69–010 

Calendar No. 1036 

110TH CONGRESS REPORT " ! SENATE 2d Session 110–475 

AMENDING THE SAFE DRINKING WATER ACT TO PROVIDE GRANTS TO SMALL PUBLIC DRINKING WATER 

SYSTEMS 

SEPTEMBER 22 (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 

[To accompany S. 1933] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Environment and Public Works, to which was 

referred the bill (S. 1933) to amend the Safe Drinking Water Act 

to provide grants to small public drinking water systems, having 

considered the same reports favorably thereon and recommends 

that the bill do pass. 

GENERAL STATEMENT AND BACKGROUND

SUMMARY AND NEED FOR LEGISLATION

This Committee, the U.S. Environmental Protection Agency 

(EPA), state officials, health experts, and water utilities recognize 

that there are special challenges for many small drinking water 

systems seeking to provide the highest quality drinking water. EPA 

defines a small system as one serving fewer than 3,300 people. According to EPA’s assessment of drinking water needs in 2003 (published in 2005), 45,000 of the nation’s 54,000 community water systems are small systems serving fewer than 3,300 people, with 


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1 Environmental Protection Agency, ‘‘Drinking Water Infrastructure Needs Survey and Assessment; Third Report to Congress,’’ page 7 (2005). In addition, systems serving between 3,301 and 

10,000 people also have substantial needs not separately estimated in EPA’s report. 2 Ibid at 11. 

needs exceeding $34 billion over the next 20 years.1 EPA’s review 

concluded: 

Small water systems face many unique challenges in providing 

safe drinking water to consumers. The substantial capital investments required to rehabilitate, upgrade, or install infrastructure, 

without the economies of scale available to larger systems, represent one challenge. Although the total small system need is modest compared to the need of larger systems, the costs borne on a 

per-household basis by small systems are significantly higher than 

those of larger systems.2

As noted by the National Academy of Sciences’ National Research Council (NRC) in its 1997 review of small system drinking 

water challenges, ‘‘meeting drinking water standards is most difficult for water systems in small communities. Small communities 

often cannot afford the equipment and qualified operators necessary to ensure compliance with safe drinking water standards.’’ 

Many of the Academies’ findings and recommendations continue 

to be relevant today. The Academy panel noted that increases in 

both the number of drinking water regulations and the number of 

small community water systems over the past three decades have 

made the problem of providing safe drinking water to small communities even more challenging. The panel suggested that ‘‘the solution to the problem of providing safe drinking water to small 

communities has three elements, each equally important: (1) providing affordable water treatment technologies, (2) creating the institutional structure necessary to ensure the financial stability of 

water systems, and (3) improving programs to train small system 

operators in all aspects of water system maintenance and management.’’ Thus, the panel highlighted the importance of adequate 

funding for efforts to assist small system operators with affordable 

water treatment technologies and to offer technical assistance. 

OBJECTIVES AND OVERVIEW OF THE LEGISLATION

The goal of the legislation is to amend the Safe Drinking Water 

Act to provide grants to small public drinking water systems. It includes a program for Indian tribes, and numerous measures to assist small water systems in complying with national primary drinking water regulations. 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title 

This section provides that the Act may be cited as the ‘‘Small 

Community Drinking Water Funding Act.’’ 

Sec. 2. Findings and purpose 

This section finds that drinking water standards can place financial burdens on public water systems, especially systems that serve 

fewer than a few thousand people, and that some small public 

water systems have experienced water contamination problems 

that may pose a significant risk to the health of water consumers. 


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It makes numerous other findings respecting the special needs of 

small water systems, including the need for scientific, technical, 

and professional resources, and for support for capital investments. 

This section establishes that the purpose of this Act is to establish 

a program to provide grants to small public water systems to meet 

applicable national primary drinking water regulations under the 

Safe Drinking Water Act (42 U.S.C. 300f et seq.), maintain water 

costs at a reasonable level for the communities served by small 

public water systems, and obtain technical assistance to develop 

the capacity to sustain operations over the long term. 

Sec. 3. Small public water system assistance program 

This section refines the definitions in the Act including the definition of Indian Tribe in section 1401(14) of the Safe Drinking 

Water Act to ensure that they are eligible for assistance under the 

new small public water system assistance program. This section establishes the small public water system assistance program, defining eligible activity, eligible entity, and eligible state. Small system 

is defined to include public water systems serving up to 10,000 people for the purposes of this Act. 

This section allocates funds for grants to small public water systems, and for State and Indian Tribe programs to assist them. It 

also authorizes $750 million per year to carry out this program. 

