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[104th Congress Public Law 182]
[From the U.S. Government Printing Office]

<DOC>
[DOCID: f:publ182.104]

[[Page 110 STAT. 1613]]

Public Law 104-182
104th Congress

                                 An Act

 
  To reauthorize and amend title XIV of the Public Health Service Act 
   (commonly known as the ``Safe Drinking Water Act''), and for other 
             purposes. <<NOTE:  Aug. 6, 1996 -  [S. 1316]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Safe Drinking Water Act 
Amendments of 1996. Inter-governmental relations. Environmental 
protection.>> assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) <<NOTE: 42 USC 201 note.>> Short Title.--This Act may be cited 
as the ``Safe Drinking Water Act Amendments of 1996''.

    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. References; effective date; disclaimer.
Sec. 3. Findings.

             TITLE I--AMENDMENTS TO SAFE DRINKING WATER ACT

Sec. 101. Definitions.
Sec. 102. General authority.
Sec. 103. Risk assessment, management, and communication.
Sec. 104. Standard-setting.
Sec. 105. Treatment technologies for small systems.
Sec. 106. Limited alternative to filtration.
Sec. 107. Ground water disinfection.
Sec. 108. Effective date for regulations.
Sec. 109. Arsenic, sulfate, and radon.
Sec. 110. Recycling of filter backwash.
Sec. 111. Technology and treatment techniques.
Sec. 112. State primacy.
Sec. 113. Enforcement; judicial review.
Sec. 114. Public notification.
Sec. 115. Variances.
Sec. 116. Small systems variances.
Sec. 117. Exemptions.
Sec. 118. Lead plumbing and pipes.
Sec. 119. Capacity development.
Sec. 120. Authorization of appropriations for certain ground water 
           programs.
Sec. 121. Amendments to section 1442.
Sec. 122. Technical assistance.
Sec. 123. Operator certification.
Sec. 124. Public water system supervision program.
Sec. 125. Monitoring and information gathering.
Sec. 126. Occurrence data base.
Sec. 127. Drinking Water Advisory Council.
Sec. 128. New York City watershed protection program.
Sec. 129. Federal agencies.
Sec. 130. State revolving loan funds.
Sec. 131. State ground water protection grants.
Sec. 132. Source water assessment.
Sec. 133. Source water petition program.
Sec. 134. Water conservation plan.
Sec. 135. Drinking water assistance to colonias.
Sec. 136. Estrogenic substances screening program.
Sec. 137. Drinking water studies.

                    TITLE II--DRINKING WATER RESEARCH

Sec. 201. Drinking water research authorization.

[[Page 110 STAT. 1614]]

Sec. 202. Scientific research review.
Sec. 203. National center for ground water research.

                   TITLE III--MISCELLANEOUS PROVISIONS

Sec. 301. Water return flows.
Sec. 302  Transfer of funds.
Sec. 303. Grants to Alaska to improve sanitation in rural and Native 
           villages.
Sec. 304. Sense of the Congress.
Sec. 305. Bottled drinking water standards.
Sec. 306. Washington Aqueduct.
Sec. 307. Wastewater assistance to colonias.
Sec. 308. Prevention and control of zebra mussel infestation of Lake 
           Champlain.

 TITLE IV--ADDITIONAL ASSISTANCE FOR WATER INFRASTRUCTURE AND WATERSHEDS

Sec. 401. National program.

                      TITLE V--CLERICAL AMENDMENTS

Sec. 501. Clerical amendments.

SEC. 2. REFERENCES; EFFECTIVE DATE; DISCLAIMER.

    (a) References to Safe Drinking Water Act.--Except as otherwise 
expressly provided, whenever in this Act an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to that section 
or other provision of title XIV of the Public Health Service Act 
(commonly known as the ``Safe Drinking Water Act'') (42 U.S.C. 300f et 
seq.).
    (b) <<NOTE: 42 USC 300f note.>> Effective Date.--Except as otherwise 
specified in this Act or in the amendments made by this Act, this Act 
and the amendments made by this Act shall take effect on the date of 
enactment of this Act.

    (c) <<NOTE: 42 USC 300f note.>> Disclaimer.--Except for the 
provisions of section 302 (relating to transfers of funds), nothing in 
this Act or in any amendments made by this Act to title XIV of the 
Public Health Service Act (commonly known as the ``Safe Drinking Water 
Act'') or any other law shall be construed by the Administrator of the 
Environmental Protection Agency or the courts as affecting, modifying, 
expanding, changing, or altering--
            (1) the provisions of the Federal Water Pollution Control 
        Act;
            (2) the duties and responsibilities of the Administrator 
        under that Act; or
            (3) the regulation or control of point or nonpoint sources 
        of pollution discharged into waters covered by that Act.

The Administrator shall identify in the agency's annual budget all 
funding and full-time equivalents administering such title XIV 
separately from funding and staffing for the Federal Water Pollution 
Control Act.

SEC. 3. <<NOTE: 42 USC 300f note.>> FINDINGS.

    The Congress finds that--
            (1) safe drinking water is essential to the protection of 
        public health;
            (2) because the requirements of the Safe Drinking Water Act 
        (42 U.S.C. 300f et seq.) now exceed the financial and technical 
        capacity of some public water systems, especially many small 
        public water systems, the Federal Government needs to provide 
        assistance to communities to help the communities meet Federal 
        drinking water requirements;

[[Page 110 STAT. 1615]]

            (3) the Federal Government commits to maintaining and 
        improving its partnership with the States in the administration 
        and implementation of the Safe Drinking Water Act;
            (4) States play a central role in the implementation of safe 
        drinking water programs, and States need increased financial 
        resources and appropriate flexibility to ensure the prompt and 
        effective development and implementation of drinking water 
        programs;
            (5) the existing process for the assessment and selection of 
        additional drinking water contaminants needs to be revised and 
        improved to ensure that there is a sound scientific basis for 
        setting priorities in establishing drinking water regulations;
            (6) procedures for assessing the health effects of 
        contaminants establishing drinking water standards should be 
        revised to provide greater opportunity for public education and 
        participation;
            (7) in considering the appropriate level of regulation for 
        contaminants in drinking water, risk assessment, based on sound 
        and objective science, and benefit-cost analysis are important 
        analytical tools for improving the efficiency and effectiveness 
        of drinking water regulations to protect human health;
            (8) more effective protection of public health requires--
                    (A) a Federal commitment to set priorities that will 
                allow scarce Federal, State, and local resources to be 
                targeted toward the drinking water problems of greatest 
                public health concern;
                    (B) maximizing the value of the different and 
                complementary strengths and responsibilities of the 
                Federal and State governments in those States that have 
                primary enforcement responsibility for the Safe Drinking 
                Water Act; and
                    (C) prevention of drinking water contamination 
                through well-trained system operators, water systems 
                with adequate managerial, technical, and financial 
                capacity, and enhanced protection of source waters of 
                public water systems;
            (9) compliance with the requirements of the Safe Drinking 
        Water Act continues to be a concern at public water systems 
        experiencing technical and financial limitations, and Federal, 
        State, and local governments need more resources and more 
        effective authority to attain the objectives of the Safe 
        Drinking Water Act; and
            (10) consumers served by public water systems should be 
        provided with information on the source of the water they are 
        drinking and its quality and safety, as well as prompt 
        notification of any violation of drinking water regulations.

             TITLE I--AMENDMENTS TO SAFE DRINKING WATER ACT

SEC. 101. DEFINITIONS.

    (a) In General.--Section 1401 (42 U.S.C. 300f) is amended as 
follows:
            (1) In paragraph (1)--
                    (A) in subparagraph (D), by inserting ``accepted 
                methods for'' before ``quality control''; and

[[Page 110 STAT. 1616]]

                    (B) <<NOTE: Federal Register, publication.>> by 
                adding at the end the following: ``At any time after 
                promulgation of a regulation referred to in this 
                paragraph, the Administrator may add equally effective 
                quality control and testing procedures by guidance 
                published in the Federal Register. Such procedures shall 
                be treated as an alternative for public water systems to 
                the quality control and testing procedures listed in the 
                regulation.''.
            (2) In paragraph (13)--
                    (A) by striking ``The'' and inserting ``(A) Except 
                as provided in subparagraph (B), the''; and
                    (B) by adding at the end the following:
            ``(B) For purposes of section 1452, the term `State' means 
        each of the 50 States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.''.
            (3) In paragraph (14), by adding at the end the following: 
        ``For purposes of section 1452, the term includes any Native 
        village (as defined in section 3(c) of the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1602(c))).''.
            (4) By adding at the end the following:
            ``(15) Community water system.--The term `community water 
        system' means a public water system that--
                    ``(A) serves at least 15 service connections used by 
                year-round residents of the area served by the system; 
                or
                    ``(B) regularly serves at least 25 year-round 
                residents.
            ``(16) Noncommunity water system.--The term `noncommunity 
        water system' means a public water system that is not a 
        community water system.''.

    (b) Public Water System.--
            (1) In general.--Section 1401(4) (42 U.S.C. 300f(4)) is 
        amended as follows:
                    (A) In the first sentence, by striking ``piped water 
                for human consumption'' and inserting ``water for human 
                consumption through pipes or other constructed 
                conveyances''.
                    (B) By redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively.
                    (C) By striking ``(4) The'' and inserting the 
                following:
            ``(4) Public water system.--
                    ``(A) In general.--The''; and
                    (D) by adding at the end the following:
                    ``(B) Connections.--
                          ``(i) In general.--For purposes of 
                      subparagraph (A), a connection to a system that 
                      delivers water by a constructed conveyance other 
                      than a pipe shall not be considered a connection, 
                      if--
                                    ``(I) the water is used exclusively 
                                for purposes other than residential uses 
                                (consisting of drinking, bathing, and 
                                cooking, or other similar uses);
                                    ``(II) the Administrator or the 
                                State (in the case of a State exercising 
                                primary enforcement responsibility for 
                                public water systems) determines that 
                                alternative water to achieve the 
                                equivalent level of public health 
                                protection provided by the applicable 
                                national primary drinking water 
                                regulation is provided for residential 
                                or similar uses for drinking and 
                                cooking; or

[[Page 110 STAT. 1617]]

                                    ``(III) the Administrator or the 
                                State (in the case of a State exercising 
                                primary enforcement responsibility for 
                                public water systems) determines that 
                                the water provided for residential or 
                                similar uses for drinking, cooking, and 
                                bathing is centrally treated or treated 
                                at the point of entry by the provider, a 
                                pass-through entity, or the user to 
                                achieve the equivalent level of 
                                protection provided by the applicable 
                                national primary drinking water 
                                regulations.
                          ``(ii) Irrigation districts.--An irrigation 
                      district in existence prior to May 18, 1994, that 
                      provides primarily agricultural service through a 
                      piped water system with only incidental 
                      residential or similar use shall not be considered 
                      to be a public water system if the system or the 
                      residential or similar users of the system comply 
                      with subclause (II) or (III) of clause (i).
                    ``(C) Transition period.--A water supplier that 
                would be a public water system only as a result of 
                modifications made to this paragraph by the Safe 
                Drinking Water Act Amendments of 1996 shall not be 
                considered a public water system for purposes of the Act 
                until the date that is two years after the date of 
                enactment of this subparagraph. If a water supplier does 
                not serve 15 service connections (as defined in 
                subparagraphs (A) and (B)) or 25 people at any time 
                after the conclusion of the 2-year period, the water 
                supplier shall not be considered a public water 
                system.''.
            (2) <<NOTE: 42 USC 300f note.>> GAO study.--The Comptroller 
        General of the United States shall undertake a study to--
                    (A) ascertain the numbers and locations of 
                individuals and households relying for their residential 
                water needs, including drinking, bathing, and cooking 
                (or other similar uses) on irrigation water systems, 
                mining water systems, industrial water systems, or other 
                water systems covered by section 1401(4)(B) of the Safe 
                Drinking Water Act that are not public water systems 
                subject to the Safe Drinking Water Act;
                    (B) determine the sources and costs and 
                affordability (to users and systems) of water used by 
                such populations for their residential water needs; and
                    (C) review State and water system compliance with 
                the exclusion provisions of section 1401(4)(B) of such 
                Act.
        The <<NOTE: Reports.>> Comptroller General shall submit a report 
        to the Congress within 3 years after the date of enactment of 
        this Act containing the results of such study.

SEC. 102. GENERAL AUTHORITY.

    (a) Standards.--Section 1412(b) (42 U.S.C. 300g-1(b)) is amended by 
striking ``(b)(1)'' and all that follows through the end of paragraph 
(3) and inserting the following:
    ``(b) Standards.--
            ``(1) Identification of contaminants for listing.--
                    ``(A) <<NOTE: Publication. Regulations.>> General 
                authority.--The Administrator shall, in accordance with 
                the procedures established by this subsection, publish a 
                maximum contaminant level goal and

[[Page 110 STAT. 1618]]

                promulgate a national primary drinking water regulation 
                for a contaminant (other than a contaminant referred to 
                in paragraph (2) for which a national primary drinking 
                water regulation has been promulgated as of the date of 
                enactment of the Safe Drinking Water Act Amendments of 
                1996) if the Administrator determines that--
                          ``(i) the contaminant may have an adverse 
                      effect on the health of persons;
                          ``(ii) the contaminant is known to occur or 
                      there is a substantial likelihood that the 
                      contaminant will occur in public water systems 
                      with a frequency and at levels of public health 
                      concern; and
                          ``(iii) in the sole judgment of the 
                      Administrator, regulation of such contaminant 
                      presents a meaningful opportunity for health risk 
                      reduction for persons served by public water 
                      systems.
                    ``(B) Regulation of unregulated contaminants.--
                          ``(i) <<NOTE: Publication.>> Listing of 
                      contaminants for consideration.--(I) Not later 
                      than 18 months after the date of enactment of the 
                      Safe Drinking Water Act Amendments of 1996 and 
                      every 5 years thereafter, the Administrator, after 
                      consultation with the scientific community, 
                      including the Science Advisory Board, after notice 
                      and opportunity for public comment, and after 
                      considering the occurrence data base established 
                      under section 1445(g), shall publish a list of 
                      contaminants which, at the time of publication, 
                      are not subject to any proposed or promulgated 
                      national primary drinking water regulation, which 
                      are known or anticipated to occur in public water 
                      systems, and which may require regulation under 
                      this title.
                          ``(II) The unregulated contaminants considered 
                      under subclause (I) shall include, but not be 
                      limited to, substances referred to in section 
                      101(14) of the Comprehensive Environmental 
                      Response, Compensation, and Liability Act of 1980, 
                      and substances registered as pesticides under the 
                      Federal Insecticide, Fungicide, and Rodenticide 
                      Act.
                          ``(III) The Administrator's decision whether 
                      or not to select an unregulated contaminant for a 
                      list under this clause shall not be subject to 
                      judicial review.
                          ``(ii) Determination to regulate.--(I) Not 
                      later than 5 years after the date of enactment of 
                      the Safe Drinking Water Act Amendments of 1996, 
                      and every 5 years thereafter, the Administrator 
                      shall, after notice of the preliminary 
                      determination and opportunity for public comment, 
                      for not fewer than 5 contaminants included on the 
                      list published under clause (i), make 
                      determinations of whether or not to regulate such 
                      contaminants.
                          ``(II) A determination to regulate a 
                      contaminant shall be based on findings that the 
                      criteria of clauses (i), (ii), and (iii) of 
                      subparagraph (A) are satisfied. Such findings 
                      shall be based on the best available public health 
                      information, including the occurrence data base 
                      established under section 1445(g).

[[Page 110 STAT. 1619]]

                          ``(III) The Administrator may make a 
                      determination to regulate a contaminant that does 
                      not appear on a list under clause (i) if the 
                      determination to regulate is made pursuant to 
                      subclause (II).
                          ``(IV) A determination under this clause not 
                      to regulate a contaminant shall be considered 
                      final agency action and subject to judicial 
                      review.
                          ``(iii) Review.--Each document setting forth 
                      the determination for a contaminant under clause 
                      (ii) shall be available for public comment at such 
                      time as the determination is published.
                    ``(C) Priorities.--In selecting unregulated 
                contaminants for consideration under subparagraph (B), 
                the Administrator shall select contaminants that present 
                the greatest public health concern. The Administrator, 
                in making such selection, shall take into consideration, 
                among other factors of public health concern, the effect 
                of such contaminants upon subgroups that comprise a 
                meaningful portion of the general population (such as 
                infants, children, pregnant women, the elderly, 
                individuals with a history of serious illness, or other 
                subpopulations) that are identifiable as being at 
                greater risk of adverse health effects due to exposure 
                to contaminants in drinking water than the general 
                population.
                    ``(D) Urgent threats to public health.--The 
                Administrator may promulgate an interim national primary 
                drinking water regulation for a contaminant without 
                making a determination for the contaminant under 
                paragraph (4)(C), or completing the analysis under 
                paragraph (3)(C), to address an urgent threat to public 
                health as determined by the Administrator after 
                consultation with and written response to any comments 
                provided by the Secretary of Health and Human Services, 
                acting through the director of the Centers for Disease 
                Control and Prevention or the director of the National 
                Institutes of Health. <<NOTE: Publication.>> A 
                determination for any contaminant in accordance with 
                paragraph (4)(C) subject to an interim regulation under 
                this subparagraph shall be issued, and a completed 
                analysis meeting the requirements of paragraph (3)(C) 
                shall be published, not later than 3 years after the 
                date on which the regulation is promulgated and the 
                regulation shall be repromulgated, or revised if 
                appropriate, not later than 5 years after that date.
                    ``(E) <<NOTE: Publication.>> Regulation.--For each 
                contaminant that the Administrator determines to 
                regulate under subparagraph (B), the Administrator shall 
                publish maximum contaminant level goals and promulgate, 
                by rule, national primary drinking water regulations 
                under this subsection. The Administrator shall propose 
                the maximum contaminant level goal and national primary 
                drinking water regulation for a contaminant not later 
                than 24 months after the determination to regulate under 
                subparagraph (B), and may publish such proposed 
                regulation concurrent with the determination to 
                regulate. The Administrator shall publish a maximum 
                contaminant level goal and promulgate a national primary 
                drinking water regulation within 18 months after the 
                proposal thereof. <<NOTE: Federal Register, 
                publication.>> The Administrator, by notice in the

[[Page 110 STAT. 1620]]

                Federal Register, may extend the deadline for such 
                promulgation for up to 9 months.
                    ``(F) Health advisories and other actions.--The 
                Administrator may publish health advisories (which are 
                not regulations) or take other appropriate actions for 
                contaminants not subject to any national primary 
                drinking water regulation.
            ``(2) Schedules and deadlines.--
                    ``(A) <<NOTE: Publication. Regulations.>> In 
                general.--In the case of the contaminants listed in the 
                Advance Notice of Proposed Rulemaking published in 
                volume 47, Federal Register, page 9352, and in volume 
                48, Federal Register, page 45502, the Administrator 
                shall publish maximum contaminant level goals and 
                promulgate national primary drinking water regulations--
                          ``(i) not later than 1 year after June 19, 
                      1986, for not fewer than 9 of the listed 
                      contaminants;
                          ``(ii) not later than 2 years after June 19, 
                      1986, for not fewer than 40 of the listed 
                      contaminants; and
                          ``(iii) not later than 3 years after June 19, 
                      1986, for the remainder of the listed 
                      contaminants.
                    ``(B) Substitution of contaminants.--If the 
                Administrator identifies a drinking water contaminant 
                the regulation of which, in the judgment of the 
                Administrator, is more likely to be protective of public 
                health (taking into account the schedule for regulation 
                under subparagraph (A)) than a contaminant referred to 
                in subparagraph (A), the Administrator may publish a 
                maximum contaminant level goal and promulgate a national 
                primary drinking water regulation for the identified 
                contaminant in lieu of regulating the contaminant 
                referred to in subparagraph (A). Substitutions may be 
                made for not more than 7 contaminants referred to in 
                subparagraph (A). Regulation of a contaminant identified 
                under this subparagraph shall be in accordance with the 
                schedule applicable to the contaminant for which the 
                substitution is made.
                    ``(C) <<NOTE: Rules.>> Disinfectants and 
                disinfection byproducts.--The Administrator shall 
                promulgate an Interim Enhanced Surface Water Treatment 
                Rule, a Final Enhanced Surface Water Treatment Rule, a 
                Stage I Disinfectants and Disinfection Byproducts Rule, 
                and a Stage II Disinfectants and Disinfection Byproducts 
                Rule in accordance with the schedule published in volume 
                59, Federal Register, page 6361 (February 10, 1994), in 
                table III.13 of the proposed Information Collection 
                Rule. If a delay occurs with respect to the promulgation 
                of any rule in the schedule referred to in this 
                subparagraph, all subsequent rules shall be completed as 
                expeditiously as practicable but no later than a revised 
                date that reflects the interval or intervals for the 
                rules in the schedule.''.

    (b) <<NOTE: 42 USC 300g-1 note.>> Applicability of Prior 
Requirements.--The requirements of subparagraphs (C) and (D) of section 
1412(b)(3) of the Safe Drinking Water Act as in effect before the date 
of enactment of this Act, and any obligation to promulgate regulations 
pursuant to such subparagraphs not promulgated as of the date of 
enactment of this Act, are superseded by the amendments made by 
subsection (a).

[[Page 110 STAT. 1621]]

    (c) Conforming Amendments.--(1) Section 1415(d) (42 U.S.C. 300g-
4(d)) is amended by striking ``1412(b)(3)'' and inserting ``1412(b)''.
    (2) Section 1412(a)(3) (42 U.S.C. 300g-1(a)(3)) is amended by 
striking ``paragraph (1), (2), or (3) of'' in each place it appears.

SEC. 103. RISK ASSESSMENT, MANAGEMENT, AND COMMUNICATION.

    Section 1412(b) (42 U.S.C. 300g-1(b)) is amended by inserting after 
paragraph (2) the following:
            ``(3) Risk assessment, management, and communication.--
                    ``(A) Use of science in decisionmaking.--In carrying 
                out this section, and, to the degree that an Agency 
                action is based on science, the Administrator shall 
                use--
                          ``(i) the best available, peer-reviewed 
                      science and supporting studies conducted in 
                      accordance with sound and objective scientific 
                      practices; and
                          ``(ii) data collected by accepted methods or 
                      best available methods (if the reliability of the 
                      method and the nature of the decision justifies 
                      use of the data).
                    ``(B) Public information.--In carrying out this 
                section, the Administrator shall ensure that the 
                presentation of information on public health effects is 
                comprehensive, informative, and understandable. The 
                Administrator shall, in a document made available to the 
                public in support of a regulation promulgated under this 
                section, specify, to the extent practicable--
                          ``(i) each population addressed by any 
                      estimate of public health effects;
                          ``(ii) the expected risk or central estimate 
                      of risk for the specific populations;
                          ``(iii) each appropriate upper-bound or lower-
                      bound estimate of risk;
                          ``(iv) each significant uncertainty identified 
                      in the process of the assessment of public health 
                      effects and studies that would assist in resolving 
                      the uncertainty; and
                          ``(v) peer-reviewed studies known to the 
                      Administrator that support, are directly relevant 
                      to, or fail to support any estimate of public 
                      health effects and the methodology used to 
                      reconcile inconsistencies in the scientific data.
                    ``(C) Health risk reduction and cost analysis.--
                          ``(i) <<NOTE: Publication.>> Maximum 
                      contaminant levels.--When proposing any national 
                      primary drinking water regulation that includes a 
                      maximum contaminant level, the Administrator 
                      shall, with respect to a maximum contaminant level 
                      that is being considered in accordance with 
                      paragraph (4) and each alternative maximum 
                      contaminant level that is being considered 
                      pursuant to paragraph (5) or (6)(A), publish, seek 
                      public comment on, and use for the purposes of 
                      paragraphs (4), (5), and (6) an analysis of each 
                      of the following:
                                    ``(I) Quantifiable and 
                                nonquantifiable health risk reduction 
                                benefits for which there is a factual 
                                basis in the rulemaking record to 
                                conclude that

[[Page 110 STAT. 1622]]

                                such benefits are likely to occur as the 
                                result of treatment to comply with each 
                                level.
                                    ``(II) Quantifiable and 
                                nonquantifiable health risk reduction 
                                benefits for which there is a factual 
                                basis in the rulemaking record to 
                                conclude that such benefits are likely 
                                to occur from reductions in co-occurring 
                                contaminants that may be attributed 
                                solely to compliance with the maximum 
                                contaminant level, excluding benefits 
                                resulting from compliance with other 
                                proposed or promulgated regulations.
                                    ``(III) Quantifiable and 
                                nonquantifiable costs for which there is 
                                a factual basis in the rulemaking record 
                                to conclude that such costs are likely 
                                to occur solely as a result of 
                                compliance with the maximum contaminant 
                                level, including monitoring, treatment, 
                                and other costs and excluding costs 
                                resulting from compliance with other 
                                proposed or promulgated regulations.
                                    ``(IV) The incremental costs and 
                                benefits associated with each 
                                alternative maximum contaminant level 
                                considered.
                                    ``(V) The effects of the contaminant 
                                on the general population and on groups 
                                within the general population such as 
                                infants, children, pregnant women, the 
                                elderly, individuals with a history of 
                                serious illness, or other subpopulations 
                                that are identified as likely to be at 
                                greater risk of adverse health effects 
                                due to exposure to contaminants in 
                                drinking water than the general 
                                population.
                                    ``(VI) Any increased health risk 
                                that may occur as the result of 
                                compliance, including risks associated 
                                with co-occurring contaminants.
                                    ``(VII) Other relevant factors, 
                                including the quality and extent of the 
                                information, the uncertainties in the 
                                analysis supporting subclauses (I) 
                                through (VI), and factors with respect 
                                to the degree and nature of the risk.
                          ``(ii) <<NOTE: Publication.>> Treatment 
                      techniques.--When proposing a national primary 
                      drinking water regulation that includes a 
                      treatment technique in accordance with paragraph 
                      (7)(A), the Administrator shall publish and seek 
                      public comment on an analysis of the health risk 
                      reduction benefits and costs likely to be 
                      experienced as the result of compliance with the 
                      treatment technique and alternative treatment 
                      techniques that are being considered, taking into 
                      account, as appropriate, the factors described in 
                      clause (i).
                          ``(iii) Approaches to measure and value 
                      benefits.--The Administrator may identify valid 
                      approaches for the measurement and valuation of 
                      benefits under this subparagraph, including 
                      approaches to identify consumer willingness to pay 
                      for reductions in health risks from drinking water 
                      contaminants.
                          ``(iv) Authorization.--There are authorized to 
                      be appropriated to the Administrator, acting 
                      through the Office of Ground Water and Drinking 
                      Water, to conduct

[[Page 110 STAT. 1623]]

                      studies, assessments, and analyses in support of 
                      regulations or the development of methods, 
                      $35,000,000 for each of fiscal years 1996 through 
                      2003.''.

