Union Calendar No. 247

104TH CONGRESS

2D SESSION H. R. 2747

[Report No. 104–515]

A BILL

To direct the Administrator of the Environmental

tems, and for other purposes.bilitation, and improvement of water supply systhe purpose of financing the construction, rehaProtection Agency to make grants to States for

MARCH 29, 1996

Reported with an amendment, committed to the Commitordered to be printed tee of the Whole House on the State of the Union, and
IB

Union Calendar No. 247

104TH CONGRESS

2D SESSION H. R. 2747

[Report No. 104–515]

To direct the Administrator of the Environmental Protection Agency to make

grants to States for the purpose of financing the construction, rehabilitation, and improvement of water supply systems, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

DECEMBER 7, 1995

Mr. SHUSTER (for himself, Mr. OBERSTAR, Mr. BOEHLERT, Mr. BORSKI, Mr.

CLINGER, Mr. RAHALL, Mr. PETRI, Mr. LIPINSKI, Mr. WISE, Mr. TRAFICANT, Mr. HAYES, Mr. COBLE, Mr. ZELIFF, Mr. COSTELLO, Mr.

POSHARD, Mr. HUTCHINSON, Mr. CRAMER, Mr. BAKER of California,

Miss COLLINS of Michigan, Ms. NORTON, Mr. HORN, Mr. FRANKS of

New Jersey, Ms. DANNER, Mr. BLUTE, Mr. QUINN, Mrs. FOWLER, Mr.

BARCIA, Mr. EHLERS, Mr. BACHUS, Mr. TUCKER, Ms. EDDIE BERNICE

JOHNSON of Texas, Mr. WAMP, Mr. BREWSTER, Mr. LATHAM, Mr.

LATOURETTE, Mr. MASCARA, Mrs. SEASTRAND, Mr. LAHOOD, Mr. MARTINI, and Mr. MCHALE) introduced the following bill; which was referred

to the Committee on Transportation and Infrastructure

MARCH 29, 1996

Additional sponsors: Mrs. KELLY, Mr. CLYBURN, Mr. YOUNG of Alaska, Mr.

MINGE, and Mr. WELLER

MARCH 29, 1996

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on December 7, 1995]
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A BILL

To direct the Administrator of the Environmental Protection

Agency to make grants to States for the purpose of

financing the construction, rehabilitation, and improvement of water supply systems, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Water Supply Infra5 structure Assistance Act of 1996’’.

6 SEC. 2. PURPOSES.

7 The purposes of this Act are as follows:

8 (1) To provide grants for establishment of State

9 revolving funds for the purpose of providing financial

10 and technical assistance for the construction, rehabili11 tation, and improvement of water supply systems, in12 cluding treatment to remove pollutants from navi13 gable waters for the purpose of making such waters

14 usable by water supply systems and for source water

15 quality protection programs.

16 (2) To provide for administrative efficiencies

17 through implementation of this Act relying on exist18 ing mechanisms of State water pollution control re19 volving loan fund programs established pursuant to

20 title VI of the Federal Water Pollution Control Act.
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1 SEC. 3. LIMITATION ON STATUTORY CONSTRUCTION.

2 Nothing in this Act shall be construed as affecting the

3 requirements of title XIV of the Public Health Service Act

4 (42 U.S.C. 300f–300j–9), commonly referred to as the Safe

5 Drinking Water Act.

6 SEC. 4. DEFINITIONS.

7 In this Act, the following definitions apply:

8 (1) ADMINISTRATOR.—The term ‘‘Adminis9 trator’’ means the Administrator of the Environ10 mental Protection Agency.

11 (2) DISADVANTAGED COMMUNITY.—The term

12 ‘‘disadvantaged community’’ means the service area

13 of a water supply system with respect to which the

14 average annual residential charges for a user of the

15 water supply system meet affordability criteria estab16 lished by the State in which the water supply system

17 is located (after providing for public review and com18 ment) in accordance with guidelines to be established

19 by the Administrator, in cooperation with the States.

