II 

Calendar No. 772

108TH CONGRESS 

2D SESSION S. 2550

[Report No. 108–386] 

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 

JUNE 21, 2004

Mr. CRAPO (for himself, Mr. INHOFE, and Ms. MURKOWSKI) introduced the 

following bill; which was read twice and referred to the Committee on Environment and Public Works 

OCTOBER 7, 2004

Reported by Mr. INHOFE, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

A BILL

To amend the Federal Water Pollution Control Act and 

the Safe Drinking Water Act to improve water and 

wastewater infrastructure in the United States.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘Water Infrastructure Financing Act’’. 

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

5 this Act is as follows:

Sec. 1. Short title; table of contents. 

TITLE I—WATER POLLUTION INFRASTRUCTURE 

Sec. 101. Technical assistance for rural and small 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. Grants program. 

Sec. 107. Costs of administering water pollution control revolving loan funds. 

Sec. 108. Allocation formula. 

Sec. 109. Authorization of appropriations. 

Sec. 110. Reports. 

TITLE II—SAFE DRINKING WATER INFRASTRUCTURE 

Sec. 201. Technical assistance for small centers. 

Sec. 202. Preconstruction work. 

Sec. 203. Affordability. 

Sec. 204. Safe drinking water revolving loan funds. 

Sec. 205. Grants program. 

Sec. 206. Other authorized activities. 

Sec. 207. Small system revolving loan fund. 

Sec. 208. Authorization of appropriations. 

TITLE III—MISCELLANEOUS 

Sec. 301. Definition of Administrator. 

Sec. 302. Demonstration grant program for water quality enhancement and 

management. 

Sec. 303. Cost of service study. 

Sec. 304. State revolving fund review process.
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1 TITLE I—WATER POLLUTION 

2 INFRASTRUCTURE 

3 SEC. 101. TECHNICAL ASSISTANCE FOR RURAL AND SMALL 

4 TREATMENT WORKS. 

5 Title II of the Federal Water Pollution Control Act is 

6 amended by adding after section 221 (33 U.S.C. 1301) 

7 the following: 

8 ‘‘SEC. 222. TECHNICAL ASSISTANCE FOR RURAL AND SMALL 

9 TREATMENT WORKS. 

10 ‘‘(a) DEFINITION OF QUALIFIED NONPROFIT TECH11 NICAL ASSISTANCE PROVIDER.—In this section, the term 

12 ‘qualified nonprofit technical assistance provider’ means a 

13 qualified nonprofit technical assistance provider of water 

14 and wastewater services to small rural communities that 

15 provide technical assistance to treatment works that— 

16 ‘‘(1) serve not more than 10,000 users; and 

17 ‘‘(2) are located in a rural area. 

18 ‘‘(b) GRANT PROGRAM.— 

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

20 make grants to qualified nonprofit technical assist21 ance providers— 

22 ‘‘(A) to assist small treatment works in 

23 planning, developing, and obtaining financing 

24 for eligible projects described in section 603(c); 
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1 ‘‘(B) to capitalize revolving loan funds to 

2 provide loans, in consultation with the State in 

3 which the assistance is provided, to rural and 

4 small municipalities for predevelopment costs 

5 (including costs for planning, design, associated 

6 preconstruction, and necessary activities for 

7 siting the facility and related elements) associ8 ated with wastewater infrastructure projects or 

9 short-term costs incurred for equipment re10 placement that is not part of regular operation 

11 and maintenance activities for existing waste12 water systems, so long as— 

13 ‘‘(i) any loan from the fund is made 

14 at or below market interest rate, for a 

15 term not to exceed 10 years; 

16 ‘‘(ii) the amount of a single loan does 

17 not exceed $100,000; 

18 ‘‘(iii) all loan repayments are credited 

19 to the fund; 

20 ‘‘(C) to provide technical assistance and 

21 training for rural and small publicly owned 

22 treatment works and decentralized wastewater 

23 treatment systems to enable those treatment 

24 works and systems to protect water quality and 
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1 achieve and maintain compliance with this Act; 

2 and 

3 ‘‘(D) to disseminate information to rural 

4 and small municipalities with respect to plan5 ning, design, construction, and operation of 

6 publicly owned treatment works and decentral7 ized wastewater treatment systems. 

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

9 out this subsection, the Administrator shall ensure, 

10 to the maximum extent practicable, that technical 

11 assistance provided using funds from a grant under 

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

13 ‘‘(3) CONSULTATION.—As a condition of receiv14 ing a grant under this subsection, a qualified non15 profit technical assistance provider shall consult with 

16 each State in which grant funds are to be expended 

17 or otherwise made available before the grant funds 

18 are expended or made available in the State. 

19 ‘‘(4) ANNUAL REPORT.—For each fiscal year, a 

20 qualified nonprofit technical assistance provider that 

21 receives a grant under this paragraph shall submit 

22 to the Administrator a report that— 

23 ‘‘(A) describes the activities of the quali24 fied nonprofit technical assistance provider 
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1 using grant funds received under this section 

2 for the fiscal year; and 

3 ‘‘(B) specifies the number of communities 

4 served, the size of those communities, and the 

5 type of financing provided. 

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

7 is authorized to be appropriated to carry out this sub8 section $25,000,000 for each of fiscal years 2005 through 

9 2009.’’. 

10 SEC. 102. PROJECTS ELIGIBLE FOR ASSISTANCE. 

11 Section 603 of the Federal Water Pollution Control 

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

13 (c) and inserting the following:

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

15 in each State water pollution control revolving fund shall 

16 be used only for— 

17 ‘‘(1) providing financial assistance to a munici18 pality, intermunicipal, interstate, or State agency, or 

19 private utility that principally treats municipal 

20 wastewater or domestic sewage, for construction (in21 cluding costs for planning, design, associated 

22 preconstruction, and necessary activities for siting 

23 the facility and related elements) of treatment works 

24 (as defined in section 212); 
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1 ‘‘(2) implementation of a management program 

2 established under section 319; 

3 ‘‘(3) development and implementation of a con4 servation and management plan under section 320; 

5 ‘‘(4) water conservation projects or activities 

6 the primary purpose of which is the protection, pres7 ervation, or enhancement of water quality, including 

8 through— 

9 ‘‘(A) piping or lining of an irrigation canal; 

10 ‘‘(B) recovery or recycling of wastewater or 

11 runoff from irrigation; 

12 ‘‘(C) irrigation scheduling; 

13 ‘‘(D) measurement or metering of water 

14 use; or 

15 ‘‘(E) improvement of on-field irrigation ef16 ficiency; 

17 ‘‘(5) reuse, reclamation, or recycling projects 

18 the primary purpose of which is the protection, pres19 ervation, or enhancement of water quality; 

20 ‘‘(6) projects to increase the security of waste21 water treatment works (excluding any expenditure 

22 for operations or maintenance); or 

23 ‘‘(7) measures to control municipal stormwater, 

24 the primary purpose of which is the preservation, 

25 protection, or enhancement of water quality.’’. 
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1 SEC. 103. AFFORDABILITY. 

2 Section 603 of the Federal Water Pollution Control 

3 Act (33 U.S.C. 1383) is amended— 

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

5 as subsections (f) through (i); and 

6 (2) by inserting after subsection (d) the fol7 lowing: 

8 ‘‘(e) TYPES OF ASSISTANCE FOR DISADVANTAGED

9 COMMUNITIES.— 

10 ‘‘(1) DEFINITION OF DISADVANTAGED COMMU11 NITY.—In this subsection, the term ‘disadvantaged 

12 community’ means the service area, or portion of a 

13 service area, of a treatment works that meets afford14 ability criteria established after public review and 

15 comment by the State in which the treatment works 

16 is located. 

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

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

19 State makes a loan from the water pollution control 

20 revolving loan fund in accordance with subsection (c) 

21 to a disadvantaged community or a community that 

22 the State expects to become a disadvantaged com23 munity as the result of a proposed project, the State 

24 may provide additional subsidization, including the 

25 forgiveness of the principal of the loan. 
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1 ‘‘(3) TOTAL AMOUNT OF SUBSIDIES.—For each 

2 fiscal year, the total amount of loan subsidies made 

3 by the State pursuant to this subsection may not ex4 ceed 30 percent of the amount of the capitalization 

5 grant received by the State for the fiscal year. 

6 ‘‘(4) EXTENDED TERM.—A State may provide 

7 an extended term for a loan if the extended term— 

8 ‘‘(A) terminates not later than the date 

9 that is 30 years after the date of completion of 

10 the project; and 

11 ‘‘(B) does not exceed the expected design 

12 life of the project. 

13 ‘‘(5) INFORMATION.—The Administrator may 

14 publish information to assist States in establishing 

15 affordability criteria described in paragraph (1).’’. 

16 SEC. 104. WATER POLLUTION CONTROL REVOLVING LOAN 

17 FUNDS. 

18 Section 603 of the Federal Water Pollution Control 

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

20 (h) (as redesignated by section 103) and inserting the fol21 lowing: 

22 ‘‘(h) PRIORITY SYSTEM REQUIREMENT.— 

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

24 ‘‘(A) RESTRUCTURING.—The term ‘re25 structuring’ means— 
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1 ‘‘(i) the consolidation of management 

2 functions or ownership with another facil3 ity; or 

4 ‘‘(ii) the formation of cooperative 

5 partnerships. 

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

10 area consisting of— 

11 ‘‘(i) collection sewers; 

12 ‘‘(ii) a centralized treatment plant 

13 using biological or physical/chemical treat14 ment processes; and 

15 ‘‘(iii) a direct point source discharge 

16 to surface water. 

17 ‘‘(2) PRIORITY SYSTEM.—A State shall provide 

18 financial assistance from the water pollution control 

19 revolving fund of the State only for projects de20 scribed in subsection (c) by amending the priority 

21 system established by the State under subsection (g) 

22 under which the State— 

23 ‘‘(A) gives more weight to an application 

24 for assistance by a treatment works if the appli25 cation includes— 
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1 ‘‘(i) an inventory of assets, including 

2 a description of the condition of those as3 sets; 

4 ‘‘(ii) a schedule for replacement of as5 sets; 

6 ‘‘(iii) a financing plan indicating 

7 sources of revenue from rate payers, 

8 grants, bonds, other loans, and other 

9 sources; 

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

12 ‘‘(v) a review of options for ap13 proaches other than a traditional waste14 water approach that may include actions 

15 or projects that treat or minimize sewage 

16 or urban stormwater discharges using—

17 ‘‘(I) decentralized or distributed 

18 stormwater controls; 

19 ‘‘(II) decentralized wastewater 

20 treatment; 

21 ‘‘(III) low impact development 

22 technologies; 

23 ‘‘(IV) stream buffers; 

24 ‘‘(V) wetland restoration; or 
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1 ‘‘(VI) actions to minimize the 

2 amount of and direct connections to 

3 impervious surfaces; or 

4 ‘‘(vi) such other information as the 

5 State determines to be appropriate; 

6 ‘‘(B) takes into consideration appropriate 

7 chemical, physical, and biological data that the 

8 State considers reasonably available and of suf9 ficient quality; 

10 ‘‘(C) provides for public notice and oppor11 tunity to comment on establishment of the sys12 tem and the summary under subparagraph (D); 

13 ‘‘(D) publishes not less than biennially in 

14 summary form a description of projects in the 

15 State that are eligible for assistance under this 

16 title that indicates—

17 ‘‘(i) the priority assigned to each 

18 project under the priority system of the 

19 State; and 

20 ‘‘(ii) the funding schedule for each 

21 project, to the extent that such information 

22 is available; and 

23 ‘‘(E) ensures that projects undertaken with 

24 assistance under this title are designed to 

25 achieve, in the estimation of the State, the opti-
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1 mum water quality management, consistent 

2 with the public health and water quality goals 

3 and requirements of this title.’’. 

4 SEC. 105. TRANSFERABILITY OF FUNDS. 

5 Section 603 of the Federal Water Pollution Control 

6 Act (33 U.S.C. 1383) (as amended by section 103) is 

7 amended by adding at the end the following: 

8 ‘‘(j) TRANSFER OF FUNDS.—

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

10 may—

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

12 of a capitalization grant made under this title; 

13 and 

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

15 provided to the State under section 1452 of the 

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

17 and 

18 ‘‘(B)(i) reserve in any year an amount that 

19 does not exceed the amount that may be re20 served under subparagraph (A) for that year 

21 from capitalization grants made under section 

22 1452 of that Act (42 U.S.C. 300j–12); and 

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

24 provided to the State under this title. 
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1 ‘‘(2) STATE MATCH.—Funds reserved under 

2 this subsection shall not be considered to be a State 

3 contribution for a capitalization grant required 

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

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

6 SEC. 106. GRANTS PROGRAM. 

7 Section 603 of the Federal Water Pollution Control 

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

9 amended by adding at the end the following: 

10 ‘‘(k) SETASIDE.—

11 ‘‘(1) $3,000,000,000 OR LESS MADE AVAIL12 ABLE.—

13 ‘‘(A) IN GENERAL.—For a fiscal year in 

14 which appropriations for State revolving loan 

15 funds do not exceed $3,000,000,000, a State 

16 shall set aside 10 percent of its capitalization 

17 grant under section 601(a) to provide grants to 

18 eligible users described in subsection (c) in the 

19 amount of not more than 55 percent of the 

20 total cost of a project for which a grant is 

21 made. 

22 ‘‘(B) WAIVER.—A State may waive the re23 quirement of subparagraph (A) if the average 

24 time for processing loan applications during the 

25 preceding 12 months did not exceed 90 days. 
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1 ‘‘(2) MORE THAN $3,000,000,000 MADE AVAIL2 ABLE.—For a fiscal year in which appropriations for 

3 State revolving loan funds exceed $3,000,000,000, a 

4 State shall set aside not more than 10 nor less than 

5 5 percent of its State revolving loan fund.’’. 

6 SEC. 107. COSTS OF ADMINISTERING WATER POLLUTION 

7 CONTROL REVOLVING LOAN FUNDS. 

8 Section 603(d)(7) of the Federal Water Pollution 

9 Control Act (33 U.S.C. 1383(d)(7)) is amended by strik10 ing ‘‘4 percent’’ and inserting ‘‘6 percent’’. 

11 SEC. 108. ALLOCATION FORMULA. 

12 Section 604 of the Federal Water Pollution Control 

13 Act (33 U.S.C. 1384) is amended—

14 (1) by redesignating subsections (b) and (c) as 

15 subsections (d) and (e), respectively; and 

16 (2) by striking subsection (a) and inserting the 

17 following: 

18 ‘‘(a) DEFINITIONS.—In this subsection: 

19 ‘‘(1) BASE FORMULA.—The term ‘base formula’ 

20 means a formula for the allotment of funds made 

21 available to carry out this section for a fiscal year 

22 to States in accordance with section 205(c)(3). 

23 ‘‘(2) NEEDS SURVEY.—The term ‘needs survey’ 

24 means a needs survey conducted under section 

25 516(2). 
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1 ‘‘(3) NEEDS SURVEY PERCENTAGE.— The term 

2 ‘needs survey percentage’, with respect to a State, 

3 means the percentage applicable to the State under 

4 a formula for the allotment of funds made available 

5 to carry out this section for a fiscal year to States 

6 in amounts determined by the Administrator based 

7 on the ratio that—

8 ‘‘(A) the needs of a State described in cat9 egories I through VII of the most recent needs 

10 survey; bears to

11 ‘‘(B) the needs of all States described in 

12 categories I through VII of the most recent 

13 needs survey. 

