II 

109TH CONGRESS 

1ST SESSION S. 1400 

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, and Mr. JEFFORDS) 

introduced the following bill; which was read twice and referred to the 

Committee on Environment and Public Works 

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, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Water Infrastructure Financing Act’’. 

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

7 this Act is as follows:

Sec. 1. Short title; table of contents. 

TITLE I—WATER POLLUTION INFRASTRUCTURE 
2

•S 1400 IS

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.

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: 
3 

•S 1400 IS

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

2 TREATMENT WORKS. 

3 ‘‘(a) DEFINITION OF QUALIFIED NONPROFIT TECH4 NICAL ASSISTANCE PROVIDER.—In this section, the term 

5 ‘qualified nonprofit technical assistance provider’ means a 

6 qualified nonprofit technical assistance provider of water 

7 and wastewater services to small rural communities that 

8 provide technical assistance to treatment works (including 

9 circuit rider programs and training and preliminary engi10 neering evaluations) that— 

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

12 ‘‘(2) may include a State agency. 

13 ‘‘(b) GRANT PROGRAM.— 

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

15 make grants to qualified nonprofit technical assist16 ance providers that are qualified to provide assist17 ance on a broad range of wastewater and 

18 stormwater approaches— 

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

20 plan, develop, and obtain financing for eligible 

21 projects described in section 603(c); 

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

23 provide loans, in consultation with the State in 

24 which the assistance is provided, to rural and 

25 small municipalities for predevelopment costs 

26 (including costs for planning, design, associated 
4 

•S 1400 IS

1 preconstruction, and necessary activities for 

2 siting the facility and related elements) associ3 ated with wastewater infrastructure projects or 

4 short-term costs incurred for equipment re5 placement that is not part of regular operation 

6 and maintenance activities for existing waste7 water systems, if— 

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

9 at or below the market interest rate, for a 

10 term not to exceed 10 years; 

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

12 does not exceed $100,000; and 

13 ‘‘(iii) all loan repayments are credited 

14 to the fund; 

15 ‘‘(C) to provide technical assistance and 

16 training for rural and small publicly owned 

17 treatment works and decentralized wastewater 

18 treatment systems to enable those treatment 

19 works and systems to protect water quality and 

20 achieve and maintain compliance with this Act; 

21 and 

22 ‘‘(D) to disseminate information to rural 

23 and small municipalities with respect to plan24 ning, design, construction, and operation of 
5 

•S 1400 IS

1 publicly owned treatment works and decentral2 ized wastewater treatment systems. 

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

4 out this subsection, the Administrator shall ensure, 

5 to the maximum extent practicable, that technical 

6 assistance provided using funds from a grant under 

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

8 ‘‘(3) CONSULTATION.—As a condition of receiv9 ing a grant under this subsection, a qualified non10 profit technical assistance provider shall consult with 

11 each State in which grant funds are to be expended 

12 or otherwise made available before the grant funds 

13 are expended or made available in the State. 

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

15 qualified nonprofit technical assistance provider that 

16 receives a grant under this subsection shall submit 

17 to the Administrator a report that— 

18 ‘‘(A) describes the activities of the quali19 fied nonprofit technical assistance provider 

20 using grant funds received under this sub21 section for the fiscal year; and 

22 ‘‘(B) specifies— 

23 ‘‘(i) the number of communities 

24 served; 
6 

•S 1400 IS

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

2 and 

3 ‘‘(iii) the type of financing provided 

4 by the qualified nonprofit technical assist5 ance provider. 

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

7 is authorized to be appropriated to carry out this section 

8 $25,000,000 for each of fiscal years 2006 through 2010.’’. 

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

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

11 1382) is amended by adding at the end the following: 

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

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

14 subsection, the term ‘small system’ means a sys15 tem— 

16 ‘‘(A) for which a municipality or inter17 municipal, interstate, or State agency seeks as18 sistance under this title; and 

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

20 fewer households. 

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

22 1 year after the date of enactment of this sub23 section, the Administrator shall assist the States in 

24 establishing simplified procedures for small systems 

25 to obtain assistance under this title. 
7 

•S 1400 IS

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

2 than 1 year after the date of enactment of this sub3 section, after providing notice and opportunity for 

4 public comment, the Administrator shall publish— 

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

6 obtaining assistance under this title; and 

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

8 availability of the manual.’’. 

9 SEC. 102. PROJECTS ELIGIBLE FOR ASSISTANCE. 

10 Section 603 of the Federal Water Pollution Control 

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

12 (c) and inserting the following: 

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

14 in each State water pollution control revolving fund shall 

15 be used only for— 

16 ‘‘(1) providing financial assistance to any mu17 nicipality or an intermunicipal, interstate, or State 

18 agency that principally treats municipal wastewater 

19 or domestic sewage for construction (including plan20 ning, design, associated preconstruction, and activi21 ties relating to the siting of a facility) of a treatment 

22 works (as defined in section 212); 

23 ‘‘(2) implementation of a management program 

24 established under section 319; 
8 

•S 1400 IS

1 ‘‘(3) development and implementation of a con2 servation and management plan under section 320; 

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

5 agency for projects to increase the security of waste6 water treatment works (excluding any expenditure 

7 for operations or maintenance); 

8 ‘‘(5) providing financial assistance to a munici9 pality or an intermunicipal, interstate, or State 

10 agency for measures to control municipal 

11 stormwater, the primary purpose of which is the 

12 preservation, protection, or enhancement of water 

13 quality; 

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

15 purpose of which is the protection, preservation, and 

16 enhancement of water quality; or 

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

18 the primary purpose of which is the protection, pres19 ervation, and enhancement of water quality.’’. 

20 SEC. 103. WATER POLLUTION CONTROL REVOLVING LOAN 

21 FUNDS. 

22 Section 603(d) of the Federal Water Pollution Con23 trol Act (33 U.S.C. 1383(d)) is amended— 

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

25 end; 
9 

•S 1400 IS

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

2 the end and inserting ‘‘; and’’; and 

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

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

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

6 ‘‘(A) operated by a municipal, intermunic7 ipal, or interstate entity, State, public or pri8 vate utility, corporation, partnership, associa9 tion, or nonprofit agency; and 

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

11 amortized not later than 30 years after the date 

12 of the completion of the project.’’. 

