I

104TH CONGRESS

1ST SESSION H. R. 2747

To direct the Administrator of the Environmental Protection Agency to make

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

IN THE HOUSE OF REPRESENTATIVES

DECEMBER 7, 1995

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

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

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

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

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

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

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

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

to the Committee on Transportation and Infrastructure

A BILL

To direct the Administrator of the Environmental Protection

Agency to make grants to States for the purpose of

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

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
2

•HR 2747 IH

1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Water Supply Infra3 structure Assistance Act of 1995’’.

4 SEC. 2. PURPOSES.

5 The purposes of this Act are as follows:

6 (1) To provide grants for establishment of

7 State revolving funds for the purpose of providing fi8 nancial and technical assistance for the construction,

9 rehabilitation, and improvement of water supply sys10 tems, including treatment to remove pollutants from

11 navigable waters for the purpose of making such wa12 ters useable by water supply systems and for source

13 water quality protection programs.

14 (2) To provide for administrative efficiencies

15 through implementation of this Act relying on exist16 ing mechanisms of State water pollution control re17 volving loan fund programs established pursuant to

18 title VI of the Federal Water Pollution Control Act.

19 SEC. 3. LIMITATION ON STATUTORY CONSTRUCTION.

20 Nothing in this Act shall be construed as affecting

21 the requirements of title XIV of the Public Health Service

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

23 Safe Drinking Water Act.

24 SEC. 4. GRANTS TO STATES.

25 Subject to the provisions of this Act, the Adminis26 trator shall make grants to each State for the purpose
3

•HR 2747 IH

1 of establishing a water supply infrastructure account in

2 the State water pollution control revolving loan fund pro3 grams established pursuant to title VI of the Federal

4 Water Pollution Control Act, if any, to provide assistance

5 for the construction, rehabilitation, and improvement of

6 water supply systems.

7 SEC. 5. GRANT AGREEMENTS.

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

9 made available under this Act, a State shall enter into an

10 agreement with the Administrator which shall include, but

11 not be limited to, the specifications set forth in subsection

12 (b) of this section.

13 (b) SPECIFIC REQUIREMENTS.—The Administrator

14 shall enter into an agreement under this section with a

15 State only after the State has established to the satisfac16 tion of the Administrator that—

17 (1) the State will accept grant payments with

18 funds to be made available under this Act and will

19 deposit all such payments in the water supply infra20 structure account established by the State in accord21 ance with this Act;

22 (2) if the State has a water pollution control re23 volving fund established in accordance with title VI

24 of the Federal Water Pollution Control Act, the
4

•HR 2747 IH

1 State will establish the water supply infrastructure

2 account as a separate account in such fund;

3 (3) the State will deposit in the water supply

4 infrastructure account from State moneys an

5 amount equal to at least 20 percent of the total

6 amount of all grants which will be made to the State

7 with funds to be made available under this Act on

8 or before the date on which each grant payment will

9 be made to the State under this Act;

10 (4) the State will enter into binding commit11 ments to provide assistance in accordance with the

12 requirements of this Act an amount equal to 120

13 percent of the amount of each such grant payment

14 within 1 year after the receipt of such grant pay15 ment;

16 (5) the State will not make available any assist17 ance from the account unless the State has first de18 termined that the applicant—

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

20 charges to ensure that each recipient of water

21 supply services within the applicant’s jurisdic22 tion will pay its proportionate share of the cost

23 of operation and maintenance (including re24 placement) of any such services provided by the

25 applicant; and
5

•HR 2747 IH

1 (B) has legal, institutional, managerial,

2 and financial capability to ensure adequate con3 struction, operation, and maintenance of water

4 supply systems throughout the applicant’s juris5 diction;

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

7 necessary to ensure that, after construction, rehabili8 tation, and improvement of a water supply system

9 undertaken with funds directly made available by

10 grants under this Act, such system will provide

11 water supply services at the most economical cost;

12 and

13 (7) the State will make annual reports to the

14 Administrator on the actual use of funds in accord15 ance with section 606(d) of the Federal Water Pol16 lution Control Act.

