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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1005 Reported in Senate (RS)]

                                                       Calendar No. 109
111th CONGRESS
  1st Session
                                S. 1005

                          [Report No. 111-47]

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

                              May 7, 2009

    Mr. Cardin (for himself, Mrs. Boxer, Mr. Inhofe, and Mr. Crapo) 
introduced the following bill; which was read twice and referred to the 
               Committee on Environment and Public Works

                             July 15, 2009

               Reported by Mrs. Boxer, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 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.

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

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``Water 
Infrastructure Financing Act''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents of this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Definition of Administrator.
            <DELETED>TITLE I--WATER POLLUTION INFRASTRUCTURE

<DELETED>Sec. 101. Technical assistance for rural small treatment works 
                            and medium treatment works.
<DELETED>Sec. 102. Projects eligible for assistance.
<DELETED>Sec. 103. Affordability.
<DELETED>Sec. 104. Water pollution control revolving loan funds.
<DELETED>Sec. 105. Transferability of funds.
<DELETED>Sec. 106. Noncompliance.
<DELETED>Sec. 107. Negotiation of contracts.
<DELETED>Sec. 108. Allotment of funds.
<DELETED>Sec. 109. Authorization of appropriations.
<DELETED>Sec. 110. Sewer overflow control grants.
<DELETED>Sec. 111. Critical water infrastructure projects.
         <DELETED>TITLE II--SAFE DRINKING WATER INFRASTRUCTURE

<DELETED>Sec. 201. Drinking water technical assistance for communities.
<DELETED>Sec. 202. Preconstruction work.
<DELETED>Sec. 203. Priority system requirements.
<DELETED>Sec. 204. Affordability.
<DELETED>Sec. 205. Safe drinking water revolving loan funds.
<DELETED>Sec. 206. Other authorized activities.
<DELETED>Sec. 207. Authorization of appropriations.
<DELETED>Sec. 208. Negotiation of contracts.
<DELETED>Sec. 209. Critical drinking water infrastructure projects.
<DELETED>Sec. 210. Reducing lead in drinking water.
                   <DELETED>TITLE III--MISCELLANEOUS

<DELETED>Sec. 301. Definition of Academy.
<DELETED>Sec. 302. Program for water quality enhancement and 
                            management.
<DELETED>Sec. 303. Agricultural watershed sustainability technology 
                            grant program.
<DELETED>Sec. 304. State revolving fund review process.
<DELETED>Sec. 305. Cost of service study.
<DELETED>Sec. 306. Effective utility management strategies.
<DELETED>Sec. 307. WaterSense Program.

<DELETED>SEC. 2. DEFINITION OF ADMINISTRATOR.</DELETED>

<DELETED>    In this Act, the term ``Administrator'' means the 
Administrator of the Environmental Protection Agency.</DELETED>

       <DELETED>TITLE I--WATER POLLUTION INFRASTRUCTURE</DELETED>

<DELETED>SEC. 101. TECHNICAL ASSISTANCE FOR RURAL SMALL TREATMENT WORKS 
              AND MEDIUM TREATMENT WORKS.</DELETED>

<DELETED>    (a) In General.--Title II of the Federal Water Pollution 
Control Act (33 U.S.C. 1281 et seq.) is amended by adding at the end 
the following:</DELETED>

<DELETED>``SEC. 222. TECHNICAL ASSISTANCE FOR RURAL SMALL TREATMENT 
              WORKS AND MEDIUM TREATMENT WORKS.</DELETED>

<DELETED>    ``(a) Definitions.--In this section:</DELETED>
        <DELETED>    ``(1) Advanced decentralized wastewater system.--
        The term `advanced decentralized wastewater system' means a 
        decentralized wastewater system that provides more effective 
        treatment than a conventional septic system.</DELETED>
        <DELETED>    ``(2) Decentralized wastewater system.--</DELETED>
                <DELETED>    ``(A) In general.--The term `decentralized 
                wastewater system' means a wastewater treatment system 
                that is at or near a site at which wastewater is 
                generated.</DELETED>
                <DELETED>    ``(B) Inclusions.--The term `decentralized 
                wastewater system' includes a system that provides 
                for--</DELETED>
                        <DELETED>    ``(i) nonpotable reuse of treated 
                        effluent; or</DELETED>
                        <DELETED>    ``(ii) energy and nutrient 
                        recovery from wastewater 
                        constituents.</DELETED>
        <DELETED>    ``(3) Medium treatment works.--The term `medium 
        treatment works' means a publicly owned treatment works serving 
        more than 10,000 but fewer than 100,000 individuals.</DELETED>
        <DELETED>    ``(4) Qualified nonprofit technical assistance 
        provider.--The term `qualified nonprofit technical assistance 
        provider' means a qualified nonprofit technical assistance 
        provider of water and wastewater services to small or medium-
        sized communities that provides technical assistance (including 
        circuit rider, multi-State regional assistance programs, and 
        training and preliminary engineering evaluations) to owners and 
        operators of small treatment works or medium treatment works 
        that may include State agencies.</DELETED>
        <DELETED>    ``(5) Small treatment works.--The term `small 
        treatment works' means a publicly owned treatment works serving 
        not more than 10,000 individuals.</DELETED>
<DELETED>    ``(b) Grant Program.--</DELETED>
        <DELETED>    ``(1) In general.--The Administrator may make 
        grants on a competitive basis to qualified nonprofit technical 
        assistance providers that are qualified to provide assistance 
        on a broad range of wastewater and stormwater approaches--
        </DELETED>
                <DELETED>    ``(A) to assist owners and operators of 
                small treatment works and medium treatment works to 
                plan, develop, and obtain financing for eligible 
                projects described in section 603(c) or 
                518(c);</DELETED>
                <DELETED>    ``(B) to provide financial assistance, in 
                consultation with the State in which the assistance is 
                provided, to owners and operators of small treatment 
                works and medium treatment works for predevelopment 
                costs (including costs for planning, design, and 
                associated preconstruction activities, such as 
                activities relating directly to the siting of the 
                facility and related elements) associated with 
                stormwater or wastewater infrastructure projects or 
                short-term costs incurred for equipment replacement 
                that is not part of regular operation and maintenance 
                activities for existing stormwater or wastewater 
                systems, if the amount of assistance for any single 
                project does not exceed $50,000;</DELETED>
                <DELETED>    ``(C) to provide technical assistance and 
                training for owners and operators of small treatment 
                works and medium treatment works to enable those 
                treatment works and systems to protect water quality 
                and achieve and maintain compliance with this Act; 
                and</DELETED>
                <DELETED>    ``(D) to disseminate information to owners 
                and operators of small treatment works and medium 
                treatment works, with respect to planning, design, 
                construction, and operation of treatment works, small 
                municipal separate storm sewer systems, decentralized 
                wastewater treatment systems, and advanced 
                decentralized wastewater treatment systems.</DELETED>
        <DELETED>    ``(2) Distribution of grant.--In carrying out this 
        subsection, the Administrator shall ensure, to the maximum 
        extent practicable, that technical assistance provided using 
        funds from a grant under paragraph (1) is made available in 
        each State.</DELETED>
        <DELETED>    ``(3) Consultation.--As a condition of receiving a 
        grant under this subsection, a qualified nonprofit technical 
        assistance provider shall agree to consult with each State in 
        which grant funds are to be expended before the grant funds are 
        expended in the State.</DELETED>
        <DELETED>    ``(4) Annual report.--Not later than 60 days after 
        the end of each fiscal year, a qualified nonprofit technical 
        assistance provider that receives a grant under this subsection 
        shall submit to the Administrator a report that--</DELETED>
                <DELETED>    ``(A) describes the activities of the 
                qualified nonprofit technical assistance provider using 
                grant funds received under this subsection for the 
                fiscal year; and</DELETED>
                <DELETED>    ``(B) specifies--</DELETED>
                        <DELETED>    ``(i) the number of communities 
                        served;</DELETED>
                        <DELETED>    ``(ii) the sizes of those 
                        communities; and</DELETED>
                        <DELETED>    ``(iii) the type of assistance 
                        provided by the qualified nonprofit technical 
                        assistance provider.</DELETED>
<DELETED>    ``(c) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section--</DELETED>
        <DELETED>    ``(1) for grants for small treatment works, 
        $25,000,000 for each of fiscal years 2010 through 2014; 
        and</DELETED>
        <DELETED>    ``(2) for grants for medium treatment works, 
        $15,000,000 for each of fiscal years 2010 through 
        2014.''.</DELETED>
<DELETED>    (b) Guidance for Small Systems.--Section 602 of the 
Federal Water Pollution Control Act (33 U.S.C. 1382) is amended by 
adding at the end the following:</DELETED>
<DELETED>    ``(c) Guidance for Small Systems.--</DELETED>
        <DELETED>    ``(1) Definition of small system.--In this 
        subsection, the term `small system' means a system--</DELETED>
                <DELETED>    ``(A) for which a municipality or 
                intermunicipal, interstate, or State agency seeks 
                assistance under this title; and</DELETED>
                <DELETED>    ``(B) that serves a population of not more 
                than 10,000 individuals.</DELETED>
        <DELETED>    ``(2) Simplified procedures.--Not later than 1 
        year after the date of enactment of this subsection, the 
        Administrator shall assist the States in establishing 
        simplified procedures for small systems to obtain assistance 
        under this title.</DELETED>
        <DELETED>    ``(3) Publication of manual.--Not later than 1 
        year after the date of enactment of this subsection, after 
        providing notice and opportunity for public comment, the 
        Administrator shall publish--</DELETED>
                <DELETED>    ``(A) a manual to assist small systems in 
                obtaining assistance under this title; and</DELETED>
                <DELETED>    ``(B) in the Federal Register, notice of 
                the availability of the manual.''.</DELETED>

<DELETED>SEC. 102. PROJECTS ELIGIBLE FOR ASSISTANCE.</DELETED>

<DELETED>    (a) In General.--Section 603 of the Federal Water 
Pollution Control Act (33 U.S.C. 1383) is amended by striking 
subsection (c) and inserting the following:</DELETED>
<DELETED>    ``(c) Projects Eligible for Assistance.--</DELETED>
        <DELETED>    ``(1) In general.--Funds in each State water 
        pollution control revolving fund shall be used only for 
        providing financial assistance--</DELETED>
                <DELETED>    ``(A) to a municipality or an 
                intermunicipal, interstate, or State agency or a 
                private treatment works or decentralized wastewater 
                system that principally treats municipal wastewater or 
                domestic sewage--</DELETED>
                        <DELETED>    ``(i) for construction of 
                        treatment works (as defined in section 212); 
                        or</DELETED>
                        <DELETED>    ``(ii) for capital costs 
                        associated with monitoring equipment for 
                        combined sanitary sewer overflows;</DELETED>
                <DELETED>    ``(B) to implement measures to control, 
                manage, reduce, treat, infiltrate, or reuse stormwater, 
                the primary purpose of which is the preservation, 
                protection, or enhancement of water quality to support 
                public purposes (including the procurement and use of 
                equipment to support minimum measures, such as street 
                sweeping and storm drain system cleaning, or 
                acquisition of other land and interests in land that 
                are necessary for those activities and 
                measures);</DELETED>
                <DELETED>    ``(C) to implement a management program 
                established under section 319;</DELETED>
                <DELETED>    ``(D) to develop and implement a 
                conservation and management plan under section 
                320;</DELETED>
                <DELETED>    ``(E) for projects to increase the 
                security of wastewater treatment works (as defined in 
                section 212), excluding any expenditure for operations 
                or maintenance;</DELETED>
                <DELETED>    ``(F) to carry out water conservation or 
                efficiency projects that result in direct water quality 
                benefits;</DELETED>
                <DELETED>    ``(G) to implement measures to integrate 
                water resource management planning and 
                implementation;</DELETED>
                <DELETED>    ``(H) to carry out water reuse (including 
                wastewater reuse), reclamation, and recycling projects 
                that result in direct water quality benefits;</DELETED>
                <DELETED>    ``(I) for projects to increase the energy 
                efficiency of treatment works (as defined in section 
                212) that result in direct water quality 
                benefits;</DELETED>
                <DELETED>    ``(J) for the development and 
                implementation of utility management improvement plans 
                consistent with an effective utility management 
                strategy (as defined in section 306(a) of the Water 
                Infrastructure Financing Act); and</DELETED>
                <DELETED>    ``(K) for the development and 
                implementation of integrative watershed improvement 
                plans that include cost-effective solutions that 
                consider point and nonpoint sources of pollution and 
                traditional and cost-saving water treatment and 
                efficiency projects.</DELETED>
        <DELETED>    ``(2) Limitation.--Not more than 5 percent of the 
        amount of a capitalization grant of a State may be used during 
        a fiscal year to provide assistance for activities described in 
        subparagraph (J) or (K) of paragraph (1).</DELETED>
        <DELETED>    ``(3) State water pollution control revolving 
        funds.--</DELETED>
                <DELETED>    ``(A) In general.--A State water pollution 
                control revolving fund shall be established, 
                maintained, and credited with repayments.</DELETED>
                <DELETED>    ``(B) Balance of fund.--The balance of 
                each fund described in subparagraph (A) shall be 
                available in perpetuity for providing financial 
                assistance under this section.''.</DELETED>
<DELETED>    (b) Modification of Definition.--Section 212(2)(A) of the 
Federal Water Pollution Control Act (33 U.S.C. 1292(2)(A)) is amended--
</DELETED>
        <DELETED>    (1) by striking ``and any works, including 
        site'';</DELETED>
        <DELETED>    (2) by striking ``is used for ultimate'' and 
        inserting ``will be used for ultimate''; and</DELETED>
        <DELETED>    (3) by inserting ``; and acquisition of other land 
        and interests in land necessary for construction'' before the 
        period at the end.</DELETED>

<DELETED>SEC. 103. AFFORDABILITY.</DELETED>

<DELETED>    (a) In General.--Section 603 of the Federal Water 
Pollution Control Act (33 U.S.C. 1383) is amended--</DELETED>
        <DELETED>    (1) by redesignating subsections (e) through (h) 
        as subsections (g) through (j), respectively;</DELETED>
        <DELETED>    (2) in subsection (d)--</DELETED>
                <DELETED>    (A) in paragraph (1)--</DELETED>
                        <DELETED>    (i) in subparagraph (A), by 
                        striking ``20 years'' and inserting ``the 
                        lesser of 30 years or the design life of the 
                        project to be financed with the proceeds of the 
                        loan''; and</DELETED>
                        <DELETED>    (ii) in subparagraph (B), by 
                        striking ``not later than 20 years after 
                        project completion'' and inserting ``upon the 
                        expiration of the term of the loan'';</DELETED>
                <DELETED>    (B) in paragraph (6), by striking ``and'' 
                at the end; and</DELETED>
                <DELETED>    (C) in paragraph (7), by striking ``title, 
                except that'' and all that follows and inserting the 
                following: ``title, except that--</DELETED>
                <DELETED>    ``(A) such amounts shall not exceed an 
                amount equal to the sum of, for each fiscal year--
                </DELETED>
                        <DELETED>    ``(i) an amount equal to the 
                        greatest of--</DELETED>
                                <DELETED>    ``(I) $400,000;</DELETED>
                                <DELETED>    ``(II) 
                                </DELETED>\<DELETED>1/5</DELETED>\ 
                                <DELETED>percent of the current 
                                valuation of the fund; or</DELETED>
                                <DELETED>    ``(III) 6 percent of all 
                                grant awards to the fund under this 
                                title for a fiscal year; and</DELETED>
                        <DELETED>    ``(ii) the amount of any fees 
                        collected by the State for that purpose, 
                        regardless of the source; and</DELETED>
                <DELETED>    ``(B) as a source of revenue (restricted 
                solely to interest earnings of the fund) or security 
                for payment of the principal and interest on revenue or 
                general obligation bonds issued by the State to provide 
                matching funds under section 602(b)(2), if the proceeds 
                of the sale of the bonds will be deposited in the 
                fund.''; and</DELETED>
        <DELETED>    (3) by inserting after subsection (d) the 
        following:</DELETED>
<DELETED>    ``(e) Additional Assistance for Disadvantaged 
Communities.--</DELETED>
        <DELETED>    ``(1) Definition of disadvantaged community.--In 
        this subsection, the term `disadvantaged community' means a 
        community with a service area, or portion of a service area, of 
        a treatment works that meets affordability criteria established 
        after public review and comment by the State in which the 
        treatment works is located.</DELETED>
        <DELETED>    ``(2) Loan subsidy.--Notwithstanding any other 
        provision of this section, subject to paragraph (5), in a case 
        in which the State makes a loan from the water pollution 
        control revolving loan fund in accordance with subsection (c) 
        to a disadvantaged community or a community that the State 
        expects to become a disadvantaged community as the result of a 
        proposed project, the State may provide additional 
        subsidization, including--</DELETED>
                <DELETED>    ``(A) the forgiveness of all or a portion 
                of the principal of the loan; and</DELETED>
                <DELETED>    ``(B) a negative interest rate on the 
                loan.</DELETED>
        <DELETED>    ``(3) Total amount of subsidies.--For each fiscal 
        year, the total amount of loan subsidies made by the State 
        pursuant to this subsection may not exceed 30 percent of the 
        amount of the capitalization grant received by the State for 
        the fiscal year.</DELETED>
        <DELETED>    ``(4) Information.--The Administrator may publish 
        information to assist States in establishing affordability 
        criteria described in paragraph (1).</DELETED>
<DELETED>    ``(f) Cost-saving Water Treatment and Efficiency 
Improvements.--</DELETED>
        <DELETED>    ``(1) In general.--Subject to subsection (e)(3), 
        in providing a loan for a project under this section, a State 
        may forgive repayment of a portion of the loan amount up to the 
        percentage of the project that is devoted to alternative 
        approaches to wastewater and stormwater controls (including 
        nonstructural methods), such as projects that treat or minimize 
        sewage or urban stormwater discharges using--</DELETED>
                <DELETED>    ``(A) decentralized or distributed 
                stormwater controls;</DELETED>
                <DELETED>    ``(B) advanced decentralized wastewater 
                treatment;</DELETED>
                <DELETED>    ``(C) low-impact development technologies 
                and nonstructural approaches;</DELETED>
                <DELETED>    ``(D) stream buffers;</DELETED>
                <DELETED>    ``(E) wetland restoration and 
                enhancement;</DELETED>
                <DELETED>    ``(F) actions to minimize the quantity of 
                and direct connections to impervious 
                surfaces;</DELETED>
                <DELETED>    ``(G) soil and vegetation, or other 
                permeable materials;</DELETED>
                <DELETED>    ``(H) actions that increase efficient 
                water use, water conservation, or water reuse; 
                or</DELETED>
                <DELETED>    ``(I) actions that increase energy 
                efficiency or reduce energy consumption at a treatment 
                works.</DELETED>
        <DELETED>    ``(2) Treatment of loan forgiveness.--The amount 
        of loan forgiveness provided by a State under this subsection 
        shall be--</DELETED>
                <DELETED>    ``(A) credited to each State; 
                and</DELETED>
                <DELETED>    ``(B) deducted from the total amount of 
                State capitalization grants for which matching funds 
                are required from the State under section 
                602(b)(2).''.</DELETED>
<DELETED>    (b) Conforming Amendment.--Section 221(d) of the Federal 
Water Pollution Control Act (33 U.S.C. 1301(d)) is amended in the 
second sentence by striking ``603(h)'' and inserting 
``603(j)''.</DELETED>

<DELETED>SEC. 104. WATER POLLUTION CONTROL REVOLVING LOAN 
              FUNDS.</DELETED>

<DELETED>    Section 603 of the Federal Water Pollution Control Act (33 
U.S.C. 1383) is amended by striking subsection (i) (as redesignated by 
section 103(a)(1)) and inserting the following:</DELETED>
<DELETED>    ``(i) Priority System Requirement.--</DELETED>
        <DELETED>    ``(1) Definitions.--In this subsection:</DELETED>
                <DELETED>    ``(A) Restructuring.--The term 
                `restructuring' means--</DELETED>
                        <DELETED>    ``(i) the consolidation of 
                        management functions or ownership with another 
                        facility; or</DELETED>
                        <DELETED>    ``(ii) the formation of 
                        cooperative partnerships.</DELETED>
                <DELETED>    ``(B) Traditional wastewater approach.--
                The term `traditional wastewater approach' means a 
                managed system used to collect and treat wastewater 
                from an entire service area consisting of--</DELETED>
                        <DELETED>    ``(i) collection sewers;</DELETED>
                        <DELETED>    ``(ii) a centralized treatment 
                        plant using biological, physical, or chemical 
                        treatment processes; and</DELETED>
                        <DELETED>    ``(iii) a direct point source 
                        discharge to surface water.</DELETED>
        <DELETED>    ``(2) Priority system.--In providing financial 
        assistance from the water pollution control revolving fund of 
        the State, the State shall establish a priority system that--
        </DELETED>
                <DELETED>    ``(A) takes into consideration appropriate 
                chemical, physical, and biological data relating to 
                water quality that the State considers reasonably 
                available and of sufficient quality;</DELETED>
                <DELETED>    ``(B) ensures that projects undertaken 
                with assistance under this title are designed to 
                achieve, as determined by the State, the optimum water 
                quality management, consistent with the public health 
                and water quality goals and requirements of this 
                Act;</DELETED>
                <DELETED>    ``(C) provides for public notice and 
                opportunity to comment on the establishment of the 
                priority system and the summary under subparagraph (D); 
                and</DELETED>
                <DELETED>    ``(D) provides for the publication, not 
                less than biennially in summary form, of a description 
                of projects in the State that are eligible for 
                assistance under this title that indicates--</DELETED>
                        <DELETED>    ``(i) the priority assigned to 
                        each project under the priority system of the 
                        State; and</DELETED>
                        <DELETED>    ``(ii) the funding schedule for 
                        each project, to the extent the information is 
                        available.</DELETED>
        <DELETED>    ``(3) Weight given to applications.--After 
        determining project priorities under subparagraph (2), the 
        State shall give greater weight to an application for 
        assistance if the application includes such information as the 
        State determines to be necessary and contains--</DELETED>
                <DELETED>    ``(A) a description of utility management 
                best practices undertaken by a treatment works applying 
                for assistance, including--</DELETED>
                        <DELETED>    ``(i) an inventory of assets, 
                        including a description of the condition of 
                        those assets;</DELETED>
                        <DELETED>    ``(ii) a schedule for replacement 
                        of the assets;</DELETED>
                        <DELETED>    ``(iii) a financing plan that 
                        factors in all lifecycle costs indicating 
                        sources of revenue from ratepayers, grants, 
                        bonds, other loans, and other sources to meet 
                        the costs; and</DELETED>
                        <DELETED>    ``(iv) a review of options for 
                        restructuring the treatment works;</DELETED>
                <DELETED>    ``(B) approaches other than a traditional 
                wastewater approach that treat or minimize sewage or 
                urban stormwater discharges using--</DELETED>
                        <DELETED>    ``(i) decentralized or distributed 
                        stormwater controls;</DELETED>
                        <DELETED>    ``(ii) advanced decentralized 
                        wastewater treatment;</DELETED>
                        <DELETED>    ``(iii) low-impact development 
                        technologies and nonstructural 
                        approaches;</DELETED>
                        <DELETED>    ``(iv) stream buffers;</DELETED>
                        <DELETED>    ``(v) wetland restoration and 
                        enhancement;</DELETED>
                        <DELETED>    ``(vi) actions to minimize the 
                        quantity of and direct connections to 
                        impervious surfaces;</DELETED>
                        <DELETED>    ``(vii) soil and vegetation, or 
                        other permeable materials;</DELETED>
                        <DELETED>    ``(viii) actions that increase 
                        efficient water use, water conservation, or 
                        water reuse; or</DELETED>
                        <DELETED>    ``(ix) actions that increase 
                        energy efficiency or reduce energy consumption 
                        at a treatment works;</DELETED>
                <DELETED>    ``(C) a demonstration of consistency with 
                State, regional, and municipal watershed plans, water 
                conservation and efficiency plans, or integrated water 
                resource management plans;</DELETED>
                <DELETED>    ``(D) a proposal by the applicant 
                demonstrating flexibility through alternative means to 
                carry out responsibilities under Federal regulations, 
                that may include watershed permitting and other 
                innovative management approaches, while achieving 
                results that--</DELETED>
                        <DELETED>    ``(i) the State, in the case of a 
                        permit program approved under section 402, 
                        determines will meet permit requirements; 
                        or</DELETED>
                        <DELETED>    ``(ii) the Administrator 
                        determines are measurably superior, as compared 
                        to regulatory standards; or</DELETED>
                <DELETED>    ``(E) projects that address adverse 
                environmental conditions.''.</DELETED>

