II 

Calendar No. 304 

109TH CONGRESS 

1ST SESSION S. 1400 

[Report No. 109–186] 

To amend the Federal Water Pollution Control Act and the Safe Drinking 

Water Act to improve water and wastewater infrastructure in the United 

States. 

IN THE SENATE OF THE UNITED STATES 

JULY 14, 2005 

Mr. CHAFEE (for himself, Mrs. CLINTON, Mr. INHOFE, Mr. JEFFORDS and 

Mr. VOINOVICH) introduced the following bill; which was read twice and 

referred to the Committee on Environment and Public Works 

DECEMBER 8, 2005 

Reported under authority of the order of the Senate of November 18, 2005, 

by Mr. INHOFE, with an amendment 

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

A 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. 

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

•S 1400 RS 

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Water Infrastructure Financing Act’’. 

4 (b) TABLE OF CONTENTS.—The table of contents of 

5 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—WATER POLLUTION INFRASTRUCTURE 

Sec. 101. Technical assistance for rural and small treatment works. 

Sec. 102. Projects eligible for assistance. 

Sec. 103. Water pollution control revolving loan funds. 

Sec. 104. Affordability. 

Sec. 105. Transferability of funds. 

Sec. 106. Costs of administering water pollution control revolving loan funds. 

Sec. 107. Water pollution control revolving loan funds. 

Sec. 108. Noncompliance. 

Sec. 109. Authorization of appropriations. 

Sec. 110. Critical water infrastructure projects. 

TITLE II—SAFE DRINKING WATER INFRASTRUCTURE 

Sec. 201. Preconstruction work. 

Sec. 202. Affordability. 

Sec. 203. Safe drinking water revolving loan funds. 

Sec. 204. Other authorized activities. 

Sec. 205. Priority system requirements. 

Sec. 206. Authorization of appropriations. 

Sec. 207. Critical drinking water infrastructure projects. 

Sec. 208. Small system revolving loan funds. 

Sec. 209. Study on lead contamination in drinking water. 

Sec. 210. District of Columbia lead service line replacement. 

TITLE III—MISCELLANEOUS 

Sec. 301. Definitions. 

Sec. 302. Demonstration grant program for water quality enhancement and 

management. 

Sec. 303. Agricultural pollution control technology grant program. 

Sec. 304. State revolving fund review process. 

Sec. 305. Cost of service study. 

Sec. 306. Water resources study. 
3 

•S 1400 RS 

1 TITLE I—WATER POLLUTION 

2 INFRASTRUCTURE 

3 SEC. 101. TECHNICAL ASSISTANCE FOR RURAL AND SMALL 

4 TREATMENT WORKS. 

5 (a) IN GENERAL.—Title II of the Federal Water Pol6 lution Control Act (33 U.S.C. 1281 et seq.) is amended 

7 by adding at the end the following: 

8 ‘‘SEC. 222. TECHNICAL ASSISTANCE FOR RURAL AND SMALL 

9 TREATMENT WORKS. 

10 ‘‘(a) DEFINITION OF QUALIFIED NONPROFIT TECH11 NICAL ASSISTANCE PROVIDER.—In this section, the term 

12 ‘qualified nonprofit technical assistance provider’ means a 

13 qualified nonprofit technical assistance provider of water 

14 and wastewater services to small rural communities that 

15 provide technical assistance to treatment works (including 

16 circuit rider programs and training and preliminary engi17 neering evaluations) that— 

18 ‘‘(1) serve not more than 10,000 users; and 

19 ‘‘(2) may include a State agency. 

20 ‘‘(b) GRANT PROGRAM.— 

21 ‘‘(1) IN GENERAL.—The Administrator may 

22 make grants to qualified nonprofit technical assist23 ance providers that are qualified to provide assist24 ance on a broad range of wastewater and 

25 stormwater approaches— 
4 

•S 1400 RS 

1 ‘‘(A) to assist small treatment works to 

2 plan, develop, and obtain financing for eligible 

3 projects described in section 603(c); 

4 ‘‘(B) to capitalize revolving loan funds to 

5 provide loans, in consultation with the State in 

6 which the assistance is provided, to rural and 

7 small municipalities for predevelopment costs 

8 (including costs for planning, design, associated 

9 preconstruction, and necessary activities for 

10 siting the facility and related elements) associ11 ated with wastewater infrastructure projects or 

12 short-term costs incurred for equipment re13 placement that is not part of regular operation 

14 and maintenance activities for existing waste15 water systems, if— 

16 ‘‘(i) any loan from the fund is made 

17 at or below the market interest rate, for a 

18 term not to exceed 10 years; 

19 ‘‘(ii) the amount of any single loan 

20 does not exceed $100,000; and 

21 ‘‘(iii) all loan repayments are credited 

22 to the fund; 

23 ‘‘(C) to provide technical assistance and 

24 training for rural and small publicly owned 

25 treatment works and decentralized wastewater 
5 

•S 1400 RS 

1 treatment systems to enable those treatment 

2 works and systems to protect water quality and 

3 achieve and maintain compliance with this Act; 

4 and 

5 ‘‘(D) to disseminate information to rural 

6 and small municipalities with respect to plan7 ning, design, construction, and operation of 

8 publicly owned treatment works and decentral9 ized wastewater treatment systems. 

10 ‘‘(2) DISTRIBUTION OF GRANT.—In carrying 

11 out this subsection, the Administrator shall ensure, 

12 to the maximum extent practicable, that technical 

13 assistance provided using funds from a grant under 

14 paragraph (1) is made available in each State. 

15 ‘‘(3) CONSULTATION.—As a condition of receiv16 ing a grant under this subsection, a qualified non17 profit technical assistance provider shall consult with 

18 each State in which grant funds are to be expended 

19 or otherwise made available before the grant funds 

20 are expended or made available in the State. 

21 ‘‘(4) ANNUAL REPORT.—For each fiscal year, a 

22 qualified nonprofit technical assistance provider that 

23 receives a grant under this subsection shall submit 

24 to the Administrator a report that— 
6 

•S 1400 RS 

1 ‘‘(A) describes the activities of the quali2 fied nonprofit technical assistance provider 

3 using grant funds received under this sub4 section for the fiscal year; and 

5 ‘‘(B) specifies— 

6 ‘‘(i) the number of communities 

7 served; 

8 ‘‘(ii) the sizes of those communities; 

9 and 

10 ‘‘(iii) the type of financing provided 

11 by the qualified nonprofit technical assist12 ance provider. 

13 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 

14 is authorized to be appropriated to carry out this section 

15 $25,000,000 for each of fiscal years 2006 through 2010.’’. 

16 (b) GUIDANCE FOR SMALL SYSTEMS.—Section 602 

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

18 1382) is amended by adding at the end the following: 

19 ‘‘(c) GUIDANCE FOR SMALL SYSTEMS.— 

20 ‘‘(1) DEFINITION OF SMALL SYSTEM.—In this 

21 subsection, the term ‘small system’ means a sys22 tem— 

23 ‘‘(A) for which a municipality or inter24 municipal, interstate, or State agency seeks as25 sistance under this title; and 
7 

•S 1400 RS 

1 ‘‘(B) that serves a population of 10,000 or 

2 fewer households. 

3 ‘‘(2) SIMPLIFIED PROCEDURES.—Not later than 

4 1 year after the date of enactment of this sub5 section, the Administrator shall assist the States in 

6 establishing simplified procedures for small systems 

7 to obtain assistance under this title. 

8 ‘‘(3) PUBLICATION OF MANUAL.—Not later 

9 than 1 year after the date of enactment of this sub10 section, after providing notice and opportunity for 

11 public comment, the Administrator shall publish— 

12 ‘‘(A) a manual to assist small systems in 

13 obtaining assistance under this title; and 

14 ‘‘(B) in the Federal Register, notice of the 

15 availability of the manual.’’. 

16 SEC. 102. PROJECTS ELIGIBLE FOR ASSISTANCE. 

17 Section 603 of the Federal Water Pollution Control 

18 Act (33 U.S.C. 1383) is amended by striking subsection 

19 (c) and inserting the following: 

20 ‘‘(c) PROJECTS ELIGIBLE FOR ASSISTANCE.—Funds 

21 in each State water pollution control revolving fund shall 

22 be used only for— 

23 ‘‘(1) providing financial assistance to any mu24 nicipality or an intermunicipal, interstate, or State 

25 agency that principally treats municipal wastewater 
8 

•S 1400 RS 

1 or domestic sewage for construction (including plan2 ning, design, associated preconstruction, and activi3 ties relating to the siting of a facility) of a treatment 

4 works (as defined in section 212); 

5 ‘‘(2) implementation of a management program 

6 established under section 319; 

7 ‘‘(3) development and implementation of a con8 servation and management plan under section 320; 

9 ‘‘(4) providing financial assistance to a munici10 pality or an intermunicipal, interstate, or State 

11 agency for projects to increase the security of waste12 water treatment works (excluding any expenditure 

13 for operations or maintenance); 

14 ‘‘(5) providing financial assistance to a munici15 pality or an intermunicipal, interstate, or State 

16 agency for measures to control municipal 

17 stormwater, the primary purpose of which is the 

18 preservation, protection, or enhancement of water 

19 quality; 

20 ‘‘(6) water conservation projects, the primary 

21 purpose of which is the protection, preservation, and 

22 enhancement of water quality; or 

23 ‘‘(7) reuse, reclamation, and recycling projects, 

24 the primary purpose of which is the protection, pres25 ervation, and enhancement of water quality.’’. 
9 

•S 1400 RS 

1 SEC. 103. WATER POLLUTION CONTROL REVOLVING LOAN 

2 FUNDS. 

3 Section 603(d) of the Federal Water Pollution Con4 trol Act (33 U.S.C. 1383(d)) is amended— 

5 (1) in paragraph (6), by striking ‘‘and’’ at the 

6 end; 

7 (2) in paragraph (7), by striking the period at 

8 the end and inserting ‘‘; and’’; and 

9 (3) by adding at the end the following: 

10 ‘‘(8) to carry out a project under paragraph (2) 

11 or (3) of section 601(a), which may be— 

12 ‘‘(A) operated by a municipal, intermunic13 ipal, or interstate entity, State, public or pri14 vate utility, corporation, partnership, associa15 tion, or nonprofit agency; and 

16 ‘‘(B) used to make loans that will be fully 

17 amortized not later than 30 years after the date 

18 of the completion of the project.’’. 

19 SEC. 104. AFFORDABILITY. 

20 (a) IN GENERAL.—Section 603 of the Federal Water 

21 Pollution Control Act (33 U.S.C. 1383) is amended— 

22 (1) by redesignating subsections (e) through (h) 

23 as subsections (f) through (i), respectively; and 

24 (2) by inserting after subsection (d) the fol25 lowing: 
10 

•S 1400 RS 

1 ‘‘(e) TYPES OF ASSISTANCE FOR DISADVANTAGED

2 COMMUNITIES.— 

3 ‘‘(1) DEFINITION OF DISADVANTAGED COMMU4 NITY.—In this subsection, the term ‘disadvantaged 

5 community’ means the service area, or portion of a 

6 service area, of a treatment works that meets afford7 ability criteria established after public review and 

8 comment by the State in which the treatment works 

9 is located. 

10 ‘‘(2) LOAN SUBSIDY.—Notwithstanding any 

11 other provision of this section, in a case in which the 

12 State makes a loan from the water pollution control 

13 revolving loan fund in accordance with subsection (c) 

14 to a disadvantaged community or a community that 

15 the State expects to become a disadvantaged com16 munity as the result of a proposed project, the State 

17 may provide additional subsidization, including— 

18 ‘‘(A) the forgiveness of the principal of the 

19 loan; and 

20 ‘‘(B) an interest rate on the loan of zero 

21 percent. 

22 ‘‘(3) TOTAL AMOUNT OF SUBSIDIES.—For each 

23 fiscal year, the total amount of loan subsidies made 

24 by the State pursuant to this subsection may not ex-
11 

•S 1400 RS 

1 ceed 30 percent of the amount of the capitalization 

2 grant received by the State for the fiscal year. 

3 ‘‘(4) EXTENDED TERM.—A State may provide 

4 an extended term for a loan if the extended term— 

5 ‘‘(A) terminates not later than the date 

6 that is 30 years after the date of completion of 

7 the project; and 

8 ‘‘(B) does not exceed the expected design 

9 life of the project. 

10 ‘‘(5) INFORMATION.—The Administrator may 

11 publish information to assist States in establishing 

12 affordability criteria described in paragraph (1).’’. 

13 (b) CONFORMING AMENDMENT.—Section 221(d) of 

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

15 1301(d)) is amended in the second sentence by striking 

16 ‘‘603(h)’’ and inserting ‘‘603(i)’’. 

17 SEC. 105. TRANSFERABILITY OF FUNDS. 

18 Section 603 of the Federal Water Pollution Control 

19 Act (33 U.S.C. 1383) (as amended by section 104(a)(1)) 

20 is amended by adding at the end the following: 

21 ‘‘(j) TRANSFER OF FUNDS.— 

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

23 may— 
12 

•S 1400 RS 

1 ‘‘(A)(i) reserve not more than 33 percent 

2 of a capitalization grant made under this title; 

3 and 

4 ‘‘(ii) add the funds reserved to any funds 

5 provided to the State under section 1452 of the 

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

7 and 

8 ‘‘(B)(i) reserve for any year an amount 

9 that does not exceed the amount that may be 

10 reserved under subparagraph (A) for that year 

11 from capitalization grants made under section 

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

13 ‘‘(ii) add the reserved funds to any funds 

14 provided to the State under this title. 

15 ‘‘(2) STATE MATCH.—Funds reserved under 

16 this subsection shall not be considered to be a State 

17 contribution for a capitalization grant required 

18 under this title or section 1452(b) of the Safe 

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

20 SEC. 106. COSTS OF ADMINISTERING WATER POLLUTION 

21 CONTROL REVOLVING LOAN FUNDS. 

22 Section 603(d)(7) of the Federal Water Pollution 

23 Control Act (33 U.S.C. 1383(d)(7)) is amended by strik24 ing ‘‘4 percent’’ and inserting ‘‘6 percent’’. 
13 

•S 1400 RS 

1 SEC. 107. WATER POLLUTION CONTROL REVOLVING LOAN 

2 FUNDS. 

3 Section 603 of the Federal Water Pollution Control 

4 Act (33 U.S.C. 1383) is amended by striking subsection 

5 (h) (as redesignated by section 104) and inserting the fol6 lowing: 

7 ‘‘(h) PRIORITY SYSTEM REQUIREMENT.— 

8 ‘‘(1) DEFINITIONS.—In this subsection: 

9 ‘‘(A) RESTRUCTURING.—The term ‘re10 structuring’ means— 

11 ‘‘(i) the consolidation of management 

12 functions or ownership with another facil13 ity; or 

14 ‘‘(ii) the formation of cooperative 

15 partnerships. 

16 ‘‘(B) TRADITIONAL WASTEWATER AP17 PROACH.—The term ‘traditional wastewater ap18 proach’ means a managed system used to col19 lect and treat wastewater from an entire service 

20 area consisting of— 

21 ‘‘(i) collection sewers; 

22 ‘‘(ii) a centralized treatment plant 

23 using biological, physical, or chemical 

24 treatment processes; and 

25 ‘‘(iii) a direct point source discharge 

26 to surface water. 
14 

•S 1400 RS 

1 ‘‘(2) PRIORITY SYSTEM.—In providing financial 

2 assistance from the water pollution control revolving 

3 fund of the State, the State shall— 

4 ‘‘(A) give greater weight to an application 

5 for assistance by a treatment works if the appli6 cation includes such other information as the 

7 State determines to be appropriate and— 

8 ‘‘(i) an inventory of assets, including 

9 a description of the condition of those as10 sets; 

11 ‘‘(ii) a schedule for replacement of the 

12 assets; 

13 ‘‘(iii) a financing plan indicating 

14 sources of revenue from ratepayers, grants, 

15 bonds, other loans, and other sources; 

16 ‘‘(iv) a review of options for restruc17 turing the treatment works; 

18 ‘‘(v) a review of options for ap19 proaches other than a traditional waste20 water approach that may include actions 

21 or projects that treat or minimize sewage 

22 or urban stormwater discharges using— 

23 ‘‘(I) decentralized or distributed 

24 stormwater controls; 
15 

•S 1400 RS 

1 ‘‘(II) decentralized wastewater 

2 treatment; 

3 ‘‘(III) low impact development 

4 technologies; 

5 ‘‘(IV) stream buffers; 

6 ‘‘(V) wetland restoration; or 

7 ‘‘(VI) actions to minimize the 

8 quantity of and direct connections to 

9 impervious surfaces; 

10 ‘‘(vi) demonstration of consistency 

11 with State, regional, and municipal water12 shed plans; 

13 ‘‘(vii) a review of options for urban 

14 waterfront development or brownfields re15 vitalization to be completed in conjunction 

16 with the project; or 

17 ‘‘(viii) provides the applicant the flexi18 bility through alternative means to carry 

19 out responsibilities under Federal regula20 tions, that may include watershed permit21 ting and other innovative management ap22 proaches, while achieving results that— 

23 ‘‘(I) the State, with the delegated 

24 authority under section 402(a)(5), de25 termines meet permit requirements 
16 

•S 1400 RS 

1 for permits that have been issued in 

2 accordance with the national pollution 

3 discharge elimination system under 

4 section 402; or 

5 ‘‘(II) the Administrator deter6 mines are measurably superior when 

7 compared to regulatory standards; 

8 ‘‘(B) take into consideration appropriate 

9 chemical, physical, and biological data that the 

10 State considers reasonably available and of suf11 ficient quality; 

12 ‘‘(C) provide for public notice and oppor13 tunity to comment on the establishment of the 

14 system and the summary under subparagraph 

15 (D); 

16 ‘‘(D) publish not less than biennially in 

17 summary form a description of projects in the 

18 State that are eligible for assistance under this 

19 title that indicates— 

20 ‘‘(i) the priority assigned to each 

21 project under the priority system of the 

22 State; and 

23 ‘‘(ii) the funding schedule for each 

24 project, to that extent the information is 

25 available; and 
17 

•S 1400 RS 

1 ‘‘(E) ensure that projects undertaken with 

2 assistance under this title are designed to 

3 achieve, as determined by the State, the opti4 mum water quality management, consistent 

5 with the public health and water quality goals 

6 and requirements of this title. 

