II 

110TH CONGRESS 

2D SESSION S. 3500 

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 16, 2008 

Mr. LAUTENBERG (for himself, Mrs. BOXER, Mr. VITTER, and Mr. INHOFE) 

introduced the following bill; which was read twice and referred to the 

Committee on Environment and Public Works 

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: 

Sec. 1. Short title; table of contents. 

TITLE I—WATER POLLUTION INFRASTRUCTURE 


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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. 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. Preconstruction work. 

Sec. 204. Priority system requirements. 

Sec. 205. Affordability. 

Sec. 206. Safe drinking water revolving loan funds. 

Sec. 207. Other authorized activities. 

Sec. 208. Authorization of appropriations. 

Sec. 209. Negotiation of contracts. 

Sec. 210. Critical drinking water infrastructure projects. 

Sec. 211. 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. 

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: 


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

2 TREATMENT WORKS AND MEDIUM TREAT3 MENT WORKS. 

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

5 ‘‘(1) DECENTRALIZED WASTEWATER SYSTEM.— 

6 ‘‘(A) IN GENERAL.—The term ‘decentral7 ized wastewater system’ means a wastewater 

8 treatment system that is at or near a site at 

9 which wastewater is generated. 

10 ‘‘(B) INCLUSIONS.—The term ‘decentral11 ized wastewater system’ includes a system that 

12 provides for— 

13 ‘‘(i) nonpotable reuse of treated efflu14 ent; or 

15 ‘‘(ii) energy and nutrient recovery 

16 from wastewater constituents. 

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

18 ‘medium treatment works’ means a publicly owned 

19 treatment works serving more than 10,000 but fewer 

20 than 100,000 individuals. 

21 ‘‘(3) QUALIFIED NONPROFIT TECHNICAL AS22 SISTANCE PROVIDER.—The term ‘qualified nonprofit 

23 technical assistance provider’ means a qualified non24 profit technical assistance provider of water and 

25 wastewater services to small or medium-sized com26 munities that provides technical assistance (includVerDate Aug 31 2005 06:19 Sep 17, 2008 Jkt 069200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3500.IS S3500

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1 ing circuit rider, multi-State regional assistance pro2 grams, and training and preliminary engineering 

3 evaluations) to owners and operators of small treat4 ment works or medium treatment works that may 

5 include State agencies. 

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

7 ‘small treatment works’ means a publicly owned 

8 treatment works serving not more than 10,000 indi9 viduals. 

10 ‘‘(b) GRANT PROGRAM.— 

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

12 make grants on a competitive basis to qualified non13 profit technical assistance providers that are quali14 fied to provide assistance on a broad range of waste15 water and stormwater approaches— 

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

17 small treatment works and medium treatment 

18 works to plan, develop, and obtain financing for 

19 eligible projects described in section 603(c) or 

20 518(c); 

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

22 consultation with the State in which the assist23 ance is provided, to owners and operators of 

24 small treatment works and medium treatment 

25 works for predevelopment costs (including costs 


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1 for planning, design, and associated 

2 preconstruction activities, such as activities re3 lating directly to the siting of the facility and 

4 related elements) associated with stormwater or 

5 wastewater infrastructure projects or short6 term costs incurred for equipment replacement 

7 that is not part of regular operation and main8 tenance activities for existing stormwater or 

9 wastewater systems, if the amount of assistance 

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

11 ‘‘(C) to provide technical assistance and 

12 training for owners and operators of small 

13 treatment works and medium treatment works 

14 to enable those treatment works and systems to 

15 protect water quality and achieve and maintain 

16 compliance with this Act; and 

17 ‘‘(D) to disseminate information to owners 

18 and operators of small treatment works and 

19 medium treatment works, with respect to plan20 ning, design, construction, and operation of 

21 treatment works, small municipal separate 

22 storm sewer systems, and decentralized waste23 water treatment systems. 

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

25 out this subsection, the Administrator shall ensure, 


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1 to the maximum extent practicable, that technical 

2 assistance provided using funds from a grant under 

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

4 ‘‘(3) CONSULTATION.—As a condition of receiv5 ing a grant under this subsection, a qualified non6 profit technical assistance provider shall agree to 

7 consult with each State in which grant funds are to 

8 be expended before the grant funds are expended in 

9 the State. 

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

11 after the end of each fiscal year, a qualified non12 profit technical assistance provider that receives a 

13 grant under this subsection shall submit to the Ad14 ministrator a report that— 

15 ‘‘(A) describes the activities of the quali16 fied nonprofit technical assistance provider 

17 using grant funds received under this sub18 section for the fiscal year; and 

19 ‘‘(B) specifies— 

20 ‘‘(i) the number of communities 

21 served; 

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

23 and 


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1 ‘‘(iii) the type of assistance provided 

2 by the qualified nonprofit technical assist3 ance provider. 

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

5 are authorized to be appropriated to carry out this sec6 tion— 

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

8 $25,000,000 for each of fiscal years 2009 through 

9 2013; and 

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

11 $15,000,000 for each of fiscal years 2009 through 

12 2013.’’. 