<DELETED>SEC. 105. TRANSFERABILITY OF FUNDS.</DELETED>

<DELETED>    Section 603 of the Federal Water Pollution Control Act (33 
U.S.C. 1383) (as amended by section 103(a)(1)) is amended by adding at 
the end the following:</DELETED>
<DELETED>    ``(k) Transfer of Funds.--</DELETED>
        <DELETED>    ``(1) In general.--The Governor of a State may--
        </DELETED>
                <DELETED>    ``(A)(i) reserve not more than the greater 
                of--</DELETED>
                        <DELETED>    ``(I) 33 percent of a 
                        capitalization grant made under this title; 
                        or</DELETED>
                        <DELETED>    ``(II) 33 percent of a 
                        capitalization grant made under section 1452 of 
                        the Safe Drinking Water Act (42 U.S.C. 300j-
                        12); and</DELETED>
                <DELETED>    ``(ii) add the reserved funds to any funds 
                provided to the State under section 1452 of the Safe 
                Drinking Water Act (42 U.S.C. 300j-12); and</DELETED>
                <DELETED>    ``(B)(i) reserve for any year an amount 
                that does not exceed the amount that may be reserved 
                under subparagraph (A) for that year from 
                capitalization grants made under section 1452 of that 
                Act (42 U.S.C. 300j-12); and</DELETED>
                <DELETED>    ``(ii) add the reserved funds to any funds 
                provided to the State under this title.</DELETED>
        <DELETED>    ``(2) State match.--Funds reserved under this 
        subsection shall not be considered to be a State contribution 
        for a capitalization grant required under this title or section 
        1452(b) of the Safe Drinking Water Act (42 U.S.C. 300j-
        12(b)).''.</DELETED>

<DELETED>SEC. 106. NONCOMPLIANCE.</DELETED>

<DELETED>    Section 603 of the Federal Water Pollution Control Act (33 
U.S.C. 1383) (as amended by section 105) is amended by adding at the 
end the following:</DELETED>
<DELETED>    ``(l) Noncompliance.--</DELETED>
        <DELETED>    ``(1) In general.--Except as provided in paragraph 
        (2), no assistance (other than assistance that is to be used by 
        a treatment works solely for planning, design, or security 
        purposes) shall be provided under this title to the owner or 
        operator of a treatment works that has been in significant 
        noncompliance with any requirement of this Act for any of the 4 
        quarters during the preceding 8 quarters, unless the treatment 
        works is in compliance with an enforceable administrative order 
        to effect compliance with the requirement.</DELETED>
        <DELETED>    ``(2) Exception.--An owner or operator of a 
        treatment works that is determined under paragraph (1) to be in 
        significant noncompliance with a requirement described in that 
        paragraph may receive assistance under this title if the 
        Administrator and the State providing the assistance determine 
        that--</DELETED>
                <DELETED>    ``(A) the entity conducting the 
                enforcement action on which the determination of 
                significant noncompliance is based has determined that 
                the use of assistance would enable the owner or 
                operator of the treatment works to take corrective 
                action toward resolving the violations; or</DELETED>
                <DELETED>    ``(B) the entity conducting the 
                enforcement action on which the determination of 
                significant noncompliance is based has determined that 
                the assistance would be used by the owner or operator 
                of the treatment works in order to assist owners and 
                operators in making progress towards 
                compliance.''.</DELETED>

<DELETED>SEC. 107. NEGOTIATION OF CONTRACTS.</DELETED>

<DELETED>    Section 603 of the Federal Water Pollution Control Act (33 
U.S.C. 1383) (as amended by section 106) is amended by adding at the 
end the following:</DELETED>
<DELETED>    ``(m) Negotiation of Contracts.--</DELETED>
        <DELETED>    ``(1) In general.--A contract to be carried out 
        using funds directly made available by a capitalization grant 
        under this section for program management, construction 
        management, feasibility studies, preliminary engineering, 
        design, engineering, surveying, mapping, or architectural or 
        related services shall be negotiated in the same manner as--
        </DELETED>
                <DELETED>    ``(A) a contract for architectural and 
                engineering services is negotiated under chapter 11 of 
                title 40, United States Code; or</DELETED>
                <DELETED>    ``(B) an equivalent State qualifications-
                based requirement (as determined by the Governor of the 
                State).</DELETED>
        <DELETED>    ``(2) Exemption for small communities.--Paragraph 
        (1) shall not apply to a contract described in that paragraph 
        for program management, construction management, feasibility 
        studies, preliminary engineering, design, engineering, 
        surveying, mapping, or architectural or related services for a 
        community of 10,000 or fewer individuals.''.</DELETED>

<DELETED>SEC. 108. ALLOTMENT OF FUNDS.</DELETED>

<DELETED>    Section 604 of the Federal Water Pollution Control Act (33 
U.S.C. 1384) is amended by striking subsections (a) and (b) and 
inserting the following:</DELETED>
<DELETED>    ``(a) In General.--Amounts authorized to be appropriated 
to carry out this section for each of fiscal years 2010 through 2014 
shall be allotted among States by the Administrator in accordance with 
the percentages specified in the following table:</DELETED>

------------------------------------------------------------------------
                          ``State                             Percentage
------------------------------------------------------------------------
Alabama....................................................     0.012860
Alaska.....................................................     0.007500
Arizona....................................................     0.010247
Arkansas...................................................     0.007500
California.................................................     0.079629
Colorado...................................................     0.010164
Connecticut................................................     0.014150
Delaware...................................................     0.007500
District of Columbia.......................................     0.005000
Florida....................................................     0.044139
Georgia....................................................     0.012825
Hawaii.....................................................     0.008048
Idaho......................................................     0.007500
Illinois...................................................     0.048540
Indiana....................................................     0.024633
Iowa.......................................................     0.010266
Kansas.....................................................     0.009129
Kentucky...................................................     0.012025
Louisiana..................................................     0.013465
Maine......................................................     0.007829
Maryland...................................................     0.025129
Massachusetts..............................................     0.025754
Michigan...................................................     0.033487
Minnesota..................................................     0.020385
Mississippi................................................     0.009112
Missouri...................................................     0.028037
Montana....................................................     0.007500
Nebraska...................................................     0.008023
Nevada.....................................................     0.007500
New Hampshire..............................................     0.007500
New Jersey.................................................     0.046117
New Mexico.................................................     0.007500
New York...................................................     0.103531
North Carolina.............................................     0.019007
North Dakota...............................................     0.007500
Ohio.......................................................     0.054722
Oklahoma...................................................     0.008171
Oregon.....................................................     0.012456
Pennsylvania...............................................     0.041484
Rhode Island...............................................     0.007500
South Carolina.............................................     0.007500
South Dakota...............................................     0.007500
Tennessee..................................................     0.011019
Texas......................................................     0.037664
Utah.......................................................     0.007500
Vermont....................................................     0.007500
Virginia...................................................     0.020698
Washington.................................................     0.017588
West Virginia..............................................     0.011825
Wisconsin..................................................     0.022844
Wyoming....................................................     0.007500
Puerto Rico................................................     0.005000
Territories................................................    0.002500.
------------------------------------------------------------------------

<DELETED>    ``(b) Reservation of Funds.--</DELETED>
        <DELETED>    ``(1) Planning.--Each State may reserve for each 
        fiscal year to carry out planning under sections 205(j) and 
        303(e) an amount equal to the greater of--</DELETED>
                <DELETED>    ``(A) 2 percent of the sums allotted to 
                the State under this section for the fiscal year; 
                or</DELETED>
                <DELETED>    ``(B) $100,000.</DELETED>
        <DELETED>    ``(2) Indian tribes.--Of the total amount of funds 
        allotted to the State under this section for a fiscal year, 1.5 
        percent shall be allocated to Indian tribes (as defined in 
        section 518(h)).</DELETED>
        <DELETED>    ``(3) Operator training.--Of the total amount of 
        funds made available to carry out this title, for fiscal year 
        2009 and each fiscal year thereafter, the Administrator may 
        reserve not more than $5,000,000 to carry out the objectives 
        described in section 104(g).''.</DELETED>

<DELETED>SEC. 109. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    The Federal Water Pollution Control Act is amended by 
striking section 607 (33 U.S.C. 1387) and inserting the 
following:</DELETED>

<DELETED>``SEC. 607. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    ``(a) In General.--There are authorized to be appropriated 
to carry out this title--</DELETED>
        <DELETED>    ``(1) $3,200,000,000 for each of fiscal years 2010 
        and 2011;</DELETED>
        <DELETED>    ``(2) $3,600,000,000 for fiscal year 
        2012;</DELETED>
        <DELETED>    ``(3) $4,000,000,000 for fiscal year 2013; 
        and</DELETED>
        <DELETED>    ``(4) $6,000,000,000 for fiscal year 
        2014.</DELETED>
<DELETED>    ``(b) Availability.--Amounts made available under this 
section shall remain available until expended.</DELETED>
<DELETED>    ``(c) Reservation for Needs Surveys.--Of the amount made 
available under subsection (a) to carry out this title for a fiscal 
year, the Administrator may reserve not more than $1,000,000 for the 
fiscal year, to remain available until expended, to pay the costs of 
conducting needs surveys under section 516(b)(1)(B).''.</DELETED>

<DELETED>SEC. 110. SEWER OVERFLOW CONTROL GRANTS.</DELETED>

<DELETED>    (a) Sewer Overflow Control Grants.--Section 221 of the 
Federal Water Pollution Control Act (33 U.S.C. 1301) is amended--
</DELETED>
        <DELETED>    (1) in subsection (a), by striking ``In General'' 
        and all that follows through ``(2) subject to subsection (g), 
        the Administrator may'' and inserting the following:</DELETED>
<DELETED>    ``(a) In General.--The Administrator may--</DELETED>
        <DELETED>    ``(1) make grants to States for the purpose of 
        providing grants to a municipality or municipal entity for 
        planning, design, and construction of treatment works to 
        intercept, transport, control, or treat municipal combined 
        sewer overflows and sanitary sewer overflows; and</DELETED>
        <DELETED>    ``(2) subject to subsection (g),''; and</DELETED>
        <DELETED>    (2) by striking subsections (e) through (g) and 
        inserting the following:</DELETED>
<DELETED>    ``(e) Administrative Requirements.--</DELETED>
        <DELETED>    ``(1) In general.--Subject to paragraph (2), a 
        project that receives grant assistance under subsection (a) 
        shall be carried out subject to the same requirements as a 
        project that receives assistance from a State water pollution 
        control revolving fund established pursuant to title 
        VI.</DELETED>
        <DELETED>    ``(2) Determination of governor.--The requirement 
        described in paragraph (1) shall not apply to a project that 
        receives grant assistance under subsection (a) to the extent 
        that the Governor of the State in which the project is located 
        determines that a requirement described in title VI is 
        inconsistent with the purposes of this section.</DELETED>
<DELETED>    ``(f) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section, to remain 
available until expended--</DELETED>
        <DELETED>    ``(1) $250,000,000 for fiscal year 2010;</DELETED>
        <DELETED>    ``(2) $300,000,000 for fiscal year 2011;</DELETED>
        <DELETED>    ``(3) $350,000,000 for fiscal year 2012;</DELETED>
        <DELETED>    ``(4) $400,000,000 for fiscal year 2013; 
        and</DELETED>
        <DELETED>    ``(5) $500,000,000 for fiscal year 2014.</DELETED>
<DELETED>    ``(g) Allocation of Funds.--</DELETED>
        <DELETED>    ``(1) Fiscal year 2010 and 2011.--For each of 
        fiscal years 2010 and 2011, subject to subsection (h), the 
        Administrator shall use the amounts made available to carry out 
        this section to provide grants to municipalities and municipal 
        entities under subsection (a)(2)--</DELETED>
                <DELETED>    ``(A) in accordance with the priority 
                criteria described in subsection (b); and</DELETED>
                <DELETED>    ``(B) with additional priority given to 
                proposed projects that involve the use of--</DELETED>
                        <DELETED>    ``(i) nonstructural, low-impact 
                        development;</DELETED>
                        <DELETED>    ``(ii) water conservation, 
                        efficiency, or reuse; or</DELETED>
                        <DELETED>    ``(iii) other decentralized 
                        stormwater or wastewater approaches to minimize 
                        flows into the sewer systems.</DELETED>
        <DELETED>    ``(2) Fiscal year 2012 and thereafter.--For fiscal 
        year 2012 and each fiscal year thereafter, subject to 
        subsection (h), the Administrator shall use the amounts made 
        available to carry out this section to provide grants to States 
        under subsection (a)(1) in accordance with a formula that--
        </DELETED>
                <DELETED>    ``(A) shall be established by the 
                Administrator, after providing notice and an 
                opportunity for public comment; and</DELETED>
                <DELETED>    ``(B) allocates to each State a 
                proportional share of the amounts based on the total 
                needs of the State for municipal combined sewer 
                overflow controls and sanitary sewer overflow controls, 
                as identified in the most recent survey--</DELETED>
                        <DELETED>    ``(i) conducted under section 210; 
                        and</DELETED>
                        <DELETED>    ``(ii) included in a report 
                        required under section 
                        516(b)(1)(B).''.</DELETED>
<DELETED>    (b) Reports.--Section 221(i) of the Federal Water 
Pollution Control Act (33 U.S.C. 1301(i)) is amended in the first 
sentence by striking ``2003'' and inserting ``2011''.</DELETED>

<DELETED>SEC. 111. CRITICAL WATER INFRASTRUCTURE PROJECTS.</DELETED>

<DELETED>    (a) Establishment.--The Administrator shall establish a 
program under which grants are provided to eligible entities for use in 
carrying out projects and activities the primary purpose of which is 
watershed restoration through the protection or improvement of water 
quality.</DELETED>
<DELETED>    (b) Project Selection.--</DELETED>
        <DELETED>    (1) In general.--The Administrator may provide 
        funds under this section to an eligible entity to carry out an 
        eligible project described in paragraph (3).</DELETED>
        <DELETED>    (2) Equitable distribution.--The Administrator 
        shall ensure an equitable distribution of projects under this 
        section, taking into account cost and number of requests for 
        each category listed in paragraph (3).</DELETED>
        <DELETED>    (3) Eligible projects.--A project that is eligible 
        to be carried out using funds provided under this section may 
        include projects that are included in the intended use plan of 
        the State developed in accordance with section 606(c) of the 
        Federal Water Pollution Control Act (33 U.S.C. 
        1386(c)).</DELETED>
<DELETED>    (c) Local Participation.--In prioritizing projects for 
implementation under this section, the Administrator shall consult 
with, and consider the priorities of--</DELETED>
        <DELETED>    (1) affected State and local governments; 
        and</DELETED>
        <DELETED>    (2) public and private entities that are active in 
        watershed planning and restoration.</DELETED>
<DELETED>    (d) Before carrying out any project under this section, 
the Administrator shall enter into an agreement with 1 or more non-
Federal interests that shall require the non-Federal interests--
</DELETED>
        <DELETED>    (1) to pay 45 percent of the total costs of the 
        project, which may include services, materials, supplies, or 
        other in-kind contributions;</DELETED>
        <DELETED>    (2) to provide any land, easements, rights-of-way, 
        and relocations necessary to carry out the project; 
        and</DELETED>
        <DELETED>    (3) to pay 100 percent of any operation, 
        maintenance, repair, replacement, and rehabilitation costs 
        associated with the project.</DELETED>
<DELETED>    (e) Waiver.--The Administrator may waive the requirement 
to pay the non-Federal share of the cost of carrying out an eligible 
activity using funds from a grant provided under this section if the 
Administrator determines that an eligible entity is unable to pay, or 
would experience significant financial hardship if required to pay, the 
non-Federal share.</DELETED>
<DELETED>    (f) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $50,000,000 for each of 
fiscal years 2010 through 2014.</DELETED>

    <DELETED>TITLE II--SAFE DRINKING WATER INFRASTRUCTURE</DELETED>

<DELETED>SEC. 201. DRINKING WATER TECHNICAL ASSISTANCE FOR 
              COMMUNITIES.</DELETED>

<DELETED>    Section 1442(e) of the Safe Drinking Water Act (42 U.S.C. 
300j-1(e)) is amended--</DELETED>
        <DELETED>    (1) in the first sentence, by striking ``The 
        Administrator may provide'' and inserting the 
        following:</DELETED>
        <DELETED>    ``(1) Public water systems.--The Administrator may 
        provide'';</DELETED>
        <DELETED>    (2) in the second sentence, by striking ``Such 
        assistance'' and inserting the following:</DELETED>
        <DELETED>    ``(2) Types of assistance.--Such 
        assistance'';</DELETED>
        <DELETED>    (3) in the third sentence, by striking ``The 
        Administrator shall ensure'' and inserting the 
        following:</DELETED>
        <DELETED>    ``(3) Availability.--The Administrator shall 
        ensure'';</DELETED>
        <DELETED>    (4) in the fourth sentence, by striking ``Each 
        nonprofit'' and inserting the following:</DELETED>
        <DELETED>    ``(4) Requirement applicable to nonprofit 
        organizations.--Each nonprofit''; and</DELETED>
        <DELETED>    (5) by striking the fifth sentence and all that 
        follows and inserting the following:</DELETED>
        <DELETED>    ``(5) Priority.--In providing grants under this 
        section, the Administrator shall give priority to small systems 
        organizations that, as determined by the Administrator, in 
        consultation with the State, are qualified and will be the most 
        effective at assisting small systems.</DELETED>
        <DELETED>    ``(6) Wells and well systems.--</DELETED>
                <DELETED>    ``(A) In general.--The Administrator shall 
                provide grants to nonprofit organizations to provide 
                technical assistance to communities and individuals 
                regarding the design, operation, construction, and 
                maintenance of household wells and small shared well 
                systems that provide drinking water.</DELETED>
                <DELETED>    ``(B) Form of assistance.--Technical 
                assistance referred to in subparagraph (A) may 
                include--</DELETED>
                        <DELETED>    ``(i) training and 
                        education;</DELETED>
                        <DELETED>    ``(ii) operation of a hotline; 
                        and</DELETED>
                        <DELETED>    ``(iii) the conduct of other 
                        activities relating to the design and 
                        construction of household, shared, and small 
                        water well systems in rural areas.</DELETED>
                <DELETED>    ``(C) Priority.--Subject to paragraph (5), 
                in providing grants under this section, the 
                Administrator shall give priority to applicants that, 
                as determined by the Administrator--</DELETED>
                        <DELETED>    ``(i) are qualified; and</DELETED>
                        <DELETED>    ``(ii) have demonstrated 
                        experience in providing similar technical 
                        assistance and in developing similar 
                        projects.</DELETED>
                <DELETED>    ``(D) Authorization of appropriations.--
                There is authorized to be appropriated to carry out 
                this paragraph--</DELETED>
                        <DELETED>    ``(i) $7,000,000 for fiscal year 
                        2010; and</DELETED>
                        <DELETED>    ``(ii) $7,500,000 for each of 
                        fiscal years 2011 through 2014.</DELETED>
        <DELETED>    ``(7) Funding.--</DELETED>
                <DELETED>    ``(A) Authorization of appropriations.--
                There is authorized to be appropriated to the 
                Administrator to carry out this subsection (other than 
                paragraph (6)) $35,000,000 for each of fiscal years 
                2010 through 2014.</DELETED>
                <DELETED>    ``(B) Lobbying expenses.--No portion of 
                any State loan fund established under section 1452 and 
                no portion of any funds made available under this 
                subsection may be used for lobbying expenses.</DELETED>
                <DELETED>    ``(C) Indian tribes.--Of the total amount 
                made available under this section for each fiscal year, 
                3 percent shall be used for technical assistance to 
                public water systems owned or operated by Indian 
                Tribes.''.</DELETED>

<DELETED>SEC. 202. PRECONSTRUCTION WORK.</DELETED>

<DELETED>    Section 1452(a)(2) of the Safe Drinking Water Act (42 
U.S.C. 300j-12(a)(2)) is amended--</DELETED>
        <DELETED>    (1) by designating the first, second, third, 
        fourth, and fifth sentences as subparagraphs (A), (B), (D), 
        (E), and (F), respectively;</DELETED>
        <DELETED>    (2) in subparagraph (B) (as designated by 
        paragraph (1))--</DELETED>
                <DELETED>    (A) by striking ``(not'' and inserting 
                ``(including expenditures for planning, design, and 
                associated preconstruction activities, including 
                activities relating to the siting of the facility, but 
                not''; and</DELETED>
                <DELETED>    (B) by inserting before the period at the 
                end the following: ``or to replace or rehabilitate 
                aging treatment, storage, or distribution facilities of 
                public water systems or provide for capital projects 
                (excluding any expenditure for operations and 
                maintenance) to upgrade the security of public water 
                systems''; and</DELETED>
        <DELETED>    (3) by inserting after subparagraph (B) (as 
        designated by paragraph (1)) the following:</DELETED>
                <DELETED>    ``(C) Sale of bonds.--Funds may also be 
                used by a public water system as a source of revenue 
                (restricted solely to interest earnings of the 
                applicable State loan fund) or security for payment of 
                the principal and interest on revenue or general 
                obligation bonds issued by the State to provide 
                matching funds under subsection (e), if the proceeds of 
                the sale of the bonds will be deposited in the State 
                loan fund.''.</DELETED>