7 ‘‘(3) SAVINGS CLAUSE.—Nothing in paragraph 

8 (2)(A)(viii) affects the authority of the Adminis9 trator under section 402(a)(5).’’. 

10 SEC. 108. NONCOMPLIANCE. 

11 Section 603 of the Federal Water Pollution Control 

12 Act (33 U.S.C. 1383) (as amended by section 105) is 

13 amended by adding at the end the following: 

14 ‘‘(k) NONCOMPLIANCE.— 

15 ‘‘(1) IN GENERAL.—Except as provided in para16 graph (2), no assistance (other than assistance that 

17 is to be used by a treatment works solely for plan18 ning, design, or security purposes) shall be provided 

19 under this title to a treatment works that has been 

20 in significant noncompliance with any requirement 

21 of this Act for any of the 4 quarters in the previous 

22 8 quarters, unless the treatment works is in compli23 ance with, or has entered into, an enforceable ad24 ministrative order to effect compliance with the re25 quirement. 
18 

•S 1400 RS 

1 ‘‘(2) EXCEPTION.—A treatment works that is 

2 determined under paragraph (1) to be in significant 

3 noncompliance with a requirement described in that 

4 paragraph may receive assistance under this title if 

5 the Administrator and the State providing the as6 sistance determine that— 

7 ‘‘(A) the entity conducting the enforcement 

8 action on which the determination of significant 

9 noncompliance is based has determined that the 

10 use of assistance would enable the treatment 

11 works to take corrective action toward resolving 

12 the violations; or 

13 ‘‘(B) the entity conducting the enforcement 

14 action on which the determination of significant 

15 noncompliance is based has determined that the 

16 assistance would be used on a portion of the 

17 treatment works that is not directly related to 

18 the cause of finding significant noncompli19 ance.’’. 

20 SEC. 109. AUTHORIZATION OF APPROPRIATIONS. 

21 The Federal Water Pollution Control Act is amended 

22 by striking section 607 (33 U.S.C. 1387) and inserting 

23 the following: 
19 

•S 1400 RS 

1 ‘‘SEC. 607. AUTHORIZATION OF APPROPRIATIONS. 

2 ‘‘(a) IN GENERAL.—There are authorized to be ap3 propriated to carry out this title— 

4 ‘‘(1) $3,200,000,000 for each of fiscal years 

5 2006 and 2007; 

6 ‘‘(2) $3,600,000,000 for fiscal year 2008; 

7 ‘‘(3) $4,000,000,000 for fiscal year 2009; and 

8 ‘‘(4) $6,000,000,000 for fiscal year 2010. 

9 ‘‘(b) AVAILABILITY.—Amounts made available under 

10 this section shall remain available until expended. 

11 ‘‘(c) RESERVATION FOR NEEDS SURVEYS.—Of the 

12 amount made available under subsection (a) to carry out 

13 this title for a fiscal year, the Administrator may reserve 

14 not more than $1,000,000 per year to pay the costs of 

15 conducting needs surveys under section 516(2).’’. 

16 SEC. 110. CRITICAL WATER INFRASTRUCTURE PROJECTS. 

17 (a) ESTABLISHMENT.—Not later than 180 days after 

18 the date of enactment of this Act, the Administrator shall 

19 establish a program under which grants are provided to 

20 eligible entities for use in carrying out projects and activi21 ties the primary purpose of which is watershed restoration 

22 through the protection or improvement of water quality. 

23 (b) PROJECT SELECTION.— 

24 (1) IN GENERAL.—The Administrator may pro25 vide funds under this section to an eligible entity to 
20 

•S 1400 RS 

1 carry out an eligible project described in paragraph 

2 (2). 

3 (2) EQUITABLE DISTRIBUTION.—The Adminis4 trator shall ensure an equitable distribution of 

5 projects under this section, taking into account cost 

6 and number of requests for each category listed in 

7 paragraph (3). 

8 (3) ELIGIBLE PROJECTS.—A project that is eli9 gible to be carried out using funds provided under 

10 this section may include projects that— 

11 (A) are listed on the priority list of a State 

12 under section 216 of the Federal Water Pollu13 tion Control Act (33 U.S.C. 1296); 

14 (B) mitigate wet weather flows, including 

15 combined sewer overflows, sanitary sewer over16 flows, and stormwater discharges; 

17 (C) upgrade publicly owned treatment 

18 works with a permitted design capacity to treat 

19 an annual average of at least 500,000 gallons 

20 of wastewater per day, the upgrade of which 

21 would produce the greatest nutrient load reduc22 tions at points of discharge, or result in the 

23 greatest environmental benefits, with nutrient 

24 removal technologies that are designed to re25 duce total nitrogen in discharged wastewater to 
21 

•S 1400 RS 

1 an average annual concentration of 3 milli2 grams per liter; 

3 (D) implement locally based watershed 

4 protection plans created by local nonprofit orga5 nizations that— 

6 (i) provide a coordinating framework 

7 for management that focuses public and 

8 private efforts to address the highest pri9 ority water-related problems within a geo10 graphic area, considering both ground and 

11 surface water flow; and 

12 (ii) includes representatives from both 

13 point source and nonpoint source contribu14 tors; 

15 (E) are contained in a State plan devel16 oped in accordance with section 319 or 320 of 

17 the Federal Water Pollution Control Act (33 

18 U.S.C. 1329, 1330); or 

19 (F) include means to develop alternative 

20 water supplies. 

21 (c) LOCAL PARTICIPATION.—In prioritizing projects 

22 for implementation under this section, the Administrator 

23 shall consult with, and consider the priorities of— 

24 (1) affected State and local governments; and 
22 

•S 1400 RS 

1 (2) public and private entities that are active in 

2 watershed planning and restoration. 

3 (d) COST SHARING.—Before carrying out any project 

4 under this section, the Administrator shall enter into a 

5 binding agreement with 1 or more non-Federal interests 

6 that shall require the non-Federal interests— 

7 (1) to pay 45 percent of the total costs of the 

8 project, which may include services, materials, sup9 plies, or other in-kind contributions; 

10 (2) to provide any land, easements, rights-of11 way, and relocations necessary to carry out the 

12 project; and 

13 (3) to pay 100 percent of any operation, main14 tenance, repair, replacement, and rehabilitation costs 

15 associated with the project. 

16 (e) WAIVER.—The Administrator may waive the re17 quirement to pay the non-Federal share of the cost of car18 rying out an eligible activity using funds from a grant pro19 vided under this section if the Administrator determines 

20 that an eligible entity is unable to pay, or would experience 

21 significant financial hardship if required to pay, the non22 Federal share. 

23 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

24 authorized to be appropriated to carry out this section 

25 $300,000,000 for each of fiscal years 2006 through 2010. 
23 

•S 1400 RS 

1 TITLE II—SAFE DRINKING 

2 WATER INFRASTRUCTURE 

3 SEC. 201. PRECONSTRUCTION WORK. 

4 Section 1452(a)(2) of the Safe Drinking Water Act 

5 (42 U.S.C. 300j–12(a)(2)) is amended in the second sen6 tence— 

7 (1) by striking ‘‘(not’’ and inserting ‘‘(including 

8 expenditures for planning, design, and associated 

9 preconstruction and for recovery for siting of the fa10 cility and related elements but not’’; and 

11 (2) by inserting before the period at the end the 

12 following: ‘‘or to replace or rehabilitate aging collec13 tion, treatment, storage (including reservoirs), or 

14 distribution facilities of public water systems or pro15 vide for capital projects to upgrade the security of 

16 public water systems’’. 

17 SEC. 202. AFFORDABILITY. 

18 Section 1452(d)(3) of the Safe Drinking Water Act 

19 (42 U.S.C. 300j–12(d)(3)) is amended in the first sen20 tence by inserting ‘‘, or portion of a service area,’’ after 

21 ‘‘service area’’. 

22 SEC. 203. SAFE DRINKING WATER REVOLVING LOAN 

23 FUNDS. 

24 Section 1452(g) of the Safe Drinking Water Act (42 

25 U.S.C. 300j–12(g)) is amended— 
24 

•S 1400 RS 

1 (1) paragraph (2)— 

2 (A) in the first sentence, by striking ‘‘4’’ 

3 and inserting ‘‘6’’; and 

4 (B) by striking ‘‘1419,’’ and all that fol5 lows through ‘‘1933.’’ and inserting ‘‘1419.’’; 

6 and 

7 (2) by adding at the end the following: 

8 ‘‘(5) TRANSFER OF FUNDS.— 

9 ‘‘(A) IN GENERAL.—The Governor of a 

10 State may— 

11 ‘‘(i)(I) reserve not more than 33 per12 cent of a capitalization grant made under 

13 this section; and 

14 ‘‘(II) add the funds reserved to any 

15 funds provided to the State under section 

16 601 of the Federal Water Pollution Con17 trol Act (33 U.S.C. 1381); and 

18 ‘‘(ii)(I) reserve for any fiscal year an 

19 amount that does not exceed the amount 

20 that may be reserved under clause (i)(I) 

21 for that year from capitalization grants 

22 made under section 601 of that Act (33 

23 U.S.C. 1381); and 
25 

•S 1400 RS 

1 ‘‘(II) add the reserved funds to any 

2 funds provided to the State under this sec3 tion. 

4 ‘‘(B) STATE MATCH.—Funds reserved 

5 under this paragraph shall not be considered to 

6 be a State match of a capitalization grant re7 quired under this section or section 602(b) of 

8 the Federal Water Pollution Control Act (33 

9 U.S.C. 1382(b)).’’. 

10 SEC. 204. OTHER AUTHORIZED ACTIVITIES. 

11 Section 1452(k)(2)(D) of the Safe Drinking Water 

12 Act (42 U.S.C. 300j–12(k)(2)(D)) is amended by inserting 

13 before the period at the end the following: ‘‘(including im14 plementation of source water protection plans)’’. 

15 SEC. 205. PRIORITY SYSTEM REQUIREMENTS. 

16 Section 1452(b)(3) of the Safe Drinking Water Act 

17 (42 U.S.C. 300j–12(b)(3)) is amended— 

18 (1) by redesignating subparagraph (B) as sub19 paragraph (D); 

20 (2) by striking subparagraph (A) and inserting 

21 the following: 

22 ‘‘(A) DEFINITION OF RESTRUCTURING.— 

23 In this paragraph, the term ‘restructuring’ 

24 means changes in operations (including owner-
26 

•S 1400 RS 

1 ship, accounting, rates, maintenance, consolida2 tion, and alternative water supply). 

3 ‘‘(B) PRIORITY SYSTEM.—An intended use 

4 plan shall provide, to the maximum extent prac5 ticable, that priority for the use of funds be 

6 given to projects that— 

7 ‘‘(i) address the most serious risk to 

8 human health; 

9 ‘‘(ii) are necessary to ensure compli10 ance with this title (including requirements 

11 for filtration); and 

12 ‘‘(iii) assist systems most in need on 

13 a per-household basis according to State 

14 affordability criteria. 

15 ‘‘(C) WEIGHT GIVEN TO APPLICATIONS.— 

16 After determining project priorities under sub17 paragraph (B), an intended use plan shall fur18 ther provide that the State shall give greater 

19 weight to an application for assistance by a 

20 community water system if the application in21 cludes such other information as the State de22 termines to be necessary and— 

23 ‘‘(i) an inventory of assets, including 

24 a description of the condition of the assets; 
27 

•S 1400 RS 

1 ‘‘(ii) a schedule for replacement of as2 sets; 

3 ‘‘(iii) a financing plan indicating 

4 sources of revenue from ratepayers, grants, 

5 bonds, other loans, and other sources; 

6 ‘‘(iv) a review of options for restruc7 turing the public water system; 

8 ‘‘(v) demonstration of consistency 

9 with State, regional, and municipal water10 shed plans; or 

11 ‘‘(vi) a review of options for urban 

12 waterfront development or brownfields re13 vitalization to be completed in conjunction 

14 with the project;’’; and 

15 (3) in subparagraph (D) (as redesignated by 

16 paragraph (1)), by striking ‘‘periodically’’ and in17 serting ‘‘at least biennially’’. 

18 SEC. 206. AUTHORIZATION OF APPROPRIATIONS. 

19 Section 1452 of the Safe Drinking Water Act (42 

20 U.S.C. 300j–12) is amended by striking subsection (m) 

21 and inserting the following: 

22 ‘‘(m) AUTHORIZATION OF APPROPRIATIONS.— 

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

24 appropriated to carry out this section— 

25 ‘‘(A) $1,500,000,000 for fiscal year 2006; 
28 

•S 1400 RS 

1 ‘‘(B) $2,000,000,000 for each of fiscal 

2 years 2007 and 2008; 

3 ‘‘(C) $3,500,000,000 for fiscal year 2009; 

4 and 

5 ‘‘(D) $6,000,000,000 for fiscal year 2010. 

6 ‘‘(2) AVAILABILITY.—Amounts made available 

7 under this subsection shall remain available until ex8 pended. 

9 ‘‘(3) RESERVATION FOR NEEDS SURVEYS.—Of 

10 the amount made available under paragraph (1) to 

11 carry out this section for a fiscal year, the Adminis12 trator may reserve not more than $1,000,000 per 

13 year to pay the costs of conducting needs surveys 

14 under subsection (h).’’. 

15 SEC. 207. CRITICAL DRINKING WATER INFRASTRUCTURE 

16 PROJECTS. 

17 (a) ESTABLISHMENT.—Not later than 180 days after 

18 the date of enactment of this Act, the Administrator of 

19 the Environmental Protection Agency shall establish a 

20 program under which grants are provided to eligible enti21 ties for use in carrying out projects and activities the pri22 mary purpose of which is to assist community water sys23 tems in meeting the requirements of the Safe Drinking 

24 Water Act (42 U.S.C. 300f et seq.). 
29 

•S 1400 RS 

1 (b) PROJECT SELECTION.—A project that is eligible 

2 to be carried out using funds provided under this section 

3 may include projects that— 

4 (1) develop alternative water sources; 

5 (2) provide assistance to small systems; or 

6 (3) assist a community water system— 

7 (A) to comply with a national primary 

8 drinking water regulation; or 

9 (B) to mitigate groundwater contamina10 tion. 

11 (c) ELIGIBLE ENTITIES.—An entity eligible to re12 ceive a grant under this section is— 

13 (1) a community water system as defined in 

14 section 1401 of the Safe Drinking Water Act (42 

15 U.S.C. 300f); or 

16 (2) a system that is located in an area governed 

17 by an Indian Tribe, as defined in section 1401 of the 

18 Safe Drinking Water Act (42 U.S.C. 300f); 

19 (d) PRIORITY.—In prioritizing projects for implemen20 tation under this section, the Administrator shall give pri21 ority to community water systems that— 

22 (1) serve a community that, under affordability 

23 criteria established by the State under section 

24 1452(d)(3) of the Safe Drinking Water Act (42 

25 U.S.C. 300j-12), is determined by the State to be— 
30 

•S 1400 RS 

1 (A) a disadvantaged community; or 

2 (B) a community that may become a dis3 advantaged community as a result of carrying 

4 out an eligible activity; or 

5 (2) serve a community with a population of less 

6 than 10,000 households. 

7 (e) LOCAL PARTICIPATION.—In prioritizing projects 

8 for implementation under this section, the Administrator 

9 shall consult with, and consider the priorities of, affected 

10 States, Tribes, and local governments. 

11 (f) COST SHARING.—Before carrying out any project 

12 under this section, the Administrator shall enter into a 

13 binding agreement with 1 or more non-Federal interests 

14 that shall require the non-Federal interests— 

15 (1) to pay 45 percent of the total costs of the 

16 project, which may include services, materials, sup17 plies, or other in-kind contributions; 

18 (2) to provide any land, easements, rights-of19 way, and relocations necessary to carry out the 

20 project; and 

21 (3) to pay 100 percent of any operation, main22 tenance, repair, replacement, and rehabilitation costs 

23 associated with the project. 