SEC. 104. STANDARD-SETTING.

    (a) In General.--Section 1412(b) (42 U.S.C. 300g-1(b)) is amended as 
follows:
            (1) In paragraph (4)--
                    (A) by striking ``(4) Each'' and inserting the 
                following:
            ``(4) Goals and standards.--
                    ``(A) Maximum contaminant level goals.--Each'';
                    (B) in the last sentence--
                          (i) by striking ``Each national'' and 
                      inserting the following:
                    ``(B) Maximum contaminant levels.-- Except as 
                provided in paragraphs (5) and (6), each national''; and
                          (ii) by striking ``maximum level'' and 
                      inserting ``maximum contaminant level''; and
                    (C) by adding at the end the following:
                    ``(C) <<NOTE: Publication.>> Determination.--At the 
                time the Administrator proposes a national primary 
                drinking water regulation under this paragraph, the 
                Administrator shall publish a determination as to 
                whether the benefits of the maximum contaminant level 
                justify, or do not justify, the costs based on the 
                analysis conducted under paragraph (3)(C).''.
            (2) By striking ``(5) For the'' and inserting the following:
                    ``(D) Definition of feasible.--For the''.
            (3) In the second sentence of paragraph (4)(D) (as so 
        designated), by striking ``paragraph (4)'' and inserting ``this 
        paragraph''.
            (4) By striking ``(6) Each national'' and inserting the 
        following:
                    ``(E) Feasible technologies.--
                          ``(i) In general.--Each national''.
            (5) In paragraph (4)(E)(i) (as so designated), by striking 
        ``this paragraph'' and inserting ``this subsection''.
            (6) By inserting after paragraph (4) (as so amended) the 
        following:
            ``(5) Additional health risk considerations.--
                    ``(A) In general.--Notwithstanding paragraph (4), 
                the Administrator may establish a maximum contaminant 
                level for a contaminant at a level other than the 
                feasible level, if the technology, treatment techniques, 
                and other means used to determine the feasible level 
                would result in an increase in the health risk from 
                drinking water by--
                          ``(i) increasing the concentration of other 
                      contaminants in drinking water; or
                          ``(ii) interfering with the efficacy of 
                      drinking water treatment techniques or processes 
                      that are used to comply with other national 
                      primary drinking water regulations.
                    ``(B) Establishment of level.--If the Administrator 
                establishes a maximum contaminant level or levels or 
                requires the use of treatment techniques for any 
                contaminant or contaminants pursuant to the authority of 
                this paragraph--

[[Page 110 STAT. 1624]]

                          ``(i) the level or levels or treatment 
                      techniques shall minimize the overall risk of 
                      adverse health effects by balancing the risk from 
                      the contaminant and the risk from other 
                      contaminants the concentrations of which may be 
                      affected by the use of a treatment technique or 
                      process that would be employed to attain the 
                      maximum contaminant level or levels; and
                          ``(ii) the combination of technology, 
                      treatment techniques, or other means required to 
                      meet the level or levels shall not be more 
                      stringent than is feasible (as defined in 
                      paragraph (4)(D)).
            ``(6) Additional health risk reduction and cost 
        considerations.--
                    ``(A) In general.--Notwithstanding paragraph (4), if 
                the Administrator determines based on an analysis 
                conducted under paragraph (3)(C) that the benefits of a 
                maximum contaminant level promulgated in accordance with 
                paragraph (4) would not justify the costs of complying 
                with the level, the Administrator may, after notice and 
                opportunity for public comment, promulgate a maximum 
                contaminant level for the contaminant that maximizes 
                health risk reduction benefits at a cost that is 
                justified by the benefits.
                    ``(B) Exception.--The Administrator shall not use 
                the authority of this paragraph to promulgate a maximum 
                contaminant level for a contaminant, if the benefits of 
                compliance with a national primary drinking water 
                regulation for the contaminant that would be promulgated 
                in accordance with paragraph (4) experienced by--
                          ``(i) persons served by large public water 
                      systems; and
                          ``(ii) persons served by such other systems as 
                      are unlikely, based on information provided by the 
                      States, to receive a variance under section 
                      1415(e) (relating to small system variances);
                would justify the costs to the systems of complying with 
                the regulation. This subparagraph shall not apply if the 
                contaminant is found almost exclusively in small systems 
                eligible under section 1415(e) for a small system 
                variance.
                    ``(C) Disinfectants and disinfection byproducts.--
                The Administrator may not use the authority of this 
                paragraph to establish a maximum contaminant level in a 
                Stage I or Stage II national primary drinking water 
                regulation (as described in paragraph (2)(C)) for 
                contaminants that are disinfectants or disinfection 
                byproducts, or to establish a maximum contaminant level 
                or treatment technique requirement for the control of 
                cryptosporidium. The authority of this paragraph may be 
                used to establish regulations for the use of 
                disinfection by systems relying on ground water sources 
                as required by paragraph (8).
                    ``(D) Judicial review.--A determination by the 
                Administrator that the benefits of a maximum contaminant 
                level or treatment requirement justify or do not justify 
                the costs of complying with the level shall be reviewed 
                by the court pursuant to section 1448 only as part of a 
                review of a final national primary drinking water 
                regulation that has been promulgated based on the 
                determination

[[Page 110 STAT. 1625]]

                and shall not be set aside by the court under that 
                section unless the court finds that the determination is 
                arbitrary and capricious.''.

    (b) <<NOTE: 42 USC 300g-1 note.>> Disinfectants and Disinfection 
Byproducts.--The Administrator of the Environmental Protection Agency 
may use the authority of section 1412(b)(5) of the Safe Drinking Water 
Act (as amended by this Act) to promulgate the Stage I and Stage II 
Disinfectants and Disinfection Byproducts Rules as proposed in volume 
59, Federal Register, page 38668 (July 29, 1994). The considerations 
used in the development of the July 29, 1994, proposed national primary 
drinking water regulation on disinfectants and disinfection byproducts 
shall be treated as consistent with such section 1412(b)(5) for purposes 
of such Stage I and Stage II rules.

    (c) Review of Standards.--Section 1412(b)(9) (42 U.S.C. 300g-
1(b)(9)) is amended to read as follows:
            ``(9) Review and revision.--The Administrator shall, not 
        less often than every 6 years, review and revise, as 
        appropriate, each national primary drinking water regulation 
        promulgated under this title. Any revision of a national primary 
        drinking water regulation shall be promulgated in accordance 
        with this section, except that each revision shall maintain, or 
        provide for greater, protection of the health of persons.''.

SEC. 105. TREATMENT TECHNOLOGIES FOR SMALL SYSTEMS.

    Section 1412(b)(4)(E) (42 U.S.C. 300g-1(b)(4)(E)) is amended by 
adding at the end the following:
                          ``(ii) List of technologies for small 
                      systems.--The Administrator shall include in the 
                      list any technology, treatment technique, or other 
                      means that is affordable, as determined by the 
                      Administrator in consultation with the States, for 
                      small public water systems serving--
                                    ``(I) a population of 10,000 or 
                                fewer but more than 3,300;
                                    ``(II) a population of 3,300 or 
                                fewer but more than 500; and
                                    ``(III) a population of 500 or fewer 
                                but more than 25;
                      and that achieves compliance with the maximum 
                      contaminant level or treatment technique, 
                      including packaged or modular systems and point-
                      of-entry or point-of-use treatment units. Point-
                      of-entry and point-of-use treatment units shall be 
                      owned, controlled and maintained by the public 
                      water system or by a person under contract with 
                      the public water system to ensure proper operation 
                      and maintenance and compliance with the maximum 
                      contaminant level or treatment technique and 
                      equipped with mechanical warnings to ensure that 
                      customers are automatically notified of 
                      operational problems. The Administrator shall not 
                      include in the list any point-of-use treatment 
                      technology, treatment technique, or other means to 
                      achieve compliance with a maximum contaminant 
                      level or treatment technique requirement for a 
                      microbial contaminant (or an indicator of a 
                      microbial contaminant). If the American National 
                      Standards Institute

[[Page 110 STAT. 1626]]

                      has issued product standards applicable to a 
                      specific type of point-of-entry or point-of-use 
                      treatment unit, individual units of that type 
                      shall not be accepted for compliance with a 
                      maximum contaminant level or treatment technique 
                      requirement unless they are independently 
                      certified in accordance with such standards. In 
                      listing any technology, treatment technique, or 
                      other means pursuant to this clause, the 
                      Administrator shall consider the quality of the 
                      source water to be treated.
                          ``(iii) List of technologies that achieve 
                      compliance.--Except as provided in clause (v), not 
                      later than 2 years after the date of enactment of 
                      this clause and after consultation with the 
                      States, the Administrator shall issue a list of 
                      technologies that achieve compliance with the 
                      maximum contaminant level or treatment technique 
                      for each category of public water systems 
                      described in subclauses (I), (II), and (III) of 
                      clause (ii) for each national primary drinking 
                      water regulation promulgated prior to the date of 
                      enactment of this paragraph.
                          ``(iv) Additional technologies.--The 
                      Administrator may, at any time after a national 
                      primary drinking water regulation has been 
                      promulgated, supplement the list of technologies 
                      describing additional or new or innovative 
                      treatment technologies that meet the requirements 
                      of this paragraph for categories of small public 
                      water systems described in subclauses (I), (II), 
                      and (III) of clause (ii) that are subject to the 
                      regulation.
                          ``(v) <<NOTE: Records.>> Technologies that 
                      meet surface water treatment rule.--Within one 
                      year after the date of enactment of this clause, 
                      the Administrator shall list technologies that 
                      meet the Surface Water Treatment Rule for each 
                      category of public water systems described in 
                      subclauses (I), (II), and (III) of clause (ii).''.

SEC. 106. LIMITED ALTERNATIVE TO FILTRATION.

    Section 1412(b)(7)(C) (42 U.S.C. 300g-1(b)(7)(C)) is amended by 
adding the following after clause (iv):
    ``(v) As an additional alternative to the regulations promulgated 
pursuant to clauses (i) and (iii), including the criteria for avoiding 
filtration contained in 40 CFR 141.71, a State exercising primary 
enforcement responsibility for public water systems may, on a case-by-
case basis, and after notice and opportunity for public comment, 
establish treatment requirements as an alternative to filtration in the 
case of systems having uninhabited, undeveloped watersheds in 
consolidated ownership, and having control over access to, and 
activities in, those watersheds, if the State determines (and the 
Administrator concurs) that the quality of the source water and the 
alternative treatment requirements established by the State ensure 
greater removal or inactivation efficiencies of pathogenic organisms for 
which national primary drinking water regulations have been promulgated 
or that are of public health concern than would be achieved by the 
combination of filtration and chlorine disinfection (in compliance with 
this section).''.

[[Page 110 STAT. 1627]]

SEC. 107. <<NOTE: Regulations.>> GROUND WATER DISINFECTION.

    Paragraph (8) of section 1412(b) (42 U.S.C. 300g-1(b)(8)) is amended 
by moving the margins of such paragraph 2 ems to the right and by 
striking the first sentence and inserting the following: 
``Disinfection.--At any time after the end of the 3-year period that 
begins on the date of enactment of the Safe Drinking Water Act 
Amendments of 1996, but not later than the date on which the 
Administrator promulgates a Stage II rulemaking for disinfectants and 
disinfection byproducts (as described in paragraph (2)(C)), the 
Administrator shall also promulgate national primary drinking water 
regulations requiring disinfection as a treatment technique for all 
public water systems, including surface water systems and, as necessary, 
ground water systems. After consultation with the States, the 
Administrator shall (as part of the regulations) promulgate criteria 
that the Administrator, or a State that has primary enforcement 
responsibility under section 1413, shall apply to determine whether 
disinfection shall be required as a treatment technique for any public 
water system served by ground water.''.

SEC. 108. EFFECTIVE DATE FOR REGULATIONS.

    Section 1412(b)(10) (42 U.S.C. 300g-1(b)(10)) is amended to read as 
follows:
            ``(10) Effective date.--A national primary drinking water 
        regulation promulgated under this section (and any amendment 
        thereto) shall take effect on the date that is 3 years after the 
        date on which the regulation is promulgated unless the 
        Administrator determines that an earlier date is practicable, 
        except that the Administrator, or a State (in the case of an 
        individual system), may allow up to 2 additional years to comply 
        with a maximum contaminant level or treatment technique if the 
        Administrator or State (in the case of an individual system) 
        determines that additional time is necessary for capital 
        improvements.''.

SEC. 109. ARSENIC, SULFATE, AND RADON.

    (a) Arsenic and Sulfate.--Section 1412(b) (42 U.S.C. 300g-1(b)) is 
amended by inserting after paragraph (11) the following:
            ``(12) Certain contaminants.--
                    ``(A) Arsenic.--
                          ``(i) Schedule and standard.--Notwithstanding 
                      the deadlines set forth in paragraph (1), the 
                      Administrator shall promulgate a national primary 
                      drinking water regulation for arsenic pursuant to 
                      this subsection, in accordance with the schedule 
                      established by this paragraph.
                          ``(ii) Study plan.--Not later than 180 days 
                      after the date of enactment of this paragraph, the 
                      Administrator shall develop a comprehensive plan 
                      for study in support of drinking water rulemaking 
                      to reduce the uncertainty in assessing health 
                      risks associated with exposure to low levels of 
                      arsenic. In conducting such study, the 
                      Administrator shall consult with the National 
                      Academy of Sciences, other Federal agencies, and 
                      interested public and private entities.
                          ``(iii) Cooperative agreements.--In carrying 
                      out the study plan, the Administrator may enter 
                      into cooperative agreements with other Federal 
                      agencies,

[[Page 110 STAT. 1628]]

                      State and local governments, and other interested 
                      public and private entities.
                          ``(iv) Proposed regulations.--The 
                      Administrator shall propose a national primary 
                      drinking water regulation for arsenic not later 
                      than January 1, 2000.
                          ``(v) Final regulations.--Not later than 
                      January 1, 2001, after notice and opportunity for 
                      public comment, the Administrator shall promulgate 
                      a national primary drinking water regulation for 
                      arsenic.
                          ``(vi) Authorization.--There are authorized to 
                      be appropriated $2,500,000 for each of fiscal 
                      years 1997 through 2000 for the studies required 
                      by this paragraph.
                    ``(B) Sulfate.--
                          ``(i) Additional study.--Prior to promulgating 
                      a national primary drinking water regulation for 
                      sulfate, the Administrator and the Director of the 
                      Centers for Disease Control and Prevention shall 
                      jointly conduct an additional study to establish a 
                      reliable dose-response relationship for the 
                      adverse human health effects that may result from 
                      exposure to sulfate in drinking water, including 
                      the health effects that may be experienced by 
                      groups within the general population (including 
                      infants and travelers) that are potentially at 
                      greater risk of adverse health effects as the 
                      result of such exposure. The study shall be 
                      conducted in consultation with interested States, 
                      shall be based on the best available, peer-
                      reviewed science and supporting studies conducted 
                      in accordance with sound and objective scientific 
                      practices, and shall be completed not later than 
                      30 months after the date of enactment of the Safe 
                      Drinking Water Act Amendments of 1996.
                    ``(ii) Determination.--The Administrator shall 
                include sulfate among the 5 or more contaminants for 
                which a determination is made pursuant to paragraph 
                (3)(B) not later than 5 years after the date of 
                enactment of the Safe Drinking Water Act Amendments of 
                1996.
                    ``(iii) Proposed and final rule.--Notwithstanding 
                the deadlines set forth in paragraph (2), the 
                Administrator may, pursuant to the authorities of this 
                subsection and after notice and opportunity for public 
                comment, promulgate a final national primary drinking 
                water regulation for sulfate. Any such regulation shall 
                include requirements for public notification and options 
                for the provision of alternative water supplies to 
                populations at risk as a means of complying with the 
                regulation in lieu of a best available treatment 
                technology or other means.''.

    (b) Radon.--Section 1412(b) (42 U.S.C. 300g-1(b)) is amended by 
inserting after paragraph (12) the following:
            ``(13) Radon in drinking water.--
                    ``(A) National primary drinking water regulation.--
                Notwithstanding paragraph (2), the Administrator shall 
                withdraw any national primary drinking water regulation 
                for radon proposed prior to the date of enactment of 
                this paragraph and shall propose and promulgate a 
                regulation for radon under this section, as amended by 
                the Safe Drinking Water Act Amendments of 1996.

[[Page 110 STAT. 1629]]

                    ``(B) Risk assessment and studies.--
                          ``(i) Assessment by nas.--Prior to proposing a 
                      national primary drinking water regulation for 
                      radon, the Administrator shall arrange for the 
                      National Academy of Sciences to prepare a risk 
                      assessment for radon in drinking water using the 
                      best available science in accordance with the 
                      requirements of paragraph (3). The risk assessment 
                      shall consider each of the risks associated with 
                      exposure to radon from drinking water and consider 
                      studies on the health effects of radon at levels 
                      and under conditions likely to be experienced 
                      through residential exposure. The risk assessment 
                      shall be peer-reviewed.
                          ``(ii) Study of other measures.--The 
                      Administrator shall arrange for the National 
                      Academy of Sciences to prepare an assessment of 
                      the health risk reduction benefits associated with 
                      various mitigation measures to reduce radon levels 
                      in indoor air. The assessment may be conducted as 
                      part of the risk assessment authorized by clause 
                      (i) and shall be used by the Administrator to 
                      prepare the guidance and approve State programs 
                      under subparagraph (G).
                          ``(iii) <<NOTE: Contracts.>> Other 
                      organization.--If the National Academy of Sciences 
                      declines to prepare the risk assessment or studies 
                      required by this subparagraph, the Administrator 
                      shall enter into a contract or cooperative 
                      agreement with another independent, scientific 
                      organization to prepare such assessments or 
                      studies.
                    ``(C) <<NOTE: Publication.>> Health risk reduction 
                and cost analysis.--Not later than 30 months after the 
                date of enactment of this paragraph, the Administrator 
                shall publish, and seek public comment on, a health risk 
                reduction and cost analysis meeting the requirements of 
                paragraph (3)(C) for potential maximum contaminant 
                levels that are being considered for radon in drinking 
                water. The Administrator shall include a response to all 
                significant public comments received on the analysis 
                with the preamble for the proposed rule published under 
                subparagraph (D).
                    ``(D) Proposed regulation.--Not later than 36 months 
                after the date of enactment of this paragraph, the 
                Administrator shall propose a maximum contaminant level 
                goal and a national primary drinking water regulation 
                for radon pursuant to this section.
                    ``(E) Final regulation.--Not later than 12 months 
                after the date of the proposal under subparagraph (D), 
                the Administrator shall publish a maximum contaminant 
                level goal and promulgate a national primary drinking 
                water regulation for radon pursuant to this section 
                based on the risk assessment prepared pursuant to 
                subparagraph (B) and the health risk reduction and cost 
                analysis published pursuant to subparagraph (C). In 
                considering the risk assessment and the health risk 
                reduction and cost analysis in connection with the 
                promulgation of such a standard, the Administrator shall 
                take into account the costs and benefits of control 
                programs for radon from other sources.

[[Page 110 STAT. 1630]]

                    ``(F) <<NOTE: Regulations.>> Alternative maximum 
                contaminant level.--If the maximum contaminant level for 
                radon in drinking water promulgated pursuant to 
                subparagraph (E) is more stringent than necessary to 
                reduce the contribution to radon in indoor air from 
                drinking water to a concentration that is equivalent to 
                the national average concentration of radon in outdoor 
                air, the Administrator shall, simultaneously with the 
                promulgation of such level, promulgate an alternative 
                maximum contaminant level for radon that would result in 
                a contribution of radon from drinking water to radon 
                levels in indoor air equivalent to the national average 
                concentration of radon in outdoor 
                air. <<NOTE: Publication. Guidelines.>> If the 
                Administrator promulgates an alternative maximum 
                contaminant level under this subparagraph, the 
                Administrator shall, after notice and opportunity for 
                public comment and in consultation with the States, 
                publish guidelines for State programs, including 
                criteria for multimedia measures to mitigate radon 
                levels in indoor air, to be used by the States in 
                preparing programs under subparagraph (G). The 
                guidelines shall take into account data from existing 
                radon mitigation programs and the assessment of 
                mitigation measures prepared under subparagraph (B).
                    ``(G) Multimedia radon mitigation programs.--
                          ``(i) In general.--A State may develop and 
                      submit a multimedia program to mitigate radon 
                      levels in indoor air for approval by the 
                      Administrator under this subparagraph. If, after 
                      notice and the opportunity for public comment, 
                      such program is approved by the Administrator, 
                      public water systems in the State may comply with 
                      the alternative maximum contaminant level 
                      promulgated under subparagraph (F) in lieu of the 
                      maximum contaminant level in the national primary 
                      drinking water regulation promulgated under 
                      subparagraph (E).
                          ``(ii) Elements of programs.--State programs 
                      may rely on a variety of mitigation measures 
                      including public education, testing, training, 
                      technical assistance, remediation grant and loan 
                      or incentive programs, or other regulatory or 
                      nonregulatory measures. The effectiveness of 
                      elements in State programs shall be evaluated by 
                      the Administrator based on the assessment prepared 
                      by the National Academy of Sciences under 
                      subparagraph (B) and the guidelines published by 
                      the Administrator under subparagraph (F).
                          ``(iii) Approval.--The Administrator shall 
                      approve a State program submitted under this 
                      paragraph if the health risk reduction benefits 
                      expected to be achieved by the program are equal 
                      to or greater than the health risk reduction 
                      benefits that would be achieved if each public 
                      water system in the State complied with the 
                      maximum contaminant level promulgated under 
                      subparagraph (E). The Administrator shall approve 
                      or disapprove a program submitted under this 
                      paragraph within 180 days of receipt. A program 
                      that is not disapproved during such period shall 
                      be deemed approved. A program that is disapproved 
                      may be modi

[[Page 110 STAT. 1631]]

                      fied to address the objections of the 
                      Administrator and be resubmitted for approval.
                          ``(iv) Review.--The Administrator shall 
                      periodically, but not less often than every 5 
                      years, review each multimedia mitigation program 
                      approved under this subparagraph to determine 
                      whether it continues to meet the requirements of 
                      clause (iii) and shall, after written notice to 
                      the State and an opportunity for the State to 
                      correct any deficiency in the program, withdraw 
                      approval of programs that no longer comply with 
                      such requirements.
                          ``(v) Extension.--If, within 90 days after the 
                      promulgation of an alternative maximum contaminant 
                      level under subparagraph (F), the Governor of a 
                      State submits a letter to the Administrator 
                      committing to develop a multimedia mitigation 
                      program under this subparagraph, the effective 
                      date of the national primary drinking water 
                      regulation for radon in the State that would be 
                      applicable under paragraph (10) shall be extended 
                      for a period of 18 months.
                          ``(vi) Local programs.--In the event that a 
                      State chooses not to submit a multimedia 
                      mitigation program for approval under this 
                      subparagraph or has submitted a program that has 
                      been disapproved, any public water system in the 
                      State may submit a program for approval by the 
                      Administrator according to the same criteria, 
                      conditions, and approval process that would apply 
                      to a State program. The Administrator shall 
                      approve a multimedia mitigation program if the 
                      health risk reduction benefits expected to be 
                      achieved by the program are equal to or greater 
                      than the health risk reduction benefits that would 
                      result from compliance by the public water system 
                      with the maximum contaminant level for radon 
                      promulgated under subparagraph (E).''.

SEC. 110. <<NOTE: Regulations.>> RECYCLING OF FILTER BACKWASH.

    Section 1412(b) (42 U.S.C. 300g-1(b)) is amended by adding the 
following new paragraph after paragraph (13):
            ``(14) Recycling of filter backwash.--The Administrator 
        shall promulgate a regulation to govern the recycling of filter 
        backwash water within the treatment process of a public water 
        system. The Administrator shall promulgate such regulation not 
        later than 4 years after the date of enactment of the Safe 
        Drinking Water Act Amendments of 1996 unless such recycling has 
        been addressed by the Administrator's Enhanced Surface Water 
        Treatment Rule prior to such date.''.

SEC. 111. TECHNOLOGY AND TREATMENT TECHNIQUES.

    (a) Variance Technologies.--Section 1412(b) (42 U.S.C. 300g-1(b)) is 
amended by adding the following new paragraph after paragraph (14):
            ``(15) <<NOTE: Regulations.>> Variance technologies.--
                    ``(A) In general.--At the same time as the 
                Administrator promulgates a national primary drinking 
                water regulation for a contaminant pursuant to this 
                section, the Administrator shall issue guidance or 
                regulations describing the best treatment technologies, 
                treatment techniques,

[[Page 110 STAT. 1632]]

                or other means (referred to in this paragraph as 
                `variance technology') for the contaminant that the 
                Administrator finds, after examination for efficacy 
                under field conditions and not solely under laboratory 
                conditions, are available and affordable, as determined 
                by the Administrator in consultation with the States, 
                for public water systems of varying size, considering 
                the quality of the source water to be treated. The 
                Administrator shall identify such variance technologies 
                for public water systems serving--
                          ``(i) a population of 10,000 or fewer but more 
                      than 3,300;
                          ``(ii) a population of 3,300 or fewer but more 
                      than 500; and
                          ``(iii) a population of 500 or fewer but more 
                      than 25,
                if, considering the quality of the source water to be 
                treated, no treatment technology is listed for public 
                water systems of that size under paragraph (4)(E). 
                Variance technologies identified by the Administrator 
                pursuant to this paragraph may not achieve compliance 
                with the maximum contaminant level or treatment 
                technique requirement of such regulation, but shall 
                achieve the maximum reduction or inactivation efficiency 
                that is affordable considering the size of the system 
                and the quality of the source water. The guidance or 
                regulations shall not require the use of a technology 
                from a specific manufacturer or brand.
                    ``(B) Limitation.--The Administrator shall not 
                identify any variance technology under this paragraph, 
                unless the Administrator has determined, considering the 
                quality of the source water to be treated and the 
                expected useful life of the technology, that the 
                variance technology is protective of public health.
                    ``(C) Additional information.--The Administrator 
                shall include in the guidance or regulations identifying 
                variance technologies under this paragraph any 
                assumptions supporting the public health determination 
                referred to in subparagraph (B), where such assumptions 
                concern the public water system to which the technology 
                may be applied, or its source waters. The Administrator 
                shall provide any assumptions used in determining 
                affordability, taking into consideration the number of 
                persons served by such systems. The Administrator shall 
                provide as much reliable information as practicable on 
                performance, effectiveness, limitations, costs, and 
                other relevant factors including the applicability of 
                variance technology to waters from surface and 
                underground sources.
                    ``(D) Regulations and guidance.--Not later than 2 
                years after the date of enactment of this paragraph and 
                after consultation with the States, the Administrator 
                shall issue guidance or regulations under subparagraph 
                (A) for each national primary drinking water regulation 
                promulgated prior to the date of enactment of this 
                paragraph for which a variance may be granted under 
                section 1415(e). The Administrator may, at any time 
                after a national primary drinking water regulation has 
                been promulgated, issue guidance or regulations 
                describing additional variance technologies. The 
                Administrator shall, not less often than

[[Page 110 STAT. 1633]]

                every 7 years, or upon receipt of a petition supported 
                by substantial information, review variance technologies 
                identified under this paragraph. The Administrator shall 
                issue revised guidance or regulations if new or 
                innovative variance technologies become available that 
                meet the requirements of this paragraph and achieve an 
                equal or greater reduction or inactivation efficiency 
                than the variance technologies previously identified 
                under this subparagraph. No public water system shall be 
                required to replace a variance technology during the 
                useful life of the technology for the sole reason that a 
                more efficient variance technology has been listed under 
                this subparagraph.''.

