II 

Calendar No. 1092 

110TH CONGRESS 

2D SESSION S. 3617 

[Report No. 110–509] 

To amend the Federal Water Pollution Control Act and the Safe Drinking 

Water Act to improve water and wastewater infrastructure in the United 

States. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 26 (legislative day, SEPTEMBER 17), 2008 

Mrs. BOXER, from the Committee on Environment and Public Works reported 

the following original bill; which was read twice and placed on the calendar 

A BILL 

To amend the Federal Water Pollution Control Act and 

the Safe Drinking Water Act to improve water and 

wastewater infrastructure in the United States. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Water Infrastructure Financing Act’’. 

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

7 this Act is as follows: 


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Sec. 1. Short title; table of contents. 

TITLE I—WATER POLLUTION INFRASTRUCTURE 

Sec. 101. Technical assistance for rural small treatment works and medium 

treatment works. 

Sec. 102. Projects eligible for assistance. 

Sec. 103. Affordability. 

Sec. 104. Water pollution control revolving loan funds. 

Sec. 105. Transferability of funds. 

Sec. 106. Noncompliance. 

Sec. 107. Negotiation of contracts. 

Sec. 108. Allotment of funds. 

Sec. 109. Authorization of appropriations. 

Sec. 110. Sewer overflow control grants. 

Sec. 111. Capitalization grant agreements. 

Sec. 112. Critical water infrastructure projects. 

TITLE II—SAFE DRINKING WATER INFRASTRUCTURE 

Sec. 201. Contaminant prevention, detection, and response. 

Sec. 202. Drinking water technical assistance for communities. 

Sec. 203. Preservation of employee labor standards. 

Sec. 204. Preconstruction work. 

Sec. 205. Priority system requirements. 

Sec. 206. Affordability. 

Sec. 207. Safe drinking water revolving loan funds. 

Sec. 208. Other authorized activities. 

Sec. 209. Authorization of appropriations. 

Sec. 210. Negotiation of contracts. 

Sec. 211. Critical drinking water infrastructure projects. 

Sec. 212. District of Columbia lead service line replacement. 

TITLE III—MISCELLANEOUS 

Sec. 301. Definitions. 

Sec. 302. Program for water quality enhancement and management. 

Sec. 303. Agricultural pollution control technology grant program. 

Sec. 304. State revolving fund review process. 

Sec. 305. Cost of service study. 

Sec. 306. Water management study. 

Sec. 307. Reduction in authorization of appropriations. 


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1 TITLE I—WATER POLLUTION 

2 INFRASTRUCTURE 

3 SEC. 101. TECHNICAL ASSISTANCE FOR RURAL SMALL 

4 TREATMENT WORKS AND MEDIUM TREAT5 MENT WORKS. 

6 (a) IN GENERAL.—Title II of the Federal Water Pol7 lution Control Act (33 U.S.C. 1281 et seq.) is amended 

8 by adding at the end the following: 

9 ‘‘SEC. 222. TECHNICAL ASSISTANCE FOR RURAL SMALL 

10 TREATMENT WORKS AND MEDIUM TREAT11 MENT WORKS. 

12 ‘‘(a) DEFINITIONS.—In this section: 

13 ‘‘(1) DECENTRALIZED WASTEWATER SYSTEM.— 

14 ‘‘(A) IN GENERAL.—The term ‘decentral15 ized wastewater system’ means a wastewater 

16 treatment system that is at or near a site at 

17 which wastewater is generated. 

18 ‘‘(B) INCLUSIONS.—The term ‘decentral19 ized wastewater system’ includes a system that 

20 provides for— 

21 ‘‘(i) nonpotable reuse of treated efflu22 ent; or 

23 ‘‘(ii) energy and nutrient recovery 

24 from wastewater constituents. 


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1 ‘‘(2) MEDIUM TREATMENT WORKS.—The term 

2 ‘medium treatment works’ means a publicly owned 

3 treatment works serving more than 10,000 but fewer 

4 than 100,000 individuals. 

5 ‘‘(3) QUALIFIED NONPROFIT TECHNICAL AS6 SISTANCE PROVIDER.—The term ‘qualified nonprofit 

7 technical assistance provider’ means a qualified non8 profit technical assistance provider of water and 

9 wastewater services to small or medium-sized com10 munities that provides technical assistance (includ11 ing circuit rider, multi-State regional assistance pro12 grams, and training and preliminary engineering 

13 evaluations) to owners and operators of small treat14 ment works or medium treatment works that may 

15 include State agencies. 

16 ‘‘(4) SMALL TREATMENT WORKS.—The term 

17 ‘small treatment works’ means a publicly owned 

18 treatment works serving not more than 10,000 indi19 viduals. 

20 ‘‘(b) GRANT PROGRAM.— 

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

22 make grants on a competitive basis to qualified non23 profit technical assistance providers that are quali24 fied to provide assistance on a broad range of waste25 water and stormwater approaches— 


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1 ‘‘(A) to assist owners and operators of 

2 small treatment works and medium treatment 

3 works to plan, develop, and obtain financing for 

4 eligible projects described in section 603(c) or 

5 518(c); 

6 ‘‘(B) to provide financial assistance, in 

7 consultation with the State in which the assist8 ance is provided, to owners and operators of 

9 small treatment works and medium treatment 

10 works for predevelopment costs (including costs 

11 for planning, design, and associated 

12 preconstruction activities, such as activities re13 lating directly to the siting of the facility and 

14 related elements) associated with stormwater or 

15 wastewater infrastructure projects or short16 term costs incurred for equipment replacement 

17 that is not part of regular operation and main18 tenance activities for existing stormwater or 

19 wastewater systems, if the amount of assistance 

20 for any single project does not exceed $50,000; 

21 ‘‘(C) to provide technical assistance and 

22 training for owners and operators of small 

23 treatment works and medium treatment works 

24 to enable those treatment works and systems to 


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1 protect water quality and achieve and maintain 

2 compliance with this Act; and 

3 ‘‘(D) to disseminate information to owners 

4 and operators of small treatment works and 

5 medium treatment works, with respect to plan6 ning, design, construction, and operation of 

7 treatment works, small municipal separate 

8 storm sewer systems, and decentralized waste9 water treatment systems. 

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

11 out this subsection, the Administrator shall ensure, 

12 to the maximum extent practicable, that technical 

13 assistance provided using funds from a grant under 

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

15 ‘‘(3) CONSULTATION.—As a condition of receiv16 ing a grant under this subsection, a qualified non17 profit technical assistance provider shall agree to 

18 consult with each State in which grant funds are to 

19 be expended before the grant funds are expended in 

20 the State. 

21 ‘‘(4) ANNUAL REPORT.—Not later than 60 days 

22 after the end of each fiscal year, a qualified non23 profit technical assistance provider that receives a 

24 grant under this subsection shall submit to the Ad25 ministrator a report that— 


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1 ‘‘(A) describes the activities of the quali2 fied nonprofit technical assistance provider 

3 using grant funds received under this sub4 section for the fiscal year; and 

5 ‘‘(B) specifies— 

6 ‘‘(i) the number of communities 

7 served; 

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

9 and 

10 ‘‘(iii) the type of assistance provided 

11 by the qualified nonprofit technical assist12 ance provider. 

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

14 are authorized to be appropriated to carry out this sec15 tion— 

16 ‘‘(1) for grants for small treatment works, 

17 $25,000,000 for each of fiscal years 2009 through 

18 2013; and 

19 ‘‘(2) for grants for medium treatment works, 

20 $15,000,000 for each of fiscal years 2009 through 

21 2013.’’. 

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

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

24 1382) is amended by adding at the end the following: 

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


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

2 subsection, the term ‘small system’ means a sys3 tem— 

4 ‘‘(A) for which a municipality or inter5 municipal, interstate, or State agency seeks as6 sistance under this title; and 

7 ‘‘(B) that serves a population of not more 

8 than 10,000 individuals. 

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

10 1 year after the date of enactment of this sub11 section, the Administrator shall assist the States in 

12 establishing simplified procedures for small systems 

13 to obtain assistance under this title. 

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

15 than 1 year after the date of enactment of this sub16 section, after providing notice and opportunity for 

17 public comment, the Administrator shall publish— 

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

19 obtaining assistance under this title; and 

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

21 availability of the manual.’’. 