24 (g) WAIVER.—The Administrator may waive the re25 quirement to pay the non-Federal share of the cost of car-
31 

•S 1400 RS 

1 rying out an eligible activity using funds from a grant pro2 vided under this section if the Administrator determines 

3 that an eligible entity is unable to pay, or would experience 

4 significant financial hardship if required to pay, the non5 Federal share. 

6 (h) AUTHORIZATION OF APPROPRIATIONS.—There is 

7 authorized to be appropriated to carry out this section 

8 $300,000,000 for each of fiscal years 2006 through 2010. 

9 SEC. 208. SMALL SYSTEM REVOLVING LOAN FUNDS. 

10 Section 1442(e) of the Safe Drinking Water Act (42 

11 U.S.C. 300j–1(e)) is amended— 

12 (1) in the first sentence, by striking ‘‘The Ad13 ministrator may provide’’ and inserting the fol14 lowing: 

15 ‘‘(1) IN GENERAL.—The Administrator may 

16 provide’’; and 

17 (2) by adding at the end the following: 

18 ‘‘(2) SMALL SYSTEM REVOLVING LOAN FUND.— 

19 ‘‘(A) IN GENERAL.—In addition to 

20 amounts provided under this section, the Ad21 ministrator may provide grants to qualified pri22 vate, nonprofit entities to capitalize revolving 

23 funds to provide financing to eligible entities 

24 described in subparagraph (B) for— 
32 

•S 1400 RS 

1 ‘‘(i) predevelopment costs (including 

2 costs for planning, design, associated 

3 preconstruction, and necessary activities 

4 for siting the facility and related elements) 

5 associated with proposed water projects or 

6 with existing water systems; and 

7 ‘‘(ii) short-term costs incurred for re8 placement equipment, small-scale extension 

9 services, or other small capital projects 

10 that are not part of the regular operations 

11 and maintenance activities of existing 

12 water systems. 

13 ‘‘(B) ELIGIBLE ENTITIES.—To be eligible 

14 for assistance under this paragraph, an entity 

15 shall be a small water system (as described in 

16 section 1412(b)(4)(E)(ii)). 

17 ‘‘(C) MAXIMUM AMOUNT OF LOANS.—The 

18 amount of financing made to an eligible entity 

19 under this paragraph shall not exceed— 

20 ‘‘(i) $100,000 for costs described in 

21 subparagraph (A)(i); and 

22 ‘‘(ii) $100,000 for costs described in 

23 subparagraph (A)(ii). 
33 

•S 1400 RS 

1 ‘‘(D) TERM.—The term of a loan made to 

2 an eligible entity under this paragraph shall not 

3 exceed 10 years. 

4 ‘‘(E) ANNUAL REPORT.—For each fiscal 

5 year, a qualified private, nonprofit entity that 

6 receives a grant under subparagraph (A) shall 

7 submit to the Administrator a report that— 

8 ‘‘(i) describes the activities of the 

9 qualified private, nonprofit entity under 

10 this paragraph for the fiscal year; and 

11 ‘‘(ii) specifies— 

12 ‘‘(I) the number of communities 

13 served; 

14 ‘‘(II) the sizes of those commu15 nities; and 

16 ‘‘(III) the type of financing pro17 vided by the qualified private, non18 profit entity. 

19 ‘‘(F) AUTHORIZATION OF APPROPRIA20 TIONS.—There is authorized to be appropriated 

21 to carry out this subsection $25,000,000 for 

22 each of fiscal years 2006 through 2010.’’. 
34 

•S 1400 RS 

1 SEC. 209. STUDY ON LEAD CONTAMINATION IN DRINKING 

2 WATER. 

3 (a) IN GENERAL.—As soon as practicable after the 

4 date of enactment of this Act, the Administrator of the 

5 Environmental Protection Agency shall enter into a coop6 erative agreement with the National Academy of Sciences 

7 to carry out a study to analyze existing market conditions 

8 for plumbing components, including pipes, faucets, water 

9 meters, valves, household valves, and any other plumbing 

10 components that come into contact with water commonly 

11 used for human consumption. 

12 (b) COMPONENTS.—In conducting the study under 

13 subsection (a), the National Academy of Sciences shall 

14 evaluate for each category of plumbing components de15 scribed in subsection (a)— 

16 (1) the availability of plumbing components in 

17 each category with lead content below 8 percent, in18 cluding those between 0 percent and 4 percent and 

19 those between 4 percent and 8 percent; 

20 (2) the relative market share of the plumbing 

21 components; 

22 (3) the relative cost of the plumbing compo23 nents; 

24 (4) the issues surrounding transition from cur25 rent market to plumbing components with not more 

26 than 0.2 percent lead; 
35 

•S 1400 RS 

1 (5) the feasibility of manufacturing plumbing 

2 components with lead levels below 8 percent; and 

3 (6) the use of lead alternatives in plumbing 

4 components with lead levels below 8 percent. 

5 (c) REPORT.—Not late than 1 year after the date of 

6 enactment of this Act, the National Academy of Sciences 

7 shall submit to the Committee on Environment and Public 

8 Works of the Senate and the Committee on Energy and 

9 Commerce of the House of Representatives a report de10 scribing the findings of the study under this section. 

11 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

12 authorized to be appropriated to carry out this section 

13 $500,000. 

14 SEC. 210. DISTRICT OF COLUMBIA LEAD SERVICE LINE RE15 PLACEMENT. 

16 (a) AUTHORIZATION OF APPROPRIATIONS.—There is 

17 authorized to be appropriated to carry out lead service line 

18 replacement in the District of Columbia $30,000,000 for 

19 each of fiscal years 2007 through 2011. 

20 (b) LEAD SERVICE LINE REPLACEMENT ASSISTANCE

21 FUND.— 

22 (1) IN GENERAL.—Of the funds provided under 

23 subsection (a), not more than $2,000,000 per year 

24 may be allocated for water service line replacement 

25 grants to provide assistance to low-income residents 
36 

•S 1400 RS 

1 to replace the privately-owned portion of lead service 

2 lines. 

3 (2) LIMITATION.—Individual grants shall be 

4 limited to not more than $5,000. 

5 (3) DEFINITION OF LOW INCOME.—For the 

6 purpose of this subsection, the term ‘‘low-income’’ 

7 shall be defined by the District of Columbia. 

8 TITLE III—MISCELLANEOUS 

9 SEC. 301. DEFINITIONS. 

10 In this title: 

11 (1) ADMINISTRATOR.—The term ‘‘Adminis12 trator’’ means the Administrator of the Environ13 mental Protection Agency. 

14 (2) SECRETARY.—The term ‘‘Secretary’’ means 

15 the Secretary of the Interior, acting through the Di16 rector of the United States Geological Survey. 

17 SEC. 302. DEMONSTRATION GRANT PROGRAM FOR WATER 

18 QUALITY ENHANCEMENT AND MANAGEMENT. 

19 (a) ESTABLISHMENT.— 

20 (1) IN GENERAL.—As soon as practicable after 

21 the date of enactment of this Act, the Administrator 

22 shall establish a nationwide demonstration grant 

23 program to— 
37 

•S 1400 RS 

1 (A) promote innovations in technology and 

2 alternative approaches to water quality manage3 ment or water supply; or 

4 (B) reduce costs to municipalities incurred 

5 in complying with— 

6 (i) the Federal Water Pollution Con7 trol Act (33 U.S.C. 1251 et seq.); and 

8 (ii) the Safe Drinking Water Act (42 

9 U.S.C. 300f et seq.). 

10 (2) SCOPE.—The demonstration grant program 

11 shall consist of 10 projects each year, to be carried 

12 out in municipalities selected by the Administrator 

13 under subsection (b). 

14 (b) SELECTION OF MUNICIPALITIES.— 

15 (1) APPLICATION.—A municipality that seeks 

16 to participate in the demonstration grant program 

17 shall submit to the Administrator a plan that— 

18 (A) is developed in coordination with— 

19 (i) the agency of the State having ju20 risdiction over water quality or water sup21 ply matters; and 

22 (ii) interested stakeholders; 

23 (B) describes water impacts specific to 

24 urban or rural areas; 
38 

•S 1400 RS 

1 (C) includes a strategy under which the 

2 municipality, through participation in the dem3 onstration grant program, could effectively— 

4 (i) address water quality or water 

5 supply problems; and 

6 (ii) achieve the water quality goals 

7 that— 

8 (I) could be achieved using more 

9 traditional methods; and 

10 (II) are required under— 

11 (aa) the Federal Water Pol12 lution Control Act (33 U.S.C. 

13 1251 et seq.); or 

14 (bb) the Safe Drinking 

15 Water Act (42 U.S.C. 300f et 

16 seq.); and 

17 (D) includes a schedule for achieving the 

18 water quality or water supply goals of the mu19 nicipality. 

20 (2) TYPES OF PROJECTS.—In carrying out the 

21 demonstration grant program, the Administrator 

22 shall provide grants for projects relating to water 

23 supply or water quality matters such as— 

24 (A) excessive nutrient growth; 

25 (B) urban or rural population pressure; 
39 

•S 1400 RS 

1 (C) lack of an alternative water supply; 

2 (D) difficulties in water conservation and 

3 efficiency; 

4 (E) lack of support tools and technologies 

5 to rehabilitate and replace water supplies; 

6 (F) lack of monitoring and data analysis 

7 for water distribution systems; 

8 (G) nonpoint source water pollution (in9 cluding stormwater); 

10 (H) sanitary overflows; 

11 (I) combined sewer overflows; 

12 (J) problems with naturally occurring con13 stituents of concern; 

14 (K) problems with erosion and excess sedi15 ment; 

16 (L) new approaches to water treatment, 

17 distribution, and collection systems; and 

18 (M) new methods for collecting and treat19 ing wastewater (including system design and 

20 nonstructural alternatives). 

21 (3) RESPONSIBILITIES OF ADMINISTRATOR.—In 

22 providing grants for projects under this subsection, 

23 the Administrator shall— 

24 (A) ensure, to the maximum extent prac25 ticable, that— 
40 

•S 1400 RS 

1 (i) the demonstration program in2 cludes a variety of projects with respect 

3 to— 

4 (I) geographic distribution; 

5 (II) innovative technologies used 

6 for the projects; and 

7 (III) nontraditional approaches 

8 (including low-impact development 

9 technologies) used for the projects; 

10 and 

11 (ii) each category of project described 

12 in paragraph (2) is adequately represented; 

13 (B) give higher priority to projects that— 

14 (i) address multiple problems; and 

15 (ii) are regionally applicable; 

16 (C) ensure, to the maximum extent prac17 ticable, that at least 1 community having a pop18 ulation of 10,000 or fewer individuals receives 

19 a grant for each fiscal year; and 

20 (D) ensure that, for each fiscal year, no 

21 municipality receives more than 25 percent of 

22 the total amount of funds made available for 

23 the fiscal year to provide grants under this sec24 tion. 

25 (4) COST SHARING.— 
41 

•S 1400 RS 

1 (A) IN GENERAL.—Except as provided in 

2 subparagraph (B), the non-Federal share of the 

3 total cost of a project funded by a grant under 

4 this section shall be not less than 20 percent. 

5 (B) WAIVER.—The Administrator may re6 duce or eliminate the non-Federal share of the 

7 cost of a project for reasons of affordability. 

8 (c) REPORTS.— 

9 (1) REPORTS FROM GRANT RECIPIENTS.—A re10 cipient of a grant under this section shall submit to 

11 the Administrator, on the date of completion of a 

12 project of the recipient and on each of the dates that 

13 is 1, 2, and 3 years after that date, a report that 

14 describes the effectiveness of the project. 

15 (2) REPORTS TO CONGRESS.—Not later than 2 

16 years after the date of enactment of this Act, and 

17 every 2 years thereafter, the Administrator shall 

18 submit to the Committee on Environment and Pub19 lic Works of the Senate and the Committee on 

20 Transportation and Infrastructure and the Com21 mittee on Energy and Commerce of the House of 

22 Representatives a report that describes the status 

23 and results of the demonstration program. 

24 (d) INCORPORATION OF RESULTS AND INFORMA25 TION.—To the maximum extent practicable, the Adminis-
42 

•S 1400 RS 

1 trator shall incorporate the results of, and information ob2 tained from, successful projects under this section into 

3 programs administered by the Administrator. 

4 (e) RESEARCH AND DEVELOPMENT.— 

5 (1) IN GENERAL.—As soon as practicable after 

6 the date of enactment of this Act, the Administrator 

7 shall, through a competitive process, award grants 

8 and enter into contracts and cooperative agreements 

9 with research institutions, educational institutions, 

10 and other appropriate entities (including consortia of 

11 such institutions and entities) for research and de12 velopment on the use of innovative and alternative 

13 technologies to improve water quality or drinking 

14 water supply. 

15 (2) TYPES OF PROJECTS.—In carrying out this 

16 subsection, the Administrator may select projects re17 lating to such matters as innovative or alternative 

18 technologies, approaches, practices, or methods— 

19 (A) to increase the effectiveness and effi20 ciency of public water supply systems, includ21 ing— 

22 (i) source water protection; 

23 (ii) water use reduction; 

24 (iii) water reuse; 

25 (iv) water treatment; 
43 

•S 1400 RS 

1 (v) water distribution and collection 

2 systems; and 

3 (vi) water security; 

4 (B) to encourage the use of innovative or 

5 alternative technologies or approaches relating 

6 to water supply or availability; 

7 (C) to increase the effectiveness and effi8 ciency of new and existing treatment works, in9 cluding— 

10 (i) methods of collecting, treating, dis11 persing, reusing, reclaiming, and recycling 

12 wastewater; 

13 (ii) system design; 

14 (iii) nonstructural alternatives; 

15 (iv) decentralized approaches; 

16 (v) assessment; 

17 (vi) water efficiency; and 

18 (vii) wastewater security; 

19 (D) to increase the effectiveness and effi20 ciency of municipal separate storm sewer sys21 tems; 

22 (E) to promote new water treatment tech23 nologies, including commercialization and dis24 semination strategies for adoption of innovative 
44 

•S 1400 RS 

1 or alternative low impact development tech2 nologies in the homebuilding industry; or 

3 (F) to maintain a clearinghouse of tech4 nologies developed under this subsection and 

5 subsection (a) at a research consortium or insti6 tute. 

7 (3) AUTHORIZATION OF APPROPRIATIONS.— 

8 There is authorized to be appropriated to carry out 

9 this subsection $20,000,000 for each of fiscal years 

10 2006 through 2010. 

11 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

12 authorized to be appropriated to carry out this section 

13 (other than subsection (e)) $20,000,000 for each of fiscal 

14 years 2006 through 2010. 

15 SEC. 303. AGRICULTURAL POLLUTION CONTROL TECH16 NOLOGY GRANT PROGRAM. 

17 (a) DEFINITIONS.—In this section: 

18 (1) ADMINISTRATOR.—The term ‘‘Adminis19 trator’’ means the Administrator of the Environ20 mental Protection Agency. 

21 (2) AGRICULTURAL COMMODITY.—The term 

22 ‘‘agricultural commodity’’ means— 

23 (A) agricultural, horticultural, viticultural, 

24 and dairy products; 

25 (B) livestock and the products of livestock; 
45 

•S 1400 RS 

1 (C) the products of poultry and bee rais2 ing; 

3 (D) the products of forestry; 

4 (E) other commodities raised or produced 

5 on agricultural sites, as determined to be appro6 priate by the Secretary; and 

7 (F) products processed or manufactured 

8 from products specified in subparagraphs (A) 

9 through (E), as determined by the Secretary. 

10 (3) AGRICULTURAL PROJECT.—The term ‘‘agri11 cultural project’’ means an agricultural pollution 

12 control technology project that, as determined by the 

13 Administrator— 

14 (A) is carried out at an agricultural site; 

15 and 

16 (B) achieves demonstrable reductions in 

17 air and water pollution. 

18 (4) AGRICULTURAL SITE.—The term ‘‘agricul19 tural site’’ means a farming or ranching operation of 

20 a producer. 

21 (5) PRODUCER.—The term ‘‘producer’’ means 

22 any person who is engaged in the production and 

23 sale of an agricultural commodity in the United 

24 States and who owns, or shares the ownership and 

25 risk of loss of, the agricultural commodity. 
46 

•S 1400 RS 

1 (6) REVOLVING FUND.—The term ‘‘revolving 

2 fund’’ means an agricultural pollution control tech3 nology State revolving fund established by a State 

4 using amounts provided under subsection (b)(1). 

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

6 the Secretary of Agriculture. 

