69–010 

Calendar No. 1092 

110TH CONGRESS REPORT " ! SENATE 2d Session 110–509 

WATER INFRASTRUCTURE FINANCING ACT OF 2008 

SEPTEMBER 26 (legislative day, SEPTEMBER 17), 2008.—Ordered to be printed 

Mrs. BOXER, from the Committee on Environment and Public 

Works, submitted the following 

R E P O R T 

together with 

ADDITIONAL VIEWS 

[Including an estimate by the Congressional Budget Office] 

The Committee on Environment and Public Works considered an 

original bill to amend the Federal Water Pollution Control Act and 

the Safe Drinking Water Act to improve water and wastewater infrastructure in the United States, and reports favorably thereon 

and recommends that the bill, as amended, do pass. 

PURPOSES OF THE LEGISLATION

The Water Infrastructure Financing Act of 2008 would reauthorize the Clean Water Act State Revolving Fund and the Safe Drinking Water Act State Revolving Fund to improve wastewater and 

drinking water infrastructure in America. It also makes improvements to these and related programs. 

GENERAL STATEMENT AND BACKGROUND

The nationwide need for investment in water and wastewater infrastructure through the State Revolving Funds continues to far 

outpace the amount of funding that is available on all levels of government. The EPA estimates that the capital investment shortfall 

for wastewater infrastructure ranges from $73 billion to $177 billion over 20 years. 

A 2000 EPA report, entitled Progress in Water Quality, states 

that ‘‘without continued improvements in wastewater treatment infrastructure, future population growth will erode away many of the 


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Clean Water Act achievements in effluent loading reduction.’’ EPA 

projects that given the expansion of the U.S. population forecast 

over the next 20 years, even with expected increases in wastewater 

treatment efficiencies, by 2016, wastewater treatment plants, nationwide, may discharge pollutants into U.S. waters at levels similar to those that existed in the mid-1970s, only a few years removed from the enactment of the Clean Water Act. 

This legislation would authorize $19.6 billion in appropriations 

from 2008 through 2012 for the EPA to give capitalization grants 

for the Clean Water State Revolving Fund (SRF) program. The bill 

would authorize appropriations of $14.7 billion over the 2008–2012 

period for the EPA to provide grants within the Safe Drinking 

Water Act SRF program. Grants within the SRF programs are used 

to help States in making low-interest loans to local communities to 

build wastewater treatment facilities to treat wastewater and 

drinking water. The bill also makes programmatic changes to the 

SRFs and establishes and improves other related grant and technical assistance programs. 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title; table of contents 

This section provides that the Act may be cited as the ‘‘Water Infrastructure Financing Act’’. 

TITLE I—WATER POLLUTION INFRASTRUCTURE

Section 101. Technical assistance for rural small treatment works 

and medium treatment works 

This section would authorize the Administrator of the Environmental Protection Agency to make grants on a competitive basis to 

nonprofit organizations that are qualified to provide technical assistance on wastewater and stormwater approaches to owners and 

operators of small and medium treatment works. 

This section would authorize annual appropriations for each of fiscal years 2009–2013 of $25,000,000 for grants for small treatment works and $15,000,000 for grants for medium treatment 

works. 

Section 102. Projects eligible for assistance 

This section describes the projects eligible for assistance from the 

State Water Pollution Control Revolving Loan Fund. 

Section 103. Affordability 

This section would amend section 603 of the Clean Water Act (33 

U.S.C. 1383) to make the program more affordable to States and 

municipalities, including by extending the terms of loans made 

under section 603 of the Clean Water Act to the lesser of 30 years 

or the design life of the project; increasing the State’s allowable administrative costs to 6 percent; providing additional assistance to 

disadvantaged communities with loan subsidies, including loan forgiveness and negative interest rates, up to 30 percent of the capitalization grant received by the State in a fiscal year. 

This section would authorize a State to forgive repayment of up 

to 5 percent of loans for the percentage of a project that treats or 

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tralized stormwater or wastewater controls; low-impact development technologies; stream buffers; wetland restoration and enhancement; actions to minimize impervious surfaces; use of vegetation and other permeable materials; and actions to increase efficient water use, conservation, and reuse. 

Section 104. Water Pollution Control Revolving Fund 

This section would establish a priority system for each State in 

implementing the State Water Pollution Control Revolving Loan 

Fund, including giving greater weight to an application that proposes approaches other than the traditional waste water approach 

(which consists of collection sewers, centralized treatment works, 

and a direct point source discharge to surface water) using decentralized stormwater or wastewater controls; low-impact development technologies; stream buffers; wetland restoration and enhancement; actions to minimize impervious surfaces; use of vegetation and other permeable materials; and actions to increase efficient water use, conservation, and reuse. 

Section 105. Transferability of funds 

This section would authorize the Governor of a State to reserve 

up to 33 percent of a capitalization grant under title II of the Clean 

Water Act and add those funds to funds provided to the State 

under section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j– 

12), and to reserve up to that amount from capitalization grants 

made under section 1452 of the Safe Drinking Water Act and add 

those funds to any funds the State received under title II of the 

Clean Water Act. The reserved funds would not be considered for 

purposes of the State’s matching funds for a capitalization grant 

under title II of the Clean Water Act. 

Section 106. Noncompliance 

This section would generally prohibit assistance (other than for 

purposes of planning, design, or security) to an owner or operator 

of a treatment works that has been in significant noncompliance 

with the Clean Water Act, unless the Administrator and the State 

determines that the enforcement agency has determined that the 

assistance will enable the owner to take corrective action or would 

assist the owner in making progress toward compliance. 

Section 107. Negotiation of contracts 

This section would require that certain contracts to be carried 

out with funds directly made available by a capitalization grant be 

negotiated in the same manner as a contract for architectural and 

engineering services under chapter 11 of title 40, United States 

Code, or equivalent State qualifications-based requirement. Small 

communities of 10,000 or fewer would be exempted from this requirement. 

Section 108. Allotment of funds 

This section would allow each State to reserve the greater of 2 

percent or $100,000 from its fiscal year allotment to carry out planning under sections 205(j) and 303(e) of the Clean Water Act, and 

requires 1.5 percent of those funds be allocated to Indian Tribes. 


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Section 109. Authorization of appropriations 

This section would authorize appropriations of $16.8 billion over 

5 years for the capitalization of state revolving funds as follows: 

$3.2 billion in each of fiscal years 2008 and 2009, $3.6 billion in 

fiscal year 2010, $4 billion in fiscal year 2011, and $6 billion in fiscal year 2012. Section 109 would authorize the Administrator to reserve not more than $100,000 of the amounts made available in 

each fiscal year to conduct needs surveys. 

Section 110. Sewer overflow control grants 

This section would authorize the Administrator to make grants 

for fiscal years 2008–2012 to prevent sewer overflows. Projects that 

receive grants under this section would be subject to the same requirements as a project that receives assistance from a State water 

pollution control revolving fund. 

This section would authorize appropriations of $2 billion over 5 

years for sewer overflow control grants as follows: $375 million for 

each of fiscal years 2008–2011, and $500 million for fiscal year 

2012. For each of fiscal years 2008 and 2009, the Administrator is 

required to use the priority criteria in section 221(b) (33 U.S.C. 

1301(b)), with additional priority given to projects that use nonstructural, low-impact development, water conservation, efficiency 

or reuse, or other decentralized stormwater or wastewater approaches. Starting in fiscal year 2010, the Administrator would be 

required to provide sewer overflow control grants in accordance 

with the needs survey required conducted under section 210 (33 

U.S.C. 1290). 

Section 111. Capitalization grant agreements 

This section would provide that treatment works constructed, in 

whole or in part, using State loan funds must meet the requirements of section 513 of the Clean Water Act (33 U.S.C. 1372) relating to labor standards. 

Section 112. Critical water infrastructure projects 

This section would require the Administrator to establish a watershed restoration grant program to protect or improve water 

quality. Section 112 would authorize the Administrator to enter 

into agreements with one or more non-Federal entities to carry watershed restoration projects, which may include projects that are 

included in a State’s intended use plan developed under section 

606(c) of the Clean Water Act (33 U.S.C. 1386(c)). The non-Federal 

entities would be required to pay 45 percent of the total project 

costs, which may include in-kind contributions. The Administrator 

may waive the cost-sharing requirement based on financial hardship. 

This section would authorize appropriations of $50 million for 

each fiscal year 2008 through 2012. 

TITLE II—SAFE DRINKING WATER INFRASTRUCTURE

Section 201. Contaminant prevention, detection, and response 

This section would require the Administrator to submit a report 

to Congress, within 180 days of enactment, concerning progress in 

implementing section 1434 of the Safe Drinking Water Act (42 


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U.S.C. 300i–3). Section 201 would also require the Administrator 

to develop and carry our an implementation plan for section 1434, 

incorporating results of the report. 