14 ‘‘(4) NEXT NEEDS SURVEY.—The term ‘next 

15 needs survey’ means the first needs survey that is 

16 completed after the 2000 needs survey. 

17 ‘‘(5) STATE.—The term ‘State’ means a State, 

18 the District of Columbia, and the Commonwealth of 

19 Puerto Rico. 

20 ‘‘(b) ALLOCATION OF FUNDS.— 

21 ‘‘(1) IN GENERAL.—Funds made available to 

22 carry out this section for a fiscal year shall be allo23 cated by the Administrator in accordance with this 

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

2 funds available, 1.5 percent shall be allocated to In3 dian tribes (within the meaning of section 518(c)). 

4 ‘‘(3) CERTAIN TERRITORIES AND FREELY ASSO5 CIATED STATES.—Of the total amount of funds 

6 made available, 0.25 percent shall be allocated to 

7 Guam, the Virgin Islands, Samoa, the Common8 wealth of the Northern Mariana Islands, the Fed9 erated States of Micronesia, the Republic of the 

10 Marshall Islands, and the Republic of Palau to be 

11 allocated among those territories and freely associ12 ated states, as determined by the Administrator. 

13 ‘‘(4) STATES.— 

14 ‘‘(A) TARGET ALLOCATION.—Each State 

15 shall have a target allocation, which— 

16 ‘‘(i) in the case of a State for which 

17 the needs survey percentage is less than 

18 1.0 percent, shall be 1.0 percent; and 

19 ‘‘(ii) in the case of any other State, 

20 shall be the needs survey percentage. 

21 ‘‘(B) LIMITATION ON GROWTH.— 

22 ‘‘(i) APPLICABILITY.—This subpara23 graph applies with respect to any fiscal 

24 year for which the amount of funds made 
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1 available to carry out this section is 

2 $3,150,000,000 or less. 

3 ‘‘(ii) STATES FOR WHICH THE NEEDS

4 SURVEY PERCENTAGE IS LESS THAN 1.0

5 PERCENT.—In the case of a State for 

6 which the needs survey percentage is 1.0 

7 percent or less, the growth in allocation in 

8 dollar terms relative to the base formula 

9 shall be limited to— 

10 ‘‘(I) 12 percent for fiscal year 

11 2005; 

12 ‘‘(II) 16 percent for fiscal year 

13 2006; 

14 ‘‘(III) 20 percent for fiscal year 

15 2007; 

16 ‘‘(IV) 24 percent for fiscal year 

17 2008; and 

18 ‘‘(V) 28 percent for fiscal year 

19 2009 and each fiscal year thereafter. 

20 ‘‘(iii) STATES FOR WHICH THE NEEDS

21 SURVEY PERCENTAGE IS 1.0 PERCENT OR

22 MORE.—In the case of a State for which 

23 the needs survey percentage is greater 

24 than 1.0 percent, the growth in allocation 
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1 in dollar terms relative to the base formula 

2 shall be limited to 0.0 percent. 

3 ‘‘(C) LIMITATION ON LOSS.— 

4 ‘‘(i) GROWTH OF LESS THAN 1.0 PER5 CENT.—A dollar amount that is not less 

6 than the dollar amount under the base for7 mula shall be allocated to States described 

8 in subparagraph (A)(i) but not described 

9 in subparagraph (D). 

10 ‘‘(ii) GROWTH OF 1.0 PERCENT OR

11 MORE.—A dollar amount that is equal to 

12 the dollar amount under the base formula 

13 shall be allocated to States described in 

14 subparagraph (A)(ii) but not described in 

15 subparagraph (D) that— 

16 ‘‘(I) in the most recent needs 

17 survey, reported higher needs in both 

18 categories V and VII than the State 

19 reported in the previous needs survey; 

20 ‘‘(II) grew in population by more 

21 than 10 percent between the 1990 

22 decenniel census and the 2000 

23 decenniel census; or 

24 ‘‘(III) has a population equal to 

25 4 percent or more of the total popu-
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1 lation of the United States, as re2 ported in the 2000 decenniel census. 

3 ‘‘(D) UNALLOCATED BALANCE.—The 

4 unallocated balance of available funds shall be 

5 allocated in equal parts to all States that, in 

6 the most recent needs survey, report higher 

7 total needs both in absolute dollar terms and as 

8 a percentage of total United States needs.’’. 

9 SEC. 109. AUTHORIZATION OF APPROPRIATIONS. 

10 The Federal Water Pollution Control Act is amended 

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

12 the following: 

13 ‘‘SEC. 607. AUTHORIZATION OF APPROPRIATIONS. 

14 ‘‘(a) IN GENERAL.—There are authorized to be ap15 propriated to carry out this title— 

16 ‘‘(1) $3,200,000,000 for each of fiscal years 

17 2005 and 2006; 

18 ‘‘(2) $3,600,000,000 for fiscal year 2007; 

19 ‘‘(3) $4,000,000,000 for fiscal year 2008; and 

20 ‘‘(4) $6,000,000,000 for fiscal year 2009. 

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

22 this section shall remain available until expended. 

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

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

25 this title for a fiscal year, the Administrator may reserve 
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1 not more than $1,000,000 per year to pay the costs of 

2 conducting needs surveys under section 516(2).’’. 

3 SEC. 110. REPORTS. 

4 Section 516 of the Federal Waste Pollution Control 

5 Act (33 U.S.C. 1375) is amended in the second sentence 

6 by striking ‘‘odd-numbered’’ and inserting ‘‘fourth’’. 

7 TITLE II—SAFE DRINKING 

8 WATER INFRASTRUCTURE 

9 SEC. 201. TECHNICAL ASSISTANCE FOR SMALL CENTERS. 

10 Section 1420(g) of the Safe Drinking Water Act (42 

11 U.S.C. 300g–9(g)) is amended by striking paragraph (4) 

12 and inserting the following:

13 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.—

14 There is authorized to be appropriated to carry out 

15 this subsection $2,000,000 for each of fiscal years 

16 2005 through 2009.’’. 

17 SEC. 202. PRECONSTRUCTION WORK. 

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

19 (42 U.S.C. 300j–12(a)(2)) is amended in the second sen20 tence—

21 (1) by striking ‘‘(not’’ and inserting ‘‘(including 

22 expenditures for planning, design, and associated 

23 preconstruction and for recovery for siting of the fa24 cility and related elements but not’’; and 
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1 (2) by inserting before the period at the end the 

2 following: ‘‘or to replace or rehabilitate aging collec3 tion, treatment, storage (including reservoirs), and 

4 distribution facilities of public water systems or pro5 vide for capital projects to upgrade the security of 

6 public water systems’’. 

7 SEC. 203. AFFORDABILITY. 

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

9 (42 U.S.C. 300j–12(d)(3)) is amended in the first sen10 tence by inserting ‘‘, or portion of a service area,’’ after 

11 ‘‘service area’’. 

12 SEC. 204. SAFE DRINKING WATER REVOLVING LOAN 

13 FUNDS. 

14 (a) IN GENERAL.—Section 1452(g) of the Safe 

15 Drinking Water Act (42 U.S.C. 300j–12(g)) is amended—

16 (1) in paragraph (2)—

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

18 and inserting ‘‘6’’; and 

19 (B) by striking ‘‘1419’’ and all that follows 

20 and inserting ‘‘1419.’’; and 

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

22 ‘‘(5) TRANSFER OF FUNDS.—

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

24 State may—
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1 ‘‘(i)(I) reserve not more than 33 per2 cent of a capitalization grant made under 

3 this section; and 

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

5 funds provided to the State under section 

6 601 of the Federal Water Pollution Con7 trol Act (33 U.S.C. 1381); and 

8 ‘‘(ii)(I) reserve for any year an 

9 amount that does not exceed the amount 

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

11 for that year from capitalization grants 

12 made under section 601 of that Act (33 

13 U.S.C. 1381); and 

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

15 funds provided to the State under this sec16 tion. 

17 ‘‘(B) STATE MATCH.—Funds reserved 

18 under this paragraph shall not be considered to 

19 be a State match of a capitalization grant re20 quired under this section or section 602(b) of 

21 the Federal Water Pollution Control Act (33 

22 U.S.C. 1382(b)).’’. 

23 (b) PRIORITY SYSTEM REQUIREMENTS.—Section 

24 1452(b)(3) of the Safe Drinking Water Act (42 U.S.C. 

25 300j–12(3)) is amended—
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1 (1) by redesignating subparagraph (B) as sub2 paragraph (C); 

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

4 the following: 

5 ‘‘(A) DEFINITIONS.—In this paragraph: 

6 ‘‘(i) RESTRUCTURING.—The term ‘re7 structuring’ means—

8 ‘‘(I) the consolidation of manage9 ment functions or ownership with an10 other facility; or 

11 ‘‘(II) the formation of cooperative 

12 partnerships. 

13 ‘‘(ii) TRADITIONAL APPROACH.—The 

14 term ‘traditional approach’ means a man15 aged system used to treat and distribute 

16 drinking water to an entire service area 

17 consisting of a centralized water system 

18 using biological or physical/chemical treat19 ment processes. 

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

21 plan shall provide, to the maximum extent prac22 ticable, that the State shall give more weight to 

23 an application for assistance by a community 

24 water system if the application includes—
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1 ‘‘(i) an inventory of assets, including 

2 a description of the condition of those as3 sets; 

4 ‘‘(ii) a schedule for replacement of as5 sets; 

6 ‘‘(iii) a financing plan indicating 

7 sources of revenue from rate payers, 

8 grants, bonds, other loans, and other 

9 sources; 

10 ‘‘(iv) a review of options for restruc11 turing the public water system; 

12 ‘‘(v) a review of options for ap13 proaches other than a traditional approach; 

14 or 

15 ‘‘(vi) such other information as the 

16 State determines to be appropriate.’’; and 

17 (3) in subparagraph (C) (as redesignated by 

18 paragraph (1)), by striking ‘‘periodically’’ and in19 serting ‘‘at least biennially’’. 

20 SEC. 205. GRANTS PROGRAM. 

21 Section 1452 of the Safe Drinking Water Act (42 

22 U.S.C. 300j–12) is amended by adding at the end the fol23 lowing: 

24 ‘‘(s) SETASIDE.—
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1 ‘‘(1) $2,500,000,000 OR LESS MADE AVAIL2 ABLE.—

3 ‘‘(A) IN GENERAL.—For a fiscal year in 

4 which appropriations for State revolving loan 

5 funds do not exceed $2,500,000,000, a State 

6 shall set aside 10 percent of its capitalization 

7 grant under subsection (a) to provide grants to 

8 eligible users described in subsection (c) of not 

9 more than 55 percent of the total cost of a 

10 project for which a grant is made. 

11 ‘‘(B) WAIVER.—A State may waive the re12 quirement of subparagraph (A) if the average

13 time for processing loan applications during the 

14 preceding 12 months did not exceed 90 days. 

15 ‘‘(2) MORE THAN $2,500,000,000 MADE AVAIL16 ABLE.—For a fiscal year in which appropriations for 

17 State revolving loan funds exceed $2,500,000,000, a 

18 State shall set aside not more than 5 nor less than 

19 2.5 percent of its State revolving loan fund.’’. 

20 SEC. 206. OTHER AUTHORIZED ACTIVITIES. 

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

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

23 before the period at the end the following: ‘‘(including im24 plementation of source water protection plans)’’. 
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1 SEC. 207. SMALL SYSTEM REVOLVING LOAN FUND. 

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

3 U.S.C. 300j–1(e)) is amended—

4 (1) by striking ‘‘The Administrator may pro5 vide’’ and inserting the following: 

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

7 provide’’; and 

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

9 ‘‘(2) SMALL SYSTEM REVOLVING LOAN FUND.—

10 ‘‘(A) IN GENERAL.—In addition to 

11 amounts provided under this section, each State 

12 may provide grants to qualified private, non13 profit entities to capitalize revolving funds to 

14 provide financing to eligible entities described in 

15 subparagraph (B) for—

16 ‘‘(i) predevelopment costs (including 

17 costs for planning, design, associated 

18 preconstruction, and necessary activities 

19 for siting the facility and related elements) 

20 associated with proposed water projects or 

21 with existing water systems; and 

22 ‘‘(ii) short-term costs incurred for re23 placement equipment, small-scale extension 

24 services, or other small capital projects 

25 that are not part of the regular operations 
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1 and maintenance activities of existing 

2 water systems. 

3 ‘‘(B) ELIGIBLE ENTITIES.—Only small 

4 water systems (as described in section 

5 1412(b)(4)(E)(ii)) shall be eligible for assist6 ance under this paragraph. 

7 ‘‘(C) MAXIMUM AMOUNT OF LOANS.—The 

8 amount of financing made to an eligible entity 

9 under this paragraph shall not exceed—

10 ‘‘(i) $100,000 for costs described in 

11 subparagraph (A)(i); and 

12 ‘‘(ii) $100,000 for costs described in 

13 subparagraph (A)(ii). 

14 ‘‘(D) TERM.—The term of a loan made to 

15 an eligible entity under this paragraph shall not 

16 exceed 10 years. 

17 ‘‘(E) ANNUAL REPORT.—For each fiscal 

18 year, a nonprofit entity that receives a grant 

19 under this paragraph shall submit to the Ad20 ministrator a report that—

21 ‘‘(i) describes the activities of non22 profit entities receiving grants reauthorized 

23 under this paragraph for the fiscal year; 

24 and 
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1 ‘‘(ii) specifies the number of commu2 nities served, the size of those commu3 nities, and the type of financing provided. 

4 ‘‘(F) AUTHORIZATION OF APPROPRIA5 TIONS.—There is authorized to be appropriated 

6 to carry out this subsection $25,000,000 for 

7 each of fiscal years 2005 through 2009.’’. 

8 SEC. 208. AUTHORIZATION OF APPROPRIATIONS. 

9 Section 1452 of the Safe Drinking Water Act (42 

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

11 and inserting the following: 

12 ‘‘(m) AUTHORIZATION OF APPROPRIATIONS.—

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

14 appropriated to carry out this section—

15 ‘‘(A) $1,500,000,000 for fiscal year 2005; 

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

17 years 2006 and 2007; 

18 ‘‘(C) $3,500,000,000 for fiscal year 2008; 

19 and 

20 ‘‘(D) $6,000,000,000 for fiscal year 2009. 

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

22 under this subsection shall remain available until ex23 pended. 

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

25 the amount made available under paragraph (1) to 
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1 carry out this section for a fiscal year, the Adminis2 trator may reserve not more than $1,000,000 per 

3 year to pay the costs of conducting needs surveys 

4 under subsection (h).’’. 

5 TITLE III—MISCELLANEOUS 

6 SEC. 301. DEFINITION OF ADMINISTRATOR. 

7 In this title, the term ‘‘Administrator’’ means the Ad8 ministrator of the Environmental Protection Agency. 

9 SEC. 302. DEMONSTRATION GRANT PROGRAM FOR WATER 

10 QUALITY ENHANCEMENT AND MANAGEMENT. 

11 (a) ESTABLISHMENT.—

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

13 the date of enactment of this Act, the Administrator 

14 shall establish a nationwide demonstration grant 

15 program to—

16 (A) promote innovations in technology and 

17 alternative approaches to water quality manage18 ment or water supply; and 

19 (B) reduce costs to municipalities incurred 

20 in complying with—

21 (i) the Federal Water Pollution Con22 trol Act (33 U.S.C. 1251 et seq.); and 

23 (ii) the Safe Drinking Water Act (42 

24 U.S.C. 300f et seq.). 
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1 (2) SCOPE.—The demonstration grant program 

2 shall consist of 10 projects each year, to be carried 

3 out in municipalities selected by the Administrator 

4 under subsection (b). 