7 (b) GRANTS FOR AGRICULTURAL STATE REVOLVING

8 FUNDS.— 

9 (1) IN GENERAL.—As soon as practicable after 

10 the date of enactment of this section, the Adminis11 trator shall provide to each eligible State described 

12 in paragraph (2) 1 or more capitalization grants, 

13 that cumulatively equal no more than $1,000,000 

14 per State, for use in establishing, within an agency 

15 of the State having jurisdiction over agriculture or 

16 environmental quality, an agricultural pollution con17 trol technology State revolving fund. 

18 (2) ELIGIBLE STATES.—An eligible State re19 ferred to in paragraph (1) is a State that agrees, 

20 prior to receipt of a capitalization grant under para21 graph (1)— 

22 (A) to establish, and deposit the funds 

23 from the grant in, a revolving fund; 
47 

•S 1400 RS 

1 (B) to provide, at a minimum, a State 

2 share in an amount equal to 20 percent of the 

3 capitalization grant; 

4 (C) to use amounts in the revolving fund 

5 to make loans to producers in accordance with 

6 subsection (c); and 

7 (D) to return amounts in the revolving 

8 fund if no loan applications are granted within 

9 2 years of the receipt of the initial capitaliza10 tion grant. 

11 (c) LOANS TO PRODUCERS.— 

12 (1) USE OF FUNDS.—A State that establishes 

13 a revolving fund under subsection (b)(2) shall use 

14 amounts in the revolving fund to provide loans to 

15 producers for use in designing and constructing ag16 ricultural projects. 

17 (2) MAXIMUM AMOUNT OF LOAN.—The amount 

18 of a loan made to a producer using funds from a re19 volving fund shall not exceed $250,000, in the ag20 gregate, for all agricultural projects serving an agri21 cultural site of the producer. 

22 (3) CONDITIONS ON LOANS.—A loan made to a 

23 producer using funds from a revolving fund shall— 
48 

•S 1400 RS 

1 (A) have an interest rate that is not more 

2 than the market interest rate, including an in3 terest-free loan; and 

4 (B) be repaid to the revolving fund not 

5 later than 10 years after the date on which the 

6 loan is made. 

7 (d) REQUIREMENTS FOR PRODUCERS.— 

8 (1) IN GENERAL.—A producer that seeks to re9 ceive a loan from a revolving fund shall— 

10 (A) submit to the State in which the agri11 cultural site of the producer is located an appli12 cation that— 

13 (i) contains such information as the 

14 State may require; and 

15 (ii) demonstrates, to the satisfaction 

16 of the State, that each project proposed to 

17 be carried out with funds from the loan is 

18 an agricultural project; and 

19 (B) agree to expend all funds from a loan 

20 in an expeditious and timely manner, as deter21 mined by the State. 

22 (2) MAXIMUM PERCENTAGE OF AGRICULTURAL

23 PROJECT COST.—Subject to subsection (c)(2), a pro24 ducer that receives a loan from a revolving fund may 
49 

•S 1400 RS 

1 use funds from the loan to pay up to 100 percent 

2 of the cost of carrying out an agricultural project. 

3 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated to carry out this section 

5 $50,000,000. 

6 SEC. 304. STATE REVOLVING FUND REVIEW PROCESS. 

7 As soon as practicable after the date of enactment 

8 of this Act, the Administrator shall— 

9 (1) consult with States, utilities, and other Fed10 eral agencies providing financial assistance to iden11 tify ways to expedite and improve the application 

12 and review process for the provision of assistance 

13 from— 

14 (A) the State water pollution control re15 volving funds established under title VI of the 

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

17 1381 et seq.); and 

18 (B) the State drinking water treatment re19 volving loan funds established under section 

20 1452 of the Safe Drinking Water Act (42 

21 U.S.C. 300j–12); 

22 (2) take such administrative action as is nec23 essary to expedite and improve the process as the 

24 Administrator has authority to take under existing 

25 law; 
50 

•S 1400 RS 

1 (3) collect information relating to innovative ap2 proaches taken by any State to simplify the applica3 tion process of the State, and provide the informa4 tion to each State; and 

5 (4) submit to Congress a report that, based on 

6 the information identified under paragraph (1), con7 tains recommendations for legislation to facilitate 

8 further streamlining and improvement of the proc9 ess. 

10 SEC. 305. COST OF SERVICE STUDY. 

11 (a) IN GENERAL.—Not later than 2 years after the 

12 date of enactment of this Act, the Administrator shall 

13 enter into a contract with the National Academy of 

14 Sciences for, and the National Academy of Sciences shall 

15 complete and provide to the Administrator the results of, 

16 a study of the means by which public water systems and 

17 treatment works selected by the Academy in accordance 

18 with subsection (c) meet the costs associated with oper19 ations, maintenance, capital replacement, and regulatory 

20 requirements. 

21 (b) REQUIRED ELEMENTS.— 

22 (1) AFFORDABILITY.—The study shall, at a 

23 minimum— 

24 (A) determine whether the rates at public 

25 water systems and treatment works for commu-
51 

•S 1400 RS 

1 nities included in the study were established 

2 using a full-cost pricing model; 

3 (B) if a full-cost pricing model was not 

4 used, identify any incentive rate systems that 

5 have been successful in significantly reducing— 

6 (i) per capita water demand; 

7 (ii) the volume of wastewater flows; 

8 (iii) the volume of stormwater runoff; 

9 or 

10 (iv) the quantity of pollution gen11 erated by stormwater; 

12 (C) identify a set of best industry practices 

13 that public water systems and treatment works 

14 may use in establishing a rate structure that— 

15 (i) adequately addresses the true cost 

16 of services provided to consumers by public 

17 water systems and treatment works, in18 cluding infrastructure replacement; 

19 (ii) encourages water conservation; 

20 and 

21 (iii) takes into consideration the needs 

22 of disadvantaged individuals and commu23 nities, as identified by the Administrator; 

24 (D) identify existing standards for afford25 ability; 
52 

•S 1400 RS 

1 (E) determine the manner in which those 

2 standards are determined and defined; 

3 (F) determine the manner in which afford4 ability varies with respect to communities of 

5 different sizes and in different regions; and 

6 (G) determine the extent to which afford7 ability affects the decision of a community to 

8 increase public water system and treatment 

9 works rates (including the decision relating to 

10 the percentage by which those rates should be 

11 increased). 

12 (2) DISADVANTAGED COMMUNITIES.—The 

13 study shall, at a minimum— 

14 (A) survey a cross-section of States rep15 resenting different sizes, demographics, and 

16 geographical regions; 

17 (B) describe, for each State described in 

18 subparagraph (A), the definition of ‘‘disadvan19 taged community’’ used in the State in carrying 

20 out projects and activities under the Safe 

21 Drinking Water Act (42 U.S.C. 300f et seq.); 

22 (C) review other means of identifying the 

23 meaning of the term ‘‘disadvantaged’’, as that 

24 term applies to communities; 
53 

•S 1400 RS 

1 (D) determine which factors and character2 istics are required for a community to be con3 sidered ‘‘disadvantaged’’; and 

4 (E) evaluate the degree to which factors 

5 such as a reduction in the tax base over a pe6 riod of time, a reduction in population, the loss 

7 of an industrial base, and the existence of areas 

8 of concentrated poverty are taken into account 

9 in determining whether a community is a dis10 advantaged community. 

11 (c) SELECTION OF COMMUNITIES.—The National 

12 Academy of Sciences shall select communities, the public 

13 water system and treatment works rate structures of 

14 which are to be studied under this section, that include 

15 a cross-section of communities representing various popu16 lations, income levels, demographics, and geographical re17 gions. 

18 (d) USE OF RESULTS OF STUDY.—On receipt of the 

19 results of the study, the Administrator shall— 

20 (1) submit to Congress a report that describes 

21 the results of the study; and 

22 (2) make the results available to treatment 

23 works and public water systems for use by the pub24 licly owned treatment works and public water sys25 tems, on a voluntary basis, in determining whether 
54 

•S 1400 RS 

1 1 or more new approaches may be implemented at 

2 facilities of the publicly owned treatment works and 

3 public water systems. 

4 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

5 authorized to be appropriated to carry out this section 

6 $1,000,000 for each of fiscal years 2006 and 2007. 

7 SEC. 306. WATER RESOURCES STUDY. 

8 (a) ASSESSMENT.— 

9 (1) IN GENERAL.—The Secretary shall— 

10 (A) not later than 2 years after the date 

11 of enactment of this Act, conduct an assess12 ment of water resources in the United States; 

13 and 

14 (B) update the assessment every 2 years 

15 thereafter. 

16 (2) COMPONENTS.—The assessment shall, at a 

17 minimum— 

18 (A) measure the status and trends of— 

19 (i) fresh water in rivers and res20 ervoirs; 

21 (ii) groundwater levels and volume of 

22 useable fresh water stored in aquifers; and 

23 (iii) fresh water withdrawn from 

24 streams and aquifers in the United States; 

25 and 
55 

•S 1400 RS 

1 (B) provide those measurements for— 

2 (i) watersheds defined by the 352 hy3 drologic accounting units of the United 

4 States; and 

5 (ii) major aquifers of the United 

6 States, as identified by the Secretary. 

7 (3) REPORT.—Not later than 1 year after the 

8 date of completion of the assessment and every 2 

9 years thereafter, the Secretary shall submit to Con10 gress a report— 

11 (A) describing the results of the assess12 ment; and 

13 (B) containing any recommendations of 

14 the Secretary relating to the assessment that— 

15 (i) are consistent with existing laws, 

16 treaties, decrees, and interstate compacts; 

17 and 

18 (ii) respect the primary role of States 

19 in adjudicating, administering, and regu20 lating water rights and uses. 

21 (b) WATER RESOURCE RESEARCH PRIORITIES.— 

22 (1) IN GENERAL.—The Secretary shall coordi23 nate a process among Federal agencies and appro24 priate State agencies to develop and publish, not 

25 later than 1 year after the date of enactment of this 
56 

•S 1400 RS 

1 Act, a list of water resource research priorities that 

2 focuses on— 

3 (A) water supply monitoring; 

4 (B) means of capturing excess water and 

5 flood water for conservation and use in the 

6 event of a drought; 

7 (C) strategies to conserve existing water 

8 supplies, including recommendations for repair9 ing aging infrastructure; 

10 (D) identifying incentives to ensure an 

11 adequate and dependable supply of water; 

12 (E) identifying available technologies and 

13 other methods to optimize water supply reli14 ability, availability, and quality, while safe15 guarding the environment; and 

16 (F) improving the quality of water re17 source information available to State, tribal, 

18 and local water resource managers. 

19 (2) USE OF LIST.—The list published under 

20 paragraph (1) shall be used by Federal agencies as 

21 a guide in making decisions on the allocation of 

22 water research funding. 

23 (c) INFORMATION DELIVERY SYSTEM.— 

24 (1) IN GENERAL.—The Secretary shall coordi25 nate a process to develop an effective information 
57 

•S 1400 RS 

1 delivery system to communicate information de2 scribed in paragraph (2) to— 

3 (A) decisionmakers at the Federal, re4 gional, State, tribal, and local levels; 

5 (B) the private sector; and 

6 (C) the general public. 

7 (2) TYPES OF INFORMATION.—The information 

8 referred to in paragraph (1) may include— 

9 (A) the results of the national water re10 source assessments under subsection (a); 

11 (B) a summary of the Federal water re12 search priorities developed under subsection (b); 

13 (C) near real-time data and other informa14 tion on water shortages and surpluses; 

15 (D) planning models for water shortages or 

16 surpluses (at various levels including State, 

17 river basin, and watershed levels); 

18 (E) streamlined procedures for States and 

19 localities to interact with and obtain assistance 

20 from Federal agencies that perform water re21 source functions; and 

22 (F) other water resource materials, as the 

23 Secretary determine appropriate. 

24 (d) REPORT TO CONGRESS.—Not later than 2 years 

25 after the date of enactment of this Act, and every 2 years 
58 

•S 1400 RS 

1 thereafter through fiscal year 2009, the Secretary shall 

2 submit to Congress a report on the implementation of this 

3 section. 

4 (e) SAVINGS CLAUSE.—Nothing in this section— 

5 (1) modifies, supercedes, abrogates, impairs, or 

6 otherwise affects in any way— 

7 (A) any right or jurisdiction of any State 

8 with respect to the water (including boundary 

9 water) of the State; 

10 (B) the authority of any State to allocate 

11 quantities of water within areas under the juris12 diction of the State; or 

13 (C) any right or claim to any quantity or 

14 use of water that has been adjudicated, allo15 cated, or claimed— 

16 (i) in accordance with State law; 

17 (ii) in accordance with subsections (a) 

18 through (c) of section 208 of the Depart19 ment of Justice Appropriation Act, 1953 

20 (43 U.S.C. 666); 

21 (iii) by or pursuant to an interstate 

22 compact; or 

23 (iv) by a decision of the United States 

24 Supreme Court; 
59 

•S 1400 RS 

1 (2) requires a change in the nature of use or 

2 the transfer of any right to use water or creates a 

3 limitation on the exercise of any right to use water; 

4 or 

5 (3) requires modifying the delivery, diversion, 

6 non-diversion, allocation, storage, or release from 

7 storage of any water to be delivered by contract. 

8 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

9 are authorized to be appropriated— 

10 (1) to carry out the report authorized by this 

11 section, $3,000,000, to remain available until ex12 pended; and 

13 (2) to carry out the updates authorized by sub14 section (a)(1)(B), such sums as are necessary. 

15 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

16 (a) SHORT TITLE.—This Act may be cited as the 

17 ‘‘Water Infrastructure Financing Act’’. 

18 (b) TABLE OF CONTENTS.—The table of contents of this 

19 Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—WATER POLLUTION INFRASTRUCTURE 

Sec. 101. Technical assistance for rural and small treatment works. 

Sec. 102. Projects eligible for assistance. 

Sec. 103. Water pollution control revolving loan funds. 

Sec. 104. Affordability. 

Sec. 105. Transferability of funds. 

Sec. 106. Costs of administering water pollution control revolving loan funds. 

Sec. 107. Water pollution control revolving loan funds. 

Sec. 108. Noncompliance. 

Sec. 109. Allotment of funds. 

Sec. 110. Authorization of appropriations. 
60 

•S 1400 RS 

Sec. 111. Critical water infrastructure projects. 

Sec. 112. Capitalization grant agreements. 

TITLE II—SAFE DRINKING WATER INFRASTRUCTURE 

Sec. 201. Preconstruction work. 

Sec. 202. Affordability. 

Sec. 203. Safe drinking water revolving loan funds. 

Sec. 204. Other authorized activities. 

Sec. 205. Priority system requirements. 

Sec. 206. Authorization of appropriations. 

Sec. 207. Critical drinking water infrastructure projects. 

Sec. 208. Small system revolving loan funds. 

Sec. 209. Study of plumbing components. 

Sec. 210. District of Columbia lead service line replacement. 

Sec. 211. Contaminant prevention, detection, and response. 

Sec. 212. Labor standards. 

TITLE III—MISCELLANEOUS 

Sec. 301. Definitions. 

Sec. 302. Demonstration grant program for water quality enhancement and management. 

Sec. 303. Agricultural pollution control technology grant program. 

Sec. 304. State revolving fund review process. 

Sec. 305. Cost of service study. 

Sec. 306. Water resources study. 

1 TITLE I—WATER POLLUTION 

2 INFRASTRUCTURE 

3 SEC. 101. TECHNICAL ASSISTANCE FOR RURAL AND SMALL 

4 TREATMENT WORKS. 

5 (a) IN GENERAL.—Title II of the Federal Water Pollu6 tion Control Act (33 U.S.C. 1281 et seq.) is amended by 

7 adding at the end the following: 

8 ‘‘SEC. 222. TECHNICAL ASSISTANCE FOR RURAL AND SMALL 

9 TREATMENT WORKS. 

10 ‘‘(a) DEFINITION OF QUALIFIED NONPROFIT TECH11 NICAL ASSISTANCE PROVIDER.—In this section, the term 

12 ‘qualified nonprofit technical assistance provider’ means a 

13 qualified nonprofit technical assistance provider of water 
61 

•S 1400 RS 

1 and wastewater services to small rural communities that 

2 provide technical assistance to treatment works (including 

3 circuit rider programs and training and preliminary engi4 neering evaluations) that— 

5 ‘‘(1) serve not more than 10,000 individuals; and 

6 ‘‘(2) may include a State agency. 