    (b) Availability of Information on Small System Technologies.--
Section 1445 (42 U.S.C. 300j-4) is amended by adding the following new 
subsection after subsection (g):
    ``(h) Availability of Information on Small System Technologies.--For 
purposes of sections 1412(b)(4)(E) and 1415(e) (relating to small system 
variance program), the Administrator may request information on the 
characteristics of commercially available treatment systems and 
technologies, including the effectiveness and performance of the systems 
and technologies under various operating conditions. The Administrator 
may specify the form, content, and submission date of information to be 
submitted by manufacturers, States, and other interested persons for the 
purpose of considering the systems and technologies in the development 
of regulations or guidance under sections 1412(b)(4)(E) and 1415(e).''.

SEC. 112. STATE PRIMACY.

    (a) State Primary Enforcement Responsibility.--Section 1413 (42 
U.S.C. 300g-2) is amended as follows:
            (1) In subsection (a), by amending paragraph (1) to read as 
        follows:
            ``(1) has adopted drinking water regulations that are no 
        less stringent than the national primary drinking water 
        regulations promulgated by the Administrator under subsections 
        (a) and (b) of section 1412 not later than 2 years after the 
        date on which the regulations are promulgated by the 
        Administrator, except that the Administrator may provide for an 
        extension of not more than 2 years if, after submission and 
        review of appropriate, adequate documentation from the State, 
        the Administrator determines that the extension is necessary and 
        justified;''.
            (2) By adding at the end the following subsection:

    ``(c) Interim Primary Enforcement Authority.--A State that has 
primary enforcement authority under this section with respect to each 
existing national primary drinking water regulation shall be considered 
to have primary enforcement authority with respect to each new or 
revised national primary drinking water regulation during the period 
beginning on the effective date of a regulation adopted and submitted by 
the State with respect to the new or revised national primary drinking 
water regulation in accordance with subsection (b)(1) and ending at such 
time as the Administrator makes a determination under subsection 
(b)(2)(B) with respect to the regulation.''.
    (b) Emergency Plans.--Section 1413(a)(5) (42 U.S.C. 300g-2(a)(5)) is 
amended by inserting after ``emergency circumstances''

[[Page 110 STAT. 1634]]

the following: ``including earthquakes, floods, hurricanes, and other 
natural disasters, as appropriate''.

SEC. 113. ENFORCEMENT; JUDICIAL REVIEW.

    (a) In General.--Section 1414 (42 U.S.C. 300g-3) is amended as 
follows:
            (1) In subsection (a)--
                    (A) in paragraph (1)--
                          (i) in subparagraph (A)--
                                    (I) in clause (i), by striking ``any 
                                national primary drinking water 
                                regulation in effect under section 
                                1412'' and inserting ``any applicable 
                                requirement''; and
                                    (II) by striking ``with such 
                                regulation or requirement'' and 
                                inserting ``with the requirement''; and
                          (ii) in subparagraph (B), by striking 
                      ``regulation or'' and inserting ``applicable''; 
                      and
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) Enforcement in nonprimacy states.--
                    ``(A) In general.--If, on the basis of information 
                available to the Administrator, the Administrator finds, 
                with respect to a period in which a State does not have 
                primary enforcement responsibility for public water 
                systems, that a public water system in the State--
                          ``(i) for which a variance under section 1415 
                      or an exemption under section 1416 is not in 
                      effect, does not comply with any applicable 
                      requirement; or
                          ``(ii) for which a variance under section 1415 
                      or an exemption under section 1416 is in effect, 
                      does not comply with any schedule or other 
                      requirement imposed pursuant to the variance or 
                      exemption;
                the <<NOTE: Orders.>> Administrator shall issue an order 
                under subsection (g) requiring the public water system 
                to comply with the requirement, or commence a civil 
                action under subsection (b).
                    ``(B) Notice.--If the Administrator takes any action 
                pursuant to this paragraph, the Administrator shall 
                notify an appropriate local elected official, if any, 
                with jurisdiction over the public water system of the 
                action prior to the time that the action is taken.''.
            (2) In the first sentence of subsection (b), by striking ``a 
        national primary drinking water regulation'' and inserting ``any 
        applicable requirement''.
            (3) In subsection (g)--
                    (A) in paragraph (1), by striking ``regulation, 
                schedule, or other'' each place it appears and inserting 
                ``applicable'';
                    (B) in paragraph (2)--
                          (i) in the first sentence--
                                    (I) by striking ``effect until after 
                                notice and opportunity for public 
                                hearing and,'' and inserting 
                                ``effect,''; and
                                    (II) by striking ``proposed order'' 
                                and inserting ``order''; and
                          (ii) in the second sentence, by striking 
                      ``proposed to be''; and

[[Page 110 STAT. 1635]]

                    (C) in paragraph (3)--
                          (i) by striking subparagraph (B) and inserting 
                      the following:

    ``(B) In a case in which a civil penalty sought by the Administrator 
under this paragraph does not exceed $5,000, the penalty shall be 
assessed by the Administrator after notice and opportunity for a public 
hearing (unless the person against whom the penalty is assessed requests 
a hearing on the record in accordance with section 554 of title 5, 
United States Code). In a case in which a civil penalty sought by the 
Administrator under this paragraph exceeds $5,000, but does not exceed 
$25,000, the penalty shall be assessed by the Administrator after notice 
and opportunity for a hearing on the record in accordance with section 
554 of title 5, United States Code.''; and
                          (ii) in subparagraph (C), by striking 
                      ``paragraph exceeds $5,000'' and inserting 
                      ``subsection for a violation of an applicable 
                      requirement exceeds $25,000''.
            (4) By adding at the end the following:

    ``(h) Consolidation Incentive.--
            ``(1) In general.--An owner or operator of a public water 
        system may submit to the State in which the system is located 
        (if the State has primary enforcement responsibility under 
        section 1413) or to the Administrator (if the State does not 
        have primary enforcement responsibility) a plan (including 
        specific measures and schedules) for--
                    ``(A) the physical consolidation of the system with 
                1 or more other systems;
                    ``(B) the consolidation of significant management 
                and administrative functions of the system with 1 or 
                more other systems; or
                    ``(C) the transfer of ownership of the system that 
                may reasonably be expected to improve drinking water 
                quality.
            ``(2) Consequences of approval.--If the State or the 
        Administrator approves a plan pursuant to paragraph (1), no 
        enforcement action shall be taken pursuant to this part with 
        respect to a specific violation identified in the approved plan 
        prior to the date that is the earlier of the date on which 
        consolidation is completed according to the plan or the date 
        that is 2 years after the plan is approved.

    ``(i) Definition of Applicable Requirement.--In this section, the 
term `applicable requirement' means--
            ``(1) a requirement of section 1412, 1414, 1415, 1416, 1417, 
        1441, or 1445;
            ``(2) a regulation promulgated pursuant to a section 
        referred to in paragraph (1);
            ``(3) a schedule or requirement imposed pursuant to a 
        section referred to in paragraph (1); and
            ``(4) a requirement of, or permit issued under, an 
        applicable State program for which the Administrator has made a 
        determination that the requirements of section 1413 have been 
        satisfied, or an applicable State program approved pursuant to 
        this part.''.

    (b) State Authority for Administrative Penalties.--Section 1413(a) 
(42 U.S.C. 300g-2(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (4);
            (2) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and

[[Page 110 STAT. 1636]]

            (3) by adding at the end the following:
            ``(6) has adopted authority for administrative penalties 
        (unless the constitution of the State prohibits the adoption of 
        the authority) in a maximum amount--
                    ``(A) in the case of a system serving a population 
                of more than 10,000, that is not less than $1,000 per 
                day per violation; and
                    ``(B) in the case of any other system, that is 
                adequate to ensure compliance (as determined by the 
                State);
        except that a State may establish a maximum limitation on the 
        total amount of administrative penalties that may be imposed on 
        a public water system per violation.''.

    (c) Judicial Review.--Section 1448(a) (42 U.S.C. 300j-7(a)) is 
amended--
            (1) in paragraph (2) of the first sentence, by inserting 
        ``final'' after ``any other'';
            (2) in the second sentence, by striking ``or issuance of the 
        order'' and inserting ``or any other final Agency action''; and
            (3) by adding at the end the following ``In any petition 
        concerning the assessment of a civil penalty pursuant to section 
        1414(g)(3)(B), the petitioner shall simultaneously send a copy 
        of the complaint by certified mail to the Administrator and the 
        Attorney General. The court shall set aside and remand the 
        penalty order if the court finds that there is not substantial 
        evidence in the record to support the finding of a violation or 
        that the assessment of the penalty by the Administrator 
        constitutes an abuse of discretion.''.

    (d) Emergency Powers.--Section 1431(b) (42 U.S.C. 300i(b)) is 
amended by striking ``$5,000'' and inserting ``$15,000''.

SEC. 114. PUBLIC NOTIFICATION.

    (a) Public Water Systems.--Section 1414(c) (42 U.S.C. 300g-3(c)) is 
amended to read as follows:
    ``(c) Notice to Persons Served.--
            ``(1) In general.--Each owner or operator of a public water 
        system shall give notice of each of the following to the persons 
        served by the system:
                    ``(A) Notice of any failure on the part of the 
                public water system to--
                          ``(i) comply with an applicable maximum 
                      contaminant level or treatment technique 
                      requirement of, or a testing procedure prescribed 
                      by, a national primary drinking water regulation; 
                      or
                          ``(ii) perform monitoring required by section 
                      1445(a).
                    ``(B) If the public water system is subject to a 
                variance granted under subsection (a)(1)(A), (a)(2), or 
                (e) of section 1415 for an inability to meet a maximum 
                contaminant level requirement or is subject to an 
                exemption granted under section 1416, notice of--
                          ``(i) the existence of the variance or 
                      exemption; and
                          ``(ii) any failure to comply with the 
                      requirements of any schedule prescribed pursuant 
                      to the variance or exemption.

[[Page 110 STAT. 1637]]

                    ``(C) Notice of the concentration level of any 
                unregulated contaminant for which the Administrator has 
                required public notice pursuant to paragraph (2)(E).
            ``(2) Form, manner, and frequency of notice.--
                    ``(A) <<NOTE: Regulations.>> In general.--The 
                Administrator shall, by regulation, and after 
                consultation with the States, prescribe the manner, 
                frequency, form, and content for giving notice under 
                this subsection. The regulations shall--
                          ``(i) provide for different frequencies of 
                      notice based on the differences between violations 
                      that are intermittent or infrequent and violations 
                      that are continuous or frequent; and
                          ``(ii) take into account the seriousness of 
                      any potential adverse health effects that may be 
                      involved.
                    ``(B) State requirements.--
                          ``(i) In general.--A State may, by rule, 
                      establish alternative notification requirements--
                                    ``(I) with respect to the form and 
                                content of notice given under and in a 
                                manner in accordance with subparagraph 
                                (C); and
                                    ``(II) with respect to the form and 
                                content of notice given under 
                                subparagraph (D).
                          ``(ii) Contents.--The alternative requirements 
                      shall provide the same type and amount of 
                      information as required pursuant to this 
                      subsection and regulations issued under 
                      subparagraph (A).
                          ``(iii) Relationship to section 1413.--Nothing 
                      in this subparagraph shall be construed or applied 
                      to modify the requirements of section 1413.
                    ``(C) Violations with potential to have serious 
                adverse effects on human health.--Regulations issued 
                under subparagraph (A) shall specify notification 
                procedures for each violation by a public water system 
                that has the potential to have serious adverse effects 
                on human health as a result of short-term exposure. Each 
                notice of violation provided under this subparagraph 
                shall--
                          ``(i) be distributed as soon as practicable 
                      after the occurrence of the violation, but not 
                      later than 24 hours after the occurrence of the 
                      violation;
                          ``(ii) provide a clear and readily 
                      understandable explanation of--
                                    ``(I) the violation;
                                    ``(II) the potential adverse effects 
                                on human health;
                                    ``(III) the steps that the public 
                                water system is taking to correct the 
                                violation; and
                                    ``(IV) the necessity of seeking 
                                alternative water supplies until the 
                                violation is corrected;
                          ``(iii) be provided to the Administrator or 
                      the head of the State agency that has primary 
                      enforcement responsibility under section 1413 as 
                      soon as practicable, but not later than 24 hours 
                      after the occurrence of the violation; and
                          ``(iv) as required by the State agency in 
                      general regulations of the State agency, or on a 
                      case-by-case basis after the consultation referred 
                      to in clause (iii), considering the health risks 
                      involved--

[[Page 110 STAT. 1638]]

                                    ``(I) be provided to appropriate 
                                broadcast media;
                                    ``(II) be prominently published in a 
                                newspaper of general circulation serving 
                                the area not later than 1 day after 
                                distribution of a notice pursuant to 
                                clause (i) or the date of publication of 
                                the next issue of the newspaper; or
                                    ``(III) be provided by posting or 
                                door-to-door notification in lieu of 
                                notification by means of broadcast media 
                                or newspaper.
                    ``(D) Written notice.--
                          ``(i) In general.--Regulations issued under 
                      subparagraph (A) shall specify notification 
                      procedures for violations other than the 
                      violations covered by subparagraph 
                      (C). <<NOTE: Reports.>> The procedures shall 
                      specify that a public water system shall provide 
                      written notice to each person served by the system 
                      by notice (I) in the first bill (if any) prepared 
                      after the date of occurrence of the violation, 
                      (II) in an annual report issued not later than 1 
                      year after the date of occurrence of the 
                      violation, or (III) by mail or direct delivery as 
                      soon as practicable, but not later than 1 year 
                      after the date of occurrence of the violation.
                          ``(ii) Form and manner of notice.--The 
                      Administrator shall prescribe the form and manner 
                      of the notice to provide a clear and readily 
                      understandable explanation of the violation, any 
                      potential adverse health effects, and the steps 
                      that the system is taking to seek alternative 
                      water supplies, if any, until the violation is 
                      corrected.
                    ``(E) Unregulated contaminants.--The Administrator 
                may require the owner or operator of a public water 
                system to give notice to the persons served by the 
                system of the concentration levels of an unregulated 
                contaminant required to be monitored under section 
                1445(a).
            ``(3) Reports.--
                    ``(A) Annual report by state.--
                          ``(i) In general.--Not later than January 1, 
                      1998, and annually thereafter, each State that has 
                      primary enforcement responsibility under section 
                      1413 shall prepare, make readily available to the 
                      public, and submit to the Administrator an annual 
                      report on violations of national primary drinking 
                      water regulations by public water systems in the 
                      State, including violations with respect to (I) 
                      maximum contaminant levels, (II) treatment 
                      requirements, (III) variances and exemptions, and 
                      (IV) monitoring requirements determined to be 
                      significant by the Administrator after 
                      consultation with the States.
                          ``(ii) <<NOTE: Publication.>> Distribution.--
                      The State shall publish and distribute summaries 
                      of the report and indicate where the full report 
                      is available for review.
                    ``(B) <<NOTE: Native Americans.>> Annual report by 
                administrator.--Not later than July 1, 1998, and 
                annually thereafter, the Administrator shall prepare and 
                make available to the public an annual report 
                summarizing and evaluating reports submitted by States 
                pursuant to subparagraph (A) and notices

[[Page 110 STAT. 1639]]

                submitted by public water systems serving Indian Tribes 
                provided to the Administrator pursuant to subparagraph 
                (C) or (D) of paragraph (2) and making recommendations 
                concerning the resources needed to improve compliance 
                with this title. The report shall include information 
                about public water system compliance on Indian 
                reservations and about enforcement activities undertaken 
                and financial assistance provided by the Administrator 
                on Indian reservations, and shall make specific 
                recommendations concerning the resources needed to 
                improve compliance with this title on Indian 
                reservations.
            ``(4) Consumer confidence reports by community water 
        systems.--
                    ``(A) <<NOTE: Regulations.>> Annual reports to 
                consumers.--The Administrator, in consultation with 
                public water systems, environmental groups, public 
                interest groups, risk communication experts, and the 
                States, and other interested parties, shall issue 
                regulations within 24 months after the date of enactment 
                of this paragraph to require each community water system 
                to mail to each customer of the system at least once 
                annually a report on the level of contaminants in the 
                drinking water purveyed by that system (referred to in 
                this paragraph as a `consumer confidence report'). Such 
                regulations shall provide a brief and plainly worded 
                definition of the terms `maximum contaminant level 
                goal', `maximum contaminant level', `variances', and 
                `exemptions' and brief statements in plain language 
                regarding the health concerns that resulted in 
                regulation of each regulated contaminant. The 
                regulations shall also include a brief and plainly 
                worded explanation regarding contaminants that may 
                reasonably be expected to be present in drinking water, 
                including bottled water. The regulations shall also 
                provide for an Environmental Protection Agency toll-free 
                hotline that consumers can call for more information and 
                explanation.
                    ``(B) Contents of report.--The consumer confidence 
                reports under this paragraph shall include, but not be 
                limited to, each of the following:
                          ``(i) Information on the source of the water 
                      purveyed.
                          ``(ii) A brief and plainly worded definition 
                      of the terms `maximum contaminant level goal', 
                      `maximum contaminant level', `variances', and 
                      `exemptions' as provided in the regulations of the 
                      Administrator.
                          ``(iii) If any regulated contaminant is 
                      detected in the water purveyed by the public water 
                      system, a statement setting forth (I) the maximum 
                      contaminant level goal, (II) the maximum 
                      contaminant level, (III) the level of such 
                      contaminant in such water system, and (IV) for any 
                      regulated contaminant for which there has been a 
                      violation of the maximum contaminant level during 
                      the year concerned, the brief statement in plain 
                      language regarding the health concerns that 
                      resulted in regulation of such contaminant, as 
                      provided by the Administrator in regulations under 
                      subparagraph (A).

[[Page 110 STAT. 1640]]

                          ``(iv) Information on compliance with national 
                      primary drinking water regulations, as required by 
                      the Administrator, and notice if the system is 
                      operating under a variance or exemption and the 
                      basis on which the variance or exemption was 
                      granted.
                          ``(v) Information on the levels of unregulated 
                      contaminants for which monitoring is required 
                      under section 1445(a)(2) (including levels of 
                      cryptosporidium and radon where States determine 
                      they may be found).
                          ``(vi) A statement that the presence of 
                      contaminants in drinking water does not 
                      necessarily indicate that the drinking water poses 
                      a health risk and that more information about 
                      contaminants and potential health effects can be 
                      obtained by calling the Environmental Protection 
                      Agency hotline.
                A public water system may include such additional 
                information as it deems appropriate for public 
                education. The Administrator may, for not more than 3 
                regulated contaminants other than those referred to in 
                subclause (IV) of clause (iii), require a consumer 
                confidence report under this paragraph to include the 
                brief statement in plain language regarding the health 
                concerns that resulted in regulation of the contaminant 
                or contaminants concerned, as provided by the 
                Administrator in regulations under subparagraph (A).
                    ``(C) Coverage.--The Governor of a State may 
                determine not to apply the mailing requirement of 
                subparagraph (A) to a community water system serving 
                fewer than 10,000 persons. Any such system shall--
                          ``(i) <<NOTE: Newspapers.>> inform, in the 
                      newspaper notice required by clause (iii) or by 
                      other means, its customers that the system will 
                      not be mailing the report as required by 
                      subparagraph (A);
                          ``(ii) make the consumer confidence report 
                      available upon request to the public; and
                          ``(iii) <<NOTE: Publication.>> publish the 
                      report referred to in subparagraph (A) annually in 
                      one or more local newspapers serving the area in 
                      which customers of the system are located.
                    ``(D) Alternative to publication.--For any community 
                water system which, pursuant to subparagraph (C), is not 
                required to meet the mailing requirement of subparagraph 
                (A) and which serves 500 persons or fewer, the community 
                water system may elect not to comply with clause (i) or 
                (iii) of subparagraph (C). If the community water system 
                so elects, the system shall, at a minimum--
                          ``(i) <<NOTE: Reports.>> prepare an annual 
                      consumer confidence report pursuant to 
                      subparagraph (B); and
                          ``(ii) provide notice at least once per year 
                      to each of its customers by mail, by door-to-door 
                      delivery, by posting or by other means authorized 
                      by the regulations of the Administrator that the 
                      consumer confidence report is available upon 
                      request.
                    ``(E) Alternative form and content.--A State 
                exercising primary enforcement responsibility may 
                establish, by rule, after notice and public comment, 
                alternative requirements with respect to the form and 
                content of consumer confidence reports under this 
                paragraph.''.

[[Page 110 STAT. 1641]]

    (b) <<NOTE: Publication. 21 USC 349 note.>> Bottled Water Study.--
Not later than 18 months after the date of enactment of this Act, the 
Administrator of the Food and Drug Administration, in consultation with 
the Administrator of the Environmental Protection Agency, shall publish 
for public notice and comment a draft study on the feasibility of 
appropriate methods, if any, of informing customers of the contents of 
bottled water. The Administrator of the Food and Drug Administration 
shall publish a final study not later than 30 months after the date of 
enactment of this Act.

SEC. 115. VARIANCES.

    The second sentence of section 1415(a)(1)(A) (42 U.S.C. 300g-
4(a)(1)(A)) is amended--
            (1) by striking ``only be issued to a system after the 
        system's application of'' and inserting ``be issued to a system 
        on condition that the system install''; and
            (2) by inserting before the period at the end the following: 
        ``, and based upon an evaluation satisfactory to the State that 
        indicates that alternative sources of water are not reasonably 
        available to the system''.

SEC. 116. SMALL SYSTEMS VARIANCES.