5 (b) SELECTION OF MUNICIPALITIES.—

6 (1) APPLICATION.—A municipality that seeks 

7 to be selected to participate in the demonstration 

8 grant program shall submit to the Administrator a 

9 plan that—

10 (A) is developed in coordination with—

11 (i) the agency of the State having ju12 risdiction over water quality or water sup13 ply matters; and 

14 (ii) interested stakeholders;

15 (B) describes water impacts specific to 

16 urban or rural areas; 

17 (C) includes a strategy under which the 

18 municipality, through participation in the dem19 onstration grant program, could effectively— 

20 (i) address those problems; and 

21 (ii) achieve the same water quality 

22 goals as those goals that— 

23 (I) could be achieved using more 

24 traditional methods; or 

25 (II) are mandated under— 
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1 (aa) the Federal Water Pol2 lution Control Act (33 U.S.C. 

3 1251 et seq.); and 

4 (bb) the Safe Drinking 

5 Water Act (42 U.S.C. 300f et 

6 seq.); and 

7 (D) includes a schedule for achieving the 

8 goals of the municipality. 

9 (2) TYPES OF PROJECTS.—In carrying out the 

10 demonstration grant program, the Administrator 

11 shall provide grants for projects relating to water 

12 supply or water quality matters such as— 

13 (A) excessive nutrient growth; 

14 (B) urban or rural population pressure; 

15 (C) lack of an alternative water supply; 

16 (D) difficulties in water conservation and 

17 efficiency; 

18 (E) lack of support tools and technologies 

19 to rehabilitate and replace water supplies; 

20 (F) lack of monitoring and data analysis 

21 for water distribution systems; 

22 (G) nonpoint source water pollution (in23 cluding stormwater); 

24 (H) sanitary overflows; 

25 (I) combined sewer overflows; 
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1 (J) problems with naturally occurring con2 stituents of concern; and 

3 (K) problems with erosion and excess sedi4 ment. 

5 (3) RESPONSIBILITIES OF ADMINISTRATOR.—In 

6 providing grants for projects under this subsection, 

7 the Administrator shall— 

8 (A) ensure, to the maximum extent prac9 ticable, that— 

10 (i) the demonstration program in11 cludes a variety of projects with respect 

12 to— 

13 (I) geographic distribution; 

14 (II) innovative technologies used 

15 for the projects; and 

16 (III) nontraditional approaches 

17 (including low-impact development 

18 technologies) used for the projects; 

19 and 

20 (ii) each category of project described 

21 in paragraph (2) is adequately represented; 

22 (B) give higher priority to projects that— 

23 (i) address multiple problems; and 

24 (ii) are regionally applicable; 
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1 (C) ensure, to the maximum extent prac2 ticable, that at least 1 community having a pop3 ulation of 10,000 or fewer individuals receives 

4 a grant each fiscal year; and 

5 (D) ensure that, for each fiscal year, no 

6 municipality receives more than 25 percent of 

7 the total amount of funds made available for 

8 the fiscal year to provide grants under this sec9 tion. 

10 (4) COST SHARING.— 

11 (A) IN GENERAL.—Except as provided in 

12 subparagraph (B), the non-Federal share of the 

13 total cost of a project funded by a grant under 

14 this section shall be not less than 20 percent. 

15 (B) WAIVER.—The Administrator may re16 duce or eliminate the non-Federal share of the 

17 cost of a project for reasons of affordability. 

18 (c) REPORTS.— 

19 (1) REPORTS FROM GRANT RECIPIENTS.—A re20 cipient of a grant under this section shall submit to 

21 the Administrator, on the date of completion of a 

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

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

24 describes the effectiveness of the project. 
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1 (2) REPORTS TO CONGRESS.—Not later than 2 

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

3 every 2 years thereafter, the Administrator shall 

4 submit to the Committee on Environment and Pub5 lic Works of the Senate and the Committee on 

6 Transportation and Infrastructure and the Com7 mittee on Energy and Commerce of the House of 

8 Representatives a report that describes the status 

9 and results of the demonstration program. 

10 (d) INCORPORATION OF RESULTS AND INFORMA11 TION.—To the maximum extent practicable, the Adminis12 trator shall incorporate the results of, and information ob13 tained from, successful projects under this section into 

14 programs administered by the Administrator. 

15 (e) RESEARCH AND DEVELOPMENT.— 

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

17 the date of enactment of this Act, the Administrator 

18 shall, through a competitive process, award grants 

19 and enter into contracts and cooperative agreements 

20 for research and development on the use of innova21 tive and alternative technologies to improve water 

22 quality or drinking water supply. 

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

24 subsection, the Administrator may select projects re-
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1 lating to such matters as innovative or alternative 

2 technologies, approaches, practices, or methods— 

3 (A) to increase the effectiveness and effi4 ciency of public water supply systems, includ5 ing— 

6 (i) source water protection; 

7 (ii) water use reduction; 

8 (iii) water reuse; 

9 (iv) water treatment; 

10 (v) water distribution and collection 

11 systems; and 

12 (vi) water security; 

13 (B) to encourage the use of innovative or 

14 alternative technologies or approaches relating 

15 to water supply or availability; or

16 (C) to increase the effectiveness and effi17 ciency of treatment works, including— 

18 (i) methods of collecting, treating, dis19 persing, reusing, reclaiming, and recycling 

20 wastewater; 

21 (ii) system design; 

22 (iii) nonstructural alternatives; 

23 (iv) decentralized approaches; 

24 (v) assessment; 

25 (vi) water efficiency; and 
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1 (vii) wastewater security. 

2 (3) RECIPIENTS.—Grant recipients and parties 

3 to contracts or cooperative agreements under this 

4 subsection may be research institutions or consortia 

5 or educational institutions or consortia. 

6 (4) AUTHORIZATION OF APPROPRIATIONS.—

7 There is authorized to be appropriated to carry out 

8 this subsection $20,000,000 for each of fiscal years 

9 2005 through 2009. 

10 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

11 authorized to be appropriated to carry out this section 

12 (other than subsection (e)) $20,000,000 for each of fiscal 

13 years 2005 through 2009. 

14 SEC. 303. COST OF SERVICE STUDY. 

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

16 date of enactment of this Act, the Administrator shall 

17 enter into a contract with the National Academy of 

18 Sciences for, and the National Academy of Sciences shall 

19 complete and provide to the Administrator the results of, 

20 a study of the means by which public water systems and 

21 treatment works selected by the Academy in accordance 

22 with subsection (c) meet the costs associated with oper23 ations, maintenance, capital replacement, and regulatory 

24 requirements. 

25 (b) REQUIRED ELEMENTS.— 
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1 (1) AFFORDABILITY.—The study shall, at a 

2 minimum— 

3 (A) identify existing standards for afford4 ability; 

5 (B) determine the manner in which those 

6 standards are determined and defined; 

7 (C) determine the manner in which afford8 ability varies with respect to communities of 

9 different sizes and in different regions; and 

10 (D) determine the extent to which afford11 ability affects the decision of a community to 

12 increase public water system and treatment 

13 works rates (including the decision relating to 

14 the percentage by which those rates should be 

15 increased). 

16 (2) DISADVANTAGED COMMUNITIES.—The 

17 study shall, at a minimum— 

18 (A) survey a cross-section of States rep19 resenting different sizes, demographics, and 

20 geographical regions; 

21 (B) describe, for each State described in 

22 subparagraph (A), the definition of ‘‘disadvan23 taged community’’ used in the State in carrying 

24 out projects and activities under the Safe 

25 Drinking Water Act (42 U.S.C. 300f et seq.); 
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1 (C) review other means of identifying the 

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

3 term applies to communities; 

4 (D) determine which factors and character5 istics are required for a community to be con6 sidered ‘‘disadvantaged’’; and 

7 (E) evaluate the degree to which factors 

8 such as a reduction in the tax base over a pe9 riod of time, a reduction in population, the loss 

10 of an industrial base, and the existence of areas 

11 of concentrated poverty are taken into account 

12 in determining whether a community is a dis13 advantaged community. 

14 (c) SELECTION OF COMMUNITIES.—The National 

15 Academy of Sciences shall select communities, the public 

16 water system and treatment works rate structures of 

17 which are to be studied under this section, that include 

18 a cross section of communities representing various popu19 lations, income levels, demographics, and geographical re20 gions. 

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

22 results of the study, the Administrator shall— 

23 (1) submit to Congress a report that describes 

24 the results of the study; and 
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1 (2) make the results available to treatment 

2 works and public water systems for use by the pub3 licly owned treatment works and public water sys4 tems, on a voluntary basis, in determining whether 

5 1 or more new approaches may be implemented at 

6 facilities of the publicly owned treatment works and 

7 public water systems. 

8 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

9 authorized to be appropriated to carry out this section 

10 $1,000,000 for each of fiscal years 2005 and 2006. 

11 SEC. 304. STATE REVOLVING FUND REVIEW PROCESS. 

12 As soon as practicable after the date of enactment 

13 of this Act, the Administrator shall— 

14 (1) consult with States, utilities, and other Fed15 eral agencies providing financial assistance to iden16 tify ways to expedite and improve the application 

17 and review process for the provision of assistance 

18 from— 

19 (A) the State water pollution control re20 volving funds established under title VI of the 

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

22 1381 et seq.); and 

23 (B) the State drinking water treatment re24 volving loan funds established under section 
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1 1452 of the Safe Drinking Water Act (42 

2 U.S.C. 300j–12); and 

3 (2) take such administrative action as is nec4 essary to expedite and improve the process as the 

5 Administrator has authority to take under existing 

6 law; and 

7 (3) submit to Congress a report that, based on 

8 the information identified under paragraph (1), con9 tains recommendations for legislation to facilitate 

10 further streamlining and improvement of the proc11 ess.

12 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

14 ‘‘Water Infrastructure Financing Act’’. 

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

16 Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—WATER POLLUTION INFRASTRUCTURE 

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

Sec. 102. Projects eligible for assistance.

Sec. 103. Water pollution control revolving loan funds.

Sec. 104. Affordability.

Sec. 105. Water pollution control revolving loan funds.

Sec. 106. Transferability of funds.

Sec. 107. Grants program.

Sec. 108. Costs of administering water pollution control revolving loan funds.

Sec. 109. Allocation formula.

Sec. 110. Authorization of appropriations.

Sec. 111. Reports.

Sec. 112. Pilot program for alternative water source projects.

Sec. 113. Wet weather grants. 

Sec. 114. Technical correction. 
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TITLE II—SAFE DRINKING WATER INFRASTRUCTURE 

Sec. 201. Technical assistance for small centers.

Sec. 202. Labor standards.

Sec. 203. Preconstruction work.

Sec. 204. Affordability.

Sec. 205. Safe drinking water revolving loan funds.

Sec. 206. Grants program.

Sec. 207. Other authorized activities.

Sec. 208. Small system revolving loan funds.

Sec. 209. Authorization of appropriations.

Sec. 210. Removal of lead from drinking water in schools and in the District of 

Columbia. 

Sec. 211. Small public water system assistance program. 

Sec. 212. Small public water system assistance program. 

TITLE III—MISCELLANEOUS 

Sec. 301. Definition of Administrator.

Sec. 302. Demonstration grant program for water quality enhancement and management.

Sec. 303. Cost of service study.

Sec. 304. State revolving fund review process.

Sec. 305. Southeast Colorado safe drinking water supply.

Sec. 306. Assessment of perchlorate contamination. 

Sec. 307. National estuary program.

Sec. 308. Sewage control technology grant program. 

Sec. 309. Special water resources study.

1 TITLE I—WATER POLLUTION 

2 INFRASTRUCTURE 

3 SEC. 101. TECHNICAL ASSISTANCE FOR RURAL AND SMALL 

4 TREATMENT WORKS. 

5 Title II of the Federal Water Pollution Control Act is 

6 amended by adding at the end the following: 

7 ‘‘SEC. 222. TECHNICAL ASSISTANCE FOR RURAL AND SMALL 

8 TREATMENT WORKS. 

9 ‘‘(a) DEFINITION OF QUALIFIED NONPROFIT TECH10 NICAL ASSISTANCE PROVIDER.—In this section, the term 

11 ‘qualified nonprofit technical assistance provider’ means a 

12 qualified nonprofit technical assistance provider of water 
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1 and wastewater services to small rural communities that 

2 provides technical assistance to treatment works that— 

3 ‘‘(1) serve not more than 10,000 users; and 

4 ‘‘(2) are located in a rural area. 

5 ‘‘(b) GRANT PROGRAM.— 

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

7 make grants to qualified nonprofit technical assist8 ance providers— 

9 ‘‘(A) to assist small treatment works in 

10 planning, developing, and obtaining financing 

11 for eligible projects described in section 603(c); 

12 ‘‘(B) to capitalize revolving loan funds to 

13 provide loans, in consultation with the State in 

14 which the assistance is provided, to rural and 

15 small municipalities for predevelopment costs 

16 (including costs for planning, design, associated 

17 preconstruction, and necessary activities for 

18 siting the facility and related elements) associ19 ated with wastewater infrastructure projects or 

20 short-term costs incurred for equipment replace21 ment that is not part of regular operation and 

22 maintenance activities for existing wastewater 

23 systems, if— 
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1 ‘‘(i) any loan from the fund is made at 

2 or below market interest rate, for a term not 

3 to exceed 10 years; 

4 ‘‘(ii) the amount of a single loan does 

5 not exceed $100,000; and 

6 ‘‘(iii) all loan repayments are credited 

7 to the fund; 

8 ‘‘(C) to provide technical assistance and 

9 training for rural and small publicly owned 

10 treatment works and decentralized wastewater 

11 treatment systems to enable those treatment 

12 works and systems to protect water quality and 

13 achieve and maintain compliance with this Act; 

14 and 

15 ‘‘(D) to disseminate information to rural 

16 and small municipalities with respect to plan17 ning, design, construction, and operation of pub18 licly owned treatment works and decentralized 

19 wastewater treatment systems. 

20 ‘‘(2) DISTRIBUTION OF GRANT.—In carrying out 

21 this subsection, the Administrator shall ensure, to the 

22 maximum extent practicable, that technical assistance 

23 provided using funds from a grant under paragraph 

24 (1) is made available in each State. 
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1 ‘‘(3) CONSULTATION.—As a condition of receiv2 ing a grant under this subsection, a qualified non3 profit technical assistance provider shall consult with 

4 each State in which grant funds are to be expended 

5 or otherwise made available before the grant funds are 

6 expended or made available in the State. 

7 ‘‘(4) ANNUAL REPORT.—For each fiscal year, a 

8 qualified nonprofit technical assistance provider that 

9 receives a grant under this subsection shall submit to 

10 the Administrator a report that— 

11 ‘‘(A) describes the activities of the qualified 

12 nonprofit technical assistance provider using 

13 grant funds received under this subsection for the 

14 fiscal year; and 

15 ‘‘(B) specifies—

16 ‘‘(i) the number of communities served; 

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

18 and 

19 ‘‘(iii) the type of financing provided by 

20 the qualified nonprofit technical assistance 

21 provider. 

22 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There is 

23 authorized to be appropriated to carry out this section 

24 $25,000,000 for each of fiscal years 2005 through 2009.’’. 
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1 SEC. 102. PROJECTS ELIGIBLE FOR ASSISTANCE. 