7 ‘‘(b) GRANT PROGRAM.— 

8 ‘‘(1) IN GENERAL.—The Administrator may 

9 make grants to qualified nonprofit technical assist10 ance providers that are qualified to provide assistance 

11 on a broad range of wastewater and stormwater ap12 proaches— 

13 ‘‘(A) to assist small treatment works to 

14 plan, develop, and obtain financing for eligible 

15 projects described in section 603(c) or 518(c); 

16 ‘‘(B) to capitalize revolving loan funds to 

17 provide loans, in consultation with the State in 

18 which the assistance is provided, to rural and 

19 small municipalities for predevelopment costs 

20 (including costs for planning, design, associated 

21 preconstruction, and necessary activities for 

22 siting the facility and related elements) associ23 ated with wastewater infrastructure projects or 

24 short-term costs incurred for equipment replace25 ment that is not part of regular operation and 
62 

•S 1400 RS 

1 maintenance activities for existing wastewater 

2 systems, if— 

3 ‘‘(i) any loan from the fund is made at 

4 or below the market interest rate, for a term 

5 not to exceed 10 years; 

6 ‘‘(ii) the amount of any single loan 

7 does not exceed $100,000; and 

8 ‘‘(iii) all loan repayments are credited 

9 to the fund; 

10 ‘‘(C) to provide technical assistance and 

11 training for rural and small publicly owned 

12 treatment works and decentralized wastewater 

13 treatment systems to enable those treatment 

14 works and systems to protect water quality and 

15 achieve and maintain compliance with this Act; 

16 and 

17 ‘‘(D) to disseminate information to rural 

18 and small municipalities with respect to plan19 ning, design, construction, and operation of pub20 licly owned treatment works and decentralized 

21 wastewater treatment systems. 

22 ‘‘(2) DISTRIBUTION OF GRANT.—In carrying out 

23 this subsection, the Administrator shall ensure, to the 

24 maximum extent practicable, that technical assistance 
63 

•S 1400 RS 

1 provided using funds from a grant under paragraph 

2 (1) is made available in each State. 

3 ‘‘(3) CONSULTATION.—As a condition of receiv4 ing a grant under this subsection, a qualified non5 profit technical assistance provider shall consult with 

6 each State in which grant funds are to be expended 

7 or otherwise made available before the grant funds are 

8 expended or made available in the State. 

9 ‘‘(4) ANNUAL REPORT.—For each fiscal year, a 

10 qualified nonprofit technical assistance provider that 

11 receives a grant under this subsection shall submit to 

12 the Administrator a report that— 

13 ‘‘(A) describes the activities of the qualified 

14 nonprofit technical assistance provider using 

15 grant funds received under this subsection for the 

16 fiscal year; and 

17 ‘‘(B) specifies— 

18 ‘‘(i) the number of communities served; 

19 ‘‘(ii) the sizes of those communities; 

20 and 

21 ‘‘(iii) the type of financing provided by 

22 the qualified nonprofit technical assistance 

23 provider. 
64 

•S 1400 RS 

1 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There is 

2 authorized to be appropriated to carry out this section 

3 $25,000,000 for each of fiscal years 2006 through 2010.’’. 

4 (b) GUIDANCE FOR SMALL SYSTEMS.—Section 602 of 

5 the Federal Water Pollution Control Act (33 U.S.C. 1382) 

6 is amended by adding at the end the following: 

7 ‘‘(c) GUIDANCE FOR SMALL SYSTEMS.— 

8 ‘‘(1) DEFINITION OF SMALL SYSTEM.—In this 

9 subsection, the term ‘small system’ means a system— 

10 ‘‘(A) for which a municipality or inter11 municipal, interstate, or State agency seeks as12 sistance under this title; and 

13 ‘‘(B) that serves a population of 10,000 or 

14 fewer individuals. 

15 ‘‘(2) SIMPLIFIED PROCEDURES.—Not later than 

16 1 year after the date of enactment of this subsection, 

17 the Administrator shall assist the States in estab18 lishing simplified procedures for small systems to ob19 tain assistance under this title. 

20 ‘‘(3) PUBLICATION OF MANUAL.—Not later than 

21 1 year after the date of enactment of this subsection, 

22 after providing notice and opportunity for public 

23 comment, the Administrator shall publish— 

24 ‘‘(A) a manual to assist small systems in 

25 obtaining assistance under this title; and 
65 

•S 1400 RS 

1 ‘‘(B) in the Federal Register, notice of the 

2 availability of the manual.’’. 

3 SEC. 102. PROJECTS ELIGIBLE FOR ASSISTANCE. 

4 Section 603 of the Federal Water Pollution Control Act 

5 (33 U.S.C. 1383) is amended by striking subsection (c) and 

6 inserting the following: 

7 ‘‘(c) PROJECTS ELIGIBLE FOR ASSISTANCE.—Funds 

8 in each State water pollution control revolving fund shall 

9 be used only for— 

10 ‘‘(1) providing financial assistance to any mu11 nicipality or an intermunicipal, interstate, or State 

12 agency or private utility that principally treats mu13 nicipal wastewater or domestic sewage for construc14 tion (including planning, design, associated 

15 preconstruction, and activities relating to the siting of 

16 a facility) of a treatment works (as defined in section 

17 212); 

18 ‘‘(2) implementation of a management program 

19 established under section 319; 

20 ‘‘(3) development and implementation of a con21 servation and management plan under section 320; 

22 ‘‘(4) providing financial assistance to a munici23 pality or an intermunicipal, interstate, or State 

24 agency for projects to increase the security of waste-
66 

•S 1400 RS 

1 water treatment works (excluding any expenditure for 

2 operations or maintenance); 

3 ‘‘(5) providing financial assistance to a munici4 pality or an intermunicipal, interstate, or State 

5 agency for measures to control municipal stormwater, 

6 the primary purpose of which is the preservation, 

7 protection, or enhancement of water quality to sup8 port public purposes; 

9 ‘‘(6) water conservation projects, the primary 

10 purpose of which is the protection, preservation, and 

11 enhancement of water quality to support public pur12 poses; or 

13 ‘‘(7) reuse, reclamation, and recycling projects, 

14 the primary purpose of which is the protection, pres15 ervation, and enhancement of water quality to sup16 port public purposes.’’. 

17 SEC. 103. SMALL STORMWATER POLLUTION CONTROL RE18 VOLVING LOAN FUNDS. 

19 Section 603(d) of the Federal Water Pollution Control 

20 Act (33 U.S.C. 1383(d)) is amended— 

21 (1) in paragraph (6), by striking ‘‘and’’ at the 

22 end; 

23 (2) in paragraph (7), by striking the period at 

24 the end and inserting ‘‘; and’’; and 

25 (3) by adding at the end the following: 
67 

•S 1400 RS 

1 ‘‘(8) to carry out a project under paragraph (2) 

2 or (3) of section 601(a), which may be— 

3 ‘‘(A) operated by a municipal, intermunic4 ipal, or interstate entity, State, public or private 

5 utility, corporation, partnership, association, or 

6 nonprofit agency; and 

7 ‘‘(B) used to make loans that will be fully 

8 amortized not later than 30 years after the date 

9 of the completion of the project.’’. 

10 SEC. 104. AFFORDABILITY. 

11 (a) IN GENERAL.—Section 603 of the Federal Water 

12 Pollution Control Act (33 U.S.C. 1383) is amended— 

13 (1) by redesignating subsections (e) through (h) 

14 as subsections (f) through (i), respectively; and 

15 (2) by inserting after subsection (d) the fol16 lowing: 

17 ‘‘(e) TYPES OF ASSISTANCE FOR DISADVANTAGED

18 COMMUNITIES.— 

19 ‘‘(1) DEFINITION OF DISADVANTAGED COMMU20 NITY.—In this subsection, the term ‘disadvantaged 

21 community’ means the service area, or portion of a 

22 service area, of a treatment works that meets afford23 ability criteria established after public review and 

24 comment by the State in which the treatment works 

25 is located. 
68 

•S 1400 RS 

1 ‘‘(2) LOAN SUBSIDY.—Notwithstanding any 

2 other provision of this section, in a case in which the 

3 State makes a loan from the water pollution control 

4 revolving loan fund in accordance with subsection (c) 

5 to a disadvantaged community or a community that 

6 the State expects to become a disadvantaged commu7 nity as the result of a proposed project, the State may 

8 provide additional subsidization, including— 

9 ‘‘(A) the forgiveness of the principal of the 

10 loan; and 

11 ‘‘(B) an interest rate on the loan of zero 

12 percent. 

13 ‘‘(3) TOTAL AMOUNT OF SUBSIDIES.—For each 

14 fiscal year, the total amount of loan subsidies made 

15 by the State pursuant to this subsection may not ex16 ceed 30 percent of the amount of the capitalization 

17 grant received by the State for the fiscal year. 

18 ‘‘(4) EXTENDED TERM.—A State may provide 

19 an extended term for a loan if the extended term— 

20 ‘‘(A) terminates not later than the date that 

21 is 30 years after the date of completion of the 

22 project; and 

23 ‘‘(B) does not exceed the expected design life 

24 of the project. 
69 

•S 1400 RS 

1 ‘‘(5) INFORMATION.—The Administrator may 

2 publish information to assist States in establishing 

3 affordability criteria described in paragraph (1).’’. 

4 (b) CONFORMING AMENDMENT.—Section 221(d) of the 

5 Federal Water Pollution Control Act (33 U.S.C. 1301(d)) 

6 is amended in the second sentence by striking ‘‘603(h)’’ and 

7 inserting ‘‘603(i)’’. 

8 SEC. 105. TRANSFERABILITY OF FUNDS. 

9 Section 603 of the Federal Water Pollution Control Act 

10 (33 U.S.C. 1383) (as amended by section 104(a)(1)) is 

11 amended by adding at the end the following: 

12 ‘‘(j) TRANSFER OF FUNDS.— 

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

14 may— 

15 ‘‘(A)(i) reserve not more than 33 percent of 

16 a capitalization grant made under this title; and 

17 ‘‘(ii) add the funds reserved to any funds 

18 provided to the State under section 1452 of the 

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

20 and 

21 ‘‘(B)(i) reserve for any year an amount that 

22 does not exceed the amount that may be reserved 

23 under subparagraph (A) for that year from cap24 italization grants made under section 1452 of 

25 that Act (42 U.S.C. 300j–12); and 
70 

•S 1400 RS 

1 ‘‘(ii) add the reserved funds to any funds 

2 provided to the State under this title. 

3 ‘‘(2) STATE MATCH.—Funds reserved under this 

4 subsection shall not be considered to be a State con5 tribution for a capitalization grant required under 

6 this title or section 1452(b) of the Safe Drinking 

7 Water Act (42 U.S.C. 300j–12(b)).’’. 

8 SEC. 106. COSTS OF ADMINISTERING WATER POLLUTION 

9 CONTROL REVOLVING LOAN FUNDS. 

10 Section 603(d)(7) of the Federal Water Pollution Con11 trol Act (33 U.S.C. 1383(d)(7)) is amended by striking ‘‘4 

12 percent’’ and inserting ‘‘6 percent’’. 

13 SEC. 107. WATER POLLUTION CONTROL REVOLVING LOAN 

14 FUNDS. 

15 Section 603 of the Federal Water Pollution Control Act 

16 (33 U.S.C. 1383) is amended by striking subsection (h) (as 

17 redesignated by section 104) and inserting the following: 

18 ‘‘(h) PRIORITY SYSTEM REQUIREMENT.— 

19 ‘‘(1) DEFINITIONS.—In this subsection: 

20 ‘‘(A) RESTRUCTURING.—The term ‘restruc21 turing’ means— 

22 ‘‘(i) the consolidation of management 

23 functions or ownership with another facil24 ity; or 
71 

•S 1400 RS 

1 ‘‘(ii) the formation of cooperative part2 nerships. 

3 ‘‘(B) TRADITIONAL WASTEWATER AP4 PROACH.—The term ‘traditional wastewater ap5 proach’ means a managed system used to collect 

6 and treat wastewater from an entire service area 

7 consisting of— 

8 ‘‘(i) collection sewers; 

9 ‘‘(ii) a centralized treatment plant 

10 using biological, physical, or chemical treat11 ment processes; and 

12 ‘‘(iii) a direct point source discharge to 

13 surface water. 

14 ‘‘(2) PRIORITY SYSTEM.—In providing financial 

15 assistance from the water pollution control revolving 

16 fund of the State, the State shall— 

17 ‘‘(A) give greater weight to an application 

18 for assistance by a treatment works if the appli19 cation includes such other information as the 

20 State determines to be appropriate and— 

21 ‘‘(i) an inventory of assets, including a 

22 description of the condition of those assets; 

23 ‘‘(ii) a schedule for replacement of the 

24 assets; 
72 

•S 1400 RS 

1 ‘‘(iii) a financing plan that factors in 

2 all life-cycle costs indicating sources of rev3 enue from ratepayers, grants, bonds, other 

4 loans, and other sources; 

5 ‘‘(iv) a review of options for restruc6 turing the treatment works; 

7 ‘‘(v) a review of options for or use of 

8 approaches other than a traditional waste9 water approach that may include actions or 

10 projects that treat or minimize sewage or 

11 urban stormwater discharges using— 

12 ‘‘(I) decentralized or distributed 

13 stormwater controls; 

14 ‘‘(II) decentralized wastewater 

15 treatment; 

16 ‘‘(III) low impact development 

17 technologies; 

18 ‘‘(IV) stream buffers; 

19 ‘‘(V) wetland restoration; or 

20 ‘‘(VI) actions to minimize the 

21 quantity of and direct connections to 

22 impervious surfaces; 

23 ‘‘(vi) demonstration of consistency with 

24 State, regional, and municipal watershed 

25 plans; 
73 

•S 1400 RS 

1 ‘‘(vii) a review of options for urban 

2 waterfront development or brownfields revi3 talization to be completed in conjunction 

4 with the project; or 

5 ‘‘(viii) provides the applicant the flexi6 bility through alternative means to carry 

7 out responsibilities under Federal regula8 tions, that may include watershed permit9 ting and other innovative management ap10 proaches, while achieving results that— 

11 ‘‘(I) the State authorized under 

12 section 402(a)(5) to issue national pol13 lution discharge elimination permits 

14 determines meet permit requirements 

15 for permits that have been issued in 

16 accordance with the national pollution 

17 discharge elimination system under 

18 section 402; or 

19 ‘‘(II) the Administrator deter20 mines are measurably superior when 

21 compared to regulatory standards; 

22 ‘‘(B) take into consideration appropriate 

23 chemical, physical, and biological data that the 

24 State considers reasonably available and of suffi25 cient quality; 
74 

•S 1400 RS 

1 ‘‘(C) provide for public notice and oppor2 tunity to comment on the establishment of the 

3 system and the summary under subparagraph 

4 (D); 

5 ‘‘(D) publish not less than biennially in 

6 summary form a description of projects in the 

7 State that are eligible for assistance under this 

8 title that indicates— 

9 ‘‘(i) the priority assigned to each 

10 project under the priority system of the 

11 State; and 

12 ‘‘(ii) the funding schedule for each 

13 project, to that extent the information is 

14 available; and 

15 ‘‘(E) ensure that projects undertaken with 

16 assistance under this title are designed to 

17 achieve, as determined by the State, the optimum 

18 water quality management, consistent with the 

19 public health and water quality goals and re20 quirements of this title. 

21 ‘‘(3) SAVINGS CLAUSE.—Nothing in paragraph 

22 (2)(A)(viii) affects the authority of the Administrator 

23 under section 402(a)(5).’’. 
75 

•S 1400 RS 

1 SEC. 108. NONCOMPLIANCE. 

2 Section 603 of the Federal Water Pollution Control Act 

3 (33 U.S.C. 1383) (as amended by section 105) is amended 

4 by adding at the end the following: 

5 ‘‘(k) NONCOMPLIANCE.— 

6 ‘‘(1) IN GENERAL.—Except as provided in para7 graph (2), no assistance (other than assistance that is 

8 to be used by a treatment works solely for planning, 

9 design, or security purposes) shall be provided under 

10 this title to a treatment works that has been in sig11 nificant noncompliance with any requirement of this 

12 Act for any of the 4 quarters in the previous 8 quar13 ters, unless the treatment works is in compliance 

14 with, or has entered into, an enforceable administra15 tive order to effect compliance with the requirement. 

16 ‘‘(2) EXCEPTION.—A treatment works that is de17 termined under paragraph (1) to be in significant 

18 noncompliance with a requirement described in that 

19 paragraph may receive assistance under this title if 

20 the Administrator and the State providing the assist21 ance determine that— 

22 ‘‘(A) the entity conducting the enforcement 

23 action on which the determination of significant 

24 noncompliance is based has determined that the 

25 use of assistance would enable the treatment 
76 

•S 1400 RS 

1 works to take corrective action toward resolving 

2 the violations; or 

3 ‘‘(B) the entity conducting the enforcement 

4 action on which the determination of significant 

5 noncompliance is based has determined that the 

6 assistance would be used on a portion of the 

7 treatment works that is not directly related to 

8 the cause of finding significant noncompliance.’’. 

9 SEC. 109. ALLOTMENT OF FUNDS. 

10 Section 604 of the Federal Water Pollution Control Act 

11 (33 U.S.C. 1384) is amended by striking subsection (a) and 

12 inserting the following: 

13 ‘‘(a) ALLOCATION OF FUNDS.— 

14 ‘‘(1) IN GENERAL.—Funds made available to 

15 carry out this section for a fiscal year shall be allo16 cated by the Administrator in accordance with this 

17 subsection. 

18 ‘‘(2) INDIAN TRIBES.—Of the total amount of 

19 funds available, 1.5 percent shall be allocated to In20 dian tribes (as that term is used in section 518(c)). 