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

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

15 1382) is amended by adding at the end the following: 

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

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

18 subsection, the term ‘small system’ means a sys19 tem— 

20 ‘‘(A) for which a municipality or inter21 municipal, interstate, or State agency seeks as22 sistance under this title; and 

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

24 than 10,000 individuals. 


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

2 1 year after the date of enactment of this sub3 section, the Administrator shall assist the States in 

4 establishing simplified procedures for small systems 

5 to obtain assistance under this title. 

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

7 than 1 year after the date of enactment of this sub8 section, after providing notice and opportunity for 

9 public comment, the Administrator shall publish— 

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

11 obtaining assistance under this title; and 

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

13 availability of the manual.’’. 

14 SEC. 102. PROJECTS ELIGIBLE FOR ASSISTANCE. 

15 Section 603 of the Federal Water Pollution Control 

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

17 (c) and inserting the following: 

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

19 in each State water pollution control revolving fund shall 

20 be used only by a municipality or an intermunicipal, inter21 state, or State agency (or, for the purpose of paragraph 

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

23 works or decentralized wastewater system that principally 

24 treats municipal wastewater or domestic sewage)— 


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1 ‘‘(1) to provide financial assistance for con2 struction activities (such as expansion to meet needs 

3 of existing development), including planning design, 

4 and associated preconstruction planning activities 

5 (as defined in section 212)— 

6 ‘‘(A) to implement a management program 

7 established under section 319; and 

8 ‘‘(B) to develop and implement a conserva9 tion and management plan under section 320; 

10 ‘‘(2) to increase the security of wastewater 

11 treatment works (excluding any expenditure for op12 erations or maintenance); 

13 ‘‘(3) to implement measures to control, manage, 

14 reduce, treat, infiltrate, or reuse municipal 

15 stormwater, the primary purpose of which is the 

16 protection, preservation, or enhancement of water 

17 quality to support public purposes, including pro18 curement and use of equipment to support minimum 

19 measures such as street sweeping and storm drain 

20 system cleaning; 

21 ‘‘(4) to carry out water conservation or effi22 ciency projects, the primary purpose of which is the 

23 protection, preservation, or enhancement of water 

24 quality to support public purposes; 


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1 ‘‘(5) to implement measures to integrate water 

2 resource management planning and implementation; 

3 ‘‘(6) to carry out water and wastewater reuse, 

4 reclamation, and recycling projects, the primary pur5 pose of which is the protection, preservation, or en6 hancement of water quality to support public pur7 poses; and 

8 ‘‘(7) for capital costs associated with moni9 toring equipment for combined or sanitary sewer 

10 overflows.’’. 

11 SEC. 103. AFFORDABILITY. 

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

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

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

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

16 (2) in subsection (d)— 

17 (A) in paragraph (1)— 

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

19 ‘‘20 years’’ and inserting ‘‘the lesser of 30 

20 years or the design life of the project to be 

21 financed with the proceeds of the loan’’; 

22 and 

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

24 ‘‘not later than 20 years after project comVerDate Aug 31 2005 06:19 Sep 17, 2008 Jkt 069200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S3500.IS S3500

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1 pletion’’ and inserting ‘‘upon the expiration 

2 of the term of the loan’’; 

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

4 the end; and 

5 (C) in paragraph (7), by striking ‘‘title, ex6 cept that’’ and all that follows and inserting the 

7 following: 

8 ‘‘title, except that— 

9 ‘‘(A) such amounts shall not exceed 6 per10 cent of all grant awards to the fund under this 

11 title; and 

12 ‘‘(B) if there is no appropriation for a fis13 cal year, the total amount of the reasonable 

14 cost of administering the fund and conducting 

15 activities under this title shall not exceed 6 per16 cent of all grant awards made by the State for 

17 that fiscal year; and 

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

19 interest earnings of the fund) or security for pay20 ment of the principal and interest on revenue or 

21 general obligation bonds issued by the State to pro22 vide matching funds under section 602(b)(2), if the 

23 proceeds of the sale of the bonds will be deposited 

24 in the fund.’’; and 


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1 (3) by inserting after subsection (d) the fol2 lowing: 

3 ‘‘(e) ADDITIONAL ASSISTANCE FOR DISADVANTAGED

4 COMMUNITIES.— 

5 ‘‘(1) DEFINITION OF DISADVANTAGED COMMU6 NITY.—In this subsection, the term ‘disadvantaged 

7 community’ means a community with a service area, 

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

9 that meets affordability criteria established after 

10 public review and comment by the State in which the 

11 treatment works is located. 

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

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

14 State makes a loan from the water pollution control 

15 revolving loan fund in accordance with subsection (c) 

16 to a disadvantaged community or a community that 

17 the State expects to become a disadvantaged com18 munity as the result of a proposed project, the State 

19 may provide additional subsidization, including— 

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

21 the principal of the loan; and 

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

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

24 fiscal year, the total amount of loan subsidies made 

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1 ceed 30 percent of the amount of the capitalization 

2 grant received by the State for the fiscal year. 

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

4 publish information to assist States in establishing 

5 affordability criteria described in paragraph (1). 