<DELETED>SEC. 203. PRIORITY SYSTEM REQUIREMENTS.</DELETED>

<DELETED>    Section 1452(b)(3) of the Safe Drinking Water Act (42 
U.S.C. 300j-12(b)(3)) is amended--</DELETED>
        <DELETED>    (1) by redesignating subparagraph (B) as 
        subparagraph (D);</DELETED>
        <DELETED>    (2) by striking subparagraph (A) and inserting the 
        following:</DELETED>
                <DELETED>    ``(A) Definition of restructuring.--In 
                this paragraph, the term `restructuring' means changes 
                in operations (including ownership, cooperative 
                partnerships, asset management, consolidation, and 
                alternative water supply).</DELETED>
                <DELETED>    ``(B) Priority system.--An intended use 
                plan shall provide, to the maximum extent practicable, 
                that priority for the use of funds be given to projects 
                that--</DELETED>
                        <DELETED>    ``(i) address the most serious 
                        risk to human health;</DELETED>
                        <DELETED>    ``(ii) are necessary to ensure 
                        compliance with this title (including 
                        requirements for filtration);</DELETED>
                        <DELETED>    ``(iii) assist systems most in 
                        need on a per-household basis according to 
                        State affordability criteria; and</DELETED>
                        <DELETED>    ``(iv) improve the sustainability 
                        of systems.</DELETED>
                <DELETED>    ``(C) Weight given to applications.--After 
                determining project priorities under subparagraph (B), 
                an intended use plan shall provide that the State shall 
                give greater weight to an application for assistance by 
                a community water system if the application includes 
                such information as the State determines to be 
                necessary and contains--</DELETED>
                        <DELETED>    ``(i) an inventory of assets, 
                        including a description of the condition of the 
                        assets;</DELETED>
                        <DELETED>    ``(ii) a schedule for replacement 
                        of assets;</DELETED>
                        <DELETED>    ``(iii) a financing plan that 
                        factors in all lifecycle costs indicating 
                        sources of revenue from ratepayers, grants, 
                        bonds, other loans, and other sources to meet 
                        the costs;</DELETED>
                        <DELETED>    ``(iv) a review of options for 
                        restructuring the public water 
                        system;</DELETED>
                        <DELETED>    ``(v) demonstration of consistency 
                        with State, regional, and municipal watershed 
                        plans;</DELETED>
                        <DELETED>    ``(vi) a water conservation plan 
                        consistent with guidelines developed for those 
                        plans by the Administrator under section 
                        1455(a); and</DELETED>
                        <DELETED>    ``(vii) approaches to improve the 
                        sustainability of the system, including--
                        </DELETED>
                                <DELETED>    ``(I) water efficiency or 
                                conservation;</DELETED>
                                <DELETED>    ``(II) use of reclaimed 
                                water; and</DELETED>
                                <DELETED>    ``(III) actions to 
                                increase energy efficiency.''; 
                                and</DELETED>
        <DELETED>    (3) in subparagraph (D) (as redesignated by 
        paragraph (1)), by striking ``periodically'' and inserting ``at 
        least biennially''.</DELETED>

<DELETED>SEC. 204. AFFORDABILITY.</DELETED>

<DELETED>    Section 1452(d)(3) of the Safe Drinking Water Act (42 
U.S.C. 300j-12(d)(3)) is amended in the first sentence by inserting ``, 
or portion of a service area,'' after ``service area''.</DELETED>

<DELETED>SEC. 205. SAFE DRINKING WATER REVOLVING LOAN FUNDS.</DELETED>

<DELETED>    Section 1452(g) of the Safe Drinking Water Act (42 U.S.C. 
300j-12(g)) is amended--</DELETED>
        <DELETED>    (1) paragraph (2)--</DELETED>
                <DELETED>    (A) in the first sentence, by striking 
                ``4'' and inserting ``6''; and</DELETED>
                <DELETED>    (B) by striking ``1419,'' and all that 
                follows through ``1993.'' and inserting ``1419.''; 
                and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
        <DELETED>    ``(5) Transfer of funds.--</DELETED>
                <DELETED>    ``(A) In general.--The Governor of a State 
                may--</DELETED>
                        <DELETED>    ``(i)(I) reserve not more than the 
                        greater of--</DELETED>
                                <DELETED>    ``(aa) 33 percent of a 
                                capitalization grant made under this 
                                section; or</DELETED>
                                <DELETED>    ``(bb) 33 percent of a 
                                capitalization grant made under section 
                                601 of the Federal Water Pollution 
                                Control Act (33 U.S.C. 1381);</DELETED>
                        <DELETED>    ``(II) add the funds reserved to 
                        any funds provided to the State under section 
                        601 of the Federal Water Pollution Control Act 
                        (33 U.S.C. 1381); and</DELETED>
                        <DELETED>    ``(ii)(I) reserve for any fiscal 
                        year an amount that does not exceed the amount 
                        that may be reserved under clause (i)(I) for 
                        that year from capitalization grants made under 
                        section 601 of that Act (33 U.S.C. 1381); 
                        and</DELETED>
                        <DELETED>    ``(II) add the reserved funds to 
                        any funds provided to the State under this 
                        section.</DELETED>
                <DELETED>    ``(B) State match.--Funds reserved under 
                this paragraph shall not be considered to be a State 
                match of a capitalization grant required under this 
                section or section 602(b) of the Federal Water 
                Pollution Control Act (33 U.S.C. 1382(b)).''.</DELETED>

<DELETED>SEC. 206. OTHER AUTHORIZED ACTIVITIES.</DELETED>

<DELETED>    Section 1452(k)(2)(D) of the Safe Drinking Water Act (42 
U.S.C. 300j-12(k)(2)(D)) is amended by inserting before the period at 
the end the following: ``(including implementation of source water 
protection plans)''.</DELETED>

<DELETED>SEC. 207. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    Section 1452 of the Safe Drinking Water Act (42 U.S.C. 
300j-12) is amended by striking subsection (m) and inserting the 
following:</DELETED>
<DELETED>    ``(m) Authorization of Appropriations.--</DELETED>
        <DELETED>    ``(1) In general.--There are authorized to be 
        appropriated to carry out this section--</DELETED>
                <DELETED>    ``(A) $1,500,000,000 for fiscal year 
                2010;</DELETED>
                <DELETED>    ``(B) $2,000,000,000 for each of fiscal 
                years 2011 and 2012;</DELETED>
                <DELETED>    ``(C) $3,200,000,000 for fiscal year 2013; 
                and</DELETED>
                <DELETED>    ``(D) $6,000,000,000 for fiscal year 
                2014.</DELETED>
        <DELETED>    ``(2) Availability.--Amounts made available under 
        this subsection shall remain available until 
        expended.</DELETED>
        <DELETED>    ``(3) Reservation for needs surveys.--Of the 
        amount made available under paragraph (1) to carry out this 
        section for a fiscal year, the Administrator may reserve not 
        more than $1,000,000 per year to pay the costs of conducting 
        needs surveys under subsection (h).''.</DELETED>

<DELETED>SEC. 208. NEGOTIATION OF CONTRACTS.</DELETED>

<DELETED>    Section 1452 of the Safe Drinking Water Act (42 U.S.C. 
300j-12) is amended by adding at the end the following:</DELETED>
<DELETED>    ``(s) Negotiation of Contracts.--</DELETED>
        <DELETED>    ``(1) In general.--A contract to be carried out 
        using funds directly made available by a capitalization grant 
        under this section for program management, construction 
        management, feasibility studies, preliminary engineering, 
        design, engineering, surveying, mapping, or architectural or 
        related services shall be negotiated in the same manner as--
        </DELETED>
                <DELETED>    ``(A) a contract for architectural and 
                engineering services is negotiated under chapter 11 of 
                title 40, United States Code; or</DELETED>
                <DELETED>    ``(B) an equivalent State qualifications-
                based requirement (as determined by the Governor of the 
                State).</DELETED>
        <DELETED>    ``(2) Exemption for small communities.--Paragraph 
        (1) shall not apply to a contract described in that paragraph 
        for program management, construction management, feasibility 
        studies, preliminary engineering, design, engineering, 
        surveying, mapping, or architectural or related services for a 
        community of 10,000 or fewer individuals.''.</DELETED>

<DELETED>SEC. 209. CRITICAL DRINKING WATER INFRASTRUCTURE 
              PROJECTS.</DELETED>

<DELETED>    (a) Establishment.--Not later than 180 days after the date 
of enactment of this Act, the Administrator shall establish a program 
under which grants are provided to eligible entities for use in 
carrying out projects and activities the primary purpose of which is to 
assist community water systems in meeting the requirements of the Safe 
Drinking Water Act (42 U.S.C. 300f et seq.).</DELETED>
<DELETED>    (b) Project Selection.--A project that is eligible to be 
carried out using funds provided under this section may include 
projects that--</DELETED>
        <DELETED>    (1) develop alternative water sources;</DELETED>
        <DELETED>    (2) provide assistance to small systems; 
        or</DELETED>
        <DELETED>    (3) assist a community water system--</DELETED>
                <DELETED>    (A) to comply with a national primary 
                drinking water regulation; or</DELETED>
                <DELETED>    (B) to mitigate groundwater contamination, 
                including saltwater intrusion.</DELETED>
<DELETED>    (c) Eligible Entities.--An entity eligible to receive a 
grant under this section is--</DELETED>
        <DELETED>    (1) a community water system as defined in section 
        1401 of the Safe Drinking Water Act (42 U.S.C. 300f); 
        or</DELETED>
        <DELETED>    (2) a system that is located in an area governed 
        by an Indian Tribe (as defined in section 1401 of the Safe 
        Drinking Water Act (42 U.S.C. 300f));</DELETED>
<DELETED>    (d) Priority.--In prioritizing projects for implementation 
under this section, the Administrator shall give priority to community 
water systems that--</DELETED>
        <DELETED>    (1) serve a community that, under affordability 
        criteria established by the State under section 1452(d)(3) of 
        the Safe Drinking Water Act (42 U.S.C. 300j-12), is determined 
        by the State to be--</DELETED>
                <DELETED>    (A) a disadvantaged community; 
                or</DELETED>
                <DELETED>    (B) a community that may become a 
                disadvantaged community as a result of carrying out an 
                eligible activity; or</DELETED>
        <DELETED>    (2) serve a community with a population of less 
        than 10,000 individuals.</DELETED>
<DELETED>    (e) Local Participation.--In prioritizing projects for 
implementation under this section, the Administrator shall consult 
with, and consider the priorities of, affected States, Indian Tribes, 
and local governments.</DELETED>
<DELETED>    (f) Cost Sharing.--Before carrying out any project under 
this section, the Administrator shall enter into a binding agreement 
with 1 or more non-Federal interests that shall require the non-Federal 
interests--</DELETED>
        <DELETED>    (1) to pay 45 percent of the total costs of the 
        project, which may include services, materials, supplies, or 
        other in-kind contributions;</DELETED>
        <DELETED>    (2) to provide any land, easements, rights-of-way, 
        and relocations necessary to carry out the project; 
        and</DELETED>
        <DELETED>    (3) to pay 100 percent of any operation, 
        maintenance, repair, replacement, and rehabilitation costs 
        associated with the project.</DELETED>
<DELETED>    (g) Waiver.--The Administrator may waive the requirement 
to pay the non-Federal share of the cost of carrying out an eligible 
activity using funds from a grant provided under this section if the 
Administrator determines that an eligible entity is unable to pay, or 
would experience significant financial hardship if required to pay, the 
non-Federal share.</DELETED>
<DELETED>    (h) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section--</DELETED>
        <DELETED>    (1) $230,000,000 for fiscal year 2010; 
        and</DELETED>
        <DELETED>    (2) $300,000,000 for each of fiscal years 2011 
        through 2014.</DELETED>

<DELETED>SEC. 210. REDUCING LEAD IN DRINKING WATER.</DELETED>

<DELETED>    (a) Definitions.--In this section:</DELETED>
        <DELETED>    (1) Eligible entity.--The term ``eligible entity'' 
        means--</DELETED>
                <DELETED>    (A) a community water system (as defined 
                in section 1401 of the Safe Drinking Water Act (42 
                U.S.C. 300f));</DELETED>
                <DELETED>    (B) a system located in an area governed 
                by an Indian Tribe (as defined in that 
                section);</DELETED>
                <DELETED>    (C) a nontransient noncommunity water 
                system;</DELETED>
                <DELETED>    (D) a qualified nonprofit organization, as 
                determined by the Administrator; and</DELETED>
                <DELETED>    (E) a municipality or State, interstate, 
                or intermunicipal agency.</DELETED>
        <DELETED>    (2) Lead reduction project.--The term ``lead 
        reduction project'' means a project or activity the primary 
        purpose of which is to reduce the level of lead in water for 
        human consumption by--</DELETED>
                <DELETED>    (A) replacement of publicly owned lead 
                service lines;</DELETED>
                <DELETED>    (B) capital costs, testing, planning, or 
                other relevant activities, as determined by the 
                Administrator, to identify and address conditions 
                (including corrosion control) that contribute to 
                increased lead levels in water for human 
                consumption;</DELETED>
                <DELETED>    (C) assistance to low-income homeowners to 
                replace privately owned service lines, pipes, fittings, 
                or fixtures that contain lead; and</DELETED>
                <DELETED>    (D) education of consumers regarding 
                measures to reduce exposure to lead from drinking water 
                or other sources.</DELETED>
        <DELETED>    (3) Low-income.--The term ``low-income'', with 
        respect to an individual provided assistance under this 
        section, has such meaning as may be given the term by the head 
        of the municipality or State, interstate, or intermunicipal 
        agency with jurisdiction over the area to which assistance is 
        provided.</DELETED>
        <DELETED>    (4) Municipality.--The term ``municipality'' 
        means--</DELETED>
                <DELETED>    (A) a city, town, borough, county, parish, 
                district, association, or other public entity 
                established by, or pursuant to, applicable State law; 
                and</DELETED>
                <DELETED>    (B) an Indian tribe (as defined in section 
                4 of the Indian Self-Determination and Education 
                Assistance Act (25 U.S.C. 450b)).</DELETED>
<DELETED>    (b) Grant Program.--</DELETED>
        <DELETED>    (1) Establishment.--Not later than 180 days after 
        the date of enactment of this Act, the Administrator shall 
        establish a grant program to provide assistance to eligible 
        entities for lead reduction projects in the United 
        States.</DELETED>
        <DELETED>    (2) Evaluation.--In providing assistance under 
        this section, the Administrator shall evaluate--</DELETED>
                <DELETED>    (A) whether an eligible entity applying 
                for assistance has taken steps to identify the source 
                of lead in water for human consumption; and</DELETED>
                <DELETED>    (B) the means by which the proposed lead 
                reduction project would reduce lead levels in the 
                applicable water system.</DELETED>
        <DELETED>    (3) Priority application.--In providing grants 
        under this subsection, the Administrator shall give priority to 
        an eligible entity that--</DELETED>
                <DELETED>    (A) carries out a lead reduction project 
                at a public water system or nontransient noncommunity 
                water system that has exceeded the lead action level 
                established by the Administrator at any time during the 
                3-year period preceding the date of submission of the 
                application of the eligible entity;</DELETED>
                <DELETED>    (B) addresses lead levels in water for 
                human consumption at a school, daycare, or other 
                facility that primarily serves children or another 
                vulnerable human subpopulation; or</DELETED>
                <DELETED>    (C) addresses such priority criteria as 
                the Administrator may establish, consistent with the 
                goal of reducing lead levels of concern.</DELETED>
        <DELETED>    (4) Cost sharing.--</DELETED>
                <DELETED>    (A) In general.--Subject to subparagraph 
                (B), the non-Federal share of the total cost of a 
                project funded by a grant under this subsection shall 
                be not less than 20 percent.</DELETED>
                <DELETED>    (B) Waiver.--The Administrator may reduce 
                or eliminate the non-Federal share under subparagraph 
                (A) for reasons of affordability, as the Administrator 
                determines to be appropriate.</DELETED>
        <DELETED>    (5) Low-income assistance.--</DELETED>
                <DELETED>    (A) In general.--Subject to subparagraphs 
                (B) and (C), an eligible entity may use a grant 
                provided under this subsection to provide assistance to 
                low-income homeowners to carry out lead reduction 
                projects.</DELETED>
                <DELETED>    (B) Low-income assistance cap.--Of the 
                funds made available to carry out this section, not 
                more than $5,000,000 may be allocated to provide 
                assistance to low-income homeowners under this 
                paragraph for any fiscal year.</DELETED>
                <DELETED>    (C) Limitation.--The amount of a grant 
                provided to a low-income homeowner under this paragraph 
                shall not exceed $5,000.</DELETED>
        <DELETED>    (6) Special consideration for lead service line 
        replacement.--In carrying out lead service line replacement 
        using a grant under this subsection, an eligible entity shall--
        </DELETED>
                <DELETED>    (A) notify customers of the replacement of 
                any publicly owned portion of the lead service 
                line;</DELETED>
                <DELETED>    (B) offer to replace the privately owned 
                portion of the lead service line at the cost of 
                replacement;</DELETED>
                <DELETED>    (C) recommend measures to avoid exposure 
                to short-term increases in lead levels following a 
                partial lead service line replacement; and</DELETED>
                <DELETED>    (D) demonstrate that the eligible entity 
                has considered multiple options for reducing lead in 
                drinking water, including an evaluation of options for 
                corrosion control.</DELETED>
<DELETED>    (c) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $60,000,000 for each of 
fiscal years 2010 through 2014.</DELETED>

              <DELETED>TITLE III--MISCELLANEOUS</DELETED>

<DELETED>SEC. 301. DEFINITION OF ACADEMY.</DELETED>

<DELETED>    In this title, the term ``Academy'' means the National 
Academy of Sciences.</DELETED>