Section 202. Drinking water technical assistance for communities 

This section would reauthorize and amend the form of assistance, 

priorities, and other requirements for technical assistance under 

section 1442(e) of the Safe Drinking Water Act. This section would 

allow for well system nonprofit technical assistance to be included 

under section 1442(e) of the Safe Drinking Water Act. 

Section 203. Preservation of employee labor standards 

This section would require that contractors financed, in whole or 

in part, with financial assistance provided under the Safe Drinking 

Water Act, including State loan funds under section 1452, pay 

workers the prevailing wage. 

Section 204. Preconstruction work 

This section would amend section 1452(a)(2) of the Safe Drinking 

Water Act (42 U.S.C. 300j–12(a)(2)) to allow the use of State loan 

funds for replacing or rehabilitating aging treatment, storage, or 

distribution facilities or to upgrade security of public water systems. Section 204 also allows the use of loan funds for payment of 

certain costs of general obligation bonds issued by the State to provide matching funds. 

Section 205. Priority system requirements 

This section would establish a priority system to be used for 

funding projects that addresses the most serious risks to human 

health, are necessary to ensure compliance with the Act, and assist 

the public water systems in the most need. 

Section 206. Affordability 

This section would amend section 1452(d)(3) of the Safe Drinking 

Water Act (42 U.S.C. 300j–12(d)(3)) to expand the definition of a 

‘‘disadvantaged community’’ to include a portion of a service area. 

Section 207. Safe drinking water revolving loan funds 

This section would authorize a State to reserve up to 33 percent 

of the capitalization grant made under section 1452(g) of the Safe 

Drinking Water Act (42 U.S.C. 300j–12(g)) and transfer those funds 

to any funds provided the State under section 601 of the Clean 

Water Act (33 U.S.C. 1381), and to reserve up to that amount from 

capitalization grants made under section 601 of the Clean Water 

Act and add those funds to any funds the State received under section 1452(g) of the Safe Drinking Water Act. The reserved funds 

would not be considered for purposes of the State’s matching funds 

for a capitalization grant under 602(b) of the Clean Water Act. 

Section 207 also would make certain technical corrections to section 1452(g)) of the Safe Drinking Water Act. 

Section 208. Other authorized activities 

This section authorizes the use of capitalization grant funds to 

implement source water protection plans. 


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Section 209. Authorization of appropriations 

Section 208 would authorize appropriations of $13 billion over 5 

years for the capitalization of state revolving funds as follows: $1.5 

billion in fiscal years 2008, $2 billion in each of fiscal years 2009 

and 2010, $3.5 billion in fiscal year 2011, and $6 billion in fiscal 

year 2012. Section 209 would authorize the Administrator to reserve not more than $100,000 of the amounts made available in 

each fiscal year to conduct needs surveys. 

Section 210. Negotiation of contracts 

Section 209 would require that certain contracts to be carried out 

with funds directly made available by a capitalization grant under 

Section 1452 of the Safe Drinking Water Act be negotiated in the 

same manner as a contract for architectural and engineering services under chapter 11 of title 40, United States Code, or equivalent 

State qualifications-based requirement. Small communities of 

10,000 or fewer would be exempted from this requirement. 

Section 211. Critical drinking water infrastructure projects 

This section requires the Administrator to establish a grant program to eligible entities for use in carrying out project and activities to assist community water systems in meeting the requirements of the Safe Drinking Water Act. The section authorizes $300 

million for each of fiscal years 2008 through 2012. 

Section 212. District of Columbia lead service line replacement 

This section authorizes $30 million to carry out lead service line 

replacement in the District of Columbia and establishes certain 

conditions and limitations of lead service line replacement. 

TITLE III—MISCELLANEOUS

Section 301. Definitions 

This section defines certain terms within this title. 

Section 302. Program for water quality enhancement and management 

This section requires the Administrator to establish a program 

for water quality enhancement and management within the EPA. 

It also requires the Administrator to establish a nationwide demonstration grant program on innovative and nontraditional water 

technologies. It authorizes $20 million for fiscal years 2008–2012. 

Section 303. Agricultural Pollution Control Technology Grant Program 

This section requires the Administrator to provide capitalization 

grants of no more than $1 million per State to establish an agricultural pollution control technology State revolving fund. The section 

establishes state eligibility requirements and other conditions. The 

section authorizes $50 million in appropriations to carry out this 

section. 

Section 304. State revolving fund review process 

This section requires the Administrator to consult with States, 

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viding financial assistance to identify ways to expedite and improve 

the application and review process, for the provision of assistance 

from the Clean Water Act and Safe Drinking Water Act State Revolving Funds. It also requires the Administrator to take administrative action necessary to expedite and improve the process, and 

collect information relating to innovative approaches taken by any 

State to simply the application process. 

Section 305. Cost of service study 

This section requires the Administrator to enter into an agreement with the National Academy of Sciences to conduct a study regarding public water systems and treatment works and the costs 

associated with operations, maintenance, capital replacement, and 

regulatory requirements. 

Section 306. Water management study 

This section requires the Administrator to enter into an agreement with the National Academy of Sciences to conduct a study 

looking at innovative, effective, and systematic approaches for the 

management of water supply, wastewater, and stormwater in 

urban areas and surrounding communities throughout the United 

States and other countries. 

Section 307. Reduction in authorization of appropriations 

This section requires that each amount authorized to be appropriated under this Act will be reduced by 2 percent. 

LEGISLATIVE HISTORY

The Water Infrastructure Investment Act was an original bill 

sponsored by Senator Lautenberg, drafted in cooperation with Senators Boxer, Inhofe, and Vitter. On September 17, 2008 the Committee on Environment and Public Works held a Business Meeting, 

at which Senator Lautenberg offered an amendment making certain technical changes to the bill, and the amendment was agreed 

to by voice vote. Senator Lautenberg also offered an amendment 

applying Davis-Bacon prevailing wage requirements to contract negotiations under these programs—that amendment was passed by 

a roll call vote, 11 ayes, 7 nays, and 1 Not Recorded. Senator 

Inhofe also offered an amendment requiring that each amount authorized to be appropriated under this Act shall be reduced by 2 

percent. That amendment passed by voice vote. S. 3500 was ordered favorably reported as amended by voice vote. 

ROLLCALL VOTES

There was one rollcall vote during the consideration of the Water 

Infrastructure Financing Act of 2008. Senator Lautenberg’s 

Amendment #1, which would apply Davis-Bacon prevailing wage 

requirements to contract negotiations under the SRF programs was 

approved with 11 ayes, 7 nays, and 1 Not Recorded vote. 

REGULATORY IMPACT STATEMENT

In compliance with section 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee makes evaluation of the regulatory impact of the reported bill. The Committee finds that this 


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legislation, which provides grants and financial assistance to communities, wastewater and drinking water utilities, certain technical 

assistance providers and others, does not have substantial regulatory impacts. 

MANDATES ASSESSMENT

In compliance with the Unfunded Mandates Reform Act of 1995 

(Pub. L. 104–4), the Committee finds that this legislation does not 

impose intergovernmental mandates or private sector mandates as 

those terms are defined in UMRA. The Congressional Budget Office 

concurs, finding ‘‘This legislation contains no intergovernmental or 

private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) and would impose no costs on state, local, or tribal governments.’’ 

Water Infrastructure Financing Act 

Summary: This bill would authorize the appropriation of $33 billion for the Environmental Protection Agency (EPA) to provide 

grants to states and nonprofit organizations to support a wide 

range of water quality projects and programs. CBO estimates that 

implementing this legislation would cost about $19 billion over the 

next five years and an additional $14 billion after 2013, assuming 

appropriation of the authorized amounts. 

The Joint Committee on Taxation (JCT) estimates that enacting 

the bill would reduce revenues by $1.3 billion over the next 10 

years. Enacting the bill would not affect direct spending. 

This legislation contains no intergovernmental or private-sector 

mandates as defined in the Unfunded Mandates Reform Act 

(UMRA) and would impose no costs on state, local, or tribal governments. 

Estimated cost to the Federal Government: The estimated budgetary impact of this legislation is summarized in Table 1. The costs 

of this legislation fall within budget function 300 (natural resources 

and environment). 

TABLE 1.—ESTIMATED BUDGETARY EFFECTS OF THE WATER INFRASTRUCTURE FINANCING ACT 

By fiscal year, in millions of dollars— 

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009– 

2013 

2009– 

2018 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Authorization 

Level .... 5,994 6,337 8,198 12,730 81 0 0 0 0 0 33,340 33,340 

Estimated 

Outlays 564 1,977 3,746 5,597 6,912 6,098 3,681 1,740 829 370 18,796 31,514 

CHANGES IN REVENUES 

Estimated 

Revenues 1 .. * ¥4 ¥15 ¥42 ¥87 ¥147 ¥209 ¥253 ¥278 ¥289 ¥148 ¥1,324 

NOTE: * = revenue of less than $500,000. 