6 ‘‘(f) COST-SAVING WATER TREATMENT AND EFFI7 CIENCY IMPROVEMENTS.—Subject to subsection (e)(3), in 

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

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

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

11 the project that is devoted to alternative approaches to 

12 wastewater and stormwater controls (including non13 structural methods) such as projects that treat or mini14 mize sewage or urban stormwater discharges using— 

15 ‘‘(1) decentralized or distributed stormwater 

16 controls; 

17 ‘‘(2) decentralized wastewater treatment; 

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

19 nonstructural approaches; 

20 ‘‘(4) stream buffers; 

21 ‘‘(5) wetland restoration and enhancement; 

22 ‘‘(6) actions to minimize the quantity of and di23 rect connections to impervious surfaces; 

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

25 materials; 


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

2 water conservation, or water reuse.’’. 

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

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

5 1301(d)) is amended in the second sentence by striking 

6 ‘‘603(h)’’ and inserting ‘‘603(j)’’. 

7 SEC. 104. WATER POLLUTION CONTROL REVOLVING LOAN 

8 FUNDS. 

9 Section 603 of the Federal Water Pollution Control 

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

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

12 the following: 

13 ‘‘(i) PRIORITY SYSTEM REQUIREMENT.— 

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

15 ‘‘(A) RESTRUCTURING.—The term ‘re16 structuring’ means— 

17 ‘‘(i) the consolidation of management 

18 functions or ownership with another facil19 ity; or 

20 ‘‘(ii) the formation of cooperative 

21 partnerships. 

22 ‘‘(B) TRADITIONAL WASTEWATER AP23 PROACH.—The term ‘traditional wastewater ap24 proach’ means a managed system used to colVerDate Aug 31 2005 06:19 Sep 17, 2008 Jkt 069200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S3500.IS S3500

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1 lect and treat wastewater from an entire service 

2 area consisting of— 

3 ‘‘(i) collection sewers; 

4 ‘‘(ii) a centralized treatment plant 

5 using biological, physical, or chemical 

6 treatment processes; and 

7 ‘‘(iii) a direct point source discharge 

8 to surface water. 

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

10 assistance from the water pollution control revolving 

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

12 system that— 

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

14 for assistance by the owner or operator of a 

15 treatment works if the application includes— 

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

17 a description of the condition of those as18 sets; 

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

20 assets; 

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

22 all lifecycle costs indicating sources of rev23 enue from ratepayers, grants, bonds, other 

24 loans, and other sources to meet the costs; 


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1 ‘‘(iv) a review of options for restruc2 turing the treatment works; or 

3 ‘‘(v) approaches other than a tradi4 tional wastewater approach that treat or 

5 minimize sewage or urban stormwater dis6 charges using— 

7 ‘‘(I) decentralized or distributed 

8 stormwater controls; 

9 ‘‘(II) decentralized wastewater 

10 treatment; 

11 ‘‘(III) low-impact development 

12 technologies and nonstructural ap13 proaches; 

14 ‘‘(IV) stream buffers; 

15 ‘‘(V) wetland restoration and en16 hancement; 

17 ‘‘(VI) actions to minimize the 

18 quantity of and direct connections to 

19 impervious surfaces; 

20 ‘‘(VII) soil and vegetation, or 

21 other permeable materials; or 

22 ‘‘(VIII) actions that increase effi23 cient water use, water conservation, or 

24 water reuse; 


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1 ‘‘(vi) a demonstration of consistency 

2 with State, regional, and municipal water3 shed plans, water conservation and effi4 ciency plans, or integrated water resource 

5 management plans; 

6 ‘‘(vii) a proposal by the applicant 

7 demonstrating flexibility through alter8 native means to carry out responsibilities 

9 under Federal regulations, that may in10 clude watershed permitting and other inno11 vative management approaches, while 

12 achieving results that— 

13 ‘‘(I) the State, in the case of a 

14 permit program approved under sec15 tion 402, determines will meet permit 

16 requirements; or 

17 ‘‘(II) the Administrator deter18 mines are measurably superior when 

19 compared to regulatory standards; 

20 ‘‘(B) takes into consideration appropriate 

21 chemical, physical, and biological data relating 

22 to water quality that the State considers rea23 sonably available and of sufficient quality; 

24 ‘‘(C) provides for public notice and oppor25 tunity to comment on the establishment of the 


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1 priority system and the summary under sub2 paragraph (D); 

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

4 than biennially in summary form, of a descrip5 tion of projects in the State that are eligible for 

6 assistance under this title that indicates— 

7 ‘‘(i) the priority assigned to each 

8 project under the priority system of the 

9 State; and 

10 ‘‘(ii) the funding schedule for each 

11 project, to that extent the information is 

12 available; and 

13 ‘‘(E) ensures that projects undertaken with 

14 assistance under this title are designed to 

15 achieve, as determined by the State, the opti16 mum water quality management, consistent 

17 with the public health and water quality goals 

18 and requirements of this Act.’’. 