<DELETED>SEC. 302. PROGRAM FOR WATER QUALITY ENHANCEMENT AND 
              MANAGEMENT.</DELETED>

<DELETED>    (a) Innovative Technology and Alternative Approaches Grant 
Program.--</DELETED>
        <DELETED>    (1) In general.--Not later than 2 years after the 
        date of enactment of this Act, the Administrator shall 
        establish a program to provide grants to, and enter into 
        contracts and cooperative agreements with, research 
        institutions, institutions of higher education, National 
        Laboratories, and other appropriate entities (including 
        consortia of such institutions and entities), through a 
        competitive process, in accordance with the plan developed 
        under subsection (b), for research regarding, and development 
        of the use of, innovative and alternative technologies to 
        improve water quality, drinking water supply, or water use 
        efficiency and conservation.</DELETED>
        <DELETED>    (2) Types of projects.--In carrying out this 
        subsection, the Administrator may select projects relating to 
        such matters as innovative or alternative technologies, 
        approaches, practices, or methods--</DELETED>
                <DELETED>    (A) to increase the effectiveness and 
                efficiency of water and wastewater infrastructure 
                through the use of integrated water resource 
                management;</DELETED>
                <DELETED>    (B) to increase the effectiveness and 
                efficiency of public water systems, including--
                </DELETED>
                        <DELETED>    (i) source water 
                        protection;</DELETED>
                        <DELETED>    (ii) water use 
                        reduction;</DELETED>
                        <DELETED>    (iii) water collection, storage, 
                        and treatment and reuse of rainwater, 
                        stormwater, and graywater;</DELETED>
                        <DELETED>    (iv) identification of behavioral, 
                        social, and economic barriers to achieving 
                        greater water use efficiency;</DELETED>
                        <DELETED>    (v) use of watershed planning 
                        directed toward water quality, conservation, 
                        and supply;</DELETED>
                        <DELETED>    (vi) actions to reduce energy 
                        consumption;</DELETED>
                        <DELETED>    (vii) water treatment;</DELETED>
                        <DELETED>    (viii) water distribution and 
                        wastewater collection systems;</DELETED>
                        <DELETED>    (ix) desalination; and</DELETED>
                        <DELETED>    (x) water security;</DELETED>
                <DELETED>    (C) to encourage the use of innovative or 
                alternative technologies or approaches relating to 
                water supply or availability;</DELETED>
                <DELETED>    (D) to increase the effectiveness and 
                efficiency of new and existing treatment works, 
                including--</DELETED>
                        <DELETED>    (i) methods of collecting, 
                        treating, dispersing, reusing, reclaiming, and 
                        recycling wastewater;</DELETED>
                        <DELETED>    (ii) system design;</DELETED>
                        <DELETED>    (iii) nonstructural 
                        alternatives;</DELETED>
                        <DELETED>    (iv) decentralized 
                        approaches;</DELETED>
                        <DELETED>    (v) stormwater and wastewater 
                        reuse;</DELETED>
                        <DELETED>    (vi) water use efficiency and 
                        conservation;</DELETED>
                        <DELETED>    (vii) actions to reduce energy 
                        consumption;</DELETED>
                        <DELETED>    (viii) technologies to extract 
                        energy from wastewater; and</DELETED>
                        <DELETED>    (ix) wastewater 
                        security;</DELETED>
                <DELETED>    (E) to increase the effectiveness and 
                efficiency of municipal separate storm sewer systems 
                and combined sewer systems, including through the use 
                of soil and vegetation or other permeable 
                materials;</DELETED>
                <DELETED>    (F) to promote new water treatment 
                technologies and management approaches, including 
                commercialization and dissemination strategies for 
                adoption of innovative water, wastewater, and 
                stormwater technologies and management approaches or 
                low-impact development technologies in the homebuilding 
                industry; or</DELETED>
                <DELETED>    (G) to maintain a clearinghouse of 
                technologies and management approaches developed under 
                this subsection and subsections (c) and (d) at a 
                research consortium or institute or other appropriate 
                organization, as determined by the 
                Administrator.</DELETED>
        <DELETED>    (3) Factors for consideration.--In planning and 
        implementing the program under this subsection, the 
        Administrator shall take into consideration--</DELETED>
                <DELETED>    (A) research needs identified by water 
                resource managers, State and local governments, and 
                other interested parties; and</DELETED>
                <DELETED>    (B) technologies and processes likely to 
                achieve the greatest increases in water quality, 
                drinking water supply, or water use efficiency and 
                conservation.</DELETED>
        <DELETED>    (4) Minority-serving institutions.--In carrying 
        out the program under this subsection, the Administrator--
        </DELETED>
                <DELETED>    (A) may provide extramural grants to 
                institutions of higher education; and</DELETED>
                <DELETED>    (B) shall encourage participation by 
                minority-serving institutions.</DELETED>
<DELETED>    (b) Strategic Research Plan.--</DELETED>
        <DELETED>    (1) In general.--Not later than 180 days after the 
        date of enactment of this Act, the Administrator, in 
        coordination with the heads of other appropriate Federal 
        departments and agencies, shall develop a strategic research 
        plan for the grant program under subsection (a).</DELETED>
        <DELETED>    (2) Requirements.--</DELETED>
                <DELETED>    (A) Coordination.--The plan under 
                paragraph (1) shall be carried out, to the maximum 
                extent practicable, in coordination with other research 
                and development strategic plans of the Environmental 
                Protection Agency.</DELETED>
                <DELETED>    (B) Contents.--The plan under paragraph 
                (1) shall--</DELETED>
                        <DELETED>    (i) describe, in outline form, 
                        research goals and priorities relating to an 
                        agenda of water quality, drinking water supply, 
                        and water use efficiency and conservation, 
                        including--</DELETED>
                                <DELETED>    (I) developing innovative 
                                water supply-enhancing processes and 
                                technologies;</DELETED>
                                <DELETED>    (II) improving existing 
                                processes and technologies, including 
                                wastewater treatment, desalination, and 
                                groundwater recharge and recovery 
                                schemes;</DELETED>
                                <DELETED>    (III) improving the 
                                effectiveness and efficiency of 
                                nontraditional wastewater treatment 
                                practices, including nonstructural 
                                alternatives, low-impact development 
                                techniques, and decentralized 
                                approaches; and</DELETED>
                                <DELETED>    (IV) exploring concepts 
                                that extract energy from 
                                wastewater;</DELETED>
                        <DELETED>    (ii)(I) identify current Federal 
                        water-related research efforts directed toward 
                        achieving the goals of improving water quality, 
                        water use efficiency, or water conservation or 
                        expanding water supply; and</DELETED>
                        <DELETED>    (II) describe the means by which 
                        those efforts are coordinated with the program 
                        established under subsection (a) in order to 
                        leverage resources and avoid 
                        duplication;</DELETED>
                        <DELETED>    (iii) take into consideration the 
                        public health and environmental quality impacts 
                        and cost-effectiveness of each relevant 
                        technology and approach; and</DELETED>
                        <DELETED>    (iv) take into consideration and 
                        incorporate, as appropriate, recommendations 
                        contained in reports and studies conducted by 
                        Federal departments and agencies, the National 
                        Research Council, the National Science and 
                        Technology Council, and other appropriate 
                        entities.</DELETED>
        <DELETED>    (3) Science advisory board review.--The 
        Administrator shall submit the plan under paragraph (1) to the 
        Science Advisory Board of the Environmental Protection Agency 
        for review.</DELETED>
        <DELETED>    (4) Revisions.--The plan under paragraph (1) shall 
        be revised and amended as necessary to reflect updated 
        scientific findings and national research priorities.</DELETED>
<DELETED>    (c) Municipalities Grant Program.--</DELETED>
        <DELETED>    (1) Definition of municipality.--In this 
        subsection, the term ``municipality'' means--</DELETED>
                <DELETED>    (A) a city, town, borough, county, parish, 
                district, association, authority, or other public 
                entity established by, or pursuant to, State law; 
                or</DELETED>
                <DELETED>    (B) an Indian tribe (as defined in section 
                4 of the Indian Self-Determination and Education 
                Assistance Act (25 U.S.C. 450b)).</DELETED>
        <DELETED>    (2) Establishment.--Not later than 90 days after 
        the date of publication of the initial report under subsection 
        (e)(2), the Administrator shall establish a nationwide 
        demonstration grant program--</DELETED>
                <DELETED>    (A) to promote innovations in technology 
                and alternative approaches to water quality management 
                or water supply developed under subsection (a); 
                and</DELETED>
                <DELETED>    (B) to reduce costs to municipalities 
                incurred in complying with the Federal Water Pollution 
                Control Act (33 U.S.C. 1251 et seq.) and the Safe 
                Drinking Water Act (42 U.S.C. 300f et seq.) through the 
                approaches and technologies developed under subsection 
                (a).</DELETED>
        <DELETED>    (3) Scope.--The demonstration grant program shall 
        consist of up to 10 projects each year, to be carried out in 
        municipalities selected by the Administrator under paragraph 
        (5).</DELETED>
        <DELETED>    (4) Applications.--A municipality that seeks to 
        participate in the demonstration grant program established 
        under this subsection shall submit to the Administrator a plan 
        that--</DELETED>
                <DELETED>    (A) is developed in coordination with--
                </DELETED>
                        <DELETED>    (i) the agencies of the State 
                        having jurisdiction over water quality and 
                        water supply matters; and</DELETED>
                        <DELETED>    (ii) interested stakeholders, 
                        including institutions of higher education and 
                        related research institutions;</DELETED>
                <DELETED>    (B) describes water impacts specific to 
                urban or rural areas;</DELETED>
                <DELETED>    (C) includes a strategy under which the 
                municipality, through participation in the 
                demonstration grant program, could effectively--
                </DELETED>
                        <DELETED>    (i) address water quality or water 
                        supply problems; and</DELETED>
                        <DELETED>    (ii) achieve the water quality 
                        goals that--</DELETED>
                                <DELETED>    (I) could be achieved 
                                using more traditional methods; 
                                and</DELETED>
                                <DELETED>    (II) are required under 
                                the Federal Water Pollution Control Act 
                                (33 U.S.C. 1251 et seq.) or the Safe 
                                Drinking Water Act (42 U.S.C. 300f et 
                                seq.); and</DELETED>
                <DELETED>    (D) includes a schedule for achieving the 
                water quality, water supply, or water use efficiency 
                and conservation goals of the municipality.</DELETED>
        <DELETED>    (5) Categories of projects.--</DELETED>
                <DELETED>    (A) In general.--In carrying out the 
                demonstration grant program, the Administrator shall 
                provide grants for--</DELETED>
                        <DELETED>    (i) projects relating to water 
                        supply, water quality, or water use efficiency 
                        and conservation matters described in 
                        subsection (a)(2); and</DELETED>
                        <DELETED>    (ii) subject to subparagraph (B), 
                        not less than 2 projects for the incorporation 
                        into a building of the most current water use 
                        efficiency and conservation technologies and 
                        designs.</DELETED>
                <DELETED>    (B) Projects for incorporation.--
                </DELETED>
                        <DELETED>    (i) Incremental cost limitation.--
                        A grant provided under subparagraph (A)(ii) may 
                        be used only to pay the incremental costs of 
                        incorporation into a building of a water use 
                        efficiency and conservation technology or 
                        design.</DELETED>
                        <DELETED>    (ii) Types of buildings.--Of the 
                        projects for which grants are provided under 
                        subparagraph (A)(ii)--</DELETED>
                                <DELETED>    (I) at least 1 shall be 
                                for a residential building; 
                                and</DELETED>
                                <DELETED>    (II) at least 1 shall be 
                                for a commercial building.</DELETED>
                        <DELETED>    (iii) Public availability.--The 
                        design of each building for which a grant is 
                        provided under subparagraph (A)(ii) shall be 
                        made available to the public, and each such 
                        building shall be accessible to the public for 
                        tours and educational purposes.</DELETED>
        <DELETED>    (6) Responsibilities of administrator.--In 
        providing grants for projects under this subsection, the 
        Administrator shall--</DELETED>
                <DELETED>    (A) ensure, to the maximum extent 
                practicable, that--</DELETED>
                        <DELETED>    (i) the demonstration grant 
                        program under this subsection includes a 
                        variety of projects with respect to--</DELETED>
                                <DELETED>    (I) geographical 
                                distribution;</DELETED>
                                <DELETED>    (II) innovative 
                                technologies used for the projects; 
                                and</DELETED>
                                <DELETED>    (III) nontraditional 
                                approaches (including low-impact 
                                development technologies) used for the 
                                projects; and</DELETED>
                        <DELETED>    (ii) each category of project 
                        described in paragraph (5) is adequately 
                        represented;</DELETED>
                <DELETED>    (B) give higher priority to projects 
                that--</DELETED>
                        <DELETED>    (i) address multiple problems; 
                        and</DELETED>
                        <DELETED>    (ii) are regionally 
                        applicable;</DELETED>
                <DELETED>    (C) ensure, to the maximum extent 
                practicable, that at least 1 community having a 
                population of 10,000 or fewer individuals receives a 
                grant for each fiscal year; and</DELETED>
                <DELETED>    (D) ensure that, for each fiscal year, no 
                municipality receives more than 25 percent of the total 
                amount of funds made available for the fiscal year to 
                provide grants under this subsection.</DELETED>
        <DELETED>    (7) Cost sharing.--</DELETED>
                <DELETED>    (A) In general.--Except as provided in 
                subparagraph (B), the non-Federal share of the total 
                cost of a project funded by a grant under this 
                subsection shall be not less than 20 percent.</DELETED>
                <DELETED>    (B) Waiver.--The Administrator may reduce 
                or eliminate the non-Federal share of the cost of a 
                project for reasons of affordability.</DELETED>
<DELETED>    (d) Incorporation of Results and Information.--</DELETED>
        <DELETED>    (1) Technology transfer.--The Administrator, 
        taking into consideration the results of the projects carried 
        out using grants under subsections (a) and (c), shall--
        </DELETED>
                <DELETED>    (A) facilitate the adoption of 
                technologies and processes to promote increased water 
                quality, drinking water supply, and water use 
                efficiency and conservation; and</DELETED>
                <DELETED>    (B) collect and disseminate information, 
                including through the establishment of a publicly 
                accessible clearinghouse, regarding those technologies 
                and processes, including information on--</DELETED>
                        <DELETED>    (i) incentives and impediments to 
                        development and commercialization;</DELETED>
                        <DELETED>    (ii) best practices; and</DELETED>
                        <DELETED>    (iii) anticipated increases in 
                        water quality, drinking water supply, and water 
                        use efficiency and conservation resulting from 
                        the implementation of specific technologies and 
                        processes.</DELETED>
        <DELETED>    (2) Incorporation of results and information.--To 
        the maximum extent practicable, the Administrator shall 
        incorporate the results of, and information obtained from, 
        successful projects under this section into other programs 
        administered by the Administrator.</DELETED>
<DELETED>    (e) Reports.--</DELETED>
        <DELETED>    (1) Reports from grant recipients.--A recipient of 
        a grant under this section shall submit to the Administrator, 
        on the date of completion of a project of the recipient and on 
        each of the dates that is 1, 2, and 3 years after that date, a 
        report that describes the effectiveness of the 
        project.</DELETED>
        <DELETED>    (2) Reports to congress.--Not later than 2 years 
        after the date of enactment of this Act, and not less 
        frequently than once every 2 years thereafter, the 
        Administrator shall submit to the Committee on Environment and 
        Public Works of the Senate and the Committees on Transportation 
        and Infrastructure and Energy and Commerce of the House of 
        Representatives a report describing--</DELETED>
                <DELETED>    (A) the findings of each recipient of a 
                grant under subsection (a) with respect to the 
                identification of any potential new technology or 
                management approach developed by the recipient; 
                and</DELETED>
                <DELETED>    (B) the status and results of the grant 
                program under subsection (c).</DELETED>
<DELETED>    (f) Water Management Study and Report.--</DELETED>
        <DELETED>    (1) Definitions.--In this subsection:</DELETED>
                <DELETED>    (A) Low-impact approach.--The term ``low-
                impact approach'' means a strategy that manages 
                rainfall at the source using decentralized microscale 
                controls to mimic the predevelopment hydrology of the 
                relevant site by using a design technique that 
                infiltrates, filters, stores, evaporates, and detains 
                runoff close to the source.</DELETED>
                <DELETED>    (B) Soft path approach.--The term ``soft 
                path approach'' means a general framework that 
                encompasses--</DELETED>
                        <DELETED>    (i) increased efficiency of water 
                        use;</DELETED>
                        <DELETED>    (ii) integration of water supply, 
                        wastewater treatment, and stormwater management 
                        systems; and</DELETED>
                        <DELETED>    (iii) protection, restoration, and 
                        effective use of the natural capacities of 
                        ecosystems to provide clean water.</DELETED>
        <DELETED>    (2) Study.--</DELETED>
                <DELETED>    (A) In general.--Not later than 60 days 
                after the date of enactment of this Act, the 
                Administrator shall enter into an arrangement with the 
                National Academy of Sciences under which the Academy 
                shall conduct a study, by not later than 2 years after 
                that date, of innovative, effective, and systematic 
                approaches for the management of water supply, 
                wastewater, and stormwater.</DELETED>
                <DELETED>    (B) Contents.--The study shall--</DELETED>
                        <DELETED>    (i) be based on and enhance, to 
                        the maximum extent practicable, relevant 
                        studies previously conducted by the 
                        Academy;</DELETED>
                        <DELETED>    (ii) focus in particular on soft-
                        path approaches and low-impact approaches to 
                        the management described in subparagraph 
                        (A);</DELETED>
                        <DELETED>    (iii) take into consideration the 
                        costs of each approach analyzed by the 
                        study;</DELETED>
                        <DELETED>    (iv) examine and compare the state 
                        of research, technology development, and 
                        emerging practices in other developed and 
                        developing countries with those in the United 
                        States;</DELETED>
                        <DELETED>    (v) identify and evaluate relevant 
                        system approaches for comprehensive water 
                        management, including the interrelationship of 
                        water systems with other major systems, such as 
                        energy and transportation systems;</DELETED>
                        <DELETED>    (vi) identify priority research 
                        and development needs; and</DELETED>
                        <DELETED>    (vii) assess implementation needs 
                        and barriers.</DELETED>
                <DELETED>    (C) Authorization of appropriations.--
                There is authorized to be appropriated to carry out 
                this paragraph $1,000,000 for the period of fiscal 
                years 2010 through 2012.</DELETED>
        <DELETED>    (3) Report.--</DELETED>
                <DELETED>    (A) In general.--Not later than 3 years 
                after the date of enactment of this Act, the 
                Administrator shall submit to the Committee on 
                Environment and Public Works of the Senate and the 
                Committee on Science and Technology of the House of 
                Representatives a report describing the key findings of 
                the study under paragraph (2).</DELETED>
                <DELETED>    (B) Inclusions.--The report under 
                subparagraph (A) shall include--</DELETED>
                        <DELETED>    (i) an evaluation of relevant 
                        challenges and opportunities; and</DELETED>
                        <DELETED>    (ii) recommendations for 
                        innovative and integrated solutions for use as 
                        a practical reference by water managers, 
                        planners, developers, scientists, engineers, 
                        nongovernmental organizations, Federal 
                        departments and agencies, and 
                        regulators.</DELETED>
<DELETED>    (g) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $40,000,000 for each of 
fiscal years 2010 through 2014.</DELETED>

<DELETED>SEC. 303. AGRICULTURAL WATERSHED SUSTAINABILITY TECHNOLOGY 
              GRANT PROGRAM.</DELETED>

<DELETED>    (a) Definitions.--In this section:</DELETED>
        <DELETED>    (1) Agricultural commodity.--The term 
        ``agricultural commodity'' means--</DELETED>
                <DELETED>    (A) agricultural, horticultural, 
                viticultural, and dairy products;</DELETED>
                <DELETED>    (B) livestock and the products of 
                livestock;</DELETED>
                <DELETED>    (C) the products of poultry and bee 
                raising;</DELETED>
                <DELETED>    (D) the products of forestry; 
                and</DELETED>
                <DELETED>    (E) other commodities raised or produced 
                on agricultural sites, as determined to be appropriate 
                by the Secretary of Agriculture.</DELETED>
        <DELETED>    (2) Agricultural project.--The term ``agricultural 
        project'' means an agricultural watershed sustainability 
        technology pilot project that, as determined by the 
        Administrator--</DELETED>
                <DELETED>    (A) is carried out at an agricultural 
                site;</DELETED>
                <DELETED>    (B)(i) achieves demonstrable improvements 
                in water quality that meet or exceed those mandated by 
                statutory or regulatory requirements; or</DELETED>
                <DELETED>    (ii) improves water use efficiency; 
                and</DELETED>
                <DELETED>    (C) will not substantially adversely 
                affect agricultural commodity production, yield, 
                profitability, or any other long-term environmental 
                medium, including air and groundwater 
                resources.</DELETED>
        <DELETED>    (3) Agricultural site.--The term ``agricultural 
        site'' means a farming or ranching operation of a producer in 
        the United States.</DELETED>
        <DELETED>    (4) Producer.--The term ``producer'' means any 
        person or group of persons (including an irrigation district 
        and a drainage district) engaged in the production and sale of 
        an agricultural commodity that owns, or shares the ownership 
        and risk of loss of, the agricultural commodity.</DELETED>
        <DELETED>    (5) Revolving fund.--The term ``revolving fund'' 
        means an agricultural watershed sustainability technology 
        revolving fund--</DELETED>
                <DELETED>    (A) that is established by a State using 
                amounts provided under subsection (b)(1);</DELETED>
                <DELETED>    (B) that is maintained and credited with 
                repayments; and</DELETED>
                <DELETED>    (C) the balance of which shall be 
                available in perpetuity for providing financial 
                assistance.</DELETED>
<DELETED>    (b) Grants for Agricultural State Revolving Funds.--
</DELETED>
        <DELETED>    (1) In general.--As soon as practicable after the 
        date of enactment of this section, the Administrator shall 
        provide to each eligible State described in paragraph (2) 1 or 
        more capitalization grants, that cumulatively equal no more 
        than $1,000,000 per State, for use in establishing, within an 
        agency of the State having jurisdiction over agriculture or 
        environmental quality, an agricultural watershed sustainability 
        technology revolving fund.</DELETED>
        <DELETED>    (2) Eligible states.--An eligible State referred 
        to in paragraph (1) is a State that agrees, prior to receipt of 
        a capitalization grant under paragraph (1)--</DELETED>
                <DELETED>    (A) to establish, and deposit the funds 
                from the grant in, a revolving fund;</DELETED>
                <DELETED>    (B) to provide, at a minimum, a State 
                share in an amount equal to 20 percent of the 
                capitalization grant;</DELETED>
                <DELETED>    (C) to use amounts in the revolving fund 
                to make loans to producers in accordance with 
                subsection (c); and</DELETED>
                <DELETED>    (D) to return amounts in the revolving 
                fund if no loan applications are granted within 2 years 
                of the receipt of the initial capitalization 
                grant.</DELETED>
<DELETED>    (c) Loans to Producers.--</DELETED>
        <DELETED>    (1) Use of funds.--A State that establishes a 
        revolving fund under subsection (b)(2) shall use amounts in the 
        revolving fund to provide loans to producers for use in 
        designing and constructing agricultural projects.</DELETED>
        <DELETED>    (2) Maximum amount of loan.--The amount of a loan 
        made to a producer using funds from a revolving fund shall not 
        exceed $250,000, in the aggregate, for all agricultural 
        projects serving an agricultural site of the 
        producer.</DELETED>
        <DELETED>    (3) Conditions on loans.--A loan made to a 
        producer using funds from a revolving fund shall--</DELETED>
                <DELETED>    (A) have an interest rate that is not more 
                than the market interest rate, including an interest-
                free loan; and</DELETED>
                <DELETED>    (B) be repaid to the revolving fund not 
                later than 20 years after the date on which funds are 
                initially disbursed.</DELETED>
<DELETED>    (d) Requirements for Producers.--</DELETED>
        <DELETED>    (1) In general.--A producer that seeks to receive 
        a loan from a revolving fund shall--</DELETED>
                <DELETED>    (A) submit to the State within the 
                jurisdiction of which the agricultural site of the 
                producer is located an application that--</DELETED>
                        <DELETED>    (i) contains such information as 
                        the State may require; and</DELETED>
                        <DELETED>    (ii) demonstrates, to the 
                        satisfaction of the State, that each project 
                        proposed to be carried out with funds from the 
                        loan is an agricultural project; and</DELETED>
                <DELETED>    (B) agree to expend all funds from a loan 
                in an expeditious and timely manner, as determined by 
                the State.</DELETED>
        <DELETED>    (2) Maximum percentage of agricultural project 
        cost.--Subject to subsection (c)(2), a producer that receives a 
        loan from a revolving fund may use funds from the loan to pay 
        up to 100 percent of the cost of carrying out an agricultural 
        project.</DELETED>
<DELETED>    (e) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $50,000,000.</DELETED>

<DELETED>SEC. 304. STATE REVOLVING FUND REVIEW PROCESS.</DELETED>

<DELETED>    As soon as practicable after the date of enactment of this 
Act, the Administrator shall--</DELETED>
        <DELETED>    (1) consult with States, utilities, nonprofit 
        organizations, and other Federal agencies providing financial 
        assistance to identify ways to expedite and improve the 
        application and review process, for the provision of assistance 
        from--</DELETED>
                <DELETED>    (A) the State water pollution control 
                revolving funds established under title VI of the 
                Federal Water Pollution Control Act (33 U.S.C. 1381 et 
                seq.); and</DELETED>
                <DELETED>    (B) the State drinking water treatment 
                revolving loan funds established under section 1452 of 
                the Safe Drinking Water Act (42 U.S.C. 300j-
                12);</DELETED>
        <DELETED>    (2) in carrying out this section, the 
        Administrator shall consider the needs of small treatment works 
        (as defined by section 222 of the Federal Water Pollution 
        Control Act and small public water systems (as described in 
        section 1433(d) of the Safe Drinking Water Act (42 U.S.C. 300i-
        2(d));</DELETED>
        <DELETED>    (3) take such administrative action as is 
        necessary to expedite and improve the process as the 
        Administrator has authority to take under existing 
        law;</DELETED>
        <DELETED>    (4) collect information relating to innovative 
        approaches taken by any State to simplify the application 
        process of the State, and provide the information to each 
        State; and</DELETED>
        <DELETED>    (5) submit to Congress a report that, based on the 
        information identified under paragraph (1), contains 
        recommendations for legislation to facilitate further 
        streamlining and improvement of the process.</DELETED>

<DELETED>SEC. 305. COST OF SERVICE STUDY.</DELETED>

<DELETED>    (a) In General.--Not later than 2 years after the date of 
enactment of this Act, the Administrator shall enter an arrangement 
with the Academy under which the Academy shall complete and provide to 
the Administrator the results of a study of the means by which public 
water systems and treatment works selected by the Academy in accordance 
with subsection (c) meet the costs associated with operations, 
maintenance, capital replacement, and regulatory 
requirements.</DELETED>
<DELETED>    (b) Required Elements.--</DELETED>
        <DELETED>    (1) Affordability.--The study shall, at a 
        minimum--</DELETED>
                <DELETED>    (A) determine whether the rates at public 
                water systems and treatment works for communities 
                included in the study were established using a full-
                cost pricing model;</DELETED>
                <DELETED>    (B) if a full-cost pricing model was not 
                used, identify any incentive rate systems that have 
                been successful in significantly reducing--</DELETED>
                        <DELETED>    (i) per capita water 
                        demand;</DELETED>
                        <DELETED>    (ii) the volume of wastewater 
                        flows;</DELETED>
                        <DELETED>    (iii) the volume of stormwater 
                        runoff; or</DELETED>
                        <DELETED>    (iv) the quantity of pollution 
                        generated by stormwater;</DELETED>
                <DELETED>    (C) identify a set of best industry 
                practices that public water systems and treatment works 
                may use in establishing a rate structure that--
                </DELETED>
                        <DELETED>    (i) adequately addresses the true 
                        cost of services provided to consumers by 
                        public water systems and treatment works, 
                        including infrastructure replacement;</DELETED>
                        <DELETED>    (ii) encourages water 
                        conservation; and</DELETED>
                        <DELETED>    (iii) takes into consideration the 
                        needs of disadvantaged individuals and 
                        communities, as identified by the 
                        Administrator;</DELETED>
                <DELETED>    (D) identify existing standards for 
                affordability and the manner in which those standards 
                are determined and defined;</DELETED>
                <DELETED>    (E) determine the manner in which 
                affordability varies with respect to communities of 
                different sizes and in different regions; and</DELETED>
                <DELETED>    (F) determine the extent to which 
                affordability affects the decision of a community to 
                increase public water system and treatment works rates 
                (including the decision relating to the percentage by 
                which those rates should be increased).</DELETED>
        <DELETED>    (2) Disadvantaged communities.--The study shall, 
        at a minimum--</DELETED>
                <DELETED>    (A) survey a cross-section of States 
                representing different sizes, demographics, and 
                geographical regions;</DELETED>
                <DELETED>    (B) describe, for each State described in 
                subparagraph (A), the definition of ``disadvantaged 
                community'' used in the State in carrying out projects 
                and activities under the Safe Drinking Water Act (42 
                U.S.C. 300f et seq.);</DELETED>
                <DELETED>    (C) review other means of identifying the 
                meaning of the term ``disadvantaged'', as that term 
                applies to communities;</DELETED>
                <DELETED>    (D) determine which factors and 
                characteristics are required for a community to be 
                considered ``disadvantaged''; and</DELETED>
                <DELETED>    (E) evaluate the degree to which factors 
                such as a reduction in the tax base over a period of 
                time, a reduction in population, the loss of an 
                industrial base, and the existence of areas of 
                concentrated poverty are taken into account in 
                determining whether a community is a disadvantaged 
                community.</DELETED>
<DELETED>    (c) Selection of Communities.--The Academy shall select 
communities, the public water system and treatment works rate 
structures of which are to be studied under this section, that include 
a cross-section of communities representing various populations, income 
levels, demographics, and geographical regions.</DELETED>
<DELETED>    (d) Use of Results of Study.--On receipt of the results of 
the study, the Administrator shall--</DELETED>
        <DELETED>    (1) submit the study to Congress;</DELETED>
        <DELETED>    (2) submit a report that describes the results of 
        the study; and</DELETED>
        <DELETED>    (3) make the results available to treatment works 
        and public water systems for use by the publicly owned 
        treatment works and public water systems, on a voluntary basis, 
        in determining whether 1 or more new approaches may be 
        implemented at facilities of the publicly owned treatment works 
        and public water systems.</DELETED>
<DELETED>    (e) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $1,000,000 for each of 
fiscal years 2010 and 2014.</DELETED>

