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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1262 Reported in House (RH)]

                                                   Union Calendar No. 9
111th CONGRESS
  1st Session
                                H. R. 1262

                          [Report No. 111-26]

     To amend the Federal Water Pollution Control Act to authorize 
 appropriations for State water pollution control revolving funds, and 
                          for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 3, 2009

  Mr. Oberstar (for himself, Ms. Eddie Bernice Johnson of Texas, Mr. 
 Young of Alaska, Mrs. Tauscher, Mr. Bishop of New York, Mr. LoBiondo, 
Mrs. Napolitano, Mr. Arcuri, Mr. Pascrell, and Mr. McNerney) introduced 
      the following bill; which was referred to the Committee on 
                   Transportation and Infrastructure

                             March 9, 2009

 Additional sponsors: Ms. Norton, Mr. Capuano, Mr. Filner, Mr. Kagen, 
                      and Ms. Edwards of Maryland

                             March 9, 2009

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on March 
                                3, 2009]

_______________________________________________________________________

                                 A BILL

 
     To amend the Federal Water Pollution Control Act to authorize 
 appropriations for State water pollution control revolving funds, 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; TABLE OF CONTENTS.

    (a) In General.--This Act may be cited as the ``Water Quality 
Investment Act of 2009''.
    (b) Table of Contents.--

 1. Short title; table of contents.
 2. Amendment of Federal Water Pollution Control Act.

                    TITLE I--WATER QUALITY FINANCING

            Subtitle A--Technical and Management Assistance

 1101. Technical assistance.
 1102. State management assistance.
 1103. Watershed pilot projects.

              Subtitle B--Construction of Treatment Works

 1201. Sewage collection systems.
 1202. Treatment works defined.

       Subtitle C--State Water Pollution Control Revolving Funds

 1301. General authority for capitalization grants.
 1302. Capitalization grant agreements.
 1303. Water pollution control revolving loan funds.
 1304. Allotment of funds.
 1305. Intended use plan.
 1306. Annual reports.
 1307. Technical assistance; requirements for use of American 
                            materials.
 1308. Authorization of appropriations.

                     Subtitle D--General Provisions

 1401. Definition of treatment works.
 1402. Funding for Indian programs.

                       Subtitle E--Tonnage Duties

 1501. Tonnage duties.

              TITLE II--ALTERNATIVE WATER SOURCE PROJECTS

 2001. Pilot program for alternative water source projects.

                TITLE III--SEWER OVERFLOW CONTROL GRANTS

 3001. Sewer overflow control grants.

   TITLE IV--MONITORING, REPORTING, AND PUBLIC NOTIFICATION OF SEWER 
                               OVERFLOWS

 4001. Monitoring, reporting, and public notification of sewer 
                            overflows.

              TITLE V--GREAT LAKES LEGACY REAUTHORIZATION

 5001. Remediation of sediment contamination in areas of concern.
 5002. Public information program.
 5003. Contaminated sediment remediation approaches, technologies, and 
                            techniques.

SEC. 2. AMENDMENT OF FEDERAL WATER POLLUTION CONTROL 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 a section or other provision of the Federal Water Pollution 
Control Act (33 U.S.C. 1251 et seq.).

                    TITLE I--WATER QUALITY FINANCING

            Subtitle A--Technical and Management Assistance

SEC. 1101. TECHNICAL ASSISTANCE.

    (a) Technical Assistance for Rural and Small Treatment Works.--
Section 104(b) (33 U.S.C. 1254(b)) is amended--
            (1) by striking ``and'' at the end of paragraph (6);
            (2) by striking the period at the end of paragraph (7) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(8) make grants to nonprofit organizations--
                    ``(A) to provide technical assistance to rural and 
                small municipalities for the purpose of assisting, in 
                consultation with the State in which the assistance is 
                provided, such municipalities in the planning, 
                developing, and acquisition of financing for eligible 
                projects described in section 603(c);
                    ``(B) to provide technical assistance and training 
                for rural and small publicly owned treatment works and 
                decentralized wastewater treatment systems to enable 
                such treatment works and systems to protect water 
                quality and achieve and maintain compliance with the 
                requirements of this Act; and
                    ``(C) to disseminate information to rural and small 
                municipalities and municipalities that meet the 
                affordability criteria established under section 
                603(i)(2) by the State in which the municipality is 
                located with respect to planning, design, construction, 
                and operation of publicly owned treatment works and 
                decentralized wastewater treatment systems.''.
    (b) Authorization of Appropriations.--Section 104(u) (33 U.S.C. 
1254(u)) is amended--
            (1) by striking ``and (6)'' and inserting ``(6)''; and
            (2) by inserting before the period at the end the 
        following: ``; and (7) not to exceed $100,000,000 for each of 
        fiscal years 2010 through 2014 for carrying out subsections 
        (b)(3), (b)(8), and (g), except that not less than 20 percent 
        of the amounts appropriated pursuant to this paragraph in a 
        fiscal year shall be used for carrying out subsection (b)(8)''.
    (c) Small Flows Clearinghouse.--Section 104(q)(4) (33 U.S.C. 
1254(q)(4)) is amended--
            (1) in the first sentence by striking ``$1,000,000'' and 
        inserting ``$3,000,000''; and
            (2) in the second sentence by striking ``1986'' and 
        inserting ``2011''.

SEC. 1102. STATE MANAGEMENT ASSISTANCE.

    Section 106(a) (33 U.S.C. 1256(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (1);
            (2) by striking the semicolon at the end of paragraph (2) 
        and inserting ``; and''; and
            (3) by inserting after paragraph (2) the following:
            ``(3) such sums as may be necessary for each of fiscal 
        years 1991 through 2009, and $300,000,000 for each of fiscal 
        years 2010 through 2014;''.

SEC. 1103. WATERSHED PILOT PROJECTS.