2 Section 603 of the Federal Water Pollution Control Act 

3 (33 U.S.C. 1383) is amended by striking subsection (c) and 

4 inserting the following: 

5 ‘‘(c) PROJECTS ELIGIBLE FOR ASSISTANCE.—

6 ‘‘(1) REQUIREMENTS.—A project shall be eligible 

7 to receive funding, in whole or in part, from a State 

8 water pollution control revolving fund under this sec9 tion only if the project meets the requirements of sec10 tion 513. 

11 ‘‘(2) USE OF FUNDS.—Funds in each State 

12 water pollution control revolving fund shall be used 

13 only for—

14 ‘‘(A) providing financial assistance to a 

15 municipality, intermunicipal, interstate, or 

16 State agency, or private utility that principally 

17 treats municipal wastewater or domestic sewage, 

18 for construction (including costs for planning, 

19 design, associated preconstruction, and necessary 

20 activities for siting the facility and related ele21 ments) of treatment works (as defined in section 

22 212); 

23 ‘‘(B) implementation of a management pro24 gram established under section 319; 
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1 ‘‘(C) development and implementation of a 

2 conservation and management plan under sec3 tion 320; 

4 ‘‘(D) water conservation projects or activi5 ties the primary purpose of which is the protec6 tion, preservation, or enhancement of water qual7 ity, including through— 

8 ‘‘(i) piping or lining of an irrigation 

9 canal; 

10 ‘‘(ii) recovery or recycling of waste11 water or runoff from irrigation; 

12 ‘‘(iii) irrigation scheduling; 

13 ‘‘(iv) measurement or metering of 

14 water use; or 

15 ‘‘(v) improvement of on-field irrigation 

16 efficiency; 

17 ‘‘(E) providing financial assistance to a 

18 municipality or an intermunicipal, interstate, or 

19 State agency for reuse, reclamation, or recycling 

20 projects the primary purpose of which is the pro21 tection, preservation, or enhancement of water 

22 quality; 

23 ‘‘(F) providing financial assistance to a 

24 municipality or an intermunicipal, interstate, or 

25 State agency for projects to increase the security 
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1 of wastewater treatment works (excluding any 

2 expenditure for operations or maintenance); or 

3 ‘‘(G) providing financial assistance to a 

4 municipality or an intermunicipal, interstate, or 

5 State agency for measures to control municipal 

6 stormwater, the primary purpose of which is the 

7 preservation, protection, or enhancement of 

8 water quality.’’. 

9 SEC. 103. WATER POLLUTION CONTROL REVOLVING LOAN 

10 FUNDS. 

11 Section 603(d) of the Federal Water Pollution Control 

12 Act (33 U.S.C. 1383(d)) is amended— 

13 (1) in paragraph (6), by striking ‘‘and’’ at the 

14 end; 

15 (2) in paragraph (7), by striking the period at 

16 the end and inserting ‘‘; and’’; and 

17 (3) by adding at the end the following: 

18 ‘‘(8) to carry out a project under paragraph (2) 

19 or (3) of section 601(a), which may be— 

20 ‘‘(A) operated by a municipal, intermunic21 ipal, or interstate entity, State, public or private 

22 utility, corporation, partnership, association, or 

23 nonprofit agency; and 
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1 ‘‘(B) used to make loans that will be fully 

2 amortized not later than 30 years after the date 

3 of the completion of the project.’’. 

4 SEC. 104. AFFORDABILITY. 

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

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

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

8 as subsections (f) through (i), respectively; and 

9 (2) by inserting after subsection (d) the fol10 lowing: 

11 ‘‘(e) TYPES OF ASSISTANCE FOR DISADVANTAGED

12 COMMUNITIES.— 

13 ‘‘(1) DEFINITION OF DISADVANTAGED COMMU14 NITY.—In this subsection, the term ‘disadvantaged 

15 community’ means the service area, or portion of a 

16 service area, of a treatment works that meets afford17 ability criteria established after public review and 

18 comment by the State in which the treatment works 

19 is located. 

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

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

22 State makes a loan from the water pollution control 

23 revolving loan fund in accordance with subsection (c) 

24 to a disadvantaged community or a community that 

25 the State expects to become a disadvantaged commu-
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1 nity as the result of a proposed project, the State may 

2 provide additional subsidization, including the for3 giveness of the principal of the loan. 

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

5 fiscal year, the total amount of loan subsidies made 

6 by the State pursuant to this subsection may not ex7 ceed 30 percent of the amount of the capitalization 

8 grant received by the State for the fiscal year. 

9 ‘‘(4) EXTENDED TERM.—A State may provide 

10 an extended term for a loan if the extended term— 

11 ‘‘(A) terminates not later than the date that 

12 is 30 years after the date of completion of the 

13 project; and 

14 ‘‘(B) does not exceed the expected design life 

15 of the project. 

16 ‘‘(5) INFORMATION.—The Administrator may 

17 publish information to assist States in establishing 

18 affordability criteria described in paragraph (1).’’.

19 (b) CONFORMING AMENDMENT.—Section 221(d) of the 

20 Federal Water Pollution Control Act (33 U.S.C. 1301(d)) 

21 is amended in the second sentence by striking ‘‘603(h)’’ and 

22 inserting ‘‘603(i)’’. 
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1 SEC. 105. WATER POLLUTION CONTROL REVOLVING LOAN 

2 FUNDS. 

3 Section 603 of the Federal Water Pollution Control Act 

4 (33 U.S.C. 1383) is amended by striking subsection (h) (as 

5 redesignated by section 104) and inserting the following: 

6 ‘‘(h) PRIORITY SYSTEM REQUIREMENT.— 

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

8 ‘‘(A) RESTRUCTURING.—The term ‘restruc9 turing’ means— 

10 ‘‘(i) the consolidation of management 

11 functions or ownership with another facil12 ity; or 

13 ‘‘(ii) the formation of cooperative part14 nerships. 

15 ‘‘(B) TRADITIONAL WASTEWATER AP16 PROACH.—The term ‘traditional wastewater ap17 proach’ means a managed system used to collect

18 and treat wastewater from an entire service area 

19 consisting of— 

20 ‘‘(i) collection sewers; 

21 ‘‘(ii) a centralized treatment plant 

22 using biological, physical, or chemical treat23 ment processes; and 

24 ‘‘(iii) a direct point source discharge to 

25 surface water. 
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1 ‘‘(2) PRIORITY SYSTEM.—A State shall establish 

2 a system for providing financial assistance from the 

3 water pollution control revolving fund of the State 

4 under which the State—

5 ‘‘(A) gives more weight to an application 

6 for assistance by a treatment works if the appli7 cation includes such other information as the 

8 State determines to be appropriate and— 

9 ‘‘(i) an inventory of assets, including a 

10 description of the condition of those assets; 

11 ‘‘(ii) a schedule for replacement of as12 sets; 

13 ‘‘(iii) a financing plan indicating 

14 sources of revenue from rate payers, grants, 

15 bonds, other loans, and other sources; 

16 ‘‘(iv) a review of options for restruc17 turing the treatment works; or 

18 ‘‘(v) a review of options for approaches 

19 other than a traditional wastewater ap20 proach that may include actions or projects 

21 that treat or minimize sewage or urban 

22 stormwater discharges using— 

23 ‘‘(I) decentralized or distributed 

24 stormwater controls; 
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1 ‘‘(II) decentralized wastewater 

2 treatment; 

3 ‘‘(III) low impact development 

4 technologies; 

5 ‘‘(IV) stream buffers; 

6 ‘‘(V) wetland restoration; or 

7 ‘‘(VI) actions to minimize the 

8 amount of and direct connections to 

9 impervious surfaces; 

10 ‘‘(B) takes into consideration appropriate 

11 chemical, physical, and biological data that the 

12 State considers reasonably available and of suffi13 cient quality; 

14 ‘‘(C) provides for public notice and oppor15 tunity to comment on establishment of the sys16 tem and the summary under subparagraph (D); 

17 ‘‘(D) publishes not less than biennially in 

18 summary form a description of projects in the 

19 State that are eligible for assistance under this 

20 title that indicates— 

21 ‘‘(i) the priority assigned to each 

22 project under the priority system of the 

23 State; and 
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1 ‘‘(ii) the funding schedule for each 

2 project, to that extent the such information 

3 is available; and 

4 ‘‘(E) ensures that projects undertaken with 

5 assistance under this title are designed to 

6 achieve, in the estimation of the State, the opti7 mum water quality management, consistent with 

8 the public health and water quality goals and re9 quirements of this title.’’. 

10 SEC. 106. TRANSFERABILITY OF FUNDS. 

11 Section 603 of the Federal Water Pollution Control Act 

12 (33 U.S.C. 1383) (as amended by section 104(1)) is amend13 ed by adding at the end the following: 

14 ‘‘(j) TRANSFER OF FUNDS.— 

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

16 may— 

17 ‘‘(A)(i) reserve not more than 33 percent of 

18 a capitalization grant made under this title; and 

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

20 provided to the State under section 1452 of the 

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

22 and 

23 ‘‘(B)(i) reserve for any year an amount that 

24 does not exceed the amount that may be reserved 

25 under subparagraph (A) for that year from cap-
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1 italization grants made under section 1452 of 

2 that Act (42 U.S.C. 300j–12); and 

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

4 provided to the State under this title. 

5 ‘‘(2) STATE MATCH.—Funds reserved under this 

6 subsection shall not be considered to be a State con7 tribution for a capitalization grant required under 

8 this title or section 1452(b) of the Safe Drinking 

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

10 SEC. 107. GRANTS PROGRAM. 

11 Section 603 of the Federal Water Pollution Control Act 

12 (33 U.S.C. 1383) (as amended by section 106) is amended 

13 by adding at the end the following: 

14 ‘‘(k) SET-ASIDE.— 

15 ‘‘(1) $3,000,000,000 OR LESS MADE AVAIL16 ABLE.— 

17 ‘‘(A) IN GENERAL.—In the case of a fiscal 

18 year for which appropriations for State revolv19 ing loan funds do not exceed $3,000,000,000, a 

20 State shall set aside 10 percent of the capitaliza21 tion grant of the State under section 601(a) to 

22 provide grants to eligible users described in sub23 section (c) in the amount of not more than 55 

24 percent of the total cost of a project for which a 

25 grant is made. 
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1 ‘‘(B) WAIVER.—A State may waive the re2 quirement of subparagraph (A) if the average 

3 time for processing loan applications during the 

4 preceding 12 months did not exceed 90 days. 

5 ‘‘(2) MORE THAN $3,000,000,000 MADE AVAIL6 ABLE.—In the case of a fiscal year for which appro7 priations for State revolving loan funds exceed 

8 $3,000,000,000, a State shall set aside not more than 

9 10 nor less than 5 percent of the State revolving loan 

10 fund of the State.’’. 

11 SEC. 108. COSTS OF ADMINISTERING WATER POLLUTION 

12 CONTROL REVOLVING LOAN FUNDS. 

13 Section 603(d)(7) of the Federal Water Pollution Con14 trol Act (33 U.S.C. 1383(d)(7)) is amended by striking ‘‘4 

15 percent’’ and inserting ‘‘6 percent’’. 

16 SEC. 109. ALLOCATION FORMULA. 

17 Section 604 of the Federal Water Pollution Control Act 

18 (33 U.S.C. 1384) is amended— 

19 (1) by redesignating subsections (b) and (c) as 

20 subsections (c) and (d), respectively;

21 (2) by striking subsection (a) and inserting the 

22 following: 

23 ‘‘(a) DEFINITIONS.—In this subsection: 

24 ‘‘(1) BASE FORMULA.—The term ‘base formula’ 

25 means the formula for the allotment of funds made 
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1 available to carry out this section for a fiscal year to 

2 States in accordance with section 205(c)(3). 

3 ‘‘(2) NEEDS SURVEY.—The term ‘needs survey’ 

4 means a needs survey conducted under section 516(2). 

5 ‘‘(3) NEEDS SURVEY PERCENTAGE.—The term 

6 ‘needs survey percentage’, with respect to a State, 

7 means the percentage applicable to the State under a 

8 formula for the allotment of funds made available to 

9 carry out this section for a fiscal year to States in 

10 amounts determined by the Administrator based on 

11 the ratio that— 

12 ‘‘(A) the needs of a State described in cat13 egories I through VII of the most recent needs 

14 survey; bears to 

15 ‘‘(B) the needs of all States described in cat16 egories I through VII of the most recent needs 

17 survey. 

18 ‘‘(4) NEXT NEEDS SURVEY.—The term ‘next 

19 needs survey’ means the first needs survey that is 

20 completed after the 2000 needs survey. 

21 ‘‘(5) STATE.—The term ‘State’ means a State, 

22 the District of Columbia, and the Commonwealth of 

23 Puerto Rico. 

24 ‘‘(b) ALLOCATION OF FUNDS.— 
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1 ‘‘(1) IN GENERAL.—Funds made available to 

2 carry out this section for a fiscal year shall be allo3 cated by the Administrator in accordance with this 

4 subsection. 

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

6 funds available, 1.5 percent shall be allocated to In7 dian tribes (within the meaning of section 518(c)). 

8 ‘‘(3) CERTAIN TERRITORIES AND FREELY ASSO9 CIATED STATES.—Of the total amount of funds made 

10 available, 0.25 percent shall be allocated to Guam, the 

11 United States Virgin Islands, American Samoa, the 

12 Commonwealth of the Northern Mariana Islands, the 

13 Federated States of Micronesia, the Republic of the 

14 Marshall Islands, and the Republic of Palau to be al15 located among those territories and freely associated 

16 states, as determined by the Administrator. 

17 ‘‘(4) STATES.— 

18 ‘‘(A) TARGET ALLOCATION.—Each State 

19 shall have a target allocation that— 

20 ‘‘(i) in the case of a State for which the 

21 needs survey percentage is less than 1.0 per22 cent, shall be 1.0 percent; and 

23 ‘‘(ii) in the case of any other State, 

24 shall be the needs survey percentage. 

25 ‘‘(B) LIMITATION ON GROWTH.— 
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1 ‘‘(i) APPLICABILITY.—This subpara2 graph applies with respect to any fiscal 

3 year for which the amount of funds made 

4 available to carry out this section is 

5 $3,150,000,000 or less. 

6 ‘‘(ii) STATES WITH A NEEDS SURVEY

7 PERCENTAGE OF 1.0 PERCENT OR LESS.—In 

8 the case of a State for which the needs sur9 vey percentage is 1.0 percent or less, the 

10 growth in allocation in dollar terms relative 

11 to the base formula shall be limited to— 

12 ‘‘(I) 12 percent for fiscal year 

13 2005; 

14 ‘‘(II) 16 percent for fiscal year 

15 2006; 

16 ‘‘(III) 20 percent for fiscal year 

17 2007; 

18 ‘‘(IV) 24 percent for fiscal year 

19 2008; and 

20 ‘‘(V) 28 percent for fiscal year 

21 2009 and each fiscal year thereafter. 

22 ‘‘(iii) STATES WITH A NEEDS SURVEY

23 PERCENTAGE OF GREATER THAN 1.0 PER24 CENT.—In the case of a State for which the 

25 needs survey percentage is greater than 1.0 
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1 percent, the growth in allocation in dollar 

2 terms relative to the base formula shall be 

3 limited to 0.0 percent (before an allocation, 

4 if any, is made under subparagraph (D)). 

5 ‘‘(C) LIMITATION ON LOSS.— 

6 ‘‘(i) STATES WITH A NEEDS SURVEY

7 PERCENTAGE OF 1.0 PERCENT OR LESS.—A 

8 dollar amount that is not less than the dol9 lar amount under the base formula shall be 

10 allocated to States described in subpara11 graph (A)(i). 