17 SEC. 6. INCORPORATION OF FWPCA BY REFERENCE.

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

19 the Federal Water Pollution Control Act shall apply as

20 provided in this Act to accounts established by States

21 under this Act. For purposes of this Act, any reference

22 to the Federal Water Pollution Control Act and to any

23 section thereof shall be treated as a reference to such Act

24 or section as in effect on the date of the enactment of

25 this Act.
6

•HR 2747 IH

1 (b) TYPES OF ASSISTANCE.—Section 603(d) of the

2 Federal Water Pollution Control Act shall apply to ac3 counts established by States under this Act to the same

4 extent and in the same manner as such section applies

5 to water pollution control revolving funds under such Act;

6 except that the percentage of grant awards available for

7 administrative expenses under paragraph (7) of such sec8 tion shall be 5 percent instead of 4 percent.

9 (c) CORRECTIVE ACTION.—Section 605 of such Act

10 shall apply to a State’s agreement with the Administrator

11 under this Act and to requirements of this Act to the same

12 extent and in the same manner as such section applies

13 to a State’s agreement under section 602 of such Act and

14 the requirements of title VI of such Act.

15 (d) AUDITS, REPORTS, AND FISCAL CONTROLS.—

16 Subsections (a), (b), (d), and (e) of section 606 of such

17 Act shall apply to a State establishing an account under

18 this Act and to such account to the same extent and in

19 the same manner as such subsections apply to a State es20 tablishing a water pollution control revolving fund under

21 title VI of such Act and to such fund.

22 SEC. 7. WATER SUPPLY INFRASTRUCTURE REVOLVING

23 LOAN FUNDS.

24 (a) REQUIREMENTS FOR OBLIGATION OF GRANT

25 FUNDS.—Before a State may receive a grant with funds
7

•HR 2747 IH

1 made available under this Act, the State shall first estab2 lish a water supply infrastructure account which complies

3 with the requirements of this Act.

4 (b) ADMINISTRATOR.—Each State water supply in5 frastructure account shall be administered by an instru6 mentality of the State with such powers and limitations

7 as may be required to operate such account in accordance

8 with the requirements and objectives of this Act.

9 (c) PROJECTS ELIGIBLE FOR ASSISTANCE.—The

10 amounts of funds available to each State water supply in11 frastructure account shall be used only for providing fi12 nancial assistance for construction, rehabilitation, and im13 provement of a water supply system and for providing the

14 types of assistance authorized by subsection (d). The ac15 count shall be established, maintained, and credited with

16 repayments, and the account balance shall be available in

17 perpetuity for providing such assistance.

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

19 of assistance which may be made available under section

20 603(d) of the Federal Water Pollution Control Act from

21 a water supply infrastructure account of a State under

22 this Act—

23 (1) such account may be used to provide tech24 nical assistance with respect to construction, reha25 bilitation, and improvement of water supply systems;
8

•HR 2747 IH

1 (2) the interest derived from funds in such ac2 count or from loans made from such account may be

3 used by the State to make grants to pay up to 50

4 percent of the cost of construction, rehabilitation,

5 and improvement of a water supply system; and

6 (3) up to 10 percent of the funds in such ac7 count may be used to provide assistance, consistent

8 with nonpoint source management programs estab9 lished under section 319 of the Federal Water Pollu10 tion Control Act, for source water quality protection

11 programs to address pollutants in navigable waters

12 for the purpose of making such waters useable by

13 water supply systems.

14 SEC. 8. ALLOTMENT OF FUNDS.

15 (a) FISCAL YEAR 1996.—Sums authorized to be ap16 propriated pursuant to this Act for fiscal year 1996 shall

17 be allotted for such year by the Administrator not later

18 than the 10th day which begins after the date of the enact19 ment of this Act. Sums authorized for such fiscal year

20 shall be allotted in accordance with the following table:

States: Percentages:

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

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

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

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

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

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

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

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

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

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

Georgia ......................................................................................... 2.10
9

•HR 2747 IH

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

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

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

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

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

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

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

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

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

Maryland ...................................................................................... 1.42

Massachusetts .............................................................................. 1.15

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1 (b) FISCAL YEARS 1997 AND 1998.—Sums author2 ized to be appropriated pursuant to this Act for each of

3 fiscal years 1997 and 1998 shall be allotted by the Admin4 istrator in accordance with the relative needs of the States
10

•HR 2747 IH

1 for construction, rehabilitation, and improvement of water

2 supply systems as determined by the Administrator, in

3 consultation with the States.

4 (c) RESERVATION OF FUNDS FOR INDIAN TRIBES.—

5 Notwithstanding subsections (a) and (b), the Adminis6 trator shall reserve for each fiscal year not to exceed 1.5

7 percent of the amount made available to carry out this

8 Act for such fiscal year for the purpose of making grants

9 to Indian tribes for construction, rehabilitation, and im10 provement of water supply systems.