    (a) Pilot Projects.--Section 122 (33 U.S.C. 1274) is amended--
            (1) in the section heading by striking ``wet weather''; and
            (2) in subsection (a)--
                    (A) in the matter preceding paragraph (1) by 
                striking ``wet weather discharge'';
                    (B) in paragraph (2) by striking ``in reducing such 
                pollutants'' and all that follows before the period at 
                the end and inserting ``to manage, reduce, treat, or 
                reuse municipal stormwater, including low-impact 
                development technologies''; and
                    (C) by adding at the end the following:
            ``(3) Watershed partnerships.--Efforts of municipalities 
        and property owners to demonstrate cooperative ways to address 
        nonpoint sources of pollution to reduce adverse impacts on 
        water quality.
            ``(4) Integrated water resource plan.--The development of 
        an integrated water resource plan for the coordinated 
        management and protection of surface water, ground water, and 
        stormwater resources on a watershed or subwatershed basis to 
        meet the objectives, goals, and policies of this Act.''.
    (b) Authorization of Appropriations.--Section 122(c)(1) is amended 
by striking ``for fiscal year 2004'' and inserting ``for each of fiscal 
years 2004 through 2014''.
    (c) Report to Congress.--Section 122(d) is amended by striking ``5 
years after the date of enactment of this section,'' and inserting 
``October 1, 2011,''.

              Subtitle B--Construction of Treatment Works

SEC. 1201. SEWAGE COLLECTION SYSTEMS.

    Section 211 (33 U.S.C. 1291) is amended--
            (1) by striking the section heading and all that follows 
        through ``(a) No'' and inserting the following:

``SEC. 211. SEWAGE COLLECTION SYSTEMS.

    ``(a) In General.--No'';
            (2) in subsection (b) by inserting ``Population Density.--
        '' after ``(b)''; and
            (3) by striking subsection (c) and inserting the following:
    ``(c) Exceptions.--
            ``(1) Replacement and major rehabilitation.--
        Notwithstanding the requirement of subsection (a)(1) concerning 
        the existence of a collection system as a condition of 
        eligibility, a project for replacement or major rehabilitation 
        of a collection system existing on January 1, 2007, shall be 
        eligible for a grant under this title if the project otherwise 
        meets the requirements of subsection (a)(1) and meets the 
        requirement of paragraph (3).
            ``(2) New systems.--Notwithstanding the requirement of 
        subsection (a)(2) concerning the existence of a community as a 
        condition of eligibility, a project for a new collection system 
        to serve a community existing on January 1, 2007, shall be 
        eligible for a grant under this title if the project otherwise 
        meets the requirements of subsection (a)(2) and meets the 
        requirement of paragraph (3).
            ``(3) Requirement.--A project meets the requirement of this 
        paragraph if the purpose of the project is to accomplish the 
        objectives, goals, and policies of this Act by addressing an 
        adverse environmental condition existing on the date of 
        enactment of this paragraph.''.

SEC. 1202. TREATMENT WORKS DEFINED.

    Section 212(2)(A) (33 U.S.C. 1292(2)(A)) is amended--
            (1) by striking ``any works, including site'';
            (2) by striking ``is used for ultimate'' and inserting 
        ``will be used for ultimate''; and
            (3) by inserting before the period at the end the 
        following: ``and acquisition of other lands, and interests in 
        lands, which are necessary for construction''.

       Subtitle C--State Water Pollution Control Revolving Funds

SEC. 1301. GENERAL AUTHORITY FOR CAPITALIZATION GRANTS.

    Section 601(a) (33 U.S.C. 1381(a)) is amended by striking ``for 
providing assistance'' and all that follows through the period at the 
end and inserting the following: ``to accomplish the objectives, goals, 
and policies of this Act by providing assistance for projects and 
activities identified in section 603(c).''.

SEC. 1302. CAPITALIZATION GRANT AGREEMENTS.

    (a) Reporting Infrastructure Assets.--Section 602(b)(9) (33 U.S.C. 
1382(b)(9)) is amended by striking ``standards'' and inserting 
``standards, including standards relating to the reporting of 
infrastructure assets''.
    (b) Additional Requirements.--Section 602(b) (33 U.S.C. 1382(b)) is 
amended--
            (1) in paragraph (6)--
                    (A) by striking ``before fiscal year 1995'';
                    (B) by striking ``funds directly made available by 
                capitalization grants under this title and section 
                205(m) of this Act'' and inserting ``assistance made 
                available by a State water pollution control revolving 
                fund as authorized under this title, or with assistance 
                made available under section 205(m), or both,''; and
                    (C) by striking ``201(b)'' and all that follows 
                through ``513'' and inserting ``211 and 511(c)(1)'';
            (2) by striking ``and'' at the end of paragraph (9);
            (3) by striking the period at the end of paragraph (10) and 
        inserting a semicolon; and
            (4) by adding at the end the following:
            ``(11) the State will establish, maintain, invest, and 
        credit the fund with repayments, such that the fund balance 
        will be available in perpetuity for providing financial 
        assistance in accordance with this title;
            ``(12) any fees charged by the State to recipients of 
        assistance that are considered program income will be used for 
        the purpose of financing the cost of administering the fund or 
        financing projects or activities eligible for assistance from 
        the fund;
            ``(13) beginning in fiscal year 2011, the State will 
        include as a condition of providing assistance to a 
        municipality or intermunicipal, interstate, or State agency 
        that the recipient of such assistance certify, in a manner 
        determined by the Governor of the State, that the recipient--
                    ``(A) has studied and evaluated the cost and 
                effectiveness of the processes, materials, techniques, 
                and technologies for carrying out the proposed project 
                or activity for which assistance is sought under this 
                title, and has selected, to the extent practicable, a 
                project or activity that maximizes the potential for 
                efficient water use, reuse, and conservation, and 
                energy conservation, taking into account the cost of 
                constructing the project or activity, the cost of 
                operating and maintaining the project or activity over 
                its life, and the cost of replacing the project or 
                activity; and
                    ``(B) has considered, to the maximum extent 
                practicable and as determined appropriate by the 
                recipient, the costs and effectiveness of other design, 
                management, and financing approaches for carrying out a 
                project or activity for which assistance is sought 
                under this title, taking into account the cost of 
                constructing the project or activity, the cost of 
                operating and maintaining the project or activity over 
                its life, and the cost of replacing the project or 
                activity;
            ``(14) the State will use at least 10 percent of the amount 
        of each capitalization grant received by the State under this 
        title after September 30, 2010, to provide assistance to 
        municipalities of fewer than 10,000 individuals that meet the 
        affordability criteria established by the State under section 
        603(i)(2) for activities included on the State's priority list 
        established under section 603(g), to the extent that there are 
        sufficient applications for such assistance;
            ``(15) a contract to be carried out using funds directly 
        made available by a capitalization grant under this title for 
        program management, construction management, feasibility 
        studies, preliminary engineering, design, engineering, 
        surveying, mapping, or architectural related services shall be 
        negotiated in the same manner as a contract for architectural 
        and engineering services is negotiated under chapter 11 of 
        title 40, United States Code, or an equivalent State 
        qualifications-based requirement (as determined by the Governor 
        of the State); and
            ``(16) the requirements of section 513 will apply to the 
        construction of treatment works carried out in whole or in part 
        with assistance made available by a State water pollution 
        control revolving fund as authorized under this title, or with 
        assistance made available under section 205(m), or both, in the 
        same manner as treatment works for which grants are made under 
        this Act.''.