22 SEC. 102. PROJECTS ELIGIBLE FOR ASSISTANCE. 

23 Section 603 of the Federal Water Pollution Control 

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

25 (c) and inserting the following: 


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

2 in each State water pollution control revolving fund shall 

3 be used only by a municipality or an intermunicipal, inter4 state, or State agency (or, for the purpose of paragraph 

5 (1), by either of those entities or a private treatment 

6 works or decentralized wastewater system that principally 

7 treats municipal wastewater or domestic sewage)— 

8 ‘‘(1) to provide financial assistance for con9 struction activities (including expansion to meet 

10 needs of existing development), including planning, 

11 design, associated preconstruction planning activities 

12 (as defined in section 212) and implementation 

13 measures to control, manage, reduce, treat, infil14 trate, or reuse municipal stormwater, the primary 

15 purpose of which is the protection, preservation, or 

16 enhancement of water quality to support public pur17 poses (including the procurement and use of equip18 ment to support minimum measures, such as street 

19 sweeping and storm drain system cleaning, and ac20 quisition of other land and interests in land to meet 

21 the needs of existing development that are necessary 

22 for those activities and measures); 

23 ‘‘(2) to implement a management program es24 tablished under section 319; 


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1 ‘‘(3) to develop and implement a conservation 

2 and management plan under section 320; 

3 ‘‘(4) to increase the security of wastewater 

4 treatment works (excluding any expenditure for op5 erations or maintenance); 

6 ‘‘(5) to carry out water conservation or effi7 ciency projects, the primary purpose of which is the 

8 protection, preservation, or enhancement of water 

9 quality to support public purposes; 

10 ‘‘(6) to implement measures to integrate water 

11 resource management planning and implementation; 

12 ‘‘(7) to carry out water and wastewater reuse, 

13 reclamation, and recycling projects, the primary pur14 pose of which is the protection, preservation, or en15 hancement of water quality to support public pur16 poses; and 

17 ‘‘(8) for capital costs associated with moni18 toring equipment for combined or sanitary sewer 

19 overflows.’’. 

20 SEC. 103. AFFORDABILITY. 

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

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

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

24 as subsections (g) through (j), respectively; 

25 (2) in subsection (d)— 


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1 (A) in paragraph (1)— 

2 (i) in subparagraph (A), by striking 

3 ‘‘20 years’’ and inserting ‘‘the lesser of 30 

4 years or the design life of the project to be 

5 financed with the proceeds of the loan’’; 

6 and 

7 (ii) in subparagraph (B), by striking 

8 ‘‘not later than 20 years after project com9 pletion’’ and inserting ‘‘upon the expiration 

10 of the term of the loan’’; 

11 (B) in paragraph (6), by striking ‘‘and’’ at 

12 the end; and 

13 (C) in paragraph (7), by striking ‘‘title, ex14 cept that’’ and all that follows and inserting the 

15 following: 

16 ‘‘title, except that— 

17 ‘‘(A) such amounts shall not exceed 6 per18 cent of all grant awards to the fund under this 

19 title; and 

20 ‘‘(B) if there is no appropriation for a fis21 cal year, the total amount of the reasonable 

22 cost of administering the fund and conducting 

23 activities under this title shall not exceed 6 per24 cent of all loan awards made by the State for 

25 that fiscal year; and 


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1 ‘‘(8) as a source of revenue (restricted solely to 

2 interest earnings of the fund) or security for pay3 ment of the principal and interest on revenue or 

4 general obligation bonds issued by the State to pro5 vide matching funds under section 602(b)(2), if the 

6 proceeds of the sale of the bonds will be deposited 

7 in the fund.’’; and 

8 (3) by inserting after subsection (d) the fol9 lowing: 

10 ‘‘(e) ADDITIONAL ASSISTANCE FOR DISADVANTAGED

11 COMMUNITIES.— 

12 ‘‘(1) DEFINITION OF DISADVANTAGED COMMU13 NITY.—In this subsection, the term ‘disadvantaged 

14 community’ means a community with a service area, 

15 or portion of a service area, of a treatment works 

16 that meets affordability criteria established after 

17 public review and comment by the State in which the 

18 treatment works is located. 

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

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

21 State makes a loan from the water pollution control 

22 revolving loan fund in accordance with subsection (c) 

23 to a disadvantaged community or a community that 

24 the State expects to become a disadvantaged comVerDate Aug 31 2005 04:07 Sep 27, 2008 Jkt 069200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S3617.PCS S3617

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1 munity as the result of a proposed project, the State 

2 may provide additional subsidization, including— 

3 ‘‘(A) the forgiveness of all or a portion of 

4 the principal of the loan; and 

5 ‘‘(B) a negative interest rate on the loan. 

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

7 fiscal year, the total amount of loan subsidies made 

8 by the State pursuant to this subsection may not ex9 ceed 30 percent of the amount of the capitalization 

10 grant received by the State for the fiscal year. 

11 ‘‘(4) INFORMATION.—The Administrator may 

12 publish information to assist States in establishing 

13 affordability criteria described in paragraph (1). 

14 ‘‘(f) COST-SAVING WATER TREATMENT AND EFFI15 CIENCY IMPROVEMENTS.—Subject to subsection (e)(3), in 

16 providing a loan for a project under this section, a State 

17 may forgive repayment of such portion of the loan amount, 

18 not to exceed 5 percent, as is equal to the percentage of 

19 the project that is devoted to alternative approaches to 

20 wastewater and stormwater controls (including non21 structural methods) such as projects that treat or mini22 mize sewage or urban stormwater discharges using— 

23 ‘‘(1) decentralized or distributed stormwater 

24 controls; 

25 ‘‘(2) decentralized wastewater treatment; 


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1 ‘‘(3) low-impact development technologies and 

2 nonstructural approaches; 

3 ‘‘(4) stream buffers; 

4 ‘‘(5) wetland restoration and enhancement; 

5 ‘‘(6) actions to minimize the quantity of and di6 rect connections to impervious surfaces; 

7 ‘‘(7) soil and vegetation, or other permeable 

8 materials; 

9 ‘‘(8) actions that increase efficient water use, 

10 water conservation, or water reuse.’’. 

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

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

13 1301(d)) is amended in the second sentence by striking 

14 ‘‘603(h)’’ and inserting ‘‘603(j)’’. 

15 SEC. 104. WATER POLLUTION CONTROL REVOLVING LOAN 

16 FUNDS. 

17 Section 603 of the Federal Water Pollution Control 

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

19 (i) (as redesignated by section 103(a)(1)) and inserting 

20 the following: 

21 ‘‘(i) PRIORITY SYSTEM REQUIREMENT.— 

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

23 ‘‘(A) RESTRUCTURING.—The term ‘re24 structuring’ means— 


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1 ‘‘(i) the consolidation of management 

2 functions or ownership with another facil3 ity; or 

4 ‘‘(ii) the formation of cooperative 

5 partnerships. 

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

10 area consisting of— 

11 ‘‘(i) collection sewers; 

12 ‘‘(ii) a centralized treatment plant 

13 using biological, physical, or chemical 

14 treatment processes; and 

15 ‘‘(iii) a direct point source discharge 

16 to surface water. 

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

18 assistance from the water pollution control revolving 

19 fund of the State, the State shall establish a priority 

20 system that— 

21 ‘‘(A) gives greater weight to an application 

22 for assistance by the owner or operator of a 

23 treatment works if the application includes— 


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

2 a description of the condition of those as3 sets; 

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

5 assets; 

6 ‘‘(iii) a financing plan that factors in 

7 all lifecycle costs indicating sources of rev8 enue from ratepayers, grants, bonds, other 

9 loans, and other sources to meet the costs; 

10 ‘‘(iv) a review of options for restruc11 turing the treatment works; or 

12 ‘‘(v) approaches other than a tradi13 tional wastewater approach that treat or 

14 minimize sewage or urban stormwater dis15 charges using— 

16 ‘‘(I) decentralized or distributed 

17 stormwater controls; 

18 ‘‘(II) decentralized wastewater 

19 treatment; 

20 ‘‘(III) low-impact development 

21 technologies and nonstructural ap22 proaches; 

23 ‘‘(IV) stream buffers; 

24 ‘‘(V) wetland restoration and en25 hancement; 


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1 ‘‘(VI) actions to minimize the 

2 quantity of and direct connections to 

3 impervious surfaces; 