20 (3) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has

21 the meaning such term has under section 518 of the

22 Federal Water Pollution Control Act and includes

23 Alaska Native Villages and former Indian reserva24 tions in Oklahoma.
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1 (4) SMALL WATER SUPPLY SYSTEM.—The term

2 ‘‘small water supply system’’ means a water supply

3 system that serves a population of 10,000 or fewer.

4 (5) STATE.—The term ‘‘State’’ means a State,

5 the District of Columbia, the Commonwealth of Puer6 to Rico, the Virgin Islands, Guam, American Samoa,

7 the Commonwealth of the Northern Mariana Islands,

8 and the Trust Territory of the Pacific Islands.

9 (6) WATER SUPPLY SYSTEM.—The term ‘‘water

10 supply system’’ means a system for the provision to

11 the public of piped water for human consumption if

12 such system has at least 15 service connections or reg13 ularly serves at least 25 individuals and a draw and

14 fill system for the provision to the public of water for

15 human consumption. Such term does not include a

16 for-profit system that has fewer than 15 service con17 nections used by year-round residents of the area

18 served by the system or a for-profit system that regu19 larly serves fewer than 25 year-round residents and

20 does not include a system owned by a Federal agency.

21 Such term includes (A) any collection, treatment,

22 storage, and distribution facilities under control of

23 the operator of such system and used primarily in

24 connection with such system, and (B) any collection
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1 or pretreatment facilities not under such control that

2 are used primarily in connection with such system.

3 SEC. 5. GRANTS TO STATES.

4 Subject to the provisions of this Act, the Administrator

5 shall make grants to each State for the purpose of establish6 ing a water supply infrastructure account in the State

7 water pollution control revolving loan fund programs estab8 lished pursuant to title VI of the Federal Water Pollution

9 Control Act, if any, to provide assistance (1) for the con10 struction, rehabilitation, and improvement of water supply

11 systems, and (2) consistent with nonpoint source manage12 ment programs established under section 319 of the Federal

13 Water Pollution Control Act, for source water quality pro14 tection programs to address pollutants in navigable waters

15 for the purpose of making such waters usable by water sup16 ply systems.

17 SEC. 6. GRANT AGREEMENTS.

18 (a) GENERAL RULE.—To receive a grant with funds

19 made available under section 13, a State shall enter into

20 an agreement with the Administrator which shall include,

21 but not be limited to, the specifications set forth in sub22 section (b) of this section.

23 (b) SPECIFIC REQUIREMENTS.—The Administrator

24 shall enter into an agreement under this section with a
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1 State only after the State has established to the satisfaction

2 of the Administrator that—

3 (1) the State will accept grant payments with

4 funds to be made available under this Act and will

5 deposit all such payments in the water supply infra6 structure account established by the State in accord7 ance with this Act;

8 (2) if the State has a water pollution control re9 volving fund established in accordance with title VI

10 of the Federal Water Pollution Control Act, the State

11 will establish the water supply infrastructure account

12 as a separate account in such fund;

13 (3) the State will deposit in the water supply in14 frastructure account from State moneys an amount

15 equal to at least 20 percent of the total amount of all

16 grants which will be made to the State with funds to

17 be made available under section 13 on or before (A)

18 the date on which each grant payment will be made

19 to the State under this Act (other than sections 14

20 and 15), or (B) September 30, 1998, in the case of

21 grant payments made from funds appropriated for

22 fiscal years 1995, 1996, and 1997;

23 (4) the State will enter into binding commit24 ments to provide assistance in accordance with this

25 Act in an amount equal to 120 percent of the amount
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1 of each such grant payment within 1 year after the

2 receipt of such grant payment;

3 (5) the State will not make available any assist4 ance from the account unless the State has first deter5 mined that the applicant—

6 (A) has adopted or will adopt a system of

7 charges, policies, and procedures to ensure that

8 recipients of financial assistance from the ac9 count are reasonably likely to repay the assist10 ance and will have adequate resources to pay the

11 cost of operation and maintenance (including re12 placement) of the water supply system; and