SEC. 1303. WATER POLLUTION CONTROL REVOLVING LOAN FUNDS.

    (a) Projects and Activities Eligible for Assistance.--Section 
603(c) (33 U.S.C. 1383(c)) is amended to read as follows:
    ``(c) Projects and Activities Eligible for Assistance.--The amounts 
of funds available to each State water pollution control revolving fund 
shall be used only for providing financial assistance--
            ``(1) to any municipality or intermunicipal, interstate, or 
        State agency for construction of publicly owned treatment 
        works;
            ``(2) for the implementation of a management program 
        established under section 319;
            ``(3) for development and implementation of a conservation 
        and management plan under section 320;
            ``(4) for the implementation of lake protection programs 
        and projects under section 314;
            ``(5) for repair or replacement of decentralized wastewater 
        treatment systems that treat domestic sewage;
            ``(6) for measures to manage, reduce, treat, or reuse 
        municipal stormwater, agricultural stormwater, and return flows 
        from irrigated agriculture;
            ``(7) to any municipality or intermunicipal, interstate, or 
        State agency for measures to reduce the demand for publicly 
        owned treatment works capacity through water conservation, 
        efficiency, or reuse; and
            ``(8) for the development and implementation of watershed 
        projects meeting the criteria set forth in section 122.''.
    (b) Extended Repayment Period.--Section 603(d)(1) (33 U.S.C. 
1383(d)(1)) is amended--
            (1) in subparagraph (A) by striking ``20 years'' and 
        inserting ``the lesser of 30 years or the design life of the 
        project to be financed with the proceeds of the loan''; and
            (2) in subparagraph (B) by striking ``not later than 20 
        years after project completion'' and inserting ``upon the 
        expiration of the term of the loan''.
    (c) Fiscal Sustainability Plan.--Section 603(d)(1) (33 U.S.C. 
1383(d)(1)) is further amended--
            (1) by striking ``and'' at the end of subparagraph (C);
            (2) by inserting ``and'' at the end of subparagraph (D); 
        and
            (3) by adding at the end the following:
                    ``(E) for any portion of a treatment works proposed 
                for repair, replacement, or expansion, and eligible for 
                assistance under section 603(c)(1), the recipient of a 
                loan will develop and implement a fiscal sustainability 
                plan that includes--
                            ``(i) an inventory of critical assets that 
                        are a part of that portion of the treatment 
                        works;
                            ``(ii) an evaluation of the condition and 
                        performance of inventoried assets or asset 
                        groupings; and
                            ``(iii) a plan for maintaining, repairing, 
                        and, as necessary, replacing that portion of 
                        the treatment works and a plan for funding such 
                        activities;''.
    (d) Administrative Expenses.--Section 603(d)(7) (33 U.S.C. 
1383(d)(7)) is amended by inserting before the period at the end the 
following: ``, $400,000 per year, or \1/5\ percent per year of the 
current valuation of the fund, whichever amount is greatest, plus the 
amount of any fees collected by the State for such purpose regardless 
of the source''.
    (e) Technical and Planning Assistance for Small Systems.--Section 
603(d) (33 U.S.C. 1383(d)) is amended--
            (1) by striking ``and'' at the end of paragraph (6);
            (2) by striking the period at the end of paragraph (7) and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(8) to provide grants to owners and operators of 
        treatment works that serve a population of 10,000 or fewer for 
        obtaining technical and planning assistance and assistance in 
        financial management, user fee analysis, budgeting, capital 
        improvement planning, facility operation and maintenance, 
        equipment replacement, repair schedules, and other activities 
        to improve wastewater treatment plant management and 
        operations, except that the total amount provided by the State 
        in grants under this paragraph for a fiscal year may not exceed 
        one percent of the total amount of assistance provided by the 
        State from the fund in the preceding fiscal year, or 2 percent 
        of the total amount received by the State in capitalization 
        grants under this title in the preceding fiscal year, whichever 
        amount is greatest; and
            ``(9) to provide grants to owners and operators of 
        treatment works for conducting an assessment of the energy and 
        water consumption of the treatment works, and evaluating 
        potential opportunities for energy and water conservation 
        through facility operation and maintenance, equipment 
        replacement, and projects or activities that promote the 
        efficient use of energy and water by the treatment works, 
        except that the total amount provided by the State in grants 
        under this paragraph for a fiscal year may not exceed one 
        percent of the total amount of assistance provided by the State 
        from the fund in the preceding fiscal year, or 2 percent of the 
        total amount received by the State in capitalization grants 
        under this title in the preceding fiscal year, whichever amount 
        is greatest.''.
    (f) Additional Subsidization.--Section 603 (33 U.S.C. 1383) is 
amended by adding at the end the following:
    ``(i) Additional Subsidization.--
            ``(1) In general.--In any case in which a State provides 
        assistance to a municipality or intermunicipal, interstate, or 
        State agency under subsection (d), the State may provide 
        additional subsidization, including forgiveness of principal 
        and negative interest loans--
                    ``(A) to benefit a municipality that--
                            ``(i) meets the State's affordability 
                        criteria established under paragraph (2); or
                            ``(ii) does not meet the State's 
                        affordability criteria if the recipient--
                                    ``(I) seeks additional 
                                subsidization to benefit individual 
                                ratepayers in the residential user rate 
                                class;
                                    ``(II) demonstrates to the State 
                                that such ratepayers will experience a 
                                significant hardship from the increase 
                                in rates necessary to finance the 
                                project or activity for which 
                                assistance is sought; and
                                    ``(III) ensures, as part of an 
                                assistance agreement between the State 
                                and the recipient, that the additional 
                                subsidization provided under this 
                                paragraph is directed through a user 
                                charge rate system (or other 
                                appropriate method) to such ratepayers; 
                                or
                    ``(B) to implement a process, material, technique, 
                or technology to address water-efficiency goals, 
                address energy-efficiency goals, mitigate stormwater 
                runoff, or encourage environmentally sensitive project 
                planning, design, and construction.
            ``(2) Affordability criteria.--
                    ``(A) Establishment.--On or before September 30, 
                2010, and after providing notice and an opportunity for 
                public comment, a State shall establish affordability 
                criteria to assist in identifying municipalities that 
                would experience a significant hardship raising the 
                revenue necessary to finance a project or activity 
                eligible for assistance under section 603(c)(1) if 
                additional subsidization is not provided. Such criteria 
                shall be based on income data, population trends, and 
                other data determined relevant by the State.
                    ``(B) Existing criteria.--If a State has previously 
                established, after providing notice and an opportunity 
                for public comment, affordability criteria that meet 
                the requirements of subparagraph (A), the State may use 
                the criteria for the purposes of this subsection. For 
                purposes of this Act, any such criteria shall be 
                treated as affordability criteria established under 
                this paragraph.
                    ``(C) Information to assist states.--The 
                Administrator may publish information to assist States 
                in establishing affordability criteria under 
                subparagraph (A).
            ``(3) Priority.--A State may give priority to a recipient 
        for a project or activity eligible for funding under section 
        603(c)(1) if the recipient meets the State's affordability 
        criteria.
            ``(4) Set-aside.--
                    ``(A) In general.--In any fiscal year in which the 
                Administrator has available for obligation more than 
                $1,000,000,000 for the purposes of this title, a State 
                shall provide additional subsidization under this 
                subsection in the amount specified in subparagraph (B) 
                to eligible entities described in paragraph (1) for 
                projects and activities identified in the State's 
                intended use plan prepared under section 606(c) to the 
                extent that there are sufficient applications for such 
                assistance.
                    ``(B) Amount.--In a fiscal year described in 
                subparagraph (A), a State shall set aside for purposes 
                of subparagraph (A) an amount not less than 25 percent 
                of the difference between--
                            ``(i) the total amount that would have been 
                        allotted to the State under section 604 for 
                        such fiscal year if the amount available to the 
                        Administrator for obligation under this title 
                        for such fiscal year had been equal to 
                        $1,000,000,000; and
                            ``(ii) the total amount allotted to the 
                        State under section 604 for such fiscal year.
            ``(5) Limitation.--The total amount of additional 
        subsidization provided under this subsection by a State may not 
        exceed 30 percent of the total amount of capitalization grants 
        received by the State under this title in fiscal years 
        beginning after September 30, 2009.''.

