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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 465 Introduced in House (IH)]

<DOC>

115th CONGRESS
  1st Session
                                H. R. 465

  To amend the Federal Water Pollution Control Act to provide for an 
  integrated planning and permitting process, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 12, 2017

 Mr. Gibbs (for himself and Mr. Chabot) introduced the following bill; 
       which was referred to the Committee on Transportation and 
                             Infrastructure

_______________________________________________________________________

                                 A BILL

 
  To amend the Federal Water Pollution Control Act to provide for an 
  integrated planning and permitting process, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Water Quality Improvement Act of 
2017''.

SEC. 2. INTEGRATED PLANNING PROCESS.

    Section 402 of the Federal Water Pollution Control Act (33 U.S.C. 
1342) is amended by adding at the end the following:
    ``(s) Integrated Planning and Permitting.--
            ``(1) In general.--The Administrator shall establish a 
        comprehensive and flexible integrated planning process and 
        permitting process for municipal wastewater and stormwater 
        management that will help municipalities comply with the 
        requirements of this Act by enabling municipalities to identify 
        the most cost-effective and protective approaches to comply 
        with such requirements, and prioritize their investments in 
        addressing such requirements.
            ``(2) Planning and permitting process.--The Administrator 
        shall ensure that, under the planning and permitting process 
        established under paragraph (1)--
                    ``(A) actions taken by the municipality to comply 
                with the requirements of this Act are implemented in a 
                manner that--
                            ``(i) considers alternative approaches and 
                        actions for the municipality to comply with 
                        such requirements;
                            ``(ii) takes into consideration the 
                        technical feasibility and economic 
                        affordability of the alternative approaches and 
                        actions considered;
                            ``(iii) accounts for the financial 
                        capability of the municipality to comply with 
                        such requirements;
                            ``(iv) prioritizes such requirements in 
                        order to provide the greatest environmental and 
                        public health benefits for the resources 
                        expended;
                            ``(v) accounts for both the municipality's 
                        preexisting and reasonably anticipated future 
                        compliance requirements related to, as 
                        applicable--
                                    ``(I) a combined sewer overflow;
                                    ``(II) a sanitary sewer overflow;
                                    ``(III) a capacity, management, 
                                operation, and maintenance program for 
                                sanitary sewer collection systems;
                                    ``(IV) a municipal stormwater 
                                discharge;
                                    ``(V) a municipal wastewater 
                                discharge;
                                    ``(VI) a water quality-based 
                                effluent limitation to implement an 
                                applicable wasteload allocation in a 
                                total maximum daily load;
                                    ``(VII) source water protection 
                                efforts that protect surface water 
                                supplies; and
                                    ``(VIII) nonpoint source controls 
                                through proposed trading approaches or 
                                other mechanisms;
                            ``(vi) allows a municipality to develop a 
                        schedule of compliance that sequences the 
                        implementation of effluent limitations and 
                        other control measures based on the priorities 
                        established under clause (iv), in accordance 
                        with paragraph (4);
                            ``(vii) enables the municipality to 
                        implement innovative or sustainable 
                        technologies, approaches, and practices to 
                        comply with such requirements, including 
                        through the use of green infrastructure 
                        measures as set forth in the memorandum issued 
                        by the Administrator on April 20, 2011, 
                        entitled `Protecting Water Quality with Green 
                        Infrastructure in EPA Water Permitting and 
                        Enforcement Programs';
                            ``(viii) provides for meeting the 
                        requirements of this Act by using the existing 
                        flexibilities in this Act and its implementing 
                        regulations, policies, and guidance; and
                            ``(ix) reflects State requirements and 
                        planning efforts and incorporates State input 
                        on priority setting and other key 
                        implementation issues;
                    ``(B) a municipality may develop an integrated 
                plan, in consultation with the Administrator (or an 
                authorized State, in the case of a permit program 
                approved under subsection (b)), that--
                            ``(i) identifies the compliance 
                        requirements of the municipality under this 
                        Act, including effluent limitations and other 
                        control measures to be implemented by the 
                        municipality;
                            ``(ii) includes, as applicable, a schedule 
                        developed under subparagraph (A)(vi) for 
                        complying with such requirements; and
                            ``(iii) includes documentation of the 
                        integrated planning and permitting process of 
                        the municipality under this section, including 
                        data and other information on which the 
                        integrated plan is based;
                    ``(C) such an integrated plan (including as 
                applicable, the schedule of compliance included in the 
                plan) may be incorporated in whole or in part into a 
                permit issued to the municipality under this section;