4 ‘‘(VII) soil and vegetation, or 

5 other permeable materials; or 

6 ‘‘(VIII) actions that increase effi7 cient water use, water conservation, or 

8 water reuse; 

9 ‘‘(vi) a demonstration of consistency 

10 with State, regional, and municipal water11 shed plans, water conservation and effi12 ciency plans, or integrated water resource 

13 management plans; 

14 ‘‘(vii) a proposal by the applicant 

15 demonstrating flexibility through alter16 native means to carry out responsibilities 

17 under Federal regulations, that may in18 clude watershed permitting and other inno19 vative management approaches, while 

20 achieving results that— 

21 ‘‘(I) the State, in the case of a 

22 permit program approved under sec23 tion 402, determines will meet permit 

24 requirements; or 


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

3 compared to regulatory standards; 

4 ‘‘(B) takes into consideration appropriate 

5 chemical, physical, and biological data relating 

6 to water quality that the State considers rea7 sonably available and of sufficient quality; 

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

10 priority system and the summary under sub11 paragraph (D); 

12 ‘‘(D) provides for the publication, not less 

13 than biennially in summary form, of a descrip14 tion of projects in the State that are eligible for 

15 assistance under this title that indicates— 

16 ‘‘(i) the priority assigned to each 

17 project under the priority system of the 

18 State; and 

19 ‘‘(ii) the funding schedule for each 

20 project, to that extent the information is 

21 available; and 

22 ‘‘(E) ensures that projects undertaken with 

23 assistance under this title are designed to 

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


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1 with the public health and water quality goals 

2 and requirements of this Act.’’. 

3 SEC. 105. TRANSFERABILITY OF FUNDS. 

4 Section 603 of the Federal Water Pollution Control 

5 Act (33 U.S.C. 1383) (as amended by section 103(a)(1)) 

6 is amended by adding at the end the following: 

7 ‘‘(k) TRANSFER OF FUNDS.— 

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

9 may— 

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

11 of a capitalization grant made under this title; 

12 and 

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

14 provided to the State under section 1452 of the 

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

16 and 

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

18 that does not exceed the amount that may be 

19 reserved under subparagraph (A) for that year 

20 from capitalization grants made under section 

21 1452 of that Act (42 U.S.C. 300j–12); and 

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

23 provided to the State under this title. 

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

25 this subsection shall not be considered to be a State 


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1 contribution for a capitalization grant required 

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

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

4 SEC. 106. NONCOMPLIANCE. 

5 Section 603 of the Federal Water Pollution Control 

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

7 amended by adding at the end the following: 

8 ‘‘(l) NONCOMPLIANCE.— 

9 ‘‘(1) IN GENERAL.—Except as provided in para10 graph (2), no assistance (other than assistance that 

11 is to be used by a treatment works solely for plan12 ning, design, or security purposes) shall be provided 

13 under this title to the owner or operator of a treat14 ment works that has been in significant noncompli15 ance with any requirement of this Act for any of the 

16 4 quarters during the preceding 8 quarters, unless 

17 the treatment works is in compliance with an en18 forceable administrative order to effect compliance 

19 with the requirement. 

20 ‘‘(2) EXCEPTION.—An owner or operator of a 

21 treatment works that is determined under paragraph 

22 (1) to be in significant noncompliance with a re23 quirement described in that paragraph may receive 

24 assistance under this title if the Administrator and 

25 the State providing the assistance determine that— 


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1 ‘‘(A) the entity conducting the enforcement 

2 action on which the determination of significant 

3 noncompliance is based has determined that the 

4 use of assistance would enable the owner or op5 erator of the treatment works to take corrective 

6 action toward resolving the violations; or 

7 ‘‘(B) the entity conducting the enforcement 

8 action on which the determination of significant 

9 noncompliance is based has determined that the 

10 assistance would be used by the owner or oper11 ator of the treatment works in order to assist 

12 owners and operators in making progress to13 wards compliance.’’. 

14 SEC. 107. NEGOTIATION OF CONTRACTS. 

15 Section 603 of the Federal Water Pollution Control 

16 Act (33 U.S.C. 1383) (as amended by section 106) is 

17 amended by adding at the end the following: 

18 ‘‘(m) NEGOTIATION OF CONTRACTS.— 

19 ‘‘(1) IN GENERAL.—A contract to be carried 

20 out using funds directly made available by a capital21 ization grant under this section for program man22 agement, construction management, feasibility stud23 ies, preliminary engineering, design, engineering, 

24 surveying, mapping, or architectural or related serv25 ices shall be negotiated in the same manner as— 


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1 ‘‘(A) a contract for architectural and engi2 neering services is negotiated under chapter 11 

3 of title 40, United States Code; or 

4 ‘‘(B) an equivalent State qualifications5 based requirement (as determined by the Gov6 ernor of the State). 

7 ‘‘(2) EXEMPTION FOR SMALL COMMUNITIES.— 

8 Paragraph (1) shall not apply to a contract de9 scribed in that paragraph for program management, 

10 construction management, feasibility studies, pre11 liminary engineering, design, engineering, surveying, 

12 mapping, or architectural or related services for a 

13 community of 10,000 or fewer individuals.’’. 

14 SEC. 108. ALLOTMENT OF FUNDS. 

15 Section 604 of the Federal Water Pollution Control 

16 Act (33 U.S.C. 1384) is amended by striking subsection 

17 (b) and inserting the following: 

18 ‘‘(b) RESERVATION OF FUNDS.— 

19 ‘‘(1) PLANNING.—Each State may reserve for 

20 each fiscal year the greater of 2 percent of the sums 

21 allotted to the State under this section for the fiscal 

22 year, or $100,000, to carry out planning under sec23 tions 205(j) and 303(e). 

24 ‘‘(2) INDIAN TRIBES.—Of the total amount of 

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1 cent shall be allocated to Indian tribes (as defined 

2 in section 518(h)).’’. 

3 SEC. 109. AUTHORIZATION OF APPROPRIATIONS. 

4 The Federal Water Pollution Control Act is amended 

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

6 the following: 

7 ‘‘SEC. 607. AUTHORIZATION OF APPROPRIATIONS. 

8 ‘‘(a) IN GENERAL.—There are authorized to be ap9 propriated to carry out this title— 

10 ‘‘(1) $3,200,000,000 for each of fiscal years 

11 2008 and 2009; 

12 ‘‘(2) $3,600,000,000 for fiscal year 2010; 

13 ‘‘(3) $4,000,000,000 for fiscal year 2011; and 

14 ‘‘(4) $6,000,000,000 for fiscal year 2012. 

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

16 this section shall remain available until expended. 

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

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

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

20 not more than $1,000,000 for the fiscal year, to remain 

21 available until expended, to pay the costs of conducting 

22 needs surveys under section 516(b)(1)(B).’’. 


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1 SEC. 110. SEWER OVERFLOW CONTROL GRANTS. 

2 (a) SEWER OVERFLOW CONTROL GRANTS.—Section 

3 221 of the Federal Water Pollution Control Act (33 

4 U.S.C. 1301) is amended— 

5 (1) in subsection (a), by striking ‘‘IN GEN6 ERAL’’ and all that follows through ‘‘(2) subject to 

7 subsection (g), the Administrator may’’ and insert8 ing the following: 

9 ‘‘(a) IN GENERAL.—The Administrator may— 

10 ‘‘(1) make grants to States for the purpose of 

11 providing grants to a municipality or municipal enti12 ty for planning, design, and construction of treat13 ment works to intercept, transport, control, or treat 

14 municipal combined sewer overflows and sanitary 

15 sewer overflows; and 

16 ‘‘(2) subject to subsection (g),’’; and 

17 (2) by striking subsections (e) through (g) and 

18 inserting the following: 

19 ‘‘(e) ADMINISTRATIVE REQUIREMENTS.— 

20 ‘‘(1) IN GENERAL.—Subject to paragraph (2), a 

21 project that receives grant assistance under sub22 section (a) shall be carried out subject to the same 

23 requirements as a project that receives assistance 

24 from a State water pollution control revolving fund 

25 established pursuant to title VI. 


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1 ‘‘(2) DETERMINATION OF GOVERNOR.—The re2 quirement described in paragraph (1) shall not apply 

3 to a project that receives grant assistance under 

4 subsection (a) to the extent that the Governor of the 

5 State in which the project is located determines that 

6 a requirement described in title VI is inconsistent 

7 with the purposes of this section. 