LEGISLATIVE HISTORY

Senator Reid introduced S. 1933 on August 1, 2007 with Senators Ensign, Boxer, Baucus, Murray, Clinton, Sanders, and 

Conrad. Senator Klobuchar later joined as a cosponsor. The bill 

was referred to the Committee on Environment and Public Works, 

and was ordered reported favorably out of the Committee without 

amendment on July 31, 2008. 

ROLLCALL VOTES

S. 1933 passed the Committee by voice vote on July 31, 2008, 

with Senator Inhofe requesting that he be recorded as voting aye. 

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 bill does not create any additional regulatory burdens, nor 

will it cause any adverse impact on the personal privacy of individuals. 

MANDATES ASSESSMENT

In compliance with the Unfunded Mandates Reform Act of 1995 

(Pub. L. 104–4), the Committee finds that S. 1933 would impose no 

Federal intergovernmental unfunded mandates on State, local, or 

tribal governments. 


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CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

AUGUST 19, 2008. 

Hon. BARBARA BOXER, 

Chairman, Committee on Environment and Public Works, 

U.S. Senate, Washington, DC. 

DEAR MADAM CHAIRMAN: The Congressional Budget Office has 

prepared the enclosed cost estimate for S. 1933, the Small Community Drinking Water Funding Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Susanne S. Mehlman. 

Sincerely, 

PETER R. ORSZAG. 

Enclosure. 

S. 1933—Small Community Drinking Water Funding Act 

Summary: S. 1933 would require the Environmental Protection 

Agency (EPA) to establish a Small Public Water System Assistance 

Program. This legislation would authorize the appropriation of 

$750 million for each of fiscal years 2009 through 2014 for EPA to 

administer this new program and to provide grants to small public 

drinking water systems located in states or areas governed by Indian tribes. Assuming appropriation of the authorized amounts, 

CBO estimates that implementing S. 1933 would cost $3.1 billion 

over the 2009–2013 period and $1.4 billion after 2013. Enacting S. 

1933 would not affect direct spending or revenues. 

S. 1933 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 S. 1933 is shown in the following table. The costs 

of this legislation fall within budget function 300 (natural resources 

and environment). For this estimate, CBO assumes that S. 1933 

will be enacted near the start of fiscal year 2009 and that the 

amounts authorized by the bill will be appropriated each year. Estimated outlays are based on historical spending patterns for similar programs. 

By fiscal year, in millions of dollars— 

2009 2010 2011 2012 2013 2009–2013 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Authorization Level ............................................... 750 750 750 750 750 3,750 

Estimated Outlays ................................................ 300 600 690 735 750 3,075 

Intergovernmental and private-sector impact: S. 1933 contains no 

intergovernmental or private-sector mandates as defined in UMRA, 

and state, local, and tribal governments would benefit from the 

funds authorized by this bill. The bill would establish grant programs to support small public water systems. The grant programs 

would be voluntary, and the associated requirements for participation would not be mandates under UMRA. 

Estimate prepared by: Federal Costs: Susanne S. Mehlman; Impact on State, Local, and Tribal Governments: Burke Doherty; Impact on the Private Sector: Amy Petz. 


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

Budget Analysis. 


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ADDITIONAL VIEWS 

I have spent much of my political career advocating for rural 

communities who lack the financial capability to comply with oftentimes expensive drinking water regulations. S. 1933, the Small 

Community Drinking Water Funding Act, takes a step in the right 

direction by providing much needed financial assistance to small 

public water systems struggling to keep up with new regulations 

and escalating construction costs. However, Congress should go further by requiring the Environmental Protection Agency (EPA) to 

develop a lower, more reasonable affordability threshold that will 

lead to new variance technologies, ultimately driving down the disproportionate cost of compliance to rural communities while still 

adequately protecting human health. For that reason, I filed 

amendments, but still support the underlying bill. 

The purpose of my amendments is to ensure that small towns 

across the country have safe, reliable and affordable drinking 

water. I introduced the Small Systems Safe Drinking Water Act 

that helps communities achieve these ends through several means. 

First, my legislation provides technical assistance to communities 

that lack the scientific and technical backgrounds to achieve compliance and operate complicated treatment facilities. 

My legislation also requires the Environmental Protection Agency to revise their affordability criteria. According to EPA, families 

can afford water rates of 2.5 percent of their annual median household income, or $1,000 per household. For some families, paying 

$83 a month for water is not a hardship but for so many more, it 

is a near impossibility. Therefore, there must be some flexibility in 

the calculation that incorporates the ability of the truly disadvantaged to pay these costs. Forcing systems to raise rates beyond 

what their ratepayers can afford may cause far more damage than 

intentioned. EPA needs to closely examine how it determines affordability and must identify variance technologies to assist the 

many hardship communities across the country. 