SEC. 1304. ALLOTMENT OF FUNDS.

    (a) In General.--Section 604(a) (33 U.S.C. 1384(a)) is amended to 
read as follows:
    ``(a) Allotments.--
            ``(1) Fiscal years 2010 and 2011.--Sums appropriated to 
        carry out this title for each of fiscal years 2010 and 2011 
        shall be allotted by the Administrator in accordance with the 
        formula used to allot sums appropriated to carry out this title 
        for fiscal year 2009.
            ``(2) Fiscal year 2012 and thereafter.--Sums appropriated 
        to carry out this title for fiscal year 2012 and each fiscal 
        year thereafter shall be allotted by the Administrator as 
        follows:
                    ``(A) Amounts that do not exceed $1,350,000,000 
                shall be allotted in accordance with the formula 
                described in paragraph (1).
                    ``(B) Amounts that exceed $1,350,000,000 shall be 
                allotted in accordance with the formula developed by 
                the Administrator under subsection (d).''.
    (b) Planning Assistance.--Section 604(b) (33 U.S.C. 1384(b)) is 
amended by striking ``1 percent'' and inserting ``2 percent''.
    (c) Formula.--Section 604 (33 U.S.C. 1384) is amended by adding at 
the end the following:
    ``(d) Formula Based on Water Quality Needs.--Not later than 
September 30, 2011, and after providing notice and an opportunity for 
public comment, the Administrator shall publish an allotment formula 
based on water quality needs in accordance with the most recent survey 
of needs developed by the Administrator under section 516(b).''.

SEC. 1305. INTENDED USE PLAN.

