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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1544 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 1544

  To amend the Federal Water Pollution Control Act to reauthorize the 
   State water pollution control revolving loan program, to provide 
    assistance to economically distressed rural communities in the 
 construction of wastewater treatment works and public water systems, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 30, 1993

 Mr. Rahall  (for himself, Mr. Williams, Mr. Solomon, Mr. Peterson of 
 Minnesota, Mr. Payne of Virginia, Mr. Schiff, Mr. Murphy, Mr. McHugh, 
    Mr. Barcia, Ms. Danner, Mr. Olver, Mr. Fields of Louisiana, Mr. 
Traficant, Mr. Clyburn, Mr. Sanders, Mr. McCloskey, Mr. Evans, and Mr. 
    Towns) introduced the following bill; which was referred to the 
              Committee on Public Works and Transportation

_______________________________________________________________________

                                 A BILL

 
  To amend the Federal Water Pollution Control Act to reauthorize the 
   State water pollution control revolving loan program, to provide 
    assistance to economically distressed rural communities in the 
 construction of wastewater treatment works and public water systems, 
                        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 ``Rural Community Environmental 
Assistance Act of 1993''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) rural communities face special problems in providing 
        for infrastructure facilities to protect the environment and 
        human health, including wastewater treatment works and public 
        water systems;
            (2) rural communities often lack the economies of scale 
        which are necessary to provide an adequate financial base for 
        the construction and operation of wastewater treatment works 
        and public water systems;
            (3) rural communities often have limited access to 
        financial markets due to limited management capabilities and 
        limited access to financial and technical services;
            (4) the Environmental Protection Agency has estimated that 
        between 21 percent and 30 percent of rural communities will 
        have difficulty using revenue bonds for wastewater treatment 
        works and public water systems because of limited financial 
        resources;
            (5) many rural communities have not benefited from existing 
        financing and assistance programs of the Federal Government for 
        wastewater treatment works and public water systems because 
        such assistance programs are often focused on the largest 
        environmental problems caused by larger municipalities;
            (6) Federal grant assistance programs for wastewater 
        treatment have been phased out in favor of State loan funds;
            (7) some rural communities will have limited access to such 
        State loan funds and some economically distressed rural 
        communities may be unable to comply with pollution control 
        requirements without grant assistance;
            (8) residents of rural communities often spend a larger 
        portion of their household income for environmental services 
        than residents of large communities;
            (9) recent amendments to Federal environmental laws will 
        require additional efforts by rural communities to address 
        environmental problems and will require rural communities to 
        devote a larger percentage of their resources to these efforts;
            (10) many public water systems serving rural communities 
        are inadequate or insufficient to provide for existing and 
        future needs and have deteriorated to the degree that a 
        reliable supply of water is in jeopardy and large quantities of 
        water are being wasted or may be wasted;
            (11) the National Council on Public Works Improvement 
        recently concluded that a ``national problem does exist for 
        small water systems . . . and . . . these small water systems 
        operate on a marginal basis, with inadequate financial 
        resources to correct existing deficiencies . . .'';
            (12) the Environmental Protection Agency has reported that 
        small water systems serve 8 percent of the United States 
        population, but account for more than 90 percent of the 
        violations of the Safe Drinking Water Act;
            (13) the Environmental Protection Agency has reported that 
        80 percent of the communities in violation of sewage treatment 
        requirements are rural communities and that rural community 
        sewage treatment needs exceed $28,000,000,000;
            (14) it is essential that the Federal Government play a 
        more active role in providing financial assistance to rural 
        communities for the construction of wastewater treatment works 
        and public water systems;
            (15) it is essential that the Federal Government make a 
        special effort to provide financial assistance, including grant 
        assistance, to rural communities which are economically 
        disadvantaged; and
            (16) it is essential that the Federal Government expand and 
        strengthen technical assistance and outreach programs to assist 
        rural communities in complying with environmental requirements 
        and the construction, operation, maintenance, and 
        rehabilitation of wastewater treatment works and public water 
        systems.