Additionally, this bill directs EPA to take additional steps when 

making this affordability determination. For rules that are governed by the new affordability standard, EPA must identify a variance technology for rules found unaffordable. Without such a technology, the EPA cannot take an enforcement action against a system serving less than 10,000 people. 

Most importantly, this bill requires the Federal Government to 

pay for these unfunded mandates. In 1995, Congress passed the 

Unfunded Mandates Reform Act to ensure that the Federal Government pays the costs incurred by state and local governments in 

complying with the certain requirements under Federal statutes 

and regulations. The current problem is two-fold; our communities 

operate under too many regulations and not enough money to pay 

for them. Funding legislation is important but until that money beVerDate Aug 31 2005 01:18 Sep 24, 2008 Jkt 069010 PO 00000 Frm 00006 Fmt 6604 Sfmt 6604 E:\HR\OC\SR475.XXX SR475

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comes available, it is unreasonable to penalize and fine local communities because they cannot afford to pay for regulations the federal government imposed on them. 

Drinking water and treatment works are obvious necessities for 

functioning and healthy communities that can be vulnerable to natural disasters and terrorist attacks. For this reason, I offered an 

amendment in relation to my Water Security Act of 2007. My 

amendment creates a partnership with local communities to secure 

their drinking and wastewater treatment works facilities. The language authorizes grants for communities to conduct vulnerability 

assessments, implement security measures, develop emergency response plan, and for needed technical assistance. Many communities have finished vulnerability assessments on their drinking 

water facilities, but lack the resources and technical assistance to 

go the next step and implement security plans and upgrade security features. It is imperative that Congress not ignore 

vulnerabilities and needs at community drinking water and treatment works facilities. 

JAMES M. INHOFE. 


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(8) 

1This title, the ‘‘Safe Drinking Water Act’’, consists of title XIV of the Public Health Service 

Act (42 U.S.C. 300f–300j–9) as added by Public Law 93–523 (Dec. 16, 1974) and the amendments made by subsequent enactments. 

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 XIV OF THE PUBLIC HEALTH SERVICE ACT (THE 

SAFE DRINKING WATER ACT) 1

[As Amended Through P.L. 109–58, Enacted August 8, 2005] 

TITLE XIV—SAFETY OF PUBLIC WATER SYSTEMS 

SHORT TITLE

SEC. 1400. This title may be cited as the ‘‘Safe Drinking Water 

Act’’. 

PART A—DEFINITIONS

DEFINITIONS

SEC. 1401. For purposes of this title: 

(1) The term ‘‘primary drinking water regulation’’ means a 

regulation which— 

(A) applies to public water systems; 

(B) specifies contaminants which, in the judgment of the 

Administrator, may have any adverse effect on the health 

of persons; 

(C) specifies for each such contaminant either— 

(i) a maximum contaminant level, if, in the judgment of the Administrator, it is economically and technologically feasible to ascertain the level of such contaminant in water in public water systems, or 

(ii) if, in the judgment of the Administrator, it is not 

economically or technologically feasible to so ascertain 

the level of such contaminant, each treatment technique known to the Administrator which leads to a reduction in the level of such contaminant sufficient to 

satisfy the requirements of section 1412; and 

(D) contains criteria and procedures to assure a supply 

of drinking water which dependably complies with such 

maximum contaminant levels; including accepted methods 


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for quality control and testing procedures to insure compliance with such levels and to insure proper operation and 

maintenance of the system, and requirements as to (i) the 

minimum quality of water which may be taken into the 

system and (ii) siting for new facilities for public water 

systems. At any time after promulgation of a regulation referred to in this paragraph, the Administrator may add 

equally effective quality control and testing procedures by 

guidance published in the Federal Register. Such procedures shall be treated as an alternative for public water 

systems to the quality control and testing procedures listed 

in the regulation. 

(2) * * * 

* * * * * * * 

(14) The term ‘‘Indian Tribe’’ means any Indian tribe having 

a Federally recognized governing body carrying out substantial 

governmental duties and powers over any area. For purposes 

of section ø1452¿1452 and part G, the term includes any Native village (as defined in section 3(c) of the Alaska Native 

Claims Settlement Act (43 U.S.C. 1602(c))). 

* * * * * * * 

SEC. 1465. (a) SCHOOL DRINKING WATER PROGRAMS.—* * * 

* * * * * * * 

PART G—SMALL PUBLIC WATER SYSTEM ASSISTANCE

SEC. 1471. DEFINITIONS. 