13 (B) has or will have legal, institutional,

14 technical, managerial, and financial capability

15 to ensure adequate construction, operation, and

16 maintenance of water supply systems throughout

17 the applicant’s jurisdiction;

18 (6) the State will take such action as may be

19 necessary to ensure that construction, rehabilitation,

20 and improvement of a water supply system under21 taken with funds directly made available by grants

22 under section 5 are carried out in the most cost-effec23 tive manner, as determined by the State;

24 (7) the State will take such action as may be

25 necessary to ensure that, after construction, rehabili-
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1 tation, and improvement of a water supply system

2 undertaken with funds directly made available by

3 grants under section 5, such system will provide

4 water supply services at the most economical cost, in5 cluding consideration of water conservation measures,

6 as determined by the applicant; and

7 (8) the State will make annual reports to the Ad8 ministrator on the actual use of funds in accordance

9 with section 606(d) of the Federal Water Pollution

10 Control Act.

11 SEC. 7. INCORPORATION OF FWPCA BY REFERENCE.

12 (a) GENERAL RULE.—The provisions of title VI of the

13 Federal Water Pollution Control Act shall apply as pro14 vided in this Act to accounts established by States under

15 this Act. For purposes of this Act, any reference to the Fed16 eral Water Pollution Control Act and to any section thereof

17 shall be treated as a reference to such Act or section as in

18 effect on the date of the enactment of this Act.

19 (b) TYPES OF ASSISTANCE.—

20 (1) IN GENERAL.—Section 603(d) of the Federal

21 Water Pollution Control Act shall apply to accounts

22 established by States under this Act to the same extent

23 and in the same manner as such section applies to

24 water pollution control revolving funds under such

25 Act.
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1 (2) EXCEPTIONS FOR DISADVANTAGED COMMU2 NITIES.—

3 (A) TERM OF LOAN.—Notwithstanding

4 paragraph (1), the repayment period referred to

5 in section 603(d)(1)(A) of the Federal Water Pol6 lution Control Act for a loan made from a State

7 water supply infrastructure account to a dis8 advantaged community shall be the lesser of 40

9 years or the expected life of the project to be fi10 nanced with the proceeds of the loan and the

11 date for full loan amortization referred to in sec12 tion 603(d)(1)(B) of such Act shall be the date

13 of the expiration of the term of the loan.

14 (B) NEGATIVE INTEREST RATES.—In any

15 case in which the State is making a loan from

16 its water supply infrastructure account to a dis17 advantaged community, the State may charge a

18 negative annual interest rate of not to exceed 2

19 percent to reduce the unpaid principal of the

20 loan. The aggregate amount of all such negative

21 interest rate loans the State makes in a fiscal

22 year shall not exceed 20 percent of the funds in

23 the water supply infrastructure account of the

24 State.
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1 (3) EXCEPTION FOR DISTRICT OF COLUMBIA AND

2 TERRITORIES.—In the case of a water supply infra3 structure account established by the District of Co4 lumbia, American Samoa, Guam, the Commonwealth

5 of the Northern Mariana Islands, the Commonwealth

6 of Puerto Rico, the Pacific Trust Territories, or the

7 Virgin Islands, the account may be used directly by

8 the State for construction, rehabilitation, and im9 provement of a water supply system.

10 (c) CORRECTIVE ACTION.—Section 605 of the Federal

11 Water Pollution Control Act shall apply to a State’s agree12 ment with the Administrator under this Act and to require13 ments of this Act to the same extent and in the same man14 ner as such section applies to a State’s agreement under

15 section 602 of such Act and the requirements of title VI of

16 such Act.