    Section 1415 (42 U.S.C. 300g-4) is amended by adding at the end the 
following:
    ``(e) Small System Variances.--
            ``(1) In general.--A State exercising primary enforcement 
        responsibility for public water systems under section 1413 (or 
        the Administrator in nonprimacy States) may grant a variance 
        under this subsection for compliance with a requirement 
        specifying a maximum contaminant level or treatment technique 
        contained in a national primary drinking water regulation to--
                    ``(A) public water systems serving 3,300 or fewer 
                persons; and
                    ``(B) with the approval of the Administrator 
                pursuant to paragraph (9), public water systems serving 
                more than 3,300 persons but fewer than 10,000 persons,
        if the variance meets each requirement of this subsection.
            ``(2) Availability of variances.--A public water system may 
        receive a variance pursuant to paragraph (1), if--
                    ``(A) the Administrator has identified a variance 
                technology under section 1412(b)(15) that is applicable 
                to the size and source water quality conditions of the 
                public water system;
                    ``(B) the public water system installs, operates, 
                and maintains, in accordance with guidance or 
                regulations issued by the Administrator, such treatment 
                technology, treatment technique, or other means; and
                    ``(C) the State in which the system is located 
                determines that the conditions of paragraph (3) are met.
            ``(3) Conditions for granting variances.--A variance under 
        this subsection shall be available only to a system--
                    ``(A) that cannot afford to comply, in accordance 
                with affordability criteria established by the 
                Administrator (or the State in the case of a State that 
                has primary enforcement responsibility under section 
                1413), with a national primary drinking water 
                regulation, including compliance through--
                          ``(i) treatment;

[[Page 110 STAT. 1642]]

                          ``(ii) alternative source of water supply; or
                          ``(iii) restructuring or consolidation (unless 
                      the Administrator (or the State in the case of a 
                      State that has primary enforcement responsibility 
                      under section 1413) makes a written determination 
                      that restructuring or consolidation is not 
                      practicable); and
                    ``(B) for which the Administrator (or the State in 
                the case of a State that has primary enforcement 
                responsibility under section 1413) determines that the 
                terms of the variance ensure adequate protection of 
                human health, considering the quality of the source 
                water for the system and the removal efficiencies and 
                expected useful life of the treatment technology 
                required by the variance.
            ``(4) Compliance schedules.--A variance granted under this 
        subsection shall require compliance with the conditions of the 
        variance not later than 3 years after the date on which the 
        variance is granted, except that the Administrator (or the State 
        in the case of a State that has primary enforcement 
        responsibility under section 1413) may allow up to 2 additional 
        years to comply with a variance technology, secure an 
        alternative source of water, restructure or consolidate if the 
        Administrator (or the State) determines that additional time is 
        necessary for capital improvements, or to allow for financial 
        assistance provided pursuant to section 1452 or any other 
        Federal or State program.
            ``(5) <<NOTE: Review.>> Duration of variances.--The 
        Administrator (or the State in the case of a State that has 
        primary enforcement responsibility under section 1413) shall 
        review each variance granted under this subsection not less 
        often than every 5 years after the compliance date established 
        in the variance to determine whether the system remains eligible 
        for the variance and is conforming to each condition of the 
        variance.
            ``(6) Ineligibility for variances.--A variance shall not be 
        available under this subsection for--
                    ``(A) any maximum contaminant level or treatment 
                technique for a contaminant with respect to which a 
                national primary drinking water regulation was 
                promulgated prior to January 1, 1986; or
                    ``(B) a national primary drinking water regulation 
                for a microbial contaminant (including a bacterium, 
                virus, or other organism) or an indicator or treatment 
                technique for a microbial contaminant.
            ``(7) Regulations and guidance.--
                    ``(A) In general.--Not later than 2 years after the 
                date of enactment of this subsection and in consultation 
                with the States, the Administrator shall promulgate 
                regulations for variances to be granted under this 
                subsection. The regulations shall, at a minimum, 
                specify--
                          ``(i) procedures to be used by the 
                      Administrator or a State to grant or deny 
                      variances, including requirements for notifying 
                      the Administrator and consumers of the public 
                      water system that a variance is proposed to be 
                      granted (including information regarding the 
                      contaminant and variance) and requirements for a 
                      public hearing on the variance before the variance 
                      is granted;

[[Page 110 STAT. 1643]]

                          ``(ii) requirements for the installation and 
                      proper operation of variance technology that is 
                      identified (pursuant to section 1412(b)(15)) for 
                      small systems and the financial and technical 
                      capability to operate the treatment system, 
                      including operator training and certification;
                          ``(iii) eligibility criteria for a variance 
                      for each national primary drinking water 
                      regulation, including requirements for the quality 
                      of the source water (pursuant to section 
                      1412(b)(15)(A)); and
                          ``(iv) information requirements for variance 
                      applications.
                    ``(B)  <<NOTE: Publication.>> Affordability 
                criteria.--Not later than 18 months after the date of 
                enactment of the Safe Drinking Water Act Amendments of 
                1996, the Administrator, in consultation with the States 
                and the Rural Utilities Service of the Department of 
                Agriculture, shall publish information to assist the 
                States in developing affordability criteria. The 
                affordability <<NOTE: Review.>> criteria shall be 
                reviewed by the States not less often than every 5 years 
                to determine if changes are needed to the criteria.
            ``(8) Review by the administrator.--
                    ``(A) In general.--The Administrator shall 
                periodically review the program of each State that has 
                primary enforcement responsibility for public water 
                systems under section 1413 with respect to variances to 
                determine whether the variances granted by the State 
                comply with the requirements of this subsection. With 
                respect to affordability, the determination of the 
                Administrator shall be limited to whether the variances 
                granted by the State comply with the affordability 
                criteria developed by the State.
                    ``(B) Notice and publication.--If the Administrator 
                determines that variances granted by a State are not in 
                compliance with affordability criteria developed by the 
                State and the requirements of this subsection, the 
                Administrator shall notify the State in writing of the 
                deficiencies and make public the determination.
            ``(9) Approval of variances.--A State proposing to grant a 
        variance under this subsection to a public water system serving 
        more than 3,300 and fewer than 10,000 persons shall submit the 
        variance to the Administrator for review and approval prior to 
        the issuance of the variance. The Administrator shall approve 
        the variance if it meets each of the requirements of this 
        subsection. The Administrator shall approve or disapprove the 
        variance within 90 days. If 
        the <<NOTE: Notification.>> Administrator disapproves a variance 
        under this paragraph, the Administrator shall notify the State 
        in writing of the reasons for disapproval and the variance may 
        be resubmitted with modifications to address the objections 
        stated by the Administrator.
            ``(10) Objections to variances.--
                    ``(A) By the administrator.--The Administrator may 
                review and object to any variance proposed to be granted 
                by a State, if the objection is communicated to the 
                State not later than 90 days after the State proposes to 
                grant the variance. <<NOTE: Notification.>> If the 
                Administrator objects to the granting of a variance, the 
                Administrator shall notify the State in writing of each 
                basis for the objection and propose a

[[Page 110 STAT. 1644]]

                modification to the variance to resolve the concerns of 
                the Administrator. The State shall make the recommended 
                modification or respond in writing to each objection. If 
                the State issues the variance without resolving the 
                concerns of the Administrator, the Administrator may 
                overturn the State decision to grant the variance if the 
                Administrator determines that the State decision does 
                not comply with this subsection.
                    ``(B) Petition by consumers.--Not later than 30 days 
                after a State exercising primary enforcement 
                responsibility for public water systems under section 
                1413 proposes to grant a variance for a public water 
                system, any person served by the system may petition the 
                Administrator to object to the granting of a variance. 
                The Administrator shall respond to the petition and 
                determine whether to object to the variance under 
                subparagraph (A) not later than 60 days after the 
                receipt of the petition.
                    ``(C) Timing.--No variance shall be granted by a 
                State until the later of the following:
                          ``(i) 90 days after the State proposes to 
                      grant a variance.
                          ``(ii) If the Administrator objects to the 
                      variance, the date on which the State makes the 
                      recommended modifications or responds in writing 
                      to each objection.''.

SEC. 117. EXEMPTIONS.

    (a) In General.--Section 1416 (42 U.S.C. 300g-5) is amended as 
follows:
            (1) In subsection (a)(1)--
                    (A) by inserting after ``(which may include economic 
                factors'' the following: ``, including qualification of 
                the public water system as a system serving a 
                disadvantaged community pursuant to section 1452(d)''; 
                and
                    (B) by inserting after ``treatment technique 
                requirement,'' the following: ``or to implement measures 
                to develop an alternative source of water supply,''.
            (2) In subsection (a), by striking ``and'' at the end of 
        paragraph (2), striking the period at the end of paragraph (3) 
        and inserting ``; and'' and by adding the following at the end 
        thereof:
            ``(4) management or restructuring changes (or both) cannot 
        reasonably be made that will result in compliance with this 
        title or, if compliance cannot be achieved, improve the quality 
        of the drinking water.''.
            (3) In subsection (b)(1)(A)--
                    (A) by striking ``(including increments of 
                progress)'' and inserting ``(including increments of 
                progress or measures to develop an alternative source of 
                water supply)''; and
                    (B) by striking ``requirement and treatment'' and 
                inserting ``requirement or treatment''.
            (4) In subsection (b)(2)--
                    (A) by striking ``(except as provided in 
                subparagraph (B))'' in subparagraph (A) and all that 
                follows through ``3 years after the date of the issuance 
                of the exemption if'' in subparagraph (B) and inserting 
                the following: ``not

[[Page 110 STAT. 1645]]

                later than 3 years after the otherwise applicable 
                compliance date established in section 1412(b)(10).

    ``(B) No exemption shall be granted unless'';
                    (B) in subparagraph (B)(i), by striking ``within the 
                period of such exemption'' and inserting ``prior to the 
                date established pursuant to section 1412(b)(10)'';
                    (C) in subparagraph (B)(ii), by inserting after 
                ``such financial assistance'' the following: ``or 
                assistance pursuant to section 1452, or any other 
                Federal or State program is reasonably likely to be 
                available within the period of the exemption'';
                    (D) in subparagraph (C)--
                          (i) by striking ``500 service connections'' 
                      and inserting ``a population of 3,300''; and
                          (ii) by inserting ``, but not to exceed a 
                      total of 6 years,'' after ``for one or more 
                      additional 2-year periods''; and
                    (E) by adding at the end the following:

    ``(D) Limitation.--A public water system may not receive an 
exemption under this section if the system was granted a variance under 
section 1415(e).''.
    (b) Limited Additional Compliance Period.--(1) The State of New 
York, on a case-by-case basis and after notice and an opportunity of at 
least 60 days for public comment, may allow an additional period for 
compliance with the Surface Water Treatment Rule established pursuant to 
section 1412(b)(7)(C) of the Safe Drinking Water Act in the case of 
unfiltered systems in Essex, Columbia, Greene, Dutchess, Rensselaer, 
Schoharie, Saratoga, Washington, and Warren Counties serving a 
population of less than 5,000, which meet appropriate disinfection 
requirements and have adequate watershed protections, so long as the 
State determines that the public health will be protected during the 
duration of the additional compliance period and the system agrees to 
implement appropriate control measures as determined by the State.
    (2) <<NOTE: Expiration.>> The additional compliance period referred 
to in paragraph (1) shall expire on the earlier of the date 3 years 
after the date on which the Administrator identifies appropriate control 
technology for the Surface Water Treatment Rule for public water systems 
in the category that includes such system pursuant to section 
1412(b)(4)(E) of the Safe Drinking Water Act or 5 years after the date 
of enactment of the Safe Drinking Water Act Amendments of 1996.

SEC. 118. LEAD PLUMBING AND PIPES.

    Section 1417 (42 U.S.C. 300g-6) is amended as follows:
            (1) In subsection (a), by striking paragraph (1) and 
        inserting the following:
            ``(1) Prohibitions.--
                    ``(A) In general.--No person may use any pipe, any 
                pipe or plumbing fitting or fixture, any solder, or any 
                flux, after June 19, 1986, in the installation or repair 
                of--
                          ``(i) any public water system; or
                          ``(ii) any plumbing in a residential or 
                      nonresidential facility providing water for human 
                      consumption,

[[Page 110 STAT. 1646]]

                that is not lead free (within the meaning of subsection 
                (d)).
                    ``(B) Leaded joints.--Subparagraph (A) shall not 
                apply to leaded joints necessary for the repair of cast 
                iron pipes.''.
            (2) In subsection (a)(2)(A), by inserting ``owner or 
        operator of a'' after ``Each''.
            (3) By adding at the end of subsection (a) the following:
            ``(3) <<NOTE: Effective date.>> Unlawful acts.--Effective 2 
        years after the date of enactment of this paragraph, it shall be 
        unlawful--
                    ``(A) for any person to introduce into commerce any 
                pipe, or any pipe or plumbing fitting or fixture, that 
                is not lead free, except for a pipe that is used in 
                manufacturing or industrial processing;
                    ``(B) for any person engaged in the business of 
                selling plumbing supplies, except manufacturers, to sell 
                solder or flux that is not lead free; or
                    ``(C) for any person to introduce into commerce any 
                solder or flux that is not lead free unless the solder 
                or flux bears a prominent label stating that it is 
                illegal to use the solder or flux in the installation or 
                repair of any plumbing providing water for human 
                consumption.''.
            (4) In subsection (d)--
                    (A) by striking ``lead, and'' in paragraph (1) and 
                inserting ``lead;'';
                    (B) by striking ``lead.'' in paragraph (2) and 
                inserting ``lead; and''; and
                    (C) by adding at the end the following:
            ``(3) when used with respect to plumbing fittings and 
        fixtures, refers to plumbing fittings and fixtures in compliance 
        with standards established in accordance with subsection (e).''.
            (5) By adding at the end the following:

    ``(e) Plumbing Fittings and Fixtures.--
            ``(1) In general.--The Administrator shall provide accurate 
        and timely technical information and assistance to qualified 
        third-party certifiers in the development of voluntary standards 
        and testing protocols for the leaching of lead from new plumbing 
        fittings and fixtures that are intended by the manufacturer to 
        dispense water for human ingestion.
            ``(2) Standards.--
                    ``(A) In general.--If a voluntary standard for the 
                leaching of lead is not established by the date that is 
                1 year after the date of enactment of this subsection, 
                the Administrator shall, not later than 2 years after 
                the date of enactment of this subsection, promulgate 
                regulations setting a health-effects-based performance 
                standard establishing maximum leaching levels from new 
                plumbing fittings and fixtures that are intended by the 
                manufacturer to dispense water for human 
                ingestion. <<NOTE: Effective date.>> The standard shall 
                become effective on the date that is 5 years after the 
                date of promulgation of the standard.
                    ``(B) Alternative requirement.--If regulations are 
                required to be promulgated under subparagraph (A) and 
                have not been promulgated by the date that is 5 years 
                after the date of enactment of this subsection, no 
                person may import, manufacture, process, or distribute 
                in commerce a new plumbing fitting or fixture, intended 
                by the

[[Page 110 STAT. 1647]]

                manufacturer to dispense water for human ingestion, that 
                contains more than 4 percent lead by dry weight.''.

SEC. 119. CAPACITY DEVELOPMENT.

    Part B (42 U.S.C. 300g et seq.) is amended by adding after section 
1419 the following:

                         ``capacity development

    ``Sec. <<NOTE: 42 USC 300g-9.>> 1420. (a) State Authority for New 
Systems.--A State shall receive only 80 percent of the allotment that 
the State is otherwise entitled to receive under section 1452 (relating 
to State loan funds) unless the State has obtained the legal authority 
or other means to ensure that all new community water systems and new 
nontransient, noncommunity water systems commencing operation after 
October 1, 1999, demonstrate technical, managerial, and financial 
capacity with respect to each national primary drinking water regulation 
in effect, or likely to be in effect, on the date of commencement of 
operations.

    ``(b) Systems in Significant Noncompliance.--
            ``(1) List.--Beginning not later than 1 year after the date 
        of enactment of this section, each State shall prepare, 
        periodically update, and submit to the Administrator a list of 
        community water systems and nontransient, noncommunity water 
        systems that have a history of significant noncompliance with 
        this title (as defined in guidelines issued prior to the date of 
        enactment of this section or any revisions of the guidelines 
        that have been made in consultation with the States) and, to the 
        extent practicable, the reasons for noncompliance.
            ``(2) Report.--Not later than 5 years after the date of 
        enactment of this section and as part of the capacity 
        development strategy of the State, each State shall report to 
        the Administrator on the success of enforcement mechanisms and 
        initial capacity development efforts in assisting the public 
        water systems listed under paragraph (1) to improve technical, 
        managerial, and financial capacity.
            ``(3) Withholding.--The list and report under this 
        subsection shall be considered part of the capacity development 
        strategy of the State required under subsection (c) of this 
        section for purposes of the withholding requirements of section 
        1452(a)(1)(G)(i) (relating to State loan funds).

    ``(c) Capacity Development Strategy.--
            ``(1) In general.--Beginning 4 years after the date of 
        enactment of this section, a State shall receive only--
                    ``(A) 90 percent in fiscal year 2001;
                    ``(B) 85 percent in fiscal year 2002; and
                    ``(C) 80 percent in each subsequent fiscal year,
        of the allotment that the State is otherwise entitled to receive 
        under section 1452 (relating to State loan funds), unless the 
        State is developing and implementing a strategy to assist public 
        water systems in acquiring and maintaining technical, 
        managerial, and financial capacity.
            ``(2) Content.--In preparing the capacity development 
        strategy, the State shall consider, solicit public comment on, 
        and include as appropriate--
                    ``(A) the methods or criteria that the State will 
                use to identify and prioritize the public water systems 
                most

[[Page 110 STAT. 1648]]

                in need of improving technical, managerial, and 
                financial capacity;
                    ``(B) a description of the institutional, 
                regulatory, financial, tax, or legal factors at the 
                Federal, State, or local level that encourage or impair 
                capacity development;
                    ``(C) a description of how the State will use the 
                authorities and resources of this title or other means 
                to--
                          ``(i) assist public water systems in complying 
                      with national primary drinking water regulations;
                          ``(ii) encourage the development of 
                      partnerships between public water systems to 
                      enhance the technical, managerial, and financial 
                      capacity of the systems; and
                          ``(iii) assist public water systems in the 
                      training and certification of operators;
                    ``(D) a description of how the State will establish 
                a baseline and measure improvements in capacity with 
                respect to national primary drinking water regulations 
                and State drinking water law; and
                    ``(E) an identification of the persons that have an 
                interest in and are involved in the development and 
                implementation of the capacity development strategy 
                (including all appropriate agencies of Federal, State, 
                and local governments, private and nonprofit public 
                water systems, and public water system customers).
            ``(3) Report.--Not later than 2 years after the date on 
        which a State first adopts a capacity development strategy under 
        this subsection, and every 3 years thereafter, the head of the 
        State agency that has primary responsibility to carry out this 
        title in the State shall submit to the Governor a report that 
        shall also be available to the public on the efficacy of the 
        strategy and progress made toward improving the technical, 
        managerial, and financial capacity of public water systems in 
        the State.
            ``(4) Review.--The decisions of the State under this section 
        regarding any particular public water system are not subject to 
        review by the Administrator and may not serve as the basis for 
        withholding funds under section 1452.

    ``(d) Federal Assistance.--
            ``(1) In general.--The Administrator shall support the 
        States in developing capacity development strategies.
            ``(2) Informational assistance.--
                    ``(A) In general.--Not later than 180 days after the 
                date of enactment of this section, the Administrator 
                shall--
                          ``(i) <<NOTE: Review. Publication.>> conduct a 
                      review of State capacity development efforts in 
                      existence on the date of enactment of this section 
                      and publish information to assist States and 
                      public water systems in capacity development 
                      efforts; and
                          ``(ii) initiate a partnership with States, 
                      public water systems, and the public to develop 
                      information for States on recommended operator 
                      certification requirements.
                    ``(B) Publication of information.--The Administrator 
                shall publish the information developed through the 
                partnership under subparagraph (A)(ii) not later than 18 
                months after the date of enactment of this section.

[[Page 110 STAT. 1649]]

            ``(3) Promulgation of drinking water regulations.--In 
        promulgating a national primary drinking water regulation, the 
        Administrator shall include an analysis of the likely effect of 
        compliance with the regulation on the technical, financial, and 
        managerial capacity of public water systems.
            ``(4) <<NOTE: Publication.>> Guidance for new systems.--Not 
        later than 2 years after the date of enactment of this section, 
        the Administrator shall publish guidance developed in 
        consultation with the States describing legal authorities and 
        other means to ensure that all new community water systems and 
        new nontransient, noncommunity water systems demonstrate 
        technical, managerial, and financial capacity with respect to 
        national primary drinking water regulations.

    ``(e) Variances and Exemptions.--Based on information obtained under 
subsection (c)(3), the Administrator shall, as appropriate, modify 
regulations concerning variances and exemptions for small public water 
systems to ensure flexibility in the use of the variances and 
exemptions. Nothing in this subsection shall be interpreted, construed, 
or applied to affect or alter the requirements of section 1415 or 1416.
    ``(f) Small Public Water Systems Technology Assistance Centers.--
            ``(1) Grant program.--The Administrator is authorized to 
        make grants to institutions of higher learning to establish and 
        operate small public water system technology assistance centers 
        in the United States.
            ``(2) Responsibilities of the centers.--The responsibilities 
        of the small public water system technology assistance centers 
        established under this subsection shall include the conduct of 
        training and technical assistance relating to the information, 
        performance, and technical needs of small public water systems 
        or public water systems that serve Indian Tribes.
            ``(3) Applications.--Any institution of higher learning 
        interested in receiving a grant under this subsection shall 
        submit to the Administrator an application in such form and 
        containing such information as the Administrator may require by 
        regulation.
            ``(4) Selection criteria.--The Administrator shall select 
        recipients of grants under this subsection on the basis of the 
        following criteria:
                    ``(A) The small public water system technology 
                assistance center shall be located in a State that is 
                representative of the needs of the region in which the 
                State is located for addressing the drinking water needs 
                of small and rural communities or Indian Tribes.
                    ``(B) The grant recipient shall be located in a 
                region that has experienced problems, or may reasonably 
                be foreseen to experience problems, with small and rural 
                public water systems.
                    ``(C) The grant recipient shall have access to 
                expertise in small public water system technology 
                management.
                    ``(D) The grant recipient shall have the capability 
                to disseminate the results of small public water system 
                technology and training programs.
                    ``(E) The projects that the grant recipient proposes 
                to carry out under the grant are necessary and 
                appropriate.

[[Page 110 STAT. 1650]]

                    ``(F) The grant recipient has regional support 
                beyond the host institution.
            ``(5) Consortia of states.--At least 2 of the grants under 
        this subsection shall be made to consortia of States with low 
        population densities.
            ``(6) Authorization of appropriations.--There are authorized 
        to be appropriated to make grants under this subsection 
        $2,000,000 for each of the fiscal years 1997 through 1999, and 
        $5,000,000 for each of the fiscal years 2000 through 2003.

    ``(g) Environmental Finance Centers.--
            ``(1) In general.--The Administrator shall provide initial 
        funding for one or more university-based environmental finance 
        centers for activities that provide technical assistance to 
        State and local officials in developing the capacity of public 
        water systems. Any such funds shall be used only for activities 
        that are directly related to this title.
            ``(2) <<NOTE: Establishment.>> National capacity development 
        clearinghouse.--The Administrator shall establish a national 
        public water system capacity development clearinghouse to 
        receive and disseminate information with respect to developing, 
        improving, and maintaining financial and managerial capacity at 
        public water systems. The Administrator shall ensure that the 
        clearinghouse does not duplicate other federally supported 
        clearinghouse activities.
            ``(3) Capacity development techniques.--The Administrator 
        may request an environmental finance center funded under 
        paragraph (1) to develop and test managerial, financial, and 
        institutional techniques for capacity development. The 
        techniques may include capacity assessment methodologies, manual 
        and computer based public water system rate models and capital 
        planning models, public water system consolidation procedures, 
        and regionalization models.
            ``(4) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this subsection $1,500,000 for 
        each of the fiscal years 1997 through 2003.
            ``(5) Limitation.--No portion of any funds made available 
        under this subsection may be used for lobbying expenses.''.

SEC. 120. AUTHORIZATION OF APPROPRIATIONS FOR CERTAIN GROUND WATER 
            PROGRAMS.

    (a) Critical Aquifer Protection.--Section 1427 (42 U.S.C. 300h-6) is 
amended as follows:
            (1) Subsection (b)(1) is amended by striking ``not later 
        than 24 months after the enactment of the Safe Drinking Water 
        Act Amendments of 1986''.
            (2) The table in subsection (m) is amended by adding at the 
        end the following:

        ``1992-2003.......................................15,000,000.''.

    (b) Wellhead Protection Areas.--The table in section 1428(k) (42 
U.S.C. 300h-7(k)) is amended by adding at the end the following:

        ``1992-2003.......................................30,000,000.''.

[[Page 110 STAT. 1651]]

    (c) Underground Injection Control Grant.--The table in section 
1443(b)(5) (42 U.S.C. 300j-2(b)(5)) is amended by adding at the end the 
following:

        ``1992-2003.......................................15,000,000.''.

SEC. 121. AMENDMENTS TO SECTION 1442.

    Section 1442 (42 U.S.C. 300j-1) is amended--
            (1) by redesignating paragraph (3) of subsection (b) as 
        paragraph (3) of subsection (d) and moving such paragraph to 
        appear after paragraph (2) of subsection (d);
            (2) by striking subsection (b) (as so amended);
            (3) by redesignating subparagraph (B) of subsection (a)(2) 
        as subsection (b) and moving such subsection to appear after 
        subsection (a);
            (4) in subsection (a)--
                    (A) by striking paragraph (2) (as so amended) and 
                inserting the following:
            ``(2) Information and research facilities.--In carrying out 
        this title, the Administrator is authorized to--
                    ``(A) collect and make available information 
                pertaining to research, investigations, and 
                demonstrations with respect to providing a dependably 
                safe supply of drinking water, together with appropriate 
                recommendations in connection with the information; and
                    ``(B) make available research facilities of the 
                Agency to appropriate public authorities, institutions, 
                and individuals engaged in studies and research relating 
                to this title.'';
                    (B) by striking paragraph (3); and
                    (C) by redesignating paragraph (11) as paragraph (3) 
                and moving such paragraph to appear before paragraph 
                (4).

SEC. 122. TECHNICAL ASSISTANCE.

    Section 1442(e) (42 U.S.C. 300j-1(e)) is amended to read as follows:
    ``(e) Technical Assistance.--The Administrator may provide technical 
assistance to small public water systems to enable such systems to 
achieve and maintain compliance with applicable national primary 
drinking water regulations. Such assistance may include circuit-rider 
and multi-State regional technical assistance programs, training, and 
preliminary engineering evaluations. The Administrator shall ensure that 
technical assistance pursuant to this subsection is available in each 
State. <<NOTE: Nonprofit organizations.>> Each nonprofit organization 
receiving assistance under this subsection shall consult with the State 
in which the assistance is to be expended or otherwise made available 
before using assistance to undertake activities to carry out this 
subsection. <<NOTE: Appropriation authorization.>> There are authorized 
to be appropriated to the Administrator to be used for such technical 
assistance $15,000,000 for each of the fiscal years 1997 through 2003. 
No portion of any State loan fund established under section 1452 
(relating to State loan funds) and no portion of any funds made 
available under this subsection may be used for lobbying expenses. Of 
the total amount appropriated under this subsection, 3 percent shall be 
used for technical assistance to public water systems owned or operated 
by Indian Tribes.''.

[[Page 110 STAT. 1652]]

SEC. 123. OPERATOR CERTIFICATION.

    Part B (42 U.S.C. 300g et seq.) is amended by adding the following 
after section 1418:

                        ``operator certification

    ``Sec. 1419. <<NOTE: Federal Register, publication. 42 USC 300g-
8.>> (a) Guidelines.--Not later than 30 months after the date of 
enactment of the Safe Drinking Water Act Amendments of 1996 and in 
cooperation with the States, the Administrator shall publish guidelines 
in the Federal Register, after notice and opportunity for comment from 
interested persons, including States and public water systems, 
specifying minimum standards for certification (and recertification) of 
the operators of community and nontransient noncommunity public water 
systems. Such guidelines shall take into account existing State 
programs, the complexity of the system, and other factors aimed at 
providing an effective program at reasonable cost to States and public 
water systems, taking into account the size of the system.

    ``(b) State Programs.--Beginning 2 years after the date on which the 
Administrator publishes guidelines under subsection (a), the 
Administrator shall withhold 20 percent of the funds a State is 
otherwise entitled to receive under section 1452 unless the State has 
adopted and is implementing a program for the certification of operators 
of community and nontransient noncommunity public water systems that 
meets the requirements of the guidelines published pursuant to 
subsection (a) or that has been submitted in compliance with subsection 
(c) and that has not been disapproved.
    ``(c) Existing Programs.--For any State exercising primary 
enforcement responsibility for public water systems or any other State 
which has an operator certification program, the guidelines under 
subsection (a) shall allow the State to enforce such program in lieu of 
the guidelines under subsection (a) if the State submits the program to 
the Administrator within 18 months after the publication of the 
guidelines unless the Administrator determines (within 9 months after 
the State submits the program to the Administrator) that such program is 
not substantially equivalent to such guidelines. In making this 
determination, an existing State program shall be presumed to be 
substantially equivalent to the guidelines, notwithstanding program 
differences, based on the size of systems or the quality of source 
water, providing the State program meets the overall public health 
objectives of the guidelines. If disapproved, the program may be 
resubmitted within 6 months after receipt of notice of disapproval.
    ``(d) Expense Reimbursement.--
            ``(1) In general.--The Administrator shall provide 
        reimbursement for the costs of training, including an 
        appropriate per diem for unsalaried operators, and certification 
        for persons operating systems serving 3,300 persons or fewer 
        that are required to undergo training pursuant to this section.
            ``(2) State grants.--The reimbursement shall be provided 
        through grants to States with each State receiving an amount 
        sufficient to cover the reasonable costs for training all such 
        operators in the State, as determined by the Administrator, to 
        the extent required by this section. Grants received by a State 
        pursuant to this paragraph shall first be used to provide 
        reimbursement for training and certification costs of persons 
        operating systems serving 3,300 persons or fewer. If a State

[[Page 110 STAT. 1653]]

        has reimbursed all such costs, the State may, after notice to 
        the Administrator, use any remaining funds from the grant for 
        any of the other purposes authorized for grants under section 
        1452.
            ``(3) Authorization.--There are authorized to be 
        appropriated to the Administrator to provide grants for 
        reimbursement under this section $30,000,000 for each of fiscal 
        years 1997 through 2003.
            ``(4) Reservation.--If the appropriation made pursuant to 
        paragraph (3) for any fiscal year is not sufficient to satisfy 
        the requirements of paragraph (1), the Administrator shall, 
        prior to any other allocation or reservation, reserve such sums 
        as necessary from the funds appropriated pursuant to section 
        1452(m) to provide reimbursement for the training and 
        certification costs mandated by this subsection.''.