In this part: 

(1) ELIGIBLE ACTIVITY.— 

(A) IN GENERAL.—The term ‘‘eligible activity’’ means an 

activity concerning a small public water system (including 

obtaining technical assistance) that is carried out by an eligible entity for a purpose consistent with section 1473(c)(1) 

or 1474(c)(1), as appropriate. 

(B) EXCLUSION.—The term ‘‘eligible activity’’ does not include any activity to increase the population served by a 

small public water system, except to the extent that the 

State under section 1473(b)(1) or the Administrator under 

section 1474(b)(1) determines an activity to be necessary 

to— 

(i) achieve compliance with a national primary 

drinking water regulation; and 

(ii) provide a water supply to a population that, as 

of the date of enactment of this part, is not served by 

a safe public water system. 

(2) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means a 

small public water system that— 

(A) is located in a State or an area governed by an Indian Tribe; and 

(B)(i) if located in a State, serves a community that, 

under affordability criteria established by the State under 

section 1452(d)(3), is determined by the State to be— 

(I) a disadvantaged community; or 


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(II) a community the State expects to become a disadvantaged community as a result of carrying out an 

eligible activity; or 

(ii) if located in an area governed by an Indian Tribe, 

serves a community that is determined by the Administrator, under criteria published by the Administrator under 

section 1452(d)(3) and in consultation with the Secretary, 

to be— 

(I) a disadvantaged community; or 

(II) a community the Administrator expects to become a disadvantaged community as a result of carrying out an eligible activity. 

(3) ELIGIBLE STATE.—The term ‘‘eligible State’’ means a State 

that has— 

(A) adopted, and is implementing, an approved operator 

certification program under section 1419; and 

(B) established affordability criteria under section 

1452(d)(3) for use in identifying disadvantaged communities. 

(4) PROGRAM.—The term ‘‘Program’’ means the Small Public 

Water System Assistance Program established under section 

1472(a). 

(5) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of 

Health and Human Services, acting through the Director of the 

Indian Health Service. 

(6) SMALL PUBLIC WATER SYSTEM.—The term ‘‘small public 

water system’’ means a public water system (including a community water system and a noncommunity water system) that 

serves a population of 10,000 or fewer. 

SEC. 1472. SMALL PUBLIC WATER SYSTEM ASSISTANCE PROGRAM. 

(a) ESTABLISHMENT.—Not later than July 1, 2008, the Administrator shall establish within the Environmental Protection Agency a 

Small Public Water System Assistance Program. 

(b) DUTIES.—The head of the Program shall— 

(1) in accordance with section 1474, establish and administer 

a small public water system assistance program for, and provide grants to, eligible entities located in areas governed by Indian Tribes, for use in carrying out eligible activities; 

(2) identify, and prepare annual prioritized lists of, activities 

for eligible entities located in areas governed by Indian Tribes 

that are eligible for grants under section 1474; 

(3) provide funds to States for use in establishing small public water system assistance programs under section 1473 that 

award grants to eligible entities to carry out eligible activities; 

and 

(4) prepare, and submit to the Administrator, the reports required under subsection (d). 

(c) ALLOCATION OF FUNDS.— 

(1) STATES.— 

(A) IN GENERAL.—Subject to subparagraphs (B) through 

(D) and paragraph (2)(A), for each fiscal year, the Administrator, through the head of the Program, using the most recent available needs survey conducted by the Administrator 

under section 1452(h), shall allocate the funds made availVerDate Aug 31 2005 01:18 Sep 24, 2008 Jkt 069010 PO 00000 Frm 00010 Fmt 6604 Sfmt 6603 E:\HR\OC\SR475.XXX SR475

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able to carry out the Program for the fiscal year among eligible States based on the ratio that— 

(i) the financial need associated with treatment 

projects for small public water systems in the State; 

bears to 

(ii) the total financial need associated with treatment 

projects for all small public water systems in all 

States. 

(B) ADDITIONAL REQUIREMENTS.—Any additional financial needs of small public water systems associated with the 

cost of treatment projects needed to comply with a national 

primary drinking water regulation that is promulgated 

after the most recent needs survey conducted under section 

1452(h) shall be factored into the determination of financial need under clauses (i) and (ii) of subparagraph (A) for 

each fiscal year. 

(C) MINIMUM ALLOCATION.—An allocation of funds to a 

State for a fiscal year under subparagraph (A), taking into 

consideration any additional financial needs described in 

subparagraph (B), shall be in an amount that is at least 

1 percent of the amount of funds available for that fiscal 

year. 

(D) REDISTRIBUTION IF NONUSE.—If a State does not 

qualify for, or fails to request, funds allocated to the State 

under subparagraph (A) in any fiscal year, the Administrator shall redistribute the funds among the States that— 

(i) request funds for that fiscal year; and 

(ii) are eligible to receive the funds under subparagraph (A) for that fiscal year. 