19 SEC. 105. TRANSFERABILITY OF FUNDS. 

20 Section 603 of the Federal Water Pollution Control 

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

22 is amended by adding at the end the following: 

23 ‘‘(k) TRANSFER OF FUNDS.— 

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

25 may— 


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

2 of a capitalization grant made under this title; 

3 and 

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

5 provided to the State under section 1452 of the 

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

7 and 

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

9 that does not exceed the amount that may be 

10 reserved under subparagraph (A) for that year 

11 from capitalization grants made under section 

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

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

14 provided to the State under this title. 

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

16 this subsection shall not be considered to be a State 

17 contribution for a capitalization grant required 

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

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

20 SEC. 106. NONCOMPLIANCE. 

21 Section 603 of the Federal Water Pollution Control 

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

23 amended by adding at the end the following: 

24 ‘‘(l) NONCOMPLIANCE.— 


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1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (2), no assistance (other than assistance that 

3 is to be used by a treatment works solely for plan4 ning, design, or security purposes) shall be provided 

5 under this title to the owner or operator of a treat6 ment works that has been in significant noncompli7 ance with any requirement of this Act for any of the 

8 4 quarters during the preceding 8 quarters, unless 

9 the treatment works is in compliance with an en10 forceable administrative order to effect compliance 

11 with the requirement. 

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

13 treatment works that is determined under paragraph 

14 (1) to be in significant noncompliance with a re15 quirement described in that paragraph may receive 

16 assistance under this title if the Administrator and 

17 the State providing the assistance determine that— 

18 ‘‘(A) the entity conducting the enforcement 

19 action on which the determination of significant 

20 noncompliance is based has determined that the 

21 use of assistance would enable the owner or op22 erator of the treatment works to take corrective 

23 action toward resolving the violations; or 

24 ‘‘(B) the entity conducting the enforcement 

25 action on which the determination of significant 


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1 noncompliance is based has determined that the 

2 assistance would be used by the owner or oper3 ator of the treatment works in order to assist 

4 owners and operators in making progress to5 wards compliance.’’. 

6 SEC. 107. NEGOTIATION OF CONTRACTS. 

7 Section 603 of the Federal Water Pollution Control 

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

9 amended by adding at the end the following: 

10 ‘‘(m) NEGOTIATION OF CONTRACTS.—A contract to 

11 be carried out using funds directly made available by a 

12 capitalization grant under this section for program man13 agement, construction management, feasibility studies, 

14 preliminary engineering, design, engineering, surveying, 

15 mapping, or architectural or related services shall be nego16 tiated in the same manner as— 

17 ‘‘(1) a contract for architectural and engineer18 ing services is negotiated under chapter 11 of title 

19 40, United States Code; or 

20 ‘‘(2) an equivalent State qualifications-based re21 quirement (as determined by the Governor of the 

22 State).’’. 


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1 SEC. 108. ALLOTMENT OF FUNDS. 

2 Section 604 of the Federal Water Pollution Control 

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

4 (b) and inserting the following: 

5 ‘‘(b) RESERVATION OF FUNDS.— 

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

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

8 allotted to the State under this section for the fiscal 

9 year, or $100,000, to carry out planning under sec10 tions 205(j) and 303(e). 

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

12 funds made available under paragraph (1), 1.5 per13 cent shall be allocated to Indian tribes (as defined 

14 in section 518(h)).’’. 

15 SEC. 109. AUTHORIZATION OF APPROPRIATIONS. 

16 The Federal Water Pollution Control Act is amended 

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

18 the following: 

19 ‘‘SEC. 607. AUTHORIZATION OF APPROPRIATIONS. 

20 ‘‘(a) IN GENERAL.—There are authorized to be ap21 propriated to carry out this title— 

22 ‘‘(1) $3,200,000,000 for each of fiscal years 

23 2008 and 2009; 

24 ‘‘(2) $3,600,000,000 for fiscal year 2010; 

25 ‘‘(3) $4,000,000,000 for fiscal year 2011; and 

26 ‘‘(4) $6,000,000,000 for fiscal year 2012. 


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

2 this section shall remain available until expended. 

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

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

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

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

7 available until expended, to pay the costs of conducting 

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

9 SEC. 110. SEWER OVERFLOW CONTROL GRANTS. 

10 (a) SEWER OVERFLOW CONTROL GRANTS.—Section 

11 221 of the Federal Water Pollution Control Act (33 

12 U.S.C. 1301) is amended— 

13 (1) in subsection (a), by striking ‘‘IN GEN14 ERAL’’ and all that follows through ‘‘(2) subject to 

15 subsection (g), the Administrator may’’ and insert16 ing the following: 

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

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

19 providing grants to a municipality or municipal enti20 ty for planning, design, and construction of treat21 ment works to intercept, transport, control, or treat 

22 municipal combined sewer overflows and sanitary 

23 sewer overflows; and 

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


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

2 inserting the following: 

3 ‘‘(e) ADMINISTRATIVE REQUIREMENTS.— 

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

5 project that receives grant assistance under sub6 section (a) shall be carried out subject to the same 

7 requirements as a project that receives assistance 

8 from a State water pollution control revolving fund 

9 established pursuant to title VI. 