1 Estimate provided by the Joint Committee on Taxation. 

Basis of estimate: For this estimate, CBO assumes that the bill 

will be enacted near the beginning of 2009, that the full amounts 

authorized will be appropriated for each year, and that outlays will 


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follow the historical patterns of spending for existing and similar 

programs. Components of the estimated costs are described below. 

Spending subject to appropriation 

This legislation would authorize appropriations totaling about $33 billion over the next five years for EPA’s water infrastructure 

and grant programs. Amounts authorized to be appropriated for individual programs are shown in Table 2. The bill would authorize the appropriation of nearly $30 billion 

over the 2009–2012 period for EPA to provide capitalization grants 

for the State Revolving Fund (SRF) program (about $16 billion for 

the clean water SRF program and about $13 billion for the safe 

drinking water SRF program). In 2008, the combined appropriation 

for these SRF programs was about $1.5 billion. States would use 

such grants along with their own funds to make low-interest loans 

to communities for wastewater treatment and drinking water facilities. Indian tribes would use such grants to construct wastewater 

treatment facilities and to fund projects that would improve the 

quality of drinking water. This bill would make several revisions 

to those grant programs, including expanding the types of projects 

eligible for assistance, changing the formulas used to allocate grant 

money among the states and tribes, and extending the repayment 

terms for loans made by states. 

Table 2.—AMOUNTS AUTHORIZED TO BE APPROPRIATED FOR EPA PROGRAMS UNDER THE WATER 

INFRASTRUCTURE FINANCING ACT 

By fiscal year, in millions of dollars— 

2009 2010 2011 2012 2013 2009– 

2013 

Clean Water SRF Grants .................................................................... 3,136 3,528 3,920 5,880 0 16,464 

Safe Drinking Water SRF Grants ........................................................ 1,960 1,960 3,430 5,880 0 13,230 

Sewer Overflow Grants ....................................................................... 368 368 368 490 0 1,594 

Critical Drinking Water Infrastructure Grant Program ...................... 294 294 294 294 0 1,176 

Critical Water Infrastructure Grant Program ..................................... 49 49 49 49 0 196 

Grants for Lead Service Line Replacement in the District of Columbia ............................................................................................ 29 29 29 29 0 116 

Technical Assistance for Nonprofits .................................................. 42 42 42 42 42 210 

EPA Safe Drinking Water Implementation Plan ................................. 7 7 7 7 0 28 

Technical Assistance for Small and Medium Treatment Works ........ 39 39 39 39 39 195 

Agricultural Pollution Control Technology Grant Program ................. 49 0 0 0 0 49 

Grants for Water Quality Enhancement and Management ................ 20 20 20 20 0 80 

National Academy of Sciences Studies .............................................. 1 1 0 0 0 2 

Total Authorization Level ........................................................... 5,994 6,337 8,198 12,730 81 33,340 

NOTE: SRF = state revolving fund; EPA = Environmental Protection Agency. 

This legislation also would authorize the appropriation of about 

$1.6 billion over the 2009–2012 period for EPA to make grants to 

states to remedy sewage overflows (that is, the discharge of untreated wastewater into waterways). This bill also would authorize 

the appropriation of about $1.2 billion for the Critical Drinking 

Water Infrastructure Grant Program and about $200 million for 

the Critical Water Infrastructure Grant Program over the same period. These grant programs would allow EPA to make grants to 

small public water systems to address the cost of complying with 

drinking water regulations and to make grants to entities to carry 

out projects related to watershed restoration. 


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All of the remaining authorizations in the bill would total about $680 million over the next five years. That funding would be used 

for various other purposes, including a grant program to assist 

small and medium treatment works in a broad range of approaches 

to wastewater and stormwater management, grant programs aimed 

at promoting innovations in technology and alternative approaches 

to water quality management, and a grant program to address the 

replacement of lead drinking water service lines in the District of 

Columbia. 

Revenues 

This bill would authorize the appropriation of funds for EPA’s 

clean water SRF and the safe drinking water SRF programs, as 

well as appropriations for the agricultural pollution control technology grant program. The JCT expects that some of those funds 

would be used by states to leverage additional funds by issuing taxexempt bonds. The JCT estimates that the consequent reductions 

in revenue from issuing additional tax-exempt bonds would total 

about $1.3 billion over the next 10 years. 

Intergovernmental and private-sector impact: This legislation 

contains no intergovernmental or private-sector mandates as defined in UMRA and would impose no costs on state, local, or tribal 

governments. The bill would benefit state, local, and tribal governments by authorizing grants for water and sewer projects. 

Estimate prepared by: Federal Spending: Susanne S. Mehlman. 

Federal Revenues: Mark Booth. Impact on State, Local, and Tribal 

Governments: Burke Doherty. Impact on the Private Sector: Amy 

Petz. 

Estimate approved by: Peter H. Fontaine, Assistant Director for 

Budget Analysis. 


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ADDITIONAL VIEWS 

The integration of Davis-Bacon with the SRF program is antithetical to its purpose of lowering the costs incurred by state and 

local governments for constructing facilities to clean up water. 

Davis-Bacon has consistently inflated the cost of public construction projects anywhere from 5 percent to 38 percent over what they 

would be if they were to be bid upon competitively in the private 

sector. As a former Mayor, I am sensitive to the budgetary concerns of state and local governments especially during such lean 

economic times. This country faces tens of billions of dollars in infrastructure needs, and the inclusion of Davis-Bacon will certainly 

delay and potentially prohibit infrastructure construction and compliance progress. I regret that this provision will ultimately lead to 

a legislative impasse and that communities in need won’t receive 

the resources this bill could provide. 

JAMES M. INHOFE. 


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CHANGES IN EXISTING LAW

In compliance with section 12 of rule XXVI of the Standing Rules 

of the Senate, changes in existing law made by the bill as reported 

are shown as follows: Existing law proposed to be omitted is enclosed in øblack brackets¿, new matter is printed in italic, existing 

law in which no change is proposed is shown in roman: 

* * * * * * * 

* 

TITLE II—GRANTS FOR CONSTRUCTION OF TREATMENT 

WORKS 

PURPOSE

SEC. 201. (a) * * * 

* * * * * * * 

SEC. 221. SEWER OVERFLOW CONTROL GRANTS. 

ø(a) IN GENERAL.—In any fiscal year in which the Administrator 

has available for obligation at least $1,350,000,000 for the purposes 

of section 601— 

ø(1) the Administrator may make grants to States for the 

purpose of providing grants to a municipality or municipal entity for planning, design, and construction of treatment works 

to intercept, transport, control, or treat municipal combined 

sewer overflows and sanitary sewer overflows; and 

ø(2) subject to subsection (g), the Administrator may¿ 

(a) IN GENERAL.—The Administrator may— 

(1) make grants to States for the purpose of providing grants 

to a municipality or municipal entity for planning, design, and 

construction of treatment works to intercept, transport, control, 

or treat municipal combined sewer overflows and sanitary 

sewer overflows; and 

(2) subject to subsection (g), make a direct grant to a municipality or municipal entity for the purposes described in paragraph (1). 

* * * * * * 

* 

(d) COST-SHARING.—The Federal share of the cost of activities 

carried out using amounts from a grant made under subsection (a) 

shall be not less than 55 percent of the cost. The non-Federal share 

of the cost may include, in any amount, public and private funds 

and in-kind services, and may include, notwithstanding section 

ø603(h)¿ 603(j), financial assistance, including loans, from a State 

water pollution control revolving fund. 


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FEDERAL WATER POLLUTION CONTROL ACT

ø(e) ADMINISTRATIVE REPORTING REQUIREMENTS.—If a project receives grant assistance under subsection (a) and loan assistance 

from a State water pollution control revolving fund and the loan 

assistance is for 15 percent or more of the cost of the project, the 

project may be administered in accordance with State water pollution control revolving fund administrative reporting requirements 

for the purposes of streamlining such requirements. 

ø(f ) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to carry out this section $750,000,000 for each of 

fiscal years 2002 and 2003. Such sums shall remain available until 

expended. 

ø(g) ALLOCATION OF FUNDS.— 

ø(1) FISCAL YEAR 2002.—Subject to subsection (h), the Administrator shall use the amounts appropriated to carry out this 

section for fiscal year 2002 for making grants to municipalities 

and municipal entities under subsection (a)(2), in accordance 

with the criteria set forth in subsection (b). 

ø(2) FISCAL YEAR 2003.—Subject to subsection (h), the Administrator shall use the amounts appropriated to carry out this 

section for fiscal year 2003 as follows: 

ø(A) Not to exceed $250,000,000 for making grants to 

municipalities and municipal entities under subsection 

(a)(2), in accordance with the criteria set forth in subsection (b). 