(2) INDIAN TRIBES.— 

(A) IN GENERAL.—For each fiscal year, in accordance 

with subparagraph (B), 3 percent of the total amount of 

funds made available to carry out the Program for the fiscal year shall be allocated by the Administrator to provide 

grants to eligible entities that are located in areas governed 

by Indian Tribes through the program established under 

section 1474(a). 

(B) USE OF FUNDS.— 

(i) IN GENERAL.—For each fiscal year, the Administrator shall award, on a competitive basis, not less 

than 1.5 percent of the funds allocated under subparagraph (A) to nonprofit technical assistance organizations, to be used for the purposes of— 

(I) assisting the Administrator in preparing the 

list required under section 1474(b) (including assisting the Administrator in identifying the highest 

priority eligible activities for eligible entities located in areas governed by Indian Tribes for which 

a grant under section 1474 may be used); 

(II) assisting eligible entities located in areas 

governed by Indian Tribes in— 

(aa) assessing needs relating to eligible activities; and 


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(bb) identifying available sources of funding 

to meet the cost-sharing requirement of section 

1474(f)(1); and 

(III) assisting eligible entities located in areas 

governed by Indian Tribes that receive funding 

under section 1474 in— 

(aa) planning, implementing, and maintaining eligible activities that are funded under 

that section; and 

(bb) preparing reports required under section 1474(h). 

(ii) CONSULTATION.—Each nonprofit technical assistance organization that receives funds under clause (i) 

shall consult with the Administrator, through the head 

of the program, before carrying out any activity for the 

purposes described in subclauses (II)(aa) and (III)(aa) 

of that clause. 

(iii) NO FUNDS FOR LOBBYING EXPENSES.—None of 

the funds made available to a nonprofit technical assistance organization under clause (i) shall be used to 

pay lobbying expenses. 

(3) PROGRAM.—For each fiscal year, the Administrator may 

use not more than 0.1 percent of the funds made available to 

carry out the Program to pay reasonable costs incurred in the 

administration of the Program. 

(d) REPORTS.—Not later than January 1, 2009, and annually 

thereafter through January 1, 2014, the Administrator shall— 

(1) submit, to the Committee on Energy and Commerce of the 

House of Representatives and the Committee on Environment 

and Public Works of the Senate, a report that, for the preceding 

fiscal year— 

(A) lists the eligible activities for eligible entities, as prepared under sections 1473(b)(1) and 1474(b)(1), located in 

areas governed by Indian Tribes and in each State receiving funds under this part; 

(B) identifies the number of grants awarded by each 

State, and by the Administrator to eligible entities located 

in areas governed by Indian Tribes, under this part; 

(C) identifies each eligible entity that received a grant to 

carry out an eligible activity; 

(D) identifies the amount of each grant provided to an eligible entity to carry out an eligible activity; and 

(E) describes each eligible activity funded by such a grant 

(including the status of the eligible activity); and 

(2) make the report under paragraph (1) available to the public. 

SEC. 1473. STATE SMALL PUBLIC WATER SYSTEM ASSISTANCE PROGRAMS. 

(a) IN GENERAL.—To be eligible to receive funding under this 

part, a State shall— 

(1) be an eligible State; 

(2) not later than July 1, 2008 (if funding is sought for fiscal 

year 2008) or not later than September 30 of any of fiscal years 

2008 through 2014 (if funding is sought for the following fiscal 


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year), establish a small public water system assistance program— 

(A) under which the requirements of subsection (b), oversight, and related activities (other than financial administration) with respect to the program are administered— 

(i) in the case of a State that is exercising primary 

enforcement responsibility for public water systems, by 

the State agency having primary responsibility for administration of the State program under section 1413; 

and 

(ii) in the case of a State that is not exercising primary enforcement authority for public water systems, 

by a State agency selected by the Governor of the State; 

and 

(B) that meets the requirements of this section; and 

(3) for each fiscal year for which funding is sought under this 

section— 

(A) in preparing an intended use plan under section 

1452(b), after providing for public review and comment, 

prepare an annual list of eligible activities for eligible entities in the State in accordance with subsection (b); and 

(B) prepare and submit to the Administrator a request 

for the funding, by such date and in such form as the Administrator shall prescribe. 

(b) PROGRAM PRIORITY REQUIREMENT.— (1) LIST OF ELIGIBLE ACTIVITIES.—A small public water system assistance program established under subsection (a) shall, 

for each fiscal year for which funding is sought, identify, and, 

using the priority criteria described in paragraph (2) and considering the additional criteria described in paragraph (3), list 

in descending order of priority, eligible activities for eligible entities in the State for which funds provided from a grant under 

this part may be used. 