12 ‘‘(ii) STATES FOR WHICH THE NEEDS

13 SURVEY PERCENTAGE IS GREATER THAN 1.0

14 PERCENT.—A dollar amount that is equal 

15 to the dollar amount under the base formula 

16 shall be allocated to States described in sub17 paragraph (A)(ii) (before an allocation, if 

18 any, is made under subparagraph (D)) 

19 that— 

20 ‘‘(I) in the most recent needs sur21 vey, reported higher needs in both cat22 egories V and VII than the State re23 ported in the previous needs survey; 

24 ‘‘(II) grew in population by more 

25 than 10 percent between the 1990 
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1 decenniel census and the 2000 

2 decenniel census; or 

3 ‘‘(III) has a population equal to 4 

4 percent or more of the total population 

5 of the United States, as reported in the 

6 2000 decenniel census. 

7 ‘‘(D) UNALLOCATED BALANCE.— 

8 ‘‘(i) LESS THAN $1,380,000,000 MADE

9 AVAILABLE.—For a fiscal year for which 

10 less than $1,380,000,000 is made available 

11 to carry out this section, the unallocated 

12 balance of available funds shall be allocated 

13 in equal amounts to all States that, in the 

14 most recent needs survey, report higher total 

15 needs both in absolute dollar terms and as 

16 a percentage of the total United States 

17 needs. 

18 ‘‘(ii) $1,380,000,000 OR MORE MADE

19 AVAILABLE.—For a fiscal year for which

20 $1,380,000,000 or more is made available to 

21 carry out this section, the unallocated bal22 ance of available funds shall be allocated in 

23 equal amounts to all States that—

24 ‘‘(I) are described in clause (i); or 
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1 ‘‘(II) are described in subpara2 graph (C).’’; and 

3 (3) by adding at the end the following: 

4 ‘‘(f) RESERVATION OF FUNDS FOR PLANNING.—A 

5 State shall reserve to carry out planning under sections 

6 205(j) and 303(e) for each fiscal year the greater of—

7 ‘‘(1) 2 percent of the amount allocated to the 

8 State under this section for the fiscal year; or 

9 ‘‘(2) $100,000.’’. 

10 SEC. 110. AUTHORIZATION OF APPROPRIATIONS. 

11 Section 607 of the Federal Water Pollution Control Act 

12 (33 U.S.C. 1387) is amended to read as follows: 

13 ‘‘SEC. 607. AUTHORIZATION OF APPROPRIATIONS. 

14 ‘‘(a) IN GENERAL.—There are authorized to be appro15 priated to carry out this title— 

16 ‘‘(1) $3,200,000,000 for each of fiscal years 2005 

17 and 2006; 

18 ‘‘(2) $3,600,000,000 for fiscal year 2007; 

19 ‘‘(3) $4,000,000,000 for fiscal year 2008; and 

20 ‘‘(4) $6,000,000,000 for fiscal year 2009. 

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

22 this section shall remain available until expended. 

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

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

25 this title for a fiscal year, the Administrator may reserve 
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1 not more than $1,000,000 per year to pay the costs of con2 ducting needs surveys under section 516(2).’’. 

3 SEC. 111. REPORTS. 

4 Section 516 of the Federal Water Pollution Control Act 

5 (33 U.S.C. 1375) is amended in the second sentence by 

6 striking ‘‘odd-numbered’’ and inserting ‘‘fourth’’. 

7 SEC. 112. PILOT PROGRAM FOR ALTERNATIVE WATER 

8 SOURCE PROJECTS. 

9 Section 220(j) of the Federal Water Pollution Control 

10 Act (33 U.S.C. 1300(j)) is amended in the first sentence 

11 by striking ‘‘a total of $75,000,000 for fiscal years 2002 

12 through 2004’’ and inserting ‘‘$25,000,000 for each of fiscal 

13 years 2005 through 2007’’. 

14 SEC. 113. WET WEATHER GRANTS. 

15 Section 221 of the Federal Water Pollution Control Act 

16 (33 U.S.C. 1301) is amended—

17 (1) by striking the section heading and inserting 

18 the following: 

19 ‘‘SEC. 221. WET WEATHER GRANTS.’’; 

20 (2) in subsection (a)(1), by striking ‘‘and sani21 tary sewer overflows’’ and inserting ‘‘, sanitary sewer 

22 overflows, and stormwater runoff’’; 

23 (3) in subsection (b)—

24 (A) in paragraph (2), by striking ‘‘or a sep25 arate sanitary sewer overflow control plan’’ and 
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1 inserting ‘‘, sanitary sewer overflow control plan, 

2 or stormwater runoff control plan’’; 

3 (B) by redesignating paragraphs (3) and 

4 (4) as paragraphs (4) and (5), respectively; and 

5 (C) by inserting after paragraph (2) the fol6 lowing: 

7 ‘‘(3) is a municipality that is subject to the 

8 Phase I or Phase II stormwater regulations;’’; 

9 (4) in subsection (f), by striking ‘‘section 

10 $750,000,000’’ and all that follows and inserting ‘‘sec11 tion $250,000,000 for each of fiscal years 2005 

12 through 2009, to remain available until expended.’’; 

13 (5) in subsection (g)(2)(B), by striking ‘‘and 

14 sanitary sewer overflow controls’’ and inserting ‘‘, 

15 sanitary sewer overflow controls, and stormwater run16 off controls’’; and 

17 (6) in subsection (i), by striking ‘‘and sanitary 

18 sewer overflow controls’’ and inserting ‘‘, sanitary 

19 sewer overflow, and stormwater runoff’’. 

20 SEC. 114. TECHNICAL CORRECTION. 

21 Title I of the Federal Water Pollution Control Act is 

22 amended by redesignating the second section 121 (33 U.S.C. 

23 1274) as section 122. 
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1 TITLE II—SAFE DRINKING 

2 WATER INFRASTRUCTURE 

3 SEC. 201. TECHNICAL ASSISTANCE FOR SMALL CENTERS. 

4 Section 1420(g) of the Safe Drinking Water Act (42 

5 U.S.C. 300g–9(g)) is amended by striking paragraph (4) 

6 and inserting the following: 

7 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.—

8 There is authorized to be appropriated to carry out 

9 this subsection $2,000,000 for each of fiscal years 

10 2005 through 2009.’’. 

11 SEC. 202. LABOR STANDARDS. 

12 Section 1450(e) of the Safe Drinking Water Act (42 

13 U.S.C. 300j–9(e)) is amended by striking ‘‘(e) The Adminis14 trator’’ and all that follows through ‘‘the Secretary of 

15 Labor’’ in the second sentence and inserting the following: 

16 ‘‘(e) LABOR STANDARDS.— 

17 ‘‘(1) IN GENERAL.—The Administrator shall take 

18 such action as is necessary to ensure that all laborers 

19 and mechanics employed by contractors and sub20 contractors on construction projects financed, in 

21 whole or in part, by a grant, loan, loan guarantee, 

22 refinancing, or any other form of assistance provided 

23 under this title (including assistance provided from 

24 the State drinking water revolving fund under section 

25 1452) are paid wages at rates that are not less than 
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1 the rates prevailing for the same type of work for 

2 similar construction in the immediate locality, as de3 termined by the Secretary of Labor in accordance 

4 with the Act of March 3, 1931 (40 U.S.C. 276a et 

5 seq.). 

6 ‘‘(2) AUTHORITY AND FUNCTIONS.—The Sec7 retary of Labor’’. 

8 SEC. 203. PRECONSTRUCTION WORK. 

9 Section 1452(a)(2) of the Safe Drinking Water Act (42 

10 U.S.C. 300j–12(a)(2)) is amended in the second sentence— 

11 (1) by striking ‘‘(not’’ and inserting ‘‘(including 

12 expenditures for planning, design, and associated 

13 preconstruction and for recovery for siting of the fa14 cility and related elements but not’’; and 

15 (2) by inserting before the period at the end the 

16 following: ‘‘or to replace or rehabilitate aging collec17 tion, treatment, storage (including reservoirs), or dis18 tribution facilities of public water systems or provide 

19 for capital projects to upgrade the security of public 

20 water systems’’.

21 SEC. 204. AFFORDABILITY. 

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

23 U.S.C. 300j–12(d)(3)) is amended in the first sentence by 

24 inserting ‘‘, or portion of a service area,’’ after ‘‘service 

25 area’’. 
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1 SEC. 205. SAFE DRINKING WATER REVOLVING LOAN FUNDS. 

2 (a) IN GENERAL.—Section 1452(g) of the Safe Drink3 ing Water Act (42 U.S.C. 300j–12(g)) is amended— 

4 (1) in paragraph (2)— 

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

6 and inserting ‘‘6’’; and 

7 (B) by striking ‘‘1419’’ and all that follows 

8 through ‘‘1993.’’ and inserting ‘‘1419.’’; and 

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

10 ‘‘(5) TRANSFER OF FUNDS.— 

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

12 State may— 

13 ‘‘(i)(I) reserve not more than 33 per14 cent of a capitalization grant made under 

15 this section; and 

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

17 funds provided to the State under section 

18 601 of the Federal Water Pollution Control 

19 Act (33 U.S.C. 1381); and 

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

21 amount that does not exceed the amount 

22 that may be reserved under clause (i)(I) for 

23 that year from capitalization grants made 

24 under section 601 of that Act (33 U.S.C. 

25 1381); and 
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1 ‘‘(II) add the reserved funds to any 

2 funds provided to the State under this sec3 tion. 

4 ‘‘(B) STATE MATCH.—Funds reserved under 

5 this paragraph shall not be considered to be a 

6 State match of a capitalization grant required 

7 under this section or section 602(b) of the Fed8 eral Water Pollution Control Act (33 U.S.C. 

9 1382(b)).’’. 

10 (b) PRIORITY SYSTEM REQUIREMENTS.—Section 

11 1452(b)(3) of the Safe Drinking Water Act (42 U.S.C. 300j–

12 12(b)(3)) is amended— 

13 (1) by redesignating subparagraph (B) as sub14 paragraph (C); 

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

16 the following: 

17 ‘‘(A) DEFINITIONS.—In this paragraph: 

18 ‘‘(i) RESTRUCTURING.—The term ‘re19 structuring’ means changes in operations 

20 (including ownership, accounting, rates, 

21 maintenance, consolidation, and alternative 

22 water supply). 

23 ‘‘(ii) TRADITIONAL APPROACH.—The 

24 term ‘traditional approach’ means a man25 aged system used to treat and distribute 
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1 drinking water to an entire service area 

2 consisting of a centralized water system 

3 using biological, physical, or chemical treat4 ment processes. 

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

6 plan shall provide, to the maximum extent prac7 ticable, that—

8 ‘‘(i) priority for the use of funds be 

9 given to projects—

10 ‘‘(I) that address the most serious 

11 risk to human health; 

12 ‘‘(II) that are necessary to ensure 

13 compliance with the requirements of 

14 this title (including requirements for 

15 filtration); and 

16 ‘‘(III) that assist systems most in 

17 need on a per-household basis accord18 ing to State affordability criteria; and 

19 ‘‘(ii) the State shall give more weight 

20 to an application for assistance by a com21 munity water system if the application in22 cludes such other information as the State 

23 determines to be necessary and— 
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1 ‘‘(I) an inventory of assets, in2 cluding a description of the condition 

3 of those assets; 

4 ‘‘(II) a schedule for replacement of 

5 assets; 

6 ‘‘(III) a financing plan indi7 cating sources of revenue from rate 

8 payers, grants, bonds, other loans, and 

9 other sources; 

10 ‘‘(IV) a review of options for re11 structuring the public water system; or 

12 ‘‘(V) a review of options for ap13 proaches other than a traditional ap14 proach.’’; and 

15 (3) in subparagraph (C) (as redesignated by 

16 paragraph (1)), by striking ‘‘periodically’’ and insert17 ing ‘‘at least biennially’’. 

18 SEC. 206. GRANTS PROGRAM. 

19 Section 1452 of the Safe Drinking Water Act (42 

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

22 ‘‘(s) SET-ASIDE.—

23 ‘‘(1) $2,500,000,000 OR LESS MADE AVAIL24 ABLE.— 
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1 ‘‘(A) IN GENERAL.—In the case of a fiscal 

2 year for which appropriations for State revolv3 ing loan funds do not exceed $2,500,000,000, a 

4 State shall set aside 10 percent of the capitaliza5 tion grant of the State under subsection (a) to 

6 provide grants to projects eligible for assistance 

7 under subsection (a)(2) of not more than 55 per8 cent of the total cost of a project for which a 

9 grant is made. 

10 ‘‘(B) WAIVER.—A State may waive the re11 quirement of subparagraph (A) if the average 

12 time for processing loan applications during the 

13 preceding 12 months did not exceed 90 days. 

14 ‘‘(2) MORE THAN $2,500,000,000 MADE AVAIL15 ABLE.—In the case of a fiscal year for which appro16 priations for State revolving loan funds exceed 

17 $2,500,000,000, a State shall set aside not more than 

18 5 nor less than 2.5 percent of the State revolving loan 

19 fund of the State.’’. 

20 SEC. 207. OTHER AUTHORIZED ACTIVITIES. 

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

22 (42 U.S.C. 300j–12(k)(2)(D)) is amended by inserting be23 fore the period at the end the following: ‘‘(including imple24 mentation of source water protection plans)’’. 
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1 SEC. 208. SMALL SYSTEM REVOLVING LOAN FUNDS. 

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

3 U.S.C. 300j–1(e)) is amended— 

4 (1) by striking ‘‘The Administrator may pro5 vide’’ and inserting the following: 

6 ‘‘(1) IN GENERAL.—The Administrator may pro7 vide’’; and 

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

9 ‘‘(2) SMALL SYSTEM REVOLVING LOAN FUND.— 

10 ‘‘(A) IN GENERAL.—In addition to amounts 

11 provided under this section, the Administrator 

12 may provide grants to qualified private, non13 profit entities to capitalize revolving funds to 

14 provide financing to eligible entities described in 

15 subparagraph (B) for— 

16 ‘‘(i) predevelopment costs (including 

17 costs for planning, design, associated 

18 preconstruction, and necessary activities for 

19 siting the facility and related elements) as20 sociated with proposed water projects or 

21 with existing water systems; and 

22 ‘‘(ii) short-term costs incurred for re23 placement equipment, small-scale extension 

24 services, or other small capital projects that 

25 are not part of the regular operations and 
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1 maintenance activities of existing water sys2 tems. 

3 ‘‘(B) ELIGIBLE ENTITIES.—To be eligible 

4 for assistance under this paragraph, an entity 

5 shall be a small water system (as described in 

6 section 1412(b)(4)(E)(ii)). 

7 ‘‘(C) MAXIMUM AMOUNT OF LOANS.—The 

8 amount of financing made to an eligible entity 

9 under this paragraph shall not exceed— 

10 ‘‘(i) $100,000 for costs described in 

11 subparagraph (A)(i); and 

12 ‘‘(ii) $100,000 for costs described in 

13 subparagraph (A)(ii). 

14 ‘‘(D) TERM.—The term of a loan made to 

15 an eligible entity under this paragraph shall not 

16 exceed 10 years. 

17 ‘‘(E) ANNUAL REPORT.—For each fiscal 

18 year, a qualified private, nonprofit entity that 

19 receives a grant under subparagraph (A) shall 

20 submit to the Administrator a report that— 

21 ‘‘(i) describes the activities of the 

22 qualified private, nonprofit entity under 

23 this paragraph for the fiscal year; and 

24 ‘‘(ii) specifies—
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1 ‘‘(I) the number of communities 

2 served; 

3 ‘‘(II) the sizes of those commu4 nities; and 

5 ‘‘(III) the type of financing pro6 vided by the qualified private, non7 profit entity. 