11 (d) ALLOTMENT PERIOD.—

12 (1) PERIOD OF AVAILABILITY FOR GRANT

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

14 for a fiscal year shall be available for obligation by

15 the State during the fiscal year for which sums are

16 authorized and during the following fiscal year; ex17 cept that for sums allotted in fiscal year 1996, such

18 period of availability shall be fiscal years 1996

19 through 1998.

20 (2) REALLOTMENT OF UNOBLIGATED FUNDS.—

21 The amount of any allotment not obligated by the

22 State by the last day of the period of availability es23 tablished by paragraph (1) shall be immediately re24 allotted by the Administrator on the basis of the

25 same ratio as is applicable to sums allotted under
11

•HR 2747 IH

1 this Act for the second fiscal year of such period.

2 None of the funds reallotted by the Administrator

3 shall be reallotted to any State which has not obli4 gated all sums allotted to such State in the first fis5 cal year of such period.

6 SEC. 9. DETERMINATION OF PRIORITY.

7 Each State establishing a water supply infrastructure

8 account shall determine the priority to be given projects

9 for construction, rehabilitation, and improvement of water

10 supply systems within the boundaries of the State taking

11 into account the relative financial and other needs for such

12 construction, rehabilitation, and improvement.

13 SEC. 10. NEEDS SURVEY.

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

15 with the States, shall make—

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

17 cost of needed construction, rehabilitation, and im18 provement of water supply systems in all of the

19 States and of the cost of needed construction in each

20 of the States; and

21 (2) a comprehensive study of the economic im22 pact on affected units of government of the cost of

23 installation of water supply systems and parts there24 of.
12

•HR 2747 IH

1 (b) SUBMISSION TO CONGRESS.—The Administrator

2 shall submit the detailed estimate and the comprehensive

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

4 than January 1, 1998, and January 1 of each even-num5 bered year thereafter. The Administrator shall also submit

6 recommendations for allotment of funds under this Act to

7 the States based on such estimates and on such additional

8 factors as the Administrator deems appropriate, including

9 financial need. Whenever the Administrator, pursuant to

10 this section, requests and receives an estimate of cost from

11 a State, the Administrator shall furnish copies of such es12 timate together with such detailed estimate to Congress.

13 SEC. 11. BUY AMERICAN.

14 (a) SENSE OF CONGRESS.—It is the sense of Con15 gress that a recipient of assistance under this Act should

16 purchase American-made equipment and products.

17 (b) NOTICE.—The Administrator shall provide to

18 each recipient of assistance under this Act a notice de19 scribing the sense of Congress set forth in subsection (a).

20 SEC. 12. DEFINITIONS.

21 In this Act, the following definitions apply:

22 (1) ADMINISTRATOR.—The term ‘‘Adminis23 trator’’ means the Administrator of the Environ24 mental Protection Agency.
13

•HR 2747 IH

1 (2) INDIAN TRIBE.—The term ‘‘Indian tribe’’

2 has the meaning such term has under section 518

3 of the Federal Water Pollution Control Act and in4 cludes Alaska Native Villages and former Indian res5 ervations in Oklahoma.

6 (3) STATE.—The term ‘‘State’’ means a State,

7 the District of Columbia, the Commonwealth of

8 Puerto Rico, the Virgin Islands, Guam, American

9 Samoa, the Commonwealth of the Northern Mariana

10 Islands, and the Trust Territory of the Pacific Is11 lands.

12 (4) WATER SUPPLY SYSTEM.—The term ‘‘water

13 supply system’’ means a system (owned by a govern14 mental entity, a nonprofit organization, or any other

15 private person regulated by a State public utility

16 commission and having the greatest public need for

17 assistance under this Act) for the provision to the

18 public of piped water for human consumption, if

19 such system has at least 15 service connections or

20 regularly serves at least 25 individuals. Such term

21 includes (A) any collection, treatment, storage, and

22 distribution facilities under control of the operator of

23 such system and used primarily in connection with

24 such system, and (B) any collection or pretreatment
14

•HR 2747 IH

1 facilities not under such control that are used pri2 marily in connection with such system.

3 SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

4 There are authorized to be appropriated for purposes

5 of this Act the following sums:

6 (1) $500,000,000 for fiscal year 1996;

7 (2) $750,000,000 for fiscal year 1997; and

8 (3) $1,000,000,000 for fiscal year 1998.

Æ