(2) PRIORITY CRITERIA.—In preparing the list under paragraph (1), a small public water system assistance program shall 

give priority for the use of grants to eligible activities that— 

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

(B) are necessary to ensure compliance with national primary water regulations applicable to eligible entities under 

section 1412; and 

(C) assist systems most in need, as calculated on the 

basis of median household income, under affordability criteria established by the State under section 1452(d)(3). 

(3) ADDITIONAL CRITERIA.—In addition to the priority criteria 

described in paragraph (2), a small public water system assistance program shall, in preparing a list under paragraph (1), 

consider giving additional priority to any listed eligible activities that are to be carried out by communities that form management cooperatives (including management cooperatives between systems that do not have connections). 

(c) USE OF FUNDS.—Using any funds received by a State under 

this section for a fiscal year, in accordance with the list prepared 

under subsection (b), a small public water system assistance program established by the State under subsection (a)— 


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(1) shall provide to an eligible entity, on a cost-shared basis, 

a grant to be used for an eligible activity (including source 

water protection) the purpose of which is compliance with national primary drinking water regulations applicable to the eligible entity under section 1412; 

(2) shall— 

(A) award, on a competitive basis, not less than 1.5 percent of the funds to nonprofit technical assistance organizations to be used for the purposes of— 

(i) assisting the State in preparing the list required 

under subsection (b) (including assisting the State in 

identifying the highest priority eligible activities for eligible entities located in the State for which a grant 

under this section may be used); and 

(ii) assisting eligible entities in— 

(I) assessing needs relating to eligible activities; 

(II) identifying available sources of funding to 

meet the cost-sharing requirement of subsection (f); 

and 

(III) planning, implementing, and maintaining 

any eligible activities of the eligible entities that receive funding under this section; 

(B) require each nonprofit technical assistance organization that receives funds under subparagraph (A) to consult 

with the State, through the head of the small public water 

assistance program, before carrying out any activity for the 

purposes described in subclauses (I) and (III) of subparagraph (A)(ii); and 

(C) require that none of the funds made available to a 

nonprofit technical assistance organization under subparagraph (A) be used to pay lobbying expenses; and 

(3) may use not to exceed 1 percent of the funds allocated to 

the State to pay reasonable costs incurred in the administration 

of the small public water system assistance program. 

(d) LIMITATION ON USE OF FUNDS.—For each fiscal year, not more 

than 5 percent of the funds received by an eligible entity under this 

section may be used to obtain technical assistance in planning, implementing, and maintaining eligible activities that are funded 

under this section. 

(e) LIMITATION ON RECEIPT OF FUNDS.— 

(1) IN GENERAL.—Except as provided in paragraph (2), a 

grant under this section shall not be provided to an eligible entity that, as determined by the State— 

(A) does not have the technical, managerial, and financial capability to ensure compliance with national primary 

drinking water regulations applicable to the eligible entity 

under section 1412; or 

(B) is in significant noncompliance with any applicable 

national primary drinking water regulation. 

(2) EXCEPTION FOR RECEIPT OF GRANT.—An eligible entity described in paragraph (1) may receive a grant under this section 

only— 


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(A) if the State determines that use of the grant will ensure compliance with national primary drinking water regulations applicable to the eligible entity under section 1412; 

(B)(i) to restructure or consolidate the facility to achieve 

compliance with applicable national primary drinking 

water regulations; or 

(ii) in a case in which restructuring or consolidation of 

the facility is not practicable, if the State determines that— 

(I) the eligible entity has made a good faith effort to 

achieve compliance with applicable national primary 

drinking water regulations; and 

(II) the eligible entity is adhering to an enforceable 

schedule for achieving those regulations; and 

(C) in a case in which paragraph (1)(A) applies to an eligible entity, and the eligible entity agrees to undertake feasible and appropriate changes in operations (including 

changes in ownership, management, accounting, rates, 

maintenance, consolidation, provision of an alternative 

water supply, or other procedures), if the State determines 

that the measures are necessary to ensure that the eligible 

entity has the technical, managerial, and financial capability to comply with applicable national primary drinking 

water regulations over the long term. 

(3) REVIEW.—Before providing assistance under this section to 

an eligible entity that is in significant noncompliance with any 

national primary drinking water regulation applicable to the eligible entity under section 1412, the State shall conduct a review to determine whether paragraph (1)(A) applies to the entity. 

(f) COST SHARING.— 

(1) IN GENERAL.— (A) LIMIT.—Except as provided in paragraph (2), the 

share of the total cost of an eligible activity funded by a 

grant under this section shall not exceed 80 percent. 