SEC. 3. PURPOSES.

    The purposes of this Act are--
            (1) to assist economically distressed rural communities in 
        financing the planning and construction of wastewater treatment 
        works and public water systems; and
            (2) to expand and strengthen programs for providing 
        technical assistance to economically distressed rural 
        communities on issues relating to operation, management, and 
        maintenance of wastewater treatment works and public water 
        systems.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

    Section 607 of the Federal Water Pollution Control Act (33 U.S.C. 
1387) is amended--
            (1) by striking ``and'' at the end of paragraph (4); and
            (2) by striking paragraph (5) and inserting the following 
        new paragraphs:
            ``(5) $2,000,000,000 for fiscal year 1994;
            ``(6) $2,300,000,000 for fiscal year 1995;
            ``(7) $2,700,000,000 for fiscal year 1996;
            ``(8) $3,000,000,000 for fiscal year 1997;
            ``(9) $3,500,000,000 for fiscal year 1998; and
            ``(10) $4,000,000,000 per fiscal year for each of fiscal 
        years 1999 and 2000.''.

SEC. 5. ASSISTANCE FOR ECONOMICALLY DISTRESSED RURAL COMMUNITIES.

    (a) Capitalization Grant Agreements.--Section 602(b) of the Federal 
Water Pollution Control Act (33 U.S.C. 1382(b)) is amended--
            (1) by striking ``and'' at the end of paragraph (9);
            (2) by striking the period at the end of paragraph (10) and 
        inserting ``; and''; and
            (3) by adding after paragraph (10) the following new 
        paragraph:
            ``(11) the State will comply with the requirements of part 
        B of this title.''.
    (b) Rural Community Environmental Assistance Account.--
            (1) In general.--Title VI of such Act (33 U.S.C. 1382-1387) 
        is amended by adding at the end the following:

   ``PART B--ASSISTANCE FOR ECONOMICALLY DISTRESSED RURAL COMMUNITIES

``SEC. 651. ESTABLISHMENT OF RURAL COMMUNITY ENVIRONMENTAL ASSISTANCE 
              ACCOUNTS.

    ``(a) In General.--Each State shall establish a rural community 
environmental assistance account in the water pollution control 
revolving loan fund established by the State pursuant to this title.
    ``(b) Deposits.--
            ``(1) In general.--The rural community environmental 
        assistance account of a State under this part shall consist of 
        amounts deposited into the account in accordance with this 
        subsection, repayments of principal and interest from loans 
        made with such amounts, and any interest or other proceeds 
        derived from such amounts.
            ``(2) Amounts from grant payments.--A State shall deposit 
        into the rural community environmental assistance account of 
        the State under this part not less than 25 percent of the 
        amount of each grant payment received by the State under 
        section 601 after the date of the enactment of this part.
            ``(3) Matching requirement.--A State shall deposit into the 
        rural community environmental assistance account of the State 
        under this part from State monies an amount equal to at least 5 
        percent of the amount deposited into such account under 
        paragraph (2). Amounts subject to the matching requirement of 
        this paragraph shall not be subject to any matching requirement 
        under a capitalization grant agreement entered into under 
        section 602.
            ``(4) Unobligated balance.--A State may deposit into the 
        rural community environmental assistance account of the State 
        under this part any portion of the unobligated balance, on the 
        date of the enactment of this part, of the State's water 
        pollution control revolving loan fund.
    ``(c) Requirements.--Amounts in the rural community environmental 
assistance account of a State under this part shall be subject to the 
requirements of this part and, except as otherwise provided by this 
part, shall not be subject to the requirements of part (A) of this 
title.

``SEC. 652. RURAL COMMUNITY ENVIRONMENTAL ASSISTANCE ACCOUNT FUNDS.