10 ‘‘(2) DETERMINATION OF GOVERNOR.—The re11 quirement described in paragraph (1) shall not apply 

12 to a project that receives grant assistance under 

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

14 State in which the project is located determines that 

15 a requirement described in title VI is inconsistent 

16 with the purposes of this section. 

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

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

19 to remain available until expended— 

20 ‘‘(1) $375,000,000 for fiscal year 2008; 

21 ‘‘(2) $375,000,000 for fiscal year 2009; 

22 ‘‘(3) $375,000,000 for fiscal year 2010; 

23 ‘‘(4) $375,000,000 for fiscal year 2011; and 

24 ‘‘(5) $500,000,000 for fiscal year 2012. 

25 ‘‘(g) ALLOCATION OF FUNDS.— 


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

2 fiscal years 2008 and 2009, subject to subsection 

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

4 available to carry out this section to provide grants 

5 to municipalities and municipal entities under sub6 section (a)(2)— 

7 ‘‘(A) in accordance with the priority cri8 teria described in subsection (b); and 

9 ‘‘(B) with additional priority given to pro10 posed projects that involve the use of— 

11 ‘‘(i) nonstructural, low-impact devel12 opment; 

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

14 reuse; or 

15 ‘‘(iii) other decentralized stormwater 

16 or wastewater approaches to minimize 

17 flows into the sewer systems. 

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

19 For fiscal year 2010 and each fiscal year thereafter, 

20 subject to subsection (h), the Administrator shall 

21 use the amounts made available to carry out this 

22 section to provide grants to States under subsection 

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


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1 ‘‘(A) shall be established by the Adminis2 trator, after providing notice and an oppor3 tunity for public comment; and 

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

5 share of the amounts based on the total needs 

6 of the State for municipal combined sewer over7 flow controls and sanitary sewer overflow con8 trols, as identified in the most recent survey— 

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

10 ‘‘(ii) included in a report required 

11 under section 516(b)(1)(B).’’. 

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

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

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

15 ‘‘2010’’. 

16 SEC. 111. CRITICAL WATER INFRASTRUCTURE PROJECTS. 

17 (a) ESTABLISHMENT.—The Administrator of the En18 vironmental Protection Agency (referred to in this section 

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

20 which grants are provided to eligible entities for use in 

21 carrying out projects and activities the primary purpose 

22 of which is watershed restoration through the protection 

23 or improvement of water quality. 

24 (b) PROJECT SELECTION.— 


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1 (1) IN GENERAL.—The Administrator may pro2 vide funds under this section to an eligible entity to 

3 carry out an eligible project described in paragraph 

4 (3). 

5 (2) EQUITABLE DISTRIBUTION.—The Adminis6 trator shall ensure an equitable distribution of 

7 projects under this section, taking into account cost 

8 and number of requests for each category listed in 

9 paragraph (3). 

10 (3) ELIGIBLE PROJECTS.—A project that is eli11 gible to be carried out using funds provided under 

12 this section may include projects that are included 

13 in the intended use plan of the State developed in 

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

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

16 (c) LOCAL PARTICIPATION.—In prioritizing projects 

17 for implementation under this section, the Administrator 

18 shall consult with, and consider the priorities of— 

19 (1) affected State and local governments; and 

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

21 watershed planning and restoration. 

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

23 under this section, the Administrator shall enter into an 

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

25 require the non-Federal interests— 


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

2 project, which may include services, materials, sup3 plies, or other in-kind contributions; 

4 (2) to provide any land, easements, rights-of5 way, and relocations necessary to carry out the 

6 project; and 

7 (3) to pay 100 percent of any operation, main8 tenance, repair, replacement, and rehabilitation costs 

9 associated with the project. 

10 (e) WAIVER.—The Administrator may waive the re11 quirement to pay the non-Federal share of the cost of car12 rying out an eligible activity using funds from a grant pro13 vided under this section if the Administrator determines 

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

15 significant financial hardship if required to pay, the non16 Federal share. 

17 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

18 authorized to be appropriated to carry out this section 

19 $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 06:19 Sep 17, 2008 Jkt 069200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S3500.IS S3500

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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. PRECONSTRUCTION WORK. 

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

15 (42 U.S.C. 300j–12(a)(2)) is amended— 

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

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

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

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

20 paragraph (1))— 

21 (A) by striking ‘‘(not’’ and inserting ‘‘(in22 cluding expenditures for planning, design, and 

23 associated preconstruction activities, including 

24 activities relating to the siting of the facility, 

25 but not’’; and 


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1 (B) by inserting before the period at the 

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

3 aging treatment, storage (including reservoirs), 

4 or distribution facilities of public water systems 

5 or provide for capital projects to upgrade the 

6 security of public water systems’’; and 

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

8 designated by paragraph (1)) the following: 

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

10 be used by a public water system to increase se11 curity at the public water system (excluding any 

12 expenditure for operations and maintenance), or 

13 as a source of revenue (restricted solely to in14 terest earnings of the applicable State loan 

15 fund) or security for payment of the principal 

16 and interest on revenue or general obligation 

17 bonds issued by the State to provide matching 

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

19 the sale of the bonds will be deposited in the 

20 State loan fund.’’. 

21 SEC. 204. PRIORITY SYSTEM REQUIREMENTS. 

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

23 (42 U.S.C. 300j–12(b)(3)) is amended— 

24 (1) by redesignating subparagraph (B) as sub25 paragraph (D); 


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

2 the following: 

3 ‘‘(A) DEFINITION OF RESTRUCTURING.— 

4 In this paragraph, the term ‘restructuring’ 

5 means changes in operations (including owner6 ship, cooperative partnerships, asset manage7 ment, consolidation, and alternative water sup8 ply). 