13 SEC. 104. AFFORDABILITY. 

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

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

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

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

18 (2) by inserting after subsection (d) the fol19 lowing: 

20 ‘‘(e) TYPES OF ASSISTANCE FOR DISADVANTAGED

21 COMMUNITIES.— 

22 ‘‘(1) DEFINITION OF DISADVANTAGED COMMU23 NITY.—In this subsection, the term ‘disadvantaged 

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

25 service area, of a treatment works that meets afford-
10 

•S 1400 IS

1 ability criteria established after public review and 

2 comment by the State in which the treatment works 

3 is located. 

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

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

6 State makes a loan from the water pollution control 

7 revolving loan fund in accordance with subsection (c) 

8 to a disadvantaged community or a community that 

9 the State expects to become a disadvantaged com10 munity as the result of a proposed project, the State 

11 may provide additional subsidization, including— 

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

13 loan; and 

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

15 percent. 

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

17 fiscal year, the total amount of loan subsidies made 

18 by the State pursuant to this subsection may not ex19 ceed 30 percent of the amount of the capitalization 

20 grant received by the State for the fiscal year. 

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

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

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

24 that is 30 years after the date of completion of 

25 the project; and 
11 

•S 1400 IS

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

2 life of the project. 

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

4 publish information to assist States in establishing 

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

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

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

8 1301(d)) is amended in the second sentence by striking 

9 ‘‘603(h)’’ and inserting ‘‘603(i)’’. 

10 SEC. 105. TRANSFERABILITY OF FUNDS. 

11 Section 603 of the Federal Water Pollution Control 

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

13 is amended by adding at the end the following: 

14 ‘‘(j) TRANSFER OF FUNDS.— 

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

16 may— 

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

18 of a capitalization grant made under this title; 

19 and 

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

21 provided to the State under section 1452 of the 

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

23 and 

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

25 that does not exceed the amount that may be 
12 

•S 1400 IS

1 reserved under subparagraph (A) for that year 

2 from capitalization grants made under section 

3 1452 of that Act (42 U.S.C. 300j–12); and 

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

5 provided to the State under this title. 

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

7 this subsection shall not be considered to be a State 

8 contribution for a capitalization grant required 

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

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

11 SEC. 106. COSTS OF ADMINISTERING WATER POLLUTION 

12 CONTROL REVOLVING LOAN FUNDS. 

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

14 Control Act (33 U.S.C. 1383(d)(7)) is amended by strik15 ing ‘‘4 percent’’ and inserting ‘‘6 percent’’. 

16 SEC. 107. WATER POLLUTION CONTROL REVOLVING LOAN 

17 FUNDS. 

18 Section 603 of the Federal Water Pollution Control 

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

20 (h) (as redesignated by section 104) and inserting the fol21 lowing: 

22 ‘‘(h) PRIORITY SYSTEM REQUIREMENT.— 

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

24 ‘‘(A) RESTRUCTURING.—The term ‘re25 structuring’ means— 
13 

•S 1400 IS

1 ‘‘(i) the consolidation of management 

2 functions or ownership with another facil3 ity; or 

4 ‘‘(ii) the formation of cooperative 

5 partnerships. 

6 ‘‘(B) TRADITIONAL WASTEWATER AP7 PROACH.—The term ‘traditional wastewater ap8 proach’ means a managed system used to col9 lect and treat wastewater from an entire service 

10 area consisting of— 

11 ‘‘(i) collection sewers; 

12 ‘‘(ii) a centralized treatment plant 

13 using biological, physical, or chemical 

14 treatment processes; and 

15 ‘‘(iii) a direct point source discharge 

16 to surface water. 

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

18 assistance from the water pollution control revolving 

19 fund of the State, the State shall— 

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

21 for assistance by a treatment works if the appli22 cation includes such other information as the 

23 State determines to be appropriate and— 
14 

•S 1400 IS

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

2 a description of the condition of those as3 sets; 

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

5 assets; 

6 ‘‘(iii) a financing plan indicating 

7 sources of revenue from ratepayers, grants, 

8 bonds, other loans, and other sources; 

9 ‘‘(iv) a review of options for restruc10 turing the treatment works; 

11 ‘‘(v) a review of options for ap12 proaches other than a traditional waste13 water approach that may include actions 

14 or projects that treat or minimize sewage 

15 or urban stormwater discharges using— 

16 ‘‘(I) decentralized or distributed 

17 stormwater controls; 

18 ‘‘(II) decentralized wastewater 

19 treatment; 

20 ‘‘(III) low impact development 

21 technologies; 

22 ‘‘(IV) stream buffers; 

23 ‘‘(V) wetland restoration; or 
15 

•S 1400 IS

1 ‘‘(VI) actions to minimize the 

2 quantity of and direct connections to 

3 impervious surfaces; 

4 ‘‘(vi) demonstration of consistency 

5 with State, regional, and municipal water6 shed plans; 

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

8 waterfront development or brownfields re9 vitalization to be completed in conjunction 

10 with the project; or 

11 ‘‘(viii) provides the applicant the flexi12 bility through alternative means to carry 

13 out responsibilities under Federal regula14 tions, that may include watershed permit15 ting and other innovative management ap16 proaches, while achieving results that— 

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

18 authority under section 402(a)(5), de19 termines meet permit requirements 

20 for permits that have been issued in 

21 accordance with the national pollution 

22 discharge elimination system under 

23 section 402; or 
16 

•S 1400 IS

1 ‘‘(II) the Administrator deter2 mines are measurably superior when 

3 compared to regulatory standards; 

4 ‘‘(B) take into consideration appropriate 

5 chemical, physical, and biological data that the 

6 State considers reasonably available and of suf7 ficient quality; 

8 ‘‘(C) provide for public notice and oppor9 tunity to comment on the establishment of the 

10 system and the summary under subparagraph 

11 (D); 

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

13 summary form a description of projects in the 

14 State that are eligible for assistance under this 

15 title that indicates— 

16 ‘‘(i) the priority assigned to each 

17 project under the priority system of the 

18 State; and 

19 ‘‘(ii) the funding schedule for each 

20 project, to that extent the information is 

21 available; and 

22 ‘‘(E) ensure that projects undertaken with 

23 assistance under this title are designed to 

24 achieve, as determined by the State, the opti25 mum water quality management, consistent 
17 

•S 1400 IS

1 with the public health and water quality goals 

2 and requirements of this title. 

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

4 (2)(A)(viii) affects the authority of the Adminis5 trator under section 402(a)(5).’’. 