<DELETED>SEC. 306. EFFECTIVE UTILITY MANAGEMENT STRATEGIES.</DELETED>

<DELETED>    (a) Definitions.--In this section:</DELETED>
        <DELETED>    (1) Effective utility management strategy.--The 
        term ``effective utility management strategy'' means a strategy 
        for the operation and management of a utility that, as 
        determined by the Administrator, incorporates the following 
        attributes:</DELETED>
                <DELETED>    (A) Product quality.</DELETED>
                <DELETED>    (B) Stakeholder understanding and 
                support.</DELETED>
                <DELETED>    (C) Customer satisfaction.</DELETED>
                <DELETED>    (D) Employee development.</DELETED>
                <DELETED>    (E) Operational optimization.</DELETED>
                <DELETED>    (F) Financial viability.</DELETED>
                <DELETED>    (G) Infrastructure stability.</DELETED>
                <DELETED>    (H) Operational resiliency.</DELETED>
                <DELETED>    (I) Community sustainability.</DELETED>
                <DELETED>    (J) Water resource adequacy.</DELETED>
        <DELETED>    (2) Utility.--The term ``utility'' means--
        </DELETED>
                <DELETED>    (A) a treatment works (as defined in 
                section 212 of the Federal Water Pollution Control Act 
                (33 U.S.C. 1292)); and</DELETED>
                <DELETED>    (B) a public water system (as defined in 
                section 1401 of the Safe Drinking Water Act (42 U.S.C. 
                300f)).</DELETED>
<DELETED>    (b) Action by Administrator.--The Administrator may carry 
out training programs, provide technical assistance, and disseminate 
information regarding effective utility management strategies, 
including by--</DELETED>
        <DELETED>    (1) providing seminars and workshops (including 
        electronic-based seminars and workshops), conferences, and 
        other educational programs and developing curricula to advance 
        effective utility management strategies;</DELETED>
        <DELETED>    (2) offering support and advice (including 
        financial, operational, and management advice) to utility 
        operators and managers regarding effective utility management 
        strategies; and</DELETED>
        <DELETED>    (3) publishing and disseminating manuals on best 
        management practices and other relevant information, success 
        stories, and lessons learned relating to effective utility 
        management strategies.</DELETED>
<DELETED>    (c) Partner Organizations.--In carrying out subsection 
(b), the Administrator may enter into cooperative agreements, as the 
Administrator determines to be appropriate, with--</DELETED>
        <DELETED>    (1) stakeholder associations;</DELETED>
        <DELETED>    (2) qualified nonprofit organizations; 
        and</DELETED>
        <DELETED>    (3) other relevant organizations, as determined by 
        the Administrator.</DELETED>
<DELETED>    (d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $1,000,000 for each of 
fiscal years 2010 through 2014.</DELETED>

<DELETED>SEC. 307. WATERSENSE PROGRAM.</DELETED>

<DELETED>    (a) Establishment.--There is established within the 
Environmental Protection Agency a program, to be known as the 
``WaterSense Program'', to identify and promote voluntary approaches to 
increase water efficiency in the United States to reduce the strain on 
water and wastewater infrastructure and conserve water resources for 
future generations through voluntary labeling, promotion, or other 
forms of communication regarding water efficient products, programs, 
processes, buildings, landscapes, facilities, and services that meet 
the highest water conservation and performance standards.</DELETED>
<DELETED>    (b) Administration.--The WaterSense Program shall be 
carried out by the Administrator.</DELETED>
<DELETED>    (c) Duties.--In carrying out the WaterSense Program, the 
Administrator shall--</DELETED>
        <DELETED>    (1) establish--</DELETED>
                <DELETED>    (A) a WaterSense label to be used for 
                certain items; and</DELETED>
                <DELETED>    (B) the procedure by which an item may be 
                certified to display the WaterSense label;</DELETED>
        <DELETED>    (2) promote products displaying the WaterSense 
        label as the preferred technologies in the market place for--
        </DELETED>
                <DELETED>    (A) reducing water use; and</DELETED>
                <DELETED>    (B) ensuring product 
                performance;</DELETED>
        <DELETED>    (3) work to enhance public awareness of the 
        WaterSense label;</DELETED>
        <DELETED>    (4) preserve the integrity of the WaterSense label 
        by--</DELETED>
                <DELETED>    (A) developing specifications to ensure 
                reliable performance of WaterSense-labeled products, 
                buildings, landscapes, and services;</DELETED>
                <DELETED>    (B) overseeing WaterSense certifications 
                made by third parties;</DELETED>
                <DELETED>    (C) conducting reviews of the use of the 
                WaterSense label in the marketplace and taking 
                corrective action in any case in which misuse of the 
                label is identified; and</DELETED>
                <DELETED>    (D) carrying out such other measures as 
                the Administrator determines to be 
                appropriate;</DELETED>
        <DELETED>    (5) regularly research and update WaterSense 
        product criteria for each applicable category of 
        products;</DELETED>
        <DELETED>    (6) solicit comments from interested parties 
        before establishing or revising a WaterSense product category, 
        specification, or criterion (or before the effective date for 
        any such product category, specification, or criterion, as 
        applicable);</DELETED>
        <DELETED>    (7) on adoption of a new or revised product 
        category, specification, or criterion, provide reasonable 
        notice to interested parties regarding--</DELETED>
                <DELETED>    (A) any change (including a change of 
                effective date) to the product category, specification, 
                or criterion;</DELETED>
                <DELETED>    (B) an explanation of the change; 
                and</DELETED>
                <DELETED>    (C) as appropriate, responses to comments 
                submitted by interested parties regarding the product 
                category, specification, or criterion;</DELETED>
        <DELETED>    (8) provide appropriate lead time, as determined 
        by the Administrator, before the applicable effective date for 
        a new or significant revision to a product category, 
        specification, or criterion, taking into account the timing 
        requirements of the manufacturing, product marketing, and 
        distribution process for the specific product, programs, 
        processes, buildings, landscapes, facilities, or services 
        addressed; and</DELETED>
        <DELETED>    (9) identify and, where appropriate, implement 
        other voluntary approaches in commercial, institutional, and 
        industrial sectors to improve water efficiency.</DELETED>
<DELETED>    (d) Annual Reports.--Not less frequently than once each 
year, the Administrator shall prepare and make publicly available a 
report describing the activities carried out under this section, 
including, to the maximum extent practicable--</DELETED>
        <DELETED>    (1) available information regarding sales in each 
        WaterSense product category; and</DELETED>
        <DELETED>    (2) the savings of water, energy, and capital 
        costs of water, wastewater, and stormwater infrastructure 
        attributable to the WaterSense program and each category of 
        WaterSense product, expressed on a national, regional, State, 
        and watershed level.</DELETED>
<DELETED>    (e) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section--</DELETED>
        <DELETED>    (1) $5,000,000 for each of fiscal years 2010 and 
        2011;</DELETED>
        <DELETED>    (2) $7,500,000 for each of fiscal years 2012 and 
        2013; and</DELETED>
        <DELETED>    (3) $10,000,000 for fiscal year 2014.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Water 
Infrastructure Financing Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Administrator.

                TITLE I--WATER POLLUTION INFRASTRUCTURE

Sec. 101. Technical assistance for rural small treatment works and 
                            medium treatment works.
Sec. 102. Preservation of employee labor standards.
Sec. 103. Projects eligible for assistance.
Sec. 104. Affordability.
Sec. 105. Water pollution control revolving loan funds.
Sec. 106. Transferability of funds.
Sec. 107. Noncompliance.
Sec. 108. Negotiation of contracts.
Sec. 109. Allotment of funds.
Sec. 110. Authorization of appropriations.
Sec. 111. Sewer overflow control grants.
Sec. 112. Critical water infrastructure projects.

              TITLE II--SAFE DRINKING WATER INFRASTRUCTURE

Sec. 201. Drinking water technical assistance for communities.
Sec. 202. Preservation of employee labor standards.
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. Reducing lead in drinking water.

                        TITLE III--MISCELLANEOUS

Sec. 301. Definition of Academy.
Sec. 302. Program for water quality enhancement and management.
Sec. 303. Agricultural watershed sustainability technology grant 
                            program.
Sec. 304. State revolving fund review process.
Sec. 305. Cost of service study.
Sec. 306. Effective utility management strategies.
Sec. 307. WaterSense Program.
Sec. 308. Pharmaceuticals and personal care products.
Sec. 309. Financing capability guidance.

SEC. 2. DEFINITION OF ADMINISTRATOR.

    In this Act, the term ``Administrator'' means the Administrator of 
the Environmental Protection Agency.

                TITLE I--WATER POLLUTION INFRASTRUCTURE

SEC. 101. TECHNICAL ASSISTANCE FOR RURAL SMALL TREATMENT WORKS AND 
              MEDIUM TREATMENT WORKS.

    (a) In General.--Title II of the Federal Water Pollution Control 
Act (33 U.S.C. 1281 et seq.) is amended by adding at the end the 
following:

``SEC. 222. TECHNICAL ASSISTANCE FOR RURAL SMALL TREATMENT WORKS AND 
              MEDIUM TREATMENT WORKS.

    ``(a) Definitions.--In this section:
            ``(1) Advanced decentralized wastewater system.--The term 
        `advanced decentralized wastewater system' means a 
        decentralized wastewater system that provides more effective 
        treatment than a conventional septic system.
            ``(2) Decentralized wastewater system.--
                    ``(A) In general.--The term `decentralized 
                wastewater system' means a wastewater treatment system 
                that is at or near a site at which wastewater is 
                generated.
                    ``(B) Inclusions.--The term `decentralized 
                wastewater system' includes a system that provides 
                for--
                            ``(i) nonpotable reuse of treated effluent; 
                        or
                            ``(ii) energy and nutrient recovery from 
                        wastewater constituents.
            ``(3) Medium treatment works.--The term `medium treatment 
        works' means a publicly owned treatment works serving more than 
        10,000 but fewer than 100,000 individuals.
            ``(4) Qualified nonprofit technical assistance provider.--
        The term `qualified nonprofit technical assistance provider' 
        means a qualified nonprofit technical assistance provider of 
        water and wastewater services to small or medium-sized 
        communities that provides technical assistance (including 
        circuit rider, multi-State regional assistance programs, and 
        training and preliminary engineering evaluations) to owners and 
        operators of small treatment works or medium treatment works 
        that may include State agencies.
            ``(5) Small treatment works.--The term `small treatment 
        works' means a publicly owned treatment works serving not more 
        than 10,000 individuals.
    ``(b) Grant Program.--
            ``(1) In general.--The Administrator may make grants on a 
        competitive basis to qualified nonprofit technical assistance 
        providers that are qualified to provide assistance on a broad 
        range of wastewater and stormwater approaches--
                    ``(A) to assist owners and operators of small 
                treatment works and medium treatment works to plan, 
                develop, and obtain financing for eligible projects 
                described in section 603(c) or 518(c);
                    ``(B) to provide financial assistance, in 
                consultation with the State in which the assistance is 
                provided, to owners and operators of small treatment 
                works and medium treatment works for predevelopment 
                costs (including costs for planning, design, and 
                associated preconstruction activities, such as 
                activities relating directly to the siting of the 
                facility and related elements) associated with 
                stormwater or wastewater infrastructure projects or 
                short-term costs incurred for equipment replacement 
                that is not part of regular operation and maintenance 
                activities for existing stormwater or wastewater 
                systems, if the amount of assistance for any single 
                project does not exceed $50,000;
                    ``(C) to provide technical assistance and training 
                for owners and operators of small treatment works and 
                medium treatment works to enable those treatment works 
                and systems to protect water quality and achieve and 
                maintain compliance with this Act; and
                    ``(D) to disseminate information to owners and 
                operators of small treatment works and medium treatment 
                works, with respect to planning, design, construction, 
                and operation of treatment works, small municipal 
                separate storm sewer systems, decentralized wastewater 
                treatment systems, and advanced decentralized 
                wastewater treatment systems.
            ``(2) Distribution of grant.--In carrying out this 
        subsection, the Administrator shall ensure, to the maximum 
        extent practicable, that technical assistance provided using 
        funds from a grant under paragraph (1) is made available in 
        each State.
            ``(3) Consultation.--As a condition of receiving a grant 
        under this subsection, a qualified nonprofit technical 
        assistance provider shall agree to consult with each State in 
        which grant funds are to be expended before the grant funds are 
        expended in the State.
            ``(4) Annual report.--Not later than 60 days after the end 
        of each fiscal year, a qualified nonprofit technical assistance 
        provider that receives a grant under this subsection shall 
        submit to the Administrator a report that--
                    ``(A) describes the activities of the qualified 
                nonprofit technical assistance provider using grant 
                funds received under this subsection for the fiscal 
                year; and
                    ``(B) specifies--
                            ``(i) the number of communities served;
                            ``(ii) the sizes of those communities; and
                            ``(iii) the type of assistance provided by 
                        the qualified nonprofit technical assistance 
                        provider.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            ``(1) for grants for small treatment works, $25,000,000 for 
        each of fiscal years 2010 through 2014; and
            ``(2) for grants for medium treatment works, $15,000,000 
        for each of fiscal years 2010 through 2014.''.
    (b) Guidance for Small Systems.--Section 602 of the Federal Water 
Pollution Control Act (33 U.S.C. 1382) is amended by adding at the end 
the following:
    ``(c) Guidance for Small Systems.--
            ``(1) Definition of small system.--In this subsection, the 
        term `small system' means a system--
                    ``(A) for which a municipality or intermunicipal, 
                interstate, or State agency seeks assistance under this 
                title; and
                    ``(B) that serves a population of not more than 
                10,000 individuals.
            ``(2) Simplified procedures.--Not later than 1 year after 
        the date of enactment of this subsection, the Administrator 
        shall assist the States in establishing simplified procedures 
        for small systems to obtain assistance under this title.
            ``(3) Publication of manual.--Not later than 1 year after 
        the date of enactment of this subsection, after providing 
        notice and opportunity for public comment, the Administrator 
        shall publish--
                    ``(A) a manual to assist small systems in obtaining 
                assistance under this title; and
                    ``(B) in the Federal Register, notice of the 
                availability of the manual.''.

SEC. 102. PRESERVATION OF EMPLOYEE LABOR STANDARDS.

    Section 513 of the Federal Water Pollution Control Act (33 U.S.C. 
1372) is amended to read as follows:

``SEC. 513. PRESERVATION OF EMPLOYEE LABOR STANDARDS.

    ``(a) In General.--Notwithstanding section 602(b)(6), the 
Administrator shall take such action as the Administrator determines to 
be necessary to ensure that each laborer and mechanic employed by a 
contractor or subcontractor of a construction project financed, in 
whole or in part, by a grant, loan, loan guarantee, refinancing, or any 
other form of financial assistance provided under this Act (including 
assistance provided by a State loan fund established under title VI) is 
paid wages at a rate of not less than the wages prevailing for the same 
type of work on similar construction in the immediate locality, as 
determined by the Secretary of Labor in accordance with subchapter IV 
of chapter 31 of title 40, United States Code.
    ``(b) Authority of Secretary of Labor.--With respect to the labor 
standards specified in this section, the Secretary of Labor shall have 
the authority and functions established in Reorganization Plan Numbered 
14 of 1950 (5 U.S.C. App.) and section 3145 of title 40, United States 
Code.''.

SEC. 103. PROJECTS ELIGIBLE FOR ASSISTANCE.

    (a) In General.--Section 603 of the Federal Water Pollution Control 
Act (33 U.S.C. 1383) is amended by striking subsection (c) and 
inserting the following:
    ``(c) Projects Eligible for Assistance.--
            ``(1) In general.--Funds in each State water pollution 
        control revolving fund shall be used only for providing 
        financial assistance--
                    ``(A) to a municipality or an intermunicipal, 
                interstate, or State agency or a private treatment 
                works or decentralized wastewater system that 
                principally treats municipal wastewater or domestic 
                sewage--
                            ``(i) for construction of treatment works 
                        (as defined in section 212); or
                            ``(ii) for capital costs associated with 
                        monitoring equipment for combined sanitary or 
                        sewer overflows;
                    ``(B) to implement measures to control, manage, 
                reduce, treat, infiltrate, or reuse stormwater, the 
                primary purpose of which is the preservation, 
                protection, or enhancement of water quality to support 
                public purposes (including the procurement and use of 
                equipment to support minimum measures, such as street 
                sweeping and storm drain system cleaning, or 
                acquisition of other land and interests in land that 
                are necessary for those activities and measures);
                    ``(C) to implement a management program established 
                under section 319;
                    ``(D) to develop and implement a conservation and 
                management plan under section 320;
                    ``(E) for projects to increase the security of 
                wastewater treatment works (as defined in section 212), 
                excluding any expenditure for operations or 
                maintenance;
                    ``(F) to carry out water conservation or efficiency 
                projects that result in direct water quality benefits;
                    ``(G) to implement measures to integrate water 
                resource management planning and implementation;
                    ``(H) to carry out water reuse (including 
                wastewater reuse), reclamation, and recycling projects 
                that result in direct water quality benefits;
                    ``(I) for projects to increase the energy 
                efficiency of treatment works (as defined in section 
                212) that result in direct water quality benefits;
                    ``(J) for the development and implementation of 
                utility management improvement plans consistent with an 
                effective utility management strategy (as defined in 
                section 306(a) of the Water Infrastructure Financing 
                Act); and
                    ``(K) for the development and implementation of 
                integrative watershed improvement plans that include 
                cost-effective solutions that consider point and 
                nonpoint sources of pollution and traditional and cost-
                saving water treatment and efficiency projects.
            ``(2) Limitation.--Not more than 5 percent of the amount of 
        a capitalization grant of a State may be used during a fiscal 
        year to provide assistance for activities described in 
        subparagraph (J) or (K) of paragraph (1).
            ``(3) State water pollution control revolving funds.--
                    ``(A) In general.--A State water pollution control 
                revolving fund shall be established, maintained, and 
                credited with repayments.
                    ``(B) Balance of fund.--The balance of each fund 
                described in subparagraph (A) shall be available in 
                perpetuity for providing financial assistance under 
                this section.''.
    (b) Modification of Definition.--Section 212(2)(A) of the Federal 
Water Pollution Control Act (33 U.S.C. 1292(2)(A)) is amended--
            (1) by striking ``and any works, including site'';
            (2) by striking ``is used for ultimate'' and inserting 
        ``will be used for ultimate''; and
            (3) by inserting ``; and acquisition of other land and 
        interests in land necessary for construction'' before the 
        period at the end.

SEC. 104. AFFORDABILITY.

    (a) In General.--Section 603 of the Federal Water Pollution Control 
Act (33 U.S.C. 1383) is amended--
            (1) by redesignating subsections (e) through (h) as 
        subsections (g) through (j), respectively;
            (2) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking ``20 
                        years'' and inserting ``the lesser of 30 years 
                        or the design life of the project to be 
                        financed with the proceeds of the loan''; and
                            (ii) in subparagraph (B), by striking ``not 
                        later than 20 years after project completion'' 
                        and inserting ``upon the expiration of the term 
                        of the loan'';
                    (B) in paragraph (6), by striking ``and'' at the 
                end; and
                    (C) in paragraph (7), by striking ``title, except 
                that'' and all that follows and inserting the 
                following:
        ``title, except that--
                    ``(A) such amounts shall not exceed an amount equal 
                to the sum of, for each fiscal year--
                            ``(i) an amount equal to the greatest of--
                                    ``(I) $400,000;
                                    ``(II) \1/5\ percent of the current 
                                valuation of the fund; or
                                    ``(III) 6 percent of all grant 
                                awards to the fund under this title for 
                                a fiscal year; and
                            ``(ii) the amount of any fees collected by 
                        the State for that purpose, regardless of the 
                        source; and
                    ``(B) as a source of revenue (restricted solely to 
                interest earnings of the fund) or security for payment 
                of the principal and interest on revenue or general 
                obligation bonds issued by the State to provide 
                matching funds under section 602(b)(2), if the proceeds 
                of the sale of the bonds will be deposited in the 
                fund.''; and
            (3) by inserting after subsection (d) the following:
    ``(e) Additional Assistance for Disadvantaged Communities.--
            ``(1) Definition of disadvantaged community.--In this 
        subsection, the term `disadvantaged community' means a 
        community with a service area, or portion of a service area, of 
        a treatment works that meets affordability criteria established 
        after public review and comment by the State in which the 
        treatment works is located.
            ``(2) Loan subsidy.--Notwithstanding any other provision of 
        this section, subject to paragraph (5), in a case in which the 
        State makes a loan from the water pollution control revolving 
        loan fund in accordance with subsection (c) to a disadvantaged 
        community or a community that the State expects to become a 
        disadvantaged community as the result of a proposed project, 
        the State may provide additional subsidization, including--
                    ``(A) the forgiveness of all or a portion of the 
                principal of the loan; and
                    ``(B) a negative interest rate on the loan.
            ``(3) Total amount of subsidies.--For each fiscal year, the 
        total amount of loan subsidies made by the State pursuant to 
        this subsection may not exceed 30 percent of the amount of the 
        capitalization grant received by the State for the fiscal year.
            ``(4) Information.--The Administrator may publish 
        information to assist States in establishing affordability 
        criteria described in paragraph (1).
    ``(f) Cost-saving Water Treatment and Efficiency Improvements.--
            ``(1) In general.--Subject to subsection (e)(3), in 
        providing a loan for a project under this section, a State may 
        forgive repayment of a portion of the loan amount up to the 
        percentage of the project that is devoted to alternative 
        approaches to wastewater and stormwater controls (including 
        nonstructural methods), such as projects that treat or minimize 
        sewage or urban stormwater discharges using--
                    ``(A) decentralized or distributed stormwater 
                controls;
                    ``(B) advanced decentralized wastewater treatment;
                    ``(C) low-impact development technologies and 
                nonstructural approaches;
                    ``(D) stream buffers;
                    ``(E) wetland restoration and enhancement;
                    ``(F) actions to minimize the quantity of and 
                direct connections to impervious surfaces;
                    ``(G) soil and vegetation, or other permeable 
                materials;
                    ``(H) actions that increase efficient water use, 
                water conservation, or water reuse, including the 
                rehabilitation or replacement of existing leaking 
                pipes; or
                    ``(I) actions that increase energy efficiency or 
                reduce energy consumption at a treatment works.
            ``(2) Treatment of loan forgiveness.--The amount of loan 
        forgiveness provided by a State under this subsection shall 
        be--
                    ``(A) credited to each State; and
                    ``(B) deducted from the total amount of State 
                capitalization grants for which matching funds are 
                required from the State under section 602(b)(2).''.
    (b) Conforming Amendment.--Section 221(d) of the Federal Water 
Pollution Control Act (33 U.S.C. 1301(d)) is amended in the second 
sentence by striking ``603(h)'' and inserting ``603(j)''.

