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

111th CONGRESS
  1st Session
                                S. 1005

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

_______________________________________________________________________

                                 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,

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. Projects eligible for assistance.
Sec. 103. Affordability.
Sec. 104. Water pollution control revolving loan funds.
Sec. 105. Transferability of funds.
Sec. 106. Noncompliance.
Sec. 107. Negotiation of contracts.
Sec. 108. Allotment of funds.
Sec. 109. Authorization of appropriations.
Sec. 110. Sewer overflow control grants.
Sec. 111. Critical water infrastructure projects.
              TITLE II--SAFE DRINKING WATER INFRASTRUCTURE

Sec. 201. Drinking water technical assistance for communities.
Sec. 202. Preconstruction work.
Sec. 203. Priority system requirements.
Sec. 204. Affordability.
Sec. 205. Safe drinking water revolving loan funds.
Sec. 206. Other authorized activities.
Sec. 207. Authorization of appropriations.
Sec. 208. Negotiation of contracts.
Sec. 209. Critical drinking water infrastructure projects.
Sec. 210. 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. 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. 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 
                        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. 103. 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; 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. 104. 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. 105. TRANSFERABILITY OF FUNDS.

    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:
    ``(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. 106. NONCOMPLIANCE.

    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:
    ``(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. 107. NEGOTIATION OF CONTRACTS.

    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:
    ``(m) Negotiation of Contracts.--
            ``(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--
                    ``(A) a contract for architectural and engineering 
                services is negotiated under chapter 11 of title 40, 
                United States Code; or
                    ``(B) an equivalent State qualifications-based 
                requirement (as determined by the Governor of the 
                State).
            ``(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.''.

SEC. 108. 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.--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:

------------------------------------------------------------------------
                          ``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.
------------------------------------------------------------------------

    ``(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) 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)).
            ``(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).''.

SEC. 109. 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. 110. 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. 111. 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) 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. 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. 203. 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) 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;
                            ``(iv) a review of options for 
                        restructuring the public water system;
                            ``(v) demonstration of consistency with 
                        State, regional, and municipal watershed plans;
                            ``(vi) a water conservation plan consistent 
                        with guidelines developed for those plans by 
                        the Administrator under section 1455(a); and
                            ``(vii) approaches to improve the 
                        sustainability of the system, including--
                                    ``(I) water efficiency or 
                                conservation;
                                    ``(II) use of reclaimed water; and
                                    ``(III) actions to increase energy 
                                efficiency.''; and
            (3) in subparagraph (D) (as redesignated by paragraph (1)), 
        by striking ``periodically'' and inserting ``at least 
        biennially''.

SEC. 204. 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. 205. 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 ``4'' and 
                inserting ``6''; 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. 206. 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. 207. 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. 208. 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.--
            ``(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--
                    ``(A) a contract for architectural and engineering 
                services is negotiated under chapter 11 of title 40, 
                United States Code; or
                    ``(B) an equivalent State qualifications-based 
                requirement (as determined by the Governor of the 
                State).
            ``(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.''.

SEC. 209. 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. 210. 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.

    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) 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));
            (3) take such administrative action as is necessary to 
        expedite and improve the process as the Administrator has 
        authority to take under existing law;
            (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
            (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.

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.
                                 <all>
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