                    ``(D) progress in implementing the integrated plan 
                is tracked and evaluated;
                    ``(E) a process for revising the integrated plan, 
                using adaptive management processes, to account for 
                adjustments and further actions that may be needed to 
                comply with the requirements of this Act is 
                incorporated into the integrated plan and the 
                municipality's permit issued under this section;
                    ``(F) with respect to any permit issued under this 
                subsection that includes effluent limitations and other 
                control measures that are established as part of a 
                schedule of compliance included in such an integrated 
                plan, such effluent limitations and other control 
                measures included in that permit shall be based on 
                water quality and other requirements under this Act 
                that are technically feasible and economically 
                affordable, as described in paragraphs (6) and (7); and
                    ``(G) an authorized State, in the case of a permit 
                program approved under subsection (b), may implement 
                the integrated planning process under this subsection.
            ``(3) Integrated plans.--
                    ``(A) Plan contents.--An integrated plan developed 
                under this subsection shall include the elements 
                described in Part III of the Integrated Municipal 
                Stormwater and Wastewater Planning Approach Framework, 
                issued by the Environmental Protection Agency and dated 
                May 2012.
                    ``(B) Dissemination of information.--The 
                Administrator shall--
                            ``(i) inform municipalities of the 
                        opportunity to develop an integrated plan; and
                            ``(ii) at the request of a municipality or 
                        a State, provide information and technical 
                        assistance to the municipality or State 
                        regarding developing an integrated plan.
            ``(4) Compliance schedules.--
                    ``(A) Duration.--A schedule of compliance developed 
                under paragraph (2)(A)(vi) and incorporated into a 
                permit under this section may be implemented over more 
                than 1 permit term.
                    ``(B) Sequencing implementation of high-priority 
                control measures.--A schedule of compliance under this 
                subsection may allow a municipality to sequence the 
                implementation of effluent limitations and other 
                control measures that allow the municipality to 
                implement, and assess the effectiveness of, the highest 
                priority effluent limitations and other control 
                measures before requiring implementation of other 
                effluent limitations or control measures, if the 
                schedule, once completed, would result in compliance 
                with all requirements of this Act.
                    ``(C) Reasonable progress.--A schedule of 
                compliance under this subsection shall provide for 
                reasonable progress, including interim dates and 
                milestones, as appropriate, to be made towards meeting 
                the permit requirements subject to such schedule.
                    ``(D) Controls identified in current and subsequent 
                permits.--Approved effluent limitations and other 
                control measures to be implemented by the municipality 
                pursuant to this subsection--
                            ``(i) during the term of the current permit 
                        shall be identified as such in the schedule of 
                        compliance and the current permit, and shall be 
                        requirements of the current permit; and
                            ``(ii) subsequent to the term of the 
                        current permit shall be identified as such in 
                        the schedule of compliance and the current 
                        permit, and shall become requirements of an 
                        appropriate subsequent permit, but shall not be 
                        requirements of the current permit.
                    ``(E) State authority to authorize schedules of 
                compliance in state water quality standards.--
                            ``(i) In general.--Nothing in section 
                        301(b)(1)(C) shall preclude a State from 
                        authorizing in its water quality standards the 
                        issuance of a schedule of compliance to meet 
                        water quality-based effluent limitations in 
                        permits that incorporate provisions of an 
                        integrated plan pursuant to this subsection.
                            ``(ii) Transition rule.--In any case in 
                        which a discharge is subject to a judicial 
                        order or consent decree, as of the date of 
                        enactment of this subsection, resolving an 
                        enforcement action under this Act, any schedule 
                        of compliance issued pursuant to an 
                        authorization in a State water quality standard 
                        shall not revise or otherwise affect a schedule 
                        of compliance in that order or decree, unless 
                        the order or decree is modified by agreement of 
                        the parties and the court.
            ``(5) Integrated plan and permit decisionmaking.--
                    ``(A) Approval of integrated plans and permits.--
                Integrated plans and permits incorporating such a plan 
                developed under this subsection are subject to the 
                approval of the Administrator (or an authorized State, 
                in the case of a permit program approved under 
                subsection (b)), which shall not be unreasonably 
                withheld.
                    ``(B) Renewal of integrated permit.--
                            ``(i) In general.--At the time of renewal 
                        of a municipality's integrated permit issued 
                        pursuant to this subsection, the Administrator 
                        (or an authorized State, in the case of a 
                        permit program approved under subsection (b)) 
                        shall review the schedule of compliance and 
                        other requirements included in the existing 
                        permit to determine whether the requirements 
                        should be continued or modified.
                            ``(ii) Review considerations.--The permit 