ø(B) All remaining amounts for making grants to States 

under subsection (a)(1), in accordance with a formula to be 

established by the Administrator, after providing notice 

and an opportunity for public comment, that allocates to 

each State a proportional share of such amounts based on 

the total needs of the State for municipal combined sewer 

overflow controls and sanitary sewer overflow controls 

identified in the most recent survey conducted pursuant to 

section 516(b)(1).¿ 

(e) ADMINISTRATIVE REQUIREMENTS.— 

(1) IN GENERAL.—Subject to paragraph (2), a project that receives grant assistance under subsection (a) shall be carried out 

subject to the same requirements as a project that receives assistance from a State water pollution control revolving fund established pursuant to title VI. 

(2) DETERMINATION OF GOVERNOR.—The requirement described in paragraph (1) shall not apply to a project that receives grant assistance under subsection (a) to the extent that 

the Governor of the State in which the project is located determines that a requirement described in title VI is inconsistent 

with the purposes of this section. 

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to carry out this section, to remain available until 

expended— 

(1) $375,000,000 for fiscal year 2008; 

(2) $375,000,000 for fiscal year 2009; 

(3) $375,000,000 for fiscal year 2010; 

(4) $375,000,000 for fiscal year 2011; and 


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(5) $500,000,000 for fiscal year 2012. 

(g) ALLOCATION OF FUNDS.— 

(1) FISCAL YEAR 2008 AND 2009.—For each of fiscal years 2008 

and 2009, subject to subsection (h), the Administrator shall use 

the amounts made available to carry out this section to provide 

grants to municipalities and municipal entities under subsection (a)(2)— 

(A) in accordance with the priority criteria described in 

subsection (b); and 

(B) with additional priority given to proposed projects 

that involve the use of— 

(i) nonstructural, low-impact development; 

(ii) water conservation, efficiency, or reuse; or 

(iii) other decentralized stormwater or wastewater 

approaches to minimize flows into the sewer systems. 

(2) FISCAL YEAR 2010 AND THEREAFTER.—For fiscal year 2010 

and each fiscal year thereafter, subject to subsection (h), the Administrator shall use the amounts made available to carry out 

this section to provide grants to States under subsection (a)(1) 

in accordance with a formula that— 

(A) shall be established by the Administrator, after providing notice and an opportunity for public comment; and 

(B) allocates to each State a proportional share of the 

amounts based on the total needs of the State for municipal 

combined sewer overflow controls and sanitary sewer overflow controls, as identified in the most recent survey— 

(i) conducted under section 210; and 

(ii) included in a report required under section 

516(b)(1)(B). 

* * * * * * * 

(i) REPORTS.—Not later than December 31, ø2003¿ 2010, and periodically thereafter, the Administrator shall transmit to Congress 

a report containing recommended funding levels for grants under 

this section. The recommended funding levels shall be sufficient to 

ensure the continued expeditious implementation of municipal combined sewer overflow and sanitary sewer overflow controls nationwide. 

SEC. 222. TECHNICAL ASSISTANCE FOR RURAL SMALL TREATMENT 

WORKS AND MEDIUM TREATMENT WORKS. 

(a) DEFINITIONS.—In this section: 

(1) DECENTRALIZED WASTEWATER SYSTEM.— 

(A) IN GENERAL.—The term ‘‘decentralized wastewater 

system’’ means a wastewater treatment system that is at or 

near a site at which wastewater is generated. 

(B) INCLUSIONS.—The term ‘‘decentralized wastewater 

system’’ includes a system that provides for— 

(i) nonpotable reuse of treated effluent; or 

(ii) energy and nutrient recovery from wastewater 

constituents. 

(2) MEDIUM TREATMENT WORKS.—The term ‘‘medium treatment works’’ means a publicly owned treatment works serving 

more than 10,000 but fewer than 100,000 individuals. 


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(3) QUALIFIED NONPROFIT TECHNICAL ASSISTANCE PROVIDER.—The term ‘‘qualified nonprofit technical assistance provider’’ means a qualified nonprofit technical assistance provider 

of water and wastewater services to small or medium-sized 

communities that provides technical assistance (including circuit rider, multi-State regional assistance programs, and training and preliminary engineering evaluations) to owners and operators of small treatment works or medium treatment works 

that may include State agencies. 

(4) SMALL TREATMENT WORKS.—The term ‘‘small treatment 

works’’ means a publicly owned treatment works serving not 

more than 10,000 individuals. 

(b) GRANT PROGRAM.— 

(1) IN GENERAL.—The Administrator may make grants on a 

competitive basis to qualified nonprofit technical assistance providers that are qualified to provide assistance on a broad range 

of wastewater and stormwater approaches— 

(A) to assist owners and operators of small treatment 

works and medium treatment works to plan, develop, and 

obtain financing for eligible projects described in section 

603(c) or 518(c); 

(B) to provide financial assistance, in consultation with 

the State in which the assistance is provided, to owners 

and operators of small treatment works and medium treatment works for predevelopment costs (including costs for 

planning, design, and associated preconstruction activities, 

such as activities relating directly to the siting of the facility and related elements) associated with stormwater or 

wastewater infrastructure projects or short-term costs incurred for equipment replacement that is not part of regular operation and maintenance activities for existing 

stormwater or wastewater systems, if the amount of assistance for any single project does not exceed $50,000; 

(C) to provide technical assistance and training for owners and operators of small treatment works and medium 

treatment works to enable those treatment works and systems to protect water quality and achieve and maintain 

compliance with this Act; and 

(D) to disseminate information to owners and operators 

of small treatment works and medium treatment works, 

with respect to planning, design, construction, and operation of treatment works, small municipal separate storm 

sewer systems, and decentralized wastewater treatment systems. 

(2) DISTRIBUTION OF GRANT.—In carrying out this subsection, 

the Administrator shall ensure, to the maximum extent practicable, that technical assistance provided using funds from a 

grant under paragraph (1) is made available in each State. 

(3) CONSULTATION.—As a condition of receiving a grant 

under this subsection, a qualified nonprofit technical assistance 

provider shall agree to consult with each State in which grant 

funds are to be expended before the grant funds are expended 

in the State. 


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(4) ANNUAL REPORT.—Not later than 60 days after the end of 

each fiscal year, a qualified nonprofit technical assistance provider that receives a grant under this subsection shall submit 

to the Administrator a report that— 

(A) describes the activities of the qualified nonprofit technical assistance provider using grant funds received under 

this subsection for the fiscal year; and 

(B) specifies— 

(i) the number of communities served; 

(ii) the sizes of those communities; and 

(iii) the type of assistance provided by the qualified 

nonprofit technical assistance provider. 

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to carry out this section— 

(1) for grants for small treatment works, $25,000,000 for each 

of fiscal years 2009 through 2013; and 

(2) for grants for medium treatment works, $15,000,000 for 

each of fiscal years 2009 through 2013. 

* * * * * * * 

SEC. 602. CAPITALIZATION GRANT AGREEMENTS. 

(a) GENERAL RULE.—* * * 

* * * * * * * 

(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) * * * 

* * * * * * * 

ø(6) treatment works eligible under section 603(c)(1) of this 

Act which will be constructed in whole or in part before fiscal 

year 1995 with funds directly made available by capitalization 

grants under this title and section 205(m) of this Act will meet 

the requirements of, or otherwise be treated (as determined by 

the Governor of the State) under sections 201(b), 201(g)(1), 

201(g)(2), 201(g)(3), 201(g)(5), 201(g)(6), 201(n)(1), 201(o), 

204(a)(1), 204(a)(2), 204(b)(1), 204(d)(2), 211, 218, 511(c)(1), and 

513 of this Act in the same manner as treatment works constructed with assistance under title II of this Act;¿ 

(6) treatment works eligible under section 603(c) that are constructed, in whole or in part, using funds made available by a 

State loan fund under this title shall meet the requirements of 

section 513 in the same manner as treatment works constructed 

using assistance provided under title II; 

(c) GUIDANCE FOR SMALL SYSTEMS.— 

(1) DEFINITION OF SMALL SYSTEM.—In this subsection, the 

term ‘‘small system’’ means a system— 

(A) for which a municipality or intermunicipal, interstate, or State agency seeks assistance under this title; and 

(B) that serves a population of not more than 10,000 individuals. 

(2) SIMPLIFIED PROCEDURES.—Not later than 1 year after the 

date of enactment of this subsection, the Administrator shall asVerDate Aug 31 2005 01:33 Sep 30, 2008 Jkt 069010 PO 00000 Frm 00016 Fmt 6604 Sfmt 6603 E:\HR\OC\SR509.XXX SR509

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sist the States in establishing simplified procedures for small 

systems to obtain assistance under this title. 