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

10 plan shall provide, to the maximum extent prac11 ticable, that priority for the use of funds be 

12 given to projects that— 

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

14 human health; 

15 ‘‘(ii) are necessary to ensure compli16 ance with this title (including requirements 

17 for filtration); and 

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

19 a per-household basis according to State 

20 affordability criteria. 

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

22 After determining project priorities under sub23 paragraph (B), an intended use plan shall fur24 ther provide that the State shall give greater 

25 weight to an application for assistance by a 


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1 community water system if the application in2 cludes such information as the State determines 

3 to be necessary, including— 

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

5 a description of the condition of the assets; 

6 ‘‘(ii) a schedule for replacement of as7 sets; 

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

9 all life-cycle costs indicating sources of rev10 enue from ratepayers, grants, bonds, other 

11 loans, and other sources to meet the costs; 

12 ‘‘(iv) a review of options for restruc13 turing the public water system; 

14 ‘‘(v) demonstration of consistency 

15 with State, regional, and municipal water16 shed plans; and 

17 ‘‘(vi) a water conservation plan con18 sistent with guidelines developed for those 

19 plans by the Administrator under section 

20 1455(a).’’; and 

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

22 paragraph (1)), by striking ‘‘periodically’’ and in23 serting ‘‘at least biennially’’. 


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1 SEC. 205. 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. 206. 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. 207. 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. 208. 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. 209. 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.—A contract to 

23 be carried out using funds directly made available by a 

24 capitalization grant under this section for program man25 agement, construction management, feasibility studies, 


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1 preliminary engineering, design, engineering, surveying, 

2 mapping, or architectural or related services shall be nego3 tiated in the same manner as— 

4 ‘‘(1) a contract for architectural and engineer5 ing services is negotiated under chapter 11 of title 

6 40, United States Code; or 

7 ‘‘(2) an equivalent State qualifications-based re8 quirement (as determined by the Governor of the 

9 State).’’. 

10 SEC. 210. CRITICAL DRINKING WATER INFRASTRUCTURE 

11 PROJECTS. 

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

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

14 the Environmental Protection Agency shall establish a 

15 program under which grants are provided to eligible enti16 ties for use in carrying out projects and activities the pri17 mary purpose of which is to assist community water sys18 tems in meeting the requirements of the Safe Drinking 

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

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

21 to be carried out using funds provided under this section 

22 may include projects that— 

23 (1) develop alternative water sources; 

24 (2) provide assistance to small systems; or 

25 (3) assist a community water system— 


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1 (A) to comply with a national primary 

2 drinking water regulation; or 

3 (B) to mitigate groundwater contamina4 tion, including saltwater intrusion. 

5 (c) ELIGIBLE ENTITIES.—An entity eligible to re6 ceive a grant under this section is— 

7 (1) a community water system as defined in 

8 section 1401 of the Safe Drinking Water Act (42 

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

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

11 by an Indian tribe (as defined in section 1401 of the 

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

13 (d) PRIORITY.—In prioritizing projects for implemen14 tation under this section, the Administrator shall give pri15 ority to community water systems that— 

16 (1) serve a community that, under affordability 

17 criteria established by the State under section 

18 1452(d)(3) of the Safe Drinking Water Act (42 

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

20 (A) a disadvantaged community; or 

21 (B) a community that may become a dis22 advantaged community as a result of carrying 

23 out an eligible activity; or 

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

25 than 10,000 individuals. 


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1 (e) LOCAL PARTICIPATION.—In prioritizing projects 

2 for implementation under this section, the Administrator 

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

4 States, Indian tribes, and local governments. 

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

6 under this section, the Administrator shall enter into a 

7 binding agreement with 1 or more non-Federal interests 

8 that shall require the non-Federal interests— 

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

10 project, which may include services, materials, sup11 plies, or other in-kind contributions; 

12 (2) to provide any land, easements, rights-of13 way, and relocations necessary to carry out the 

14 project; and 

15 (3) to pay 100 percent of any operation, main16 tenance, repair, replacement, and rehabilitation costs 

17 associated with the project. 

18 (g) WAIVER.—The Administrator may waive the re19 quirement to pay the non-Federal share of the cost of car20 rying out an eligible activity using funds from a grant pro21 vided under this section if the Administrator determines 

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

23 significant financial hardship if required to pay, the non24 Federal share. 


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1 (h) AUTHORIZATION OF APPROPRIATIONS.—There is 

2 authorized to be appropriated to carry out this section 

3 $300,000,000 for each of fiscal years 2008 through 2012. 