21 ‘‘(3) STATES AND TERRITORIES.—Of the total 

22 amount of funds available after the allocation made 

23 under paragraph (2), funds shall be allocated among 

24 the States and territories in accordance with the fol25 lowing chart: 
77 

•S 1400 RS 

‘‘State: Percentage:

Alabama ............................................................. 0.68

Alaska ................................................................ 1.00

Arizona .............................................................. 0.91

Arkansas ............................................................ 0.50

California .......................................................... 8.02

Colorado ............................................................. 0.50

Connecticut ........................................................ 1.34

Delaware ............................................................ 1.00

Florida ............................................................... 3.46

Georgia ............................................................... 1.81

Hawaii ............................................................... 0.50

Idaho .................................................................. 0.50

Illinois ............................................................... 6.39

Indiana .............................................................. 2.48

Iowa ................................................................... 0.82

Kansas ............................................................... 0.55

Kentucky ............................................................ 1.29

Louisiana ........................................................... 1.49

Maine ................................................................. 0.50

Maryland ........................................................... 1.47

Massachusetts .................................................... 2.06

Michigan ............................................................ 4.36

Minnesota .......................................................... 1.12

Mississippi ......................................................... 0.92

Missouri ............................................................. 2.89

Montana ............................................................. 1.00

Nebraska ............................................................ 0.50

Nevada ............................................................... 0.75

New Hampshire ................................................ 0.61

New Jersey ......................................................... 5.77

New Mexico ........................................................ 0.50

New York ........................................................... 12.89

North Carolina .................................................. 1.93

North Dakota ..................................................... 0.75

Ohio .................................................................... 5.80

Oklahoma ........................................................... 1.07

Oregon ................................................................ 0.69

Pennsylvania ..................................................... 4.02

Rhode Island ..................................................... 1.00

South Carolina .................................................. 1.13

South Dakota .................................................... 1.00

Tennessee ........................................................... 1.48

Texas .................................................................. 2.78

Utah ................................................................... 0.50

Vermont ............................................................. 1.00

Virginia ............................................................. 2.17

Washington ........................................................ 1.06

West Virginia .................................................... 1.58

Wisconsin ........................................................... 1.64

Wyoming ............................................................ 0.50

District of Columbia ......................................... 0.50

Puerto Rico ........................................................ 0.50
78 

•S 1400 RS 

Territories .......................................................... 0.32.’’. 

1 SEC. 110. AUTHORIZATION OF APPROPRIATIONS. 

2 The Federal Water Pollution Control Act is amended 

3 by striking section 607 (33 U.S.C. 1387) and inserting the 

4 following: 

5 ‘‘SEC. 607. AUTHORIZATION OF APPROPRIATIONS. 

6 ‘‘(a) IN GENERAL.—There are authorized to be appro7 priated to carry out this title— 

8 ‘‘(1) $3,200,000,000 for each of fiscal years 2006 

9 and 2007; 

10 ‘‘(2) $3,600,000,000 for fiscal year 2008; 

11 ‘‘(3) $4,000,000,000 for fiscal year 2009; and 

12 ‘‘(4) $6,000,000,000 for fiscal year 2010. 

13 ‘‘(b) AVAILABILITY.—Amounts made available under 

14 this section shall remain available until expended. 

15 ‘‘(c) RESERVATION FOR NEEDS SURVEYS.—Of the 

16 amount made available under subsection (a) to carry out 

17 this title for a fiscal year, the Administrator may reserve 

18 not more than $1,000,000 for the fiscal year. to remain 

19 available until expended, to pay the costs of conducting 

20 needs surveys under section 516(2).’’. 

21 SEC. 111. CRITICAL WATER INFRASTRUCTURE PROJECTS. 

22 (a) ESTABLISHMENT.—Not later than 180 days after 

23 the date of enactment of this Act, the Administrator shall 
79 

•S 1400 RS 

1 establish a program under which grants are provided to eli2 gible entities for use in carrying out projects and activities 

3 the primary purpose of which is watershed restoration 

4 through the protection or improvement of water quality. 

5 (b) PROJECT SELECTION.— 

6 (1) IN GENERAL.—The Administrator may pro7 vide funds under this section to an eligible entity to 

8 carry out an eligible project described in paragraph 

9 (3). 

10 (2) EQUITABLE DISTRIBUTION.—The Adminis11 trator shall ensure an equitable distribution of 

12 projects under this section, taking into account cost 

13 and number of requests for each category listed in 

14 paragraph (3). 

15 (3) ELIGIBLE PROJECTS.—A project that is eligi16 ble to be carried out using funds provided under this 

17 section may include projects that— 

18 (A) are listed on the priority list of a State 

19 under section 216 of the Federal Water Pollution 

20 Control Act (33 U.S.C. 1296); 

21 (B) mitigate wet weather flows, including 

22 combined sewer overflows, sanitary sewer over23 flows, and stormwater discharges; 

24 (C) upgrade publicly owned treatment 

25 works with a permitted design capacity to treat 
80 

•S 1400 RS 

1 an annual average of at least 500,000 gallons of 

2 wastewater per day, the upgrade of which would 

3 produce the greatest nutrient load reductions at 

4 points of discharge, or result in the greatest envi5 ronmental benefits, with nutrient removal tech6 nologies that are designed to reduce— 

7 (i) total nitrogen in discharged waste8 water to an average annual concentration 

9 of not more than 3 milligrams per liter; 

10 (ii) total phosphorous in discharged 

11 wastewater to an average annual concentra12 tion of not more than 1 milligram per liter; 

13 or 

14 (iii) both nitrogen and phosphorous as 

15 described in clauses (i) and (ii); 

16 (D) implement locally based watershed pro17 tection plans created by local nonprofit organiza18 tions that— 

19 (i) provide a coordinating framework 

20 for management that focuses public and 

21 private efforts to address the highest pri22 ority water-related problems within a geo23 graphic area, considering both ground and 

24 surface water flow; and 
81 

•S 1400 RS 

1 (ii) includes representatives from both 

2 point source and nonpoint source contribu3 tors; 

4 (E) are contained in a State plan developed 

5 in accordance with section 319 or 320 of the 

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

7 1329, 1330); or 

8 (F) include means to develop alternative 

9 water supplies. 

10 (c) LOCAL PARTICIPATION.—In prioritizing projects 

11 for implementation under this section, the Administrator 

12 shall consult with, and consider the priorities of— 

13 (1) affected State and local governments; and 

14 (2) public and private entities that are active in 

15 watershed planning and restoration. 

16 (d) COST SHARING.—Before carrying out any project 

17 under this section, the Administrator shall enter into a 

18 binding agreement with 1 or more non-Federal interests 

19 that shall require the non-Federal interests— 

20 (1) to pay 45 percent of the total costs of the 

21 project, which may include services, materials, sup22 plies, or other in-kind contributions; 

23 (2) to provide any land, easements, rights-of24 way, and relocations necessary to carry out the 

25 project; and 
82 

•S 1400 RS 

1 (3) to pay 100 percent of any operation, mainte2 nance, repair, replacement, and rehabilitation costs 

3 associated with the project. 

4 (e) WAIVER.—The Administrator may waive the re5 quirement to pay the non-Federal share of the cost of car6 rying out an eligible activity using funds from a grant pro7 vided under this section if the Administrator determines 

8 that an eligible entity is unable to pay, or would experience 

9 significant financial hardship if required to pay, the non10 Federal share. 

11 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

12 authorized to be appropriated to carry out this section 

13 $300,000,000 for each of fiscal years 2006 through 2010. 

14 SEC. 112. CAPITALIZATION GRANT AGREEMENTS. 

15 Section 602(b) of the Federal Water Pollution Control 

16 Act (33 U.S.C. 1382(b)) is amended by striking paragraph 

17 (6) and inserting the following: 

18 ‘‘(6) treatment works eligible under section 

19 603(c)(1) that are constructed, in whole or in part, 

20 using funds made available by a State water pollu21 tion control revolving loan fund under this title will 

22 meet the requirements of section 513 in the same 

23 manner as treatment works constructed using assist24 ance provided under title II;’’. 
83 

•S 1400 RS 

1 TITLE II—SAFE DRINKING 

2 WATER INFRASTRUCTURE 

3 SEC. 201. PRECONSTRUCTION WORK. 

4 Section 1452(a)(2) of the Safe Drinking Water Act (42 

5 U.S.C. 300j–12(a)(2)) is amended in the second sentence— 

6 (1) by striking ‘‘(not’’ and inserting ‘‘(including 

7 expenditures for planning, design, and associated 

8 preconstruction and for recovery for siting of the fa9 cility and related elements but not’’; and 

10 (2) by inserting before the period at the end the 

11 following: ‘‘or to replace or rehabilitate aging treat12 ment, storage (including reservoirs), or distribution 

13 facilities of public water systems or provide for cap14 ital projects to upgrade the security of public water 

15 systems’’. 

16 SEC. 202. AFFORDABILITY. 

17 Section 1452(d)(3) of the Safe Drinking Water Act (42 

18 U.S.C. 300j–12(d)(3)) is amended in the first sentence by 

19 inserting ‘‘, or portion of a service area,’’ after ‘‘service 

20 area’’. 

21 SEC. 203. SAFE DRINKING WATER REVOLVING LOAN FUNDS. 

22 Section 1452(g) of the Safe Drinking Water Act (42 

23 U.S.C. 300j–12(g)) is amended— 

24 (1) paragraph (2)— 
84 

•S 1400 RS 

1 (A) in the first sentence, by striking ‘‘4’’ 

2 and inserting ‘‘6’’; and 

3 (B) by striking ‘‘1419,’’ and all that follows 

4 through ‘‘1993.’’ and inserting ‘‘1419.’’; and 

5 (2) by adding at the end the following: 

6 ‘‘(5) TRANSFER OF FUNDS.— 

7 ‘‘(A) IN GENERAL.—The Governor of a 

8 State may— 

9 ‘‘(i)(I) reserve not more than 33 per10 cent of a capitalization grant made under 

11 this section; and 

12 ‘‘(II) add the funds reserved to any 

13 funds provided to the State under section 

14 601 of the Federal Water Pollution Control 

15 Act (33 U.S.C. 1381); and 

16 ‘‘(ii)(I) reserve for any fiscal year an 

17 amount that does not exceed the amount 

18 that may be reserved under clause (i)(I) for 

19 that year from capitalization grants made 

20 under section 601 of that Act (33 U.S.C. 

21 1381); and 

22 ‘‘(II) add the reserved funds to any 

23 funds provided to the State under this sec24 tion. 
85 

•S 1400 RS 

1 ‘‘(B) STATE MATCH.—Funds reserved under 

2 this paragraph shall not be considered to be a 

3 State match of a capitalization grant required 

4 under this section or section 602(b) of the Fed5 eral Water Pollution Control Act (33 U.S.C. 

6 1382(b)).’’. 

7 SEC. 204. OTHER AUTHORIZED ACTIVITIES. 

8 Section 1452(k)(2)(D) of the Safe Drinking Water Act 

9 (42 U.S.C. 300j–12(k)(2)(D)) is amended by inserting be10 fore the period at the end the following: ‘‘(including imple11 mentation of source water protection plans)’’. 

12 SEC. 205. PRIORITY SYSTEM REQUIREMENTS. 

13 Section 1452(b)(3) of the Safe Drinking Water Act (42 

14 U.S.C. 300j–12(b)(3)) is amended— 

15 (1) by redesignating subparagraph (B) as sub16 paragraph (D); 

17 (2) by striking subparagraph (A) and inserting 

18 the following: 

19 ‘‘(A) DEFINITION OF RESTRUCTURING.—In 

20 this paragraph, the term ‘restructuring’ means 

21 changes in operations (including ownership, co22 operative partnerships, accounting, rates, main23 tenance, consolidation, and alternative water 

24 supply). 
86 

•S 1400 RS 

1 ‘‘(B) PRIORITY SYSTEM.—An intended use 

2 plan shall provide, to the maximum extent prac3 ticable, that priority for the use of funds be given 

4 to projects that— 

5 ‘‘(i) address the most serious risk to 

6 human health; 

7 ‘‘(ii) are necessary to ensure compli8 ance with this title (including requirements 

9 for filtration); and 

10 ‘‘(iii) assist systems most in need on a 

11 per-household basis according to State af12 fordability criteria. 

13 ‘‘(C) WEIGHT GIVEN TO APPLICATIONS.— 

14 After determining project priorities under sub15 paragraph (B), an intended use plan shall fur16 ther provide that the State shall give greater 

17 weight to an application for assistance by a 

18 community water system if the application in19 cludes such other information as the State deter20 mines to be necessary and— 

21 ‘‘(i) an inventory of assets, including a 

22 description of the condition of the assets; 

23 ‘‘(ii) a schedule for replacement of as24 sets; 
87 

•S 1400 RS 

1 ‘‘(iii) a financing plan indicating 

2 sources of revenue from ratepayers, grants, 

3 bonds, other loans, and other sources; 

4 ‘‘(iv) a review of options for restruc5 turing the public water system; 

6 ‘‘(v) demonstration of consistency with 

7 State, regional, and municipal watershed 

8 plans; or 

9 ‘‘(vi) a review of options for urban wa10 terfront development or brownfields revital11 ization to be completed in conjunction with 

12 the project;’’; and 

13 (3) in subparagraph (D) (as redesignated by 

14 paragraph (1)), by striking ‘‘periodically’’ and insert15 ing ‘‘at least biennially’’. 

16 SEC. 206. AUTHORIZATION OF APPROPRIATIONS. 

17 Section 1452 of the Safe Drinking Water Act (42 

18 U.S.C. 300j–12) is amended by striking subsection (m) and 

19 inserting the following: 

20 ‘‘(m) AUTHORIZATION OF APPROPRIATIONS.— 

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

22 appropriated to carry out this section— 

23 ‘‘(A) $1,500,000,000 for fiscal year 2006; 

24 ‘‘(B) $2,000,000,000 for each of fiscal years 

25 2007 and 2008; 
88 

•S 1400 RS 

1 ‘‘(C) $3,500,000,000 for fiscal year 2009; 

2 and 

3 ‘‘(D) $6,000,000,000 for fiscal year 2010. 

4 ‘‘(2) AVAILABILITY.—Amounts made available 

5 under this subsection shall remain available until ex6 pended. 

7 ‘‘(3) RESERVATION FOR NEEDS SURVEYS.—Of 

8 the amount made available under paragraph (1) to 

9 carry out this section for a fiscal year, the Adminis10 trator may reserve not more than $1,000,000 per year 

11 to pay the costs of conducting needs surveys under 

12 subsection (h).’’. 

13 SEC. 207. CRITICAL DRINKING WATER INFRASTRUCTURE 

14 PROJECTS. 

15 (a) ESTABLISHMENT.—Not later than 180 days after 

16 the date of enactment of this Act, the Administrator of the 

17 Environmental Protection Agency shall establish a program 

18 under which grants are provided to eligible entities for use 

19 in carrying out projects and activities the primary purpose 

20 of which is to assist community water systems in meeting 

21 the requirements of the Safe Drinking Water Act (42 U.S.C. 

22 300f et seq.). 

23 (b) PROJECT SELECTION.—A project that is eligible to 

24 be carried out using funds provided under this section may 

25 include projects that— 
89 

•S 1400 RS 

1 (1) develop alternative water sources; 

2 (2) provide assistance to small systems; or 

3 (3) assist a community water system— 

4 (A) to comply with a national primary 

5 drinking water regulation; or 

6 (B) to mitigate groundwater contamination. 

7 (c) ELIGIBLE ENTITIES.—An entity eligible to receive 

8 a grant under this section is— 

9 (1) a community water system as defined in sec10 tion 1401 of the Safe Drinking Water Act (42 U.S.C. 

11 300f); or 

12 (2) a system that is located in an area governed 

13 by an Indian Tribe, as defined in section 1401 of the 

14 Safe Drinking Water Act (42 U.S.C. 300f); 

15 (d) PRIORITY.—In prioritizing projects for implemen16 tation under this section, the Administrator shall give pri17 ority to community water systems that— 

18 (1) serve a community that, under affordability 

19 criteria established by the State under section 

20 1452(d)(3) of the Safe Drinking Water Act (42 U.S.C. 

21 300j-12), is determined by the State to be— 

22 (A) a disadvantaged community; or 

23 (B) a community that may become a dis24 advantaged community as a result of carrying 

25 out an eligible activity; or 
90 

•S 1400 RS 

1 (2) serve a community with a population of less 

2 than 10,000 individuals. 

3 (e) LOCAL PARTICIPATION.—In prioritizing projects 

4 for implementation under this section, the Administrator 

5 shall consult with, and consider the priorities of, affected 

6 States, Tribes, and local governments. 

7 (f) COST SHARING.—Before carrying out any project 

8 under this section, the Administrator shall enter into a 

9 binding agreement with 1 or more non-Federal interests 

10 that shall require the non-Federal interests— 

11 (1) to pay 45 percent of the total costs of the 

12 project, which may include services, materials, sup13 plies, or other in-kind contributions; 

14 (2) to provide any land, easements, rights-of15 way, and relocations necessary to carry out the 

16 project; and 

17 (3) to pay 100 percent of any operation, mainte18 nance, repair, replacement, and rehabilitation costs 

19 associated with the project. 