(3) PUBLICATION OF MANUAL.—Not later than 1 year after the 

date of enactment of this subsection, after providing notice and 

opportunity for public comment, the Administrator shall publish— 

(A) a manual to assist small systems in obtaining assistance under this title; and 

(B) in the Federal Register, notice of the availability of 

the manual. 

* * * * * * * 

SEC. 603. WATER POLLUTION CONTROL REVOLVING LOAN FUNDS. 

(a) REQUIREMENTS FOR OBLIGATION OF GRANT FUNDS.—Before 

a State may receive a capitalization grant with funds made available under this title and section 205(m) of this Act, the State shall 

first establish a water pollution control revolving fund which complies with the requirements of this section. 

(b) ADMINISTRATOR.—Each State water pollution control revolving fund shall be administered by an instrumentality of the State 

with such powers and limitations as may be required to operate 

such fund in accordance with the requirements and objectives of 

this Act. 

ø(c) PROJECTS ELIGIBLE FOR ASSISTANCE.—The amounts of 

funds available to each State water pollution control revolving fund 

shall be used only for providing financial assistance (1) to any municipality, intermunicipal, interstate, or State agency for construction of publicly owned treatment works (as defined in section 212 

of this Act), (2) for the implementation of a management program 

established under section 319 of this Act, and (3) for development 

and implementation of a conservation and management plan under 

section 320 of this Act. The fund shall be established, maintained, 

and credited with repayments, and the fund balance shall be available in perpetuity for providing such financial assistance.¿ 

(c) PROJECTS ELIGIBLE FOR ASSISTANCE.—Funds in each State 

water pollution control revolving fund shall be used only by a municipality or an intermunicipal, interstate, or State agency (or, for 

the purpose of paragraph (1), by either of those entities or a private 

treatment works or decentralized wastewater system that principally 

treats municipal wastewater or domestic sewage)— 

(1) to provide financial assistance for construction activities 

(such as expansion to meet needs of existing development), including planning design, and associated preconstruction planning activities (as defined in section 212)— 

(A) to implement a management program established 

under section 319; and 

(B) to develop and implement a conservation and management plan under section 320; 

(2) to increase the security of wastewater treatment works (excluding any expenditure for operations or maintenance); 

(3) to implement measures to control, manage, reduce, treat, 

infiltrate, or reuse municipal stormwater, the primary purpose 

of which is the protection, preservation, or enhancement of 

water quality to support public purposes, including procureVerDate Aug 31 2005 01:33 Sep 30, 2008 Jkt 069010 PO 00000 Frm 00017 Fmt 6604 Sfmt 6603 E:\HR\OC\SR509.XXX SR509

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ment and use of equipment to support minimum measures such 

as street sweeping and storm drain system cleaning; 

(4) to carry out water conservation or efficiency projects, the 

primary purpose of which is the protection, preservation, or enhancement of water quality to support public purposes; 

(5) to implement measures to integrate water resource management planning and implementation; 

(6) to carry out water and wastewater reuse, reclamation, and 

recycling projects, the primary purpose of which is the protection, preservation, or enhancement of water quality to support 

public purposes; and 

(7) for capital costs associated with monitoring equipment for 

combined or sanitary sewer overflows. 

(d) TYPES OF ASSISTANCE.—Except as otherwise limited by 

State law, a water pollution control revolving fund of a State under 

this section may be used only— 

(1) to make loans, on the condition that— 

(A) such loans are made at or below market interest 

rates, including interest free loans, at terms not to exceed 

ø20 years¿ the lesser of 30 years or the design life of the 

project to be financed with the proceeds of the loan; 

(B) annual principal and interest payments will commence not later than 1 year after completion of any project 

and all loans will be fully amortized not later than 20 

years after project completion; 

(C) the recipient of a loan will establish a dedicated 

source of revenue for repayment of loans; and 

(D) the fund will be credited with all payments of principal and interest on all loans; 

(2) to buy or refinance the debt obligation of municipalities 

and intermunicipal and interstate agencies within the State at 

or below market rates, where such debt obligations were incurred after March 7, 1985; 

(3) to guarantee, or purchase insurance for, local obligations 

where such action would improve credit market access or reduce interest rates; 

(4) as a source of revenue or security for the payment of 

principal and interest on revenue or general obligation bonds 

issued by the State if the proceeds of the sale of such bonds 

will be deposited in the fund; 

(5) to provide loan guarantees for similar revolving funds established by municipalities or intermunicipal agencies; 

(6) to earn interest on fund accounts; øand¿ 

(7) for the reasonable costs of administering the fund and 

conducting activities under this øtitle, except that such 

amounts shall not exceed 4 percent of all grant awards to such 

fund under this title.¿ title, except that— 

(A) such amounts shall not exceed 6 percent of all grant 

awards to the fund under this title; and 

(B) if there is no appropriation for a fiscal year, the total 

amount of the reasonable cost of administering the fund 

and conducting activities under this title shall not exceed 

6 percent of all grant loan awards made by the State for 

that fiscal year; and 


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(8) as a source of revenue (restricted solely to interest earnings of the fund) or security for payment of the principal and 

interest on revenue or general obligation bonds issued by the 

State to provide matching funds under section 602(b)(2), if the 

proceeds of the sale of the bonds will be deposited in the fund. 

(e) ADDITIONAL ASSISTANCE FOR DISADVANTAGED COMMU- NITIES.— 

(1) DEFINITION OF DISADVANTAGED COMMUNITY.—In this subsection, the term ‘‘disadvantaged community’’ means a community with a service area, or portion of a service area, of a treatment works that meets affordability criteria established after 

public review and comment by the State in which the treatment 

works is located. 

(2) LOAN SUBSIDY.—Notwithstanding any other provision of 

this section, in a case in which the State makes a loan from the 

water pollution control revolving loan fund in accordance with 

subsection (c) to a disadvantaged community or a community 

that the State expects to become a disadvantaged community as 

the result of a proposed project, the State may provide additional subsidization, including— 

(A) the forgiveness of all or a portion of the principal of 

the loan; and 

(B) a negative interest rate on the loan. 

(3) TOTAL AMOUNT OF SUBSIDIES.—For each fiscal year, the 

total amount of loan subsidies made by the State pursuant to 

this subsection may not exceed 30 percent of the amount of the 

capitalization grant received by the State for the fiscal year. 

(4) INFORMATION.—The Administrator may publish information to assist States in establishing affordability criteria described in paragraph (1). 

(f) COST-SAVING WATER TREATMENT AND EFFICIENCY IMPROVEMENTS.—Subject to subsection (e)(3), in providing a loan for a 

project under this section, a State may forgive repayment of such 

portion of the loan amount, not to exceed 5 percent, as is equal to 

the percentage of the project that is devoted to alternative approaches to wastewater and stormwater controls (including nonstructural methods) such as projects that treat or minimize sewage 

or urban stormwater discharges using— 

(1) decentralized or distributed stormwater controls; 

(2) decentralized wastewater treatment; 

(3) low-impact development technologies and nonstructural 

approaches; 

(4) stream buffers; 

(5) wetland restoration and enhancement; 

(6) actions to minimize the quantity of and direct connections 

to impervious surfaces; 

(7) soil and vegetation, or other permeable materials; 

(8) actions that increase efficient water use, water conservation, or water reuse. 

ø(e)¿ (g) LIMITATION TO PREVENT DOUBLE BENEFITS.—If a 

State makes, from its water pollution revolving fund, a loan which 

will finance the cost of facility planning and the preparation of 

plans, specifications, and estimates for construction of publicly 

owned treatment works, the State shall ensure that if the recipient 


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of such loan receives a grant under section 201(g) of this Act for 

construction of such treatment works and an allowance under section 201(l)(1) of this Act for non-federal funds expended for such 

planning and preparation, such recipient will promptly repay such 

loan to the extent of such allowance. 

ø(f)¿ (h) CONSISTENCY WITH PLANNING REQUIREMENTS.—A 

State may provide financial assistance from its water pollution control revolving fund only with respect to a project which is consistent with plans, if any, developed under sections 205(j), 208, 

303(e), 319, and 320 of this Act. 

ø(g) PRIORITY LIST REQUIREMENT.—The State may provide financial assistance from its water pollution control revolving fund 

only with respect to a project for construction of a treatment works 

described in subsection (c)(1) if such project is on the State’s priority list under section 216 of this Act. Such assistance may be provided regardless of the rank of such project on such list.¿ 

(i) PRIORITY SYSTEM REQUIREMENT.— 

(1) DEFINITIONS.—In this subsection: 

(A) RESTRUCTURING.—The term ‘‘restructuring’’ means— 

(i) the consolidation of management functions or 

ownership with another facility; or 

(ii) the formation of cooperative partnerships. 

(B) TRADITIONAL WASTEWATER APPROACH.—The term 

‘‘traditional wastewater approach’’ means a managed system used to collect and treat wastewater from an entire 

service area consisting of— 

(i) collection sewers; 

(ii) a centralized treatment plant using biological, 

physical, or chemical treatment processes; and 

(iii) a direct point source discharge to surface water. 