(B) USE OF OTHER FEDERAL FUNDS.—To pay the portion 

of an eligible activity that may not be funded by a grant 

under this section, an eligible entity may use Federal financial assistance other than assistance received under this 

section. 

(2) WAIVER OF COST-SHARING REQUIREMENT.— 

(A) IN GENERAL.—Subject to subparagraph (B), a State 

may waive the requirement of an eligible entity to pay all 

or a portion of the share of an eligible activity that may not 

be funded by a grant under this section, based on a determination by the State that the eligible entity is unable to 

pay any or all of the share. 

(B) LIMITATION.—For each fiscal year in which a State 

receives funding under this section, the total amount of 

cost-share waivers provided by the State under subparagraph (A) shall not exceed 30 percent of the amount of 

funding received by the State for the fiscal year under section 1472(c)(1). 

(g) UNOBLIGATED FUNDS.—Any funds not obligated by the State 

for a purpose consistent with subsection (c) within 1 year after the 


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16 

date of the allocation of the funds by the Administrator under section 1472(c) shall be returned to the Administrator for reallocation 

under that section. 

(h) REPORTS.—Not later than November 1 following each fiscal 

year in which a State receives funding under this section, the State 

shall— 

(1) submit to the Administrator a report that, for the preceding fiscal year— 

(A) lists the eligible activities for eligible entities, as prepared under subsection (b); 

(B) identifies the number of grants awarded by the State 

small public water system assistance program to eligible 

entities; 

(C) identifies each eligible entity that received a grant to 

carry out an eligible activity; 

(D) identifies the amount of each grant provided to an eligible entity to carry out an eligible activity; and 

(E) describes each eligible activity funded by such grants 

(including the status of the eligible activity); and 

(2) make the report under paragraph (1) available to the public. 

SEC. 1474. SMALL PUBLIC WATER SYSTEM ASSISTANCE PROGRAM FOR 

INDIAN TRIBES. 

(a) ESTABLISHMENT.—Not later than July 1, 2008, the Administrator shall establish a small public water system assistance program for Indian Tribes, through which eligible entities located in 

areas governed by the Indian Tribe may receive grants for eligible 

activities under this part. 

(b) PROGRAM PRIORITY REQUIREMENT.— 

(1) LIST OF ELIGIBLE ACTIVITIES.— 

(A) IN GENERAL.—The Administrator, acting through the 

head of the small public water system assistance program 

for Indian Tribes, in consultation with the Secretary, shall, 

for each fiscal year, identify, and, using the priority criteria 

described in paragraph (2) and considering the additional 

criteria described in paragraph (3), list in descending order 

of priority, eligible activities for eligible entities located in 

areas governed by Indian Tribes for which funds provided 

from a grant under this part may be used. 

(B) COORDINATION.— 

(i) IN GENERAL.—To the maximum extent practicable, 

the Administrator shall ensure that the list under subparagraph (A) is coordinated with any needs assessment conducted under section 1452(i)(4). 

(ii) ADDITIONAL CONSIDERATION.—Any additional financial needs of small public water systems located in 

areas governed by Indian Tribes that are associated 

with the cost of complying with a national primary 

drinking water regulation that is promulgated after the 

most recent needs survey conducted under section 

1452(i)(4) shall be factored into the determination of financial need for, and prioritization of, eligible activities under this section. 


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(2) PRIORITY CRITERIA.—In preparing the list under paragraph (1), the Administrator shall give priority for the use of 

grants to eligible activities that— 

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

(B) are necessary to ensure compliance with national primary water regulations applicable to eligible entities under 

section 1412; and 

(C) assist systems most in need, as calculated on the 

basis of median household income, under affordability criteria published by the Administrator under section 

1452(d)(3). 

(3) ADDITIONAL CRITERIA.—In addition to the priority criteria 

described in paragraph (2), the Administrator shall, in preparing a list under paragraph (1), consider giving additional 

priority to any listed eligible activities that are to be carried out 

by communities that form management cooperatives (including 

management cooperatives between systems that do not have connections). 

(c) USE OF FUNDS.— 

(1) IN GENERAL.—Using funds allocated under section 

1472(c)(2)(A), the small public water system assistance program 

established under subsection (a) shall provide to an eligible entity located in an area governed by an Indian Tribe, on a costshared basis, a grant to be used for an eligible activity (including source water protection) the purpose of which is compliance 

with national primary drinking water regulations applicable to 

the eligible entity under section 1412. 