8 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 

9 are authorized to be appropriated to carry out this section, 

10 to remain available until expended— 

11 ‘‘(1) $375,000,000 for fiscal year 2008; 

12 ‘‘(2) $375,000,000 for fiscal year 2009; 

13 ‘‘(3) $375,000,000 for fiscal year 2010; 

14 ‘‘(4) $375,000,000 for fiscal year 2011; and 

15 ‘‘(5) $500,000,000 for fiscal year 2012. 

16 ‘‘(g) ALLOCATION OF FUNDS.— 

17 ‘‘(1) FISCAL YEAR 2008 AND 2009.—For each of 

18 fiscal years 2008 and 2009, subject to subsection 

19 (h), the Administrator shall use the amounts made 

20 available to carry out this section to provide grants 

21 to municipalities and municipal entities under sub22 section (a)(2)— 

23 ‘‘(A) in accordance with the priority cri24 teria described in subsection (b); and 


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1 ‘‘(B) with additional priority given to pro2 posed projects that involve the use of— 

3 ‘‘(i) nonstructural, low-impact devel4 opment; 

5 ‘‘(ii) water conservation, efficiency, or 

6 reuse; or 

7 ‘‘(iii) other decentralized stormwater 

8 or wastewater approaches to minimize 

9 flows into the sewer systems. 

10 ‘‘(2) FISCAL YEAR 2010 AND THEREAFTER.— 

11 For fiscal year 2010 and each fiscal year thereafter, 

12 subject to subsection (h), the Administrator shall 

13 use the amounts made available to carry out this 

14 section to provide grants to States under subsection 

15 (a)(1) in accordance with a formula that— 

16 ‘‘(A) shall be established by the Adminis17 trator, after providing notice and an oppor18 tunity for public comment; and 

19 ‘‘(B) allocates to each State a proportional 

20 share of the amounts based on the total needs 

21 of the State for municipal combined sewer over22 flow controls and sanitary sewer overflow con23 trols, as identified in the most recent survey— 

24 ‘‘(i) conducted under section 210; and 


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1 ‘‘(ii) included in a report required 

2 under section 516(b)(1)(B).’’. 

3 (b) REPORTS.—Section 221(i) of the Federal Water 

4 Pollution Control Act (33 U.S.C. 1301(i)) is amended in 

5 the first sentence by striking ‘‘2003’’ and inserting 

6 ‘‘2010’’. 

7 SEC. 111. CAPITALIZATION GRANT AGREEMENTS. 

8 Section 602(b) of the Federal Water Pollution Con9 trol Act (33 U.S.C. 1382(b)) is amended by striking para10 graph (6) and inserting the following: 

11 ‘‘(6) treatment works eligible under section 

12 603(c) that are constructed, in whole or in part, 

13 using funds made available by a State loan fund 

14 under this title shall meet the requirements of sec15 tion 513 in the same manner as treatment works 

16 constructed using assistance provided under title 

17 II;’’. 

18 SEC. 112. CRITICAL WATER INFRASTRUCTURE PROJECTS. 

19 (a) ESTABLISHMENT.—The Administrator of the En20 vironmental Protection Agency (referred to in this section 

21 as the ‘‘Administrator’’) shall establish a program under 

22 which grants are provided to eligible entities for use in 

23 carrying out projects and activities the primary purpose 

24 of which is watershed restoration through the protection 

25 or improvement of water quality. 


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1 (b) PROJECT SELECTION.— 

2 (1) IN GENERAL.—The Administrator may pro3 vide funds under this section to an eligible entity to 

4 carry out an eligible project described in paragraph 

5 (3). 

6 (2) EQUITABLE DISTRIBUTION.—The Adminis7 trator shall ensure an equitable distribution of 

8 projects under this section, taking into account cost 

9 and number of requests for each category listed in 

10 paragraph (3). 

11 (3) ELIGIBLE PROJECTS.—A project that is eli12 gible to be carried out using funds provided under 

13 this section may include projects that are included 

14 in the intended use plan of the State developed in 

15 accordance with section 606(c) of the Federal Water 

16 Pollution Control Act (33 U.S.C. 1386(c)). 

17 (c) LOCAL PARTICIPATION.—In prioritizing projects 

18 for implementation under this section, the Administrator 

19 shall consult with, and consider the priorities of— 

20 (1) affected State and local governments; and 

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

22 watershed planning and restoration. 

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

24 under this section, the Administrator shall enter into an 


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1 agreement with 1 or more non-Federal interests that shall 

2 require the non-Federal interests— 

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

4 project, which may include services, materials, sup5 plies, or other in-kind contributions; 

6 (2) to provide any land, easements, rights-of7 way, and relocations necessary to carry out the 

8 project; and 

9 (3) to pay 100 percent of any operation, main10 tenance, repair, replacement, and rehabilitation costs 

11 associated with the project. 

12 (e) WAIVER.—The Administrator may waive the re13 quirement to pay the non-Federal share of the cost of car14 rying out an eligible activity using funds from a grant pro15 vided under this section if the Administrator determines 

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

17 significant financial hardship if required to pay, the non18 Federal share. 

19 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

20 authorized to be appropriated to carry out this section 

21 $50,000,000 for each of fiscal years 2008 through 2012. 


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1 TITLE II—SAFE DRINKING 

2 WATER INFRASTRUCTURE 

3 SEC. 201. CONTAMINANT PREVENTION, DETECTION, AND 

4 RESPONSE. 

5 Section 1434 of the Safe Drinking Water Act (42 

6 U.S.C. 300i–3) is amended by striking subsection (b) and 

7 inserting the following: 

8 ‘‘(b) REPORT.—Not later than 180 days after the 

9 date of enactment of the Water Infrastructure Financing 

10 Act, the Administrator shall submit to Congress a report 

11 that includes— 

12 ‘‘(1) a description of the progress made as of 

13 that date in implementing this section; and 

14 ‘‘(2) a description of any impediments to that 

15 implementation identified by the Administrator, in16 cluding— 

17 ‘‘(A) difficulty in coordinating the imple18 mentation with other Federal, State, or local 

19 agencies or organizations; 

20 ‘‘(B) insufficient funding for effective im21 plementation; 

22 ‘‘(C) a lack of authorization to take certain 

23 actions (including the authority to hire nec24 essary personnel) required to carry out the im25 plementation; and 


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1 ‘‘(D) technological impediments to devel2 oping the methods, means, and equipment spec3 ified in subsection (a)(1). 

4 ‘‘(c) IMPLEMENTATION PLAN.—The Administrator 

5 shall develop and carry out an implementation plan for 

6 this section consistent with actions taken to date and in7 corporating the results of the report under subsection (b). 

8 ‘‘(d) FUNDING.—There is authorized to be appro9 priated to carry out this section $7,500,000 for each of 

10 fiscal years 2008 through 2012.’’. 

11 SEC. 202. DRINKING WATER TECHNICAL ASSISTANCE FOR 

12 COMMUNITIES. 

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

14 U.S.C. 300j–1(e)) is amended— 

15 (1) in the first sentence, by striking ‘‘The Ad16 ministrator may provide’’ and inserting the fol17 lowing: 

18 ‘‘(1) PUBLIC WATER SYSTEMS.—The Adminis19 trator may provide’’; 

20 (2) in the second sentence, by striking ‘‘Such 

21 assistance’’ and inserting the following: 

22 ‘‘(2) TYPES OF ASSISTANCE.—Such assist23 ance’’; 


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1 (3) in the third sentence, by striking ‘‘The Ad2 ministrator shall ensure’’ and inserting the fol3 lowing: 

4 ‘‘(3) AVAILABILITY.—The Administrator shall 

5 ensure’’; 

6 (4) in the fourth sentence, by striking ‘‘Each 

7 nonprofit’’ and inserting the following: 

8 ‘‘(4) REQUIREMENT APPLICABLE TO NON9 PROFIT ORGANIZATIONS.—Each nonprofit’’; and 

10 (5) by striking the fifth sentence and all that 

11 follows and inserting the following: 

12 ‘‘(5) PRIORITY.—In providing grants under this 

13 section, the Administrator shall give priority to small 

14 systems organizations that, as determined by the 

15 Administrator, are qualified and will be the most ef16 fective at assisting those small systems that have the 

17 greatest need (or a majority of need) in the States. 