(2) PRIORITY SYSTEM.—In providing financial assistance from 

the water pollution control revolving fund of the State, the State 

shall establish a priority system that— 

(A) gives greater weight to an application for assistance 

by the owner or operator of a treatment works if the application includes— 

(i) an inventory of assets, including a description of 

the condition of those assets; 

(ii) a schedule for replacement of the assets; 

(iii) a financing plan that factors in all lifecycle costs 

indicating sources of revenue from ratepayers, grants, 

bonds, other loans, and other sources to meet the costs; 

(iv) a review of options for restructuring the treatment works; or 

(v) approaches other than a traditional wastewater 

approach that treat or minimize sewage or urban 

stormwater discharges using— 

(I) decentralized or distributed stormwater controls; 

(II) decentralized wastewater treatment; 

(III) low-impact development technologies and 

nonstructural approaches; 

(IV) stream buffers; 

(V) wetland restoration and enhancement; 


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(VI) actions to minimize the quantity of and direct connections to impervious surfaces; 

(VII) soil and vegetation, or other permeable materials; or 

(VIII) actions that increase efficient water use, 

water conservation, or water reuse; 

(vi) a demonstration of consistency with State, regional, and municipal watershed plans, water conservation and efficiency plans, or integrated water resource management plans; 

(vii) a proposal by the applicant demonstrating flexibility through alternative means to carry out responsibilities under Federal regulations, that may include 

watershed permitting and other innovative management approaches, while achieving results that— 

(I) the State, in the case of a permit program approved under section 402, determines will meet 

permit requirements; or 

(II) the Administrator determines are measurably superior when compared to regulatory standards; 

(B) takes into consideration appropriate chemical, physical, and biological data relating to water quality that the 

State considers reasonably available and of sufficient quality; 

(C) provides for public notice and opportunity to comment on the establishment of the priority system and the 

summary under subparagraph (D); 

(D) provides for the publication, not less than biennially 

in summary form, of a description of projects in the State 

that are eligible for assistance under this title that indicates— 

(i) the priority assigned to each project under the priority system of the State; and 

(ii) the funding schedule for each project, to that extent the information is available; and 

(E) ensures that projects undertaken with assistance 

under this title are designed to achieve, as determined by 

the State, the optimum water quality management, consistent with the public health and water quality goals and 

requirements of this Act. 

ø(h)¿ (j) ELIGIBILITY OF NON-FEDERAL SHARE OF CONSTRUCTION

GRANT PROJECTS.—A State water pollution control revolving fund 

may provide assistance (other than under subsection (d)(1) of this 

section) to a municipality or intermunicipal or interstate agency 

with respect to the non-Federal share of the costs of a treatment 

works project for which such municipality or agency is receiving assistance from the Administrator under any other authority only if 

such assistance is necessary to allow such project to proceed. 

(k) TRANSFER OF FUNDS.— 

(1) IN GENERAL.—The Governor of a State may— 

(A)(i) reserve not more than 33 percent of a capitalization 

grant made under this title; and 


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22 

(ii) add the funds reserved to any funds provided to the 

State under section 1452 of the Safe Drinking Water Act 

(42 U.S.C. 300j–12); and 

(B)(i) reserve for any year an amount that does not exceed 

the amount that may be reserved under subparagraph (A) 

for that year from capitalization grants made under section 

1452 of that Act (42 U.S.C. 300j–12); and 

(ii) add the reserved funds to any funds provided to the 

State under this title. 

(2) STATE MATCH.—Funds reserved under this subsection 

shall not be considered to be a State contribution for a capitalization grant required under this title or section 1452(b) of the 

Safe Drinking Water Act (42 U.S.C. 300j–12(b)). 

(l) NONCOMPLIANCE.— 

(1) IN GENERAL.—Except as provided in paragraph (2), no assistance (other than assistance that is to be used by a treatment 

works solely for planning, design, or security purposes) shall be 

provided under this title to the owner or operator of a treatment 

works that has been in significant noncompliance with any requirement of this Act for any of the 4 quarters during the preceding 8 quarters, unless the treatment works is in compliance 

with an enforceable administrative order to effect compliance 

with the requirement. 

(2) EXCEPTION.—An owner or operator of a treatment works 

that is determined under paragraph (1) to be in significant noncompliance with a requirement described in that paragraph 

may receive assistance under this title if the Administrator and 

the State providing the assistance determine that— 

(A) the entity conducting the enforcement action on which 

the determination of significant noncompliance is based 

has determined that the use of assistance would enable the 

owner or operator of the treatment works to take corrective 

action toward resolving the violations; or 

(B) the entity conducting the enforcement action on which 

the determination of significant noncompliance is based 

has determined that the assistance would be used by the 

owner or operator of the treatment works in order to assist 

owners and operators in making progress towards compliance. 

(m) NEGOTIATION OF CONTRACTS.— 

(1) IN GENERAL.—A contract to be carried out using funds directly made available by a capitalization grant under this section for program management, construction management, feasibility studies, preliminary engineering, design, engineering, surveying, mapping, or architectural or related services shall be 

negotiated in the same manner as— 

(A) a contract for architectural and engineering services 

is negotiated under chapter 11 of title 40, United States 

Code; or 

(B) an equivalent State qualifications-based requirement 

(as determined by the Governor of the State). 

(2) EXEMPTION FOR SMALL COMMUNITIES.—Paragraph (1) 

shall not apply to a contract described in that paragraph for 

program management, construction management, feasibility 


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23 

studies, preliminary engineering, design, engineering, surveying, mapping, or architectural or related services for a community of 10,000 or fewer individuals. 

* * * * * * * 

SEC. 604. ALLOTMENT OF FUNDS. 

(a) FORMULA.—Sums authorized to be appropriated to carry out 

this section for each of fiscal years 1989 and 1990 shall be allotted 

by the Administrator in accordance with section 205(c) of this Act. 

ø(b) RESERVATION OF FUNDS FOR PLANNING.—Each State shall 

reserve each fiscal year 1 percent of the sums allotted to such State 

under this section for such fiscal year, or $100,000, whichever 

amount is greater, to carry out planning under sections 205(j) and 

303(e) of this Act.¿ 

(b) RESERVATION OF FUNDS.— 

(1) PLANNING.—Each State may reserve for each fiscal year 

the greater of 2 percent of the sums allotted to the State under 

this section for the fiscal year, or $100,000, to carry out planning under sections 205(j) and 303(e). 

(2) INDIAN TRIBES.—Of the total amount of funds made available under paragraph (1), 1.5 percent shall be allocated to Indian tribes (as defined in section 518(h)). 

* * * * * * * 

øSEC. 607. AUTHORIZATION OF APPROPRIATIONS.¿ 

There is authorized to be appropriated to carry out the purposes 

of this title the following sums: 

ø(1) $1,200,000,000 per fiscal year for each of fiscal year 

1989 and 1990; 

ø(2) $2,400,000,000 for fiscal year 1991; 

ø(3) $1,800,000,000 for fiscal year 1992; 

ø(4) $1,200,000,000 for fiscal year 1993; and 

ø(5) $600,000,000 for fiscal year 1994.¿ 

SEC. 607. AUTHORIZATION OF APPROPRIATIONS. 

(a) IN GENERAL.—There are authorized to be appropriated to 

carry out this title— 

(1) $3,200,000,000 for each of fiscal years 2008 and 2009; 

(2) $3,600,000,000 for fiscal year 2010; 

(3) $4,000,000,000 for fiscal year 2011; and 

(4) $6,000,000,000 for fiscal year 2012. 

(b) AVAILABILITY.—Amounts made available under this section 

shall remain available until expended. 

(c) RESERVATION FOR NEEDS SURVEYS.—Of the amount made 

available under subsection (a) to carry out this title for a fiscal year, 

the Administrator may reserve not more than $1,000,000 for the fiscal year, to remain available until expended, to pay the costs of conducting needs surveys under section 516(b)(1)(B). 

SAFETY OF PUBLIC WATER SYSTEMS (SAFE DRINKING 

WATER ACT) 

* * * * * * * 


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SEC. 1434. CONTAMINANT PREVENTION, DETECTION AND RESPONSE. 

(a) IN GENERAL.—* * * 

* * * * * * * 

ø(b) Funding.—For the authorization of appropriations to carry 

out this section, see section 1435(e).¿ 

(b) REPORT.—Not later than 180 days after the date of enactment 

of the Water Infrastructure Financing Act, the Administrator shall 

submit to Congress a report that includes— 

(1) a description of the progress made as of that date in implementing this section; and 

(2) a description of any impediments to that implementation 

identified by the Administrator, including— 

(A) difficulty in coordinating the implementation with 

other Federal, State, or local agencies or organizations; 

(B) insufficient funding for effective implementation; 

(C) a lack of authorization to take certain actions (including the authority to hire necessary personnel) required to 

carry out the implementation; and 

(D) technological impediments to developing the methods, 

means, and equipment specified in subsection (a)(1). 