                        review shall assess whether changed 
                        circumstances warrant adjusting the actions to 
                        be taken by the municipality, including 
                        whether--
                                    ``(I) the effluent limitations and 
                                other control measures in the current 
                                permit are expected to result in the 
                                municipality complying with the 
                                requirements of this Act within the 
                                timeframes provided in the schedule of 
                                compliance;
                                    ``(II) the effluent limitations and 
                                other control measures continue to be 
                                technically feasible and economically 
                                affordable under paragraphs (6) and 
                                (7);
                                    ``(III) new innovative treatment 
                                approaches are available that provide 
                                greater environmental and public health 
                                benefits or have fewer adverse 
                                environmental impacts for the resources 
                                expended;
                                    ``(IV) the municipality is subject 
                                to additional regulatory requirements;
                                    ``(V) the municipality's financial 
                                capability has changed; and
                                    ``(VI) reasonable progress has been 
                                achieved, as provided for under 
                                paragraph (4)(C), including meeting 
                                interim dates and milestones, and if 
                                not, the reasons for such failure to 
                                achieve reasonable progress.
                            ``(iii) Continuation of requirements in 
                        renewed permit.--The permit requirements in an 
                        existing permit shall be incorporated into the 
                        renewed permit, unless the Administrator (or 
                        the authorized State, in the case of a permit 
                        program approved under subsection (b)) 
                        determines that a requirement should be 
                        modified or removed to help the municipality 
                        comply with the requirements of this Act 
                        through the implementation of technically 
                        feasible and economically affordable effluent 
                        limitations and other control measures.
                    ``(C) Transparency of permit decisions.--Prior to 
                approving a plan developed under this subsection and 
                issuing or renewing a permit incorporating such a plan 
                pursuant to this subsection, or denying a request from 
                a municipality for approval of a plan and issuance or 
                renewal of a permit incorporating such a plan under 
                this subsection, the Administrator (or an authorized 
                State, in the case of a permit program approved under 
                subsection (b)) shall--
                            ``(i) prepare a report explaining the 
                        rationale for the proposed decision; and
                            ``(ii) make the report publicly available 
                        for review and comment by the municipality and 
                        other interested parties.
                    ``(D) Administrator review of state permitting 
                decisions.--When the Administrator provides his or her 
                views to a State concerning a proposed integrated plan 
                or permit incorporating such a plan that is to be 
                issued by the State pursuant to this subsection, the 
                Administrator shall make those views available in a 
                written document that is publicly available for review 
                and comment by the municipality and other interested 
                parties.
            ``(6) Technical feasibility criteria.--In making a 
        determination of technical feasibility under this subsection, 
        the Administrator (or the State) shall consider--
                    ``(A) naturally occurring pollutant concentrations;
                    ``(B) natural, ephemeral, intermittent, or low flow 
                conditions or water levels;
                    ``(C) human-caused conditions or sources of 
                pollution that cannot be remedied or would cause more 
                environmental damage to correct than to leave in place;
                    ``(D) dams, diversions, or other types of 
                hydrologic modifications that make it not feasible to 
                restore the water body to its original condition or to 
                operate such modification in a way that would comply 
                with the requirements of this Act; and
                    ``(E) physical conditions related to the natural 
                features of the water body, such as the lack of a 
                proper substrate, cover, flow, depth, pools, riffles, 
                and the like, unrelated to water quality, that may 
                preclude compliance with the requirements of this Act.
            ``(7) Economic affordability criteria.--
                    ``(A) In general.--In making a determination of 
                economic affordability under this subsection, the 
                Administrator (or the authorized State, in the case of 
                a permit program approved under subsection (b)) shall 
                consider preexisting and potential future costs, 
                including of debt service, to the municipality for 
                implementing effluent limitations and other control 
                measures necessary to comply with the requirements of 
                this Act would result in substantial and widespread 
                economic and social impact in the service area of the 
                municipality.
                    ``(B) Basis for determining impacts.--In 
                determining whether the economic and social impacts of 
                preexisting and potential future costs under 
                subparagraph (A) are substantial and widespread, the 
                Administrator (or the State) shall consider the 
                financial condition both of the municipality and of 
                persons in the service area of the municipality, taking 
                into consideration factors including--
                            ``(i) socioeconomic indicators, including 
                        income and unemployment data for the service 