6 SEC. 108. NONCOMPLIANCE. 

7 Section 603 of the Federal Water Pollution Control 

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

9 amended by adding at the end the following: 

10 ‘‘(k) NONCOMPLIANCE.— 

11 ‘‘(1) IN GENERAL.—Except as provided in para12 graph (2), no assistance (other than assistance that 

13 is to be used by a treatment works solely for plan14 ning, design, or security purposes) shall be provided 

15 under this title to a treatment works that has been 

16 in significant noncompliance with any requirement 

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

18 8 quarters, unless the treatment works is in compli19 ance with, or has entered into, an enforceable ad20 ministrative order to effect compliance with the re21 quirement. 

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

23 determined under paragraph (1) to be in significant 

24 noncompliance with a requirement described in that 

25 paragraph may receive assistance under this title if 
18 

•S 1400 IS

1 the Administrator and the State providing the as2 sistance determine that— 

3 ‘‘(A) the entity conducting the enforcement 

4 action on which the determination of significant 

5 noncompliance is based has determined that the 

6 use of assistance would enable the treatment 

7 works to take corrective action toward resolving 

8 the violations; or 

9 ‘‘(B) the entity conducting the enforcement 

10 action on which the determination of significant 

11 noncompliance is based has determined that the 

12 assistance would be used on a portion of the 

13 treatment works that is not directly related to 

14 the cause of finding significant noncompli15 ance.’’. 

16 SEC. 109. AUTHORIZATION OF APPROPRIATIONS. 

17 The Federal Water Pollution Control Act is amended 

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

19 the following: 

20 ‘‘SEC. 607. AUTHORIZATION OF APPROPRIATIONS. 

21 ‘‘(a) IN GENERAL.—There are authorized to be ap22 propriated to carry out this title— 

23 ‘‘(1) $3,200,000,000 for each of fiscal years 

24 2006 and 2007; 

25 ‘‘(2) $3,600,000,000 for fiscal year 2008; 
19 

•S 1400 IS

1 ‘‘(3) $4,000,000,000 for fiscal year 2009; and 

2 ‘‘(4) $6,000,000,000 for fiscal year 2010. 

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

4 this section shall remain available until expended. 

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

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

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

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

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

10 SEC. 110. CRITICAL WATER INFRASTRUCTURE PROJECTS. 

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

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

13 establish a program under which grants are provided to 

14 eligible entities for use in carrying out projects and activi15 ties the primary purpose of which is watershed restoration 

16 through the protection or improvement of water quality. 

17 (b) PROJECT SELECTION.— 

18 (1) IN GENERAL.—The Administrator may pro19 vide funds under this section to an eligible entity to 

20 carry out an eligible project described in paragraph 

21 (2). 

22 (2) EQUITABLE DISTRIBUTION.—The Adminis23 trator shall ensure an equitable distribution of 

24 projects under this section, taking into account cost 
20 

•S 1400 IS

1 and number of requests for each category listed in 

2 paragraph (3). 

3 (3) ELIGIBLE PROJECTS.—A project that is eli4 gible to be carried out using funds provided under 

5 this section may include projects that— 

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

7 under section 216 of the Federal Water Pollu8 tion Control Act (33 U.S.C. 1296); 

9 (B) mitigate wet weather flows, including 

10 combined sewer overflows, sanitary sewer over11 flows, and stormwater discharges; 

12 (C) upgrade publicly owned treatment 

13 works with a permitted design capacity to treat 

14 an annual average of at least 500,000 gallons 

15 of wastewater per day, the upgrade of which 

16 would produce the greatest nutrient load reduc17 tions at points of discharge, or result in the 

18 greatest environmental benefits, with nutrient 

19 removal technologies that are designed to re20 duce total nitrogen in discharged wastewater to 

21 an average annual concentration of 3 milli22 grams per liter; 

23 (D) implement locally based watershed 

24 protection plans created by local nonprofit orga25 nizations that— 
21 

•S 1400 IS

1 (i) provide a coordinating framework 

2 for management that focuses public and 

3 private efforts to address the highest pri4 ority water-related problems within a geo5 graphic area, considering both ground and 

6 surface water flow; and 

7 (ii) includes representatives from both 

8 point source and nonpoint source contribu9 tors; 

10 (E) are contained in a State plan devel11 oped in accordance with section 319 or 320 of 

12 the Federal Water Pollution Control Act (33 

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

14 (F) include means to develop alternative 

15 water supplies. 

16 (c) LOCAL PARTICIPATION.—In prioritizing projects 

17 for implementation under this section, the Administrator 

18 shall consult with, and consider the priorities of— 

19 (1) affected State and local governments; and 

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

21 watershed planning and restoration. 

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

23 under this section, the Administrator shall enter into a 

24 binding agreement with 1 or more non-Federal interests 

25 that shall require the non-Federal interests— 
22 

•S 1400 IS

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

2 project, which may include services, materials, sup3 plies, or other in-kind contributions; 

4 (2) to provide any land, easements, rights-of5 way, and relocations necessary to carry out the 

6 project; and 

7 (3) to pay 100 percent of any operation, main8 tenance, repair, replacement, and rehabilitation costs 

9 associated with the project. 

10 (e) WAIVER.—The Administrator may waive the re11 quirement to pay the non-Federal share of the cost of car12 rying out an eligible activity using funds from a grant pro13 vided under this section if the Administrator determines 

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

15 significant financial hardship if required to pay, the non16 Federal share. 

17 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

18 authorized to be appropriated to carry out this section 

19 $300,000,000 for each of fiscal years 2006 through 2010. 

20 TITLE II—SAFE DRINKING 

21 WATER INFRASTRUCTURE 

22 SEC. 201. PRECONSTRUCTION WORK. 

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

24 (42 U.S.C. 300j–12(a)(2)) is amended in the second sen25 tence— 
23 

•S 1400 IS

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

2 expenditures for planning, design, and associated 

3 preconstruction and for recovery for siting of the fa4 cility and related elements but not’’; and 

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

6 following: ‘‘or to replace or rehabilitate aging collec7 tion, treatment, storage (including reservoirs), or 

8 distribution facilities of public water systems or pro9 vide for capital projects to upgrade the security of 

10 public water systems’’. 

11 SEC. 202. AFFORDABILITY. 

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

13 (42 U.S.C. 300j–12(d)(3)) is amended in the first sen14 tence by inserting ‘‘, or portion of a service area,’’ after 

15 ‘‘service area’’. 