17 (d) AUDITS, REPORTS, AND FISCAL CONTROLS.—Sub18 sections (a), (b), (d), and (e) of section 606 of the Federal

19 Water Pollution Control Act shall apply to a State estab20 lishing an account under this Act and to such account to

21 the same extent and in the same manner as such subsections

22 apply to a State establishing a water pollution control re23 volving fund under title VI of such Act and to such fund.
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1 SEC. 8. WATER SUPPLY INFRASTRUCTURE REVOLVING

2 LOAN FUNDS.

3 (a) REQUIREMENTS FOR OBLIGATION OF GRANT

4 FUNDS.—Before a State may receive a grant with funds

5 made available under section 13, the State shall first estab6 lish a water supply infrastructure account which complies

7 with the requirements of this Act.

8 (b) ADMINISTRATOR.—Each State water supply infra9 structure account shall be administered by an instrumental10 ity of the State with such powers and limitations as may

11 be required to operate such account in accordance with the

12 requirements and purposes of this Act.

13 (c) PROJECTS ELIGIBLE FOR ASSISTANCE.—The

14 amounts of funds available to each State water supply in15 frastructure account shall be used only for providing finan16 cial assistance (1) for construction, rehabilitation, and im17 provement of water supply systems, and (2) consistent with

18 nonpoint source management programs established under

19 section 319 of the Federal Water Pollution Control Act and

20 subject to subsection (d)(3), for source water quality protec21 tion programs to address pollutants in navigable waters for

22 the purpose of making such waters usable by water supply

23 systems. In addition, amounts in such account may be used

24 to provide assistance to undertake feasible and appropriate

25 changes in operations of the water supply system (including

26 ownership, management, accounting, rates, maintenance,
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1 consolidation, alternative water supply, or other proce2 dures) if the State determines that such measures are nec3 essary to ensure adequate construction, operation, and

4 maintenance of the water supply system. The account shall

5 be established, maintained, and credited with repayments,

6 and the account balance shall be available in perpetuity

7 for providing such assistance.

8 (d) TYPES OF ASSISTANCE.—In addition to the types

9 of assistance which may be made available under section

10 603(d) of the Federal Water Pollution Control Act from a

11 water supply infrastructure account of a State under this

12 Act—

13 (1) up to 2 percent of the funds in such account

14 may be used to provide technical assistance with re15 spect to construction, rehabilitation, and improve16 ment of water supply systems;

17 (2) up to 10 percent of the funds in such account

18 may be used to provide technical and financial assist19 ance described in subsection (c)(2);

(3) up to 1 20 ⁄4 of the 10 percent set-aside under

21 paragraph (2) may be used to make grants to pay 50

22 percent of the cost of the source water quality protec23 tion programs described in subsection (c)(2); and
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1 (4) such account may be used to provide loan

2 guarantees for developing and implementing innova3 tive technologies.

4 (e) ACQUISITION OF LANDS.—Assistance provided with

5 funds made available under section 13 may be used for the

6 acquisition of lands and other interests in lands; however,

7 nothing in this Act authorizes the acquisition of lands or

8 other interests in lands from other than willing sellers.

9 SEC. 9. ALLOTMENT OF FUNDS.

10 (a) FISCAL YEAR 1996.—Sums authorized to be ap11 propriated pursuant to section 13 for fiscal year 1996 shall

12 be allotted for such year by the Administrator not later than

13 the 10th day which begins after the date of the enactment

14 of this Act. Sums authorized for such fiscal year shall be

15 allotted in accordance with the following table:

States: Percentages:

Alabama .............................................................................................. 0.98

Alaska ................................................................................................. 2.34

Arizona ............................................................................................... 1.36

Arkansas ............................................................................................. 0.98

California ........................................................................................... 6.27

Colorado .............................................................................................. 1.35

Connecticut ......................................................................................... 1.73

Delaware ............................................................................................. 0.63

District of Columbia .......................................................................... 0.52

Florida ................................................................................................ 3.72

Georgia ................................................................................................ 2.10

Hawaii ................................................................................................ 0.60

Idaho ................................................................................................... 1.13

Illinois ................................................................................................ 3.16

Indiana ............................................................................................... 2.10

Iowa .................................................................................................... 1.36

Kansas ................................................................................................ 1.12

Kentucky ............................................................................................. 0.95

Louisiana ............................................................................................ 1.65

Maine .................................................................................................. 1.00

