A bill to amend the Federal Water Pollution Control Act to establish a National Clean and Sage Water Fund and to authorize the Administrator of the Environmental Protection Agency to use amounts in the Fund to carry out projects to promote the recovery of waters of the United States from damage resulting from violations of that Act and the Safe Drinking Water Act, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Clean and Safe Water Fund 
Act of 2003''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the Administrator of the Environmental Protection 
        Agency has determined that more than 40 percent of the assessed 
        water of the United States does not meet applicable water 
        quality standards established by States, territories, and 
        Indian tribes;
            (2) the water described in paragraph (1) includes 
        approximately 300,000 miles of rivers and shorelines, and 
        approximately 5,000,000 acres of lakes, that are polluted by 
        sediments, excess nutrients, and harmful microorganisms;
            (3) Congress enacted--
                    (A) the Federal Water Pollution Control Act (33 
                U.S.C. 1251 et seq.) to maintain the chemical, 
                physical, and biological integrity of water of the 
                United States; and
                    (B) the Safe Drinking Water Act (42 U.S.C. 300f et 
                seq.) to protect public health by regulating the public 
                drinking water supply of the United States;
            (4) because criminal, civil, and administrative penalties 
        assessed under the Acts referred to in paragraph (3) are 
        returned to the Treasury, those amounts are not available to 
        protect, preserve, or enhance the quality of water in 
        watersheds in which violations of those Acts occur; and
            (5) the establishment of a national clean and safe water 
        fund would help States in achieving the goals described in 
        paragraph (1) by providing funding to protect and improve 
        watersheds and aquifers.

SEC. 3. NATIONAL CLEAN AND SAFE WATER FUND.