8 ‘‘(F) AUTHORIZATION OF APPROPRIA9 TIONS.—There is authorized to be appropriated 

10 to carry out this subsection $25,000,000 for each 

11 of fiscal years 2005 through 2009.’’. 

12 SEC. 209. AUTHORIZATION OF APPROPRIATIONS. 

13 Section 1452 of the Safe Drinking Water Act (42 

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

15 inserting the following: 

16 ‘‘(m) AUTHORIZATION OF APPROPRIATIONS.— 

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

18 appropriated to carry out this section— 

19 ‘‘(A) $1,500,000,000 for fiscal year 2005; 

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

21 2006 and 2007; 

22 ‘‘(C) $3,500,000,000 for fiscal year 2008; 

23 and 

24 ‘‘(D) $6,000,000,000 for fiscal year 2009. 
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1 ‘‘(2) AVAILABILITY.—Amounts made available 

2 under this subsection shall remain available until ex3 pended. 

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

5 the amount made available under paragraph (1) to 

6 carry out this section for a fiscal year, the Adminis7 trator may reserve not more than $1,000,000 for each 

8 fiscal year to pay the costs of conducting needs sur9 veys under subsection (h).’’. 

10 SEC. 210. REMOVAL OF LEAD FROM DRINKING WATER IN 

11 SCHOOLS AND IN THE DISTRICT OF COLUM12 BIA. 

13 (a) LEAD CONTAMINATION IN SCHOOL DRINKING

14 WATER.—Section 1464 of the Safe Drinking Water Act (42 

15 U.S.C. 300j–24) is amended by striking subsection (d) and 

16 inserting the following: 

17 ‘‘(d) REMOVAL OF LEAD IN SCHOOLS.—

18 ‘‘(1) IN GENERAL.—Not later than 270 days 

19 after the date of enactment of the Water Infrastruc20 ture Financing Act, in consultation with each State, 

21 the Administrator shall establish a program to pro22 vide grants to States to assist in paying, or to pro23 vide reimbursement for, costs incurred by local edu24 cational agencies in testing for, remediating, and in25 forming students, parents, teachers, and employees
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1 about lead contamination in drinking water from 

2 coolers and from other sources of lead contamination 

3 at schools under the jurisdiction of the local edu4 cational agencies. 

5 ‘‘(2) FUNDING.—

6 ‘‘(A) AUTHORIZATION OF APPROPRIA7 TIONS.—There is authorized to be appropriated 

8 to carry out this subsection $40,000,000 for each 

9 of fiscal years 2005 through 2008. 

10 ‘‘(B) ADMINISTRATIVE EXPENSES.—The Ad11 ministrator may use not more than 5 percent of 

12 amounts made available under subparagraph 

13 (A) for a fiscal year to pay administrative ex14 penses incurred in carrying out this subsection.’’. 

15 (b) LEAD CONTAMINATION IN DRINKING WATER IN

16 THE DISTRICT OF COLUMBIA.—Section 1465 of the Safe 

17 Drinking Water Act (42 U.S.C. 300j–25) is amended to 

18 read as follows: 

19 ‘‘SEC. 1465. LEAD CONTAMINATION IN DRINKING WATER IN 

20 THE DISTRICT OF COLUMBIA. 

21 ‘‘(a) GRANT.—

22 ‘‘(1) IN GENERAL.—The Administrator may pro23 vide to the District of Columbia a grant of 

24 $20,000,000 to be used to address lead contamination 

25 in the water supply of the District of Columbia. 
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1 ‘‘(2) USE OF GRANT FUNDS.—Funds provided 

2 under paragraph (1) may be used for activities such 

3 as—

4 ‘‘(A) assessment of infrastructure (which 

5 may include, on a voluntary basis, fixtures with6 in private residences, including replacement fau7 cet strainers); 

8 ‘‘(B) testing of water supplies throughout 

9 the water system; 

10 ‘‘(C) distribution of filters to residences 

11 with high lead levels; 

12 ‘‘(D) evaluation of chemical additives (in13 cluding zinc orthophosphate) to the water sup14 ply; 

15 ‘‘(E) pipe replacement; and 

16 ‘‘(F) evaluation and improvement of com17 munication with the general public, particularly 

18 households with water that tested above the ac19 tion level for lead. 

20 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—

21 There is authorized to be appropriated to carry out 

22 this subsection $20,000,000. 

23 ‘‘(b) STUDY BY THE NATIONAL ACADEMY OF

24 SCIENCES.—
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1 ‘‘(1) IN GENERAL.—The Administrator shall con2 tract with the National Academy of Sciences to con3 duct a 2-phase study in accordance with this sub4 section. 

5 ‘‘(2) PHASE I.—In phase I of the study, the Na6 tional Academy of Sciences shall conduct a com7 prehensive evaluation of—

8 ‘‘(A) compliance by the District of Colum9 bia Water and Sewer Authority with regulations 

10 pertaining to lead and copper in drinking water 

11 (including meeting the public notification re12 quirements of the regulations); and 

13 ‘‘(B) the potential causes of lead in the 

14 water supply of the District of Columbia. 

15 ‘‘(3) PHASE II.—In phase II of the study, the 

16 National Academy of Sciences shall assess, from a 

17 cross-section of cities of varying population sizes 

18 across the United States with lead service lines—

19 ‘‘(A) the extent to which water levels in 

20 those cities have exceeded the action level for 

21 lead; and 

22 ‘‘(B) the potential causes of the exceedences 

23 (including service lines, chemical additives in the 

24 water supply, equipment upgrades, and pipes in 

25 residences). 
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1 ‘‘(4) REPORT.—Not later than 1 year after the 

2 date of enactment of this paragraph, the National 

3 Academy of Sciences shall submit to the Committee 

4 on Environment and Public Works of the Senate and 

5 the Committee on Energy and Commerce of the House 

6 of Representatives a report describing the findings 

7 made in the study. 

8 ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—

9 There is authorized to be appropriated to carry out 

10 this subsection $2,000,000.’’.

11 SEC. 211. SMALL PUBLIC WATER SYSTEM ASSISTANCE PRO12 GRAM. 

13 (a) ESTABLISHMENT OF PROGRAM.—The Safe Drink14 ing Water Act (42 U.S.C. 300f et seq.) is amended by add15 ing at the end the following: 

16 ‘‘PART G—SMALL PUBLIC WATER SYSTEM 

17 ASSISTANCE 

18 ‘‘SEC. 1471. DEFINITIONS. 

19 ‘‘In this part: 

20 ‘‘(1) ELIGIBLE ACTIVITY.—

21 ‘‘(A) IN GENERAL.—The term ‘eligible activ22 ity’ means an activity that is carried out by an 

23 eligible entity to ensure compliance with na24 tional primary drinking water regulations ap25 plicable to the eligible entity under section 1412.
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1 ‘‘(B) INCLUSION.—The term ‘eligible activ2 ity’ includes source water protection. 

3 ‘‘(C) EXCLUSION.—The term ‘eligible activ4 ity’ does not include any activity to increase the 

5 population served by a public water system, ex6 cept to the extent that the Administrator deter7 mines an activity to be necessary to—

8 ‘‘(i) achieve compliance with a na9 tional primary drinking water regulation; 

10 and 

11 ‘‘(ii) provide a water supply to a pop12 ulation that, as of the date of enactment of 

13 this part, is not served by a safe public 

14 water system. 

15 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible enti16 ty’ means—

17 ‘‘(A) a small public water system that—

18 ‘‘(i) if located in a State, serves a com19 munity that, under affordability criteria es20 tablished by the State under section 

21 1452(d), is determined by the State to be—

22 ‘‘(I) a disadvantaged community; 

23 or 

24 ‘‘(II) a community that would 

25 otherwise become a disadvantaged com-
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1 munity as a result of carrying out an 

2 eligible activity, as determined by the 

3 State; or 

4 ‘‘(ii) if located in an area governed by 

5 an Indian Tribe, serves a community that 

6 is determined by the Administrator, under 

7 criteria published by the Administrator 

8 under section 1452(d) and in consultation 

9 with the Secretary, to be—

10 ‘‘(I) a disadvantaged community; 

11 or 

12 ‘‘(II) a community that would 

13 otherwise become a disadvantaged com14 munity as a result of carrying out an 

15 eligible activity, as determined by the 

16 State; and 

17 ‘‘(B) a public water system that—

18 ‘‘(i) would incur $3,000,000 or more in 

19 costs in complying with national primary 

20 drinking water regulations promulgated 

21 under this Act; and 

22 ‘‘(ii) is a disadvantaged community or 

23 a community may otherwise become dis24 advantaged as a result of carrying out an 

25 eligible activity, as determined by the State. 
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1 ‘‘(3) PROGRAM.—The term ‘program’ means the 

2 small public water system assistance program estab3 lished under section 1472(a). 

4 ‘‘(4) SECRETARY.—The term ‘Secretary’ means 

5 the Secretary of Health and Human Services, acting 

6 through the Director of the Indian Health Service. 

7 ‘‘(5) SMALL PUBLIC WATER SYSTEM.—The term 

8 ‘small public water system’ means a public water sys9 tem (including a community water system and a 

10 noncommunity water system) that serves a popu11 lation of 15,000 or fewer individuals. 

12 ‘‘SEC. 1472. SMALL PUBLIC WATER SYSTEM ASSISTANCE 

13 PROGRAM. 

14 ‘‘(a) ESTABLISHMENT.—Not later than July 1, 2006, 

15 the Administrator shall establish within the Environmental 

16 Protection Agency a small public water system assistance 

17 program for, and provide grants to, eligible entities for use 

18 in carrying out eligible activities. 

19 ‘‘(b) PRIORITY.—

20 ‘‘(1) IN GENERAL.—The Administrator shall pro21 vide grants to eligible entities for eligible activities 

22 that—

23 ‘‘(A) address the most serious risks to 

24 human health from lack of compliance with the 

25 regulations specified in subparagraph (B); 
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1 ‘‘(B) are necessary to ensure compliance 

2 with national primary drinking water regula3 tions applicable to eligible entities under section 

4 1412; and 

5 ‘‘(C) assist systems serving communities 

6 that are most in need, as calculated on the basis 

7 of median household income, under affordability 

8 criteria established by the State under section 

9 1452(d) (or, in the case of eligible entities in an 

10 area governed by an Indian Tribe, under afford11 ability criteria established by the Administrator, 

12 in consultation with the Secretary). 

13 ‘‘(2) MANAGEMENT COOPERATIVES.—The Admin14 istrator shall consider giving priority for grants 

15 under this section to eligible activities that are car16 ried out by communities that form management co17 operatives. 

18 ‘‘(c) TECHNICAL ASSISTANCE.—In providing grants 

19 under this section, the Administrator shall—

20 ‘‘(1) use not less than 1.5 percent of funds made 

21 available to carry out this section to provide grants 

22 to nonprofit technical assistance organizations to be 

23 used to assist eligible entities in—

24 ‘‘(A) assessing needs relating to eligible ac25 tivities; 
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1 ‘‘(B) identifying additional available 

2 sources of funding to meet the cost-sharing re3 quirements under the program; and 

4 ‘‘(C) planning, implementing, and main5 taining any eligible activities of the eligible enti6 ties that receive funding under this section; 

7 ‘‘(2) require that none of the funds provided 

8 under paragraph (1) be used to pay for lobbying ex9 penses; and 

10 ‘‘(3) require that for each fiscal year, not more 

11 than 5 percent of the funds received by an eligible en12 tity under this section may be used to obtain tech13 nical assistance in planning, implementing, and 

14 maintaining eligible activities for which funding is 

15 provided under this section. 

16 ‘‘(d) INDIAN TRIBES.—

17 ‘‘(1) IN GENERAL.—In providing grants under 

18 this section, the Administrator shall use not less than 

19 3 percent of funds made available to carry out this 

20 section for each fiscal year to provide grants to eligi21 ble entities that are located in areas governed by In22 dian Tribes. 

23 ‘‘(2) PROGRAM PRIORITY REQUIREMENT.—

24 ‘‘(A) LIST OF ELIGIBLE ACTIVITIES.—
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1 ‘‘(i) IN GENERAL.—The Administrator, 

2 in consultation with the Secretary, shall, for 

3 each fiscal year, identify, and, consistent 

4 with subsection (b) and considering the cri5 teria described in subparagraph (B), list in 

6 descending order of priority, eligible activi7 ties for eligible entities located in areas gov8 erned by Indian Tribes for which funds pro9 vided from a grant under this part may be 

10 used. 

11 ‘‘(ii) COORDINATION.—

12 ‘‘(I) IN GENERAL.—To the max13 imum extent practicable, the Adminis14 trator shall ensure that the preparation 

15 of the list under clause (i) is coordi16 nated with any needs assessment con17 ducted under section 1452(i)(4). 

18 ‘‘(II) ADDITIONAL CONSIDER19 ATION.—Any additional financial 

20 needs of small public water systems lo21 cated in areas governed by Indian 

22 Tribes that are associated with the cost 

23 of complying with a national primary 

24 drinking water regulation (including a 

25 regulation concerning arsenic) that is 
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1 promulgated after the then most recent 

2 needs survey conducted under section 

3 1452(i)(4) shall be factored into the de4 termination of financial need for, and 

5 prioritization of, eligible activities 

6 under this section. 

7 ‘‘(B) CRITERIA.—The Administrator shall, 

8 in preparing a list under subparagraph (A), 

9 consider giving priority to any listed eligible ac10 tivities that are to be carried out by communities 

11 that form management cooperatives (including 

12 management cooperatives between systems that 

13 do not have public water system connections). 

14 ‘‘(3) ALLOCATION OF GRANT FUNDING.—For each 

15 fiscal year, the Administrator, in consultation with 

16 the Secretary, shall provide grants to eligible entities 

17 located in an area governed by an Indian Tribe for 

18 the maximum number of eligible activities for which 

19 the funding allocation makes assistance available, 

20 based on the priority assigned by the Administrator 

21 to eligible activities under paragraph (2). 

22 ‘‘(4) LIMITATION ON USE OF FUNDS.—For each 

23 fiscal year, not more than 5 percent of the funds re24 ceived by an eligible entity located in an area gov25 erned by an Indian Tribe under this section may be 
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1 used to obtain technical assistance in planning, im2 plementing, and maintaining eligible activities that 

3 are funded under this section. 

4 ‘‘(e) LIMITATION ON RECEIPT OF FUNDS.—An eligible 

5 entity may receive a grant under this section only—

6 ‘‘(1) if the Administrator determines that use of 

7 the grant will aid compliance with national primary 

8 drinking water regulations applicable to the eligible 

9 entity under section 1412; 

10 ‘‘(2)(A) to restructure or consolidate the facility 

11 to achieve compliance with applicable national pri12 mary drinking water regulations; or 

13 ‘‘(B) in a case in which restructuring or consoli14 dation of the facility is not practicable, if the Admin15 istrator determines that—

16 ‘‘(i) the eligible entity has made a good 

17 faith effort to achieve compliance with applicable 

18 national primary drinking water regulations; 

19 and 

20 ‘‘(ii) the eligible entity is adhering to an en21 forceable schedule for complying with those regu22 lations; and 

23 ‘‘(3) if—

24 ‘‘(A) the Administrator determines that an 

25 eligible entity may lack the technical, manage-
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1 rial, operations, maintenance, or financial ca2 pacity to ensure compliance with national pri3 mary drinking water regulations applicable to 

4 the eligible entity under section 1412, and the el5 igible entity agrees to undertake feasible and ap6 propriate changes in operations (including 

7 changes in ownership, management, accounting, 

8 rates, maintenance, consolidation, provision of 

9 an alternative water supply, or other proce10 dures); and 

11 ‘‘(B) the Administrator determines that the 

12 measures are necessary to ensure that the eligible 

13 entity has the technical, managerial, operational, 

14 maintenance, and financial capacity to comply 

15 with applicable national primary drinking 

16 water regulations over the long term. 