SEC. 105. WATER POLLUTION CONTROL REVOLVING LOAN FUNDS.

    Section 603 of the Federal Water Pollution Control Act (33 U.S.C. 
1383) is amended by striking subsection (i) (as redesignated by section 
103(a)(1)) and inserting the following:
    ``(i) Priority System Requirement.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Restructuring.--The term `restructuring' 
                means--
                            ``(i) the consolidation of management 
                        functions or ownership with another facility; 
                        or
                            ``(ii) the formation of cooperative 
                        partnerships.
                    ``(B) Traditional wastewater approach.--The term 
                `traditional wastewater approach' means a managed 
                system used to collect and treat wastewater from an 
                entire service area consisting of--
                            ``(i) collection sewers;
                            ``(ii) a centralized treatment plant using 
                        biological, physical, or chemical treatment 
                        processes; and
                            ``(iii) a direct point source discharge to 
                        surface water.
            ``(2) Priority system.--In providing financial assistance 
        from the water pollution control revolving fund of the State, 
        the State shall establish a priority system that--
                    ``(A) takes into consideration appropriate 
                chemical, physical, and biological data relating to 
                water quality that the State considers reasonably 
                available and of sufficient quality;
                    ``(B) ensures that projects undertaken with 
                assistance under this title are designed to achieve, as 
                determined by the State, the optimum water quality 
                management, consistent with the public health and water 
                quality goals and requirements of this Act;
                    ``(C) provides for public notice and opportunity to 
                comment on the establishment of the priority system and 
                the summary under subparagraph (D); and
                    ``(D) provides for the publication, not less than 
                biennially in summary form, of a description of 
                projects in the State that are eligible for assistance 
                under this title that indicates--
                            ``(i) the priority assigned to each project 
                        under the priority system of the State; and
                            ``(ii) the funding schedule for each 
                        project, to the extent the information is 
                        available.
            ``(3) Weight given to applications.--After determining 
        project priorities under subparagraph (2), the State shall give 
        greater weight to an application for assistance if the 
        application includes such information as the State determines 
        to be necessary and contains--
                    ``(A) a description of utility management best 
                practices undertaken by a treatment works applying for 
                assistance, including--
                            ``(i) an inventory of assets, including a 
                        description of the condition of those assets;
                            ``(ii) a schedule for replacement of the 
                        assets;
                            ``(iii) a financing plan that factors in 
                        all lifecycle costs indicating sources of 
                        revenue from ratepayers, grants, bonds, other 
                        loans, and other sources to meet the costs; and
                            ``(iv) a review of options for 
                        restructuring the treatment works;
                    ``(B) approaches other than a traditional 
                wastewater approach that treat or minimize sewage or 
                urban stormwater discharges using--
                            ``(i) decentralized or distributed 
                        stormwater controls;
                            ``(ii) advanced decentralized wastewater 
                        treatment;
                            ``(iii) low-impact development technologies 
                        and nonstructural approaches;
                            ``(iv) stream buffers;
                            ``(v) wetland restoration and enhancement;
                            ``(vi) actions to minimize the quantity of 
                        and direct connections to impervious surfaces;
                            ``(vii) soil and vegetation, or other 
                        permeable materials;
                            ``(viii) actions that increase efficient 
                        water use, water conservation, or water reuse; 
                        or
                            ``(ix) actions that increase energy 
                        efficiency or reduce energy consumption at a 
                        treatment works;
                    ``(C) a demonstration of consistency with State, 
                regional, and municipal watershed plans, water 
                conservation and efficiency plans, or integrated water 
                resource management plans;
                    ``(D) a proposal by the applicant demonstrating 
                flexibility through alternative means to carry out 
                responsibilities under Federal regulations, that may 
                include watershed permitting and other innovative 
                management approaches, while achieving results that--
                            ``(i) the State, in the case of a permit 
                        program approved under section 402, determines 
                        will meet permit requirements; or
                            ``(ii) the Administrator determines are 
                        measurably superior, as compared to regulatory 
                        standards; or
                    ``(E) projects that address adverse environmental 
                conditions.''.

SEC. 106. TRANSFERABILITY OF FUNDS.

    Section 603 of the Federal Water Pollution Control Act (33 U.S.C. 
1383) (as amended by section 104(a)(1)) is amended by adding at the end 
the following:
    ``(k) Transfer of Funds.--
            ``(1) In general.--The Governor of a State may--
                    ``(A)(i) reserve not more than the greater of--
                            ``(I) 33 percent of a capitalization grant 
                        made under this title; or
                            ``(II) 33 percent of a capitalization grant 
                        made under section 1452 of the Safe Drinking 
                        Water Act (42 U.S.C. 300j-12); and
                    ``(ii) add the reserved funds to any funds provided 
                to the State under section 1452 of the Safe Drinking 
                Water Act (42 U.S.C. 300j-12); and
                    ``(B)(i) reserve for any year an amount that does 
                not exceed the amount that may be reserved under 
                subparagraph (A) for that year from capitalization 
                grants made under section 1452 of that Act (42 U.S.C. 
                300j-12); and
                    ``(ii) add the reserved funds to any funds provided 
                to the State under this title.
            ``(2) State match.--Funds reserved under this subsection 
        shall not be considered to be a State contribution for a 
        capitalization grant required under this title or section 
        1452(b) of the Safe Drinking Water Act (42 U.S.C. 300j-
        12(b)).''.

SEC. 107. NONCOMPLIANCE.

    Section 603 of the Federal Water Pollution Control Act (33 U.S.C. 
1383) (as amended by section 106) is amended by adding at the end the 
following:
    ``(l) Noncompliance.--
            ``(1) In general.--Except as provided in paragraph (2), no 
        assistance (other than assistance that is to be used by a 
        treatment works solely for planning, design, or security 
        purposes) shall be provided under this title to the owner or 
        operator of a treatment works that has been in significant 
        noncompliance with any requirement of this Act for any of the 4 
        quarters during the preceding 8 quarters, unless the treatment 
        works is in compliance with an enforceable administrative order 
        to effect compliance with the requirement.
            ``(2) Exception.--An owner or operator of a treatment works 
        that is determined under paragraph (1) to be in significant 
        noncompliance with a requirement described in that paragraph 
        may receive assistance under this title if the Administrator 
        and the State providing the assistance determine that--
                    ``(A) the entity conducting the enforcement action 
                on which the determination of significant noncompliance 
                is based has determined that the use of assistance 
                would enable the owner or operator of the treatment 
                works to take corrective action toward resolving the 
                violations; or
                    ``(B) the entity conducting the enforcement action 
                on which the determination of significant noncompliance 
                is based has determined that the assistance would be 
                used by the owner or operator of the treatment works in 
                order to assist owners and operators in making progress 
                towards compliance.''.

SEC. 108. NEGOTIATION OF CONTRACTS.

    Section 603 of the Federal Water Pollution Control Act (33 U.S.C. 
1383) (as amended by section 107) is amended by adding at the end the 
following:
    ``(m) Negotiation of Contracts.--For communities with populations 
of more than 10,000 individuals, a contract to be carried out using 
funds directly made available by a capitalization grant under this 
section for program management, construction management, feasibility 
studies, preliminary engineering, design, engineering, surveying, 
mapping, or architectural or related services shall be negotiated in 
the same manner as--
            ``(1) a contract for architectural and engineering services 
        is negotiated under chapter 11 of title 40, United States Code; 
        or
            ``(2) an equivalent State qualifications-based requirement 
        (as determined by the Governor of the State).''.

SEC. 109. ALLOTMENT OF FUNDS.

    Section 604 of the Federal Water Pollution Control Act (33 U.S.C. 
1384) is amended by striking subsections (a) and (b) and inserting the 
following:
    ``(a) In General.--Subject to subsection (b)(2), amounts authorized 
to be appropriated to carry out this section for each of fiscal years 
2010 through 2014 shall be allotted among States by the Administrator 
in accordance with the allotment values specified in the following 
table:

------------------------------------------------------------------------
                                                              Allotment
                          ``State                               value
------------------------------------------------------------------------
Alabama....................................................     0.012860
Alaska.....................................................     0.007500
Arizona....................................................     0.010247
Arkansas...................................................     0.007500
California.................................................     0.079629
Colorado...................................................     0.010164
Connecticut................................................     0.014150
Delaware...................................................     0.007500
District of Columbia.......................................     0.005000
Florida....................................................     0.044139
Georgia....................................................     0.012825
Hawaii.....................................................     0.008048
Idaho......................................................     0.007500
Illinois...................................................     0.048540
Indiana....................................................     0.024633
Iowa.......................................................     0.010266
Kansas.....................................................     0.009129
Kentucky...................................................     0.012025
Louisiana..................................................     0.013465
Maine......................................................     0.007829
Maryland...................................................     0.025129
Massachusetts..............................................     0.025754
Michigan...................................................     0.033487
Minnesota..................................................     0.020385
Mississippi................................................     0.009112
Missouri...................................................     0.028037
Montana....................................................     0.007500
Nebraska...................................................     0.008023
Nevada.....................................................     0.007500
New Hampshire..............................................     0.007500
New Jersey.................................................     0.046117
New Mexico.................................................     0.007500
New York...................................................     0.103531
North Carolina.............................................     0.019007
North Dakota...............................................     0.007500
Ohio.......................................................     0.054722
Oklahoma...................................................     0.008171
Oregon.....................................................     0.012456
Pennsylvania...............................................     0.041484
Rhode Island...............................................     0.007500
South Carolina.............................................     0.007500
South Dakota...............................................     0.007500
Tennessee..................................................     0.011019
Texas......................................................     0.037664
Utah.......................................................     0.007500
Vermont....................................................     0.007500
Virginia...................................................     0.020698
Washington.................................................     0.017588
West Virginia..............................................     0.011825
Wisconsin..................................................     0.022844
Wyoming....................................................     0.007500
Puerto Rico................................................     0.005000
Territories................................................     0.002500
------------------------------------------------------------------------

    ``(b) Reservation of Funds.--
            ``(1) Planning.--Each State may reserve for each fiscal 
        year to carry out planning under sections 205(j) and 303(e) an 
        amount equal to the greater of--
                    ``(A) 2 percent of the sums allotted to the State 
                under this section for the fiscal year; or
                    ``(B) $100,000.
            ``(2) Operator training; indian tribes.--Of the total 
        amount of funds made available to carry out this title, before 
        allotting funds in accordance with subsection (a), for fiscal 
        year 2009 and each fiscal year thereafter, the Administrator--
                    ``(A) may reserve not more than $5,000,000 to carry 
                out the objectives described in section 104(g); and
                    ``(B) shall allocate 1.5 percent to Indian tribes 
                (as defined in section 518(h)).''.

SEC. 110. AUTHORIZATION OF APPROPRIATIONS.

    The Federal Water Pollution Control Act is amended by striking 
section 607 (33 U.S.C. 1387) and inserting the following:

``SEC. 607. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this title--
            ``(1) $3,200,000,000 for each of fiscal years 2010 and 
        2011;
            ``(2) $3,600,000,000 for fiscal year 2012;
            ``(3) $4,000,000,000 for fiscal year 2013; and
            ``(4) $6,000,000,000 for fiscal year 2014.
    ``(b) Availability.--Amounts made available under this section 
shall remain available until expended.
    ``(c) Reservation for Needs Surveys.--Of the amount made available 
under subsection (a) to carry out this title for a fiscal year, the 
Administrator may reserve not more than $1,000,000 for the fiscal year, 
to remain available until expended, to pay the costs of conducting 
needs surveys under section 516(b)(1)(B).''.

SEC. 111. SEWER OVERFLOW CONTROL GRANTS.

    (a) Sewer Overflow Control Grants.--Section 221 of the Federal 
Water Pollution Control Act (33 U.S.C. 1301) is amended--
            (1) in subsection (a), by striking ``In General'' and all 
        that follows through ``(2) subject to subsection (g), the 
        Administrator may'' and inserting the following:
    ``(a) In General.--The Administrator may--
            ``(1) make grants to States for the purpose of providing 
        grants to a municipality or municipal entity for planning, 
        design, and construction of treatment works to intercept, 
        transport, control, or treat municipal combined sewer overflows 
        and sanitary sewer overflows; and
            ``(2) subject to subsection (g),''; and
            (2) by striking subsections (e) through (g) and inserting 
        the following:
    ``(e) Administrative Requirements.--
            ``(1) In general.--Subject to paragraph (2), a project that 
        receives grant assistance under subsection (a) shall be carried 
        out subject to the same requirements as a project that receives 
        assistance from a State water pollution control revolving fund 
        established pursuant to title VI.
            ``(2) Determination of governor.--The requirement described 
        in paragraph (1) shall not apply to a project that receives 
        grant assistance under subsection (a) to the extent that the 
        Governor of the State in which the project is located 
        determines that a requirement described in title VI is 
        inconsistent with the purposes of this section.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section, to remain available until 
expended--
            ``(1) $250,000,000 for fiscal year 2010;
            ``(2) $300,000,000 for fiscal year 2011;
            ``(3) $350,000,000 for fiscal year 2012;
            ``(4) $400,000,000 for fiscal year 2013; and
            ``(5) $500,000,000 for fiscal year 2014.
    ``(g) Allocation of Funds.--
            ``(1) Fiscal year 2010 and 2011.--For each of fiscal years 
        2010 and 2011, subject to subsection (h), the Administrator 
        shall use the amounts made available to carry out this section 
        to provide grants to municipalities and municipal entities 
        under subsection (a)(2)--
                    ``(A) in accordance with the priority criteria 
                described in subsection (b); and
                    ``(B) with additional priority given to proposed 
                projects that involve the use of--
                            ``(i) nonstructural, low-impact 
                        development;
                            ``(ii) water conservation, efficiency, or 
                        reuse; or
                            ``(iii) other decentralized stormwater or 
                        wastewater approaches to minimize flows into 
                        the sewer systems.
            ``(2) Fiscal year 2012 and thereafter.--For fiscal year 
        2012 and each fiscal year thereafter, subject to subsection 
        (h), the Administrator shall use the amounts made available to 
        carry out this section to provide grants to States under 
        subsection (a)(1) in accordance with a formula that--
                    ``(A) shall be established by the Administrator, 
                after providing notice and an opportunity for public 
                comment; and
                    ``(B) allocates to each State a proportional share 
                of the amounts based on the total needs of the State 
                for municipal combined sewer overflow controls and 
                sanitary sewer overflow controls, as identified in the 
                most recent survey--
                            ``(i) conducted under section 210; and
                            ``(ii) included in a report required under 
                        section 516(b)(1)(B).''.
    (b) Reports.--Section 221(i) of the Federal Water Pollution Control 
Act (33 U.S.C. 1301(i)) is amended in the first sentence by striking 
``2003'' and inserting ``2011''.

SEC. 112. CRITICAL WATER INFRASTRUCTURE PROJECTS.

    (a) Establishment.--The Administrator shall establish a program 
under which grants are provided to eligible entities for use in 
carrying out projects and activities the primary purpose of which is 
watershed restoration through the protection or improvement of water 
quality.
    (b) Project Selection.--
            (1) In general.--The Administrator may provide funds under 
        this section to an eligible entity to carry out an eligible 
        project described in paragraph (3).
            (2) Equitable distribution.--The Administrator shall ensure 
        an equitable distribution of projects under this section, 
        taking into account cost and number of requests for each 
        category listed in paragraph (3).
            (3) Eligible projects.--A project that is eligible to be 
        carried out using funds provided under this section may include 
        projects that are included in the intended use plan of the 
        State developed in accordance with section 606(c) of the 
        Federal Water Pollution Control Act (33 U.S.C. 1386(c)).
    (c) Local Participation.--In prioritizing projects for 
implementation under this section, the Administrator shall consult 
with, and consider the priorities of--
            (1) affected State and local governments; and
            (2) public and private entities that are active in 
        watershed planning and restoration.
    (d) Cost Sharing.--Before carrying out any project under this 
section, the Administrator shall enter into an agreement with 1 or more 
non-Federal interests that shall require the non-Federal interests--
            (1) to pay 45 percent of the total costs of the project, 
        which may include services, materials, supplies, or other in-
        kind contributions;
            (2) to provide any land, easements, rights-of-way, and 
        relocations necessary to carry out the project; and
            (3) to pay 100 percent of any operation, maintenance, 
        repair, replacement, and rehabilitation costs associated with 
        the project.
    (e) Waiver.--The Administrator may waive the requirement to pay the 
non-Federal share of the cost of carrying out an eligible activity 
using funds from a grant provided under this section if the 
Administrator determines that an eligible entity is unable to pay, or 
would experience significant financial hardship if required to pay, the 
non-Federal share.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000 for each of fiscal 
years 2010 through 2014.

              TITLE II--SAFE DRINKING WATER INFRASTRUCTURE

SEC. 201. DRINKING WATER TECHNICAL ASSISTANCE FOR COMMUNITIES.

    Section 1442(e) of the Safe Drinking Water Act (42 U.S.C. 300j-
1(e)) is amended--
            (1) in the first sentence, by striking ``The Administrator 
        may provide'' and inserting the following:
            ``(1) Public water systems.--The Administrator may 
        provide'';
            (2) in the second sentence, by striking ``Such assistance'' 
        and inserting the following:
            ``(2) Types of assistance.--Such assistance'';
            (3) in the third sentence, by striking ``The Administrator 
        shall ensure'' and inserting the following:
            ``(3) Availability.--The Administrator shall ensure'';
            (4) in the fourth sentence, by striking ``Each nonprofit'' 
        and inserting the following:
            ``(4) Requirement applicable to nonprofit organizations.--
        Each nonprofit''; and
            (5) by striking the fifth sentence and all that follows and 
        inserting the following:
            ``(5) Priority.--In providing grants under this section, 
        the Administrator shall give priority to small systems 
        organizations that, as determined by the Administrator, in 
        consultation with the State, are qualified and will be the most 
        effective at assisting small systems.
            ``(6) Wells and well systems.--
                    ``(A) In general.--The Administrator shall provide 
                grants to nonprofit organizations to provide technical 
                assistance to communities and individuals regarding the 
                design, operation, construction, and maintenance of 
                household wells and small shared well-systems that 
                provide drinking water.
                    ``(B) Form of assistance.--Technical assistance 
                referred to in subparagraph (A) may include--
                            ``(i) training and education;
                            ``(ii) operation of a hotline; and
                            ``(iii) the conduct of other activities 
                        relating to the design and construction of 
                        household, shared, and small water well systems 
                        in rural areas.
                    ``(C) Priority.--Subject to paragraph (5), in 
                providing grants under this section, the Administrator 
                shall give priority to applicants that, as determined 
                by the Administrator--
                            ``(i) are qualified; and
                            ``(ii) have demonstrated experience in 
                        providing similar technical assistance and in 
                        developing similar projects.
                    ``(D) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph--
                            ``(i) $7,000,000 for fiscal year 2010; and
                            ``(ii) $7,500,000 for each of fiscal years 
                        2011 through 2014.
            ``(7) Funding.--
                    ``(A) Authorization of appropriations.--There is 
                authorized to be appropriated to the Administrator to 
                carry out this subsection (other than paragraph (6)) 
                $35,000,000 for each of fiscal years 2010 through 2014.
                    ``(B) Lobbying expenses.--No portion of any State 
                loan fund established under section 1452 and no portion 
                of any funds made available under this subsection may 
                be used for lobbying expenses.
                    ``(C) Indian tribes.--Of the total amount made 
                available under this section for each fiscal year, 3 
                percent shall be used for technical assistance to 
                public water systems owned or operated by Indian 
                Tribes.''.

SEC. 202. PRESERVATION OF EMPLOYEE LABOR STANDARDS.

    Section 1450 of the Safe Drinking Water Act (42 U.S.C. 300j-9) is 
amended by striking subsection (e) and inserting the following:
    ``(e) Labor Standards.--
            ``(1) In general.--The Administrator shall take such action 
        as the Administrator determines to be necessary to ensure that 
        each laborer and mechanic employed by a contractor or 
        subcontractor of a construction project financed, in whole or 
        in part, by a grant, loan, loan guarantee, refinancing, or any 
        other form of financial assistance provided under this Act 
        (including assistance provided by a State loan fund established 
        under section 1452) is paid wages at a rate of not less than 
        the wages prevailing for the same type of work on similar 
        construction in the immediate locality, as determined by the 
        Secretary of Labor in accordance with subchapter IV of chapter 
        31 of title 40, United States Code.
            ``(2) Authority of secretary of labor.--With respect to the 
        labor standards specified in this subsection, the Secretary of 
        Labor shall have the authority and functions established in 
        Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App.) and 
        section 3145 of title 40, United States Code.''.

SEC. 203. PRECONSTRUCTION WORK.

    Section 1452(a)(2) of the Safe Drinking Water Act (42 U.S.C. 300j-
12(a)(2)) is amended--
            (1) by designating the first, second, third, fourth, and 
        fifth sentences as subparagraphs (A), (B), (D), (E), and (F), 
        respectively;
            (2) in subparagraph (B) (as designated by paragraph (1))--
                    (A) by striking ``(not'' and inserting ``(including 
                expenditures for planning, design, and associated 
                preconstruction activities, including activities 
                relating to the siting of the facility, but not''; and
                    (B) by inserting before the period at the end the 
                following: ``or to replace or rehabilitate aging 
                treatment, storage, or distribution facilities of 
                public water systems or provide for capital projects 
                (excluding any expenditure for operations and 
                maintenance) to upgrade the security of public water 
                systems''; and
            (3) by inserting after subparagraph (B) (as designated by 
        paragraph (1)) the following:
                    ``(C) Sale of bonds.--Funds may also be used by a 
                public water system as a source of revenue (restricted 
                solely to interest earnings of the applicable State 
                loan fund) or security for payment of the principal and 
                interest on revenue or general obligation bonds issued 
                by the State to provide matching funds under subsection 
                (e), if the proceeds of the sale of the bonds will be 
                deposited in the State loan fund.''.