                        area of the municipality;
                            ``(ii) population trends in the service 
                        area of the municipality;
                            ``(iii) impacts on low-income households in 
                        the service area, including the ability of such 
                        households to pay basic shelter costs;
                            ``(iv) whether there is a local industry 
                        that is failing or relocating out of the 
                        service area of the municipality, or if a local 
                        industry might fail or relocate if higher taxes 
                        or fees are imposed on it;
                            ``(v) the municipality's capital 
                        improvement plan and whether the municipality 
                        would, in order to finance improvements to 
                        comply with the requirements of this Act, have 
                        to divert resources that would otherwise be 
                        used for investment in essential capital 
                        projects that provide core public services to 
                        the community;
                            ``(vi) the ability of the municipality to 
                        incur more debt, including its ability to 
                        issue, and find a market for, additional 
                        municipal bonds;
                            ``(vii) whether the debt incurred to 
                        implement the effluent limitations and other 
                        control measures has or will result in a 
                        lowering of the municipality's bond rating;
                            ``(viii) whether the municipality has 
                        limited legal authority to pass increased costs 
                        through to ratepayers and increased costs of 
                        water quality programs must be paid from its 
                        general fund;
                            ``(ix) the legally adopted rate structure 
                        for provision of water- and wastewater-related 
                        services in the service area in effect at the 
                        time that a determination of economic 
                        affordability is made;
                            ``(x) the cumulative costs paid by persons 
                        in the service area to an entity for provision 
                        of water- and wastewater-related services; and
                            ``(xi) other information determined to be 
                        relevant by the Administrator (or the 
                        authorized State, in the case of a permit 
                        program approved under subsection (b)), 
                        including whether the municipality is located 
                        in an area eligible for assistance under 
                        section 201 or 209 of the Public Works and 
                        Development Act of 1965 (42 U.S.C. 3141, 3149), 
                        as described in section 301 of that Act (42 
                        U.S.C. 3161).
                    ``(C) Cumulative costs for water- and wastewater-
                related services.--
                            ``(i) Inclusions.--Cumulative costs for the 
                        provision of water- and wastewater-related 
                        services to be considered under subparagraph 
                        (B)(xi) shall include the municipality's 
                        preexisting and reasonably anticipated future 
                        costs paid by a person, including through taxes 
                        and fees, for the municipality's cost of--
                                    ``(I) compliance with Federal and 
                                State water- and wastewater-related and 
                                other regulatory requirements;
                                    ``(II) operation and maintenance of 
                                water and wastewater systems;
                                    ``(III) asset management; and
                                    ``(IV) servicing any debt incurred 
                                or to be incurred to finance the other 
                                costs referred to in this clause.
                            ``(ii) Substantial impact.--In making a 
                        determination of economic impact under 
                        subparagraph (B), the Administrator (or the 
                        State) shall consider the impact on a person to 
                        be substantial if the cumulative costs paid by 
                        the person exceeds, or is projected to exceed, 
                        2 percent of the person's annual household 
                        income.
                            ``(iii) Widespread impact.--In making a 
                        determination of economic impact under 
                        subparagraph (B), the Administrator (or the 
                        State) shall consider the impact to be 
                        widespread if 20 percent or more of persons in 
                        the service area of the municipality face a 
                        substantial impact described in clause (ii).
                    ``(D) Additional requirements.--In making a 
                determination of economic affordability under this 
                subsection, the Administrator (or the State) shall not 
                base the determination on--
                            ``(i) median household income in the 
                        service area of the municipality; or
                            ``(ii) an expected minimum level of 
                        expenditure on the provision of water and 
                        wastewater services by a municipality.
            ``(8) Flexibility.--
                    ``(A) In general.--Nothing in this subsection 
                reduces or eliminates any flexibility available under 
                this Act, including the authority of a State to--
                            ``(i) revise a water quality standard after 
                        a use attainability analysis under section 
                        131.10(g) of title 40, Code of Federal 
                        Regulations (as in effect on the date of 
                        enactment of this subsection); or
                            ``(ii) adopt a water quality standards 
                        variance under section 131.14 of title 40, Code 
                        of Federal Regulations (as in effect on the 
                        date of enactment of this subsection).
                    ``(B) Approvals.--Such a revision of a standard or 
                adoption of a variance by a State under subparagraph 
                (A)(i) is subject to the approval of the Administrator 
                under section 303(c), which shall not be unreasonably 
                withheld.''.