Maryland ............................................................................................ 1.42
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Massachusetts ..................................................................................... 1.15

Michigan ............................................................................................. 4.93

Minnesota ........................................................................................... 3.47

Mississippi .......................................................................................... 1.32

Missouri .............................................................................................. 1.77

Montana .............................................................................................. 1.19

Nebraska ............................................................................................. 1.02

Nevada ................................................................................................ 0.85

New Hampshire ................................................................................. 1.09

New Jersey .......................................................................................... 2.28

New Mexico ......................................................................................... 1.01

New York ............................................................................................ 4.90

North Carolina ................................................................................... 3.80

North Dakota ...................................................................................... 0.76

Ohio ..................................................................................................... 3.55

Oklahoma ............................................................................................ 1.41

Oregon ................................................................................................. 1.53

Pennsylvania ...................................................................................... 4.41

Rhode Island ...................................................................................... 0.61

South Carolina ................................................................................... 1.18

South Dakota ..................................................................................... 0.82

Tennessee ............................................................................................ 1.01

Texas ................................................................................................... 5.81

Utah .................................................................................................... 0.87

Vermont .............................................................................................. 0.81

Virginia .............................................................................................. 2.41

Washington ......................................................................................... 2.55

West Virginia ..................................................................................... 0.98

Wisconsin ............................................................................................ 3.42

Wyoming ............................................................................................. 0.81

American Samoa ............................................................................... 0.18

Guam .................................................................................................. 0.17

Northern Marianas ............................................................................ 0.17

Puerto Rico ......................................................................................... 0.81

Pacific Trust Territories ................................................................... 0.17

Virgin Islands .................................................................................... 0.31.

1 (b) FISCAL YEARS 1997 THROUGH 2000.—Sums au2 thorized to be appropriated pursuant to section 13 for each

3 of fiscal years 1997 through 2000 shall be allotted by the

4 Administrator in accordance with the relative needs of the

5 States for construction, rehabilitation, and improvement of

6 water supply systems and for source water quality protec7 tion programs described in section 5, as determined by the

8 Administrator, in consultation with the States.
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1 (c) RESERVATION OF FUNDS FOR INDIAN TRIBES.—

2 (1) IN GENERAL.—Notwithstanding subsections

3 (a) and (b), the Administrator shall reserve for each

4 fiscal year not to exceed 1.5 percent of the amount

5 made available to carry out section 13 for such fiscal

6 year for the purpose of making grants to Indian

7 tribes for construction, rehabilitation, and improve8 ment of water supply systems.

9 (2) ALASKA NATIVE VILLAGES.—In the case of a

10 grant under this subsection for a project in an Alaska

11 Native village, the Administrator is also authorized to

12 make grants to the State of Alaska for the benefit of

13 Native villages. An amount not to exceed 4 percent of

14 the grant amount may be used by the State of Alaska

15 for project management.

16 (d) ALLOTMENT PERIOD.—

17 (1) PERIOD OF AVAILABILITY FOR GRANT

18 AWARD.—Sums allotted to a State under this section

19 for a fiscal year shall be available for obligation by

20 the State during the fiscal year for which sums are

21 authorized and during the following fiscal year; ex22 cept that for sums allotted in fiscal year 1996, such

23 period of availability shall be fiscal years 1996

24 through 1998.
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1 (2) REALLOTMENT OF UNOBLIGATED FUNDS.—

2 The amount of any allotment not obligated by the

3 State by the last day of the period of availability es4 tablished by paragraph (1) shall be immediately real5 lotted by the Administrator on the basis of the same

6 ratio as is applicable to sums allotted under this sec7 tion for the second fiscal year of such period. None of

8 the funds reallotted by the Administrator shall be re9 allotted to any State which has not obligated all sums

10 allotted to such State in the first fiscal year of such

11 period.

12 SEC. 10. INTENDED USE PLANS.

13 (a) IN GENERAL.—After providing for public review

14 and comment, each State establishing a water supply infra15 structure account under this Act shall annually prepare a

16 plan that identifies the intended uses of the amounts in the

17 account.