SEC. 204. PRIORITY SYSTEM REQUIREMENTS.

    Section 1452(b)(3) of the Safe Drinking Water Act (42 U.S.C. 300j-
12(b)(3)) is amended--
            (1) by redesignating subparagraph (B) as subparagraph (D);
            (2) by striking subparagraph (A) and inserting the 
        following:
                    ``(A) Definition of restructuring.--In this 
                paragraph, the term `restructuring' means changes in 
                operations (including ownership, cooperative 
                partnerships, asset management, consolidation, and 
                alternative water supply).
                    ``(B) Priority system.--An intended use plan shall 
                provide, to the maximum extent practicable, that 
                priority for the use of funds be given to projects 
                that--
                            ``(i) address the most serious risk to 
                        human health;
                            ``(ii) are necessary to ensure compliance 
                        with this title (including requirements for 
                        filtration);
                            ``(iii) assist systems most in need on a 
                        per-household basis according to State 
                        affordability criteria; and
                            ``(iv) improve the sustainability of 
                        systems.
                    ``(C) Weight given to applications.--After 
                determining project priorities under subparagraph (B), 
                an intended use plan shall provide that the State shall 
                give greater weight to an application for assistance by 
                a community water system if the application includes 
                such information as the State determines to be 
                necessary and contains--
                            ``(i) a description of utility management 
                        best practices undertaken by a treatment works 
                        applying for assistance, including--
                                    ``(I) an inventory of assets, 
                                including a description of the 
                                condition of the assets;
                                    ``(II) a schedule for replacement 
                                of assets;
                                    ``(III) a financing plan that 
                                factors in all lifecycle costs 
                                indicating sources of revenue from 
                                ratepayers, grants, bonds, other loans, 
                                and other sources to meet the costs; 
                                and
                                    ``(IV) a review of options for 
                                restructuring the public water system;
                            ``(ii) demonstration of consistency with 
                        State, regional, and municipal watershed plans;
                            ``(iii) a water conservation plan 
                        consistent with guidelines developed for those 
                        plans by the Administrator under section 
                        1455(a); and
                            ``(iv) approaches to improve the 
                        sustainability of the system, including--
                                    ``(I) water efficiency or 
                                conservation, including the 
                                rehabilitation or replacement of 
                                existing leaking pipes;
                                    ``(II) use of reclaimed water;
                                    ``(III) actions to increase energy 
                                efficiency; and
                                    ``(IV) implementation of source 
                                water protection plans.''; and
            (3) in subparagraph (D) (as redesignated by paragraph (1)), 
        by striking ``periodically'' and inserting ``at least 
        biennially''.

SEC. 205. AFFORDABILITY.

    Section 1452(d)(3) of the Safe Drinking Water Act (42 U.S.C. 300j-
12(d)(3)) is amended in the first sentence by inserting ``, or portion 
of a service area,'' after ``service area''.

SEC. 206. SAFE DRINKING WATER REVOLVING LOAN FUNDS.

    Section 1452(g) of the Safe Drinking Water Act (42 U.S.C. 300j-
12(g)) is amended--
            (1) paragraph (2)--
                    (A) in the first sentence, by striking ``up to 4 
                percent of the funds allotted to the State under this 
                section'' and inserting ``, for each fiscal year, an 
                amount that does not exceed the sum of the amount of 
                any fees collected by the State for use in covering 
                reasonable costs of administration of programs under 
                this section, regardless of the source, and an amount 
                equal to the greatest of $400,000, \1/5\ percent of the 
                current valuation of the fund, or 6 percent of all 
                grant awards to the fund under this section for the 
                fiscal year,''; and
                    (B) by striking ``1419,'' and all that follows 
                through ``1993.'' and inserting ``1419.''; and
            (2) by adding at the end the following:
            ``(5) Transfer of funds.--
                    ``(A) In general.--The Governor of a State may--
                            ``(i)(I) reserve not more than the greater 
                        of--
                                    ``(aa) 33 percent of a 
                                capitalization grant made under this 
                                section; or
                                    ``(bb) 33 percent of a 
                                capitalization grant made under section 
                                601 of the Federal Water Pollution 
                                Control Act (33 U.S.C. 1381);
                            ``(II) add the funds reserved to any funds 
                        provided to the State under section 601 of the 
                        Federal Water Pollution Control Act (33 U.S.C. 
                        1381); and
                            ``(ii)(I) reserve for any fiscal year an 
                        amount that does not exceed the amount that may 
                        be reserved under clause (i)(I) for that year 
                        from capitalization grants made under section 
                        601 of that Act (33 U.S.C. 1381); and
                            ``(II) add the reserved funds to any funds 
                        provided to the State under this section.
                    ``(B) State match.--Funds reserved under this 
                paragraph shall not be considered to be a State match 
                of a capitalization grant required under this section 
                or section 602(b) of the Federal Water Pollution 
                Control Act (33 U.S.C. 1382(b)).''.

SEC. 207. OTHER AUTHORIZED ACTIVITIES.

    Section 1452(k)(2)(D) of the Safe Drinking Water Act (42 U.S.C. 
300j-12(k)(2)(D)) is amended by inserting before the period at the end 
the following: ``(including implementation of source water protection 
plans)''.

SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

    Section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j-12) is 
amended by striking subsection (m) and inserting the following:
    ``(m) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section--
                    ``(A) $1,500,000,000 for fiscal year 2010;
                    ``(B) $2,000,000,000 for each of fiscal years 2011 
                and 2012;
                    ``(C) $3,200,000,000 for fiscal year 2013; and
                    ``(D) $6,000,000,000 for fiscal year 2014.
            ``(2) Availability.--Amounts made available under this 
        subsection shall remain available until expended.
            ``(3) Reservation for needs surveys.--Of the amount made 
        available under paragraph (1) to carry out this section for a 
        fiscal year, the Administrator may reserve not more than 
        $1,000,000 per year to pay the costs of conducting needs 
        surveys under subsection (h).''.

SEC. 209. NEGOTIATION OF CONTRACTS.

    Section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j-12) is 
amended by adding at the end the following:
    ``(s) Negotiation of Contracts.--For communities with populations 
of more than 10,000 individuals, a contract to be carried out using 
funds directly made available by a capitalization grant under this 
section for program management, construction management, feasibility 
studies, preliminary engineering, design, engineering, surveying, 
mapping, or architectural or related services shall be negotiated in 
the same manner as--
            ``(1) a contract for architectural and engineering services 
        is negotiated under chapter 11 of title 40, United States Code; 
        or
            ``(2) an equivalent State qualifications-based requirement 
        (as determined by the Governor of the State).''.

SEC. 210. CRITICAL DRINKING WATER INFRASTRUCTURE PROJECTS.

    (a) Establishment.--Not later than 180 days after the date of 
enactment of this Act, the Administrator shall establish a program 
under which grants are provided to eligible entities for use in 
carrying out projects and activities the primary purpose of which is to 
assist community water systems in meeting the requirements of the Safe 
Drinking Water Act (42 U.S.C. 300f et seq.).
    (b) Project Selection.--A project that is eligible to be carried 
out using funds provided under this section may include projects that--
            (1) develop alternative water sources;
            (2) provide assistance to small systems; or
            (3) assist a community water system--
                    (A) to comply with a national primary drinking 
                water regulation; or
                    (B) to mitigate groundwater contamination, 
                including saltwater intrusion.
    (c) Eligible Entities.--An entity eligible to receive a grant under 
this section is--
            (1) a community water system as defined in section 1401 of 
        the Safe Drinking Water Act (42 U.S.C. 300f); or
            (2) a system that is located in an area governed by an 
        Indian Tribe (as defined in section 1401 of the Safe Drinking 
        Water Act (42 U.S.C. 300f));
    (d) Priority.--In prioritizing projects for implementation under 
this section, the Administrator shall give priority to community water 
systems that--
            (1) serve a community that, under affordability criteria 
        established by the State under section 1452(d)(3) of the Safe 
        Drinking Water Act (42 U.S.C. 300j-12), is determined by the 
        State to be--
                    (A) a disadvantaged community; or
                    (B) a community that may become a disadvantaged 
                community as a result of carrying out an eligible 
                activity; or
            (2) serve a community with a population of less than 10,000 
        individuals.
    (e) Local Participation.--In prioritizing projects for 
implementation under this section, the Administrator shall consult 
with, and consider the priorities of, affected States, Indian Tribes, 
and local governments.
    (f) Cost Sharing.--Before carrying out any project under this 
section, the Administrator shall enter into a binding agreement with 1 
or more non-Federal interests that shall require the non-Federal 
interests--
            (1) to pay 45 percent of the total costs of the project, 
        which may include services, materials, supplies, or other in-
        kind contributions;
            (2) to provide any land, easements, rights-of-way, and 
        relocations necessary to carry out the project; and
            (3) to pay 100 percent of any operation, maintenance, 
        repair, replacement, and rehabilitation costs associated with 
        the project.
    (g) Waiver.--The Administrator may waive the requirement to pay the 
non-Federal share of the cost of carrying out an eligible activity 
using funds from a grant provided under this section if the 
Administrator determines that an eligible entity is unable to pay, or 
would experience significant financial hardship if required to pay, the 
non-Federal share.
    (h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section--
            (1) $230,000,000 for fiscal year 2010; and
            (2) $300,000,000 for each of fiscal years 2011 through 
        2014.

SEC. 211. REDUCING LEAD IN DRINKING WATER.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) a community water system (as defined in section 
                1401 of the Safe Drinking Water Act (42 U.S.C. 300f));
                    (B) a system located in an area governed by an 
                Indian Tribe (as defined in that section);
                    (C) a nontransient noncommunity water system;
                    (D) a qualified nonprofit organization, as 
                determined by the Administrator; and
                    (E) a municipality or State, interstate, or 
                intermunicipal agency.
            (2) Lead reduction project.--The term ``lead reduction 
        project'' means a project or activity the primary purpose of 
        which is to reduce the level of lead in water for human 
        consumption by--
                    (A) replacement of publicly owned lead service 
                lines;
                    (B) capital costs, testing, planning, or other 
                relevant activities, as determined by the 
                Administrator, to identify and address conditions 
                (including corrosion control) that contribute to 
                increased lead levels in water for human consumption;
                    (C) assistance to low-income homeowners to replace 
                privately owned service lines, pipes, fittings, or 
                fixtures that contain lead; and
                    (D) education of consumers regarding measures to 
                reduce exposure to lead from drinking water or other 
                sources.
            (3) Low-income.--The term ``low-income'', with respect to 
        an individual provided assistance under this section, has such 
        meaning as may be given the term by the head of the 
        municipality or State, interstate, or intermunicipal agency 
        with jurisdiction over the area to which assistance is 
        provided.
            (4) Municipality.--The term ``municipality'' means--
                    (A) a city, town, borough, county, parish, 
                district, association, or other public entity 
                established by, or pursuant to, applicable State law; 
                and
                    (B) an Indian tribe (as defined in section 4 of the 
                Indian Self-Determination and Education Assistance Act 
                (25 U.S.C. 450b)).
    (b) Grant Program.--
            (1) Establishment.--Not later than 180 days after the date 
        of enactment of this Act, the Administrator shall establish a 
        grant program to provide assistance to eligible entities for 
        lead reduction projects in the United States.
            (2) Evaluation.--In providing assistance under this 
        section, the Administrator shall evaluate--
                    (A) whether an eligible entity applying for 
                assistance has taken steps to identify the source of 
                lead in water for human consumption; and
                    (B) the means by which the proposed lead reduction 
                project would reduce lead levels in the applicable 
                water system.
            (3) Priority application.--In providing grants under this 
        subsection, the Administrator shall give priority to an 
        eligible entity that--
                    (A) carries out a lead reduction project at a 
                public water system or nontransient noncommunity water 
                system that has exceeded the lead action level 
                established by the Administrator at any time during the 
                3-year period preceding the date of submission of the 
                application of the eligible entity;
                    (B) addresses lead levels in water for human 
                consumption at a school, daycare, or other facility 
                that primarily serves children or another vulnerable 
                human subpopulation; or
                    (C) addresses such priority criteria as the 
                Administrator may establish, consistent with the goal 
                of reducing lead levels of concern.
            (4) Cost sharing.--
                    (A) In general.--Subject to subparagraph (B), the 
                non-Federal share of the total cost of a project funded 
                by a grant under this subsection shall be not less than 
                20 percent.
                    (B) Waiver.--The Administrator may reduce or 
                eliminate the non-Federal share under subparagraph (A) 
                for reasons of affordability, as the Administrator 
                determines to be appropriate.
            (5) Low-income assistance.--
                    (A) In general.--Subject to subparagraphs (B) and 
                (C), an eligible entity may use a grant provided under 
                this subsection to provide assistance to low-income 
                homeowners to carry out lead reduction projects.
                    (B) Low-income assistance cap.--Of the funds made 
                available to carry out this section, not more than 
                $5,000,000 may be allocated to provide assistance to 
                low-income homeowners under this paragraph for any 
                fiscal year.
                    (C) Limitation.--The amount of a grant provided to 
                a low-income homeowner under this paragraph shall not 
                exceed $5,000.
            (6) Special consideration for lead service line 
        replacement.--In carrying out lead service line replacement 
        using a grant under this subsection, an eligible entity shall--
                    (A) notify customers of the replacement of any 
                publicly owned portion of the lead service line;
                    (B) offer to replace the privately owned portion of 
                the lead service line at the cost of replacement;
                    (C) recommend measures to avoid exposure to short-
                term increases in lead levels following a partial lead 
                service line replacement; and
                    (D) demonstrate that the eligible entity has 
                considered multiple options for reducing lead in 
                drinking water, including an evaluation of options for 
                corrosion control.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $60,000,000 for each of fiscal 
years 2010 through 2014.

                        TITLE III--MISCELLANEOUS

SEC. 301. DEFINITION OF ACADEMY.

    In this title, the term ``Academy'' means the National Academy of 
Sciences.

SEC. 302. PROGRAM FOR WATER QUALITY ENHANCEMENT AND MANAGEMENT.

    (a) Innovative Technology and Alternative Approaches Grant 
Program.--
            (1) In general.--Not later than 2 years after the date of 
        enactment of this Act, the Administrator shall establish a 
        program to provide grants to, and enter into contracts and 
        cooperative agreements with, research institutions, 
        institutions of higher education, National Laboratories, and 
        other appropriate entities (including consortia of such 
        institutions and entities), through a competitive process, in 
        accordance with the plan developed under subsection (b), for 
        research regarding, and development of the use of, innovative 
        and alternative technologies to improve water quality, drinking 
        water supply, or water use efficiency and conservation.
            (2) Types of projects.--In carrying out this subsection, 
        the Administrator may select projects relating to such matters 
        as innovative or alternative technologies, approaches, 
        practices, or methods--
                    (A) to increase the effectiveness and efficiency of 
                water and wastewater infrastructure through the use of 
                integrated water resource management;
                    (B) to increase the effectiveness and efficiency of 
                public water systems, including--
                            (i) source water protection;
                            (ii) water use reduction;
                            (iii) water collection, storage, and 
                        treatment and reuse of rainwater, stormwater, 
                        and graywater;
                            (iv) identification of behavioral, social, 
                        and economic barriers to achieving greater 
                        water use efficiency;
                            (v) use of watershed planning directed 
                        toward water quality, conservation, and supply;
                            (vi) actions to reduce energy consumption;
                            (vii) water treatment;
                            (viii) water distribution and wastewater 
                        collection systems;
                            (ix) desalination; and
                            (x) water security;
                    (C) to encourage the use of innovative or 
                alternative technologies or approaches relating to 
                water supply or availability;
                    (D) to increase the effectiveness and efficiency of 
                new and existing treatment works, including--
                            (i) methods of collecting, treating, 
                        dispersing, reusing, reclaiming, and recycling 
                        wastewater;
                            (ii) system design;
                            (iii) nonstructural alternatives;
                            (iv) decentralized approaches;
                            (v) stormwater and wastewater reuse;
                            (vi) water use efficiency and conservation;
                            (vii) actions to reduce energy consumption;
                            (viii) technologies to extract energy from 
                        wastewater; and
                            (ix) wastewater security;
                    (E) to increase the effectiveness and efficiency of 
                municipal separate storm sewer systems and combined 
                sewer systems, including through the use of soil and 
                vegetation or other permeable materials;
                    (F) to promote new water treatment technologies and 
                management approaches, including commercialization and 
                dissemination strategies for adoption of innovative 
                water, wastewater, and stormwater technologies and 
                management approaches or low-impact development 
                technologies in the homebuilding industry; or
                    (G) to maintain a clearinghouse of technologies and 
                management approaches developed under this subsection 
                and subsections (c) and (d) at a research consortium or 
                institute or other appropriate organization, as 
                determined by the Administrator.
            (3) Factors for consideration.--In planning and 
        implementing the program under this subsection, the 
        Administrator shall take into consideration--
                    (A) research needs identified by water resource 
                managers, State and local governments, and other 
                interested parties; and
                    (B) technologies and processes likely to achieve 
                the greatest increases in water quality, drinking water 
                supply, or water use efficiency and conservation.
            (4) Minority-serving institutions.--In carrying out the 
        program under this subsection, the Administrator--
                    (A) may provide extramural grants to institutions 
                of higher education; and
                    (B) shall encourage participation by minority-
                serving institutions.
    (b) Strategic Research Plan.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Administrator, in coordination with 
        the heads of other appropriate Federal departments and 
        agencies, shall develop a strategic research plan for the grant 
        program under subsection (a).
            (2) Requirements.--
                    (A) Coordination.--The plan under paragraph (1) 
                shall be carried out, to the maximum extent 
                practicable, in coordination with other research and 
                development strategic plans of the Environmental 
                Protection Agency.
                    (B) Contents.--The plan under paragraph (1) shall--
                            (i) describe, in outline form, research 
                        goals and priorities relating to an agenda of 
                        water quality, drinking water supply, and water 
                        use efficiency and conservation, including--
                                    (I) developing innovative water 
                                supply-enhancing processes and 
                                technologies;
                                    (II) improving existing processes 
                                and technologies, including wastewater 
                                treatment, desalination, and 
                                groundwater recharge and recovery 
                                schemes;
                                    (III) improving the effectiveness 
                                and efficiency of nontraditional 
                                wastewater treatment practices, 
                                including nonstructural alternatives, 
                                low-impact development techniques, and 
                                decentralized approaches; and
                                    (IV) exploring concepts that 
                                extract energy from wastewater;
                            (ii)(I) identify current Federal water-
                        related research efforts directed toward 
                        achieving the goals of improving water quality, 
                        water use efficiency, or water conservation or 
                        expanding water supply; and
                            (II) describe the means by which those 
                        efforts are coordinated with the program 
                        established under subsection (a) in order to 
                        leverage resources and avoid duplication;
                            (iii) take into consideration the public 
                        health and environmental quality impacts and 
                        cost-effectiveness of each relevant technology 
                        and approach; and
                            (iv) take into consideration and 
                        incorporate, as appropriate, recommendations 
                        contained in reports and studies conducted by 
                        Federal departments and agencies, the National 
                        Research Council, the National Science and 
                        Technology Council, and other appropriate 
                        entities.
            (3) Science advisory board review.--The Administrator shall 
        submit the plan under paragraph (1) to the Science Advisory 
        Board of the Environmental Protection Agency for review.
            (4) Revisions.--The plan under paragraph (1) shall be 
        revised and amended as necessary to reflect updated scientific 
        findings and national research priorities.
    (c) Municipalities Grant Program.--
            (1) Definition of municipality.--In this subsection, the 
        term ``municipality'' means--
                    (A) a city, town, borough, county, parish, 
                district, association, authority, or other public 
                entity established by, or pursuant to, State law; or
                    (B) an Indian tribe (as defined in section 4 of the 
                Indian Self-Determination and Education Assistance Act 
                (25 U.S.C. 450b)).
            (2) Establishment.--Not later than 90 days after the date 
        of publication of the initial report under subsection (e)(2), 
        the Administrator shall establish a nationwide demonstration 
        grant program--
                    (A) to promote innovations in technology and 
                alternative approaches to water quality management or 
                water supply developed under subsection (a); and
                    (B) to reduce costs to municipalities incurred in 
                complying with the Federal Water Pollution Control Act 
                (33 U.S.C. 1251 et seq.) and the Safe Drinking Water 
                Act (42 U.S.C. 300f et seq.) through the approaches and 
                technologies developed under subsection (a).
            (3) Scope.--The demonstration grant program shall consist 
        of up to 10 projects each year, to be carried out in 
        municipalities selected by the Administrator under paragraph 
        (5).
            (4) Applications.--A municipality that seeks to participate 
        in the demonstration grant program established under this 
        subsection shall submit to the Administrator a plan that--
                    (A) is developed in coordination with--
                            (i) the agencies of the State having 
                        jurisdiction over water quality and water 
                        supply matters; and
                            (ii) interested stakeholders, including 
                        institutions of higher education and related 
                        research institutions;
                    (B) describes water impacts specific to urban or 
                rural areas;
                    (C) includes a strategy under which the 
                municipality, through participation in the 
                demonstration grant program, could effectively--
                            (i) address water quality or water supply 
                        problems; and
                            (ii) achieve the water quality goals that--
                                    (I) could be achieved using more 
                                traditional methods; and
                                    (II) are required under the Federal 
                                Water Pollution Control Act (33 U.S.C. 
                                1251 et seq.) or the Safe Drinking 
                                Water Act (42 U.S.C. 300f et seq.); and
                    (D) includes a schedule for achieving the water 
                quality, water supply, or water use efficiency and 
                conservation goals of the municipality.
            (5) Categories of projects.--
                    (A) In general.--In carrying out the demonstration 
                grant program, the Administrator shall provide grants 
                for--
                            (i) projects relating to water supply, 
                        water quality, or water use efficiency and 
                        conservation matters described in subsection 
                        (a)(2); and
                            (ii) subject to subparagraph (B), not less 
                        than 2 projects for the incorporation into a 
                        building of the most current water use 
                        efficiency and conservation technologies and 
                        designs.
                    (B) Projects for incorporation.--
                            (i) Incremental cost limitation.--A grant 
                        provided under subparagraph (A)(ii) may be used 
                        only to pay the incremental costs of 
                        incorporation into a building of a water use 
                        efficiency and conservation technology or 
                        design.
                            (ii) Types of buildings.--Of the projects 
                        for which grants are provided under 
                        subparagraph (A)(ii)--
                                    (I) at least 1 shall be for a 
                                residential building; and
                                    (II) at least 1 shall be for a 
                                commercial building.
                            (iii) Public availability.--The design of 
                        each building for which a grant is provided 
                        under subparagraph (A)(ii) shall be made 
                        available to the public, and each such building 
                        shall be accessible to the public for tours and 
                        educational purposes.
            (6) Responsibilities of administrator.--In providing grants 
        for projects under this subsection, the Administrator shall--
                    (A) ensure, to the maximum extent practicable, 
                that--
                            (i) the demonstration grant program under 
                        this subsection includes a variety of projects 
                        with respect to--
                                    (I) geographical distribution;
                                    (II) innovative technologies used 
                                for the projects; and
                                    (III) nontraditional approaches 
                                (including low-impact development 
                                technologies) used for the projects; 
                                and
                            (ii) each category of project described in 
                        paragraph (5) is adequately represented;
                    (B) give higher priority to projects that--
                            (i) address multiple problems; and
                            (ii) are regionally applicable;
                    (C) ensure, to the maximum extent practicable, that 
                at least 1 community having a population of 10,000 or 
                fewer individuals receives a grant for each fiscal 
                year; and
                    (D) ensure that, for each fiscal year, no 
                municipality receives more than 25 percent of the total 
                amount of funds made available for the fiscal year to 
                provide grants under this subsection.
            (7) Cost sharing.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the non-Federal share of the total cost of a 
                project funded by a grant under this subsection shall 
                be not less than 20 percent.
                    (B) Waiver.--The Administrator may reduce or 
                eliminate the non-Federal share of the cost of a 
                project for reasons of affordability.
    (d) Incorporation of Results and Information.--
            (1) Technology transfer.--The Administrator, taking into 
        consideration the results of the projects carried out using 
        grants under subsections (a) and (c), shall--
                    (A) facilitate the adoption of technologies and 
                processes to promote increased water quality, drinking 
                water supply, and water use efficiency and 
                conservation; and
                    (B) collect and disseminate information, including 
                through the establishment of a publicly accessible 
                clearinghouse, regarding those technologies and 
                processes, including information on--
                            (i) incentives and impediments to 
                        development and commercialization;
                            (ii) best practices; and
                            (iii) anticipated increases in water 
                        quality, drinking water supply, and water use 
                        efficiency and conservation resulting from the 
                        implementation of specific technologies and 
                        processes.
            (2) Incorporation of results and information.--To the 
        maximum extent practicable, the Administrator shall incorporate 
        the results of, and information obtained from, successful 
        projects under this section into other programs administered by 
        the Administrator.
    (e) Reports.--
            (1) Reports from grant recipients.--A recipient of a grant 
        under this section shall submit to the Administrator, on the 
        date of completion of a project of the recipient and on each of 
        the dates that is 1, 2, and 3 years after that date, a report 
        that describes the effectiveness of the project.
            (2) Reports to congress.--Not later than 2 years after the 
        date of enactment of this Act, and not less frequently than 
        once every 2 years thereafter, the Administrator shall submit 
        to the Committee on Environment and Public Works of the Senate 
        and the Committees on Transportation and Infrastructure and 
        Energy and Commerce of the House of Representatives a report 
        describing--
                    (A) the findings of each recipient of a grant under 
                subsection (a) with respect to the identification of 
                any potential new technology or management approach 
                developed by the recipient; and
                    (B) the status and results of the grant program 
                under subsection (c).
    (f) Water Management Study and Report.--
            (1) Definitions.--In this subsection:
                    (A) Low-impact approach.--The term ``low-impact 
                approach'' means a strategy that manages rainfall at 
                the source using decentralized microscale controls to 
                mimic the predevelopment hydrology of the relevant site 
                by using a design technique that infiltrates, filters, 
                stores, evaporates, and detains runoff close to the 
                source.
                    (B) Soft path approach.--The term ``soft path 
                approach'' means a general framework that encompasses--
                            (i) increased efficiency of water use;
                            (ii) integration of water supply, 
                        wastewater treatment, and stormwater management 
                        systems; and
                            (iii) protection, restoration, and 
                        effective use of the natural capacities of 
                        ecosystems to provide clean water.
            (2) Study.--
                    (A) In general.--Not later than 60 days after the 
                date of enactment of this Act, the Administrator shall 
                enter into an arrangement with the National Academy of 
                Sciences under which the Academy shall conduct a study, 
                by not later than 2 years after that date, of 
                innovative, effective, and systematic approaches for 
                the management of water supply, wastewater, and 
                stormwater.
                    (B) Contents.--The study shall--
                            (i) be based on and enhance, to the maximum 
                        extent practicable, relevant studies previously 
                        conducted by the Academy;
                            (ii) focus in particular on soft-path 
                        approaches and low-impact approaches to the 
                        management described in subparagraph (A);
                            (iii) take into consideration the costs of 
                        each approach analyzed by the study;
                            (iv) examine and compare the state of 
                        research, technology development, and emerging 
                        practices in other developed and developing 
                        countries with those in the United States;
                            (v) identify and evaluate relevant system 
                        approaches for comprehensive water management, 
                        including the interrelationship of water 
                        systems with other major systems, such as 
                        energy and transportation systems;
                            (vi) identify priority research and 
                        development needs; and
                            (vii) assess implementation needs and 
                        barriers.
                    (C) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph $1,000,000 for the period of fiscal years 
                2010 through 2012.
            (3) Report.--
                    (A) In general.--Not later than 3 years after the 
                date of enactment of this Act, the Administrator shall 
                submit to the Committee on Environment and Public Works 
                of the Senate and the Committee on Science and 
                Technology of the House of Representatives a report 
                describing the key findings of the study under 
                paragraph (2).
                    (B) Inclusions.--The report under subparagraph (A) 
                shall include--
                            (i) an evaluation of relevant challenges 
                        and opportunities; and
                            (ii) recommendations for innovative and 
                        integrated solutions for use as a practical 
                        reference by water managers, planners, 
                        developers, scientists, engineers, 
                        nongovernmental organizations, Federal 
                        departments and agencies, and regulators.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $40,000,000 for each of fiscal 
years 2010 through 2014.