16 SEC. 203. SAFE DRINKING WATER REVOLVING LOAN 

17 FUNDS. 

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

19 U.S.C. 300j–12(g)) is amended— 

20 (1) paragraph (2)— 

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

22 and inserting ‘‘6’’; and 

23 (B) by striking ‘‘1419,’’ and all that fol24 lows through ‘‘1933.’’ and inserting ‘‘1419.’’; 

25 and 
24 

•S 1400 IS

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

2 ‘‘(5) TRANSFER OF FUNDS.— 

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

4 State may— 

5 ‘‘(i)(I) reserve not more than 33 per6 cent of a capitalization grant made under 

7 this section; and 

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

9 funds provided to the State under section 

10 601 of the Federal Water Pollution Con11 trol Act (33 U.S.C. 1381); and 

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

13 amount that does not exceed the amount 

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

15 for that year from capitalization grants 

16 made under section 601 of that Act (33 

17 U.S.C. 1381); and 

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

19 funds provided to the State under this sec20 tion. 

21 ‘‘(B) STATE MATCH.—Funds reserved 

22 under this paragraph shall not be considered to 

23 be a State match of a capitalization grant re24 quired under this section or section 602(b) of 
25 

•S 1400 IS

1 the Federal Water Pollution Control Act (33 

2 U.S.C. 1382(b)).’’. 

3 SEC. 204. OTHER AUTHORIZED ACTIVITIES. 

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

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

6 before the period at the end the following: ‘‘(including im7 plementation of source water protection plans)’’. 

8 SEC. 205. PRIORITY SYSTEM REQUIREMENTS. 

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

10 (42 U.S.C. 300j–12(b)(3)) is amended— 

11 (1) by redesignating subparagraph (B) as sub12 paragraph (D); 

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

14 the following: 

15 ‘‘(A) DEFINITION OF RESTRUCTURING.— 

16 In this paragraph, the term ‘restructuring’ 

17 means changes in operations (including owner18 ship, accounting, rates, maintenance, consolida19 tion, and alternative water supply). 

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

21 plan shall provide, to the maximum extent prac22 ticable, that priority for the use of funds be 

23 given to projects that— 

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

25 human health; 
26 

•S 1400 IS

1 ‘‘(ii) are necessary to ensure compli2 ance with this title (including requirements 

3 for filtration); and 

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

5 a per-household basis according to State 

6 affordability criteria. 

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

8 After determining project priorities under sub9 paragraph (B), an intended use plan shall fur10 ther provide that the State shall give greater 

11 weight to an application for assistance by a 

12 community water system if the application in13 cludes such other information as the State de14 termines to be necessary and— 

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

16 a description of the condition of the assets; 

17 ‘‘(ii) a schedule for replacement of as18 sets; 

19 ‘‘(iii) a financing plan indicating 

20 sources of revenue from ratepayers, grants, 

21 bonds, other loans, and other sources; 

22 ‘‘(iv) a review of options for restruc23 turing the public water system; 
27 

•S 1400 IS

1 ‘‘(v) demonstration of consistency 

2 with State, regional, and municipal water3 shed plans; or 

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

5 waterfront development or brownfields re6 vitalization to be completed in conjunction 

7 with the project;’’; and 

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

9 paragraph (1)), by striking ‘‘periodically’’ and in10 serting ‘‘at least biennially’’. 

11 SEC. 206. AUTHORIZATION OF APPROPRIATIONS. 

12 Section 1452 of the Safe Drinking Water Act (42 

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

14 and inserting the following: 

15 ‘‘(m) AUTHORIZATION OF APPROPRIATIONS.— 

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

17 appropriated to carry out this section— 

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

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

20 years 2007 and 2008; 

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

22 and 

23 ‘‘(D) $6,000,000,000 for fiscal year 2010. 
28 

•S 1400 IS

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

2 under this subsection shall remain available until ex3 pended. 

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

5 the amount made available under paragraph (1) to 

6 carry out this section for a fiscal year, the Adminis7 trator may reserve not more than $1,000,000 per 

8 year to pay the costs of conducting needs surveys 

9 under subsection (h).’’. 

10 SEC. 207. CRITICAL DRINKING WATER INFRASTRUCTURE 

11 PROJECTS. 

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

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

14 the Environmental Protection Agency shall establish a 

15 program under which grants are provided to eligible enti16 ties for use in carrying out projects and activities the pri17 mary purpose of which is to assist community water sys18 tems in meeting the requirements of the Safe Drinking 

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

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

21 to be carried out using funds provided under this section 

22 may include projects that— 

23 (1) develop alternative water sources; 

24 (2) provide assistance to small systems; or 

25 (3) assist a community water system— 
29 

•S 1400 IS

1 (A) to comply with a national primary 

2 drinking water regulation; or 

3 (B) to mitigate groundwater contamina4 tion. 

5 (c) ELIGIBLE ENTITIES.—An entity eligible to re6 ceive a grant under this section is— 

7 (1) a community water system as defined in 

8 section 1401 of the Safe Drinking Water Act (42 

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

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

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

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

13 (d) PRIORITY.—In prioritizing projects for implemen14 tation under this section, the Administrator shall give pri15 ority to community water systems that— 

16 (1) serve a community that, under affordability 

17 criteria established by the State under section 

18 1452(d)(3) of the Safe Drinking Water Act (42 

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

20 (A) a disadvantaged community; or 

21 (B) a community that may become a dis22 advantaged community as a result of carrying 

23 out an eligible activity; or 

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

25 than 10,000 households. 
30 

•S 1400 IS

1 (e) LOCAL PARTICIPATION.—In prioritizing projects 

2 for implementation under this section, the Administrator 

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

4 States, Tribes, and local governments. 

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

6 under this section, the Administrator shall enter into a 

7 binding agreement with 1 or more non-Federal interests 

8 that shall require the non-Federal interests— 

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

10 project, which may include services, materials, sup11 plies, or other in-kind contributions; 

12 (2) to provide any land, easements, rights-of13 way, and relocations necessary to carry out the 

14 project; and 

15 (3) to pay 100 percent of any operation, main16 tenance, repair, replacement, and rehabilitation costs 

17 associated with the project. 