SEC. 124. PUBLIC WATER SYSTEM SUPERVISION PROGRAM.

    Section 1443(a) (42 U.S.C. 300j-2(a)) is amended as follows:
            (1) Paragraph (7) is amended to read as follows:
            ``(7) Authorization.--For the purpose of making grants under 
        paragraph (1), there are authorized to be appropriated 
        $100,000,000 for each of fiscal years 1997 through 2003.''.
            (2) By adding at the end the following:
            ``(8) Reservation of funds by the administrator.--If the 
        Administrator assumes the primary enforcement responsibility of 
        a State public water system supervision program, the 
        Administrator may reserve from funds made available pursuant to 
        this subsection an amount equal to the amount that would 
        otherwise have been provided to the State pursuant to this 
        subsection. The Administrator shall use the funds reserved 
        pursuant to this paragraph to ensure the full and effective 
        administration of a public water system supervision program in 
        the State.
            ``(9) State loan funds.--
                    ``(A) Reservation of funds.--For any fiscal year for 
                which the amount made available to the Administrator by 
                appropriations to carry out this subsection is less than 
                the amount that the Administrator determines is 
                necessary to supplement funds made available pursuant to 
                paragraph (8) to ensure the full and effective 
                administration of a public water system supervision 
                program in a State, the Administrator may reserve from 
                the funds made available to the State under section 1452 
                (relating to State loan funds) an amount that is equal 
                to the amount of the shortfall. This paragraph shall not 
                apply to any State not exercising primary enforcement 
                responsibility for public water systems as of the date 
                of enactment of the Safe Drinking Water Act Amendments 
                of 1996.
                    ``(B) Duty of administrator.--If the Administrator 
                reserves funds from the allocation of a State under 
                subparagraph (A), the Administrator shall carry out in 
                the State each of the activities that would be required 
                of the State if the State had primary enforcement 
                authority under section 1413.''.

SEC. 125. MONITORING AND INFORMATION GATHERING.

    (a) Review of Existing Requirements.--Paragraph (1) of section 
1445(a) (42 U.S.C. 300j-4(a)(1)) is amended to read as follows:

[[Page 110 STAT. 1654]]

    ``(1)(A) <<NOTE: Records.>> Every person who is subject to any 
requirement of this title or who is a grantee, shall establish and 
maintain such records, make such reports, conduct such monitoring, and 
provide such information as the Administrator may reasonably require by 
regulation to assist the Administrator in establishing regulations under 
this title, in determining whether such person has acted or is acting in 
compliance with this title, in administering any program of financial 
assistance under this title, in evaluating the health risks of 
unregulated contaminants, or in advising the public of such risks. In 
requiring a public water system to monitor under this subsection, the 
Administrator may take into consideration the system size and the 
contaminants likely to be found in the system's drinking water.

    ``(B) Every person who is subject to a national primary drinking 
water regulation under section 1412 shall provide such information as 
the Administrator may reasonably require, after consultation with the 
State in which such person is located if such State has primary 
enforcement responsibility for public water systems, on a case-by-case 
basis, to determine whether such person has acted or is acting in 
compliance with this title.
    ``(C) Every person who is subject to a national primary drinking 
water regulation under section 1412 shall provide such information as 
the Administrator may reasonably require to assist the Administrator in 
establishing regulations under section 1412 of this title, after 
consultation with States and suppliers of water. The Administrator may 
not require under this subparagraph the installation of treatment 
equipment or process changes, the testing of treatment technology, or 
the analysis or processing of monitoring samples, except where the 
Administrator provides the funding for such activities. Before 
exercising this authority, the Administrator shall first seek to obtain 
the information by voluntary submission.
    ``(D) <<NOTE: Regulations.>> The Administrator shall not later than 
2 years after the date of enactment of this subparagraph, after 
consultation with public health experts, representatives of the general 
public, and officials of State and local governments, review the 
monitoring requirements for not fewer than 12 contaminants identified by 
the Administrator, and promulgate any necessary modifications.''.

    (b) Monitoring Relief.--Part B is amended by adding the following 
new section after section 1417 (42 U.S.C. 300g-6):

                      ``monitoring of contaminants

    ``Sec. 1418. <<NOTE: 42 USC 300g-7.>> (a) Interim Monitoring Relief 
Authority.--
            ``(1) In general.--A State exercising primary enforcement 
        responsibility for public water systems may modify the 
        monitoring requirements for any regulated or unregulated 
        contaminants for which monitoring is required other than 
        microbial contaminants (or indicators thereof), disinfectants 
        and disinfection byproducts or corrosion byproducts for an 
        interim period to provide that any public water system serving 
        10,000 persons or fewer shall not be required to conduct 
        additional quarterly monitoring during an interim relief period 
        for such contaminants if--
                    ``(A) monitoring, conducted at the beginning of the 
                period for the contaminant concerned and certified to 
                the State by the public water system, fails to detect 
                the presence of the contaminant in the ground or surface 
                water supplying the public water system; and

[[Page 110 STAT. 1655]]

                    ``(B) the State, considering the hydrogeology of the 
                area and other relevant factors, determines in writing 
                that the contaminant is unlikely to be detected by 
                further monitoring during such period.
            ``(2) Termination; timing of monitoring.--The interim relief 
        period referred to in paragraph (1) shall terminate when 
        permanent monitoring relief is adopted and approved for such 
        State, or at the end of 36 months after the date of enactment of 
        the Safe Drinking Water Act Amendments of 1996, whichever comes 
        first. In order to serve as a basis for interim relief, the 
        monitoring conducted at the beginning of the period must occur 
        at the time determined by the State to be the time of the public 
        water system's greatest vulnerability to the contaminant 
        concerned in the relevant ground or surface water, taking into 
        account in the case of pesticides the time of application of the 
        pesticide for the source water area and the travel time for the 
        pesticide to reach such waters and taking into account, in the 
        case of other contaminants, seasonality of precipitation and 
        contaminant travel time.

    ``(b) Permanent Monitoring Relief Authority.--
            ``(1) In general.--Each State exercising primary enforcement 
        responsibility for public water systems under this title and 
        having an approved source water assessment program may adopt, in 
        accordance with guidance published by the Administrator, 
        tailored alternative monitoring requirements for public water 
        systems in such State (as an alternative to the monitoring 
        requirements for chemical contaminants set forth in the 
        applicable national primary drinking water regulations) where 
        the State concludes that (based on data available at the time of 
        adoption concerning susceptibility, use, occurrence, or wellhead 
        protection, or from the State's drinking water source water 
        assessment program) such alternative monitoring would provide 
        assurance that it complies with the Administrator's guidelines. 
        The State program must be adequate to assure compliance with, 
        and enforcement of, applicable national primary drinking water 
        regulations. Alternative monitoring shall not apply to regulated 
        microbiological contaminants (or indicators thereof), 
        disinfectants and disinfection byproducts, or corrosion 
        byproducts. The preceding sentence is not intended to limit 
        other authority of the Administrator under other provisions of 
        this title to grant monitoring flexibility.
            ``(2) Guidelines.--
                    ``(A) In general.--The Administrator shall issue, 
                after notice and comment and at the same time as 
                guidelines are issued for source water assessment under 
                section 1453, guidelines for States to follow in 
                proposing alternative monitoring requirements under 
                paragraph (1) for chemical contaminants. <<NOTE: Federal 
                Register, publication.>> The Administrator shall publish 
                such guidelines in the Federal Register. The guidelines 
                shall assure that the public health will be protected 
                from drinking water contamination. The guidelines shall 
                require that a State alternative monitoring program 
                apply on a contaminant-by-contaminant basis and that, to 
                be eligible for such alternative monitoring program, a 
                public water system must show the State that the 
                contaminant is not present in the drinking water supply 
                or, if present, it is reliably and consistently below 
                the maximum contaminant level.

[[Page 110 STAT. 1656]]

                    ``(B) Definition.--For purposes of subparagraph (A), 
                the phrase `reliably and consistently below the maximum 
                contaminant level' means that, although contaminants 
                have been detected in a water supply, the State has 
                sufficient knowledge of the contamination source and 
                extent of contamination to predict that the maximum 
                contaminant level will not be exceeded. In determining 
                that a contaminant is reliably and consistently below 
                the maximum contaminant level, States shall consider the 
                quality and completeness of data, the length of time 
                covered and the volatility or stability of monitoring 
                results during that time, and the proximity of such 
                results to the maximum contaminant level. Wide 
                variations in the analytical results, or analytical 
                results close to the maximum contaminant level, shall 
                not be considered to be reliably and consistently below 
                the maximum contaminant level.
            ``(3) Effect of detection of contaminants.--The guidelines 
        issued by the Administrator under paragraph (2) shall require 
        that if, after the monitoring program is in effect and 
        operating, a contaminant covered by the alternative monitoring 
        program is detected at levels at or above the maximum 
        contaminant level or is no longer reliably or consistently below 
        the maximum contaminant level, the public water system must 
        either--
                    ``(A) demonstrate that the contamination source has 
                been removed or that other action has been taken to 
                eliminate the contamination problem; or
                    ``(B) test for the detected contaminant pursuant to 
                the applicable national primary drinking water 
                regulation.
            ``(4) States not exercising primary enforcement 
        responsibility.--The Governor of any State not exercising 
        primary enforcement responsibility under section 1413 on the 
        date of enactment of this section may submit to the 
        Administrator a request that the Administrator modify the 
        monitoring requirements established by the Administrator and 
        applicable to public water systems in that State. After 
        consultation with the Governor, the Administrator shall modify 
        the requirements for public water systems in that State if the 
        request of the Governor is in accordance with each of the 
        requirements of this subsection that apply to alternative 
        monitoring requirements established by States that have primary 
        enforcement responsibility. A decision by the Administrator to 
        approve a request under this clause shall be for a period of 3 
        years and may subsequently be extended for periods of 5 years.

    ``(c) Treatment as NPDWR.--All monitoring relief granted by a State 
to a public water system for a regulated contaminant under subsection 
(a) or (b) shall be treated as part of the national primary drinking 
water regulation for that contaminant.
    ``(d) Other Monitoring Relief.--Nothing in this section shall be 
construed to affect the authority of the States under applicable 
national primary drinking water regulations to alter monitoring 
requirements through waivers or other existing authorities. The 
Administrator shall periodically review and, as appropriate, revise such 
authorities.''.
    (c) Unregulated Contaminants.--Section 1445(a) (42 U.S.C. 300j-4(a)) 
is amended by striking paragraphs (2) through (8) and inserting the 
following:

[[Page 110 STAT. 1657]]

            ``(2) Monitoring program for unregulated contaminants.--
                    ``(A) <<NOTE: Regulations.>> Establishment.--The 
                Administrator shall promulgate regulations establishing 
                the criteria for a monitoring program for unregulated 
                contaminants. The regulations shall require monitoring 
                of drinking water supplied by public water systems and 
                shall vary the frequency and schedule for monitoring 
                requirements for systems based on the number of persons 
                served by the system, the source of supply, and the 
                contaminants likely to be found, ensuring that only a 
                representative sample of systems serving 10,000 persons 
                or fewer are required to monitor.
                    ``(B) Monitoring program for certain unregulated 
                contaminants.--
                          ``(i) <<NOTE: Records.>> Initial list.--Not 
                      later than 3 years after the date of enactment of 
                      the Safe Drinking Water Act Amendments of 1996 and 
                      every 5 years thereafter, the Administrator shall 
                      issue a list pursuant to subparagraph (A) of not 
                      more than 30 unregulated contaminants to be 
                      monitored by public water systems and to be 
                      included in the national drinking water occurrence 
                      data base maintained pursuant to subsection (g).
                          ``(ii) Governors' petition.--The Administrator 
                      shall include among the list of contaminants for 
                      which monitoring is required under this paragraph 
                      each contaminant recommended in a petition signed 
                      by the Governor of each of 7 or more States, 
                      unless the Administrator determines that the 
                      action would prevent the listing of other 
                      contaminants of a higher public health concern.
                    ``(C) Monitoring plan for small and medium 
                systems.--
                          ``(i) In general.--Based on the regulations 
                      promulgated by the Administrator, each State may 
                      develop a representative monitoring plan to assess 
                      the occurrence of unregulated contaminants in 
                      public water systems that serve a population of 
                      10,000 or fewer in that State. The plan shall 
                      require monitoring for systems representative of 
                      different sizes, types, and geographic locations 
                      in the State.
                          ``(ii) Grants for small system costs.--From 
                      funds reserved under section 1452(o) or 
                      appropriated under subparagraph (H), the 
                      Administrator shall pay the reasonable cost of 
                      such testing and laboratory analysis as are 
                      necessary to carry out monitoring under the plan.
                    ``(D) Monitoring results.--Each public water system 
                that conducts monitoring of unregulated contaminants 
                pursuant to this paragraph shall provide the results of 
                the monitoring to the primary enforcement authority for 
                the system.
                    ``(E) Notification.--Notification of the 
                availability of the results of monitoring programs 
                required under paragraph (2)(A) shall be given to the 
                persons served by the system.

[[Page 110 STAT. 1658]]

                    ``(F) Waiver of monitoring requirement.--The 
                Administrator shall waive the requirement for monitoring 
                for a contaminant under this paragraph in a State, if 
                the State demonstrates that the criteria for listing the 
                contaminant do not apply in that State.
                    ``(G) Analytical methods.--The State may use 
                screening methods approved by the Administrator under 
                subsection (i) in lieu of monitoring for particular 
                contaminants under this paragraph.
                    ``(H) Authorization of appropriations.--There are 
                authorized to be appropriated to carry out this 
                paragraph $10,000,000 for each of the fiscal years 1997 
                through 2003.''.

    (d) Screening Methods.--Section 1445 (42 U.S.C. 300j-4) is amended 
by adding the following after subsection (h):
    ``(i) Screening Methods.--The Administrator shall review new 
analytical methods to screen for regulated contaminants and may approve 
such methods as are more accurate or cost-effective than established 
reference methods for use in compliance monitoring.''.

SEC. 126. OCCURRENCE DATA BASE.

    Section 1445 (42 U.S.C. 300j-4) is amended by adding the following 
new subsection after subsection (f):
    ``(g) Occurrence Data Base.--
            ``(1) In general.--Not later than 3 years after the date of 
        enactment of the Safe Drinking Water Act Amendments of 1996, the 
        Administrator shall assemble and maintain a national drinking 
        water contaminant occurrence data base, using information on the 
        occurrence of both regulated and unregulated contaminants in 
        public water systems obtained under subsection (a)(1)(A) or 
        subsection (a)(2) and reliable information from other public and 
        private sources.
            ``(2) Public input.--In establishing the occurrence data 
        base, the Administrator shall solicit recommendations from the 
        Science Advisory Board, the States, and other interested parties 
        concerning the development and maintenance of a national 
        drinking water contaminant occurrence data base, including such 
        issues as the structure and design of the data base, data input 
        parameters and requirements, and the use and interpretation of 
        data.
            ``(3) Use.--The data shall be used by the Administrator in 
        making determinations under section 1412(b)(1) with respect to 
        the occurrence of a contaminant in drinking water at a level of 
        public health concern.
            ``(4) Public recommendations.--The Administrator shall 
        periodically solicit recommendations from the appropriate 
        officials of the National Academy of Sciences and the States, 
        and any person may submit recommendations to the Administrator, 
        with respect to contaminants that should be included in the 
        national drinking water contaminant occurrence data base, 
        including recommendations with respect to additional unregulated 
        contaminants that should be listed under subsection (a)(2). Any 
        recommendation submitted under this clause shall be accompanied 
        by reasonable documentation that--
                    ``(A) the contaminant occurs or is likely to occur 
                in drinking water; and
                    ``(B) the contaminant poses a risk to public health.

[[Page 110 STAT. 1659]]

            ``(5) Public availability.--The information from the data 
        base shall be available to the public in readily accessible 
        form.
            ``(6) Regulated contaminants.--With respect to each 
        contaminant for which a national primary drinking water 
        regulation has been established, the data base shall include 
        information on the detection of the contaminant at a 
        quantifiable level in public water systems (including detection 
        of the contaminant at levels not constituting a violation of the 
        maximum contaminant level for the contaminant).
            ``(7) Unregulated contaminants.--With respect to 
        contaminants for which a national primary drinking water 
        regulation has not been established, the data base shall 
        include--
                    ``(A) monitoring information collected by public 
                water systems that serve a population of more than 
                10,000, as required by the Administrator under 
                subsection (a);
                    ``(B) monitoring information collected from a 
                representative sampling of public water systems that 
                serve a population of 10,000 or fewer; and
                    ``(C) other reliable and appropriate monitoring 
                information on the occurrence of the contaminants in 
                public water systems that is available to the 
                Administrator.''.

SEC. 127. DRINKING WATER ADVISORY COUNCIL.

    The second sentence of section 1446(a) <<NOTE: 42 USC 300j-5.>> (42 
U.S.C. 300j-6(a)) is amended by inserting before the period at the end 
the following: ``, of which two such members shall be associated with 
small, rural public water systems''.

SEC. 128. NEW YORK CITY WATERSHED PROTECTION PROGRAM.

    Section 1443 (42 U.S.C. 300j-2) is amended by adding at the end the 
following:
    ``(d) New York City Watershed Protection Program.--
            ``(1) In general.--The Administrator is authorized to 
        provide financial assistance to the State of New York for 
        demonstration projects implemented as part of the watershed 
        program for the protection and enhancement of the quality of 
        source waters of the New York City water supply system, 
        including projects that demonstrate, assess, or provide for 
        comprehensive monitoring and surveillance and projects necessary 
        to comply with the criteria for avoiding filtration contained in 
        40 CFR 141.71. Demonstration projects which shall be eligible 
        for financial assistance shall be certified to the Administrator 
        by the State of New York as satisfying the purposes of this 
        subsection. In certifying projects to the Administrator, the 
        State of New York shall give priority to monitoring projects 
        that have undergone peer review.
            ``(2) Report.--Not later than 5 years after the date on 
        which the Administrator first provides assistance pursuant to 
        this paragraph, the Governor of the State of New York shall 
        submit a report to the Administrator on the results of projects 
        assisted.
            ``(3) Matching requirements.--Federal assistance provided 
        under this subsection shall not exceed 50 percent of the total 
        cost of the protection program being carried out for any 
        particular watershed or ground water recharge area.
            ``(4) Authorization.--There are authorized to be 
        appropriated to the Administrator to carry out this subsection 
        for

[[Page 110 STAT. 1660]]

        each of fiscal years 1997 through 2003, $15,000,000 for the 
        purpose of providing assistance to the State of New York to 
        carry out paragraph (1).''.

SEC. 129. FEDERAL AGENCIES.

    (a) In General.--Section 1447 (42 U.S.C. 300j-6) is amended by 
redesignating subsection (c) as subsection (d) and by striking 
subsections (a) and (b) and inserting the following:
    ``(a) In General.--Each department, agency, and instrumentality of 
the executive, legislative, and judicial branches of the Federal 
Government--
            ``(1) owning or operating any facility in a wellhead 
        protection area;
            ``(2) engaged in any activity at such facility resulting, or 
        which may result, in the contamination of water supplies in any 
        such area;
            ``(3) owning or operating any public water system; or
            ``(4) engaged in any activity resulting, or which may result 
        in, underground injection which endangers drinking water (within 
        the meaning of section 1421(d)(2)),

shall be subject to, and comply with, all Federal, State, interstate, 
and local requirements, both substantive and procedural (including any 
requirement for permits or reporting or any provisions for injunctive 
relief and such sanctions as may be imposed by a court to enforce such 
relief), respecting the protection of such wellhead areas, respecting 
such public water systems, and respecting any underground injection in 
the same manner and to the same extent as any person is subject to such 
requirements, including the payment of reasonable service charges. The 
Federal, State, interstate, and local substantive and procedural 
requirements referred to in this subsection include, but are not limited 
to, all administrative orders and all civil and administrative penalties 
and fines, regardless of whether such penalties or fines are punitive or 
coercive in nature or are imposed for isolated, intermittent, or 
continuing violations. The United States hereby expressly waives any 
immunity otherwise applicable to the United States with respect to any 
such substantive or procedural requirement (including, but not limited 
to, any injunctive relief, administrative order or civil or 
administrative penalty or fine referred to in the preceding sentence, or 
reasonable service charge). The reasonable service charges referred to 
in this subsection include, but are not limited to, fees or charges 
assessed in connection with the processing and issuance of permits, 
renewal of permits, amendments to permits, review of plans, studies, and 
other documents, and inspection and monitoring of facilities, as well as 
any other nondiscriminatory charges that are assessed in connection with 
a Federal, State, interstate, or local regulatory program respecting the 
protection of wellhead areas or public water systems or respecting any 
underground injection. Neither the United States, nor any agent, 
employee, or officer thereof, shall be immune or exempt from any process 
or sanction of any State or Federal Court with respect to the 
enforcement of any such injunctive relief. No agent, employee, or 
officer of the United States shall be personally liable for any civil 
penalty under any Federal, State, interstate, or local law concerning 
the protection of wellhead areas or public water systems or concerning 
underground injection with respect to any act or omission within the 
scope of the official duties of the agent, employee, or officer.

[[Page 110 STAT. 1661]]

An agent, employee, or officer of the United States shall be subject to 
any criminal sanction (including, but not limited to, any fine or 
imprisonment) under any Federal or State requirement adopted pursuant to 
this title, but no department, agency, or instrumentality of the 
executive, legislative, or judicial branch of the Federal Government 
shall be subject to any such sanction. The President may exempt any 
facility of any department, agency, or instrumentality in the executive 
branch from compliance with such a requirement if he determines it to be 
in the paramount interest of the United States to do so. No such 
exemption shall be granted due to lack of appropriation unless the 
President shall have specifically requested such appropriation as a part 
of the budgetary process and the Congress shall have failed to make 
available such requested appropriation. Any exemption shall be for a 
period not in excess of 1 year, but additional exemptions may be granted 
for periods not to exceed 1 year upon the President's making a new 
determination. <<NOTE: President. Reports.>> The President shall report 
each January to the Congress all exemptions from the requirements of 
this section granted during the preceding calendar year, together with 
his reason for granting each such exemption.

    ``(b) Administrative Penalty Orders.--
            ``(1) In general.--If the Administrator finds that a Federal 
        agency has violated an applicable requirement under this title, 
        the Administrator may issue a penalty order assessing a penalty 
        against the Federal agency.
            ``(2) Penalties.--The Administrator may, after notice to the 
        agency, assess a civil penalty against the agency in an amount 
        not to exceed $25,000 per day per violation.
            ``(3) Procedure.--Before an administrative penalty order 
        issued under this subsection becomes final, the Administrator 
        shall provide the agency an opportunity to confer with the 
        Administrator and shall provide the agency notice and an 
        opportunity for a hearing on the record in accordance with 
        chapters 5 and 7 of title 5, United States Code.
            ``(4) Public review.--
                    ``(A) In general.--Any interested person may obtain 
                review of an administrative penalty order issued under 
                this subsection. The review may be obtained in the 
                United States District Court for the District of 
                Columbia or in the United States District Court for the 
                district in which the violation is alleged to have 
                occurred by the filing of a complaint with the court 
                within the 30-day period beginning on the date the 
                penalty order becomes final. The person filing the 
                complaint shall simultaneously send a copy of the 
                complaint by certified mail to the Administrator and the 
                Attorney General.
                    ``(B) Record.--The Administrator shall promptly file 
                in the court a certified copy of the record on which the 
                order was issued.
                    ``(C) Standard of review.--The court shall not set 
                aside or remand the order unless the court finds that 
                there is not substantial evidence in the record, taken 
                as a whole, to support the finding of a violation or 
                that the assessment of the penalty by the Administrator 
                constitutes an abuse of discretion.
                    ``(D) Prohibition on additional penalties.--The 
                court may not impose an additional civil penalty for a

[[Page 110 STAT. 1662]]

                violation that is subject to the order unless the court 
                finds that the assessment constitutes an abuse of 
                discretion by the Administrator.

    ``(c) Limitation on State Use of Funds Collected From Federal 
Government.--Unless a State law in effect on the date of enactment of 
the Safe Drinking Water Act Amendments of 1996 or a State constitution 
requires the funds to be used in a different manner, all funds collected 
by a State from the Federal Government from penalties and fines imposed 
for violation of any substantive or procedural requirement referred to 
in subsection (a) shall be used by the State only for projects designed 
to improve or protect the environment or to defray the costs of 
environmental protection or enforcement.''.
    (b) Citizen Enforcement.--(1) The first sentence of section 1449(a) 
(42 U.S.C. 300j-8(a)) is amended--
            (A) in paragraph (1), by striking ``, or'' and inserting a 
        semicolon;
            (B) in paragraph (2), by striking the period at the end and 
        inserting ``; or''; and
            (C) by adding at the end the following:
            ``(3) for the collection of a penalty by the United States 
        Government (and associated costs and interest) against any 
        Federal agency that fails, by the date that is 18 months after 
        the effective date of a final order to pay a penalty assessed by 
        the Administrator under section 1429(b), to pay the penalty.''.

    (2) Subsection (b) of section 1449 (42 U.S.C. 300j-8(b)) is amended 
by striking the period at the end of paragraph (2) and inserting ``; 
or'' and by adding the following new paragraph after paragraph (2):
            ``(3) under subsection (a)(3) prior to 60 days after the 
        plaintiff has given notice of such action to the Attorney 
        General and to the Federal agency.''.

    (c) Washington Aqueduct.--Section 1447 (42 U.S.C. 300j-6) is amended 
by adding at the end the following:
    ``(e) Washington Aqueduct.--The Secretary of the Army shall not pass 
the cost of any penalty assessed under this title on to any customer, 
user, or other purchaser of drinking water from the Washington Aqueduct 
system, including finished water from the Dalecarlia or McMillan 
treatment plant.''.

SEC. 130. STATE REVOLVING LOAN FUNDS.