SEC. 303. AGRICULTURAL WATERSHED SUSTAINABILITY TECHNOLOGY GRANT 
              PROGRAM.

    (a) Definitions.--In this section:
            (1) Agricultural commodity.--The term ``agricultural 
        commodity'' means--
                    (A) agricultural, horticultural, viticultural, and 
                dairy products;
                    (B) livestock and the products of livestock;
                    (C) the products of poultry and bee raising;
                    (D) the products of forestry; and
                    (E) other commodities raised or produced on 
                agricultural sites, as determined to be appropriate by 
                the Secretary of Agriculture.
            (2) Agricultural project.--The term ``agricultural 
        project'' means an agricultural watershed sustainability 
        technology pilot project that, as determined by the 
        Administrator--
                    (A) is carried out at an agricultural site;
                    (B)(i) achieves demonstrable improvements in water 
                quality that meet or exceed those mandated by statutory 
                or regulatory requirements; or
                    (ii) improves water use efficiency; and
                    (C) will not substantially adversely affect 
                agricultural commodity production, yield, 
                profitability, or any other long-term environmental 
                medium, including air and groundwater resources.
            (3) Agricultural site.--The term ``agricultural site'' 
        means a farming or ranching operation of a producer in the 
        United States.
            (4) Producer.--The term ``producer'' means any person or 
        group of persons (including an irrigation district and a 
        drainage district) engaged in the production and sale of an 
        agricultural commodity that owns, or shares the ownership and 
        risk of loss of, the agricultural commodity.
            (5) Revolving fund.--The term ``revolving fund'' means an 
        agricultural watershed sustainability technology revolving 
        fund--
                    (A) that is established by a State using amounts 
                provided under subsection (b)(1);
                    (B) that is maintained and credited with 
                repayments; and
                    (C) the balance of which shall be available in 
                perpetuity for providing financial assistance.
    (b) Grants for Agricultural State Revolving Funds.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this section, the Administrator shall provide to 
        each eligible State described in paragraph (2) 1 or more 
        capitalization grants, that cumulatively equal no more than 
        $1,000,000 per State, for use in establishing, within an agency 
        of the State having jurisdiction over agriculture or 
        environmental quality, an agricultural watershed sustainability 
        technology revolving fund.
            (2) Eligible states.--An eligible State referred to in 
        paragraph (1) is a State that agrees, prior to receipt of a 
        capitalization grant under paragraph (1)--
                    (A) to establish, and deposit the funds from the 
                grant in, a revolving fund;
                    (B) to provide, at a minimum, a State share in an 
                amount equal to 20 percent of the capitalization grant;
                    (C) to use amounts in the revolving fund to make 
                loans to producers in accordance with subsection (c); 
                and
                    (D) to return amounts in the revolving fund if no 
                loan applications are granted within 2 years of the 
                receipt of the initial capitalization grant.
    (c) Loans to Producers.--
            (1) Use of funds.--A State that establishes a revolving 
        fund under subsection (b)(2) shall use amounts in the revolving 
        fund to provide loans to producers for use in designing and 
        constructing agricultural projects.
            (2) Maximum amount of loan.--The amount of a loan made to a 
        producer using funds from a revolving fund shall not exceed 
        $250,000, in the aggregate, for all agricultural projects 
        serving an agricultural site of the producer.
            (3) Conditions on loans.--A loan made to a producer using 
        funds from a revolving fund shall--
                    (A) have an interest rate that is not more than the 
                market interest rate, including an interest-free loan; 
                and
                    (B) be repaid to the revolving fund not later than 
                20 years after the date on which funds are initially 
                disbursed.
    (d) Requirements for Producers.--
            (1) In general.--A producer that seeks to receive a loan 
        from a revolving fund shall--
                    (A) submit to the State within the jurisdiction of 
                which the agricultural site of the producer is located 
                an application that--
                            (i) contains such information as the State 
                        may require; and
                            (ii) demonstrates, to the satisfaction of 
                        the State, that each project proposed to be 
                        carried out with funds from the loan is an 
                        agricultural project; and
                    (B) agree to expend all funds from a loan in an 
                expeditious and timely manner, as determined by the 
                State.
            (2) Maximum percentage of agricultural project cost.--
        Subject to subsection (c)(2), a producer that receives a loan 
        from a revolving fund may use funds from the loan to pay up to 
        100 percent of the cost of carrying out an agricultural 
        project.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000.

SEC. 304. STATE REVOLVING FUND REVIEW PROCESS.

    (a) In General.--As soon as practicable after the date of enactment 
of this Act, the Administrator shall--
            (1) consult with States, utilities, nonprofit 
        organizations, and other Federal agencies providing financial 
        assistance to identify ways to expedite and improve the 
        application and review process, for the provision of assistance 
        from--
                    (A) the State water pollution control revolving 
                funds established under title VI of the Federal Water 
                Pollution Control Act (33 U.S.C. 1381 et seq.); and
                    (B) the State drinking water treatment revolving 
                loan funds established under section 1452 of the Safe 
                Drinking Water Act (42 U.S.C. 300j-12);
            (2) take such administrative action as is necessary to 
        expedite and improve the process as the Administrator has 
        authority to take under existing law;
            (3) collect information relating to innovative approaches 
        taken by any State to simplify the application process of the 
        State, and provide the information to each State;
            (4) conduct an evaluation of the process used to develop 
        and carry out the needs survey under section 516(b)(1)(B) of 
        the Federal Water Pollution Control Act (33 U.S.C. 
        1375(b)(1)(B)), including recommendations for ways to 
        streamline the development and conduct of that survey; and
            (5) submit to Congress a report that, based on the 
        information identified under paragraph (1), contains 
        recommendations (including recommendations for legislation) to 
        facilitate further streamlining and improvement of the process.
    (b) Considerations.--In carrying out this section, the 
Administrator shall consider the needs of--
            (1) small treatment works and medium treatment works (as 
        defined in section 222 of the Federal Water Pollution Control 
        Act);
            (2) treatment works serving populations of 100,000 or more;
            (3) small public water systems described in section 1433(d) 
        of the Safe Drinking Water Act (42 U.S.C. 300i-2(d)); and
            (4) public water systems described in section 1433(a)(2) of 
        the Safe Drinking Water Act (42 U.S.C. 300i-2(a)(2)).

SEC. 305. COST OF SERVICE STUDY.

    (a) In General.--Not later than 2 years after the date of enactment 
of this Act, the Administrator shall enter an arrangement with the 
Academy under which the Academy shall complete and provide to the 
Administrator the results of a study of the means by which public water 
systems and treatment works selected by the Academy in accordance with 
subsection (c) meet the costs associated with operations, maintenance, 
capital replacement, and regulatory requirements.
    (b) Required Elements.--
            (1) Affordability.--The study shall, at a minimum--
                    (A) determine whether the rates at public water 
                systems and treatment works for communities included in 
                the study were established using a full-cost pricing 
                model;
                    (B) if a full-cost pricing model was not used, 
                identify any incentive rate systems that have been 
                successful in significantly reducing--
                            (i) per capita water demand;
                            (ii) the volume of wastewater flows;
                            (iii) the volume of stormwater runoff; or
                            (iv) the quantity of pollution generated by 
                        stormwater;
                    (C) identify a set of best industry practices that 
                public water systems and treatment works may use in 
                establishing a rate structure that--
                            (i) adequately addresses the true cost of 
                        services provided to consumers by public water 
                        systems and treatment works, including 
                        infrastructure replacement;
                            (ii) encourages water conservation; and
                            (iii) takes into consideration the needs of 
                        disadvantaged individuals and communities, as 
                        identified by the Administrator;
                    (D) identify existing standards for affordability 
                and the manner in which those standards are determined 
                and defined;
                    (E) determine the manner in which affordability 
                varies with respect to communities of different sizes 
                and in different regions; and
                    (F) determine the extent to which affordability 
                affects the decision of a community to increase public 
                water system and treatment works rates (including the 
                decision relating to the percentage by which those 
                rates should be increased).
            (2) Disadvantaged communities.--The study shall, at a 
        minimum--
                    (A) survey a cross-section of States representing 
                different sizes, demographics, and geographical 
                regions;
                    (B) describe, for each State described in 
                subparagraph (A), the definition of ``disadvantaged 
                community'' used in the State in carrying out projects 
                and activities under the Safe Drinking Water Act (42 
                U.S.C. 300f et seq.);
                    (C) review other means of identifying the meaning 
                of the term ``disadvantaged'', as that term applies to 
                communities;
                    (D) determine which factors and characteristics are 
                required for a community to be considered 
                ``disadvantaged''; and
                    (E) evaluate the degree to which factors such as a 
                reduction in the tax base over a period of time, a 
                reduction in population, the loss of an industrial 
                base, and the existence of areas of concentrated 
                poverty are taken into account in determining whether a 
                community is a disadvantaged community.
    (c) Selection of Communities.--The Academy shall select 
communities, the public water system and treatment works rate 
structures of which are to be studied under this section, that include 
a cross-section of communities representing various populations, income 
levels, demographics, and geographical regions.
    (d) Use of Results of Study.--On receipt of the results of the 
study, the Administrator shall--
            (1) submit the study to Congress;
            (2) submit a report that describes the results of the 
        study; and
            (3) make the results available to treatment works and 
        public water systems for use by the publicly owned treatment 
        works and public water systems, on a voluntary basis, in 
        determining whether 1 or more new approaches may be implemented 
        at facilities of the publicly owned treatment works and public 
        water systems.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $1,000,000 for each of fiscal 
years 2010 and 2014.

SEC. 306. EFFECTIVE UTILITY MANAGEMENT STRATEGIES.

    (a) Definitions.--In this section:
            (1) Effective utility management strategy.--The term 
        ``effective utility management strategy'' means a strategy for 
        the operation and management of a utility that, as determined 
        by the Administrator, incorporates the following attributes:
                    (A) Product quality.
                    (B) Stakeholder understanding and support.
                    (C) Customer satisfaction.
                    (D) Employee development.
                    (E) Operational optimization.
                    (F) Financial viability.
                    (G) Infrastructure stability.
                    (H) Operational resiliency.
                    (I) Community sustainability.
                    (J) Water resource adequacy.
            (2) Utility.--The term ``utility'' means--
                    (A) a treatment works (as defined in section 212 of 
                the Federal Water Pollution Control Act (33 U.S.C. 
                1292)); and
                    (B) a public water system (as defined in section 
                1401 of the Safe Drinking Water Act (42 U.S.C. 300f)).
    (b) Action by Administrator.--The Administrator may carry out 
training programs, provide technical assistance, and disseminate 
information regarding effective utility management strategies, 
including by--
            (1) providing seminars and workshops (including electronic-
        based seminars and workshops), conferences, and other 
        educational programs and developing curricula to advance 
        effective utility management strategies;
            (2) offering support and advice (including financial, 
        operational, and management advice) to utility operators and 
        managers regarding effective utility management strategies; and
            (3) publishing and disseminating manuals on best management 
        practices and other relevant information, success stories, and 
        lessons learned relating to effective utility management 
        strategies.
    (c) Partner Organizations.--In carrying out subsection (b), the 
Administrator may enter into cooperative agreements, as the 
Administrator determines to be appropriate, with--
            (1) stakeholder associations;
            (2) qualified nonprofit organizations; and
            (3) other relevant organizations, as determined by the 
        Administrator.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $1,000,000 for each of fiscal 
years 2010 through 2014.

SEC. 307. WATERSENSE PROGRAM.

    (a) Establishment.--There is established within the Environmental 
Protection Agency a program, to be known as the ``WaterSense Program'', 
to identify and promote voluntary approaches to increase water 
efficiency in the United States to reduce the strain on water and 
wastewater infrastructure and conserve water resources for future 
generations through voluntary labeling, promotion, or other forms of 
communication regarding water efficient products, programs, processes, 
buildings, landscapes, facilities, and services that meet the highest 
water conservation and performance standards.
    (b) Administration.--The WaterSense Program shall be carried out by 
the Administrator.
    (c) Duties.--In carrying out the WaterSense Program, the 
Administrator shall--
            (1) establish--
                    (A) a WaterSense label to be used for certain 
                items; and
                    (B) the procedure by which an item may be certified 
                to display the WaterSense label;
            (2) promote products displaying the WaterSense label as the 
        preferred technologies in the market place for--
                    (A) reducing water use; and
                    (B) ensuring product performance;
            (3) work to enhance public awareness of the WaterSense 
        label;
            (4) preserve the integrity of the WaterSense label by--
                    (A) developing specifications to ensure reliable 
                performance of WaterSense-labeled products, buildings, 
                landscapes, and services;
                    (B) overseeing WaterSense certifications made by 
                third parties;
                    (C) conducting reviews of the use of the WaterSense 
                label in the marketplace and taking corrective action 
                in any case in which misuse of the label is identified; 
                and
                    (D) carrying out such other measures as the 
                Administrator determines to be appropriate;
            (5) regularly research and update WaterSense product 
        criteria for each applicable category of products;
            (6) solicit comments from interested parties before 
        establishing or revising a WaterSense product category, 
        specification, or criterion (or before the effective date for 
        any such product category, specification, or criterion, as 
        applicable);
            (7) on adoption of a new or revised product category, 
        specification, or criterion, provide reasonable notice to 
        interested parties regarding--
                    (A) any change (including a change of effective 
                date) to the product category, specification, or 
                criterion;
                    (B) an explanation of the change; and
                    (C) as appropriate, responses to comments submitted 
                by interested parties regarding the product category, 
                specification, or criterion;
            (8) provide appropriate lead time, as determined by the 
        Administrator, before the applicable effective date for a new 
        or significant revision to a product category, specification, 
        or criterion, taking into account the timing requirements of 
        the manufacturing, product marketing, and distribution process 
        for the specific product, programs, processes, buildings, 
        landscapes, facilities, or services addressed; and
            (9) identify and, where appropriate, implement other 
        voluntary approaches in commercial, institutional, and 
        industrial sectors to improve water efficiency.
    (d) Annual Reports.--Not less frequently than once each year, the 
Administrator shall prepare and make publicly available a report 
describing the activities carried out under this section, including, to 
the maximum extent practicable--
            (1) available information regarding sales in each 
        WaterSense product category; and
            (2) the savings of water, energy, and capital costs of 
        water, wastewater, and stormwater infrastructure attributable 
        to the WaterSense program and each category of WaterSense 
        product, expressed on a national, regional, State, and 
        watershed level.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section--
            (1) $5,000,000 for each of fiscal years 2010 and 2011;
            (2) $7,500,000 for each of fiscal years 2012 and 2013; and
            (3) $10,000,000 for fiscal year 2014.

SEC. 308. PHARMACEUTICALS AND PERSONAL CARE PRODUCTS.

    Section 104 of the Federal Water Pollution Control Act (33 U.S.C. 
1254) is amended by adding at the end the following:
    ``(w) Presence of Pharmaceuticals and Personal Care Products in 
Waters of the United States.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Academy.--The term `Academy' means the 
                National Academy of Sciences.
                    ``(B) Pharmaceutical.--The term `pharmaceutical' 
                has the meaning given the term `drug' in section 201 of 
                the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
                321).
                    ``(C) Personal care product.--The term `personal 
                care product' has the meaning given the term `cosmetic' 
                in section 201 of the Federal Food, Drug, and Cosmetic 
                Act (21 U.S.C. 321).
            ``(2) Study.--The Administrator shall offer to enter into 
        an arrangement with the National Academy of Sciences under 
        which the Academy, in consultation with the Administrator, the 
        Secretary of Health and Human Services (acting through the 
        Commissioner of Food and Drugs), the Director of the United 
        States Geological Survey, the heads of other appropriate 
        Federal agencies (including the National Institute of 
        Environmental Health Sciences), and other interested 
        stakeholders (including manufacturers of pharmaceuticals and 
        personal care products), shall conduct a study on the presence 
        of pharmaceuticals and personal care products in the waters of 
        the United States.
            ``(3) Contents.--In conducting the study under paragraph 
        (2), the Academy shall--
                    ``(A) identify pharmaceuticals and personal care 
                products that have been detected in the waters of the 
                United States and the levels at which such 
                pharmaceuticals and personal care products have been 
                detected;
                    ``(B) identify the sources of pharmaceuticals and 
                personal care products in the waters of the United 
                States, including point sources and nonpoint sources of 
                pharmaceutical and personal care products; and
                    ``(C) evaluate--
                            ``(i) risks associated with the presence of 
                        pharmaceuticals and personal care products in 
                        the waters of the United States; and
                            ``(ii) based upon that assessment, the 
                        technical, economic, and legal feasibility of 
                        methods to control, limit, treat, or prevent 
                        that presence.
            ``(4) Report.--Not later than 2 years after the date of 
        enactment of this subsection, the Academy shall submit to the 
        Administrator and Congress a report on the results of the study 
        conducted under this subsection, including the potential 
        effects of pharmaceuticals and personal care products in the 
        waters of the United States on human health and aquatic 
        wildlife.''.

SEC. 309. FINANCING CAPABILITY GUIDANCE.

    Not later than 180 days after the date of enactment of this Act, 
for the purpose of updating the document entitled ``Combined Sewer 
Overflows-Guidance for Financial Capability Assessment and Schedule 
Development'' and dated February 1997, the Administrator shall--
            (1) collect and take into consideration information that 
        can be used to assess the financial condition of permittees 
        under the Federal Water Pollution Control Act (33 U.S.C. 1251 
        et seq.);
            (2) consult with the affected States, municipalities, and 
        other interested parties, as determined by the Administrator; 
        and
            (3) conduct a public outreach process.
                                                       Calendar No. 109

111th CONGRESS

  1st Session

                                S. 1005

                          [Report No. 111-47]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                             July 15, 2009

                       Reported with an amendment
```