18 (g) WAIVER.—The Administrator may waive the re19 quirement to pay the non-Federal share of the cost of car20 rying out an eligible activity using funds from a grant pro21 vided under this section if the Administrator determines 

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

23 significant financial hardship if required to pay, the non24 Federal share. 
31 

•S 1400 IS

1 (h) AUTHORIZATION OF APPROPRIATIONS.—There is 

2 authorized to be appropriated to carry out this section 

3 $300,000,000 for each of fiscal years 2006 through 2010. 

4 SEC. 208. SMALL SYSTEM REVOLVING LOAN FUNDS. 

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

6 U.S.C. 300j–1(e)) is amended— 

7 (1) in the first sentence, by striking ‘‘The Ad8 ministrator may provide’’ and inserting the fol9 lowing: 

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

11 provide’’; and 

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

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

14 ‘‘(A) IN GENERAL.—In addition to 

15 amounts provided under this section, the Ad16 ministrator may provide grants to qualified pri17 vate, nonprofit entities to capitalize revolving 

18 funds to provide financing to eligible entities 

19 described in subparagraph (B) for— 

20 ‘‘(i) predevelopment costs (including 

21 costs for planning, design, associated 

22 preconstruction, and necessary activities 

23 for siting the facility and related elements) 

24 associated with proposed water projects or 

25 with existing water systems; and 
32 

•S 1400 IS

1 ‘‘(ii) short-term costs incurred for re2 placement equipment, small-scale extension 

3 services, or other small capital projects 

4 that are not part of the regular operations 

5 and maintenance activities of existing 

6 water systems. 

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

8 for assistance under this paragraph, an entity 

9 shall be a small water system (as described in 

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

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

12 amount of financing made to an eligible entity 

13 under this paragraph shall not exceed— 

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

15 subparagraph (A)(i); and 

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

17 subparagraph (A)(ii). 

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

19 an eligible entity under this paragraph shall not 

20 exceed 10 years. 

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

22 year, a qualified private, nonprofit entity that 

23 receives a grant under subparagraph (A) shall 

24 submit to the Administrator a report that— 
33 

•S 1400 IS

1 ‘‘(i) describes the activities of the 

2 qualified private, nonprofit entity under 

3 this paragraph for the fiscal year; and 

4 ‘‘(ii) specifies— 

5 ‘‘(I) the number of communities 

6 served; 

7 ‘‘(II) the sizes of those commu8 nities; and 

9 ‘‘(III) the type of financing pro10 vided by the qualified private, non11 profit entity. 

12 ‘‘(F) AUTHORIZATION OF APPROPRIA13 TIONS.—There is authorized to be appropriated 

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

15 each of fiscal years 2006 through 2010.’’. 

16 SEC. 209. STUDY ON LEAD CONTAMINATION IN DRINKING 

17 WATER. 

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

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

20 Environmental Protection Agency shall enter into a coop21 erative agreement with the National Academy of Sciences 

22 to carry out a study to analyze existing market conditions 

23 for plumbing components, including pipes, faucets, water 

24 meters, valves, household valves, and any other plumbing 
34 

•S 1400 IS

1 components that come into contact with water commonly 

2 used 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 relative market share of the plumbing 

12 components; 

13 (3) the relative cost of the plumbing compo14 nents; 

15 (4) the issues surrounding transition from cur16 rent market to plumbing components with not more 

17 than 0.2 percent lead; 

18 (5) the feasibility of manufacturing plumbing 

19 components with lead levels below 8 percent; and 

20 (6) the use of lead alternatives in plumbing 

21 components with lead levels below 8 percent. 

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

23 enactment of this Act, the National Academy of Sciences 

24 shall submit to the Committee on Environment and Public 

25 Works of the Senate and the Committee on Energy and 
35 

•S 1400 IS

1 Commerce of the House of Representatives a report de2 scribing the findings of the study under this section. 

3 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated to carry out this section 

5 $500,000. 

6 SEC. 210. DISTRICT OF COLUMBIA LEAD SERVICE LINE RE7 PLACEMENT. 

8 (a) AUTHORIZATION OF APPROPRIATIONS.—There is 

9 authorized to be appropriated to carry out lead service line 

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

11 each of fiscal years 2007 through 2011. 

12 (b) LEAD SERVICE LINE REPLACEMENT ASSISTANCE

13 FUND.— 

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

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

16 may be allocated for water service line replacement 

17 grants to provide assistance to low-income residents 

18 to replace the privately-owned portion of lead service 

19 lines. 

20 (2) LIMITATION.—Individual grants shall be 

21 limited to not more than $5,000. 

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

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

24 shall be defined by the District of Columbia. 
36 

•S 1400 IS

1 TITLE III—MISCELLANEOUS 

2 SEC. 301. DEFINITIONS. 

3 In this title: 

4 (1) ADMINISTRATOR.—The term ‘‘Adminis5 trator’’ means the Administrator of the Environ6 mental Protection Agency. 

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

8 the Secretary of the Interior, acting through the Di9 rector of the United States Geological Survey. 

10 SEC. 302. DEMONSTRATION GRANT PROGRAM FOR WATER 

11 QUALITY ENHANCEMENT AND MANAGEMENT. 

12 (a) ESTABLISHMENT.— 

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

14 the date of enactment of this Act, the Administrator 

15 shall establish a nationwide demonstration grant 

16 program to— 

17 (A) promote innovations in technology and 

18 alternative approaches to water quality manage19 ment or water supply; or 

20 (B) reduce costs to municipalities incurred 

21 in complying with— 

22 (i) the Federal Water Pollution Con23 trol Act (33 U.S.C. 1251 et seq.); and 

24 (ii) the Safe Drinking Water Act (42 

25 U.S.C. 300f et seq.). 
37 

•S 1400 IS

1 (2) SCOPE.—The demonstration grant program 

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

3 out in municipalities selected by the Administrator 

4 under subsection (b). 

5 (b) SELECTION OF MUNICIPALITIES.— 

6 (1) APPLICATION.—A municipality that seeks 

7 to participate in the demonstration grant program 

8 shall submit to the Administrator a plan that— 

9 (A) is developed in coordination with— 

10 (i) the agency of the State having ju11 risdiction over water quality or water sup12 ply matters; and 

13 (ii) interested stakeholders; 

14 (B) describes water impacts specific to 

15 urban or rural areas; 

16 (C) includes a strategy under which the 

17 municipality, through participation in the dem18 onstration grant program, could effectively— 

19 (i) address water quality or water 

20 supply problems; and 

21 (ii) achieve the water quality goals 

22 that— 

23 (I) could be achieved using more 

24 traditional methods; and 

25 (II) are required under— 
38 

•S 1400 IS

1 (aa) the Federal Water Pol2 lution Control Act (33 U.S.C. 