    ``(a) Projects Eligible for Assistance.--Except as otherwise 
provided by this part, amounts in the rural community environmental 
assistance account of a State under this part may be used only for 
projects, which are included in an intended use plan approved by the 
Administrator pursuant to section 653, for the construction of 
wastewater treatment works and public water systems in economically 
distressed rural communities.
    ``(b) Types of Assistance.--Except as otherwise limited by State 
law, amounts in the rural community environmental assistance account of 
a State under this part may be used only--
            ``(1) to make loans to economically distressed rural 
        communities on the condition that--
                    ``(A) such loans are made at or below market 
                interest rates, including interest free loans, at terms 
                not to exceed 30 years;
                    ``(B) annual principal and interest payments will 
                commence not later than 3 years after completion of a 
                project and all loans will be fully amortized not later 
                than 30 years after completion of a project;
                    ``(C) the recipient of a loan will establish a 
                dedicated source of revenue for repayment of loans; and
                    ``(D) the recipient of a loan agrees to repay the 
                loan and the account will be credited with all payments 
                of principal and interest on the loan;
            ``(2) to make grants to economically distressed rural 
        communities on the condition that such grants do not exceed 75 
        percent of the costs of eligible projects or 85 percent of the 
        costs of eligible innovative projects (as such term is used in 
        section 201(g)(5) of this Act);
            ``(3) as a source of revenue or security for the payment of 
        principal and interest on revenue or general obligation bonds 
        issued by the State if the proceeds of the sale of such bonds 
        will be deposited in the account;
            ``(4) to earn interest on amounts in the account; and
            ``(5) to pay the reasonable costs of (A) administering the 
        account, (B) conducting activities under this part, and (C) 
        establishing a Rural Environmental Infrastructure Advisory 
        Panel under section 654; except that total of such costs may 
        not exceed 6 percent of the balance of the account.
    ``(c) Administration.--Amounts in the rural community environmental 
assistance account of a State under this part shall be administered by 
the same instrumentality which administers other amounts in the State's 
water pollution control revolving loan fund.
    ``(d) Interest Rates.--Subject to subsection (b)(1)(A), each State 
shall establish criteria for determining the rate of interest to be 
charged on a loan made with amounts in the rural community 
environmental assistance account of a State under this part. Such 
criteria shall provide that a lower rate of interest will be charged on 
loans for eligible projects in communities which have lower population 
levels and lower income levels.
    ``(e) Grants.--Subject to subsection (b)(2), each State shall 
establish criteria for determining the amount of assistance to be 
provided under this section in the form of grants for an eligible 
project. Such criteria shall provide that a higher percentage of the 
total cost of the project will be provided in the form of grants for 
eligible projects in communities which have lower population levels and 
lower income levels.
    ``(f) Consistency With Planning Requirements.--
            ``(1) Wastewater treatment works.--A State may provide 
        financial assistance with amounts from the rural community 
        environmental assistance account of the State under this part 
        only with respect to a wastewater treatment works which is 
        consistent with plans, if any, developed under sections 205(j), 
        208, 303(e), 319, and 320 of this Act.
            ``(2) Public water systems.--A State may provide financial 
        assistance with amounts from the rural community environmental 
        assistance account of the State under this part only with 
        respect to a public water system which is approved by the chief 
        executive officer of the State agency with primary enforcement 
        authority pursuant to section 1413 of the Safe Drinking Water 
        Act.
    ``(g) Priority.--In providing assistance with amounts from the 
rural community environmental assistance account of the State under 
this part, the State shall give priority to an economically distressed 
rural community in which--
            ``(1) there is a documented need for collector sewers and 
        interceptors in order to improve access to wastewater treatment 
        facilities;
            ``(2) residents rely on inadequate individual wastewater 
        treatment facilities such as outhouses, failing septic systems, 
        or cesspools that are determined by public health officials to 
        be a hazard to the community;
            ``(3) residents rely on public water systems which do not 
        meet the requirements of the Safe Drinking Water Act; or
            ``(4) residents rely on inadequate individual drinking 
        water systems such as contaminated wells that are determined by 
        local public health to be a hazard to the community.
    ``(h) Innovative Projects.--A State may provide assistance with 
amounts from the rural community environmental assistance account of 
the State under this part for eligible innovative projects (as such 
term is used in section 201(g)(5) of this Act) only after conducting a 
cost-benefit analysis of such project. Such analysis shall include an 
evaluation of the long-term operation and maintenance costs associated 
with the project.