    Part E (42 U.S.C. 300j et seq.) is amended by adding the following 
new section after section 1451:

                      ``state revolving loan funds

    ``Sec. 1452. <<NOTE: 42 USC 300j-12.>> (a) General Authority.--
            ``(1) Grants to states to establish state loan funds.--
                    ``(A) In general.--The Administrator shall offer to 
                enter into agreements with eligible States to make 
                capitalization grants, including letters of credit, to 
                the States under this subsection to further the health 
                protection objectives of this title, promote the 
                efficient use of fund resources, and for other purposes 
                as are specified in this title.
                    ``(B) Establishment of fund.--To be eligible to 
                receive a capitalization grant under this section, a 
                State shall

[[Page 110 STAT. 1663]]

                establish a drinking water treatment revolving loan fund 
                (referred to in this section as a `State loan fund') and 
                comply with the other requirements of this section. Each 
                grant to a State under this section shall be deposited 
                in the State loan fund established by the State, except 
                as otherwise provided in this section and in other 
                provisions of this title. No funds authorized by other 
                provisions of this title to be used for other purposes 
                specified in this title shall be deposited in any State 
                loan fund.
                    ``(C) Extended period.--The grant to a State shall 
                be available to the State for obligation during the 
                fiscal year for which the funds are authorized and 
                during the following fiscal year, except that grants 
                made available from funds provided prior to fiscal year 
                1997 shall be available for obligation during each of 
                the fiscal years 1997 and 1998.
                    ``(D) Allotment formula.--Except as otherwise 
                provided in this section, funds made available to carry 
                out this section shall be allotted to States that have 
                entered into an agreement pursuant to this section 
                (other than the District of Columbia) in accordance 
                with--
                          ``(i) for each of fiscal years 1995 through 
                      1997, a formula that is the same as the formula 
                      used to distribute public water system supervision 
                      grant funds under section 1443 in fiscal year 
                      1995, except that the minimum proportionate share 
                      established in the formula shall be 1 percent of 
                      available funds and the formula shall be adjusted 
                      to include a minimum proportionate share for the 
                      State of Wyoming and the District of Columbia; and
                          ``(ii) for fiscal year 1998 and each 
                      subsequent fiscal year, a formula that allocates 
                      to each State the proportional share of the State 
                      needs identified in the most recent survey 
                      conducted pursuant to subsection (h), except that 
                      the minimum proportionate share provided to each 
                      State shall be the same as the minimum 
                      proportionate share provided under clause (i).
                    ``(E) Reallotment.--The grants not obligated by the 
                last day of the period for which the grants are 
                available shall be reallotted according to the 
                appropriate criteria set forth in subparagraph (D), 
                except that the Administrator may reserve and allocate 
                10 percent of the remaining amount for financial 
                assistance to Indian Tribes in addition to the amount 
                allotted under subsection (i) and none of the funds 
                reallotted by the Administrator shall be reallotted to 
                any State that has not obligated all sums allotted to 
                the State pursuant to this section during the period in 
                which the sums were available for obligation.
                    ``(F) Nonprimacy states.--The State allotment for a 
                State not exercising primary enforcement responsibility 
                for public water systems shall not be deposited in any 
                such fund but shall be allotted by the Administrator 
                under this subparagraph. Pursuant to section 
                1443(a)(9)(A) such sums allotted under this subparagraph 
                shall be reserved as needed by the Administrator to 
                exercise primary enforcement responsibility under this 
                title in such State and the remainder shall be 
                reallotted to States exercising primary

[[Page 110 STAT. 1664]]

                enforcement responsibility for public water systems for 
                deposit in such funds. Whenever the Administrator makes 
                a final determination pursuant to section 1413(b) that 
                the requirements of section 1413(a) are no longer being 
                met by a State, additional grants for such State under 
                this title shall be immediately terminated by the 
                Administrator. This subparagraph shall not apply to any 
                State not exercising primary enforcement responsibility 
                for public water systems as of the date of enactment of 
                the Safe Drinking Water Act Amendments of 1996.
                    ``(G) Other programs.--
                          ``(i) New system capacity.--Beginning in 
                      fiscal year 1999, the Administrator shall withhold 
                      20 percent of each capitalization grant made 
                      pursuant to this section to a State unless the 
                      State has met the requirements of section 1420(a) 
                      (relating to capacity development) and shall 
                      withhold 10 percent for fiscal year 2001, 15 
                      percent for fiscal year 2002, and 20 percent for 
                      fiscal year 2003 if the State has not complied 
                      with the provisions of section 1420(c) (relating 
                      to capacity development strategies). Not more than 
                      a total of 20 percent of the capitalization grants 
                      made to a State in any fiscal year may be withheld 
                      under the preceding provisions of this clause. All 
                      funds withheld by the Administrator pursuant to 
                      this clause shall be reallotted by the 
                      Administrator on the basis of the same ratio as is 
                      applicable to funds allotted under subparagraph 
                      (D). None of the funds reallotted by the 
                      Administrator pursuant to this paragraph shall be 
                      allotted to a State unless the State has met the 
                      requirements of section 1420 (relating to capacity 
                      development).
                          ``(ii) Operator certification.--The 
                      Administrator shall withhold 20 percent of each 
                      capitalization grant made pursuant to this section 
                      unless the State has met the requirements of 1419 
                      (relating to operator certification). All funds 
                      withheld by the Administrator pursuant to this 
                      clause shall be reallotted by the Administrator on 
                      the basis of the same ratio as applicable to funds 
                      allotted under subparagraph (D). None of the funds 
                      reallotted by the Administrator pursuant to this 
                      paragraph shall be allotted to a State unless the 
                      State has met the requirements of section 1419 
                      (relating to operator certification).
            ``(2) Use of funds.--Except as otherwise authorized by this 
        title, amounts deposited in a State loan fund, including loan 
        repayments and interest earned on such amounts, shall be used 
        only for providing loans or loan guarantees, or as a source of 
        reserve and security for leveraged loans, the proceeds of which 
        are deposited in a State loan fund established under paragraph 
        (1), or other financial assistance authorized under this section 
        to community water systems and nonprofit noncommunity water 
        systems, other than systems owned by Federal agencies. Financial 
        assistance under this section may be used by a public water 
        system only for expenditures (not including monitoring, 
        operation, and maintenance expenditures) of a type or category 
        which the Administrator has determined, through guidance, will 
        facilitate compliance with

[[Page 110 STAT. 1665]]

        national primary drinking water regulations applicable to the 
        system under section 1412 or otherwise significantly further the 
        health protection objectives of this title. The funds may also 
        be used to provide loans to a system referred to in section 
        1401(4)(B) for the purpose of providing the treatment described 
        in section 1401(4)(B)(i)(III). The funds shall not be used for 
        the acquisition of real property or interests therein, unless 
        the acquisition is integral to a project authorized by this 
        paragraph and the purchase is from a willing seller. Of the 
        amount credited to any State loan fund established under this 
        section in any fiscal year, 15 percent shall be available solely 
        for providing loan assistance to public water systems which 
        regularly serve fewer than 10,000 persons to the extent such 
        funds can be obligated for eligible projects of public water 
        systems.
            ``(3) Limitation.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), no assistance under this section shall 
                be provided to a public water system that--
                          ``(i) does not have the technical, managerial, 
                      and financial capability to ensure compliance with 
                      the requirements of this title; or
                          ``(ii) is in significant noncompliance with 
                      any requirement of a national primary drinking 
                      water regulation or variance.
                    ``(B) Restructuring.--A public water system 
                described in subparagraph (A) may receive assistance 
                under this section if--
                          ``(i) the use of the assistance will ensure 
                      compliance; and
                          ``(ii) if subparagraph (A)(i) applies to the 
                      system, the owner or operator of the system agrees 
                      to undertake feasible and appropriate changes in 
                      operations (including ownership, management, 
                      accounting, rates, maintenance, consolidation, 
                      alternative water supply, or other procedures) if 
                      the State determines that the measures are 
                      necessary to ensure that the system has the 
                      technical, managerial, and financial capability to 
                      comply with the requirements of this title over 
                      the long term.
                    ``(C) Review.--Prior to providing assistance under 
                this section to a public water system that is in 
                significant noncompliance with any requirement of a 
                national primary drinking water regulation or variance, 
                the State shall conduct a review to determine whether 
                subparagraph (A)(i) applies to the system.

    ``(b) Intended Use Plans.--
            ``(1) In general.--After providing for public review and 
        comment, each State that has entered into a capitalization 
        agreement pursuant to this section shall annually prepare a plan 
        that identifies the intended uses of the amounts available to 
        the State loan fund of the State.
            ``(2) Contents.--An intended use plan shall include--
                    ``(A) a list of the projects to be assisted in the 
                first fiscal year that begins after the date of the 
                plan, including a description of the project, the 
                expected terms of financial assistance, and the size of 
                the community served;

[[Page 110 STAT. 1666]]

                    ``(B) the criteria and methods established for the 
                distribution of funds; and
                    ``(C) a description of the financial status of the 
                State loan fund and the short-term and long-term goals 
                of the State loan fund.
            ``(3) Use of funds.--
                    ``(A) In general.--An intended use plan shall 
                provide, to the maximum extent practicable, that 
                priority for the use of funds be given to projects 
                that--
                          ``(i) address the most serious risk to human 
                      health;
                          ``(ii) are necessary to ensure compliance with 
                      the requirements of this title (including 
                      requirements for filtration); and
                          ``(iii) assist systems most in need on a per 
                      household basis according to State affordability 
                      criteria.
                    ``(B) <<NOTE: Publications. Records.>> List of 
                projects.--Each State shall, after notice and 
                opportunity for public comment, publish and periodically 
                update a list of projects in the State that are eligible 
                for assistance under this section, including the 
                priority assigned to each project and, to the extent 
                known, the expected funding schedule for each project.

    ``(c) Fund Management.--Each State loan fund under this section 
shall be established, maintained, and credited with repayments and 
interest. The fund corpus shall be available in perpetuity for providing 
financial assistance under this section. To the extent amounts in the 
fund are not required for current obligation or expenditure, such 
amounts shall be invested in interest bearing obligations.
    ``(d) Assistance for Disadvantaged Communities.--
            ``(1) Loan subsidy.--Notwithstanding any other provision of 
        this section, in any case in which the State makes a loan 
        pursuant to subsection (a)(2) to a disadvantaged community or to 
        a community that the State expects to become a disadvantaged 
        community as the result of a proposed project, the State may 
        provide additional subsidization (including forgiveness of 
        principal).
            ``(2) Total amount of subsidies.--For each fiscal year, the 
        total amount of loan subsidies made by a State pursuant to 
        paragraph (1) may not exceed 30 percent of the amount of the 
        capitalization grant received by the State for the year.
            ``(3) Definition of disadvantaged community.--In this 
        subsection, the term `disadvantaged community' means the service 
        area of a public water system that meets affordability criteria 
        established after public review and comment by the State in 
        which the public water system is located. The Administrator may 
        publish information to assist States in establishing 
        affordability criteria.

    ``(e) State Contribution.--Each agreement under subsection (a) shall 
require that the State deposit in the State loan fund from State moneys 
an amount equal to at least 20 percent of the total amount of the grant 
to be made to the State on or before the date on which the grant payment 
is made to the State, except that a State shall not be required to 
deposit such amount into the fund prior to the date on which each grant 
payment is made for fiscal years 1994, 1995, 1996, and 1997 if the State 
deposits the State contribution amount into the State loan fund prior to 
September 30, 1999.

[[Page 110 STAT. 1667]]

    ``(f) Types of Assistance.--Except as otherwise limited by State 
law, the amounts deposited into a State loan fund under this section may 
be used only--
            ``(1) to make loans, on the condition that--
                    ``(A) the interest rate for each loan is less than 
                or equal to the market interest rate, including an 
                interest free loan;
                    ``(B) principal and interest payments on each loan 
                will commence not later than 1 year after completion of 
                the project for which the loan was made, and each loan 
                will be fully amortized not later than 20 years after 
                the completion of the project, except that in the case 
                of a disadvantaged community (as defined in subsection 
                (d)(3)), a State may provide an extended term for a 
                loan, if the extended term--
                          ``(i) terminates not later than the date that 
                      is 30 years after the date of project completion; 
                      and
                          ``(ii) does not exceed the expected design 
                      life of the project;
                    ``(C) the recipient of each loan will establish a 
                dedicated source of revenue (or, in the case of a 
                privately owned system, demonstrate that there is 
                adequate security) for the repayment of the loan; and
                    ``(D) the State loan fund will be credited with all 
                payments of principal and interest on each loan;
            ``(2) to buy or refinance the debt obligation of a 
        municipality or an intermunicipal or interstate agency within 
        the State at an interest rate that is less than or equal to the 
        market interest rate in any case in which a debt obligation is 
        incurred after July 1, 1993;
            ``(3) to guarantee, or purchase insurance for, a local 
        obligation (all of the proceeds of which finance a project 
        eligible for assistance under this section) if the guarantee or 
        purchase would improve credit market access or reduce the 
        interest rate applicable to the obligation;
            ``(4) as a source of revenue or security for the payment of 
        principal and interest on revenue or general obligation bonds 
        issued by the State if the proceeds of the sale of the bonds 
        will be deposited into the State loan fund; and
            ``(5) to earn interest on the amounts deposited into the 
        State loan fund.

    ``(g) Administration of State Loan Funds.--
            ``(1) Combined financial administration.--Notwithstanding 
        subsection (c), a State may (as a convenience and to avoid 
        unnecessary administrative costs) combine, in accordance with 
        State law, the financial administration of a State loan fund 
        established under this section with the financial administration 
        of any other revolving fund established by the State if 
        otherwise not prohibited by the law under which the State loan 
        fund was established and if the Administrator determines that--
                    ``(A) the grants under this section, together with 
                loan repayments and interest, will be separately 
                accounted for and used solely for the purposes specified 
                in subsection (a); and
                    ``(B) the authority to establish assistance 
                priorities and carry out oversight and related 
                activities (other than financial administration) with 
                respect to assistance remains with

[[Page 110 STAT. 1668]]

                the State agency having primary responsibility for 
                administration of the State program under section 1413, 
                after consultation with other appropriate State agencies 
                (as determined by the State): Provided, That in 
                nonprimacy States eligible to receive assistance under 
                this section, the Governor shall determine which State 
                agency will have authority to establish priorities for 
                financial assistance from the State loan fund.
            ``(2) Cost of administering fund.--Each State may annually 
        use up to 4 percent of the funds allotted to the State under 
        this section to cover the reasonable costs of administration of 
        the programs under this section, including the recovery of 
        reasonable costs expended to establish a State loan fund which 
        are incurred after the date of enactment of this section, and to 
        provide technical assistance to public water systems within the 
        State. For fiscal year 1995 and each fiscal year thereafter, 
        each State may use up to an additional 10 percent of the funds 
        allotted to the State under this section--
                    ``(A) for public water system supervision programs 
                under section 1443(a);
                    ``(B) to administer or provide technical assistance 
                through source water protection programs;
                    ``(C) to develop and implement a capacity 
                development strategy under section 1420(c); and
                    ``(D) for an operator certification program for 
                purposes of meeting the requirements of section 1419,
        if the State matches the expenditures with at least an equal 
        amount of State funds. At least half of the match must be 
        additional to the amount expended by the State for public water 
        supervision in fiscal year 1993. An additional 2 percent of the 
        funds annually allotted to each State under this section may be 
        used by the State to provide technical assistance to public 
        water systems serving 10,000 or fewer persons in the State. 
        Funds utilized under subparagraph (B) shall not be used for 
        enforcement actions.
            ``(3) <<NOTE: Publication.>> Guidance and regulations.--The 
        Administrator shall publish guidance and promulgate regulations 
        as may be necessary to carry out the provisions of this section, 
        including--
                    ``(A) provisions to ensure that each State commits 
                and expends funds allotted to the State under this 
                section as efficiently as possible in accordance with 
                this title and applicable State laws;
                    ``(B) guidance to prevent waste, fraud, and abuse; 
                and
                    ``(C) guidance to avoid the use of funds made 
                available under this section to finance the expansion of 
                any public water system in anticipation of future 
                population growth.
        The guidance and regulations shall also ensure that the States, 
        and public water systems receiving assistance under this 
        section, use accounting, audit, and fiscal procedures that 
        conform to generally accepted accounting standards.
            ``(4) State report.--Each State administering a loan fund 
        and assistance program under this subsection shall publish and 
        submit to the Administrator a report every 2 years on its 
        activities under this section, including the findings of the 
        most recent audit of the fund and the entire State allotment. 
        The Administrator shall periodically audit all State loan funds 
        established by, and all other amounts allotted to, the States

[[Page 110 STAT. 1669]]

        pursuant to this section in accordance with procedures 
        established by the Comptroller General.

    ``(h) <<NOTE: Reports.>> Needs Survey.--The Administrator shall 
conduct an assessment of water system capital improvement needs of all 
eligible public water systems in the United States and submit a report 
to the Congress containing the results of the assessment within 180 days 
after the date of enactment of the Safe Drinking Water Act Amendments of 
1996 and every 4 years thereafter.

    ``(i) Indian Tribes.--
            ``(1) In general.--1\1/2\ percent of the amounts 
        appropriated annually to carry out this section may be used by 
        the Administrator to make grants to Indian Tribes and Alaska 
        Native villages that have not otherwise received either grants 
        from the Administrator under this section or assistance from 
        State loan funds established under this section. The grants may 
        only be used for expenditures by tribes and villages for public 
        water system expenditures referred to in subsection (a)(2).
            ``(2) Use of funds.--Funds reserved pursuant to paragraph 
        (1) shall be used to address the most significant threats to 
        public health associated with public water systems that serve 
        Indian Tribes, as determined by the Administrator in 
        consultation with the Director of the Indian Health Service and 
        Indian Tribes.
            ``(3) Alaska native villages.--In the case of a grant for a 
        project under this subsection in an Alaska Native village, the 
        Administrator is also authorized to make grants to the State of 
        Alaska for the benefit of Native villages. An amount not to 
        exceed 4 percent of the grant amount may be used by the State of 
        Alaska for project management.
            ``(4) Needs assessment.--The Administrator, in consultation 
        with the Director of the Indian Health Service and Indian 
        Tribes, shall, in accordance with a schedule that is consistent 
        with the needs surveys conducted pursuant to subsection (h), 
        prepare surveys and assess the needs of drinking water treatment 
        facilities to serve Indian Tribes, including an evaluation of 
        the public water systems that pose the most significant threats 
        to public health.

    ``(j) Other Areas.--Of the funds annually available under this 
section for grants to States, the Administrator shall make allotments in 
accordance with section 1443(a)(4) for the Virgin Islands, the 
Commonwealth of the Northern Mariana Islands, American Samoa, and Guam. 
The grants allotted as provided in this subsection may be provided by 
the Administrator to the governments of such areas, to public water 
systems in such areas, or to both, to be used for the public water 
system expenditures referred to in subsection (a)(2). The grants, and 
grants for the District of Columbia, shall not be deposited in State 
loan funds. The total allotment of grants under this section for all 
areas described in this subsection in any fiscal year shall not exceed 
0.33 percent of the aggregate amount made available to carry out this 
section in that fiscal year.
    ``(k) Other Authorized Activities.--
            ``(1) In general.--Notwithstanding subsection (a)(2), a 
        State may take each of the following actions:
                    ``(A) Provide assistance, only in the form of a 
                loan, to one or more of the following:

[[Page 110 STAT. 1670]]

                          ``(i) Any public water system described in 
                      subsection (a)(2) to acquire land or a 
                      conservation easement from a willing seller or 
                      grantor, if the purpose of the acquisition is to 
                      protect the source water of the system from 
                      contamination and to ensure compliance with 
                      national primary drinking water regulations.
                          ``(ii) Any community water system to implement 
                      local, voluntary source water protection measures 
                      to protect source water in areas delineated 
                      pursuant to section 1453, in order to facilitate 
                      compliance with national primary drinking water 
                      regulations applicable to the system under section 
                      1412 or otherwise significantly further the health 
                      protection objectives of this title. Funds 
                      authorized under this clause may be used to fund 
                      only voluntary, incentive-based mechanisms.
                          ``(iii) Any community water system to provide 
                      funding in accordance with section 
                      1454(a)(1)(B)(i).
                    ``(B) Provide assistance, including technical and 
                financial assistance, to any public water system as part 
                of a capacity development strategy developed and 
                implemented in accordance with section 1420(c).
                    ``(C) Make expenditures from the capitalization 
                grant of the State for fiscal years 1996 and 1997 to 
                delineate and assess source water protection areas in 
                accordance with section 1453, except that funds set 
                aside for such expenditure shall be obligated within 4 
                fiscal years.
                    ``(D) Make expenditures from the fund for the 
                establishment and implementation of wellhead protection 
                programs under section 1428.
            ``(2) Limitation.--For each fiscal year, the total amount of 
        assistance provided and expenditures made by a State under this 
        subsection may not exceed 15 percent of the amount of the 
        capitalization grant received by the State for that year and may 
        not exceed 10 percent of that amount for any one of the 
        following activities:
                    ``(A) To acquire land or conservation easements 
                pursuant to paragraph (1)(A)(i).
                    ``(B) To provide funding to implement voluntary, 
                incentive-based source water quality protection measures 
                pursuant to clauses (ii) and (iii) of paragraph (1)(A).
                    ``(C) To provide assistance through a capacity 
                development strategy pursuant to paragraph (1)(B).
                    ``(D) To make expenditures to delineate or assess 
                source water protection areas pursuant to paragraph 
                (1)(C).
                    ``(E) To make expenditures to establish and 
                implement wellhead protection programs pursuant to 
                paragraph (1)(D).
            ``(3) Statutory construction.--Nothing in this section 
        creates or conveys any new authority to a State, political 
        subdivision of a State, or community water system for any new 
        regulatory measure, or limits any authority of a State, 
        political subdivision of a State or community water system.

    ``(l) Savings.--The failure or inability of any public water system 
to receive funds under this section or any other loan or grant program, 
or any delay in obtaining the funds, shall not alter the obligation of 
the system to comply in a timely manner with all applicable drinking 
water standards and requirements of this title.

[[Page 110 STAT. 1671]]

    ``(m) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out the purposes of this section $599,000,000 for 
the fiscal year 1994 and $1,000,000,000 for each of the fiscal years 
1995 through 2003. To the extent amounts authorized to be appropriated 
under this subsection in any fiscal year are not appropriated in that 
fiscal year, such amounts are authorized to be appropriated in a 
subsequent fiscal year (prior to the fiscal year 2004). Such sums shall 
remain available until expended.
    ``(n) Health Effects Studies.--From funds appropriated pursuant to 
this section for each fiscal year, the Administrator shall reserve 
$10,000,000 for health effects studies on drinking water contaminants 
authorized by the Safe Drinking Water Act Amendments of 1996. In 
allocating funds made available under this subsection, the Administrator 
shall give priority to studies concerning the health effects of 
cryptosporidium (as authorized by section 1458(c)), disinfection 
byproducts (as authorized by section 1458(c)), and arsenic (as 
authorized by section 1412(b)(12)(A)), and the implementation of a plan 
for studies of subpopulations at greater risk of adverse effects (as 
authorized by section 1458(a)).
    ``(o) Monitoring for Unregulated Contaminants.--From funds 
appropriated pursuant to this section for each fiscal year beginning 
with fiscal year 1998, the Administrator shall reserve $2,000,000 to pay 
the costs of monitoring for unregulated contaminants under section 
1445(a)(2)(C).
    ``(p) Demonstration Project for State of Virginia.--Notwithstanding 
the other provisions of this section limiting the use of funds deposited 
in a State loan fund from any State allotment, the State of Virginia 
may, as a single demonstration and with the approval of the Virginia 
General Assembly and the Administrator, conduct a program to demonstrate 
alternative approaches to intergovernmental coordination to assist in 
the financing of new drinking water facilities in the following rural 
communities in southwestern Virginia where none exists on the date of 
enactment of the Safe Drinking Water Act Amendments of 1996 and where 
such communities are experiencing economic hardship: Lee County, Wise 
County, Scott County, Dickenson County, Russell County, Buchanan County, 
Tazewell County, and the city of Norton, Virginia. The funds allotted to 
that State and deposited in the State loan fund may be loaned to a 
regional endowment fund for the purpose set forth in this subsection 
under a plan to be approved by the Administrator. The plan may include 
an advisory group that includes representatives of such counties.
    ``(q) Small System Technical Assistance.--The Administrator may 
reserve up to 2 percent of the total funds appropriated pursuant to 
subsection (m) for each of the fiscal years 1997 through 2003 to carry 
out the provisions of section 1442(e) (relating to technical assistance 
for small systems), except that the total amount of funds made available 
for such purpose in any fiscal year through appropriations (as 
authorized by section 1442(e)) and reservations made pursuant to this 
subsection shall not exceed the amount authorized by section 1442(e).
    ``(r) Evaluation.--The Administrator shall conduct an evaluation of 
the effectiveness of the State loan funds through fiscal year 2001. The 
evaluation shall be submitted to the Congress at the same time as the 
President submits to the Congress, pursuant to section 1108 of title 31, 
United States Code, an appropriations

[[Page 110 STAT. 1672]]

request for fiscal year 2003 relating to the budget of the Environmental 
Protection Agency.''.

SEC. 131. STATE GROUND WATER PROTECTION GRANTS.

    Part C (42 U.S.C. 300h et seq.) is amended by adding at the end the 
following:

                 ``state ground water protection grants

    ``Sec. 1429. <<NOTE: Publication. Regulations. 42 USC 300h-8.>> (a) 
In General.--The Administrator may make a grant to a State for the 
development and implementation of a State program to ensure the 
coordinated and comprehensive protection of ground water resources 
within the State.

    ``(b) Guidance.--Not later than 1 year after the date of enactment 
of the Safe Drinking Water Act Amendments of 1996, and annually 
thereafter, the Administrator shall publish guidance that establishes 
procedures for application for State ground
water protection program assistance and that identifies key elements of 
State ground water protection programs.

    ``(c) Conditions of Grants.--
            ``(1) In general.--The Administrator shall award grants to 
        States that submit an application that is approved by the 
        Administrator. The Administrator shall determine the amount of a 
        grant awarded pursuant to this paragraph on the basis of an 
        assessment of the extent of ground water resources in the State 
        and the likelihood that awarding the grant will result in 
        sustained and reliable protection of ground water quality.
            ``(2) Innovative program grants.--The Administrator may also 
        award a grant pursuant to this subsection for innovative 
        programs proposed by a State for the prevention of ground water 
        contamination.
            ``(3) Allocation of funds.--The Administrator shall, at a 
        minimum, ensure that, for each fiscal year, not less than 1 
        percent of funds made available to the Administrator by 
        appropriations to carry out this section are allocated to each 
        State that submits an application that is approved by the 
        Administrator pursuant to this section.
            ``(4) Limitation on grants.--No grant awarded by the 
        Administrator may be used for a project to remediate ground 
        water contamination.