(2) ALLOCATION OF GRANT FUNDING.—For each fiscal year, 

taking into consideration the funding allocation under section 

1472(c)(2)(A) for the fiscal year, the head of the small public 

water assistance program established under subsection (a), in 

consultation with the Secretary, shall provide grants under 

paragraph (1) for the maximum number of eligible activities for 

which the funding allocation makes assistance available, based 

on the priority assigned by the Administrator to eligible activities under subsection (b). 

(d) LIMITATION ON USE OF FUNDS.—For each fiscal year, not more 

than 5 percent of the funds received by an eligible entity under this 

section may be used to obtain technical assistance in planning, implementing, and maintaining eligible activities that are funded 

under this section. 

(e) LIMITATION ON RECEIPT OF FUNDS.— 

(1) IN GENERAL.—Except as provided in paragraph (2), a 

grant under this section shall not be provided to an eligible entity that, as determined by the Administrator— 

(A) does not have the technical, managerial, and financial capability to ensure compliance with national primary 

drinking water regulations applicable to the eligible entity 

under section 1412; or 

(B) is in significant noncompliance with any applicable 

national primary drinking water regulation. 

(2) EXCEPTION FOR RECEIPT OF GRANT.—An eligible entity described in paragraph (1) may receive a grant under this section 

only— 


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(A) if the Administrator determines that use of the grant 

will ensure compliance with national primary drinking 

water regulations applicable to the eligible entity under section 1412; 

(B)(i) to restructure or consolidate the facility to achieve 

compliance with applicable national primary drinking 

water regulations; or 

(ii) in a case in which restructuring or consolidation of 

the facility is not practicable, if the Administrator determines that— 

(I) the eligible entity has made a good faith effort to 

achieve compliance with applicable national primary 

drinking water regulations; and 

(II) the eligible entity is adhering to an enforceable 

schedule for achieving those regulations; and 

(C) in a case in which paragraph (1)(A) applies to an eligible entity, and the eligible entity agrees to undertake feasible and appropriate changes in operations (including 

changes in ownership, management, accounting, rates, 

maintenance, consolidation, provision of an alternative 

water supply, or other procedures), if the Administrator determines that the measures are necessary to ensure that the 

eligible entity has the technical, managerial, and financial 

capability to comply with applicable national primary 

drinking water regulations over the long term. 

(3) REVIEW.—Before providing assistance under this section to 

an eligible entity that is in significant noncompliance with any 

national primary drinking water regulation applicable to the eligible entity under section 1412, the Administrator shall conduct a review to determine whether paragraph (1)(A) applies to 

the entity. 

(f) COST SHARING.— 

(1) IN GENERAL.— (A) LIMIT.—Except as provided in paragraph (2), the 

share of the total cost of an eligible activity funded by a 

grant under this section shall not exceed 80 percent. 

(B) USE OF OTHER FEDERAL FUNDS.—To pay the portion 

of an eligible activity that may not be funded by a grant 

under this section, an eligible entity may use Federal financial assistance other than assistance received under this 

section. 

(2) WAIVER OF COST-SHARING REQUIREMENT.— 

(A) IN GENERAL.—The Administrator may waive the requirement of an eligible entity to pay all or a portion of the 

share of eligible activity that may not be funded by a grant 

under this section based on a determination by the Administrator that the eligible entity is unable to pay any or all 

of the share. 

(B) LIMITATION.—For each fiscal year, the total amount 

of cost-share waivers provided by the Administrator under 

subparagraph (A) shall not exceed 30 percent of the amount 

of funding allocated to eligible entities located in areas governed by Indian Tribes for the fiscal year under section 

1472(c)(2)(A). 


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(g) UNOBLIGATED FUNDS.—Any funds not obligated by the small 

public water system assistance program established under subsection (a) for a purpose consistent with section 1472(c)(2)(B) and 

subsection (c) within 1 year after the date of allocation of the funds 

by the Administrator under section 1472(c)(2)(A) shall be returned 

to the Administrator for reallocation under that section. 

(h) REPORTS.—Not later than November 1 following each fiscal 

year in which an Indian Tribe receives funding under this section, 

the Indian Tribe shall submit to the Administrator a report that, for 

the preceding fiscal year— 

(1) identifies the number of grants awarded to eligible entities 

located in areas governed by the Indian Tribe; 

(2) identifies each such eligible entity that received a grant to 

carry out an eligible activity; 

(3) identifies the amount of each grant provided to such an 

eligible entity to carry out an eligible activity; and 

(4) describes each eligible activity funded by such grants (including the status of the eligible activity). 

SEC. 1475. AUTHORIZATION OF APPROPRIATIONS. 

There is authorized to be appropriated to carry out this part 

$750,000,000 for each of fiscal years 2008 through 2014. 

* * * * * * * 

Æ 


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