SEC. 3. UPDATING FINANCIAL CAPABILITY ASSESSMENT GUIDANCE.

    (a) In General.--
            (1) Update.--Not later than 15 months after the date of 
        enactment of this Act, the Administrator shall update the 
        financial capability assessment guidance published by the 
        Administrator entitled ``Combined Sewer Overflows--Guidance for 
        Financial Capability Assessment and Schedule Development'' (EPA 
        832-B-97-004), dated February 1997.
            (2) Scope.--In updating the financial capability assessment 
        guidance developed under subparagraph (1), the Administrator 
        shall ensure that the guidance may be used for assessing the 
        financial capability of municipalities to implement effluent 
        limitations and other control measures under the Federal Water 
        Pollution Control Act.
    (b) Requirements for Updating.--In updating the financial 
capability assessment guidance under subsection (a), the Administrator 
shall--
            (1) consult with, and solicit advice and recommendations 
        from, representative municipal and State officials (including 
        their representative regional or national organizations), 
        stakeholders, and other interested parties regarding how to 
        assess the financial capability of municipalities to implement 
        effluent limitations and other control measures under the 
        Federal Water Pollution Control Act;
            (2) ensure transparency in the consultation process, 
        including promptly making accessible to the public all 
        communications, records, and other documents of all meetings 
        that are part of the consultation process;
            (3) ensure that the updated guidance takes into 
        consideration relevant studies, reports, and other information 
        related to assessing the financial capability of municipalities 
        to implement effluent limitations and other control measures, 
        including--
                    (A) the reports of recommendations to the 
                Environmental Protection Agency from the Environmental 
                Financial Advisory Board related to financial 
                capability assessments of municipalities; and
                    (B) the memorandum of the Environmental Protection 
                Agency entitled ``Financial Capability Assessment 
                Framework for Municipal Clean Water Act Requirements'', 
                dated November 24, 2014, and the accompanying guidance 
                entitled ``Financial Capability Assessment Framework'', 
                dated November 24, 2014;
            (4) ensure the evaluations by the Administrator of 
        financial capability assessment and schedule of compliance 
        development under subsection (s) of section 402 of the Federal 
        Water Pollution Control Act reflect the economic affordability 
        criteria described in subsection (s)(7) of that section;
            (5) ensure the updated guidance provides a consistent 
        reference point to aid parties in negotiating reasonable and 
        effective schedules for implementing effluent limitations and 
        other control measures under the Federal Water Pollution 
        Control Act;
            (6) publish in the Federal Register proposed updated 
        financial capability assessment guidance under this section, 
        and provide a period for public comment of not less than 60 
        days;
            (7) prepare final updated financial capability assessment 
        guidance, taking into account--
                    (A) the advice and recommendations obtained from 
                the municipal and State officials (including their 
                representative regional or national organizations), 
                stakeholders, and other interested parties; and
                    (B) the public comments received during the public 
                comment period; and
            (8) publish in the Federal Register, and submit to the 
        Committee on Transportation and Infrastructure of the House of 
        Representatives and the Committee on Environment and Public 
        Works of the Senate, the final updated financial capability 
        assessment guidance.