18 ‘‘(6) WELLS AND WELL SYSTEMS.— 

19 ‘‘(A) IN GENERAL.—The Administrator 

20 shall provide grants to nonprofit organizations 

21 to provide technical assistance to communities 

22 and individuals regarding the design, operation, 

23 construction, and maintenance of household 

24 wells and small shared well-systems that pro25 vide drinking water. 


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1 ‘‘(B) FORM OF ASSISTANCE.—Technical 

2 assistance referred to in subparagraph (A) may 

3 include— 

4 ‘‘(i) training and education; 

5 ‘‘(ii) operation of a hotline; and 

6 ‘‘(iii) the conduct of other activities 

7 relating to the design and construction of 

8 household, shared, and small water well 

9 systems in rural areas. 

10 ‘‘(C) PRIORITY.—Subject to paragraph 

11 (5), in providing grants under this section, the 

12 Administrator shall give priority to applicants 

13 that, as determined by the Administrator— 

14 ‘‘(i) are qualified; and 

15 ‘‘(ii) have demonstrated experience in 

16 providing similar technical assistance and 

17 in developing similar projects. 

18 ‘‘(D) AUTHORIZATION OF APPROPRIA19 TIONS.—There is authorized to be appropriated 

20 to carry out this paragraph $7,500,000 for each 

21 of fiscal years 2009 through 2013. 

22 ‘‘(7) FUNDING.— 

23 ‘‘(A) AUTHORIZATION OF APPROPRIA24 TIONS.—There is authorized to be appropriated 

25 to the Administrator to carry out this subVerDate Aug 31 2005 04:07 Sep 27, 2008 Jkt 069200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\S3617.PCS S3617

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1 section (other than paragraph (6)) $35,000,000 

2 for each of fiscal years 2009 through 2013. 

3 ‘‘(B) LOBBYING EXPENSES.—No portion 

4 of any State loan fund established under section 

5 1452 and no portion of any funds made avail6 able under this subsection may be used for lob7 bying expenses. 

8 ‘‘(C) INDIAN TRIBES.—Of the total 

9 amount made available under this section for 

10 each fiscal year, 3 percent shall be used for 

11 technical assistance to public water systems 

12 owned or operated by Indian Tribes.’’. 

13 SEC. 203. PRESERVATION OF EMPLOYEE LABOR STAND14 ARDS. 

15 Section 1450 of the Safe Drinking Water Act (42 

16 U.S.C. 300j–9) is amended by striking subsection (e) and 

17 inserting the following: 

18 ‘‘(e) LABOR STANDARDS.— 

19 ‘‘(1) IN GENERAL.—The Administrator shall 

20 take such action as the Administrator determines to 

21 be necessary to ensure that each laborer and me22 chanic employed by a contractor or subcontractor of 

23 a construction project financed, in whole or in part, 

24 by a grant, loan, loan guarantee, refinancing, or any 

25 other form of financial assistance provided under 


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1 this Act (including assistance provided by a State 

2 loan fund established under section 1452) is paid 

3 wages at a rate of not less than the wages prevailing 

4 for the same type of work on similar construction in 

5 the immediate locality, as determined by the Sec6 retary of Labor in accordance with subchapter IV of 

7 chapter 31 of title 40, United States Code. 

8 ‘‘(2) AUTHORITY OF SECRETARY OF LABOR.— 

9 With respect to the labor standards specified in this 

10 subsection, the Secretary of Labor shall have the au11 thority and functions established in Reorganization 

12 Plan Numbered 14 of 1950 (5 U.S.C. App.) and sec13 tion 3145 of title 40, United States Code.’’. 

14 SEC. 204. PRECONSTRUCTION WORK. 

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

16 (42 U.S.C. 300j–12(a)(2)) is amended— 

17 (1) by designating the first, second, third, 

18 fourth, and fifth sentences as subparagraphs (A), 

19 (B), (D), (E), and (F), respectively; 

20 (2) in subparagraph (B) (as designated by 

21 paragraph (1))— 

22 (A) by striking ‘‘(not’’ and inserting ‘‘(in23 cluding expenditures for planning, design, and 

24 associated preconstruction activities, including 


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1 activities relating to the siting of the facility, 

2 but not’’; and 

3 (B) by inserting before the period at the 

4 end the following: ‘‘or to replace or rehabilitate 

5 aging treatment, storage (including reservoirs), 

6 or distribution facilities of public water systems 

7 or provide for capital projects to upgrade the 

8 security of public water systems’’; and 

9 (3) by inserting after subparagraph (B) (as 

10 designated by paragraph (1)) the following: 

11 ‘‘(C) SALE OF BONDS.—Funds may also 

12 be used by a public water system to increase se13 curity at the public water system (excluding any 

14 expenditure for operations and maintenance), or 

15 as a source of revenue (restricted solely to in16 terest earnings of the applicable State loan 

17 fund) or security for payment of the principal 

18 and interest on revenue or general obligation 

19 bonds issued by the State to provide matching 

20 funds under subsection (e), if the proceeds of 

21 the sale of the bonds will be deposited in the 

22 State loan fund.’’. 

23 SEC. 205. PRIORITY SYSTEM REQUIREMENTS. 

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

25 (42 U.S.C. 300j–12(b)(3)) is amended— 


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1 (1) by redesignating subparagraph (B) as sub2 paragraph (D); 

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

4 the following: 

5 ‘‘(A) DEFINITION OF RESTRUCTURING.— 

6 In this paragraph, the term ‘restructuring’ 

7 means changes in operations (including owner8 ship, cooperative partnerships, asset manage9 ment, consolidation, and alternative water sup10 ply). 

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

12 plan shall provide, to the maximum extent prac13 ticable, that priority for the use of funds be 

14 given to projects that— 

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

16 human health; 

17 ‘‘(ii) are necessary to ensure compli18 ance with this title (including requirements 

19 for filtration); and 

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

21 a per-household basis according to State 

22 affordability criteria. 

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

24 After determining project priorities under sub25 paragraph (B), an intended use plan shall furVerDate Aug 31 2005 04:07 Sep 27, 2008 Jkt 069200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\S3617.PCS S3617

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1 ther provide that the State shall give greater 

2 weight to an application for assistance by a 

3 community water system if the application in4 cludes such information as the State determines 

5 to be necessary, including— 

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

7 a description of the condition of the assets; 

8 ‘‘(ii) a schedule for replacement of as9 sets; 

10 ‘‘(iii) a financing plan that factors in 

11 all life-cycle costs indicating sources of rev12 enue from ratepayers, grants, bonds, other 

13 loans, and other sources to meet the costs; 

14 ‘‘(iv) a review of options for restruc15 turing the public water system; 

16 ‘‘(v) demonstration of consistency 

17 with State, regional, and municipal water18 shed plans; and 

19 ‘‘(vi) a water conservation plan con20 sistent with guidelines developed for those 

21 plans by the Administrator under section 

22 1455(a).’’; and 

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

24 paragraph (1)), by striking ‘‘periodically’’ and in25 serting ‘‘at least biennially’’. 


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1 SEC. 206. AFFORDABILITY. 

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

3 (42 U.S.C. 300j–12(d)(3)) is amended in the first sen4 tence by inserting ‘‘, or portion of a service area,’’ after 

5 ‘‘service area’’. 

6 SEC. 207. SAFE DRINKING WATER REVOLVING LOAN 

7 FUNDS. 

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

9 U.S.C. 300j–12(g)) is amended— 

10 (1) paragraph (2)— 

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

12 and inserting ‘‘6’’; and 

13 (B) by striking ‘‘1419,’’ and all that fol14 lows through ‘‘1993.’’ and inserting ‘‘1419.’’; 

15 and 

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

17 ‘‘(5) TRANSFER OF FUNDS.— 

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

19 State may— 

20 ‘‘(i)(I) reserve not more than 33 per21 cent of a capitalization grant made under 

22 this section; and 

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

24 funds provided to the State under section 

25 601 of the Federal Water Pollution Con26 trol Act (33 U.S.C. 1381); and 


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

2 amount that does not exceed the amount 

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

4 for that year from capitalization grants 

5 made under section 601 of that Act (33 

6 U.S.C. 1381); and 

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

8 funds provided to the State under this sec9 tion. 

