend the Federal Water Pollution Control Act to authorize appropriations for State water pollution control revolving funds, and for other purposes.

SECTION 1. SHORT TITLE; AMENDMENT OF FEDERAL WATER POLLUTION CONTROL 
              ACT.

    (a) In General.--This Act may be cited as the ``Clean Water 
Infrastructure and Security Improvement Act of 2002''.
    (b) Amendment of Federal Water Pollution Control Act.--Except as 
otherwise expressly provided, whenever in this Act an amendment or 
repeal is expressed in terms of an amendment to, or repeal of, a 
section or other provision, the reference shall be considered to be 
made to a section or other provision of the Federal Water Pollution 
Control Act (33 U.S.C. 1251-1387).

SEC. 2. GENERAL AUTHORITY FOR CAPITALIZATION GRANTS.

    Section 601(a) (33 U.S.C. 1381(a)) is amended by striking ``(1) for 
construction'' and all that follows through the period and inserting 
``to accomplish the purposes of this Act.''.

SEC. 3. CAPITALIZATION GRANTS AGREEMENTS.

    (a) Requirements for Construction of Treatment Works.--Section 
602(b)(6) (33 U.S.C. 1382(b)(6)) is amended to read as follows:
            ``(6) treatment works eligible under section 603(c)(1) of 
        this Act constructed in whole or in part with funds made 
        available by a State water pollution control revolving fund 
        under this title and section 205(m) of this Act will meet the 
        requirements of section 513 of this Act in the same manner as 
        treatment works constructed with assistance under title II of 
        this Act;''.
    (b) Architectural and Engineering Contracts.--Section 602(b) (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 require that each contract and 
        subcontract for program management, construction management, 
        planning studies, feasibility studies, architectural services, 
        preliminary engineering, design, engineering, surveying, 
        mapping, and related services entered into using amounts from 
        the fund will be awarded in the same way that a contract for 
        architectural and engineering services is awarded under title 
        IX of the Federal Property and Administrative Services Act of 
        1949 (40 U.S.C. 541 et seq.), or an equivalent qualifications-
        based requirement prescribed by the State, except that such an 
        award shall not be construed as conferring a proprietary 
        interest upon the United States.''.
    (c) Guidance for Small Systems.--Section 602 (33 U.S.C. 1382) is 
amended by adding at the end the following:
    ``(c) Guidance for Small Systems.--
            ``(1) Simplified procedures.--Not later than 1 year after 
        the date of enactment of this subsection, the Administrator 
        shall assist the States in establishing simplified procedures 
        for small systems to obtain assistance under this title.
            ``(2) Publication of manual.--Not later than 1 year after 
        the date of enactment of this subsection, and after providing 
        notice and opportunity for public comment, the Administrator 
        shall publish a manual to assist small systems in obtaining 
        assistance under this title and publish in the Federal Register 
        notice of the availability of the manual.
            ``(3) Small system defined.--For purposes of this title, 
        the term `small system' means a system for which a municipality 
        or intermunicipal, interstate, or State agency seeks assistance 
        under this title and which serves a population of 10,000 or 
        less.''.

SEC. 4. WATER POLLUTION CONTROL REVOLVING FUNDS.