3 1251 et seq.); or 

4 (bb) the Safe Drinking 

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

6 seq.); and 

7 (D) includes a schedule for achieving the 

8 water quality or water supply goals of the mu9 nicipality. 

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

11 demonstration grant program, the Administrator 

12 shall provide grants for projects relating to water 

13 supply or water quality matters such as— 

14 (A) excessive nutrient growth; 

15 (B) urban or rural population pressure; 

16 (C) lack of an alternative water supply; 

17 (D) difficulties in water conservation and 

18 efficiency; 

19 (E) lack of support tools and technologies 

20 to rehabilitate and replace water supplies; 

21 (F) lack of monitoring and data analysis 

22 for water distribution systems; 

23 (G) nonpoint source water pollution (in24 cluding stormwater); 

25 (H) sanitary overflows; 
39 

•S 1400 IS

1 (I) combined sewer overflows; 

2 (J) problems with naturally occurring con3 stituents of concern; 

4 (K) problems with erosion and excess sedi5 ment; 

6 (L) new approaches to water treatment, 

7 distribution, and collection systems; and 

8 (M) new methods for collecting and treat9 ing wastewater (including system design and 

10 nonstructural alternatives). 

11 (3) RESPONSIBILITIES OF ADMINISTRATOR.—In 

12 providing grants for projects under this subsection, 

13 the Administrator shall— 

14 (A) ensure, to the maximum extent prac15 ticable, that— 

16 (i) the demonstration program in17 cludes a variety of projects with respect 

18 to— 

19 (I) geographic distribution; 

20 (II) innovative technologies used 

21 for the projects; and 

22 (III) nontraditional approaches 

23 (including low-impact development 

24 technologies) used for the projects; 

25 and 
40 

•S 1400 IS

1 (ii) each category of project described 

2 in paragraph (2) is adequately represented; 

3 (B) give higher priority to projects that— 

4 (i) address multiple problems; and 

5 (ii) are regionally applicable; 

6 (C) ensure, to the maximum extent prac7 ticable, that at least 1 community having a pop8 ulation of 10,000 or fewer individuals receives 

9 a grant for each fiscal year; and 

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

11 municipality receives more than 25 percent of 

12 the total amount of funds made available for 

13 the fiscal year to provide grants under this sec14 tion. 

15 (4) COST SHARING.— 

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

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

18 total cost of a project funded by a grant under 

19 this section shall be not less than 20 percent. 

20 (B) WAIVER.—The Administrator may re21 duce or eliminate the non-Federal share of the 

22 cost of a project for reasons of affordability. 

23 (c) REPORTS.— 

24 (1) REPORTS FROM GRANT RECIPIENTS.—A re25 cipient of a grant under this section shall submit to 
41 

•S 1400 IS

1 the Administrator, on the date of completion of a 

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

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

4 describes the effectiveness of the project. 

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

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

7 every 2 years thereafter, the Administrator shall 

8 submit to the Committee on Environment and Pub9 lic Works of the Senate and the Committee on 

10 Transportation and Infrastructure and the Com11 mittee on Energy and Commerce of the House of 

12 Representatives a report that describes the status 

13 and results of the demonstration program. 

14 (d) INCORPORATION OF RESULTS AND INFORMA15 TION.—To the maximum extent practicable, the Adminis16 trator shall incorporate the results of, and information ob17 tained from, successful projects under this section into 

18 programs administered by the Administrator. 

19 (e) RESEARCH AND DEVELOPMENT.— 

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

21 the date of enactment of this Act, the Administrator 

22 shall, through a competitive process, award grants 

23 and enter into contracts and cooperative agreements 

24 with research institutions, educational institutions, 

25 and other appropriate entities (including consortia of 
42 

•S 1400 IS

1 such institutions and entities) for research and de2 velopment on the use of innovative and alternative 

3 technologies to improve water quality or drinking 

4 water supply. 

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

6 subsection, the Administrator may select projects re7 lating to such matters as innovative or alternative 

8 technologies, approaches, practices, or methods— 

9 (A) to increase the effectiveness and effi10 ciency of public water supply systems, includ11 ing— 

12 (i) source water protection; 

13 (ii) water use reduction; 

14 (iii) water reuse; 

15 (iv) water treatment; 

16 (v) water distribution and collection 

17 systems; and 

18 (vi) water security; 

19 (B) to encourage the use of innovative or 

20 alternative technologies or approaches relating 

21 to water supply or availability; 

22 (C) to increase the effectiveness and effi23 ciency of new and existing treatment works, in24 cluding— 
43 

•S 1400 IS

1 (i) methods of collecting, treating, dis2 persing, reusing, reclaiming, and recycling 

3 wastewater; 

4 (ii) system design; 

5 (iii) nonstructural alternatives; 

6 (iv) decentralized approaches; 

7 (v) assessment; 

8 (vi) water efficiency; and 

9 (vii) wastewater security; 

10 (D) to increase the effectiveness and effi11 ciency of municipal separate storm sewer sys12 tems; 

13 (E) to promote new water treatment tech14 nologies, including commercialization and dis15 semination strategies for adoption of innovative 

16 or alternative low impact development tech17 nologies in the homebuilding industry; or 

18 (F) to maintain a clearinghouse of tech19 nologies developed under this subsection and 

20 subsection (a) at a research consortium or insti21 tute. 

22 (3) AUTHORIZATION OF APPROPRIATIONS.— 

23 There is authorized to be appropriated to carry out 

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

25 2006 through 2010. 
44 

•S 1400 IS

1 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

2 authorized to be appropriated to carry out this section 

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

4 years 2006 through 2010. 

5 SEC. 303. AGRICULTURAL POLLUTION CONTROL TECH6 NOLOGY GRANT PROGRAM. 

7 (a) DEFINITIONS.—In this section: 

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

11 (2) AGRICULTURAL COMMODITY.—The term 

12 ‘‘agricultural commodity’’ means— 

13 (A) agricultural, horticultural, viticultural, 

14 and dairy products; 

15 (B) livestock and the products of livestock; 

16 (C) the products of poultry and bee rais17 ing; 

18 (D) the products of forestry; 

19 (E) other commodities raised or produced 

20 on agricultural sites, as determined to be appro21 priate by the Secretary; and 

22 (F) products processed or manufactured 

23 from products specified in subparagraphs (A) 

24 through (E), as determined by the Secretary. 
45 

•S 1400 IS

1 (3) AGRICULTURAL PROJECT.—The term ‘‘agri2 cultural project’’ means an agricultural pollution 

3 control technology project that, as determined by the 

4 Administrator— 

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

6 and 

7 (B) achieves demonstrable reductions in 

8 air and water pollution. 