18 (b) CONTENTS.—An intended use plan shall include—

19 (1) a list of the projects to be assisted in the first

20 fiscal year that begins after the date of the plan, in21 cluding a description of the project, the expected terms

22 of financial assistance, and the size of the service

23 area;

24 (2) a determination of the priority to be given

25 to such projects, taking into account the relative fi-
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1 nancial and other needs for construction, rehabilita2 tion, and improvement of water supply systems and

3 for source water quality protection within the bound4 aries of the State;

5 (3) the criteria and methods established for the

6 distribution of funds; and

7 (4) a description of the financial status of the

8 water supply infrastructure account.

9 SEC. 11. NEEDS SURVEY.

10 (a) IN GENERAL.—The Administrator, in cooperation

11 with the States and Indian tribes, shall make—

12 (1) a detailed estimate, biennially revised, of the

13 cost of needed construction, rehabilitation, and im14 provement of water supply systems in the States and

15 Indian tribes and of the cost of needed construction

16 in each of the States and Indian tribes; and

17 (2) a comprehensive study of the economic im18 pact on affected units of government of the costs of in19 stallation of water supply systems and parts thereof.

20 (b) SUBMISSION TO CONGRESS.—The Administrator

21 shall submit the detailed estimate and the comprehensive

22 study of costs under subsection (a) to Congress no later than

23 January 1, 1998, and January 1 of each even-numbered

24 year thereafter. The Administrator shall also submit rec25 ommendations for allotment of funds under section 9 to the
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1 States based on such estimates and on such additional fac2 tors as the Administrator deems appropriate, including fi3 nancial need. Whenever the Administrator, pursuant to this

4 section, requests and receives an estimate of costs from a

5 State, the Administrator shall furnish copies of such esti6 mate together with such detailed estimate to Congress.

7 SEC. 12. BUY AMERICAN.

8 (a) SENSE OF CONGRESS.—It is the sense of Congress

9 that a recipient of assistance under this Act should purchase

10 American-made equipment and products.

11 (b) NOTICE.—The Administrator shall provide to each

12 recipient of assistance under this Act a notice describing

13 the sense of Congress set forth in subsection (a).

14 SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

15 There is authorized to be appropriated to carry out

16 this Act (other than sections 14 and 15)—

17 (1) $500,000,000 for fiscal year 1996;

18 (2) $750,000,000 for fiscal year 1997;

19 (3) $1,000,000,000 for fiscal year 1998;

20 (4) $1,000,000,000 for fiscal year 1999; and

21 (5) $1,000,000,000 for fiscal year 2000.

22 Such sums shall remain available until expended.
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1 SEC. 14. TECHNICAL AND ENVIRONMENTAL FINANCING AS2 SISTANCE.

3 (a) TECHNICAL ASSISTANCE FOR SMALL WATER SUP4 PLY SYSTEMS.—

5 (1) GRANTS.—The Administrator may make

6 grants to States, local governments, and nonprofit or7 ganizations to provide technical assistance and train8 ing to owners and operators of small water supply

9 systems (including systems that utilize an alternative

10 treatment technology) to enable the systems to achieve

11 the purposes of this Act.

12 (2) DISSEMINATION OF INFORMATION.—The Ad13 ministrator may disseminate information to commu14 nities with respect to the planning, design, construc15 tion, and operation of water supply systems.

16 (3) AUTHORIZATION OF APPROPRIATIONS.—

17 There is authorized to be appropriated to carry out

18 this subsection $13,000,000 for each of fiscal years

19 1996 through 2000. Such sums shall remain available

20 until expended.

21 (b) ENVIRONMENTAL FINANCE CENTERS.—

22 (1) IN GENERAL.—The Administrator shall sup23 port the network of university-based Environmental

24 Finance Centers in providing technical assistance to

25 State and local officials to enable water supply sys26 tems to meet the purposes of this Act.
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1 (2) EMPHASIS.—Assistance authorized under

2 this subsection shall be used by Environmental Fi3 nance Centers to increase the capabilities of State and

4 local officials to fund, operate, and maintain water

5 supply systems and source water quality protection

6 programs, as described in section 5 of this Act, with

7 greater involvement of private sector and public, non8 Federal sector participants.