10 ‘‘(B) STATE MATCH.—Funds reserved 

11 under this paragraph shall not be considered to 

12 be a State match of a capitalization grant re13 quired under this section or section 602(b) of 

14 the Federal Water Pollution Control Act (33 

15 U.S.C. 1382(b)).’’. 

16 SEC. 208. OTHER AUTHORIZED ACTIVITIES. 

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

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

19 before the period at the end the following: ‘‘(including im20 plementation of source water protection plans)’’. 

21 SEC. 209. AUTHORIZATION OF APPROPRIATIONS. 

22 Section 1452 of the Safe Drinking Water Act (42 

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

24 and inserting the following: 

25 ‘‘(m) AUTHORIZATION OF APPROPRIATIONS.— 


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

2 appropriated to carry out this section— 

3 ‘‘(A) $1,500,000,000 for fiscal year 2008; 

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

5 years 2009 and 2010; 

6 ‘‘(C) $3,500,000,000 for fiscal year 2011; 

7 and 

8 ‘‘(D) $6,000,000,000 for fiscal year 2012. 

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

10 under this subsection shall remain available until ex11 pended. 

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

13 the amount made available under paragraph (1) to 

14 carry out this section for a fiscal year, the Adminis15 trator may reserve not more than $1,000,000 per 

16 year to pay the costs of conducting needs surveys 

17 under subsection (h).’’. 

18 SEC. 210. NEGOTIATION OF CONTRACTS. 

19 Section 1452 of the Safe Drinking Water Act (42 

20 U.S.C. 300j–12) is amended by adding at the end the fol21 lowing: 

22 ‘‘(s) NEGOTIATION OF CONTRACTS.— 

23 ‘‘(1) IN GENERAL.—A contract to be carried 

24 out using funds directly made available by a capital25 ization grant under this section for program manVerDate Aug 31 2005 04:07 Sep 27, 2008 Jkt 069200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\S3617.PCS S3617

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1 agement, construction management, feasibility stud2 ies, preliminary engineering, design, engineering, 

3 surveying, mapping, or architectural or related serv4 ices shall be negotiated in the same manner as— 

5 ‘‘(A) a contract for architectural and engi6 neering services is negotiated under chapter 11 

7 of title 40, United States Code; or 

8 ‘‘(B) an equivalent State qualifications9 based requirement (as determined by the Gov10 ernor of the State). 

11 ‘‘(2) EXEMPTION FOR SMALL COMMUNITIES.— 

12 Paragraph (1) shall not apply to a contract de13 scribed in that paragraph for program management, 

14 construction management, feasibility studies, pre15 liminary engineering, design, engineering, surveying, 

16 mapping, or architectural or related services for a 

17 community of 10,000 or fewer individuals.’’. 

18 SEC. 211. CRITICAL DRINKING WATER INFRASTRUCTURE 

19 PROJECTS. 

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

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

22 the Environmental Protection Agency shall establish a 

23 program under which grants are provided to eligible enti24 ties for use in carrying out projects and activities the pri25 mary purpose of which is to assist community water sysVerDate Aug 31 2005 04:07 Sep 27, 2008 Jkt 069200 PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 E:\BILLS\S3617.PCS S3617

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1 tems in meeting the requirements of the Safe Drinking 

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

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

4 to be carried out using funds provided under this section 

5 may include projects that— 

6 (1) develop alternative water sources; 

7 (2) provide assistance to small systems; or 

8 (3) assist a community water system— 

9 (A) to comply with a national primary 

10 drinking water regulation; or 

11 (B) to mitigate groundwater contamina12 tion, including saltwater intrusion. 

13 (c) ELIGIBLE ENTITIES.—An entity eligible to re14 ceive a grant under this section is— 

15 (1) a community water system as defined in 

16 section 1401 of the Safe Drinking Water Act (42 

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

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

19 by an Indian Tribe (as defined in section 1401 of 

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

21 (d) PRIORITY.—In prioritizing projects for implemen22 tation under this section, the Administrator shall give pri23 ority to community water systems that— 

24 (1) serve a community that, under affordability 

25 criteria established by the State under section 


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1 1452(d)(3) of the Safe Drinking Water Act (42 

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

3 (A) a disadvantaged community; or 

4 (B) a community that may become a dis5 advantaged community as a result of carrying 

6 out an eligible activity; or 

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

8 than 10,000 individuals. 

9 (e) LOCAL PARTICIPATION.—In prioritizing projects 

10 for implementation under this section, the Administrator 

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

12 States, Indian Tribes, and local governments. 

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

14 under this section, the Administrator shall enter into a 

15 binding agreement with 1 or more non-Federal interests 

16 that shall require the non-Federal interests— 

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

18 project, which may include services, materials, sup19 plies, or other in-kind contributions; 

20 (2) to provide any land, easements, rights-of21 way, and relocations necessary to carry out the 

22 project; and 

23 (3) to pay 100 percent of any operation, main24 tenance, repair, replacement, and rehabilitation costs 

25 associated with the project. 


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1 (g) WAIVER.—The Administrator may waive the re2 quirement to pay the non-Federal share of the cost of car3 rying out an eligible activity using funds from a grant pro4 vided under this section if the Administrator determines 

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

6 significant financial hardship if required to pay, the non7 Federal share. 

8 (h) AUTHORIZATION OF APPROPRIATIONS.—There is 

9 authorized to be appropriated to carry out this section 

10 $300,000,000 for each of fiscal years 2008 through 2012. 

11 SEC. 212. DISTRICT OF COLUMBIA LEAD SERVICE LINE RE12 PLACEMENT. 

13 (a) SERVICE LINE REPLACEMENT.— 

14 (1) GALVANIC EFFECTS.—In carrying out lead 

15 service line replacement in the District of Columbia, 

16 the galvanic effects of replacement of the service 

17 lines shall be addressed prior to replacement. 

18 (2) AUTHORIZATION OF APPROPRIATIONS.— 

19 There is authorized to be appropriated to carry out 

20 lead service line replacement in the District of Co21 lumbia $30,000,000 for each of fiscal years 2008 

22 through 2012. 

23 (b) LEAD SERVICE LINE REPLACEMENT ASSISTANCE

24 FUND.— 


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1 (1) DEFINITION OF LOW-INCOME.—In this sub2 section, the term ‘‘low-income’’ shall be defined by 

3 the District of Columbia. 

4 (2) GRANTS.—Of the funds provided under sub5 section (a)(2), not more than $2,000,000 per year 

6 may be allocated for water service line replacement 

7 grants to provide assistance to low-income residents 

8 to replace the privately-owned portion of lead service 

9 lines. 

10 (3) LIMITATION.—An individual grant provided 

11 under paragraph (2) shall not exceed $5,000. 

12 TITLE III—MISCELLANEOUS 

13 SEC. 301. DEFINITIONS. 

14 In this title: 

15 (1) ACADEMY.—The term ‘‘Academy’’ means 

16 the National Academy of Sciences. 

17 (2) ADMINISTRATOR.—The term ‘‘Adminis18 trator’’ means the Administrator of the Environ19 mental Protection Agency. 

20 (3) SECRETARY.—The term ‘‘Secretary’’ means 

21 the Secretary of Agriculture. 

22 SEC. 302. PROGRAM FOR WATER QUALITY ENHANCEMENT 

23 AND MANAGEMENT. 

24 (a) INITIAL GRANT PROGRAM.— 


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1 (1) IN GENERAL.—Not later than 2 years after 

2 the date of enactment of this Act, the Administrator 

3 shall establish a program to award grants and enter 

4 into contracts and cooperative agreements with re5 search institutions, institutions of higher education, 

6 and other appropriate entities (including consortia of 

7 such institutions and entities), through a competitive 

8 process, for research on and development of the use 

9 of innovative and alternative technologies to improve 

10 water quality or drinking water supply. 