SEC. 4. INTEGRATED PERMIT PILOT PROJECTS.

    (a) In General.--In the first 5 fiscal years beginning after the 
date of enactment of this Act, the Administrator, in coordination with 
appropriate State, local, and regional authorities, shall work 
cooperatively with, and facilitate the efforts of, not fewer than 15 
municipalities to develop and implement integrated plans and permits to 
meet the requirements of the Federal Water Pollution Control Act (33 
U.S.C. 1342) in a manner consistent with section 402(s) of that Act.
    (b) Selection of Municipalities.--
            (1) Eligibility of municipalities.--A municipality shall be 
        eligible to participate in the pilot program under subsection 
        (a) if the municipality--
                    (A) has a permit issued under section 402 of the 
                Federal Water Pollution Control Act; or
                    (B) is operating under an administrative order, 
                administrative consent agreement, or judicial consent 
                decree to comply with the requirements of that Act.
            (2) Factors.--In selecting municipalities eligible under 
        paragraph (1), the Administrator shall--
                    (A) give priority to municipalities--
                            (i) that are operating under an 
                        administrative order, administrative consent 
                        agreement, or judicial consent decree to comply 
                        with the requirements of the Federal Water 
                        Pollution Control Act;
                            (ii) having difficulties complying with the 
                        Federal Water Pollution Control Act, in 
                        addition to the municipalities described in 
                        clause (i); or
                            (iii) that are affected by affordability 
                        constraints in planning and implementing 
                        effluent limitations and other control measures 
                        under the Federal Water Pollution Control Act 
                        to address wet weather discharges or other 
                        water pollution issues from their wastewater 
                        and stormwater facilities;
                    (B) give further priority to those municipalities 
                under subparagraph (A)--
                            (i) with knowledge and experience in 
                        developing integrated and adaptive clean water 
                        management practices, without regard to the 
                        status of the municipality in the process of 
                        planning or implementing such practices; and
                            (ii) that are seeking to develop and 
                        implement an integrated plan that includes 
                        adaptive approaches to account for changed or 
                        future uncertain circumstances; and
                    (C) seek to select municipalities--
                            (i) from different geographical regions of 
                        the United States; and
                            (ii) of various population sizes.
            (3) Additional authority.--In carrying out this section, 
        the Administrator may, with the agreement of and in 
        coordination with a municipality and the applicable State--
                    (A) modify the implementation terms of an existing 
                administrative order or administrative consent 
                agreement, or seek to modify a judicial consent decree 
                entered into by the municipality with the Administrator 
                pursuant to the Federal Water Pollution Control Act; 
                and
                    (B) incorporate such modified implementation terms, 
                including the municipality's integrated plan, into an 
                integrated permit issued pursuant to section 402(s) of 
                the Federal Water Pollution Control Act.
    (c) Report to Congress.--Not later than 1 year after the date of 
enactment of this Act, and each year thereafter for 5 years, the 
Administrator shall prepare and submit to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Environment and Public Works of the Senate a report on 
the implementation of this section and issuance of integrated permits 
pursuant to section 402(s) of the Federal Water Pollution Control Act, 
including--
            (1) identification of the municipalities selected under 
        this section;
            (2) an evaluation of the specific outcomes achieved with 
        respect to--
                    (A) reducing the costs of complying with the 
                requirements of the Federal Water Pollution Control Act 
                for the municipalities selected under this section; and
                    (B) making reasonable progress towards achieving 
                the applicable water quality and human health 
                objectives of the Federal Water Pollution Control Act; 
                and
            (3) recommendations of any proposed legislative or 
        administrative changes to improve the effectiveness and 
        efficiency of the integrated planning and permitting process 
        under section 402(s) of the Federal Water Pollution Control 
        Act.

SEC. 5. DEFINITIONS.

    In this Act:
            (1) Municipality.--The term ``municipality'' has the 
        meaning given that term in section 502(4) of the Federal Water 
        Pollution Control Act (33 U.S.C. 1362(4)).
            (2) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
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