``SEC. 653. INTENDED USE PLAN.

    ``(a) In General.--
            ``(1) Contents.--Prior to the beginning of each fiscal 
        year, each State shall prepare and submit to the Administrator 
        a plan, approved by the State's Rural Environmental 
        Infrastructure Advisory Panel under section 654, identifying 
        the intended uses of the amounts available to the rural 
        community environmental assistance account of the State under 
        this part. Such intended use plan shall include, but not be 
        limited to--
                    ``(A) a list of those projects for construction of 
                wastewater treatment works and public water systems 
                which are pending;
                    ``(B) a description of the short- and long-term 
                goals and objectives of the account;
                    ``(C) information on the activities to be 
                supported, including a description of project 
                categories, terms of financial assistance, and 
                economically distressed rural communities served;
                    ``(D) assurances and specific proposals to ensure 
                that all funds in the account will be expended in an 
                expeditious and timely manner;
                    ``(E) the criteria and method established for the 
                allocation of funds to proposed projects;
                    ``(F) the criteria established for determining the 
                interest rate on loans made with amounts from the 
                account; and
                    ``(G) the criteria established for determining the 
                amount of assistance to be provided under this section 
                in the form of grants for an eligible project.
            ``(2) Review.--The Administrator shall review each plan 
        developed pursuant to this subsection for a fiscal year and 
        shall approve or disapprove such plan.
            ``(3) Public review and comment.--The State shall provide 
        for public review and comment on the plan developed pursuant to 
        this section.
    ``(b) Reservation of Funds for Planning.--Each State shall reserve 
each fiscal year 1 percent of the sums in the rural community 
environmental assistance account of the State under this part to carry 
out planning and related activities pursuant to this section.

``SEC. 654. RURAL ENVIRONMENTAL INFRASTRUCTURE ADVISORY PANEL.

    ``(a) In General.--A State may submit an intended use plan to the 
Administrator under section 653 only if such plan has been approved by 
a Rural Environmental Infrastructure Advisory Panel which has been 
established by the State in accordance with this section.
    ``(b) Duties.--It shall be the duty of a panel established under 
this section in a fiscal year--
            ``(1) to develop goals and guidance to assist the State in 
        the preparation of the State's intended use plan under section 
        653 for such fiscal year; and
            ``(2) to review the State's intended use plan under section 
        653 for such fiscal year and to approve or disapprove such 
        plan.
    ``(c) Membership.--A panel established by a State under this 
section shall consist of 10 members appointed by the Governor of the 
State as follows:
            ``(1) One individual who is a representative of the 
        instrumentality which administers the State's water pollution 
        control revolving loan fund.
            ``(2) One individual who is a representative of the State 
        agency which is primarily responsible for carrying out the 
        State's responsibilities under the Safe Drinking Water Act.
            ``(3) One individual who is a representative of an entity 
        in the State which receives funds to assist nonentitlement 
        areas under the Community Development Block Grant Program 
        established under the Housing and Community Development Act of 
        1974.
            ``(4) One individual who is a representative of an entity 
        in the State which receives funds under the water and waste 
        facility loan and grant program established by section 306 of 
        the Consolidated Farm and Rural Development Act.
            ``(5) One individual who is a representative of the State 
        agency which is primarily responsible for regulating private 
        utilities.
            ``(6) One individual who is a representative of a regional 
        planning agency.
            ``(7) On individual who is a representative of the Rural 
        Community Assistance Program.
            ``(8) One individual who is a representative of the State's 
        Rural Water Association.
            ``(9) One individual who is a representative of a local 
        government.
            ``(10) One individual who is a representative of local or 
        county health department or agency.
    ``(d) Term.--Each member shall be appointed for a term of 2 years.
    ``(e) Vacancies.--A vacancy on a panel established under this 
section shall be filled in the manner in which the original appointment 
was made.
    ``(f) Pay.--Members shall serve without pay but may receive travel 
expenses.
    ``(g) Chairperson.--The chairperson of a panel established under 
this section shall be elected by the members.
    ``(h) Meetings.--A panel established under this section shall 
conduct at least 3 meetings during each fiscal year.