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

12 subsection, the Administrator may select projects re13 lating to such matters as innovative or alternative 

14 technologies, approaches, practices, or methods— 

15 (A) to increase the effectiveness and effi16 ciency of water and wastewater infrastructure 

17 through the use of integrated water resource 

18 management; 

19 (B) to increase the effectiveness and effi20 ciency of public water systems, including— 

21 (i) source water protection; 

22 (ii) water use reduction; 

23 (iii) water reuse; 

24 (iv) water treatment; 


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1 (v) water distribution and wastewater 

2 collection systems; and 

3 (vi) water security; 

4 (C) to encourage the use of innovative or 

5 alternative technologies or approaches relating 

6 to water supply or availability; 

7 (D) to increase the effectiveness and effi8 ciency of new and existing treatment works, in9 cluding— 

10 (i) methods of collecting, treating, dis11 persing, reusing, reclaiming, and recycling 

12 wastewater; 

13 (ii) system design; 

14 (iii) nonstructural alternatives; 

15 (iv) decentralized approaches; 

16 (v) stormwater and wastewater reuse; 

17 (vi) water efficiency and conservation; 

18 and 

19 (vii) wastewater security; 

20 (E) to increase the effectiveness and effi21 ciency of municipal separate storm sewer sys22 tems and combined sewer systems, including 

23 through the use of soil and vegetation or other 

24 permeable materials; 


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1 (F) to promote new water treatment tech2 nologies and management approaches, including 

3 commercialization and dissemination strategies 

4 for adoption of innovative water, wastewater, 

5 and stormwater technologies and management 

6 approaches or low-impact development tech7 nologies in the homebuilding industry; or 

8 (G) to maintain a clearinghouse of tech9 nologies and management approaches developed 

10 under this subsection and subsection (b) at a 

11 research consortium or institute. 

12 (3) REPORT.—Not later than 2 years after the 

13 date on which the program is established under 

14 paragraph (1), the Administrator shall publish a re15 port that details the findings of each recipient of a 

16 grant under the program with respect to the identi17 fication of any potential new technologies or man18 agement approaches developed in accordance with 

19 this section. 

20 (b) NATIONWIDE GRANT PROGRAM.— 

21 (1) DEFINITION OF MUNICIPALITY.—In this 

22 subsection, the term ‘‘municipality’’ means— 

23 (A) a city, town, borough, county, parish, 

24 district, association, or other public body cre25 ated by or pursuant to State law; or 


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1 (B) an Indian tribe (as defined in section 

2 4 of the Indian Self-Determination and Edu3 cation Assistance Act (25 U.S.C. 450b)). 

4 (2) ESTABLISHMENT.—Not later than 90 days 

5 after the date of publication of the report under sub6 section (a)(3), the Administrator shall establish a 

7 nationwide demonstration grant program— 

8 (A) to promote innovations in technology 

9 and alternative approaches to water quality 

10 management or water supply developed under 

11 subsection (a); and 

12 (B) to reduce costs to municipalities in13 curred in complying with the Federal Water 

14 Pollution Control Act (33 U.S.C. 1251 et seq.) 

15 and the Safe Drinking Water Act (42 U.S.C. 

16 300f et seq.) through the approaches and tech17 nologies developed under subsection (a). 

18 (3) SCOPE.—The demonstration grant program 

19 shall consist of up to 10 projects each year, to be 

20 carried out in municipalities selected by the Admin21 istrator under paragraph (4). 

22 (4) SELECTION OF MUNICIPALITIES.— 

23 (A) APPLICATION.—A municipality that 

24 seeks to participate in the demonstration grant 


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1 program established under paragraph (2) shall 

2 submit to the Administrator a plan that— 

3 (i) is developed in coordination with— 

4 (I) the agencies of the State hav5 ing jurisdiction over water quality and 

6 water supply matters; and 

7 (II) interested stakeholders, in8 cluding institutions of higher edu9 cation and related research institu10 tions; 

11 (ii) describes water impacts specific to 

12 urban or rural areas; 

13 (iii) includes a strategy under which 

14 the municipality, through participation in 

15 the demonstration grant program, could ef16 fectively— 

17 (I) address water quality or 

18 water supply problems; and 

19 (II) achieve the water quality 

20 goals that— 

21 (aa) could be achieved using 

22 more traditional methods; and 

23 (bb) are required under the 

24 Federal Water Pollution Control 

25 Act (33 U.S.C. 1251 et seq.) or 


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1 the Safe Drinking Water Act (42 

2 U.S.C. 300f et seq.); and 

3 (iv) includes a schedule for achieving 

4 the water quality or water supply goals of 

5 the municipality. 

6 (B) CATEGORIES OF PROJECTS.—In car7 rying out the demonstration grant program, the 

8 Administrator shall provide grants for projects 

9 relating to water supply or water quality mat10 ters described in subsection (a)(2)(A). 

11 (C) RESPONSIBILITIES OF ADMINIS12 TRATOR.—In providing grants for projects 

13 under this subsection, the Administrator shall— 

14 (i) ensure, to the maximum extent 

15 practicable, that— 

16 (I) the demonstration grant pro17 gram under this subsection includes a 

18 variety of projects with respect to— 

19 (aa) geographical distribu20 tion; 

21 (bb) innovative technologies 

22 used for the projects; and 

23 (cc) nontraditional ap24 proaches (including low-impact 


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1 development technologies) used 

2 for the projects; and 

3 (II) each category of project de4 scribed in subparagraph (B) is ade5 quately represented; 

6 (ii) give higher priority to projects 

7 that— 

8 (I) address multiple problems; 

9 and 

10 (II) are regionally applicable; 

11 (iii) ensure, to the maximum extent 

12 practicable, that at least 1 community hav13 ing a population of 10,000 or fewer indi14 viduals receives a grant for each fiscal 

15 year; and 

16 (iv) ensure that, for each fiscal year, 

17 no municipality receives more than 25 per18 cent of the total amount of funds made 

19 available for the fiscal year to provide 

20 grants under this subsection. 

21 (D) COST SHARING.— 

22 (i) IN GENERAL.—Except as provided 

23 in clause (ii), the non-Federal share of the 

24 total cost of a project funded by a grant 


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1 under this subsection shall be not less than 

2 20 percent. 

3 (ii) WAIVER.—The Administrator may 

4 reduce or eliminate the non-Federal share 

5 of the cost of a project for reasons of af6 fordability. 

7 (c) REPORTS.— 

8 (1) REPORTS FROM GRANT RECIPIENTS.—A re9 cipient of a grant under this section shall submit to 

10 the Administrator, on the date of completion of a 

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

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

13 describes the effectiveness of the project. 

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

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

16 every 2 years thereafter, the Administrator shall 

17 submit to the Committee on Environment and Pub18 lic Works of the Senate and the Committee on 

19 Transportation and Infrastructure and the Com20 mittee on Energy and Commerce of the House of 

21 Representatives a report that describes the status 

22 and results of the grant programs under this sec23 tion. 

24 (d) INCORPORATION OF RESULTS AND INFORMA25 TION.—To the maximum extent practicable, the AdminisVerDate Aug 31 2005 04:07 Sep 27, 2008 Jkt 069200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 E:\BILLS\S3617.PCS S3617

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1 trator shall incorporate the results of, and information ob2 tained from, successful projects under this section into 

3 programs administered by the Administrator. 

4 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

5 authorized to be appropriated to carry out this section 

6 $20,000,000 for each of fiscal years 2008 through 2012. 

7 SEC. 303. AGRICULTURAL POLLUTION CONTROL TECH8 NOLOGY GRANT PROGRAM. 

9 (a) DEFINITIONS.—In this section: 

10 (1) AGRICULTURAL COMMODITY.—The term 

11 ‘‘agricultural commodity’’ means— 

12 (A) agricultural, horticultural, viticultural, 

13 and dairy products; 

14 (B) livestock and the products of livestock; 

15 (C) the products of poultry and bee rais16 ing; 

17 (D) the products of forestry; and 

18 (E) other commodities raised or produced 

19 on agricultural sites, as determined to be appro20 priate by the Secretary. 

21 (2) AGRICULTURAL PROJECT.—The term ‘‘agri22 cultural project’’ means an agricultural pollution 

23 control technology pilot project that, as determined 

24 by the Administrator— 

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


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1 (B) achieves demonstrable reductions in 

2 water pollution or water use that meet or ex3 ceed those mandated by statutory or regulatory 

4 requirements; and 

5 (C) will not substantially adversely affect 

6 any other long-term environmental medium, in7 cluding air and groundwater resources. 

8 (3) AGRICULTURAL SITE.—The term ‘‘agricul9 tural site’’ means a farming or ranching operation of 

10 a producer. 

11 (4) PRODUCER.—The term ‘‘producer’’ means 

12 any person who is engaged in the production and 

13 sale of an agricultural commodity in the United 

14 States and who owns, or shares the ownership and 

15 risk of loss of, the agricultural commodity. 