    Section 309 of the Federal Water Pollution Control Act (33 U.S.C. 
1319) is amended by adding at the end the following:
    ``(h) National Clean and Safe Water Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        a fund to be known as the `National Clean and Safe Water Fund' 
        (referred to in this subsection as the `Fund') consisting of 
        amounts transferred to the Fund under paragraph (2) and amounts 
        credited to the Fund under paragraph (3).
            ``(2) Transfer of amounts.--Notwithstanding any other 
        provision of law, for fiscal year 2003 and each fiscal year 
        thereafter, the Secretary of the Treasury shall transfer to the 
        Fund an amount determined by the Secretary to be equal to the 
        total amount deposited in the general fund of the Treasury in 
        the preceding fiscal year from fines, penalties, and other 
        funds collected as a result of enforcement actions brought 
        under this section, section 505(a)(1), or the Safe Drinking 
        Water Act (42 U.S.C. 300f et seq.), excluding any amounts 
        ordered to be used to carry out projects in accordance with 
        subsection (d).
            ``(3) Investment of amounts.--
                    ``(A) In general.--The Secretary of the Treasury 
                shall invest in interest-bearing obligations of the 
                United States such portion of the Fund as is not, in 
                the judgment of the Secretary, required to meet current 
                withdrawals.
                    ``(B) Administration.--The obligations shall be 
                acquired and sold and interest on, and the proceeds 
                from the sale or redemption of, the obligations shall 
                be credited to the Fund in accordance with section 9602 
                of the Internal Revenue Code of 1986.
            ``(4) Use of amounts for water quality projects.--
                    ``(A) In general.--Amounts in the Fund shall be 
                available to the Administrator, subject to 
                appropriation, to carry out projects the primary 
                purpose of which is water quality maintenance or 
                improvement, including--
                            ``(i) water conservation projects;
                            ``(ii) wetland protection and restoration 
                        projects;
                            ``(iii) contaminated sediment projects;
                            ``(iv) drinking water source protection 
                        projects;
                            ``(v) projects consisting of best 
                        management practices that reduce pollutant 
                        loads in an impaired or threatened body of 
                        water;
                            ``(vi) decentralized stormwater or 
                        wastewater treatment projects, including low-
                        impact development practices;
                            ``(vii) projects consisting of conservation 
                        easements or land acquisition for water quality 
                        protection;
                            ``(viii) projects consisting of 
                        construction or maintenance of stream buffers;
                            ``(ix) projects for planning, design, and 
                        construction of treatment works to remediate or 
                        control combined or sanitary sewer overflows; 
                        and
                            ``(x) such other similar projects as the 
                        Administrator determines to be appropriate.
                    ``(B) Limitations on use of funds.--Amounts in the 
                Fund--
                            ``(i)(I) shall be used only to carry out 
                        projects described in subparagraph (A); and
                            ``(II) shall not be used by the 
                        Administrator to pay the cost of any legal or 
                        administrative expense incurred by the 
                        Administrator (except a legal or administrative 
                        expense relating to administration of the 
                        Fund); and
                            ``(ii) shall be in addition to any amount 
                        made available to carry out projects described 
                        in subparagraph (A) under any other provision 
                        of law.
            ``(5) Selection of projects.--
                    ``(A) Priority.--In selecting among projects 
                eligible for assistance under this subsection, the 
                Administrator shall give priority to a project 
                described in paragraph (4) that is located in a 
                watershed in a State in which there has occurred a 
                violation under this Act or the Safe Drinking Water Act 
                (42 U.S.C. 300f et seq.) for which an enforcement 
                action was brought that resulted in the payment of an 
                amount into the general fund of the Treasury.
                    ``(B) Selection criteria.--The Administrator, in 
                consultation with the United States Geological Survey 
                and other appropriate agencies, shall establish 
                criteria that maximize water quality improvement in 
                watersheds and aquifers for use in selecting projects 
                to carry out under this subsection.
                    ``(C) Coordination with states.--In selecting a 
                project to carry out under this subsection, the 
                Administrator shall coordinate with the State in which 
                the Administrator is considering carrying out the 
                project.
            ``(6) Implementation.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Administrator may carry out a project under this 
                subsection making grants to--
                            ``(i) another Federal agency;
                            ``(ii) a State agency;
                            ``(iii) a political subdivision of a State;
                            ``(iv) a publicly-owned treatment works;
                            ``(v) a nonprofit entity;
                            ``(vi) a public water system (as defined in 
                        section 1401 of the Safe Drinking Water Act (42 
                        U.S.C. 300f));
                            ``(vii) a Federal interstate water compact 
                        commission;
                            ``(viii) an Indian tribe (as defined in 
                        section 4 of the Indian Self-Determination and 
                        Education Assistance Act (25 U.S.C. 450b)); or
                            ``(ix) a Native Hawaiian (as defined in 
                        section 12 of the Native Hawaiian Health Care 
                        Improvement Act (42 U.S.C. 11710)).
                    ``(B) Exclusion.--Under subparagraph (A), the 
                Administrator may not make any grant to or enter into 
                any contract with any private entity that is subject to 
                regulation under--
                            ``(i) this Act; or
                            ``(ii) the Safe Drinking Water Act (42 
                        U.S.C. 300f et seq.).
            ``(7) Report to congress.--Not later than 1 year after the 
        date of enactment of this subsection and biennially thereafter, 
        the Administrator shall submit to Congress a report that--
                    ``(A) identifies the projects selected for funding 
                under this subsection during the period covered by the 
                report;
                    ``(B) details the selection criteria established 
                under paragraph (5)(B) that were used to select those 
                projects;
                    ``(C) describes the ways in which the Administrator 
                coordinated with States under paragraph (5)(C) in 
                selecting those projects; and
                    ``(D) describes the priorities for use of funds 
                from the Fund in future years in order to achieve water 
                quality goals in bodies of impaired or threatened 
                water.
            ``(8) No effect on obligation to comply.--Nothing in this 
        subsection affects the obligation of any person subject to this 
        Act or the Safe Drinking Water Act (42 U.S.C. 300f et seq.) to 
        comply with either of those Acts.''.

SEC. 4. USE OF CIVIL PENALTIES FOR REMEDIAL PROJECTS.

    (a) In General.--Section 309(d) of the Federal Water Pollution 
Control Act (33 U.S.C. 1319(d)) is amended by inserting after the 
second sentence the following: ``The court may order that a civil 
penalty assessed under this Act or the Safe Drinking Water Act (42 
U.S.C. 300f et seq.) (other than a civil penalty that would otherwise 
be deposited in the Oil Spill Liability Trust Fund under section 9509 
of the Internal Revenue Code of 1986) be used to carry out 1 or more 
projects in accordance with clauses (i) through (iv) of subsection 
(h)(4)(A).''.
    (b) Conforming Amendment.--Section 505(a) of the Federal Water 
Pollution Control Act (33 U.S.C. 1365(a)) is amended in the last 
sentence by inserting before the period at the end the following: ``, 
including ordering the use of a civil penalty for carrying out projects 
in accordance with section 309(d)''.

Summary: National Clean and Safe Water Fund Act of 2003 - Amends the Federal Water Pollution Control Act to establish a National Clean and Sage Water Fund to carry out water quality projects. Grants priority to projects located in a watershed in a State where there has been a violation of that Act or the Safe Drinking Water Act. Permits the use of civil penalties assessed under that Act or the Safe Drinking Water Act to be used for these remedial projects.