    ``(d) Amount of Grants.--The amount of a grant awarded pursuant to 
paragraph (1) shall not exceed 50 percent of the eligible costs of 
carrying out the ground water protection program that is the subject of 
the grant (as determined by the Administrator) for the 1-year period 
beginning on the date that the grant is awarded. The State shall pay a 
State share to cover the costs of the ground water protection program 
from State funds in an amount that is not less than 50 percent of the 
cost of conducting the program.
    ``(e) Evaluations and Reports.--Not later than 3 years after the 
date of enactment of the Safe Drinking Water Act Amendments of 1996, and 
every 3 years thereafter, the Administrator shall evaluate the State 
ground water protection programs that are the subject of grants awarded 
pursuant to this section and report to the Congress on the status of 
ground water quality in the United States and the effectiveness of State 
programs for ground water protection.

[[Page 110 STAT. 1673]]

    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $15,000,000 for each of fiscal 
years 1997 through 2003.''.

SEC. 132. SOURCE WATER ASSESSMENT.

    (a) In General.--Part E (42 U.S.C. 300j et seq.) is amended by 
adding at the end the following:

                    ``source water quality assessment

    ``Sec. 1453. <<NOTE: 42 USC 300j-13.>> (a) Source Water 
Assessment.--
            ``(1) <<NOTE: Publication.>> Guidance.--Within 12 months 
        after the date of enactment of the Safe Drinking Water Act 
        Amendments of 1996, after notice and comment, the Administrator 
        shall publish guidance for States exercising primary enforcement 
        responsibility for public water systems to carry out directly or 
        through delegation (for the protection and benefit of public 
        water systems and for the support of monitoring flexibility) a 
        source water assessment program within the State's boundaries. 
        Each State adopting modifications to monitoring requirements 
        pursuant to section 1418(b) shall, prior to adopting such 
        modifications, have an approved source water assessment program 
        under this section and shall carry out the program either 
        directly or through delegation.
            ``(2) Program requirements.--A source water assessment 
        program under this subsection shall--
                    ``(A) delineate the boundaries of the assessment 
                areas in such State from which one or more public water 
                systems in the State receive supplies of drinking water, 
                using all reasonably available hydrogeologic information 
                on the sources of the supply of drinking water in the 
                State and the water flow, recharge, and discharge and 
                any other reliable information as the State deems 
                necessary to adequately determine such areas; and
                    ``(B) identify for contaminants regulated under this 
                title for which monitoring is required under this title 
                (or any unregulated contaminants selected by the State, 
                in its discretion, which the State, for the purposes of 
                this subsection, has determined may present a threat to 
                public health), to the extent practical, the origins 
                within each delineated area of such contaminants to 
                determine the susceptibility of the public water systems 
                in the delineated area to such contaminants.
            ``(3) Approval, implementation, and monitoring relief.--A 
        State source water assessment program under this subsection 
        shall be submitted to the Administrator within 18 months after 
        the Administrator's guidance is issued under this subsection and 
        shall be deemed approved 9 months after the date of such 
        submittal unless the Administrator disapproves the program as 
        provided in section 1428(c). States shall begin implementation 
        of the program immediately after its approval. The 
        Administrator's approval of a State program under this 
        subsection shall include a timetable, established in 
        consultation with the State, allowing not more than 2 years for 
        completion after approval of the program. Public water systems 
        seeking monitoring relief in addition to the interim relief 
        provided under section 1418(a) shall be eligible for monitoring 
        relief, consistent with section 1418(b), upon completion of the 
        assess

[[Page 110 STAT. 1674]]

        ment in the delineated source water assessment area or areas 
        concerned.
            ``(4) Timetable.--The timetable referred to in paragraph (3) 
        shall take into consideration the availability to the State of 
        funds under section 1452 (relating to State loan funds) for 
        assessments and other relevant factors. The Administrator may 
        extend any timetable included in a State program approved under 
        paragraph (3) to extend the period for completion by an 
        additional 18 months.
            ``(5) Demonstration project.--The Administrator shall, as 
        soon as practicable, conduct a demonstration project, in 
        consultation with other Federal agencies, to demonstrate the 
        most effective and protective means of assessing and protecting 
        source waters serving large metropolitan areas and located on 
        Federal lands.
            ``(6) Use of other programs.--To avoid duplication and to 
        encourage efficiency, the program under this section may make 
        use of any of the following:
                    ``(A) Vulnerability assessments, sanitary surveys, 
                and monitoring programs.
                    ``(B) Delineations or assessments of ground water 
                sources under a State wellhead protection program 
                developed pursuant to this section.
                    ``(C) Delineations or assessments of surface or 
                ground water sources under a State pesticide management 
                plan developed pursuant to the Pesticide and Ground 
                Water State Management Plan Regulation (subparts I and J 
                of part 152 of title 40, Code of Federal Regulations), 
                promulgated under section 3(d) of the Federal 
                Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 
                136a(d)).
                    ``(D) Delineations or assessments of surface water 
                sources under a State watershed initiative or to satisfy 
                the watershed criterion for determining if filtration is 
                required under the Surface Water Treatment Rule (section 
                141.70 of title 40, Code of Federal Regulations).
                    ``(E) Delineations or assessments of surface or 
                ground water sources under programs or plans pursuant to 
                the Federal Water Pollution Control Act.
            ``(7) Public availability.--The State shall make the results 
        of the source water assessments conducted under this subsection 
        available to the public.

    ``(b) Approval and Disapproval.--For provisions relating to program 
approval and disapproval, see section 1428(c).''.
    (b) Approval and Disapproval of State Programs.--Section 1428 (42 
U.S.C. 300h-7) is amended as follows:
            (1) Amend the first sentence of subsection (c)(1) to read as 
        follows: ``If, in the judgment of the Administrator, a State 
        program or portion thereof under subsection (a) is not adequate 
        to protect public water systems as required by subsection (a) or 
        a State program under section 1453 or section 1418(b) does not 
        meet the applicable requirements of section 1453 or section 
        1418(b), the Administrator shall disapprove such program or 
        portion thereof.''.
            (2) Add after the second sentence of subsection (c)(1) the 
        following: ``A State program developed pursuant to section 1453 
        or section 1418(b) shall be deemed to meet the applicable 
        requirements of section 1453 or section 1418(b) unless the

[[Page 110 STAT. 1675]]

        Administrator determines within 9 months of the receipt of the 
        program that such program (or portion thereof) does not meet 
        such requirements.''.
            (3) In the third sentence of subsection (c)(1) and in 
        subsection (c)(2), strike ``is inadequate'' and insert ``is 
        disapproved''.
            (4) In subsection (b), add the following before the period 
        at the end of the first sentence: ``and source water assessment 
        programs under section 1453''.

SEC. 133. SOURCE WATER PETITION PROGRAM.

    (a) In General.--Part E (42 U.S.C. 300j et seq.) is amended by 
adding at the end the following:

                     ``source water petition program

    ``Sec. 1454. <<NOTE: 42 USC 300j-14.>> (a) Petition Program.--
            ``(1) In general.--
                    ``(A) Establishment.--A State may establish a 
                program under which an owner or operator of a community 
                water system in the State, or a municipal or local 
                government or political subdivision of a State, may 
                submit a source water quality protection partnership 
                petition to the State requesting that the State assist 
                in the local development of a voluntary, incentive-based 
                partnership, among the owner, operator, or government 
                and other persons likely to be affected by the 
                recommendations of the partnership, to--
                          ``(i) reduce the presence in drinking water of 
                      contaminants that may be addressed by a petition 
                      by considering the origins of the contaminants, 
                      including to the maximum extent practicable the 
                      specific activities that affect the drinking water 
                      supply of a community;
                          ``(ii) obtain financial or technical 
                      assistance necessary to facilitate establishment 
                      of a partnership, or to develop and implement 
                      recommendations of a partnership for the 
                      protection of source water to assist in the 
                      provision of drinking water that complies with 
                      national primary drinking water regulations with 
                      respect to contaminants addressed by a petition; 
                      and
                          ``(iii) develop recommendations regarding 
                      voluntary and incentive-based strategies for the 
                      long-term protection of the source water of 
                      community water systems.
                    ``(B) Funding.--Each State may--
                          ``(i) use funds set aside pursuant to section 
                      1452(k)(1)(A)(iii) by the State to carry out a 
                      program described in subparagraph (A), including 
                      assistance to voluntary local partnerships for the 
                      development and implementation of partnership 
                      recommendations for the protection of source water 
                      such as source water quality assessment, 
                      contingency plans, and demonstration projects for 
                      partners within a source water area delineated 
                      under section 1453(a); and
                          ``(ii) provide assistance in response to a 
                      petition submitted under this subsection using 
                      funds referred to in subsection (b)(2)(B).

[[Page 110 STAT. 1676]]

            ``(2) Objectives.--The objectives of a petition submitted 
        under this subsection shall be to--
                    ``(A) facilitate the local development of voluntary, 
                incentive-based partnerships among owners and operators 
                of community water systems, governments, and other 
                persons in source water areas; and
                    ``(B) obtain assistance from the State in 
                identifying resources which are available to implement 
                the recommendations of the partnerships to address the 
                origins of drinking water contaminants that may be 
                addressed by a petition (including to the maximum extent 
                practicable the specific activities contributing to the 
                presence of the contaminants) that affect the drinking 
                water supply of a community.
            ``(3) Contaminants addressed by a petition.--A petition 
        submitted to a State under this subsection may address only 
        those contaminants--
                    ``(A) that are pathogenic organisms for which a 
                national primary drinking water regulation has been 
                established or is required under section 1412; or
                    ``(B) for which a national primary drinking water 
                regulation has been promulgated or proposed and that are 
                detected by adequate monitoring methods in the source 
                water at the intake structure or in any collection, 
                treatment, storage, or distribution facilities by the 
                community water systems at levels--
                          ``(i) above the maximum contaminant level; or
                          ``(ii) that are not reliably and consistently 
                      below the maximum contaminant level.
            ``(4) Contents.--A petition submitted under this subsection 
        shall, at a minimum--
                    ``(A) include a delineation of the source water area 
                in the State that is the subject of the petition;
                    ``(B) identify, to the maximum extent practicable, 
                the origins of the drinking water contaminants that may 
                be addressed by a petition (including to the maximum 
                extent practicable the specific activities contributing 
                to the presence of the contaminants) in the source water 
                area delineated under section 1453;
                    ``(C) identify any deficiencies in information that 
                will impair the development of recommendations by the 
                voluntary local partnership to address drinking water 
                contaminants that may be addressed by a petition;
                    ``(D) specify the efforts made to establish the 
                voluntary local partnership and obtain the participation 
                of--
                          ``(i) the municipal or local government or 
                      other political subdivision of the State with 
                      jurisdiction over the source water area delineated 
                      under section 1453; and
                          ``(ii) each person in the source water area 
                      delineated under section 1453--
                                    ``(I) who is likely to be affected 
                                by recommendations of the voluntary 
                                local partnership; and
                                    ``(II) whose participation is 
                                essential to the success of the 
                                partnership;

[[Page 110 STAT. 1677]]

                    ``(E) outline how the voluntary local partnership 
                has or will, during development and implementation of 
                recommendations of the voluntary local partnership, 
                identify, recognize and take into account any voluntary 
                or other activities already being undertaken by persons 
                in the source water area delineated under section 1453 
                under Federal or State law to reduce the likelihood that 
                contaminants will occur in drinking water at levels of 
                public health concern; and
                    ``(F) specify the technical, financial, or other 
                assistance that the voluntary local partnership requests 
                of the State to develop the partnership or to implement 
                recommendations of the partnership.

    ``(b) Approval or Disapproval of Petitions.--
            ``(1) In general.--After providing notice and an opportunity 
        for public comment on a petition submitted under subsection (a), 
        the State shall approve or disapprove the petition, in whole or 
        in part, not later than 120 days after the date of submission of 
        the petition.
            ``(2) Approval.--The State may approve a petition if the 
        petition meets the requirements established under subsection 
        (a). The notice of approval shall, at a minimum, include for 
        informational purposes--
                    ``(A) an identification of technical, financial, or 
                other assistance that the State will provide to assist 
                in addressing the drinking water contaminants that may 
                be addressed by a petition based on--
                          ``(i) the relative priority of the public 
                      health concern identified in the petition with 
                      respect to the other water quality needs 
                      identified by the State;
                          ``(ii) any necessary coordination that the 
                      State will perform of the program established 
                      under this section with programs implemented or 
                      planned by other States under this section; and
                          ``(iii) funds available (including funds 
                      available from a State revolving loan fund 
                      established under title VI of the Federal Water 
                      Pollution Control Act (33 U.S.C. 1381 et seq.)) or 
                      section 1452;
                    ``(B) a description of technical or financial 
                assistance pursuant to Federal and State programs that 
                is available to assist in implementing recommendations 
                of the partnership in the petition, including--
                          ``(i) any program established under the 
                      Federal Water Pollution Control Act (33 U.S.C. 
                      1251 et seq.);
                          ``(ii) the program established under section 
                      6217 of the Coastal Zone Act Reauthorization 
                      Amendments of 1990 (16 U.S.C. 1455b);
                          ``(iii) the agricultural water quality 
                      protection program established under chapter 2 of 
                      subtitle D of title XII of the Food Security Act 
                      of 1985 (16 U.S.C. 3838 et seq.);
                          ``(iv) the sole source aquifer protection 
                      program established under section 1427;
                          ``(v) the community wellhead protection 
                      program established under section 1428;
                          ``(vi) any pesticide or ground water 
                      management plan;

[[Page 110 STAT. 1678]]

                          ``(vii) any voluntary agricultural resource 
                      management plan or voluntary whole farm or whole 
                      ranch management plan developed and implemented 
                      under a process established by the Secretary of 
                      Agriculture; and
                          ``(viii) any abandoned well closure program; 
                      and
                    ``(C) a description of activities that will be 
                undertaken to coordinate Federal and State programs to 
                respond to the petition.
            ``(3) <<NOTE: Notification.>> Disapproval.--If the State 
        disapproves a petition submitted under subsection (a), the State 
        shall notify the entity submitting the petition in writing of 
        the reasons for disapproval. A petition may be resubmitted at 
        any time if--
                    ``(A) new information becomes available;
                    ``(B) conditions affecting the source water that is 
                the subject of the petition change; or
                    ``(C) modifications are made in the type of 
                assistance being requested.

    ``(c) Grants to Support State Programs.--
            ``(1) In general.--The Administrator may make a grant to 
        each State that establishes a program under this section that is 
        approved under paragraph (2). The amount of each grant shall not 
        exceed 50 percent of the cost of administering the program for 
        the year in which the grant is available.
            ``(2) Approval.--In order to receive grant assistance under 
        this subsection, a State shall submit to the Administrator for 
        approval a plan for a source water quality protection 
        partnership program that is consistent with the guidance 
        published under subsection (d). The Administrator shall approve 
        the plan if the plan is consistent with the guidance published 
        under subsection (d).

    ``(d) Guidance.--
            ``(1) <<NOTE: Publication.>> In general.--Not later than 1 
        year after the date of enactment of this section, the 
        Administrator, in consultation with the States, shall publish 
        guidance to assist--
                    ``(A) States in the development of a source water 
                quality protection partnership program; and
                    ``(B) municipal or local governments or political 
                subdivisions of a State and community water systems in 
                the development of source water quality protection 
                partnerships and in the assessment of source water 
                quality.
            ``(2) Contents of the guidance.--The guidance shall, at a 
        minimum--
                    ``(A) recommend procedures for the approval or 
                disapproval by a State of a petition submitted under 
                subsection (a);
                    ``(B) recommend procedures for the submission of 
                petitions developed under subsection (a);
                    ``(C) recommend criteria for the assessment of 
                source water areas within a State; and
                    ``(D) describe technical or financial assistance 
                pursuant to Federal and State programs that is available 
                to address the contamination of sources of drinking 
                water and to develop and respond to petitions submitted 
                under subsection (a).

    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $5,000,000 for each

[[Page 110 STAT. 1679]]

of the fiscal years 1997 through 2003. Each State with a plan for a 
program approved under subsection (b) shall receive an equitable portion 
of the funds available for any fiscal year.
    ``(f) Statutory Construction.--Nothing in this section--
            ``(1)(A) creates or conveys new authority to a State, 
        political subdivision of a State, or community water system for 
        any new regulatory measure; or
            ``(B) limits any authority of a State, political 
        subdivision, or community water system; or
            ``(2) precludes a community water system, municipal or local 
        government, or political subdivision of a government from 
        locally developing and carrying out a voluntary, incentive-
        based, source water quality protection partnership to address 
        the origins of drinking water contaminants of public health 
        concern.''.

    (b) Sense of the Congress.--It is the sense of the Congress that 
each State in establishing priorities under section 606(c)(1) of the 
Federal Water Pollution Control Act should give special consideration to 
projects that are eligible for funding under that Act and have been 
recommended pursuant to a petition submitted under section 1454 of the 
Safe Drinking Water Act.

SEC. 134. WATER CONSERVATION PLAN.

    Part E (42 U.S.C. 300j et seq.) is amended by adding at the end the 
following:

                        ``water conservation plan

    ``Sec. 1455. <<NOTE: Federal Register, publication. 42 USC 300j-
15.>> (a) Guidelines.--Not later than 2 years after the date of 
enactment of the Safe Drinking Water Act Amendments of 1996, the 
Administrator shall publish in the Federal Register guidelines for water 
conservation plans for public water systems serving fewer than 3,300 
persons, public water systems serving between 3,300 and 10,000 persons, 
and public water systems serving more than 10,000 persons, taking into 
consideration such factors as water availability and climate.

    ``(b) Loans or Grants.--Within 1 year after publication of the 
guidelines under subsection (a), a State exercising primary enforcement 
responsibility for public water systems may require a public water 
system, as a condition of receiving a loan or grant from a State loan 
fund under section 1452, to submit with its application for such loan or 
grant a water conservation plan consistent with such guidelines.''.

SEC. 135. DRINKING WATER ASSISTANCE TO COLONIAS.

    Part E (42 U.S.C. 300j et seq.) is amended by adding the following 
new section at the end thereof:

                        ``assistance to colonias

    ``Sec. 1456. <<NOTE: 42 USC 300j-16.>> (a) Definitions.--As used in 
this section:
            ``(1) Border state.--The term `border State' means Arizona, 
        California, New Mexico, and Texas.
            ``(2) Eligible community.--The term `eligible community' 
        means a low-income community with economic hardship that--
                    ``(A) is commonly referred to as a colonia;
                    ``(B) is located along the United States-Mexico 
                border (generally in an unincorporated area); and

[[Page 110 STAT. 1680]]

                    ``(C) lacks a safe drinking water supply or adequate 
                facilities for the provision of safe drinking water for 
                human consumption.

    ``(b) Grants To Alleviate Health Risks.--The Administrator of the 
Environmental Protection Agency and the heads of other appropriate 
Federal agencies are authorized to award grants to a border State to 
provide assistance to eligible communities to facilitate compliance with 
national primary drinking water regulations or otherwise significantly 
further the health protection objectives of this title.
    ``(c) Use of Funds.--Each grant awarded pursuant to subsection (b) 
shall be used to provide assistance to one or more eligible communities 
with respect to which the residents are subject to a significant health 
risk (as determined by the Administrator or the head of the Federal 
agency making the grant) attributable to the lack of access to an 
adequate and affordable drinking water supply system.
    ``(d) Cost Sharing.--The amount of a grant awarded pursuant to this 
section shall not exceed 50 percent of the costs of carrying out the 
project that is the subject of the grant.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $25,000,000 for each of the 
fiscal years 1997 through 1999.''.

SEC. 136. ESTROGENIC SUBSTANCES SCREENING PROGRAM.

    Part E (42 U.S.C. 300j et seq.) is amended by adding at the end the 
following:

                ``estrogenic substances screening program

    ``Sec. 1457. <<NOTE: 42 USC 300j-17.>> In addition to the substances 
referred to in section 408(p)(3)(B) of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 346a(p)(3)(B)) the Administrator may provide for 
testing under the screening program authorized by section 408(p) of such 
Act, in accordance with the provisions of section 408(p) of such Act, of 
any other substance that may be found in sources of drinking water if 
the Administrator determines that a substantial population may be 
exposed to such substance.''.

SEC. 137. DRINKING WATER STUDIES.

    Part E (42 U.S.C. 300j et seq.) is amended by adding after section 
1457 the following:

                        ``drinking water studies

    ``Sec. 1458. <<NOTE: 42 USC 300j-18.>> (a) Subpopulations at Greater 
Risk.--
            ``(1) In general.--The Administrator shall conduct a 
        continuing program of studies to identify groups within the 
        general population that may be at greater risk than the general 
        population of adverse health effects from exposure to 
        contaminants in drinking water. The study shall examine whether 
        and to what degree infants, children, pregnant women, the 
        elderly, individuals with a history of serious illness, or other 
        subpopulations that can be identified and characterized are 
        likely to experience elevated health risks, including risks of 
        cancer, from contaminants in drinking water.
            ``(2) Report.--Not later than 4 years after the date of 
        enactment of this subsection and periodically thereafter as new

[[Page 110 STAT. 1681]]

        and significant information becomes available, the Administrator 
        shall report to the Congress on the results of the studies.

    ``(b) Biological Mechanisms.--The Administrator shall conduct 
biomedical studies to--
            ``(1) understand the mechanisms by which chemical 
        contaminants are absorbed, distributed, metabolized, and 
        eliminated from the human body, so as to develop more accurate 
        physiologically based models of the phenomena;
            ``(2) understand the effects of contaminants and the 
        mechanisms by which the contaminants cause adverse effects 
        (especially noncancer and infectious effects) and the variations 
        in the effects among humans, especially subpopulations at 
        greater risk of adverse effects, and between test animals and 
        humans; and
            ``(3) develop new approaches to the study of complex 
        mixtures, such as mixtures found in drinking water, especially 
        to determine the prospects for synergistic or antagonistic 
        interactions that may affect the shape of the dose-response 
        relationship of the individual chemicals and microbes, and to 
        examine noncancer endpoints and infectious diseases, and 
        susceptible individuals and subpopulations.

    ``(c) Studies on Harmful Substances in Drinking Water.--
            ``(1) Development of studies.--The Administrator shall, not 
        later than 180 days after the date of enactment of this section 
        and after consultation with the Secretary of Health and Human 
        Services, the Secretary of Agriculture, and, as appropriate, the 
        heads of other Federal agencies, conduct the studies described 
        in paragraph (2) to support the development and implementation 
        of the most current version of each of the following:
                    ``(A) Enhanced Surface Water Treatment Rule (59 Fed. 
                Reg. 38832 (July 29, 1994)).
                    ``(B) Disinfectant and Disinfection Byproducts Rule 
                (59 Fed. Reg. 38668 (July 29, 1994)).
                    ``(C) Ground Water Disinfection Rule (availability 
                of draft summary announced at (57 Fed. Reg. 33960; July 
                31, 1992)).
            ``(2) Contents of studies.--The studies required by 
        paragraph (1) shall include, at a minimum, each of the 
        following:
                    ``(A) Toxicological studies and, if warranted, 
                epidemiological studies to determine what levels of 
                exposure from disinfectants and disinfection byproducts, 
                if any, may be associated with developmental and birth 
                defects and other potential toxic end points.
                    ``(B) Toxicological studies and, if warranted, 
                epidemiological studies to quantify the carcinogenic 
                potential from exposure to disinfection byproducts 
                resulting from different disinfectants.
                    ``(C) The development of dose-response curves for 
                pathogens, including cryptosporidium and the Norwalk 
                virus.
            ``(3) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this subsection $12,500,000 for 
        each of fiscal years 1997 through 2003.

    ``(d) Waterborne Disease Occurrence Study.--
            ``(1) System.--The Director of the Centers for Disease 
        Control and Prevention, and the Administrator shall jointly--

[[Page 110 STAT. 1682]]

                    ``(A) within 2 years after the date of enactment of 
                this section, conduct pilot waterborne disease 
                occurrence studies for at least 5 major United States 
                communities or public water systems; and
                    ``(B) <<NOTE: Reports.>> within 5 years after the 
                date of enactment of this section, prepare a report on 
                the findings of the pilot studies, and a national 
                estimate of waterborne disease occurrence.
            ``(2) Training and education.--The Director and 
        Administrator shall jointly establish a national health care 
        provider training and public education campaign to inform both 
        the professional health care provider community and the general 
        public about waterborne disease and the symptoms that may be 
        caused by infectious agents, including microbial contaminants. 
        In developing such a campaign, they shall seek comment from 
        interested groups and individuals, including scientists, 
        physicians, State and local governments, environmental groups, 
        public water systems, and vulnerable populations.
            ``(3) Funding.--There are authorized to be appropriated for 
        each of the fiscal years 1997 through 2001, $3,000,000 to carry 
        out this subsection. To the extent funds under this subsection 
        are not fully appropriated, the Administrator may use not more 
        than $2,000,000 of the funds from amounts reserved under section 
        1452(n) for health effects studies for purposes of this 
        subsection. The Administrator may transfer a portion of such 
        funds to the Centers for Disease Control and Prevention for such 
        purposes.''.

                    TITLE II--DRINKING WATER RESEARCH

SEC. 201. DRINKING WATER RESEARCH AUTHORIZATION.

    Other than amounts authorized to be appropriated to the 
Administrator of the Environmental Protection Agency under other titles 
of this Act, there are authorized to be appropriated such additional 
sums as may be necessary for drinking water research for fiscal years 
1997 through 2003. The annual total of such additional sums authorized 
to be appropriated under this section shall not exceed $26,593,000.

SEC. 202. <<NOTE: 42 USC 300j-1 note.>> SCIENTIFIC RESEARCH REVIEW.

    (a) In General.--The Administrator shall--
            (1) develop a strategic plan for drinking water research 
        activities throughout the Environmental Protection Agency (in 
        this section referred to as the ``Agency'');
            (2) integrate that strategic plan into ongoing Agency 
        planning activities; and
            (3) review all Agency drinking water research to ensure the 
        research--
                    (A) is of high quality; and
                    (B) does not duplicate any other research being 
                conducted by the Agency.

    (b) <<NOTE: Public information.>> Plan.--The Administrator shall 
transmit the plan to the Committees on Commerce and Science of the House 
of Representatives and the Committee on Environment and Public Works of 
the Senate and the plan shall be made available to the public.

[[Page 110 STAT. 1683]]

SEC. 203. <<NOTE: 42 USC 300j-1 note.>> NATIONAL CENTER FOR GROUND WATER 
            RESEARCH.