    (a) Activities Eligible for Assistance.--Section 603(c) (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 that 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.
                    ``(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) Restoration or protection of publicly or 
                privately owned riparian areas, including acquisition 
                of property rights.
                    ``(F) Implementation of measures to promote 
                beneficial reuse of wastewater.
                    ``(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.
                    ``(I) Implementation of measures to enhance the 
                security of 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) Loan Guarantees.--Section 603(d)(5) (33 U.S.C. 1383(d)(5)) is 
amended to read as follows:
            ``(5) to provide loan guarantees for--
                    ``(A) similar revolving funds established by 
                municipalities or intermunicipal agencies; and
                    ``(B) developing and implementing innovative 
                technologies.''.
    (c) Administrative Expenses.--Section 603(d)(7) (33 U.S.C. 
1383(d)(7)) is amended by inserting before the period at the end the 
following: ``or $400,000 per year or \1/2\ percent per year of the 
current valuation of such fund, whichever is greater, plus the amount 
of any fees collected by the State for such purpose under subsection 
(c)(2)''.
    (d) Technical and Planning Assistance for Small Systems.--Section 
603(d) (33 U.S.C. 1383(d)) is amended--
            (1) by striking ``and'' at the end of paragraph (6);
            (2) by striking the period at the end of paragraph (7) and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(8) to provide to small systems technical and planning 
        assistance and assistance in financial management, user fee 
        analysis, budgeting, capital improvement planning, facility 
        operation and maintenance, repair schedules, and other 
        activities to improve wastewater treatment plant operations, 
        except that such amounts shall not exceed 2 percent of all 
        grant awards to such fund under this title; and''.
    (e) Grants to Financially Distressed Communities.--Section 603(d) 
(33 U.S.C. 1383(d)) is further amended by adding at the end the 
following:
            ``(9) to make grants to financially distressed communities 
        in the State in the amounts specified in subsection (i).''.
    (f) Consistency With Planning Requirements.--Section 603(f) (33 
U.S.C. 1383(f)) is amended by striking ``is consistent'' and inserting 
``is not inconsistent''.
    (g) Construction Assistance.--Section 603(g) (33 U.S.C. 1383(g)) is 
amended to read as follows:
    ``(g) Construction Assistance.--
            ``(1) Priority list requirement.--The State may provide 
        financial assistance from its water pollution control revolving 
        fund with respect to a project for construction of a publicly 
        owned treatment works only if such project is on the State's 
        priority list under section 216 of this Act without regard to 
        the rank of such project on the State's priority list.
            ``(2) Eligibility of certain treatment works.--A treatment 
        works shall be treated as a publicly owned treatment works for 
        purposes of subsection (c) if the treatment works, without 
        regard to ownership, would be considered a publicly owned 
        treatment works and is principally treating municipal waste 
        water or domestic sewage.''.
    (h) Financially Distressed Communities.--Section 603 is amended by 
adding at the end the following:
    ``(i) Financially Distressed Communities.--
            ``(1) Grants.--
                    ``(A) In general.--In any fiscal year in which the 
                Administrator has available for obligation more than 
                $1,400,000,000 for the purposes of this title, a State 
                shall make grants to financially distressed communities 
                in the State in an amount equal to 25 percent of the 
                difference between--
                            ``(i) the total amount that would have been 
                        allotted to the State under section 604 for 
                        such fiscal year if the amount available to the 
                        Administrator for obligation under this title 
                        for such fiscal year had been equal to 
                        $1,400,000,000; and
                            ``(ii) the total amount allotted to the 
                        State under section 604 for such fiscal year.
                    ``(B) Period of availability.--Notwithstanding 
                section 604(c), amounts to be used by a State under 
                this paragraph for making grants to financially 
                distressed communities shall remain available to the 
                State until expended.
                    ``(C) Certification.--A State may make a grant to a 
                financially distressed community under this paragraph 
                only if the community certifies to the State that the 
                amounts of the grant will be used to improve water 
                quality.
            ``(2) Priority for loans.--A State may give priority to a 
        financially distressed community in making loans from its water 
        pollution control revolving fund.
            ``(3) Financially distressed community defined.--In this 
        section, the term `financially distressed community' means any 
        community that meets affordability criteria established by the 
        State in which the treatment works is located, if such criteria 
        are developed after public review and comment.
            ``(4) Information to assist states.--The Administrator may 
        publish information to assist States in establishing 
        affordability criteria under paragraph (3).''.
    (i) Design-Build.--Section 603 is further amended by adding at the 
end the following:
    ``(j) Design-Build.--
            ``(1) In general.--To the extent permitted by State law, a 
        recipient of financial assistance from a State's water 
        pollution control revolving fund may use the design-build 
        project delivery method for any project for the design and 
        construction of a publicly owned treatment works or other 
        infrastructure facility receiving such assistance.
            ``(2) Selection procedures.--In carrying out a project 
        using the design-build project delivery method, a recipient 
        described in paragraph (1) shall use the design-build selection 
        procedures established under section 303M of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 
        253m).
            ``(3) Design-build defined.--In this subsection, the term 
        `design-build' means an agreement between a recipient described 
        in paragraph (1) and a contractor that provides for the design 
        and construction of a publicly owned treatment works or other 
        infrastructure facility under a single contract.''.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

    Section 607 (33 U.S.C. 1387) is amended by striking paragraphs (1) 
through (5) and inserting the following:
            ``(1) $3,000,000,000 for fiscal year 2003;
            ``(2) $4,000,000,000 for fiscal year 2004;
            ``(3) $5,000,000,000 for fiscal year 2005;
            ``(4) $6,000,000,000 for fiscal year 2006; and
            ``(5) $7,000,000,000 for fiscal year 2007.''.

Summary: Clean Water Infrastructure and Security Improvement Act of 2002 - Amends the Federal Water Pollution Control Act to remove certain requirements for States with respect to construction of treatment works under capitalization grant agreements. Requires architectural and engineering contracts to be awarded consistent with procedures under the Federal Property and Administrative Services Act of 1949 or an equivalent State qualifications-based requirement. Directs the Administrator of the Environmental Protection Agency to assist States in establishing simplified procedures for small water systems to obtain assistance under the Act. Requires revolving funds to be used only for providing assistance for activities which have as a principal benefit the improvement or protection of water quality of navigable waters. Makes revisions concerning uses of funds for: (1) innovative technologies, (2) administrative expenses, (3) small system technical, planning, and management assistance. And (4) financially distressed communities. Revises requirements related to consistency with plans and eligibility of treatment works not considered publicly owned. Requires States to make grants to financially distressed communities in any fiscal year in which the Administrator has more than $1.4 billion available for obligation and allows a State to give priority to such communities in making loans. Allows a recipient of assistance from a State revolving fund to use the design-build project delivery method. Reauthorizes appropriations for FY 2003 through 2007 for the revolving fund program.