    (a) Integrated Priority List.--Section 603(g) (33 U.S.C. 1383(g)) 
is amended to read as follows:
    ``(g) Priority List.--
            ``(1) In general.--For fiscal year 2011 and each fiscal 
        year thereafter, a State shall establish or update a list of 
        projects and activities for which assistance is sought from the 
        State's water pollution control revolving fund. Such projects 
        and activities shall be listed in priority order based on the 
        methodology established under paragraph (2). The State may 
        provide financial assistance from the State's water pollution 
        control revolving fund only with respect to a project or 
        activity included on such list. In the case of projects and 
        activities eligible for assistance under section 603(c)(2), the 
        State may include a category or subcategory of nonpoint sources 
        of pollution on such list in lieu of a specific project or 
        activity.
            ``(2) Methodology.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this paragraph, and after 
                providing notice and opportunity for public comment, 
                each State (acting through the State's water quality 
                management agency and other appropriate agencies of the 
                State) shall establish a methodology for developing a 
                priority list under paragraph (1).
                    ``(B) Priority for projects and activities that 
                achieve greatest water quality improvement.--In 
                developing the methodology, the State shall seek to 
                achieve the greatest degree of water quality 
                improvement, taking into consideration the requirements 
                of section 602(b)(5) and section 603(i)(3), whether 
                such water quality improvements would be realized 
                without assistance under this title, and whether the 
                proposed projects and activities would address water 
                quality impairments associated with existing treatment 
                works.
                    ``(C) Considerations in selecting projects and 
                activities.--In determining which projects and 
                activities will achieve the greatest degree of water 
                quality improvement, the State shall consider--
                            ``(i) information developed by the State 
                        under sections 303(d) and 305(b);
                            ``(ii) the State's continuing planning 
                        process developed under section 303(e);
                            ``(iii) the State's management program 
                        developed under section 319; and
                            ``(iv) conservation and management plans 
                        developed under section 320.
                    ``(D) Nonpoint sources.--For categories or 
                subcategories of nonpoint sources of pollution that a 
                State may include on its priority list under paragraph 
                (1), the State shall consider the cumulative water 
                quality improvements associated with projects or 
                activities in such categories or subcategories.
                    ``(E) Existing methodologies.--If a State has 
                previously developed, after providing notice and an 
                opportunity for public comment, a methodology that 
                meets the requirements of this paragraph, the State may 
                use the methodology for the purposes of this 
                subsection.''.
    (b) Intended Use Plan.--Section 606(c) (33 U.S.C. 1386(c)) is 
amended--
            (1) in the matter preceding paragraph (1) by striking 
        ``each State shall annually prepare'' and inserting ``each 
        State (acting through the State's water quality management 
        agency and other appropriate agencies of the State) shall 
        annually prepare and publish'';
            (2) by striking paragraph (1) and inserting the following:
            ``(1) the State's priority list developed under section 
        603(g);'';
            (3) in paragraph (4)--
                    (A) by striking ``and (6)'' and inserting ``(6), 
                (15), and (17)''; and
                    (B) by striking ``and'' at the end;
            (4) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
            (5) by adding at the end the following:
            ``(6) if the State does not fund projects and activities in 
        the order of the priority established under section 603(g), an 
        explanation of why such a change in order is appropriate.''.
    (c) Transitional Provision.--Before completion of a priority list 
based on a methodology established under section 603(g) of the Federal 
Water Pollution Control Act (as amended by this section), a State shall 
continue to comply with the requirements of sections 603(g) and 606(c) 
of such Act, as in effect on the day before the date of enactment of 
this Act.

SEC. 1306. ANNUAL REPORTS.

    Section 606(d) (33 U.S.C. 1386(d)) is amended by inserting ``the 
eligible purpose under section 603(c) for which the assistance is 
provided,'' after ``loan amounts,''.

SEC. 1307. TECHNICAL ASSISTANCE; REQUIREMENTS FOR USE OF AMERICAN 
              MATERIALS.

    Title VI (33 U.S.C. 1381 et seq.) is amended--
            (1) by redesignating section 607 as section 609; and
            (2) by inserting after section 606 the following:

``SEC. 607. TECHNICAL ASSISTANCE.

    ``(a) Simplified Procedures.--Not later than 1 year after the date 
of enactment of this section, the Administrator shall assist the States 
in establishing simplified procedures for treatment works to obtain 
assistance under this title.
    ``(b) Publication of Manual.--Not later than 2 years after the date 
of the enactment of this section, and after providing notice and 
opportunity for public comment, the Administrator shall publish a 
manual to assist treatment works in obtaining assistance under this 
title and publish in the Federal Register notice of the availability of 
the manual.
    ``(c) Compliance Criteria.--At the request of any State, the 
Administrator, after providing notice and an opportunity for public 
comment, shall assist in the development of criteria for a State to 
determine compliance with the conditions of funding assistance 
established under sections 602(b)(13) and 603(d)(1)(E).

``SEC. 608. REQUIREMENTS FOR USE OF AMERICAN MATERIALS.

    ``(a) In General.--Notwithstanding any other provision of law, none 
of the funds made available by a State water pollution control 
revolving fund as authorized under this title may be used for the 
construction of treatment works unless the steel, iron, and 
manufactured goods used in such treatment works are produced in the 
United States.
    ``(b) Exceptions.--Subsection (a) shall not apply in any case in 
which the Administrator (in consultation with the Governor of the 
State) finds that--
            ``(1) applying subsection (a) would be inconsistent with 
        the public interest;
            ``(2) steel, iron, and manufactured goods are not produced 
        in the United States in sufficient and reasonably available 
        quantities and of a satisfactory quality; or
            ``(3) inclusion of steel, iron, and manufactured goods 
        produced in the United States will increase the cost of the 
        overall project by more than 25 percent.
    ``(c) Public Notification and Written Justification for Waiver.--If 
the Administrator determines that it is necessary to waive the 
application of subsection (a) based on a finding under subsection (b), 
the Administrator shall--
            ``(1) not less than 15 days prior to waiving application of 
        subsection (a), provide public notice and the opportunity to 
        comment on the Administrator's intent to issue such waiver; and
            ``(2) upon issuing such waiver, publish in the Federal 
        Register a detailed written justification as to why the 
        provision is being waived.
    ``(d) Consistency With International Agreements.--This section 
shall be applied in a manner consistent with United States obligations 
under international agreements.''.

SEC. 1308. AUTHORIZATION OF APPROPRIATIONS.

    Section 609 (as redesignated by section 1307 of this Act) is 
amended by striking paragraphs (1) through (5) and inserting the 
following:
            ``(1) $2,400,000,000 for fiscal year 2010;
            ``(2) $2,700,000,000 for fiscal year 2011;
            ``(3) $2,800,000,000 for fiscal year 2012;
            ``(4) $2,900,000,000 for fiscal year 2013; and
            ``(5) $3,000,000,000 for fiscal year 2014.''.

                     Subtitle D--General Provisions

SEC. 1401. DEFINITION OF TREATMENT WORKS.

    Section 502 (33 U.S.C. 1362) is amended by adding at the end the 
following:
            ``(26) Treatment works.--The term `treatment works' has the 
        meaning given that term in section 212.''.