17 ‘‘(f) COST SHARING.—

18 ‘‘(1) IN GENERAL.—

19 ‘‘(A) LIMIT.—Except as provided in para20 graph (2), the share of the total cost of an eligi21 ble activity funded by a grant under this section 

22 shall not exceed 80 percent. 

23 ‘‘(B) USE OF OTHER FEDERAL FUNDS.—To 

24 pay the portion of an eligible activity that is not 

25 funded by a grant under this section, an eligible 
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1 entity located in an area governed by an Indian 

2 Tribe may use Federal financial assistance other 

3 than assistance received under this section. 

4 ‘‘(2) WAIVER OF COST-SHARING REQUIRE5 MENT.—

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

7 may waive the requirement of an eligible entity 

8 to pay all or a portion of the share of an eligible 

9 activity that is not funded by a grant under this 

10 section, based on a determination by the State 

11 that the eligible entity is unable to pay any or 

12 all of the share. 

13 ‘‘(B) LIMITATION.—For each fiscal year, the 

14 total amount of cost-share waivers provided by 

15 the Administrator to eligible entities located in 

16 an area governed by an Indian Tribe under sub17 paragraph (A) shall not exceed 30 percent of the 

18 amount of funding used to provide grants to In19 dian Tribes under this part. 

20 ‘‘(g) UNOBLIGATED FUNDS.—Any funds not obligated 

21 by the small public water system assistance program estab22 lished under subsection (a) for an eligible activity within 

23 1 year after the date on which funds are made available 

24 to carry out this part shall be returned to the Administrator 

25 for use in providing new grants under this part.
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1 ‘‘SEC. 1473. REPORTS. 

2 ‘‘Not later than January 1, 2006, and annually there3 after through January 1, 2010, the Administrator shall—

4 ‘‘(1) submit, to the Committee on Environment 

5 and Public Works of the Senate and the Committee on 

6 Energy and Commerce of the House of Representa7 tives, a report that, for the preceding fiscal year—

8 ‘‘(A) lists the eligible activities for eligible 

9 entities that receive funds under this part for the 

10 preceding fiscal year; 

11 ‘‘(B) identifies the number of grants pro12 vided under this part to eligible entities located 

13 in areas governed by Indian Tribes, and in each 

14 State; 

15 ‘‘(C) identifies each eligible entity that re16 ceives a grant to carry out an eligible activity; 

17 ‘‘(D) identifies the amount of each grant 

18 provided to an eligible entity to carry out an eli19 gible activity; and 

20 ‘‘(E) describes each eligible activity funded 

21 by such a grant (including the status of the eligi22 ble activity); and 

23 ‘‘(2) make the report under paragraph (1) avail24 able to the public. 
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1 ‘‘SEC. 1474. AUTHORIZATION OF APPROPRIATIONS. 

2 ‘‘There is authorized to be appropriated to carry out 

3 this part $200,000,000 for each of fiscal years 2005 through 

4 2009.’’.

5 (b) CONFORMING AMENDMENT.—Section 1401(14) of 

6 the Safe Drinking Water Act (42 U.S.C. 300f(14)) is 

7 amended in the second sentence by striking ‘‘1452,’’ and 

8 inserting ‘‘1452 and part G,’’.

9 SEC. 212. SMALL PUBLIC WATER SYSTEM ASSISTANCE PRO10 GRAM. 

11 (a) ESTABLISHMENT OF PROGRAM.—The Safe Drink12 ing Water Act (42 U.S.C. 300f et seq.) is amended by add13 ing at the end the following: 

14 ‘‘PART G—SMALL PUBLIC WATER SYSTEM 

15 ASSISTANCE 

16 ‘‘SEC. 1471. DEFINITIONS. 

17 ‘‘In this part: 

18 ‘‘(1) ELIGIBLE ACTIVITY.—

19 ‘‘(A) IN GENERAL.—The term ‘eligible activ20 ity’ means an activity that is carried out by an 

21 eligible entity to ensure compliance with na22 tional primary drinking water regulations ap23 plicable to the eligible entity under section 1412. 

24 ‘‘(B) INCLUSION.—The term ‘eligible activ25 ity’ includes source water protection. 
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1 ‘‘(C) EXCLUSION.—The term ‘eligible activ2 ity’ does not include any activity to increase the 

3 population served by a public water system, ex4 cept to the extent that the Administrator deter5 mines an activity to be necessary to—

6 ‘‘(i) achieve compliance with a na7 tional primary drinking water regulation; 

8 and 

9 ‘‘(ii) provide a water supply to a pop10 ulation that, as of the date of enactment of 

11 this part, is not served by a safe public 

12 water system. 

13 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible enti14 ty’ means—

15 ‘‘(A) a small public water system that—

16 ‘‘(i) if located in a State, serves a com17 munity that, under affordability criteria es18 tablished by the State under section 

19 1452(d), is determined by the State to be—

20 ‘‘(I) a disadvantaged community; 

21 or 

22 ‘‘(II) a community that would 

23 otherwise become a disadvantaged com24 munity as a result of carrying out an 
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1 eligible activity, as determined by the 

2 State; or 

3 ‘‘(ii) if located in an area governed by 

4 an Indian Tribe, serves a community that 

5 is determined by the Administrator, under 

6 criteria published by the Administrator 

7 under section 1452(d) and in consultation 

8 with the Secretary, to be—

9 ‘‘(I) a disadvantaged community; 

10 or 

11 ‘‘(II) a community that would 

12 otherwise become a disadvantaged com13 munity as a result of carrying out an 

14 eligible activity, as determined by the 

15 State; and 

16 ‘‘(B) a public water system that—

17 ‘‘(i) would incur $3,000,000 or more in 

18 costs in complying with national primary 

19 drinking water regulations promulgated 

20 under this Act; and 

21 ‘‘(ii) is a disadvantaged community or 

22 a community may otherwise become dis23 advantaged as a result of carrying out an 

24 eligible activity, as determined by the State. 
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1 ‘‘(3) PROGRAM.—The term ‘program’ means the 

2 small public water system assistance program estab3 lished under section 1472(a). 

4 ‘‘(4) SECRETARY.—The term ‘Secretary’ means 

5 the Secretary of Health and Human Services, acting 

6 through the Director of the Indian Health Service. 

7 ‘‘(5) SMALL PUBLIC WATER SYSTEM.—The term 

8 ‘small public water system’ means a public water sys9 tem (including a community water system and a 

10 noncommunity water system) that serves a popu11 lation of 15,000 or fewer individuals. 

12 ‘‘SEC. 1472. SMALL PUBLIC WATER SYSTEM ASSISTANCE 

13 PROGRAM. 

14 ‘‘(a) ESTABLISHMENT.—Not later than July 1, 2006, 

15 the Administrator shall establish within the Environmental 

16 Protection Agency a small public water system assistance 

17 program for, and provide grants to, eligible entities for use 

18 in carrying out eligible activities. 

19 ‘‘(b) PRIORITY.—

20 ‘‘(1) IN GENERAL.—The Administrator shall pro21 vide grants to eligible entities for eligible activities 

22 that—

23 ‘‘(A) address the most serious risks to 

24 human health from lack of compliance with the 

25 regulations specified in subparagraph (B);
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1 ‘‘(B) are necessary to ensure compliance 

2 with national primary drinking water regula3 tions applicable to eligible entities under section 

4 1412; and 

5 ‘‘(C) assist systems serving communities 

6 that are most in need, as calculated on the basis 

7 of median household income, under affordability 

8 criteria established by the State under section 

9 1452(d) (or, in the case of eligible entities in an 

10 area governed by an Indian Tribe, under afford11 ability criteria established by the Administrator, 

12 in consultation with the Secretary). 

13 ‘‘(2) MANAGEMENT COOPERATIVES.—The Admin14 istrator shall consider giving priority for grants 

15 under this section to eligible activities that are car16 ried out by communities that form management co17 operatives. 

18 ‘‘(c) TECHNICAL ASSISTANCE.—In providing grants 

19 under this section, the Administrator shall—

20 ‘‘(1) use not less than 1.5 percent of funds made 

21 available to carry out this section to provide grants 

22 to nonprofit technical assistance organizations to be 

23 used to assist eligible entities in—

24 ‘‘(A) assessing needs relating to eligible ac25 tivities; 
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1 ‘‘(B) identifying additional available 

2 sources of funding to meet the cost-sharing re3 quirements under the program; and 

4 ‘‘(C) planning, implementing, and main5 taining any eligible activities of the eligible enti6 ties that receive funding under this section; 

7 ‘‘(2) require that none of the funds provided 

8 under paragraph (1) be used to pay for lobbying ex9 penses; and 

10 ‘‘(3) require that for each fiscal year, not more 

11 than 5 percent of the funds received by an eligible en12 tity under this section may be used to obtain tech13 nical assistance in planning, implementing, and 

14 maintaining eligible activities for which funding is 

15 provided under this section. 

16 ‘‘(d) INDIAN TRIBES.—

17 ‘‘(1) IN GENERAL.—In providing grants under 

18 this section, the Administrator shall use not less than 

19 3 percent of funds made available to carry out this 

20 section for each fiscal year to provide grants to eligi21 ble entities that are located in areas governed by In22 dian Tribes. 

23 ‘‘(2) PROGRAM PRIORITY REQUIREMENT.—

24 ‘‘(A) LIST OF ELIGIBLE ACTIVITIES.—
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1 ‘‘(i) IN GENERAL.—The Administrator, 

2 in consultation with the Secretary, shall, for 

3 each fiscal year, identify, and, consistent 

4 with subsection (b) and considering the cri5 teria described in subparagraph (B), list in 

6 descending order of priority, eligible activi7 ties for eligible entities located in areas gov8 erned by Indian Tribes for which funds pro9 vided from a grant under this part may be 

10 used. 

11 ‘‘(ii) COORDINATION.—

12 ‘‘(I) IN GENERAL.—To the max13 imum extent practicable, the Adminis14 trator shall ensure that the preparation 

15 of the list under clause (i) is coordi16 nated with any needs assessment con17 ducted under section 1452(i)(4). 

18 ‘‘(II) ADDITIONAL CONSIDER19 ATION.—Any additional financial 

20 needs of small public water systems lo21 cated in areas governed by Indian 

22 Tribes that are associated with the cost 

23 of complying with a national primary 

24 drinking water regulation (including a 

25 regulation concerning arsenic) that is 
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1 promulgated after the then most recent 

2 needs survey conducted under section 

3 1452(i)(4) shall be factored into the de4 termination of financial need for, and 

5 prioritization of, eligible activities 

6 under this section. 

7 ‘‘(B) CRITERIA.—The Administrator shall, 

8 in preparing a list under subparagraph (A), 

9 consider giving priority to any listed eligible ac10 tivities that are to be carried out by communities 

11 that form management cooperatives (including 

12 management cooperatives between systems that 

13 do not have public water system connections). 

14 ‘‘(3) ALLOCATION OF GRANT FUNDING.—For each 

15 fiscal year, the Administrator, in consultation with 

16 the Secretary, shall provide grants to eligible entities 

17 located in an area governed by an Indian Tribe for 

18 the maximum number of eligible activities for which 

19 the funding allocation makes assistance available, 

20 based on the priority assigned by the Administrator 

21 to eligible activities under paragraph (2). 

22 ‘‘(4) LIMITATION ON USE OF FUNDS.—For each 

23 fiscal year, not more than 5 percent of the funds re24 ceived by an eligible entity located in an area gov25 erned by an Indian Tribe under this section may be 
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1 used to obtain technical assistance in planning, im2 plementing, and maintaining eligible activities that 

3 are funded under this section. 

4 ‘‘(e) LIMITATION ON RECEIPT OF FUNDS.—

5 ‘‘(1) IN GENERAL.—Except as provided in para6 graph (2), a grant under this section shall not be pro7 vided to an eligible entity that, as determined by the 

8 Administrator—

9 ‘‘(A) does not have the technical, manage10 rial, operations, maintenance, or financial ca11 pacity to ensure compliance with national pri12 mary drinking water regulations applicable to 

13 the eligible entity under section 1412; or 

14 ‘‘(B) is in significant noncompliance with 

15 any applicable national primary drinking water 

16 regulation. 

17 ‘‘(2) EXCEPTION FOR RECEIPT OF GRANT.—An 

18 eligible entity described in paragraph (1) may receive 

19 a grant under this section only—

20 ‘‘(A) if the Administrator determines that 

21 use of the grant will ensure compliance with na22 tional primary drinking water regulations ap23 plicable to the eligible entity under section 1412;
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1 ‘‘(B)(i) to restructure or consolidate the fa2 cility to achieve compliance with applicable na3 tional primary drinking water regulations; or 

4 ‘‘(ii) in a case in which restructuring or 

5 consolidation of the facility is not practicable, if 

6 the Administrator determines that—

7 ‘‘(I) the eligible entity has made a good 

8 faith effort to achieve compliance with ap9 plicable national primary drinking water 

10 regulations; and 

11 ‘‘(II) the eligible entity is adhering to 

12 an enforceable schedule for complying with 

13 those regulations; and 

14 ‘‘(C) in a case in which paragraph (1)(A) 

15 applies to an eligible entity, and the eligible en16 tity if—

17 ‘‘(i) the eligible entity agrees to under18 take feasible and appropriate changes in op19 erations (including changes in ownership, 

20 management, accounting, rates, mainte21 nance, consolidation, provision of an alter22 native water supply, or other procedures); 

23 and 

24 ‘‘(ii) the Administrator determines that 

25 the measures are necessary to ensure that 
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1 the eligible entity has the capacity described 

2 in paragraph (1)(A) to comply with appli3 cable national primary drinking water reg4 ulations over the long term. 

5 ‘‘(3) REVIEW.—Before providing assistance 

6 under this section to an eligible entity that is in sig7 nificant noncompliance with any national primary 

8 drinking water regulation applicable to the eligible 

9 entity under section 1412, the Administrator shall 

10 conduct a review to determine whether paragraph 

11 (1)(A) applies to the entity. 

12 ‘‘(f) COST SHARING.—

13 ‘‘(1) IN GENERAL.—

14 ‘‘(A) LIMIT.—Except as provided in para15 graph (2), the share of the total cost of an eligi16 ble activity funded by a grant under this section 

17 shall not exceed 80 percent. 

18 ‘‘(B) USE OF OTHER FEDERAL FUNDS.—To 

19 pay the portion of an eligible activity that is not 

20 funded by a grant under this section, an eligible 

21 entity located in an area governed by an Indian 

22 Tribe may use Federal financial assistance other 

23 than assistance received under this section. 

24 ‘‘(2) WAIVER OF COST-SHARING REQUIRE25 MENT.—
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1 ‘‘(A) IN GENERAL.—The Administrator 

2 may waive the requirement of an eligible entity 

3 to pay all or a portion of the share of an eligible 

4 activity that is not funded by a grant under this 

5 section, based on a determination by the State 

6 that the eligible entity is unable to pay any or 

7 all of the share. 