9 (3) AUTHORIZATION OF APPROPRIATIONS.—

10 There is authorized to be appropriated to carry out

11 this subsection $2,000,000 for each of fiscal years

12 1996 through 2000. Such funds shall remain available

13 until expended.

14 SEC. 15. ADDITIONAL ASSISTANCE FOR WATER INFRA15 STRUCTURE AND WATERSHEDS.

16 (a) GENERAL PROGRAM.—

17 (1) IN GENERAL.—The Administrator may pro18 vide technical and financial assistance in the form of

19 grants to States (A) for the construction, rehabilita20 tion, and improvement of water supply systems, and

21 (B) consistent with nonpoint source management pro22 grams established under section 319 of the Federal

23 Water Pollution Control Act, for source water quality

24 protection programs to address pollutants in navi-
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1 gable waters for the purpose of making such waters

2 usable by water supply systems.

3 (2) LIMITATION.—Not more than 30 percent of

4 the amounts appropriated to carry out this subsection

5 in a fiscal year may be used for source water quality

6 protection programs described in paragraph (1)(B).

7 (3) CONDITION.—As a condition to receiving as8 sistance under this subsection, a State shall ensure

9 that such assistance is carried out in the most cost10 effective manner, as determined by the State.

11 (4) AUTHORIZATION OF APPROPRIATIONS.—

12 There is authorized to be appropriated to carry out

13 this subsection $50,000,000 for each of fiscal years

14 1996 through 2000. Such sums shall remain available

15 until expended.

16 (b) NEW YORK CITY WATERSHED, NEW YORK.—

17 (1) IN GENERAL.—The Administrator may pro18 vide technical and financial assistance in the form of

19 grants for a source water quality protection program

20 described in subsection (a) for the New York City Wa21 tershed in the State of New York.

22 (2) AUTHORIZATION OF APPROPRIATIONS.—

23 There is authorized to be appropriated to carry out

24 this subsection $15,000,000 for each of fiscal years
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1 1996 through 2000. Such sums shall remain available

2 until expended.

3 (c) RURAL AND NATIVE VILLAGES, ALASKA.—

4 (1) IN GENERAL.—The Administrator may pro5 vide technical and financial assistance in the form of

6 grants to the State of Alaska for the benefit of rural

7 and Alaska Native villages for the development and

8 construction of water systems to improve conditions

9 in such villages and to provide technical assistance

10 relating to construction and operation of such sys11 tems.

12 (2) CONSULTATION.—The Administrator shall

13 consult the State of Alaska on methods of prioritizing

14 the allocation of grants made to such State under this

15 subsection.

16 (3) ADMINISTRATIVE EXPENSES.—The State of

17 Alaska may use not to exceed 4 percent of the amount

18 granted to such State under this section for adminis19 trative expenses necessary to carry out the activities

20 for which the grant is made.

21 (4) AUTHORIZATION OF APPROPRIATIONS.—

22 There is authorized to be appropriated to carry out

23 this subsection $25,000,000. Such sums shall remain

24 available until expended.
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1 (d) ACQUISITION OF LANDS.—Assistance provided

2 with funds made available under this section may be used

3 for the acquisition of lands and other interests in lands;

4 however, nothing in this Act authorizes the acquisition of

5 lands or other interests in lands from other than willing

6 sellers.

7 (e) FEDERAL SHARE.—The Federal share of the cost

8 of activities for which grants are made under this section

9 shall be 50 percent.

10 (f) CONDITION ON AUTHORIZATIONS OF APPROPRIA11 TIONS.—An authorization of appropriations under this sec12 tion shall be in effect for a fiscal year only if at least 75

13 percent of the total amount of funds authorized to be appro14 priated for such fiscal year by section 13 are appropriated.