SEC. 1402. FUNDING FOR INDIAN PROGRAMS.

    Section 518(c) (33 U.S.C. 1377) is amended--
            (1) by striking ``The Administrator'' and inserting the 
        following:
            ``(1) Fiscal years 1987-2008.--The Administrator'';
            (2) in paragraph (1) (as so designated)--
                    (A) by inserting ``and ending before October 1, 
                2008,'' after ``1986,''; and
                    (B) by striking the second sentence; and
            (3) by adding at the end the following:
            ``(2) Fiscal year 2009 and thereafter.--For fiscal year 
        2009 and each fiscal year thereafter, the Administrator shall 
        reserve, before allotments to the States under section 604(a), 
        not less than 0.5 percent and not more than 1.5 percent of the 
        funds made available to carry out title VI.
            ``(3) Use of funds.--Funds reserved under this subsection 
        shall be available only for grants for projects and activities 
        eligible for assistance under section 603(c) to serve--
                    ``(A) Indian tribes (as defined in section 518(h));
                    ``(B) former Indian reservations in Oklahoma (as 
                determined by the Secretary of the Interior); and
                    ``(C) Native villages (as defined in section 3 of 
                the Alaska Native Claims Settlement Act (43 U.S.C. 
                1602)).''.

                       Subtitle E--Tonnage Duties

SEC. 1501. TONNAGE DUTIES.

    (a) In General.--Section 60301 of title 46, United State Code, is 
amended by striking subsections (a) and (b) and inserting the 
following:
    ``(a) Lower Rate.--
            ``(1) Imposition of duty.--A duty is imposed at the rate 
        described in paragraph (2) at each entry in a port of the 
        United States of--
                    ``(A) a vessel entering from a foreign port or 
                place in North America, Central America, the West 
                Indies Islands, the Bahama Islands, the Bermuda 
                Islands, or the coast of South America bordering the 
                Caribbean Sea; or
                    ``(B) a vessel returning to the same port or place 
                in the United States from which it departed, and not 
                entering the United States from another port or place, 
                except--
                            ``(i) a vessel of the United States;
                            ``(ii) a recreational vessel (as defined in 
                        section 2101 of this title); or
                            ``(iii) a barge.
            ``(2) Rate.--The rate referred to in paragraph (1) shall 
        be--
                    ``(A) 4.5 cents per ton (but not more than a total 
                of 22.5 cents per ton per year) for fiscal years 2006 
                through 2009;
                    ``(B) 9.0 cents per ton (but not more than a total 
                of 45 cents per ton per year) for fiscal years 2010 
                through 2019; and
                    ``(C) 2 cents per ton (but not more than a total of 
                10 cents per ton per year) for each fiscal year 
                thereafter.
    ``(b) Higher Rate.--
            ``(1) Imposition of duty.--A duty is imposed at the rate 
        described in paragraph (2) on a vessel at each entry in a port 
        of the United States from a foreign port or place not named in 
        subsection (a)(1).
            ``(2) Rate.--The rate referred to in paragraph (1) shall 
        be--
                    ``(A) 13.5 cents per ton (but not more than a total 
                of 67.5 cents per ton per year) for fiscal years 2006 
                through 2009;
                    ``(B) 27 cents per ton (but not more than a total 
                of $1.35 per ton per year) for fiscal years 2010 
                through 2019, and
                    ``(C) 6 cents per ton (but not more than a total of 
                30 cents per ton per year) for each fiscal year 
                thereafter.''.
    (b) Liability in Rem.--Chapter 603 of title 46, United States Code, 
is amended by adding at the end the following:
``Sec. 60313. Liability in rem for costs
    ``A vessel is liable in rem for any amount due under this chapter 
for that vessel and may be proceeded against for that liability in the 
United States district court for any district in which the vessel may 
be found.''.
    (c) Conforming Amendments.--Such title is further amended--
            (1) by striking the heading for subtitle VI and inserting 
        the following:

             ``Subtitle VI--Clearance and Tonnage Duties'';

            (2) in the heading for chapter 603, by striking ``TAXES'' 
        and inserting ``DUTIES'';
            (3) in the headings of sections in chapter 603, by striking 
        ``taxes'' each place it appears and inserting ``duties'';
            (4) in the heading for subsection (a) of section 60303, by 
        striking ``Tax'' and inserting ``Duty'';
            (5) in the text of sections in chapter 603, by striking 
        ``taxes'' each place it appears and inserting ``duties''; and
            (6) in the text of sections in chapter 603, by striking 
        ``tax'' each place it appears and inserting ``duty''.
    (d) Clerical Amendments.--Such title is further amended--
            (1) in the title analysis by striking the item relating to 
        subtitle VI and inserting the following:

``VI. CLEARANCE AND TONNAGE DUTIES..........................   60101'';
            (2) in the analysis for subtitle VI by striking the item 
        relating to chapter 603 and inserting the following:

``603. Tonnage Duties and Light Money.......................   60301'';
        and
            (3) in the analysis for chapter 603--
                    (A) by striking the items relating to sections 
                60301 and 60302 and inserting the following:

``60301. Regular tonnage duties.
``60302. Special tonnage duties.'';
                    (B) by striking the item relating to section 60304 
                and inserting the following:

``60304. Presidential suspension of tonnage duties and light money.'';
        and
                    (C) by adding at the end the following:

``60313. Liability in rem for costs.''.

              TITLE II--ALTERNATIVE WATER SOURCE PROJECTS

SEC. 2001. PILOT PROGRAM FOR ALTERNATIVE WATER SOURCE PROJECTS.

    (a) Selection of Projects.--Section 220(d)(2) (33 U.S.C. 
1300(d)(2)) is amended by inserting before the period at the end the 
following: ``or whether the project is located in an area which is 
served by a public water system serving 10,000 individuals or fewer''.
    (b) Authorization of Appropriations.--Section 220(j) (33 U.S.C. 
1300(j)) is amended by striking ``$75,000,000 for fiscal years 2002 
through 2004'' and inserting ``$50,000,000 for each of fiscal years 
2010 through 2014''.