4 SEC. 211. DISTRICT OF COLUMBIA LEAD SERVICE LINE RE5 PLACEMENT. 

6 (a) SERVICE LINE REPLACEMENT.— 

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

8 service line replacement in the District of Columbia, 

9 the galvanic effects of replacement of the service 

10 lines shall be addressed prior to replacement. 

11 (2) AUTHORIZATION OF APPROPRIATIONS.— 

12 There is authorized to be appropriated to carry out 

13 lead service line replacement in the District of Co14 lumbia $30,000,000 for each of fiscal years 2008 

15 through 2012. 

16 (b) LEAD SERVICE LINE REPLACEMENT ASSISTANCE

17 FUND.— 

18 (1) DEFINITION OF LOW-INCOME.—In this sub19 section, the term ‘‘low-income’’ shall be defined by 

20 the District of Columbia. 

21 (2) GRANTS.—Of the funds provided under sub22 section (a)(2), not more than $2,000,000 per year 

23 may be allocated for water service line replacement 

24 grants to provide assistance to low-income residents 


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1 to replace the privately-owned portion of lead service 

2 lines. 

3 (3) LIMITATION.—An individual grant provided 

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

5 TITLE III—MISCELLANEOUS 

6 SEC. 301. DEFINITIONS. 

7 In this title: 

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

9 the National Academy of Sciences. 

10 (2) ADMINISTRATOR.—The term ‘‘Adminis11 trator’’ means the Administrator of the Environ12 mental Protection Agency. 

13 (3) SECRETARY.—The term ‘‘Secretary’’ 

14 means— 

15 (A) as used in section 303, the Secretary 

16 of Agriculture; and 

17 (B) as used in section 306, the Secretary 

18 of the Interior, acting through the Director of 

19 the United States Geological Survey. 

20 SEC. 302. PROGRAM FOR WATER QUALITY ENHANCEMENT 

21 AND MANAGEMENT. 

22 (a) INITIAL GRANT PROGRAM.— 

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

24 the date of enactment of this Act, the Administrator 

25 shall establish a program to award grants and enter 


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1 into contracts and cooperative agreements with re2 search institutions, institutions of higher education, 

3 and other appropriate entities (including consortia of 

4 such institutions and entities), through a competitive 

5 process, for research on and development of the use 

6 of innovative and alternative technologies to improve 

7 water quality or drinking water supply. 

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

9 subsection, the Administrator may select projects re10 lating to such matters as innovative or alternative 

11 technologies, approaches, practices, or methods— 

12 (A) to increase the effectiveness and effi13 ciency of water and wastewater infrastructure 

14 through the use of integrated water resource 

15 management; 

16 (B) to increase the effectiveness and effi17 ciency of public water systems, including— 

18 (i) source water protection; 

19 (ii) water use reduction; 

20 (iii) water reuse; 

21 (iv) water treatment; 

22 (v) water distribution and wastewater 

23 collection systems; and 

24 (vi) water security; 


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1 (C) to encourage the use of innovative or 

2 alternative technologies or approaches relating 

3 to water supply or availability; 

4 (D) to increase the effectiveness and effi5 ciency of new and existing treatment works, in6 cluding— 

7 (i) methods of collecting, treating, dis8 persing, reusing, reclaiming, and recycling 

9 wastewater; 

10 (ii) system design; 

11 (iii) nonstructural alternatives; 

12 (iv) decentralized approaches; 

13 (v) stormwater and wastewater reuse; 

14 (vi) water efficiency and conservation; 

15 and 

16 (vii) wastewater security; 

17 (E) to increase the effectiveness and effi18 ciency of municipal separate storm sewer sys19 tems and combined sewer systems, including 

20 through the use of soil and vegetation or other 

21 permeable materials; 

22 (F) to promote new water treatment tech23 nologies and management approaches, including 

24 commercialization and dissemination strategies 

25 for adoption of innovative water, wastewater, 


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1 and stormwater technologies and management 

2 approaches or low-impact development tech3 nologies in the homebuilding industry; or 

4 (G) to maintain a clearinghouse of tech5 nologies and management approaches developed 

6 under this subsection and subsection (b) at a 

7 research consortium or institute. 

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

9 date on which the program is established under 

10 paragraph (1), the Administrator shall publish a re11 port that details the findings of each recipient of a 

12 grant under the program with respect to the identi13 fication of any potential new technologies or man14 agement approaches developed in accordance with 

15 this section. 

16 (b) NATIONWIDE GRANT PROGRAM.— 

17 (1) DEFINITION OF MUNICIPALITY.—In this 

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

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

20 district, association, or other public body cre21 ated by or pursuant to State law; or 

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

23 4 of the Indian Self-Determination and Edu24 cation Assistance Act (25 U.S.C. 450b)). 


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

2 after the date of publication of the report under sub3 section (a)(3), the Administrator shall establish a 

4 nationwide demonstration grant program— 

5 (A) to promote innovations in technology 

6 and alternative approaches to water quality 

7 management or water supply developed under 

8 subsection (a); and 

9 (B) to reduce costs to municipalities in10 curred in complying with the Federal Water 

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

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

13 300f et seq.) through the approaches and tech14 nologies developed under subsection (a). 