    The Administrator of the Environmental Protection Agency, acting 
through the Robert S. Kerr Environmental Research Laboratory, is 
authorized to reestablish a partnership between the Laboratory and the 
National Center for Ground Water Research, a university consortium, to 
conduct research, training, and technology transfer for ground water 
quality protection and restoration. No funds are authorized by this 
section.

                   TITLE III--MISCELLANEOUS PROVISIONS

SEC. 301. WATER RETURN FLOWS.

    Section 3013 of Public Law 102-486 (42 U.S.C. 13551) is repealed.

SEC. 302. <<NOTE: 42 USC 300j-12 note.>> TRANSFER OF FUNDS.

    (a) In General.--Notwithstanding any other provision of law, at any 
time after the date 1 year after a State establishes a State loan fund 
pursuant to section 1452 of the Safe Drinking Water Act but prior to 
fiscal year 2002, a Governor of the State may--
            (1) reserve up to 33 percent of a capitalization grant made 
        pursuant to such section 1452 and add the funds reserved to any 
        funds provided to the State pursuant to section 601 of the 
        Federal Water Pollution Control Act (33 U.S.C. 1381); and
            (2) reserve in any year a dollar amount up to the dollar 
        amount that may be reserved under paragraph (1) for that year 
        from capitalization grants made pursuant to section 601 of such 
        Act (33 U.S.C. 1381) and add the reserved funds to any funds 
        provided to the State pursuant to section 1452 of the Safe 
        Drinking Water Act.

    (b) Report.--Not later than 4 years after the date of enactment of 
this Act, the Administrator shall submit a report to the Congress 
regarding the implementation of this section, together with the 
Administrator's recommendations, if any, for modifications or 
improvement.
    (c) State Match.--Funds reserved pursuant to this section shall not 
be considered to be a State match of a capitalization grant required 
pursuant to section 1452 of the Safe Drinking Water Act or the Federal 
Water Pollution Control Act (33 U.S.C. 1251 et seq.).

SEC. 303. <<NOTE: 33 USC 1263a.>> GRANTS TO ALASKA TO IMPROVE SANITATION 
            IN RURAL AND NATIVE VILLAGES.

    (a) In General.--The Administrator of the Environmental Protection 
Agency may make grants to the State of Alaska for the benefit of rural 
and Native villages in Alaska to pay the Federal share of the cost of--
            (1) the development and construction of public water systems 
        and wastewater systems to improve the health and sanitation 
        conditions in the villages; and
            (2) training, technical assistance, and educational programs 
        relating to the operation and management of sanitation services 
        in rural and Native villages.

[[Page 110 STAT. 1684]]

    (b) Federal Share.--The Federal share of the cost of the activities 
described in subsection (a) shall be 50 percent.
    (c) Administrative Expenses.--The State of Alaska may use an amount 
not to exceed 4 percent of any grant made available under this 
subsection for administrative expenses necessary to carry out the 
activities described in subsection (a).
    (d) Consultation With the State of Alaska.--The Administrator shall 
consult with the State of Alaska on a method of prioritizing the 
allocation of grants under subsection (a) according to the needs of, and 
relative health and sanitation conditions in, each eligible village.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated $15,000,000 for each of the fiscal years 1997 through 2000 
to carry out this section.

SEC. 304. SENSE OF THE CONGRESS.

    It is the sense of the Congress that appropriations for grants under 
section 128 (relating to New York City watershed), section 135 (relating 
to colonias), and section 307 (relating to Alaska Native villages) 
should not be provided if such appropriations would prevent the adequate 
capitalization of State revolving loan funds.

SEC. 305. BOTTLED DRINKING WATER STANDARDS.

    Section 410 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
349) is amended as follows:
            (1) By striking ``Whenever'' and inserting ``(a) Except as 
        provided in subsection (b), whenever''.
            (2) By adding at the end the following new subsection:

    ``(b)(1) Not later than 180 days before the effective date of a 
national primary drinking water regulation promulgated by the 
Administrator of the Environmental Protection Agency for a contaminant 
under section 1412 of the Safe Drinking Water Act (42 U.S.C. 300g-1), 
the Secretary shall promulgate a standard of quality regulation under 
this subsection for that contaminant in bottled water or make a finding 
that such a regulation is not necessary to protect the public health 
because the contaminant is contained in water in public water systems 
(as defined under section 1401(4) of such Act (42 U.S.C. 300f(4))) but 
not in water used for bottled drinking water. <<NOTE: Effective 
date.>> The effective date for any such standard of quality regulation 
shall be the same as the effective date for such national primary 
drinking water regulation, except for any standard of quality of 
regulation promulgated by the Secretary before the date of enactment of 
the Safe Drinking Water Act Amendments of 1996 for which (as of such 
date of enactment) an effective date had not been established. In the 
case of a standard of quality regulation to which such exception 
applies, the Secretary shall promulgate monitoring requirements for the 
contaminants covered by the regulation not later than 2 years after such 
date of enactment.

    ``(2) A regulation issued by the Secretary as provided in this 
subsection shall include any monitoring requirements that the Secretary 
determines appropriate for bottled water.
    ``(3) A regulation issued by the Secretary as provided in this 
subsection shall require the following:
            ``(A) In the case of contaminants for which a maximum 
        contaminant level is established in a national primary drinking 
        water regulation under section 1412 of the Safe Drinking Water 
        Act (42 U.S.C. 300g-1), the regulation under this subsection

[[Page 110 STAT. 1685]]

        shall establish a maximum contaminant level for the contaminant 
        in bottled water which is no less stringent than the maximum 
        contaminant level provided in the national primary drinking 
        water regulation.
            ``(B) In the case of contaminants for which a treatment 
        technique is established in a national primary drinking water 
        regulation under section 1412 of the Safe Drinking Water Act (42 
        U.S.C. 300g-1), the regulation under this subsection shall 
        require that bottled water be subject to requirements no less 
        protective of the public health than those applicable to water 
        provided by public water systems using the treatment technique 
        required by the national primary drinking water regulation.

    ``(4)(A) If the Secretary does not promulgate a regulation under 
this subsection within the period described in paragraph (1), the 
national primary drinking water regulation referred to in paragraph (1) 
shall be considered, as of the date on which the Secretary is required 
to establish a regulation under paragraph (1), as the regulation 
applicable under this subsection to bottled water.
    ``(B) <<NOTE: Federal Register, publication.>> In the case of a 
national primary drinking water regulation that pursuant to subparagraph 
(A) is considered to be a standard of quality regulation, the Secretary 
shall, not later than the applicable date referred to in such 
subparagraph, publish in the Federal Register a notice--
            ``(i) specifying the contents of such regulation, including 
        monitoring requirements; and
            ``(ii) <<NOTE: Effective date.>> providing that for purposes 
        of this paragraph the effective date for such regulation is the 
        same as the effective date for the regulation for purposes of 
        the Safe Drinking Water Act (or, if the exception under 
        paragraph (1) applies to the regulation, that the effective date 
        for the regulation is not later than 2 years and 180 days after 
        the date of enactment of the Safe Drinking Water Act Amendments 
        of 1996).''.

SEC. 306. <<NOTE: District of Columbia. Virginia. 40 USC 45 
            note.>> WASHINGTON AQUEDUCT.

    (a) Definitions.--In this section:
            (1) Non-federal public water supply customer.--The terms 
        ``non-Federal public water supply customer'' and ``customer'' 
        mean--
                    (A) the District of Columbia;
                    (B) Arlington County, Virginia; and
                    (C) the city of Falls Church, Virginia.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Army, acting through the Chief of Engineers.
            (3) Value to the government.--The term ``value to the 
        Government'' means the net present value of a contract entered 
        into under subsection (e)(2), calculated in accordance with 
        subparagraphs (A) and (B) of section 502(5) of the Congressional 
        Budget Act of 1974 (2 U.S.C. 66la(5)), other than section 
        502(5)(B)(I) of the Act, as though the contract provided for 
        repayment of a direct loan to a customer.
            (4) Washington aqueduct.--The term ``Washington Aqueduct'' 
        means the Washington Aqueduct facilities and related facilities 
        owned by the Federal Government as of the date of enactment of 
        this Act, including--
                    (A) the dams, intake works, conduits, and pump 
                stations that capture and transport raw water from the 
                Potomac River to the Dalecarlia Reservoir;

[[Page 110 STAT. 1686]]

                    (B) the infrastructure and appurtenances used to 
                treat water taken from the Potomac River to potable 
                standards; and
                    (C) related water distribution facilities.

    (b) Regional Entity.--
            (1) In general.--The Congress encourages and grants consent 
        to the customers to establish a non-Federal public or private 
        entity, or to enter into an agreement with an existing non-
        Federal public or private entity, to--
                    (A) receive title to the Washington Aqueduct; and
                    (B) operate, maintain, and manage the Washington 
                Aqueduct in a manner that adequately represents all 
                interests of its customers.
            (2) Consideration.--If an entity receiving title to the 
        Washington Aqueduct is not composed entirely of non-Federal 
        public water supply customers, the entity shall consider the 
        customers' historical provision of equity for the Aqueduct.
            (3) Priority access.--The customers shall have priority 
        access to any water produced by the Washington Aqueduct.
            (4) Consent of the congress.--The Congress grants consent to 
        the customers to enter into any interstate agreement or compact 
        required to carry out this section.
            (5) Statutory construction.--This section shall not preclude 
        the customers from pursuing any option regarding ownership, 
        operation, maintenance, and management of the Washington 
        Aqueduct.

    (c) Progress Report and Plan.--Not later than 1 year after the date 
of enactment of this Act, the Secretary shall report to the Committee on 
Environment and Public Works of the Senate and the Committee on 
Transportation and Infrastructure of the House of Representatives on any 
progress in achieving the objectives of subsection (b)(1) and shall 
submit a plan for the transfer of ownership, operation, maintenance, and 
management of the Washington Aqueduct to a non-Federal public or private 
entity. Such plan shall include a detailed consideration of any proposal 
to transfer such ownership, maintenance, or management to a private 
entity.
    (d) Transfer.--
            (1) In general.--Subject to subsection (b)(2), the other 
        provisions of this subsection, and any other terms and 
        conditions the Secretary considers appropriate to protect the 
        interests of the United States, the Secretary shall, not later 
        than 3 years after the date of enactment of this Act and with 
        the consent of a majority of the customers and without 
        consideration to the Federal Government, transfer all right, 
        title, and interest of the United States in the Washington 
        Aqueduct, and its real property, facilities, and personalty, to 
        a non-Federal, public or private entity. Approval of such 
        transfer shall not be unreasonably withheld by the Secretary.
            (2) Adequate capabilities.--The Secretary shall transfer 
        ownership of the Washington Aqueduct under paragraph (1) only if 
        the Secretary determines, after opportunity for public input, 
        that the entity to receive ownership of the Aqueduct has the 
        technical, managerial, and financial capability to operate, 
        maintain, and manage the Aqueduct.
            (3) Responsibilities.--The Secretary shall not transfer 
        title under this subsection unless the entity to receive title

[[Page 110 STAT. 1687]]

        assumes full responsibility for performing and financing the 
        operation, maintenance, repair, replacement, rehabilitation, and 
        necessary capital improvements of the Washington Aqueduct so as 
        to ensure the continued operation of the Washington Aqueduct 
        consistent with the Aqueduct's intended purpose of providing an 
        uninterrupted supply of potable water sufficient to meet the 
        current and future needs of the Aqueduct's service area.

    (e) Borrowing Authority.--
            (1) Borrowing.--
                    (A) In general.--Subject to the other provisions of 
                this paragraph and paragraph (2), the Secretary is 
                authorized to borrow from the Treasury of the United 
                States such amounts for fiscal years 1997, 1998, and 
                1999 as are sufficient to cover any obligations that the 
                Army Corps of Engineers is required to incur in carrying 
                out capital improvements during fiscal years 1997, 1998, 
                and 1999 for the Washington Aqueduct to ensure continued 
                operation of the Aqueduct until such time as a transfer 
                of title to the Aqueduct has taken place.
                    (E) Limitation.--The amount borrowed by the 
                Secretary under subparagraph (A) may not exceed 
                $29,000,000 for fiscal year 1997, $24,000,000 for fiscal 
                year 1998, and $22,000,000 for fiscal year 1999.
                    (C) Agreement.--Amounts borrowed under subparagraph 
                (A) may only be used for capital improvements agreed to 
                by the Army Corps of Engineers and the customers.
                    (D) Terms of borrowing.--
                          (i) In general.--The Secretary of the Treasury 
                      shall provide the funds borrowed under 
                      subparagraph (A) under such terms and conditions 
                      as the Secretary of Treasury determines to be 
                      necessary and in the public interest and subject 
                      to the contracts required under paragraph (2).
                          (ii) Term.--The term of any loan made under 
                      subparagraph (A) shall be for a period of not less 
                      than 20 years.
                          (iii) Prepayment.--There shall be no penalty 
                      for the prepayment of any amounts borrowed under 
                      subparagraph (A).
            (2) Contracts with customers.--
                    (A) In general.--The borrowing authority under 
                paragraph (1)(A) shall be effective only after the Chief 
                of Engineers has entered into contracts with each 
                customer under which the customer commits to repay a pro 
                rata share (based on water purchase) of the principal 
                and interest owed by the Secretary to the Secretary of 
                the Treasury under paragraph (1).
                    (B) Prepayment.--Any customer may repay, at any 
                time, the pro rata share of the principal and interest 
                then owed by the customer and outstanding, or any 
                portion thereof, without penalty.
                    (C) Risk of default.--Under each of the contracts, 
                the customer that enters into the contract shall commit 
                to pay any additional amount necessary to fully offset 
                the risk of default on the contract.

[[Page 110 STAT. 1688]]

                    (D) Obligations.--Each contract under subparagraph 
                (A) shall include such terms and conditions as the 
                Secretary of the Treasury may require so that the value 
                to the Government of the contracts entered into under 
                subparagraph (A) is estimated to be equal to the 
                obligations of the Army Corps of Engineers for carrying 
                out capital improvements at the Washington Aqueduct at 
                the time that each series of contracts is entered into.
                    (E) Other conditions.--Each contract entered into 
                under subparagraph (A) shall--
                          (i) provide that the customer pledges future 
                      income only from fees assessed for principal and 
                      interest payments required by such contracts and 
                      costs to operate and maintain the Washington 
                      Aqueduct;
                          (ii) provide the United States priority in 
                      regard to income from fees assessed to operate and 
                      maintain the Washington Aqueduct; and
                          (iii) include other conditions consistent with 
                      this section that the Secretary of the Treasury 
                      determines to be appropriate.
            (3) Limitations.--
                    (A) Borrowing authority.--The Secretary's borrowing 
                authority for making capital improvements at the 
                Washington Aqueduct under paragraph (1) shall not extend 
                beyond fiscal year 1999.
                    (B) Obligation authority.--Upon expiration of the 
                borrowing authority exercised under paragraph (1), the 
                Secretary shall not obligate funds for making capital 
                improvements at the Washington Aqueduct except funds 
                which are provided in advance by the customers. This 
                limitation does not affect the Secretary's authority to 
                conduct normal operation and maintenance activities, 
                including minor repair and replacement work.
            (4) <<NOTE: Reports.>> Impact on improvement program.--Not 
        later than 180 days after the date of enactment of this Act, the 
        Secretary, in consultation with other Federal agencies, shall 
        transmit to the Committee on Environment and Public Works of the 
        Senate and the Committee on Transportation and Infrastructure of 
        the House of Representatives a report that assesses the impact 
        of the borrowing authority provided under this subsection on the 
        near-term improvement projects in the Washington Aqueduct 
        Improvement Program, work scheduled, and the financial liability 
        to be incurred.

    (f) Reissuance of NPDES Permit.--Prior to reissuing a National 
Pollutant Discharge Elimination System (NPDES) permit for the Washington 
Aqueduct, the Administrator of the Environmental Protection Agency shall 
consult with the customers and the Secretary regarding opportunities for 
more efficient water facility configurations that might be achieved 
through various possible transfers of the Washington Aqueduct. Such 
consultation shall include specific consideration of concerns regarding 
a proposed solids recovery facility, and may include a public hearing.

SEC. 307. <<NOTE: 33 USC 1281 note.>> WASTEWATER ASSISTANCE TO COLONIAS.

    (a) Definitions.--As used in this section:
            (1) Border state.--The term ``border State'' means Arizona, 
        California, New Mexico, and Texas.

[[Page 110 STAT. 1689]]

            (2) Eligible community.--The term ``eligible community'' 
        means a low-income community with economic hardship that--
                    (A) is commonly referred to as a colonia;
                    (B) is located along the United States-Mexico border 
                (generally in an unincorporated area); and
                    (C) lacks basic sanitation facilities such as 
                household plumbing or a proper sewage disposal system.
            (3) Treatment works.--The term ``treatment works'' has the 
        meaning provided in section 212(2) of the Federal Water 
        Pollution Control Act (33 U.S.C. 1292(2)).

    (b) Grants for Wastewater Assistance.--The Administrator of the 
Environmental Protection Agency and the heads of other appropriate 
Federal agencies are authorized to award grants to a border State to 
provide assistance to eligible communities for the planning, design, and 
construction or improvement of sewers, treatment works, and appropriate 
connections for wastewater treatment.
    (c) Use of Funds.--Each grant awarded pursuant to subsection (b) 
shall be used to provide assistance to one or more eligible communities 
with respect to which the residents are subject to a significant health 
risk (as determined by the Administrator or the head of the Federal 
agency making the grant) attributable to the lack of access to an 
adequate and affordable treatment works for wastewater.
    (d) Cost Sharing.--The amount of a grant awarded pursuant to this 
section shall not exceed 50 percent of the costs of carrying out the 
project that is the subject of the grant.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $25,000,000 for each of the 
fiscal years 1997 through 1999.

SEC. 308. PREVENTION AND CONTROL OF ZEBRA MUSSEL INFESTATION OF LAKE 
            CHAMPLAIN.

    (a) Findings.--Section 1002(a) of the Nonindigenous Aquatic Nuisance 
Prevention and Control Act of 1990 (16 U.S.C. 4701(a)) is amended as 
follows:
            (1) By striking ``and'' at the end of paragraph (3).
            (2) By striking the period at the end of paragraph (4) and 
        inserting ``; and''.
            (3) By adding at the end the following new paragraph:
            ``(5) the zebra mussel was discovered on Lake Champlain 
        during 1993 and the opportunity exists to act quickly to 
        establish zebra mussel controls before Lake Champlain is further 
        infested and management costs escalate.''.

    (b) Ex Officio Members of Aquatic Nuisance Species Task Force.--
Section 1201(c) of such Act (16 U.S.C. 4721(c)) is amended by inserting 
``, the Lake Champlain Basin Program,'' after ``Great Lakes 
Commission''.

[[Page 110 STAT. 1690]]

 TITLE IV--ADDITIONAL ASSISTANCE FOR WATER INFRASTRUCTURE AND WATERSHEDS

SEC. 401. <<NOTE: 42 USC 300j-3c.>> NATIONAL PROGRAM.

    (a) Technical and Financial Assistance.--The Administrator of the 
Environmental Protection Agency may provide technical and financial 
assistance in the form of grants to States (1) for the construction, 
rehabilitation, and improvement of water supply systems, and (2) 
consistent with nonpoint source management programs established under 
section 319 of the Federal Water Pollution Control Act, for source water 
quality protection programs to address pollutants in navigable waters 
for the purpose of making such waters usable by water supply systems.
    (b) Limitation.--Not more than 30 percent of the amounts 
appropriated to carry out this section in a fiscal year may be used for 
source water quality protection programs described in subsection (a)(2).
    (c) Condition.--As a condition to receiving assistance under this 
section, a State shall ensure that such assistance is carried out in the 
most cost-effective manner, as determined by the State.
    (d) Authorization of Appropriations.--
            (1) Unconditional authorization.--There are authorized to be 
        appropriated to carry out this section $25,000,000 for each of 
        fiscal years 1997 through 2003. Such sums shall remain available 
        until expended.
            (2) Conditional authorization.--In addition to amounts 
        authorized under paragraph (1), there are authorized to be 
        appropriated to carry out this title $25,000,000 for each of 
        fiscal years 1997 through 2003, provided that such authorization 
        shall be in effect for a fiscal year only if at least 75 percent 
        of the total amount of funds authorized to be appropriated for 
        such fiscal year by section 1452(m) of the Safe Drinking Water 
        Act are appropriated.

    (e) Acquisition of Lands.--Assistance provided with funds made 
available under this title may be used for the acquisition of lands and 
other interests in lands; however, nothing in this title authorizes the 
acquisition of lands or other interests in lands from other than willing 
sellers.
    (f) Federal Share.--The Federal share of the cost of activities for 
which grants are made under this title shall be 50 percent.
    (g) Definitions.--In this section, the following definitions apply:
            (1) State.--The term ``State'' means a State, the District 
        of Columbia, the Commonwealth of Puerto Rico, the Virgin 
        Islands, Guam, American Samoa, and the Commonwealth of the 
        Northern Mariana Islands.
            (2) Water supply system.--The term ``water supply system'' 
        means a system for the provision to the public of piped water 
        for human consumption if such system has at least 15 service 
        connections or regularly serves at least 25 individuals and a 
        draw and fill system for the provision to the public of water 
        for human consumption. Such term does not include a system owned 
        by a Federal agency. Such term includes (A) any collection, 
        treatment, storage, and distribution facilities

[[Page 110 STAT. 1691]]

        under control of the operator of such system and used primarily 
        in connection with such system, and (B) any collection or 
        pretreatment facilities not under such control that are used 
        primarily in connection with such system.

                      TITLE V--CLERICAL AMENDMENTS

SEC. 501. CLERICAL AMENDMENTS.

    (a) Part B.--Part B (42 U.S.C. 300g et seq.) is amended as follows:
            (1) In section 1412(b), <<NOTE: 42 USC 300g-1.>> move the 
        margins of paragraph (11) 2 ems to the right.
            (2) In section 1412(b)(8), strike ``1442(g)'' and insert 
        ``1442(e)''.
            (3) In section 1415(a)(1)(A), <<NOTE: 42 USC 300g-
        4.>> insert ``the'' before ``time the variance is granted''.

    (b) Part C.--Part C (42 U.S.C. 300h et seq.) is amended as follows:
            (1) In section 1421(b)(3)(B)(i), <<NOTE: 42 USC 
        300h.>> strike ``number or States'' and inserting ``number of 
        States''.
            (2) In section 1427(k), <<NOTE: 42 USC 300h-6.>> strike 
        ``this subsection'' and inserting ``this section''.

    (c) Part E.--Section 1441(f) (42 U.S.C. 300j(f)) is amended by 
inserting a period at the end.
    (d) Section 1465(b).--Section 1465(b) (42 U.S.C. 300j-25(b)) is 
amended by striking ``as by'' and inserting ``by''.
    (e) Short Title.--Section 1 of Public Law 93-523 (88 Stat. 1600) 
is <<NOTE: 42 USC 201 note.>>  amended by inserting ``of 1974'' after 
``Act'' the second place it appears and title XIV of the Public Health 
Service Act is amended by inserting the following immediately before 
part A:

                              ``short title

    ``Sec. 1400. This title may be cited as the `Safe Drinking Water 
Act'.''.
    (f) Technical Amendments to Section Headings.--
            (1) The section heading and subsection designation of 
        subsection (a) of section 1417 (42 U.S.C. 300g-6) are amended to 
        read as follows:

          ``prohibition on use of lead pipes, solder, and flux

    ``Sec. 1417. (a)''.
            (2) The section heading and subsection designation of 
        subsection (a) of section 1426 (42 U.S.C. 300h-5) are amended to 
        read as follows:

                     ``regulation of state programs

    ``Sec. 1426. (a)''.
            (3) The section heading and subsection designation of 
        subsection (a) of section 1427 (42 U.S.C. 300h-6) are amended to 
        read as follows:

               ``sole source aquifer demonstration program

    ``Sec. 1427. (a)''.

[[Page 110 STAT. 1692]]

            (4) The section heading and subsection designation of 
        subsection (a) of section 1428 (42 U.S.C. 300h-7) are amended to 
        read as follows:

         ``state programs to establish wellhead protection areas

    ``Sec. 1428. (a)''.
            (5) The section heading and subsection designation of 
        subsection (a) of section 1432 (42 U.S.C. 300i-1) are amended to 
        read as follows:

                  ``tampering with public water systems

    ``Sec. 1432. (a)''.
            (6) The section heading and subsection designation of 
        subsection (a) of section 1451 (42 U.S.C. 300j-11) are amended 
        to read as follows:

                             ``indian tribes

    ``Sec. 1451. (a)''.
            (7) The section heading and first word of section 1461 (42 
        U.S.C. 300j-21) are amended to read as follows:

                              ``definitions

    ``Sec. 1461. As''.
            (8) The section heading and first word of section 1462 (42 
        U.S.C. 300j-22) are amended to read as follows:

        ``recall of drinking water coolers with lead-lined tanks

    ``Sec. 1462. For''.
            (9) The section heading and subsection designation of 
        subsection (a) of section 1463 (42 U.S.C. 300j-23) are amended 
        to read as follows:

                ``drinking water coolers containing lead

    ``Sec. 1463. (a)''.
            (10) The section heading and subsection designation of 
        subsection (a) of section 1464 (42 U.S.C. 300j-24) are amended 
        to read as follows:

              ``lead contamination in school drinking water

    ``Sec. 1464. (a)''.
            (11) The section heading and subsection designation of 
        subsection (a) of section 1465 (42 U.S.C. 300j-25) are amended 
        to read as follows:

[[Page 110 STAT. 1693]]

``federal assistance for state programs regarding lead contamination in 
                          school drinking water

    ``Sec. 1465. (a)''.

    Approved August 6, 1996.

LEGISLATIVE HISTORY--S. 1316 (H.R. 3604):
---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 104-632, Pt. 1 accompanying H.R. 3604 (Comm. on 
Commerce) and 104-741 (Comm. of Conference).
SENATE REPORTS: No. 104-169 (Comm. on Environment and Public Works).
CONGRESSIONAL RECORD:
                                                        Vol. 141 (1995):
                                    Nov. 29, considered and passed 
                                        Senate.
                                                        Vol. 142 (1996):
                                    June 25, H.R. 3604 considered and 
                                        passed House.
                                    July 17, S. 1316 considered and 
                                        passed House, amended, in lieu 
                                        of H.R. 3604.
                                    Aug. 2, House and Senate agreed to 
                                        conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):
            Aug. 6, Presidential remarks and statement.

                                  <all>
```