20 (g) WAIVER.—The Administrator may waive the re21 quirement to pay the non-Federal share of the cost of car22 rying out an eligible activity using funds from a grant pro23 vided under this section if the Administrator determines 

24 that an eligible entity is unable to pay, or would experience 
91 

•S 1400 RS 

1 significant financial hardship if required to pay, the non2 Federal share. 

3 (h) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated to carry out this section 

5 $300,000,000 for each of fiscal years 2006 through 2010. 

6 SEC. 208. SMALL SYSTEM REVOLVING LOAN FUNDS. 

7 Section 1442(e) of the Safe Drinking Water Act (42 

8 U.S.C. 300j–1(e)) is amended— 

9 (1) in the first sentence, by striking ‘‘The Ad10 ministrator may provide’’ and inserting the fol11 lowing: 

12 ‘‘(1) IN GENERAL.—The Administrator may pro13 vide’’; and 

14 (2) by adding at the end the following: 

15 ‘‘(2) SMALL SYSTEM REVOLVING LOAN FUND.— 

16 ‘‘(A) IN GENERAL.—In addition to amounts 

17 provided under this section, the Administrator 

18 may provide grants to qualified private, non19 profit entities to capitalize revolving funds to 

20 provide financing to eligible entities described in 

21 subparagraph (B) for— 

22 ‘‘(i) predevelopment costs (including 

23 costs for planning, design, associated 

24 preconstruction, and necessary activities for 

25 siting the facility and related elements) as-
92 

•S 1400 RS 

1 sociated with proposed water projects or 

2 with existing water systems; and 

3 ‘‘(ii) short-term costs incurred for re4 placement equipment, small-scale extension 

5 services, or other small capital projects that 

6 are not part of the regular operations and 

7 maintenance activities of existing water sys8 tems. 

9 ‘‘(B) ELIGIBLE ENTITIES.—To be eligible 

10 for assistance under this paragraph, an entity 

11 shall be a small water system (as described in 

12 section 1412(b)(4)(E)(ii)). 

13 ‘‘(C) MAXIMUM AMOUNT OF LOANS.—The 

14 amount of financing made to an eligible entity 

15 under this paragraph shall not exceed— 

16 ‘‘(i) $100,000 for costs described in 

17 subparagraph (A)(i); and 

18 ‘‘(ii) $100,000 for costs described in 

19 subparagraph (A)(ii). 

20 ‘‘(D) TERM.—The term of a loan made to 

21 an eligible entity under this paragraph shall not 

22 exceed 10 years. 

23 ‘‘(E) ANNUAL REPORT.—For each fiscal 

24 year, a qualified private, nonprofit entity that 
93 

•S 1400 RS 

1 receives a grant under subparagraph (A) shall 

2 submit to the Administrator a report that— 

3 ‘‘(i) describes the activities of the 

4 qualified private, nonprofit entity under 

5 this paragraph for the fiscal year; and 

6 ‘‘(ii) specifies— 

7 ‘‘(I) the number of communities 

8 served; 

9 ‘‘(II) the sizes of those commu10 nities; and 

11 ‘‘(III) the type of financing pro12 vided by the qualified private, non13 profit entity. 

14 ‘‘(F) AUTHORIZATION OF APPROPRIA15 TIONS.—There is authorized to be appropriated 

16 to carry out this subsection $25,000,000 for each 

17 of fiscal years 2006 through 2010.’’. 

18 SEC. 209. STUDY OF PLUMBING COMPONENTS. 

19 (a) IN GENERAL.—As soon as practicable after the 

20 date of enactment of this Act, the Administrator of the En21 vironmental Protection Agency shall enter into a coopera22 tive agreement with the National Academy of Sciences to 

23 carry out a study to analyze existing market conditions for 

24 plumbing components, including pipes, faucets, water me25 ters, valves, household valves, and any other plumbing com-
94 

•S 1400 RS 

1 ponents that come into contact with water commonly used 

2 for human consumption. 

3 (b) COMPONENTS.—In conducting the study under 

4 subsection (a), the National Academy of Sciences shall 

5 evaluate for each category of plumbing components de6 scribed in subsection (a)— 

7 (1) the availability of plumbing components in 

8 each category with lead content below 8 percent, in9 cluding those between 0 percent and 4 percent and 

10 those between 4 percent and 8 percent; 

11 (2) the variation of lead levels in components 

12 that make up a faucet assembly; 

13 (3) the relative market share of the plumbing 

14 components; 

15 (4) the relative cost of the plumbing components; 

16 (5) the issues surrounding transition from cur17 rent market to plumbing components with not more 

18 than 0.2 percent lead; 

19 (6) the feasibility of manufacturing plumbing 

20 components with lead levels below 8 percent; and 

21 (7) the use of lead alternatives in plumbing com22 ponents with lead levels below 8 percent. 

23 (c) CONSULTATION.—In conducting the study under 

24 subsection (a), the National Academy of Sciences shall con25 sult with individuals with appropriate expertise in plumb-
95 

•S 1400 RS 

1 ing components, plumbing products, plumbing materials, 

2 engineering, economics, and other appropriate fields from 

3 academia, industry, the National Sanitation Foundation, 

4 and other organizations as appropriate. 

5 (d) REPORT.—Upon receipt of the report, but not later 

6 than 18 months after the date on which the Administrator 

7 enters into the cooperative agreement, the Administrator 

8 shall submit to the Committee on Environment and Public 

9 Works of the Senate and the Committee on Energy and 

10 Commerce of the House of Representatives a report describ11 ing the findings of the study under this section. 

12 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

13 authorized to be appropriated to carry out this section 

14 $500,000. 

15 SEC. 210. DISTRICT OF COLUMBIA LEAD SERVICE LINE RE16 PLACEMENT. 

17 (a) AUTHORIZATION OF APPROPRIATIONS.—There is 

18 authorized to be appropriated to carry out lead service line 

19 replacement in the District of Columbia $30,000,000 for 

20 each of fiscal years 2006 through 2010. 

21 (b) LEAD SERVICE LINE REPLACEMENT ASSISTANCE

22 FUND.— 

23 (1) IN GENERAL.—Of the funds provided under 

24 subsection (a), not more than $2,000,000 per year 

25 may be allocated for water service line replacement 
96 

•S 1400 RS 

1 grants to provide assistance to low-income residents 

2 to replace the privately-owned portion of lead service 

3 lines. 

4 (2) LIMITATION.—Individual grants shall be 

5 limited to not more than $5,000. 

6 (3) DEFINITION OF LOW INCOME.—For the pur7 pose of this subsection, the term ‘‘low-income’’ shall be 

8 defined by the District of Columbia. 

9 SEC. 211. CONTAMINANT PREVENTION, DETECTION, AND 

10 RESPONSE. 

11 Section 1434 of the Safe Drinking Water Act (42 

12 U.S.C. 300i–3) is amended by striking subsection (b) and 

13 inserting the following: 

14 ‘‘(b) REPORT.—Not later than 180 days after the date 

15 of enactment of the Water Infrastructure Financing Act, the 

16 Administrator shall submit to Congress a report that in17 cludes— 

18 ‘‘(1) a description of the progress made as of that 

19 date in implementing this section; 

20 ‘‘(2) a description of any impediments to that 

21 implementation identified by the Administrator, in22 cluding— 

23 ‘‘(A) difficulty in coordinating the imple24 mentation with other Federal, State, or local 

25 agencies or organizations; 
97 

•S 1400 RS 

1 ‘‘(B) insufficient funding for effective imple2 mentation; 

3 ‘‘(C) a lack of authorization to take certain 

4 actions (including the authority to hire necessary 

5 personnel) required to carry out the implementa6 tion; and 

7 ‘‘(D) technological impediments to devel8 oping the methods, means, and equipment speci9 fied in subsection (a)(1). 

10 ‘‘(c) IMPLEMENTATION PLAN.—The Administrator 

11 shall develop and carry out an implementation plan for this 

12 section consistent with actions taken to date and incor13 porating the results of the report under subsection (b). 

14 ‘‘(d) FUNDING.—There is authorized to be appro15 priated to carry out this section $7,500,000 for each of fiscal 

16 years 2006 through 2010.’’. 

17 SEC. 212. LABOR STANDARDS. 

18 Section 1450 of the Safe Drinking Water Act (42 

19 U.S.C. 300j–9) is amended by striking subsection (e) and 

20 inserting the following: 

21 ‘‘(e) WAGE REQUIREMENTS.— 

22 ‘‘(1) IN GENERAL.—The Administrator shall take 

23 such action as is necessary to ensure that laborers 

24 and mechanics employed by contractors and sub25 contractors on construction projects financed, in 
98 

•S 1400 RS 

1 whole or in part, by a grant, loan, loan guarantee, 

2 refinancing, or any other form of assistance provided 

3 under this title (including assistance provided from 

4 the State drinking water revolving fund under section 

5 1452) are paid at rates that are not less than the 

6 rates prevailing for the same type of work for similar 

7 construction in the immediate locality, as determined 

8 by the Secretary of Labor in accordance with sub9 chapter IV of chapter 31 of title 40, United States 

10 Code (commonly known as the ‘Davis-Bacon Act’). 

11 ‘‘(2) AUTHORITY.—The Secretary of Labor shall 

12 have, with respect to the labor standards specified in 

13 this subsection, the authority and functions set forth 

14 in Reorganization Plan Numbered 14 of 1950 (15 

15 Fed. Reg. 3176) and section 3145 of title 40, United 

16 States Code.’’. 

17 TITLE III—MISCELLANEOUS 

18 SEC. 301. DEFINITIONS. 

19 In this title: 

20 (1) ADMINISTRATOR.—The term ‘‘Adminis21 trator’’ means the Administrator of the Environ22 mental Protection Agency. 

23 (2) SECRETARY.—The term ‘‘Secretary’’ 

24 means— 
99 

•S 1400 RS 

1 (A) as used in section 303, the Secretary of 

2 Agriculture; and 

3 (B) as used in section 306, the Secretary of 

4 the Interior, acting through the Director of the 

5 United States Geological Survey. 

6 SEC. 302. DEMONSTRATION GRANT PROGRAM FOR WATER 

7 QUALITY ENHANCEMENT AND MANAGEMENT. 

8 (a) RESEARCH AND DEVELOPMENT.— 

9 (1) IN GENERAL.—As soon as practicable after 

10 the date of enactment of this Act, the Administrator 

11 shall, through a competitive process, award grants 

12 and enter into contracts and cooperative agreements 

13 with research institutions, educational institutions, 

14 and other appropriate entities (including consortia of 

15 such institutions and entities) for research and devel16 opment on the use of innovative and alternative tech17 nologies to improve water quality or drinking water 

18 supply. 

19 (2) TYPES OF PROJECTS.—In carrying out this 

20 subsection, the Administrator may select projects re21 lating to such matters as innovative or alternative 

22 technologies, approaches, practices, or methods— 

23 (A) to increase the effectiveness and effi24 ciency of public water supply systems, includ25 ing— 
100 

•S 1400 RS 

1 (i) source water protection; 

2 (ii) water use reduction; 

3 (iii) water reuse; 

4 (iv) water treatment; 

5 (v) water distribution and wastewater 

6 collection systems; and 

7 (vi) water security; 

8 (B) to encourage the use of innovative or al9 ternative technologies or approaches relating to 

10 water supply or availability; 

11 (C) to increase the effectiveness and effi12 ciency of new and existing treatment works, in13 cluding— 

14 (i) methods of collecting, treating, dis15 persing, reusing, reclaiming, and recycling 

16 wastewater; 

17 (ii) system design; 

18 (iii) nonstructural alternatives; 

19 (iv) decentralized approaches; 

20 (v) assessment; 

21 (vi) water efficiency; and 

22 (vii) wastewater security; 

23 (D) to increase the effectiveness and effi24 ciency of municipal separate storm sewer sys25 tems; 
101 

•S 1400 RS 

1 (E) to promote new water treatment tech2 nologies, including commercialization and dis3 semination strategies for adoption of innovative 

4 water, wastewater, and stormwater technologies 

5 or alternative low impact development tech6 nologies in the homebuilding industry; or 

7 (F) to maintain a clearinghouse of tech8 nologies developed under this subsection and sub9 section (b) at a research consortium or institute. 

10 (3) AUTHORIZATION OF APPROPRIATIONS.— 

11 There is authorized to be appropriated to carry out 

12 this subsection $20,000,000 for each of fiscal years 

13 2006 through 2010. 

14 (b) ESTABLISHMENT.— 

15 (1) IN GENERAL.—As soon as practicable after 

16 the date of enactment of this Act, the Administrator 

17 shall establish a nationwide demonstration grant pro18 gram to— 

19 (A) promote innovations in technology and 

20 alternative approaches to water quality manage21 ment or water supply; or 

22 (B) reduce costs to municipalities incurred 

23 in complying with— 

24 (i) the Federal Water Pollution Control 

25 Act (33 U.S.C. 1251 et seq.); and 
102 

•S 1400 RS 

1 (ii) the Safe Drinking Water Act (42 

2 U.S.C. 300f et seq.). 

3 (2) SCOPE.—The demonstration grant program 

4 shall consist of 10 projects each year, to be carried out 

5 in municipalities selected by the Administrator under 

6 subsection (c). 

7 (c) SELECTION OF MUNICIPALITIES.— 

8 (1) APPLICATION.—A municipality that seeks to 

9 participate in the demonstration grant program shall 

10 submit to the Administrator a plan that— 

11 (A) is developed in coordination with— 

12 (i) the agency of the State having ju13 risdiction over water quality or water sup14 ply matters; and 

15 (ii) interested stakeholders, including 

16 universities and related research institu17 tions; 

18 (B) describes water impacts specific to 

19 urban or rural areas; 

20 (C) includes a strategy under which the mu21 nicipality, through participation in the dem22 onstration grant program, could effectively— 

23 (i) address water quality or water sup24 ply problems; and 
103 

•S 1400 RS 

1 (ii) achieve the water quality goals 

2 that— 

3 (I) could be achieved using more 

4 traditional methods; and 

5 (II) are required under— 

6 (aa) the Federal Water Pol7 lution Control Act (33 U.S.C. 

8 1251 et seq.); or 

9 (bb) the Safe Drinking Water 

10 Act (42 U.S.C. 300f et seq.); and 

11 (D) includes a schedule for achieving the 

12 water quality or water supply goals of the mu13 nicipality. 

14 (2) TYPES OF PROJECTS.—In carrying out the 

15 demonstration grant program, the Administrator 

16 shall provide grants for projects relating to water sup17 ply or water quality matters such as— 

18 (A) excessive nutrient growth; 

19 (B) urban or rural population pressure; 

20 (C) lack of an alternative water supply; 

21 (D) difficulties in water conservation and 

22 efficiency; 

23 (E) lack of support tools and technologies to 

24 rehabilitate and replace water supplies; 
104 

•S 1400 RS 

1 (F) lack of monitoring and data analysis 

2 for water distribution systems; 

3 (G) nonpoint source water pollution; 

4 (H) sanitary overflows; 

5 (I) combined sewer overflows; 

6 (J) problems with naturally occurring con7 stituents of concern; 

8 (K) problems with erosion and excess sedi9 ment; 

10 (L) new approaches to water treatment, dis11 tribution, and wastewater collection systems; 

12 (M) new methods for collecting and treating 

13 wastewater (including system design and non14 structural alternatives); and 

15 (N) stormwater. 

16 (3) RESPONSIBILITIES OF ADMINISTRATOR.—In 

17 providing grants for projects under this subsection, 

18 the Administrator shall— 

19 (A) ensure, to the maximum extent prac20 ticable, that— 

21 (i) the demonstration program includes 

22 a variety of projects with respect to— 

23 (I) geographic distribution; 

24 (II) innovative technologies used 

25 for the projects; and 
105 

•S 1400 RS 

1 (III) nontraditional approaches 

2 (including low-impact development 

3 technologies) used for the projects; and 

4 (ii) each category of project described 

5 in paragraph (2) is adequately represented; 

6 (B) give higher priority to projects that— 

7 (i) address multiple problems; and 

8 (ii) are regionally applicable; 

9 (C) ensure, to the maximum extent prac10 ticable, that at least 1 community having a pop11 ulation of 10,000 or fewer individuals receives a 

12 grant for each fiscal year; and 

13 (D) ensure that, for each fiscal year, no mu14 nicipality receives more than 25 percent of the 

15 total amount of funds made available for the fis16 cal year to provide grants under this section. 

17 (4) COST SHARING.— 

18 (A) IN GENERAL.—Except as provided in 

19 subparagraph (B), the non-Federal share of the 

20 total cost of a project funded by a grant under 

21 this section shall be not less than 20 percent. 