15 (3) SCOPE.—The demonstration grant program 

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

17 carried out in municipalities selected by the Admin18 istrator under paragraph (4). 

19 (4) SELECTION OF MUNICIPALITIES.— 

20 (A) APPLICATION.—A municipality that 

21 seeks to participate in the demonstration grant 

22 program established under paragraph (2) shall 

23 submit to the Administrator a plan that— 

24 (i) is developed in coordination with— 


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1 (I) the agencies of the State hav2 ing jurisdiction over water quality and 

3 water supply matters; and 

4 (II) interested stakeholders, in5 cluding institutions of higher edu6 cation and related research institu7 tions; 

8 (ii) describes water impacts specific to 

9 urban or rural areas; 

10 (iii) includes a strategy under which 

11 the municipality, through participation in 

12 the demonstration grant program, could ef13 fectively— 

14 (I) address water quality or 

15 water supply problems; and 

16 (II) achieve the water quality 

17 goals that— 

18 (aa) could be achieved using 

19 more traditional methods; and 

20 (bb) are required under the 

21 Federal Water Pollution Control 

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

23 the Safe Drinking Water Act (42 

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


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1 (iv) includes a schedule for achieving 

2 the water quality or water supply goals of 

3 the municipality. 

4 (B) CATEGORIES OF PROJECTS.—In car5 rying out the demonstration grant program, the 

6 Administrator shall provide grants for projects 

7 relating to water supply or water quality mat8 ters described in subsection (a)(2)(A). 

9 (C) RESPONSIBILITIES OF ADMINIS10 TRATOR.—In providing grants for projects 

11 under this subsection, the Administrator shall— 

12 (i) ensure, to the maximum extent 

13 practicable, that— 

14 (I) the demonstration grant pro15 gram under this subsection includes a 

16 variety of projects with respect to— 

17 (aa) geographical distribu18 tion; 

19 (bb) innovative technologies 

20 used for the projects; and 

21 (cc) nontraditional ap22 proaches (including low-impact 

23 development technologies) used 

24 for the projects; and 


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1 (II) each category of project de2 scribed in subparagraph (B) is ade3 quately represented; 

4 (ii) give higher priority to projects 

5 that— 

6 (I) address multiple problems; 

7 and 

8 (II) are regionally applicable; 

9 (iii) ensure, to the maximum extent 

10 practicable, that at least 1 community hav11 ing a population of 10,000 or fewer indi12 viduals receives a grant for each fiscal 

13 year; and 

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

15 no municipality receives more than 25 per16 cent of the total amount of funds made 

17 available for the fiscal year to provide 

18 grants under this subsection. 

19 (D) COST SHARING.— 

20 (i) IN GENERAL.—Except as provided 

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

22 total cost of a project funded by a grant 

23 under this subsection shall be not less than 

24 20 percent. 


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1 (ii) WAIVER.—The Administrator may 

2 reduce or eliminate the non-Federal share 

3 of the cost of a project for reasons of af4 fordability. 

5 (c) REPORTS.— 

6 (1) REPORTS FROM GRANT RECIPIENTS.—A re7 cipient of a grant under this section shall submit to 

8 the Administrator, on the date of completion of a 

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

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

11 describes the effectiveness of the project. 

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

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

14 every 2 years thereafter, the Administrator shall 

15 submit to the Committee on Environment and Pub16 lic Works of the Senate and the Committee on 

17 Transportation and Infrastructure and the Com18 mittee on Energy and Commerce of the House of 

19 Representatives a report that describes the status 

20 and results of the grant programs under this sec21 tion. 

22 (d) INCORPORATION OF RESULTS AND INFORMA23 TION.—To the maximum extent practicable, the Adminis24 trator shall incorporate the results of, and information obVerDate Aug 31 2005 06:19 Sep 17, 2008 Jkt 069200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 E:\BILLS\S3500.IS S3500

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1 tained from, successful projects under this section into 

2 programs administered by the Administrator. 

3 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated to carry out this section 

5 $20,000,000 for each of fiscal years 2008 through 2012. 

6 SEC. 303. AGRICULTURAL POLLUTION CONTROL TECH7 NOLOGY GRANT PROGRAM. 

8 (a) DEFINITIONS.—In this section: 

9 (1) AGRICULTURAL COMMODITY.—The term 

10 ‘‘agricultural commodity’’ means— 

11 (A) agricultural, horticultural, viticultural, 

12 and dairy products; 

13 (B) livestock and the products of livestock; 

14 (C) the products of poultry and bee rais15 ing; 

16 (D) the products of forestry; and 

17 (E) other commodities raised or produced 

18 on agricultural sites, as determined to be appro19 priate by the Secretary. 

20 (2) AGRICULTURAL PROJECT.—The term ‘‘agri21 cultural project’’ means an agricultural pollution 

22 control technology pilot project that, as determined 

23 by the Administrator— 

24 (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. 

Æ 


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