9 (4) AGRICULTURAL SITE.—The term ‘‘agricul10 tural site’’ means a farming or ranching operation of 

11 a producer. 

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

13 any person who is engaged in the production and 

14 sale of an agricultural commodity in the United 

15 States and who owns, or shares the ownership and 

16 risk of loss of, the agricultural commodity. 

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

18 fund’’ means an agricultural pollution control tech19 nology State revolving fund established by a State 

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

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

22 the Secretary of Agriculture. 

23 (b) GRANTS FOR AGRICULTURAL STATE REVOLVING

24 FUNDS.— 
46 

•S 1400 IS

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

2 the date of enactment of this section, the Adminis3 trator shall provide to each eligible State described 

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

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

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

7 of the State having jurisdiction over agriculture or 

8 environmental quality, an agricultural pollution con9 trol technology State revolving fund. 

10 (2) ELIGIBLE STATES.—An eligible State re11 ferred to in paragraph (1) is a State that agrees, 

12 prior to receipt of a capitalization grant under para13 graph (1)— 

14 (A) to establish, and deposit the funds 

15 from the grant in, a revolving fund; 

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

17 share in an amount equal to 20 percent of the 

18 capitalization grant; 

19 (C) to use amounts in the revolving fund 

20 to make loans to producers in accordance with 

21 subsection (c); and 

22 (D) to return amounts in the revolving 

23 fund if no loan applications are granted within 

24 2 years of the receipt of the initial capitaliza25 tion grant. 
47 

•S 1400 IS

1 (c) LOANS TO PRODUCERS.— 

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

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

4 amounts in the revolving fund to provide loans to 

5 producers for use in designing and constructing ag6 ricultural projects. 

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

8 of a loan made to a producer using funds from a re9 volving fund shall not exceed $250,000, in the ag10 gregate, for all agricultural projects serving an agri11 cultural site of the producer. 

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

13 producer using funds from a revolving fund shall— 

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

15 than the market interest rate, including an in16 terest-free loan; and 

17 (B) be repaid to the revolving fund not 

18 later than 10 years after the date on which the 

19 loan is made. 

20 (d) REQUIREMENTS FOR PRODUCERS.— 

21 (1) IN GENERAL.—A producer that seeks to re22 ceive a loan from a revolving fund shall— 

23 (A) submit to the State in which the agri24 cultural site of the producer is located an appli25 cation that— 
48 

•S 1400 IS

1 (i) contains such information as the 

2 State may require; and 

3 (ii) demonstrates, to the satisfaction 

4 of the State, that each project proposed to 

5 be carried out with funds from the loan is 

6 an agricultural project; and 

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

8 in an expeditious and timely manner, as deter9 mined by the State. 

10 (2) MAXIMUM PERCENTAGE OF AGRICULTURAL

11 PROJECT COST.—Subject to subsection (c)(2), a pro12 ducer that receives a loan from a revolving fund may 

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

14 of the cost of carrying out an agricultural project. 

15 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

16 authorized to be appropriated to carry out this section 

17 $50,000,000. 

18 SEC. 304. STATE REVOLVING FUND REVIEW PROCESS. 

19 As soon as practicable after the date of enactment 

20 of this Act, the Administrator shall— 

21 (1) consult with States, utilities, and other Fed22 eral agencies providing financial assistance to iden23 tify ways to expedite and improve the application 

24 and review process for the provision of assistance 

25 from— 
49 

•S 1400 IS

1 (A) the State water pollution control re2 volving funds established under title VI of the 

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

4 1381 et seq.); and 

5 (B) the State drinking water treatment re6 volving loan funds established under section 

7 1452 of the Safe Drinking Water Act (42 

8 U.S.C. 300j–12); 

9 (2) take such administrative action as is nec10 essary to expedite and improve the process as the 

11 Administrator has authority to take under existing 

12 law; 

13 (3) collect information relating to innovative ap14 proaches taken by any State to simplify the applica15 tion process of the State, and provide the informa16 tion to each State; and 

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

18 the information identified under paragraph (1), con19 tains recommendations for legislation to facilitate 

20 further streamlining and improvement of the proc21 ess. 

22 SEC. 305. COST OF SERVICE STUDY. 

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

24 date of enactment of this Act, the Administrator shall 

25 enter into a contract with the National Academy of 
50 

•S 1400 IS

1 Sciences for, and the National Academy of Sciences shall 

2 complete and provide to the Administrator the results of, 

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

4 treatment works selected by the Academy in accordance 

5 with subsection (c) meet the costs associated with oper6 ations, maintenance, capital replacement, and regulatory 

7 requirements. 

8 (b) REQUIRED ELEMENTS.— 

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

10 minimum— 

11 (A) determine whether the rates at public 

12 water systems and treatment works for commu13 nities included in the study were established 

14 using a full-cost pricing model; 

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

16 used, identify any incentive rate systems that 

17 have been successful in significantly reducing— 

18 (i) per capita water demand; 

19 (ii) the volume of wastewater flows; 

20 (iii) the volume of stormwater runoff; 

21 or 

22 (iv) the quantity of pollution gen23 erated by stormwater; 
51 

•S 1400 IS

1 (C) identify a set of best industry practices 

2 that public water systems and treatment works 

3 may use in establishing a rate structure that— 

4 (i) adequately addresses the true cost 

5 of services provided to consumers by public 

6 water systems and treatment works, in7 cluding infrastructure replacement; 

8 (ii) encourages water conservation; 

9 and 

10 (iii) takes into consideration the needs 

11 of disadvantaged individuals and commu12 nities, as identified by the Administrator; 

13 (D) identify existing standards for afford14 ability; 

15 (E) determine the manner in which those 

16 standards are determined and defined; 

17 (F) determine the manner in which afford18 ability varies with respect to communities of 

19 different sizes and in different regions; and 

20 (G) determine the extent to which afford21 ability affects the decision of a community to 

22 increase public water system and treatment 

23 works rates (including the decision relating to 

24 the percentage by which those rates should be 

25 increased). 
52 

•S 1400 IS

1 (2) DISADVANTAGED COMMUNITIES.—The 

2 study shall, at a minimum— 

3 (A) survey a cross-section of States rep4 resenting different sizes, demographics, and 

5 geographical regions; 

6 (B) describe, for each State described in 

7 subparagraph (A), the definition of ‘‘disadvan8 taged community’’ used in the State in carrying 

9 out projects and activities under the Safe 

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

11 (C) review other means of identifying the 

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

13 term applies to communities; 

14 (D) determine which factors and character15 istics are required for a community to be con16 sidered ‘‘disadvantaged’’; and 

17 (E) evaluate the degree to which factors 

18 such as a reduction in the tax base over a pe19 riod of time, a reduction in population, the loss 

20 of an industrial base, and the existence of areas 

21 of concentrated poverty are taken into account 

22 in determining whether a community is a dis23 advantaged community. 