``SEC. 655. AUDITS, REPORTS, AND FISCAL CONTROLS.

    ``(a) Fiscal Control and Auditing Procedures.--Each State shall 
establish fiscal controls and accounting procedures sufficient to 
ensure proper accounting during appropriate accounting periods for--
            ``(1) deposits made into the rural community environmental 
        assistance account of the State under this part;
            ``(2) disbursements made from the account; and
            ``(3) account balances at the beginning and end of the 
        accounting period.
    ``(b) Annual Federal Audits.--The Administrator shall, at least on 
an annual basis, conduct or require each State to have independently 
conducted such reviews and audits as may be deemed necessary or 
appropriate by the Administrator to carry out the objectives of this 
section. Audits of the use of funds deposited in the rural community 
environmental assistance account of the State shall be conducted in 
accordance with the auditing procedures of the General Accounting 
Office, including chapter 75 of title 31, United States Code.
    ``(c) Annual Report.--Beginning 60 days after the end of the first 
fiscal year beginning after the date of the enactment of this part, the 
State shall submit an annual report to the Administrator describing how 
the State has met the goals and objectives for the previous fiscal year 
as identified in the plan prepared for such year pursuant to section 
653(a), including identification of loan and grant recipients, loan and 
grant amounts, and terms and similar details on other forms of 
financial assistance provided from the rural community environmental 
assistance account of the State under this part.
    ``(d) Noncompliance.--
            ``(1) Notification.--If the Administrator determines that a 
        State has not complied with the requirements of this part, the 
        Administrator shall notify the State of such noncompliance and 
        the necessary corrective action.
            ``(2) Withholding of payments.--If a State does not take 
        corrective action within 60 days after the date a State 
        receives notification of noncompliance under paragraph (1), the 
        Administrator shall withhold the minimum amounts to be 
        deposited in the rural community environmental assistance 
        account of the State under this part until the Administrator is 
        satisfied that the State has taken the necessary corrective 
        action.
            ``(3) Reallotment.--If the Administrator is not satisfied 
        that adequate correction actions have been taken by the State 
        on or before the date which is 12 months after the date on 
        which the State is notified of noncompliance, the payments 
        withheld from the State by the Administrator under section (2) 
        shall be made available for reallotment in accordance with the 
        formula for allotment of funds under this Act.

``SEC. 656. DEFINITIONS.

    ``For the purposes of this part, the following definitions apply:
            ``(1) Construction.--The term `construction' shall have the 
        same meaning as such term has under section 212(1) of this Act; 
        except that such term shall be construed to apply to public 
        water systems as well as wastewater treatment works and such 
        term shall include acquisition of lands, easements, and rights-
        of-way for use as a site on which to locate a public water 
        system or wastewater treatment works.
            ``(2) Economically distressed rural community.--The term 
        `economically distressed rural community' means a rural 
        community in which--
                    ``(A) the median household income of the residents 
                of such community is less than 75 percent of the 
                statewide non-metropolitan household income, as 
                determined by the latest decennial census of the United 
                States; or
                    ``(B) the rate of poverty for the residents of such 
                community is greater than the national poverty rate, as 
                determined annually by the Office of Management and 
                Budget.
            ``(3) Public water system.--The term `public water system' 
        shall have the same meaning as such term has under section 
        1401(4) of the Safe Drinking Water Act.
            ``(4) Rural community.--The term `rural community' means a 
        municipality--
                    ``(A) which is located in a non-metropolitan county 
                and which has a population of 5,000 individuals or 
                less, as determined by the latest decennial census of 
                the United States; or
                    ``(B) the wastewater treatment works or drinking 
                water facility for which assistance is sought has fewer 
                then 1,000 service connections.
            ``(5) Wastewater treatment works.--The term `wastewater 
        treatment works' shall have the same meaning as the term 
        `treatment works' has under section 212(2) of this Act.''.
            (2) Conforming amendment.--Title VI of such Act is further 
        amended by inserting after the heading for such title the 
        following:

                       ``PART A--GENERAL FUNDS''.

SEC. 6. TECHNICAL ASSISTANCE FOR ECONOMICALLY DISTRESSED RURAL 
              COMMUNITIES.

    (a) Grants.--The Administrator of the Environmental Protection 
Agency shall make grants to appropriate regional, State, and local 
agencies and not-for-profit organizations to assist economically 
distressed rural communities (as defined in part B of the Federal Water 
Pollution Control Act) by providing technical assistance for the 
financing, operation, management, and maintenance of wastewater 
treatment works and public water systems.
    (b) Eligibility.--The Administrator shall make grants under 
subsection (a) only to those regional, State, and local agencies and 
not-for-profit organizations which have an established record for 
providing technical assistance to economically distressed rural 
communities.
    (c) Technical Assistance.--Technical assistance provided to 
economically distressed rural communities with amounts from grants made 
available under this section shall include 1 or more of the following:
            (1) providing information and guidance concerning 
        compliance with requirements of the Federal Water Pollution 
        Control Act and the Safe Drinking Water Act;
            (2) providing information and guidance on the operation and 
        management of wastewater treatment works and public water 
        systems, including budgeting, user charge structures, operator 
        training, and maintenance schedules to ensure compliance with 
        the requirements referred to in paragraph (1);
            (3) providing assistance to areas which are not served by 
        wastewater treatment works or public water systems in order to 
        develop the operations and management capacity necessary to 
        develop and maintain such facilities in compliance with Federal 
        standards;
            (4) providing assistance to facilitate the consolidation or 
        restructuring of wastewater treatment works and public drinking 
        water systems in order to improve the capacity of such 
        facilities; and
            (5) providing assistance to develop long-term financial 
        strategies to address overall water quality needs.
    (d) Funding.--The Administrator shall set aside for fiscal year 
1994, and each fiscal year thereafter, for making grants under this 
section not to exceed 1.5 percent of the amounts appropriated in such 
fiscal year pursuant to section 607 of the Federal Water Pollution 
Control Act.

SEC. 7. REPORT TO CONGRESS.

    (a) In General.--The first sentence of section 516(b)(1) of the 
Federal Water Pollution Control Act is amended--
            (1)by striking ``; and (D)'' and inserting ``; (D)''; and
            (2) by inserting before the period at the end the 
        following: ``; (E) an estimate of the costs of rehabilitating, 
        replacing, and upgrading public water systems nationally and by 
        State; (F) an estimate of the costs of construction of expanded 
        or new publicly owned treatment works and public water systems 
        nationally and by State, including an estimate of the portion 
        of such costs associated with meeting the requirements of this 
        Act; (G) an estimate of the percentage of the costs described 
        in subparagraphs (B), (C), (D), (E), and (F) associated with 
        publicly owned treatment works and public water systems serving 
        economically distressed rural communities as defined under 
        section 656 of this Act.''.
    (b) Applicability.--The amendment made by subsection (a) shall only 
apply to reports required under section 516(b)(1) of the Federal Water 
Pollution Control Act after the date of the enactment of this Act.

                                 <all>

HR 1544 IH----2
HR 1544 IH----3
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