(c) IMPLEMENTATION PLAN.—The Administrator shall develop and 

carry out an implementation plan for this section consistent with actions taken to date and incorporating the results of the report under 

subsection (b). 

(d) FUNDING.—There is authorized to be appropriated to carry out 

this section $7,500,000 for each of fiscal years 2008 through 2012. 

* * * * * * * 

SEC. 1442. (a)(1) The Administrator may conduct research, studies, and demonstrations relating to the causes, diagnosis, treatment, control, and prevention of physical and mental diseases and 

other impairments of man resulting directly or indirectly from contaminants in water, or to the provision of a dependably safe supply 

of drinking water, including— 

(A) improved methods (i) to identify and measure the existence of contaminants in drinking water (including methods 

which may be used by State and local health and water officials), and (ii) to identify the source of such contaminants; 

(B) * * * 

* * * * * * * 

(e) TECHNICAL ASSISTANCE.—øThe Administrator may provide¿ 

(1) PUBLIC WATER SYSTEMS.—The Administrator may provide 

technical assistance to small public water systems to enable 

such systems to achieve and maintain compliance with applicable national primary drinking water regulations. øSuch assistance¿ 

(2) TYPES OF ASSISTANCE.—Such assistance may include circuit-rider and multi-State regional technical assistance programs, training, and preliminary engineering evaluations. 

øThe Administrator shall ensure¿ 

(3) AVAILABILITY.—The Administrator shall ensure that technical assistance pursuant to this subsection is available in each 

State. øEach nonprofit¿ 


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(4) REQUIREMENT APPLICABLE TO NONPROFIT ORGANIZATIONS.—Each nonprofit organization receiving assistance under 

this subsection shall consult with the State in which the assistance is to be expended or otherwise made available before 

using assistance to undertake activities to carry out this subsection. øThere are authorized to be appropriated to the Administrator to be used for such technical assistance 

$15,000,000 for each of the fiscal years 1997 through 2003. No 

portion of any State loan fund established under section 1452 

(relating to State loan funds) and no portion of any funds made 

available under this subsection may be used for lobbying expenses. Of the total amount appropriated under this subsection, 3 percent shall be used for technical assistance to public water systems owned or operated by Indian Tribes.¿ 

(5) PRIORITY.—In providing grants under this section, the Administrator shall give priority to small systems organizations 

that, as determined by the Administrator, are qualified and 

will be the most effective at assisting those small systems that 

have the greatest need (or a majority of need) in the States. 

(6) WELLS AND WELL SYSTEMS.— 

(A) IN GENERAL.—The Administrator shall provide 

grants to nonprofit organizations to provide technical assistance to communities and individuals regarding the design, operation, construction, and maintenance of household wells and small shared well-systems that provide 

drinking water. 

(B) FORM OF ASSISTANCE.—Technical assistance referred 

to in subparagraph (A) may include— 

(i) training and education; 

(ii) operation of a hotline; and 

(iii) the conduct of other activities relating to the design and construction of household, shared, and small 

water well systems in rural areas. 

(C) PRIORITY.—Subject to paragraph (5), in providing 

grants under this section, the Administrator shall give priority to applicants that, as determined by the Administrator— 

(i) are qualified; and 

(ii) have demonstrated experience in providing similar technical assistance and in developing similar 

projects. 

(D) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this paragraph 

$7,500,000 for each of fiscal years 2009 through 2013. 

(7) FUNDING.— 

(A) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to the Administrator to carry 

out this subsection (other than paragraph (6)) $35,000,000 

for each of fiscal years 2009 through 2013. 

(B) LOBBYING EXPENSES.—No portion of any State loan 

fund established under section 1452 and no portion of any 

funds made available under this subsection may be used 

for lobbying expenses. 


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(C) INDIAN TRIBES.—Of the total amount made available 

under this section for each fiscal year, 3 percent shall be 

used for technical assistance to public water systems owned 

or operated by Indian Tribes. 

* * * * * * 

* 

SEC. 1450. (a)(1) The Administrator is authorized to prescribe 

such regulations as are necessary or appropriate to carry out his 

functions under this title. 

(2) * * * 

* * * * * * * 

ø(e) The Administrator shall take such action as may be necessary to assure compliance with provisions of the Act of March 3, 

1931 (known as the Davis-Bacon Act; 40 U.S.C. 276a–276a(5)). The 

Secretary of Labor shall have, with respect to the labor standards 

specified in this subsection, the authority and functions set forth in 

Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 

1267) and section 2 of the Act of June 13, 1934 (40 U.S.C. 276c).¿ 

(e) LABOR STANDARDS.— 

(1) IN GENERAL.—The Administrator shall take such action 

as the Administrator determines to be necessary to ensure that 

each laborer and mechanic employed by a contractor or subcontractor of a construction project financed, in whole or in part, 

by a grant, loan, loan guarantee, refinancing, or any other form 

of financial assistance provided under this Act (including assistance provided by a State loan fund established under section 1452) is paid wages at a rate of not less than the wages 

prevailing for the same type of work on similar construction in 

the immediate locality, as determined by the Secretary of Labor 

in accordance with subchapter IV of chapter 31 of title 40, 

United States Code. 

(2) AUTHORITY OF SECRETARY OF LABOR.—With respect to the 

labor standards specified in this subsection, the Secretary of 

Labor shall have the authority and functions established in Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App.) and 

section 3145 of title 40, United States Code. 

* * * * * * * 

SEC. 1452. (a) GENERAL AUTHORITY.— 

(1) GRANTS TO STATES TO ESTABLISH STATE LOAN FUNDS.— 

(A) IN GENERAL.—* * * 

* * * * * * * 

(2) USE OF FUNDS.— 

(A) Except as otherwise authorized by this title, amounts 

deposited in a State loan fund, including loan repayments 

and interest earned on such amounts, shall be used only 

for providing loans or loan guarantees, or as a source of reserve and security for leveraged loans, the proceeds of 

which are deposited in a State loan fund established under 

paragraph (1), or other financial assistance authorized 

under this section to community water systems and nonprofit noncommunity water systems, other than systems 

owned by Federal agencies. 


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27 

(B) Financial assistance under this section may be used 

by a public water system only for expenditures ø(not¿ (including expenditures for planning, design, and associated 

preconstruction activities, including activities relating to 

the siting of the facility, but not including monitoring, operation, and maintenance expenditures) of a type or category 

which the Administrator has determined, through guidance, will facilitate compliance with national primary 

drinking water regulations applicable to the system under 

section 1412 or otherwise significantly further the health 

protection objectives of this titleor to replace or rehabilitate 

aging treatment, storage (including reservoirs), or distribution facilities of public water systems or provide for capital 

projects to upgrade the security of public water systems. 

(C) SALE OF BONDS.—Funds may also be used by a public water system to increase security at the public water system (excluding any expenditure for operations and maintenance), or as a source of revenue (restricted solely to interest earnings of the applicable State loan fund) or security 

for payment of the principal and interest on revenue or general obligation bonds issued by the State to provide matching funds under subsection (e), if the proceeds of the sale 

of the bonds will be deposited in the State loan fund. 

(D) The funds may also be used to provide loans to a 

system referred to in section 1401(4)(B) for the purpose of 

providing the treatment described in section 

1401(4)(B)(i)(III). 

(E) The funds shall not be used for the acquisition of 

real property or interests therein, unless the acquisition is 

integral to a project authorized by this paragraph and the 

purchase is from a willing seller. 

(F) Of the amount credited to any State loan fund established under this section in any fiscal year, 15 percent 

shall be available solely for providing loan assistance to 

public water systems which regularly serve fewer than 

10,000 persons to the extent such funds can be obligated 

for eligible projects of public water systems. 

* * * * * * * 

(b) INTENDED USE PLANS.— 

(1) IN GENERAL.—After providing for public review and comment, each State that has entered into a capitalization agreement pursuant to this section shall annually prepare a plan 

that identifies the intended uses of the amounts available to 

the State loan fund of the State. 

(2) CONTENTS.—* * * 

* * * * * * * 

(3) USE OF FUNDS.— 

ø(A) IN GENERAL.—An intended use plan shall provide, 

to the maximum extent practicable, that priority for the 

use of funds be given to projects that— 

ø(i) address the most serious risk to human health; 


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28 

ø(ii) are necessary to ensure compliance with the requirements of this title (including requirements for filtration); and 

ø(iii) assist systems most in need on a per household 

basis according to State affordability criteria.¿ 

(A) DEFINITION OF RESTRUCTURING.—In this paragraph, 

the term ‘‘restructuring’’ means changes in operations (including ownership, cooperative partnerships, asset management, consolidation, and alternative water supply). 