22 (B) WAIVER.—The Administrator may re23 duce or eliminate the non-Federal share of the 

24 cost of a project for reasons of affordability. 

25 (d) REPORTS.— 
106 

•S 1400 RS 

1 (1) REPORTS FROM GRANT RECIPIENTS.—A re2 cipient of a grant under this section shall submit to 

3 the Administrator, on the date of completion of a 

4 project of the recipient and on each of the dates that 

5 is 1, 2, and 3 years after that date, a report that de6 scribes the effectiveness of the project. 

7 (2) REPORTS TO CONGRESS.—Not later than 2 

8 years after the date of enactment of this Act, and 

9 every 2 years thereafter, the Administrator shall sub10 mit to the Committee on Environment and Public 

11 Works of the Senate and the Committee on Transpor12 tation and Infrastructure and the Committee on En13 ergy and Commerce of the House of Representatives 

14 a report that describes the status and results of the 

15 demonstration program. 

16 (e) INCORPORATION OF RESULTS AND INFORMA17 TION.—To the maximum extent practicable, the Adminis18 trator shall incorporate the results of, and information ob19 tained from, successful projects under this section into pro20 grams administered by the Administrator. 

21 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

22 authorized to be appropriated to carry out this section 

23 (other than subsection (a)) $20,000,000 for each of fiscal 

24 years 2006 through 2010. 
107 

•S 1400 RS 

1 SEC. 303. AGRICULTURAL POLLUTION CONTROL TECH2 NOLOGY GRANT PROGRAM. 

3 (a) DEFINITIONS.—In this section: 

4 (1) ADMINISTRATOR.—The term ‘‘Adminis5 trator’’ means the Administrator of the Environ6 mental Protection Agency. 

7 (2) AGRICULTURAL COMMODITY.—The term ‘‘ag8 ricultural commodity’’ means— 

9 (A) agricultural, horticultural, viticultural, 

10 and dairy products; 

11 (B) livestock and the products of livestock; 

12 (C) the products of poultry and bee raising; 

13 (D) the products of forestry; 

14 (E) other commodities raised or produced 

15 on agricultural sites, as determined to be appro16 priate by the Secretary; and 

17 (F) products processed or manufactured 

18 from products specified in subparagraphs (A) 

19 through (E), as determined by the Secretary. 

20 (3) AGRICULTURAL PROJECT.—The term ‘‘agri21 cultural project’’ means an agricultural pollution con22 trol technology pilot project that, as determined by the 

23 Administrator— 

24 (A) is carried out at an agricultural site; 

25 and 
108 

•S 1400 RS 

1 (B) achieves demonstrable reductions in air 

2 and water pollution. 

3 (4) AGRICULTURAL SITE.—The term ‘‘agricul4 tural site’’ means a farming or ranching operation of 

5 a producer. 

6 (5) PRODUCER.—The term ‘‘producer’’ means 

7 any person who is engaged in the production and sale 

8 of an agricultural commodity in the United States 

9 and who owns, or shares the ownership and risk of 

10 loss of, the agricultural commodity. 

11 (6) REVOLVING FUND.—The term ‘‘revolving 

12 fund’’ means an agricultural pollution control tech13 nology State revolving fund established by a State 

14 using amounts provided under subsection (b)(1). 

15 (b) GRANTS FOR AGRICULTURAL STATE REVOLVING

16 FUNDS.— 

17 (1) IN GENERAL.—As soon as practicable after 

18 the date of enactment of this section, the Adminis19 trator shall provide to each eligible State described in 

20 paragraph (2) 1 or more capitalization grants, that 

21 cumulatively equal no more than $1,000,000 per 

22 State, for use in establishing, within an agency of the 

23 State having jurisdiction over agriculture or environ24 mental quality, an agricultural pollution control tech25 nology State revolving fund. 
109 

•S 1400 RS 

1 (2) ELIGIBLE STATES.—An eligible State re2 ferred to in paragraph (1) is a State that agrees, 

3 prior to receipt of a capitalization grant under para4 graph (1)— 

5 (A) to establish, and deposit the funds from 

6 the grant in, a revolving fund; 

7 (B) to provide, at a minimum, a State 

8 share in an amount equal to 20 percent of the 

9 capitalization grant; 

10 (C) to use amounts in the revolving fund to 

11 make loans to producers in accordance with sub12 section (c); and 

13 (D) to return amounts in the revolving fund 

14 if no loan applications are granted within 2 

15 years of the receipt of the initial capitalization 

16 grant. 

17 (c) LOANS TO PRODUCERS.— 

18 (1) USE OF FUNDS.—A State that establishes a 

19 revolving fund under subsection (b)(2) shall use 

20 amounts in the revolving fund to provide loans to 

21 producers for use in designing and constructing agri22 cultural projects. 

23 (2) MAXIMUM AMOUNT OF LOAN.—The amount of 

24 a loan made to a producer using funds from a revolv25 ing fund shall not exceed $250,000, in the aggregate, 
110 

•S 1400 RS 

1 for all agricultural projects serving an agricultural 

2 site of the producer. 

3 (3) CONDITIONS ON LOANS.—A loan made to a 

4 producer using funds from a revolving fund shall— 

5 (A) have an interest rate that is not more 

6 than the market interest rate, including an in7 terest-free loan; and 

8 (B) be repaid to the revolving fund not later 

9 than 10 years after the date on which the loan 

10 is made. 

11 (d) REQUIREMENTS FOR PRODUCERS.— 

12 (1) IN GENERAL.—A producer that seeks to re13 ceive a loan from a revolving fund shall— 

14 (A) submit to the State in which the agri15 cultural site of the producer is located an appli16 cation that— 

17 (i) contains such information as the 

18 State may require; and 

19 (ii) demonstrates, to the satisfaction of 

20 the State, that each project proposed to be 

21 carried out with funds from the loan is an 

22 agricultural project; and 

23 (B) agree to expend all funds from a loan 

24 in an expeditious and timely manner, as deter25 mined by the State. 
111 

•S 1400 RS 

1 (2) MAXIMUM PERCENTAGE OF AGRICULTURAL

2 PROJECT COST.—Subject to subsection (c)(2), a pro3 ducer that receives a loan from a revolving fund may 

4 use funds from the loan to pay up to 100 percent of 

5 the cost of carrying out an agricultural project. 

6 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

7 authorized to be appropriated to carry out this section 

8 $50,000,000. 

9 SEC. 304. STATE REVOLVING FUND REVIEW PROCESS. 

10 As soon as practicable after the date of enactment of 

11 this Act, the Administrator shall— 

12 (1) consult with States, utilities, nonprofit orga13 nizations, and other Federal agencies providing fi14 nancial assistance to identify ways to expedite and 

15 improve the application and review process for the 

16 provision of assistance from— 

17 (A) the State water pollution control revolv18 ing funds established under title VI of the Fed19 eral Water Pollution Control Act (33 U.S.C. 

20 1381 et seq.); and 

21 (B) the State drinking water treatment re22 volving loan funds established under section 1452 

23 of the Safe Drinking Water Act (42 U.S.C. 300j– 

24 12); 
112 

•S 1400 RS 

1 (2) take such administrative action as is nec2 essary to expedite and improve the process as the Ad3 ministrator has authority to take under existing law; 

4 (3) collect information relating to innovative ap5 proaches taken by any State to simplify the applica6 tion process of the State, and provide the information 

7 to each State; and 

8 (4) submit to Congress a report that, based on 

9 the information identified under paragraph (1), con10 tains recommendations for legislation to facilitate 

11 further streamlining and improvement of the process. 

12 SEC. 305. COST OF SERVICE STUDY. 

13 (a) IN GENERAL.—Not later than 2 years after the 

14 date of enactment of this Act, the Administrator shall enter 

15 into a contract with the National Academy of Sciences for, 

16 and the National Academy of Sciences shall complete and 

17 provide to the Administrator the results of, a study of the 

18 means by which public water systems and treatment works 

19 selected by the Academy in accordance with subsection (c) 

20 meet the costs associated with operations, maintenance, 

21 capital replacement, and regulatory requirements. 

22 (b) REQUIRED ELEMENTS.— 

23 (1) AFFORDABILITY.—The study shall, at a min24 imum— 
113 

•S 1400 RS 

1 (A) determine whether the rates at public 

2 water systems and treatment works for commu3 nities included in the study were established 

4 using a full-cost pricing model; 

5 (B) if a full-cost pricing model was not 

6 used, identify any incentive rate systems that 

7 have been successful in significantly reducing— 

8 (i) per capita water demand; 

9 (ii) the volume of wastewater flows; 

10 (iii) the volume of stormwater runoff; 

11 or 

12 (iv) the quantity of pollution generated 

13 by stormwater; 

14 (C) identify a set of best industry practices 

15 that public water systems and treatment works 

16 may use in establishing a rate structure that— 

17 (i) adequately addresses the true cost of 

18 services provided to consumers by public 

19 water systems and treatment works, includ20 ing infrastructure replacement; 

21 (ii) encourages water conservation; and 

22 (iii) takes into consideration the needs 

23 of disadvantaged individuals and commu24 nities, as identified by the Administrator; 
114 

•S 1400 RS 

1 (D) identify existing standards for afford2 ability; 

3 (E) determine the manner in which those 

4 standards are determined and defined; 

5 (F) determine the manner in which afford6 ability varies with respect to communities of dif7 ferent sizes and in different regions; and 

8 (G) determine the extent to which afford9 ability affects the decision of a community to in10 crease public water system and treatment works 

11 rates (including the decision relating to the per12 centage by which those rates should be in13 creased). 

14 (2) DISADVANTAGED COMMUNITIES.—The study 

15 shall, at a minimum— 

16 (A) survey a cross-section of States rep17 resenting different sizes, demographics, and geo18 graphical regions; 

19 (B) describe, for each State described in 

20 subparagraph (A), the definition of ‘‘disadvan21 taged community’’ used in the State in carrying 

22 out projects and activities under the Safe Drink23 ing Water Act (42 U.S.C. 300f et seq.); 
115 

•S 1400 RS 

1 (C) review other means of identifying the 

2 meaning of the term ‘‘disadvantaged’’, as that 

3 term applies to communities; 

4 (D) determine which factors and character5 istics are required for a community to be consid6 ered ‘‘disadvantaged’’; and 

7 (E) evaluate the degree to which factors 

8 such as a reduction in the tax base over a period 

9 of time, a reduction in population, the loss of an 

10 industrial base, and the existence of areas of con11 centrated poverty are taken into account in de12 termining whether a community is a disadvan13 taged community. 

14 (c) SELECTION OF COMMUNITIES.—The National 

15 Academy of Sciences shall select communities, the public 

16 water system and treatment works rate structures of which 

17 are to be studied under this section, that include a cross18 section of communities representing various populations, 

19 income levels, demographics, and geographical regions. 

20 (d) USE OF RESULTS OF STUDY.—On receipt of the 

21 results of the study, the Administrator shall— 

22 (1) submit to Congress a report that describes the 

23 results of the study; and 

24 (2) make the results available to treatment works 

25 and public water systems for use by the publicly 
116 

•S 1400 RS 

1 owned treatment works and public water systems, on 

2 a voluntary basis, in determining whether 1 or more 

3 new approaches may be implemented at facilities of 

4 the publicly owned treatment works and public water 

5 systems. 

6 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

7 authorized to be appropriated to carry out this section 

8 $1,000,000 for each of fiscal years 2006 and 2007. 

9 SEC. 306. WATER RESOURCES STUDY. 

10 (a) ASSESSMENT.— 

11 (1) IN GENERAL.—The Secretary shall— 

12 (A) not later than 2 years after the date of 

13 enactment of this Act, conduct an assessment of 

14 water resources in the United States; and 

15 (B) update the assessment every 2 years 

16 thereafter. 

17 (2) COMPONENTS.—The assessment shall, at a 

18 minimum— 

19 (A) measure the status and trends of— 

20 (i) fresh water in rivers and reservoirs; 

21 (ii) groundwater levels and volume of 

22 useable fresh water stored in aquifers; and 

23 (iii) fresh water withdrawn from 

24 streams and aquifers in the United States; 

25 and 
117 

•S 1400 RS 

1 (B) provide those measurements for— 

2 (i) watersheds defined by the 352 hy3 drologic accounting units of the United 

4 States; and 

5 (ii) major aquifers of the United 

6 States, as identified by the Secretary. 

7 (3) REPORT.—Not later than 1 year after the 

8 date of completion of the assessment and every 2 years 

9 thereafter, the Secretary shall submit to Congress a 

10 report— 

11 (A) describing the results of the assessment; 

12 and 

13 (B) containing any recommendations of the 

14 Secretary relating to the assessment that— 

15 (i) are consistent with existing laws, 

16 treaties, decrees, and interstate compacts; 

17 and 

18 (ii) respect the primary role of States 

19 in adjudicating, administering, and regu20 lating water rights and uses. 

21 (b) WATER RESOURCE RESEARCH PRIORITIES.— 

22 (1) IN GENERAL.—The Secretary shall coordi23 nate a process among Federal agencies and appro24 priate State agencies to develop and publish, not later 

25 than 1 year after the date of enactment of this Act, 
118 

•S 1400 RS 

1 a list of water resource research priorities that focuses 

2 on— 

3 (A) water supply monitoring; 

4 (B) means of capturing excess water and 

5 flood water for conservation and use in the event 

6 of a drought; 

7 (C) strategies to conserve existing water 

8 supplies, including recommendations for repair9 ing aging infrastructure; 

10 (D) identifying incentives to ensure an ade11 quate and dependable supply of water; 

12 (E) identifying available technologies and 

13 other methods to optimize water supply reli14 ability, availability, and quality, while safe15 guarding the environment; and 

16 (F) improving the quality of water resource 

17 information available to State, tribal, and local 

18 water resource managers. 

19 (2) USE OF LIST.—The list published under 

20 paragraph (1) shall be used by Federal agencies as a 

21 guide in making decisions on the allocation of water 

22 research funding. 

23 (c) INFORMATION DELIVERY SYSTEM.— 

24 (1) IN GENERAL.—The Secretary shall coordi25 nate a process to develop an effective information de-
119 

•S 1400 RS 

1 livery system to communicate information described 

2 in paragraph (2) to— 

3 (A) decisionmakers at the Federal, regional, 

4 State, tribal, and local levels; 

5 (B) the private sector; and 

6 (C) the general public. 

7 (2) TYPES OF INFORMATION.—The information 

8 referred to in paragraph (1) may include— 

9 (A) the results of the national water re10 source assessments under subsection (a); 

11 (B) a summary of the Federal water re12 search priorities developed under subsection (b); 

13 (C) near real-time data and other informa14 tion on water shortages and surpluses; 

15 (D) planning models for water shortages or 

16 surpluses (at various levels including State, river 

17 basin, and watershed levels); 

18 (E) streamlined procedures for States and 

19 localities to interact with and obtain assistance 

20 from Federal agencies that perform water re21 source functions; and 

22 (F) other water resource materials, as the 

23 Secretary determine appropriate. 

24 (d) REPORT TO CONGRESS.—Not later than 2 years 

25 after the date of enactment of this Act, and every 2 years 
120 

•S 1400 RS 

1 thereafter through fiscal year 2009, the Secretary shall sub2 mit to Congress a report on the implementation of this sec3 tion. 

4 (e) SAVINGS CLAUSE.—Nothing in this section— 

5 (1) modifies, supercedes, abrogates, impairs, or 

6 otherwise affects in any way— 

7 (A) any right or jurisdiction of any State 

8 with respect to the water (including boundary 

9 water) of the State; 

10 (B) the authority of any State to allocate 

11 quantities of water within areas under the juris12 diction of the State; or 

13 (C) any right or claim to any quantity or 

14 use of water that has been adjudicated, allocated, 

15 or claimed— 

16 (i) in accordance with State law; 

17 (ii) in accordance with subsections (a) 

18 through (c) of section 208 of the Department 

19 of Justice Appropriation Act, 1953 (43 

20 U.S.C. 666); 

21 (iii) by or pursuant to an interstate 

22 compact; or 

23 (iv) by a decision of the United States 

24 Supreme Court; 
121 

•S 1400 RS 

1 (2) requires a change in the nature of use or the 

2 transfer of any right to use water or creates a limita3 tion on the exercise of any right to use water; or 

4 (3) requires modifying the delivery, diversion, 

5 non-diversion, allocation, storage, or release from 

6 storage of any water to be delivered by contract. 

7 (f) AUTHORIZATION OF APPROPRIATIONS.—There are 

8 authorized to be appropriated— 

9 (1) to carry out the report authorized by this sec10 tion, $3,000,000, to remain available until expended; 

11 and 

12 (2) to carry out the updates authorized by sub13 section (a)(1)(B), such sums as are necessary. 
Calendar No. 304 

109TH CONGRESS 

1ST SESSION S. 1400 

[Report No. 109–186] 

A BILL 

To amend the Federal Water Pollution Control Act 

United States. water and wastewater infrastructure in the and the Safe Drinking Water Act to improve 

DECEMBER 8, 2005 

Reported with an amendment