                TITLE III--SEWER OVERFLOW CONTROL GRANTS

SEC. 3001. SEWER OVERFLOW CONTROL GRANTS.

    (a) Administrative Requirements.--Section 221(e) (33 U.S.C. 
1301(e)) is amended to read as follows:
    ``(e) Administrative Requirements.--A project that receives 
assistance under this section shall be carried out subject to the same 
requirements as a project that receives assistance from a State water 
pollution control revolving fund under title VI, except to the extent 
that the Governor of the State in which the project is located 
determines that a requirement of title VI is inconsistent with the 
purposes of this section.''.
    (b) Authorization of Appropriations.--The first sentence of section 
221(f) (33 U.S.C. 1301(f)) is amended by striking ``this section 
$750,000,000'' and all that follows through the period at the end and 
inserting ``this section $250,000,000 for fiscal year 2010, 
$300,000,000 for fiscal year 2011, $350,000,000 for fiscal year 2012, 
$400,000,000 for fiscal year 2013, and $500,000,000 for fiscal year 
2014.''.
    (c) Allocation of Funds.--Section 221(g) of such Act (33 U.S.C. 
1301(g)) is amended to read as follows:
    ``(g) Allocation of Funds.--
            ``(1) Fiscal year 2010.--Subject to subsection (h), the 
        Administrator shall use the amounts appropriated to carry out 
        this section for fiscal year 2010 for making grants to 
        municipalities and municipal entities under subsection (a)(2) 
        in accordance with the criteria set forth in subsection (b).
            ``(2) Fiscal year 2011 and thereafter.--Subject to 
        subsection (h), the Administrator shall use the amounts 
        appropriated to carry out this section for fiscal year 2011 and 
        each fiscal year thereafter for making grants to States under 
        subsection (a)(1) in accordance with a formula to be 
        established by the Administrator, after providing notice and an 
        opportunity for public comment, that allocates to each State a 
        proportional share of such amounts based on the total needs of 
        the State for municipal combined sewer overflow controls and 
        sanitary sewer overflow controls identified in the most recent 
        survey conducted pursuant to section 516.''.
    (d) Reports.--The first sentence of section 221(i) (33 U.S.C. 
1301(i)) is amended by striking ``2003'' and inserting ``2012''.

   TITLE IV--MONITORING, REPORTING, AND PUBLIC NOTIFICATION OF SEWER 
                               OVERFLOWS

SEC. 4001. MONITORING, REPORTING, AND PUBLIC NOTIFICATION OF SEWER 
              OVERFLOWS.