(B) PRIORITY SYSTEM.—An intended use plan shall provide, to the maximum extent practicable, that priority for 

the use of funds be given to projects that— 

(i) address the most serious risk to human health; 

(ii) are necessary to ensure compliance with this title 

(including requirements for filtration); and 

(iii) assist systems most in need on a per-household 

basis according to State affordability criteria. 

(C) WEIGHT GIVEN TO APPLICATIONS.—After determining 

project priorities under subparagraph (B), an intended use 

plan shall further provide that the State shall give greater 

weight to an application for assistance by a community 

water system if the application includes such information 

as the State determines to be necessary, including— 

(i) an inventory of assets, including a description of 

the condition of the assets; 

(ii) a schedule for replacement of assets; 

(iii) a financing plan that factors in all life-cycle 

costs indicating sources of revenue from ratepayers, 

grants, bonds, other loans, and other sources to meet 

the costs; 

(iv) a review of options for restructuring the public 

water system; 

(v) demonstration of consistency with State, regional, 

and municipal watershed plans; and 

(vi) a water conservation plan consistent with guidelines developed for those plans by the Administrator 

under section 1455(a). 

ø(B)¿ (D) LIST OF PROJECTS.—Each State shall, after notice and opportunity for public comment, publish and øperiodically¿ at least biennially update a list of projects in 

the State that are eligible for assistance under this section, 

including the priority assigned to each project and, to the 

extent known, the expected funding schedule for each 

project. 

* * * * * * * 

(d) ASSISTANCE FOR DISADVANTAGED COMMUNITIES.— 

(1) LOAN SUBSIDY.—Notwithstanding any other provision of 

this section, in any case in which the State makes a loan pursuant to subsection (a)(2) to a disadvantaged community or to 

a community that the State expects to become a disadvantaged 

community as the result of a proposed project, the State may 

provide additional subsidization (including forgiveness of principal). 


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29 

(2) TOTAL AMOUNT OF SUBSIDIES.—For each fiscal year, the 

total amount of loan subsidies made by a State pursuant to 

paragraph (1) may not exceed 30 percent of the amount of the 

capitalization grant received by the State for the year. 

(3) DEFINITION OF DISADVANTAGED COMMUNITY.—In this subsection, the term ‘‘disadvantaged community’’ means the service area, or portion of a service area, of a public water system 

that meets affordability criteria established after public review 

and comment by the State in which the public water system 

is located. The Administrator may publish information to assist 

States in establishing affordability criteria. 

* * * * * * * 

(g) ADMINISTRATION OF STATE LOAN FUNDS.— (1) COMBINED FINANCIAL ADMINISTRATION.—* * * 

* * * * * * * 

(2) COST OF ADMINISTERING FUND.—Each State may annually 

use up to ø4¿ 6 percent of the funds allotted to the State under 

this section to cover the reasonable costs of administration of 

the programs under this section, including the recovery of reasonable costs expended to establish a State loan fund which 

are incurred after the date of enactment of this section, and to 

provide technical assistance to public water systems within the 

State. For fiscal year 1995 and each fiscal year thereafter, each 

State may use up to an additional 10 percent of the funds allotted to the State under this section— 

(A) for public water system supervision programs under 

section 1443(a); 

(B) to administer or provide technical assistance through 

source water protection programs; 

(C) to develop and implement a capacity development 

strategy under section 1420(c); and 

(D) for an operator certification program for purposes of 

meeting the requirements of section ø1419, 

if the State matches the expenditures with at least an equal 

amount of State funds. At least half of the match must be additional to the amount expended by the State for public water 

supervision in fiscal year 1993.¿ 1419. An additional 2 percent 

of the funds annually allotted to each State under this section 

may be used by the State to provide technical assistance to 

public water systems serving 10,000 or fewer persons in the 

State. Funds utilized under subparagraph (B) shall not be used 

for enforcement actions. 

(3) GUIDANCE AND REGULATIONS.—The Administrator shall 

publish guidance and promulgate regulations as may be necessary to carry out the provisions of this section, including— 

(A) provisions to ensure that each State commits and expends funds allotted to the State under this section as efficiently as possible in accordance with this title and applicable State laws; 

(B) guidance to prevent waste, fraud, and abuse; and 

(C) guidance to avoid the use of funds made available 

under this section to finance the expansion of any public 

water system in anticipation of future population growth. 


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30 

The guidance and regulations shall also ensure that the States, 

and public water systems receiving assistance under this section, use accounting, audit, and fiscal procedures that conform 

to generally accepted accounting standards. 

(4) STATE REPORT.—Each State administering a loan fund 

and assistance program under this subsection shall publish 

and submit to the Administrator a report every 2 years on its 

activities under this section, including the findings of the most 

recent audit of the fund and the entire State allotment. The 

Administrator shall periodically audit all State loan funds established by, and all other amounts allotted to, the States pursuant to this section in accordance with procedures established 

by the Comptroller General. 

(5) TRANSFER OF FUNDS.— 

(A) IN GENERAL.—The Governor of a State may— 

(i)(I) reserve not more than 33 percent of a capitalization grant made under this section; and 

(II) add the funds reserved to any funds provided to 

the State under section 601 of the Federal Water Pollution Control Act (33 U.S.C. 1381); and 

(ii)(I) reserve for any fiscal year an amount that does 

not exceed the amount that may be reserved under 

clause (i)(I) for that year from capitalization grants 

made under section 601 of that Act (33 U.S.C. 1381); 

and 

(II) add the reserved funds to any funds provided to 

the State under this section. 

(B) STATE MATCH.—Funds reserved under this paragraph 

shall not be considered to be a State match of a capitalization grant required under this section or section 602(b) of 

the Federal Water Pollution Control Act (33 U.S.C. 

1382(b)). 

* * * * * * * 

(k) OTHER AUTHORIZED ACTIVITIES.— 

(1) IN GENERAL.—Notwithstanding subsection (a)(2), a State 

may take each of the following actions: 

(A) * * * 

* * * * * * * 

(2) LIMITATION.—For each fiscal year, the total amount of assistance provided and expenditures made by a State under this 

subsection may not exceed 15 percent of the amount of the capitalization grant received by the State for that year and may 

not exceed 10 percent of that amount for any one of the following activities: 

(A) To acquire land or conservation easements pursuant 

to paragraph (1)(A)(i). 

(B) To provide funding to implement voluntary, incentive-based source water quality protection measures pursuant to clauses (ii) and (iii) of paragraph (1)(A). 

(C) To provide assistance through a capacity development strategy pursuant to paragraph (1)(B). 


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31 

(D) To make expenditures to delineate or assess source 

water protection areas pursuant to paragraph (1)(C) (including implementation of source water protection plans). 

* * * * * * * 

ø(m) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to carry out the purposes of this section 

$599,000,000 for the fiscal year 1994 and $1,000,000,000 for each 

of the fiscal years 1995 through 2003. To the extent amounts authorized to be appropriated under this subsection in any fiscal year 

are not appropriated in that fiscal year, such amounts are authorized to be appropriated in a subsequent fiscal year (prior to the fiscal year 2004). Such sums shall remain available until expended.¿ 

(m) AUTHORIZATION OF APPROPRIATIONS.— 

(1) IN GENERAL.—There are authorized to be appropriated to 

carry out this section— 

(A) $1,500,000,000 for fiscal year 2008; 

(B) $2,000,000,000 for each of fiscal years 2009 and 

2010; 

(C) $3,500,000,000 for fiscal year 2011; and 

(D) $6,000,000,000 for fiscal year 2012. 

(2) AVAILABILITY.—Amounts made available under this subsection shall remain available until expended. 

(3) RESERVATION FOR NEEDS SURVEYS.—Of the amount made 

available under paragraph (1) to carry out this section for a fiscal year, the Administrator may reserve not more than 

$1,000,000 per year to pay the costs of conducting needs surveys 

under subsection (h). 

* * * * * * * 

(s) NEGOTIATION OF CONTRACTS.— 

(1) IN GENERAL.—A contract to be carried out using funds directly made available by a capitalization grant under this section for program management, construction management, feasibility studies, preliminary engineering, design, engineering, surveying, mapping, or architectural or related services shall be 

negotiated in the same manner as— 

(A) a contract for architectural and engineering services 

is negotiated under chapter 11 of title 40, United States 

Code; or 

(B) an equivalent State qualifications-based requirement 

(as determined by the Governor of the State). 

(2) EXEMPTION FOR SMALL COMMUNITIES.—Paragraph (1) 

shall not apply to a contract described in that paragraph for 

program management, construction management, feasibility 

studies, preliminary engineering, design, engineering, surveying, mapping, or architectural or related services for a community of 10,000 or fewer individuals. 

* * * * * * * 

Æ 


wwoods2 on PRODPC68 with REPORTS