16 (5) REVOLVING FUND.—The term ‘‘revolving 

17 fund’’ means an agricultural pollution control tech18 nology State revolving fund established by a State 

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

20 (b) GRANTS FOR AGRICULTURAL STATE REVOLVING

21 FUNDS.— 

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

23 the date of enactment of this section, the Adminis24 trator shall provide to each eligible State described 

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


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

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

3 of the State having jurisdiction over agriculture or 

4 environmental quality, an agricultural pollution con5 trol technology State revolving fund. 

6 (2) ELIGIBLE STATES.—An eligible State re7 ferred to in paragraph (1) is a State that agrees, 

8 prior to receipt of a capitalization grant under para9 graph (1)— 

10 (A) to establish, and deposit the funds 

11 from the grant in, a revolving fund; 

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

13 share in an amount equal to 20 percent of the 

14 capitalization grant; 

15 (C) to use amounts in the revolving fund 

16 to make loans to producers in accordance with 

17 subsection (c); and 

18 (D) to return amounts in the revolving 

19 fund if no loan applications are granted within 

20 2 years of the receipt of the initial capitaliza21 tion grant. 

22 (c) LOANS TO PRODUCERS.— 

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

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

25 amounts in the revolving fund to provide loans to 


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1 producers for use in designing and constructing ag2 ricultural projects. 

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

4 of a loan made to a producer using funds from a re5 volving fund shall not exceed $250,000, in the ag6 gregate, for all agricultural projects serving an agri7 cultural site of the producer. 

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

9 producer using funds from a revolving fund shall— 

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

11 than the market interest rate, including an in12 terest-free loan; and 

13 (B) be repaid to the revolving fund not 

14 later than 20 years after the date on which the 

15 loan is made. 

16 (d) REQUIREMENTS FOR PRODUCERS.— 

17 (1) IN GENERAL.—A producer that seeks to re18 ceive a loan from a revolving fund shall— 

19 (A) submit to the State in which the agri20 cultural site of the producer is located an appli21 cation that— 

22 (i) contains such information as the 

23 State may require; and 

24 (ii) demonstrates, to the satisfaction 

25 of the State, that each project proposed to 


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1 be carried out with funds from the loan is 

2 an agricultural project; and 

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

4 in an expeditious and timely manner, as deter5 mined by the State. 

6 (2) MAXIMUM PERCENTAGE OF AGRICULTURAL

7 PROJECT COST.—Subject to subsection (c)(2), a pro8 ducer that receives a loan from a revolving fund may 

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

10 of the cost of carrying out an agricultural project. 

11 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

12 authorized to be appropriated to carry out this section 

13 $50,000,000. 

14 SEC. 304. STATE REVOLVING FUND REVIEW PROCESS. 

15 As soon as practicable after the date of enactment 

16 of this Act, the Administrator shall— 

17 (1) consult with States, utilities, nonprofit orga18 nizations, and other Federal agencies providing fi19 nancial assistance to identify ways to expedite and 

20 improve the application and review process, for the 

21 provision of assistance from— 

22 (A) the State water pollution control re23 volving funds established under title VI of the 

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

25 1381 et seq.); and 


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1 (B) the State drinking water treatment re2 volving loan funds established under section 

3 1452 of the Safe Drinking Water Act (42 

4 U.S.C. 300j–12); 

5 (2) in carrying out this section, the Adminis6 trator shall consider the needs of small treatment 

7 works (as defined by section 222 of the Federal 

8 Water Pollution Control Act and small public water 

9 systems (as described in section 1433(d) of the Safe 

10 Drinking Water Act (42 U.S.C. 300i–2(d)); 

11 (3) take such administrative action as is nec12 essary to expedite and improve the process as the 

13 Administrator has authority to take under existing 

14 law; 

15 (4) collect information relating to innovative ap16 proaches taken by any State to simplify the applica17 tion process of the State, and provide the informa18 tion to each State; and 

19 (5) submit to Congress a report that, based on 

20 the information identified under paragraph (1), con21 tains recommendations for legislation to facilitate 

22 further streamlining and improvement of the proc23 ess. 


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1 SEC. 305. COST OF SERVICE STUDY. 

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

3 date of enactment of this Act, the Administrator shall 

4 enter an arrangement with the Academy under which the 

5 Academy shall complete and provide to the Administrator 

6 the results of a study of the means by which public water 

7 systems and treatment works selected by the Academy in 

8 accordance with subsection (c) meet the costs associated 

9 with operations, maintenance, capital replacement, and 

10 regulatory requirements. 

11 (b) REQUIRED ELEMENTS.— 

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

13 minimum— 

14 (A) determine whether the rates at public 

15 water systems and treatment works for commu16 nities included in the study were established 

17 using a full-cost pricing model; 

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

19 used, identify any incentive rate systems that 

20 have been successful in significantly reducing— 

21 (i) per capita water demand; 

22 (ii) the volume of wastewater flows; 

23 (iii) the volume of stormwater runoff; 

24 or 

25 (iv) the quantity of pollution gen26 erated by stormwater; 


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1 (C) identify a set of best industry practices 

2 that public water systems and treatment works 

3 may use in establishing a rate structure that— 

4 (i) adequately addresses the true cost 

5 of services provided to consumers by public 

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

8 (ii) encourages water conservation; 

9 and 

10 (iii) takes into consideration the needs 

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

13 (D) identify existing standards for afford14 ability and the manner in which those stand15 ards are determined and defined; 

16 (E) determine the manner in which afford17 ability varies with respect to communities of 

18 different sizes and in different regions; and 

19 (F) determine the extent to which afford20 ability affects the decision of a community to 

21 increase public water system and treatment 

22 works rates (including the decision relating to 

23 the percentage by which those rates should be 

24 increased). 


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1 (2) DISADVANTAGED COMMUNITIES.—The 

2 study shall, at a minimum— 

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

5 geographical regions; 

6 (B) describe, for each State described in 

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

9 out projects and activities under the Safe 

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

11 (C) review other means of identifying the 

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

13 term applies to communities; 

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

17 (E) evaluate the degree to which factors 

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

20 of an industrial base, and the existence of areas 

21 of concentrated poverty are taken into account 

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

24 (c) SELECTION OF COMMUNITIES.—The Academy 

25 shall select communities, the public water system and 


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1 treatment works rate structures of which are to be studied 

2 under this section, that include a cross-section of commu3 nities representing various populations, income levels, de4 mographics, and geographical regions. 

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

6 results of the study, the Administrator shall— 

7 (1) submit the study to Congress; 

8 (2) submit a report that describes the results of 

9 the study; and 

10 (3) make the results available to treatment 

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

14 1 or more new approaches may be implemented at 

15 facilities of the publicly owned treatment works and 

16 public water systems. 

17 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

18 authorized to be appropriated to carry out this section 

19 $1,000,000 for each of fiscal years 2008 and 2009. 

20 SEC. 306. WATER MANAGEMENT STUDY. 

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

22 date of enactment of this Act, the Administrator shall 

23 enter into an arrangement with the Academy under which 

24 the Academy shall conduct a study, during the 26-month 

25 period beginning on the date of enactment of this Act, of 


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1 innovative, effective, and systematic approaches for the 

2 management of water supply, wastewater, and stormwater 

3 in urban areas and surrounding communities (including 

4 greenfield developments) in the United States and other 

5 countries. 

6 (b) REQUIREMENTS.—In carrying out the study 

7 under this section, the Academy shall— 

8 (1) pay particular attention to soft-path or low9 impact approaches to the management described in 

10 subsection (a); and 

11 (2) consider the costs of approaches that are 

12 analyzed. 

13 (c) FUNDING.—The Administrator shall provide to 

14 the Academy a grant in the amount of $1,000,000 for the 

15 period of fiscal years 2009 through 2011 for use in car16 rying out the study under this section. 

17 SEC. 307. REDUCTION IN AUTHORIZATION OF APPROPRIA18 TIONS. 

19 Notwithstanding any other provision of this Act, each 

20 amount authorized to be appropriated under this Act shall 

21 be reduced by 2 percent. 


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Calendar No. 1092 

110TH CONGRESS 

2D SESSION S. 3617 

[Report No. 110–509] 

A BILL 

To amend the Federal Water Pollution Control Act 

United States. water and wastewater infrastructure in the and the Safe Drinking Water Act to improve 

SEPTEMBER 26 (legislative day, SEPTEMBER 17), 2008 

Read twice and placed on the calendar 


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