24 (c) SELECTION OF COMMUNITIES.—The National 

25 Academy of Sciences shall select communities, the public 
53

•S 1400 IS

1 water system and treatment works rate structures of 

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

3 a cross-section of communities representing various popu4 lations, income levels, demographics, and geographical re5 gions. 

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

7 results of the study, the Administrator shall— 

8 (1) submit to Congress a report that describes 

9 the results of the study; and 

10 (2) make the results available to treatment 

11 works and public water systems for use by the pub12 licly owned treatment works and public water sys13 tems, on a voluntary basis, in determining whether 

14 1 or more new approaches may be implemented at 

15 facilities of the publicly owned treatment works and 

16 public water systems. 

17 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

18 authorized to be appropriated to carry out this section 

19 $1,000,000 for each of fiscal years 2006 and 2007. 

20 SEC. 306. WATER RESOURCES STUDY. 

21 (a) ASSESSMENT.— 

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

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

24 of enactment of this Act, conduct an assess-
54 

•S 1400 IS

1 ment of water resources in the United States; 

2 and 

3 (B) update the assessment every 2 years 

4 thereafter. 

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

6 minimum— 

7 (A) measure the status and trends of— 

8 (i) fresh water in rivers and res9 ervoirs; 

10 (ii) groundwater levels and volume of 

11 useable fresh water stored in aquifers; and 

12 (iii) fresh water withdrawn from 

13 streams and aquifers in the United States; 

14 and 

15 (B) provide those measurements for— 

16 (i) watersheds defined by the 352 hy17 drologic accounting units of the United 

18 States; and 

19 (ii) major aquifers of the United 

20 States, as identified by the Secretary. 

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

22 date of completion of the assessment and every 2 

23 years thereafter, the Secretary shall submit to Con24 gress a report— 
55 

•S 1400 IS

1 (A) describing the results of the assess2 ment; and 

3 (B) containing any recommendations of 

4 the Secretary relating to the assessment that— 

5 (i) are consistent with existing laws, 

6 treaties, decrees, and interstate compacts; 

7 and 

8 (ii) respect the primary role of States 

9 in adjudicating, administering, and regu10 lating water rights and uses. 

11 (b) WATER RESOURCE RESEARCH PRIORITIES.— 

12 (1) IN GENERAL.—The Secretary shall coordi13 nate a process among Federal agencies and appro14 priate State agencies to develop and publish, not 

15 later than 1 year after the date of enactment of this 

16 Act, a list of water resource research priorities that 

17 focuses on— 

18 (A) water supply monitoring; 

19 (B) means of capturing excess water and 

20 flood water for conservation and use in the 

21 event of a drought; 

22 (C) strategies to conserve existing water 

23 supplies, including recommendations for repair24 ing aging infrastructure; 
56 

•S 1400 IS

1 (D) identifying incentives to ensure an 

2 adequate and dependable supply of water; 

3 (E) identifying available technologies and 

4 other methods to optimize water supply reli5 ability, availability, and quality, while safe6 guarding the environment; and 

7 (F) improving the quality of water re8 source information available to State, tribal, 

9 and local water resource managers. 

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

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

12 a guide in making decisions on the allocation of 

13 water research funding. 

14 (c) INFORMATION DELIVERY SYSTEM.— 

15 (1) IN GENERAL.—The Secretary shall coordi16 nate a process to develop an effective information 

17 delivery system to communicate information de18 scribed in paragraph (2) to— 

19 (A) decisionmakers at the Federal, re20 gional, State, tribal, and local levels; 

21 (B) the private sector; and 

22 (C) the general public. 

23 (2) TYPES OF INFORMATION.—The information 

24 referred to in paragraph (1) may include— 
57 

•S 1400 IS

1 (A) the results of the national water re2 source assessments under subsection (a); 

3 (B) a summary of the Federal water re4 search priorities developed under subsection (b); 

5 (C) near real-time data and other informa6 tion on water shortages and surpluses; 

7 (D) planning models for water shortages or 

8 surpluses (at various levels including State, 

9 river basin, and watershed levels); 

10 (E) streamlined procedures for States and 

11 localities to interact with and obtain assistance 

12 from Federal agencies that perform water re13 source functions; and 

14 (F) other water resource materials, as the 

15 Secretary determine appropriate. 

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

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

18 thereafter through fiscal year 2009, the Secretary shall 

19 submit to Congress a report on the implementation of this 

20 section. 

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

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

23 otherwise affects in any way— 
58 

•S 1400 IS

1 (A) any right or jurisdiction of any State 

2 with respect to the water (including boundary 

3 water) of the State; 

4 (B) the authority of any State to allocate 

5 quantities of water within areas under the juris6 diction of the State; or 

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

8 use of water that has been adjudicated, allo9 cated, or claimed— 

10 (i) in accordance with State law; 

11 (ii) in accordance with subsections (a) 

12 through (c) of section 208 of the Depart13 ment of Justice Appropriation Act, 1953 

14 (43 U.S.C. 666); 

15 (iii) by or pursuant to an interstate 

16 compact; or 

17 (iv) by a decision of the United States 

18 Supreme Court; 

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

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

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

22 or 

23 (3) requires modifying the delivery, diversion, 

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

25 storage of any water to be delivered by contract. 
59 

•S 1400 IS

1 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated— 

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

4 section, $3,000,000, to remain available until ex5 pended; and 

6 (2) to carry out the updates authorized by sub7 section (a)(1)(B), such sums as are necessary. 

Æ