    Section 402 (33 U.S.C. 1342) is amended by adding at the end the 
following:
    ``(s) Sewer Overflow Monitoring, Reporting, and Notifications.--
            ``(1) General requirements.--After the last day of the 180-
        day period beginning on the date on which regulations are 
        issued under paragraph (4), a permit issued, renewed, or 
        modified under this section by the Administrator or the State, 
        as the case may be, for a publicly owned treatment works shall 
        require, at a minimum, beginning on the date of the issuance, 
        modification, or renewal, that the owner or operator of the 
        treatment works--
                    ``(A) institute and utilize a feasible methodology, 
                technology, or management program for monitoring sewer 
                overflows to alert the owner or operator to the 
                occurrence of a sewer overflow in a timely manner;
                    ``(B) in the case of a sewer overflow that has the 
                potential to affect human health, notify the public of 
                the overflow as soon as practicable but not later than 
                24 hours after the time the owner or operator knows of 
                the overflow;
                    ``(C) in the case of a sewer overflow that may 
                imminently and substantially endanger human health, 
                notify public health authorities and other affected 
                entities, such as public water systems, of the overflow 
                immediately after the owner or operator knows of the 
                overflow;
                    ``(D) report each sewer overflow on its discharge 
                monitoring report to the Administrator or the State, as 
                the case may be, by describing--
                            ``(i) the magnitude, duration, and 
                        suspected cause of the overflow;
                            ``(ii) the steps taken or planned to 
                        reduce, eliminate, or prevent recurrence of the 
                        overflow; and
                            ``(iii) the steps taken or planned to 
                        mitigate the impact of the overflow; and
                    ``(E) annually report to the Administrator or the 
                State, as the case may be, the total number of sewer 
                overflows in a calendar year, including--
                            ``(i) the details of how much wastewater 
                        was released per incident;
                            ``(ii) the duration of each sewer overflow;
                            ``(iii) the location of the overflow and 
                        any potentially affected receiving waters;
                            ``(iv) the responses taken to clean up the 
                        overflow; and
                            ``(v) the actions taken to mitigate impacts 
                        and avoid further sewer overflows at the site.
            ``(2) Exceptions.--
                    ``(A) Notification requirements.--The notification 
                requirements of paragraphs (1)(B) and (1)(C) shall not 
                apply to a sewer overflow that is a wastewater backup 
                into a single-family residence.
                    ``(B) Reporting requirements.--The reporting 
                requirements of paragraphs (1)(D) and (1)(E) shall not 
                apply to a sewer overflow that is a release of 
                wastewater that occurs in the course of maintenance of 
                the treatment works, is managed consistently with the 
                treatment works' best management practices, and is 
                intended to prevent sewer overflows.
            ``(3) Report to epa.--Each State shall provide to the 
        Administrator annually a summary of sewer overflows that 
        occurred in the State.
            ``(4) Rulemaking by epa.--Not later than one year after the 
        date of enactment of this subsection, the Administrator, after 
        providing notice and an opportunity for public comment, shall 
        issue regulations to implement this subsection, including 
        regulations to--
                    ``(A) establish a set of criteria to guide the 
                owner or operator of a publicly owned treatment works 
                in--
                            ``(i) assessing whether a sewer overflow 
                        has the potential to affect human health or may 
                        imminently and substantially endanger human 
                        health; and
                            ``(ii) developing communication measures 
                        that are sufficient to give notice under 
                        paragraphs (1)(B) and (1)(C); and
                    ``(B) define the terms `feasible' and `timely' as 
                such terms apply to paragraph (1)(A), including site 
                specific conditions.
            ``(5) Approval of state notification programs.--
                    ``(A) Requests for approval.--
                            ``(i) In general.--After the date of 
                        issuance of regulations under paragraph (4), a 
                        State may submit to the Administrator evidence 
                        that the State has in place a legally 
                        enforceable notification program that is 
                        substantially equivalent to or exceeds the 
                        requirements of paragraphs (1)(B) and (1)(C).
                            ``(ii) Program review and authorization.--
                        If the evidence submitted by a State under 
                        clause (i) shows the notification program of 
                        the State to be substantially equivalent to or 
                        exceeds the requirements of paragraphs (1)(B) 
                        and (1)(C), the Administrator shall authorize 
                        the State to carry out such program instead of 
                        the requirements of paragraphs (1)(B) and 
                        (1)(C).
                            ``(iii) Factors for determining substantial 
                        equivalency.--In carrying out a review of a 
                        State notification program under clause (ii), 
                        the Administrator shall take into account the 
                        scope of sewer overflows for which notification 
                        is required, the length of time during which 
                        notification must be made, the scope of persons 
                        who must be notified of sewer overflows, the 
                        scope of enforcement activities ensuring that 
                        notifications of sewer overflows are made, and 
                        such other factors as the Administrator 
                        considers appropriate.
                    ``(B) Review period.--If a State submits evidence 
                with respect to a notification program under 
                subparagraph (A)(i) on or before the last day of the 
                30-day period beginning on the date of issuance of 
                regulations under paragraph (4), the requirements of 
                paragraphs (1)(B) and (1)(C) shall not begin to apply 
                to a publicly owned treatment works located in the 
                State until the date on which the Administrator 
                completes a review of the notification program under 
                subparagraph (A)(ii).
                    ``(C) Withdrawal of authorization.--If the 
                Administrator, after conducting a public hearing, 
                determines that a State is not administering and 
                enforcing a State notification program authorized under 
                subparagraph (A)(ii) in accordance with the 
                requirements of this paragraph, the Administrator shall 
                so notify the State and, if appropriate corrective 
                action is not taken within a reasonable time, not to 
                exceed 90 days, the Administrator shall withdraw 
                authorization of such program and enforce the 
                requirements of paragraphs (1)(B) and (1)(C) with 
                respect to the State.
            ``(6) Special rules concerning application of notification 
        requirements.--After the last day of the 30-day period 
        beginning on the date of issuance of regulations under 
        paragraph (4), the requirements of paragraphs (1)(B) and (1)(C) 
        shall--
                    ``(A) apply to the owner or operator of a publicly 
                owned treatment works and be subject to enforcement 
                under section 309, and
                    ``(B) supersede any notification requirements 
                contained in a permit issued under this section for the 
                treatment works to the extent that the notification 
                requirements are less stringent than the notification 
                requirements of paragraphs (1)(B) and (1)(C),
        until such date as a permit is issued, renewed, or modified 
        under this section for the treatment works in accordance with 
        paragraph (1).
            ``(7) Definitions.--In this subsection, the following 
        definitions apply:
                    ``(A) Sanitary sewer overflow.--The term `sanitary 
                sewer overflow' means an overflow, spill, release, or 
                diversion of wastewater from a sanitary sewer system. 
                Such term does not include municipal combined sewer 
                overflows or other discharges from the combined portion 
                of a municipal combined storm and sanitary sewer system 
                and does not include wastewater backups into buildings 
                caused by a blockage or other malfunction of a building 
                lateral that is privately owned. Such term includes 
                overflows or releases of wastewater that reach waters 
                of the United States, overflows or releases of 
                wastewater in the United States that do not reach 
                waters of the United States, and wastewater backups 
                into buildings that are caused by blockages or flow 
                conditions in a sanitary sewer other than a building 
                lateral.
                    ``(B) Sewer overflow.--The term `sewer overflow' 
                means a sanitary sewer overflow or a municipal combined 
                sewer overflow.
                    ``(C) Single-family residence.--The term `single-
                family residence' means an individual dwelling unit, 
                including an apartment, condominium, house, or 
                dormitory. Such term does not include the common areas 
                of a multi-dwelling structure.''.

              TITLE V--GREAT LAKES LEGACY REAUTHORIZATION

SEC. 5001. REMEDIATION OF SEDIMENT CONTAMINATION IN AREAS OF CONCERN.

    Section 118(c)(12)(H) of the Federal Water Pollution Control Act 
(33 U.S.C. 1268(c)(12)(H)) is amended by striking clause (i) and 
inserting the following:
                            ``(i) In general.--In addition to other 
                        amounts authorized under this section, there is 
                        authorized to be appropriated to carry out this 
                        paragraph--
                                    ``(I) $50,000,000 for each of the 
                                fiscal years 2004 through 2009; and
                                    ``(II) $150,000,000 for each of the 
                                fiscal years 2010 through 2014.''.

SEC. 5002. PUBLIC INFORMATION PROGRAM.

    Section 118(c)(13)(B) (33 U.S.C. 1268(c)(13)(B)) is amended by 
striking ``2010'' and inserting ``2014''.

SEC. 5003. CONTAMINATED SEDIMENT REMEDIATION APPROACHES, TECHNOLOGIES, 
              AND TECHNIQUES.

    Section 106(b) of the Great Lakes Legacy Act of 2002 (33 U.S.C. 
1271a(b)) is amended by striking paragraph (1) and inserting the 
following:
            ``(1) In general.--In addition to amounts authorized under 
        other laws, there is authorized to be appropriated to carry out 
        this section--
                    ``(A) $3,000,000 for each of the fiscal years 2004 
                through 2009; and
                    ``(B) $5,000,000 for each of the fiscal years 2010 
                through 2014.''.
                                                   Union Calendar No. 9

111th CONGRESS

  1st Session

                               H. R. 1262

                          [Report No. 111-26]

_______________________________________________________________________

                                 A BILL

     To amend the Federal Water Pollution Control Act to authorize 
 appropriations for State water pollution control revolving funds, and 
                          for other purposes.

_______________________________________________________________________

                             March 9, 2009

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
```