8 ‘‘(B) LIMITATION.—For each fiscal year, the 

9 total amount of cost-share waivers provided by 

10 the Administrator to eligible entities located in 

11 an area governed by an Indian Tribe under sub12 paragraph (A) shall not exceed 30 percent of the 

13 amount of funding used to provide grants to In14 dian Tribes under this part. 

15 ‘‘(g) UNOBLIGATED FUNDS.—Any funds not obligated 

16 by the small public water system assistance program estab17 lished under subsection (a) for an eligible activity within 

18 1 year after the date on which funds are made available 

19 to carry out this part shall be returned to the Administrator 

20 for use in providing new grants under this part. 

21 ‘‘SEC. 1473. REPORTS. 

22 ‘‘Not later than January 1, 2006, and annually there23 after through January 1, 2010, the Administrator shall—

24 ‘‘(1) submit, to the Committee on Environment 

25 and Public Works of the Senate and the Committee on 
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1 Energy and Commerce of the House of Representa2 tives, a report that, for the preceding fiscal year—

3 ‘‘(A) lists the eligible activities for eligible 

4 entities that receive funds under this part for the 

5 preceding fiscal year; 

6 ‘‘(B) identifies the number of grants pro7 vided under this part to eligible entities located 

8 in areas governed by Indian Tribes, and in each 

9 State; 

10 ‘‘(C) identifies each eligible entity that re11 ceives a grant to carry out an eligible activity; 

12 ‘‘(D) identifies the amount of each grant 

13 provided to an eligible entity to carry out an eli14 gible activity; and 

15 ‘‘(E) describes each eligible activity funded 

16 by such a grant (including the status of the eligi17 ble activity); and 

18 ‘‘(2) make the report under paragraph (1) avail19 able to the public. 

20 ‘‘SEC. 1474. AUTHORIZATION OF APPROPRIATIONS. 

21 ‘‘There is authorized to be appropriated to carry out 

22 this part $1,000,000,000 for each of fiscal years 2005 

23 through 2008.’’. 

24 (b) CONFORMING AMENDMENT.—Section 1401(14) of 

25 the Safe Drinking Water Act (42 U.S.C. 300f(14)) is 
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1 amended in the second sentence by striking ‘‘1452,’’ and 

2 inserting ‘‘1452 and part G,’’. 

3 TITLE III—MISCELLANEOUS 

4 SEC. 301. DEFINITION OF ADMINISTRATOR. 

5 In this title, the term ‘‘Administrator’’ means the Ad6 ministrator of the Environmental Protection Agency. 

7 SEC. 302. DEMONSTRATION GRANT PROGRAM FOR WATER 

8 QUALITY ENHANCEMENT AND MANAGEMENT. 

9 (a) ESTABLISHMENT.— 

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

11 the date of enactment of this Act, the Administrator 

12 shall establish a nationwide demonstration grant pro13 gram to— 

14 (A) promote innovations in technology and 

15 alternative approaches to water quality manage16 ment or water supply; and 

17 (B) reduce costs to municipalities incurred 

18 in complying with— 

19 (i) the Federal Water Pollution Control 

20 Act (33 U.S.C. 1251 et seq.); and 

21 (ii) the Safe Drinking Water Act (42 

22 U.S.C. 300f et seq.). 

23 (2) SCOPE.—The demonstration grant program 

24 shall consist of 10 projects each year, to be carried out
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1 in municipalities selected by the Administrator under 

2 subsection (b). 

3 (b) SELECTION OF MUNICIPALITIES.— 

4 (1) APPLICATION.—A municipality that seeks to 

5 participate in the demonstration grant program shall 

6 submit to the Administrator a plan that— 

7 (A) is developed in coordination with— 

8 (i) the agency of the State having ju9 risdiction over water quality or water sup10 ply matters; and 

11 (ii) interested stakeholders; 

12 (B) describes water impacts specific to 

13 urban or rural areas; 

14 (C) includes a strategy under which the mu15 nicipality, through participation in the dem16 onstration grant program, could effectively— 

17 (i) address water quality or water sup18 ply problems; and 

19 (ii) achieve the same water quality 

20 goals as the goals that— 

21 (I) could be achieved using more 

22 traditional methods; or 

23 (II) are required under— 
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1 (aa) the Federal Water Pol2 lution Control Act (33 U.S.C. 

3 1251 et seq.); or 

4 (bb) the Safe Drinking Water 

5 Act (42 U.S.C. 300f et seq.); and 

6 (D) includes a schedule for achieving the 

7 water quality or water supply goals of the mu8 nicipality. 

9 (2) TYPES OF PROJECTS.—In carrying out the 

10 demonstration grant program, the Administrator 

11 shall provide grants for projects relating to water sup12 ply or water quality matters such as— 

13 (A) excessive nutrient growth; 

14 (B) urban or rural population pressure; 

15 (C) lack of an alternative water supply; 

16 (D) difficulties in water conservation and 

17 efficiency; 

18 (E) lack of support tools and technologies to 

19 rehabilitate and replace water supplies; 

20 (F) lack of monitoring and data analysis 

21 for water distribution systems; 

22 (G) nonpoint source water pollution (in23 cluding stormwater); 

24 (H) sanitary overflows; 

25 (I) combined sewer overflows; 
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1 (J) problems with naturally occurring con2 stituents of concern; 

3 (K) problems with erosion and excess sedi4 ment; 

5 (L) new approaches to water treatment, dis6 tribution, and collection systems; and 

7 (M) new methods for collecting and treating 

8 wastewater (including system design and non9 structural alternatives). 

10 (3) RESPONSIBILITIES OF ADMINISTRATOR.—In 

11 providing grants for projects under this subsection, 

12 the Administrator shall— 

13 (A) ensure, to the maximum extent prac14 ticable, that— 

15 (i) the demonstration program includes 

16 a variety of projects with respect to— 

17 (I) geographic distribution; 

18 (II) innovative technologies used 

19 for the projects; and 

20 (III) nontraditional approaches 

21 (including low-impact development 

22 technologies) used for the projects; and 

23 (ii) each category of project described 

24 in paragraph (2) is adequately represented; 

25 (B) give higher priority to projects that— 
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1 (i) address multiple problems; and 

2 (ii) are regionally applicable; 

3 (C) ensure, to the maximum extent prac4 ticable, that at least 1 community having a pop5 ulation of 10,000 or fewer individuals receives a 

6 grant for each fiscal year; and 

7 (D) ensure that, for each fiscal year, no mu8 nicipality receives more than 25 percent of the 

9 total amount of funds made available for the fis10 cal year to provide grants under this section. 

11 (4) COST SHARING.— 

12 (A) IN GENERAL.—Except as provided in 

13 subparagraph (B), the non-Federal share of the 

14 total cost of a project funded by a grant under 

15 this section shall be not less than 20 percent. 

16 (B) WAIVER.—The Administrator may re17 duce or eliminate the non-Federal share of the 

18 cost of a project for reasons of affordability. 

19 (c) REPORTS.— 

20 (1) REPORTS FROM GRANT RECIPIENTS.—A re21 cipient of a grant under this section shall submit to 

22 the Administrator, on the date of completion of a 

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

24 is 1, 2, and 3 years after that date, a report that de25 scribes the effectiveness of the project. 
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1 (2) REPORTS TO CONGRESS.—Not later than 2 

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

3 every 2 years thereafter, the Administrator shall sub4 mit to the Committee on Environment and Public 

5 Works of the Senate and the Committee on Transpor6 tation and Infrastructure and the Committee on En7 ergy and Commerce of the House of Representatives 

8 a report that describes the status and results of the 

9 demonstration program. 

10 (d) INCORPORATION OF RESULTS AND INFORMA11 TION.—To the maximum extent practicable, the Adminis12 trator shall incorporate the results of, and information ob13 tained from, successful projects under this section into pro14 grams administered by the Administrator. 

15 (e) RESEARCH AND DEVELOPMENT.— 

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

17 the date of enactment of this Act, the Administrator 

18 shall, through a competitive process, award grants 

19 and enter into contracts and cooperative agreements 

20 with research institutions, educational institutions, 

21 and other appropriate entities (including consortia of 

22 such institutions and entities) for research and devel23 opment on the use of innovative and alternative tech24 nologies to improve water quality or drinking water 

25 supply. 
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1 (2) TYPES OF PROJECTS.—In carrying out this 

2 subsection, the Administrator may select projects re3 lating to such matters as innovative or alternative 

4 technologies, approaches, practices, or methods— 

5 (A) to increase the effectiveness and effi6 ciency of public water supply systems, includ7 ing— 

8 (i) source water protection; 

9 (ii) water use reduction; 

10 (iii) water reuse; 

11 (iv) water treatment; 

12 (v) water distribution and collection 

13 systems; and 

14 (vi) water security; 

15 (B) to encourage the use of innovative or al16 ternative technologies or approaches relating to 

17 water supply or availability; or 

18 (C) to increase the effectiveness and effi19 ciency of treatment works, including— 

20 (i) methods of collecting, treating, dis21 persing, reusing, reclaiming, and recycling 

22 wastewater; 

23 (ii) system design; 

24 (iii) nonstructural alternatives; 

25 (iv) decentralized approaches; 
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1 (v) assessment; 

2 (vi) water efficiency; and 

3 (vii) wastewater security. 

4 (3) AUTHORIZATION OF APPROPRIATIONS.—

5 There is authorized to be appropriated to carry out 

6 this subsection $20,000,000 for each of fiscal years 

7 2005 through 2009. 

8 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

9 authorized to be appropriated to carry out this section 

10 (other than subsection (e)) $20,000,000 for each of fiscal 

11 years 2005 through 2009. 

12 SEC. 303. COST OF SERVICE STUDY. 

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

14 date of enactment of this Act, the Administrator shall enter 

15 into a contract with the National Academy of Sciences for, 

16 and the National Academy of Sciences shall complete and 

17 provide to the Administrator the results of, a study of the 

18 means by which public water systems and treatment works 

19 selected by the Academy in accordance with subsection (c) 

20 meet the costs associated with operations, maintenance, 

21 capital replacement, and regulatory requirements. 

22 (b) REQUIRED ELEMENTS.— 

23 (1) AFFORDABILITY.—The study shall, at a min24 imum— 
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1 (A) identify existing standards for afford2 ability; 

3 (B) determine the manner in which those 

4 standards are determined and defined; 

5 (C) determine the manner in which afford6 ability varies with respect to communities of dif7 ferent sizes and in different regions; and 

8 (D) determine the extent to which afford9 ability affects the decision of a community to in10 crease public water system and treatment works 

11 rates (including the decision relating to the per12 centage by which those rates should be in13 creased). 

14 (2) DISADVANTAGED COMMUNITIES.—The study 

15 shall, at a minimum— 

16 (A) survey a cross-section of States rep17 resenting different sizes, demographics, and geo18 graphical regions; 

19 (B) describe, for each State described in 

20 subparagraph (A), the definition of ‘‘disadvan21 taged community’’ used in the State in carrying 

22 out projects and activities under the Safe Drink23 ing Water Act (42 U.S.C. 300f et seq.); 
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1 (C) review other means of identifying the 

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

3 term applies to communities; 

4 (D) determine which factors and character5 istics are required for a community to be consid6 ered ‘‘disadvantaged’’; and 

7 (E) evaluate the degree to which factors 

8 such as a reduction in the tax base over a period 

9 of time, a reduction in population, the loss of an 

10 industrial base, and the existence of areas of con11 centrated poverty are taken into account in de12 termining whether a community is a disadvan13 taged community. 

14 (c) SELECTION OF COMMUNITIES.—The National 

15 Academy of Sciences shall select communities, the public 

16 water system and treatment works rate structures of which 

17 are to be studied under this section, that include a cross18 section of communities representing various populations, 

19 income levels, demographics, and geographical regions. 

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

21 results of the study, the Administrator shall— 

22 (1) submit to Congress a report that describes the 

23 results of the study; and 

24 (2) make the results available to treatment works 

25 and public water systems for use by the publicly 
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1 owned treatment works and public water systems, on 

2 a voluntary basis, in determining whether 1 or more 

3 new approaches may be implemented at facilities of 

4 the publicly owned treatment works and public water 

5 systems. 

6 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

7 authorized to be appropriated to carry out this section 

8 $1,000,000 for each of fiscal years 2005 and 2006. 

9 SEC. 304. STATE REVOLVING FUND REVIEW PROCESS. 

10 As soon as practicable after the date of enactment of 

11 this Act, the Administrator shall— 

12 (1) consult with States, utilities, and other Fed13 eral agencies providing financial assistance to iden14 tify ways to expedite and improve the application 

15 and review process for the provision of assistance 

16 from— 

17 (A) the State water pollution control revolv18 ing funds established under title VI of the Fed19 eral Water Pollution Control Act (33 U.S.C. 

20 1381 et seq.); and 

21 (B) the State drinking water treatment re22 volving loan funds established under section 1452 

23 of the Safe Drinking Water Act (42 U.S.C. 300j–

24 12);
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1 (2) take such administrative action as is nec2 essary to expedite and improve the process as the Ad3 ministrator has authority to take under existing law; 

4 and 

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

6 the information identified under paragraph (1), con7 tains recommendations for legislation to facilitate 

8 further streamlining and improvement of the process. 

9 SEC. 305. SOUTHEAST COLORADO SAFE DRINKING WATER 

10 SUPPLY. 

11 (a) IN GENERAL.—The Administrator shall provide a 

12 grant to the Southeast Colorado Water Activity Enterprise, 

13 a water activity enterprise of the Southeastern Colorado 

14 Water Conservancy District, to construct a water trans15 mission line from the Pueblo Reservoir in Pueblo County, 

16 Colorado, to the city of Lamar in Prowers County, Colo17 rado. 

18 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

19 authorized to be appropriated to carry out this section 

20 $85,000,000 for the period of fiscal years 2005 through 

21 2010. 

22 SEC. 306. ASSESSMENT OF PERCHLORATE CONTAMINA23 TION. 

24 Not later that 1 year after the date of enactment of 

25 this Act—
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1 (1) the Secretary of the Interior, acting through 

2 the United States Geological Survey, shall carry out 

3 a nationwide assessment of sites contaminated with 

4 perchlorate and the geological conditions at those 

5 sites; and 

6 (2) submit to Congress a report that describes the 

7 results of the assessment. 

8 SEC. 307. NATIONAL ESTUARY PROGRAM. 

9 Section 320(i) of the Federal Water Pollution Control 

10 Act (33 U.S.C. 1330(i)) is amended by striking 

11 ‘‘$35,000,000 for each of fiscal years 2001 through 2005’’ 

12 and inserting ‘‘$35,000,000 for each of fiscal years 2005 

13 through 2010’’. 

14 SEC. 308. SEWAGE CONTROL TECHNOLOGY GRANT PRO15 GRAM. 

16 The Federal Water Pollution Control Act (33 U.S.C. 

17 1251 et seq.) is amended by adding at the end the following: 

18 ‘‘TITLE VII—MISCELLANEOUS 

19 ‘‘SEC. 701. SEWAGE CONTROL TECHNOLOGY GRANT PRO20 GRAM. 

21 ‘‘(a) DEFINITION OF ELIGIBLE FACILITY.—In this sec22 tion, the term ‘eligible facility’ means a municipal waste23 water treatment plant that—

24 ‘‘(1) as of the date of enactment of this title, has 

25 a permitted design capacity to treat an annual aver-
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1 age of at least 500,000 gallons of wastewater per day; 

2 and 

3 ‘‘(2) is located within the Chesapeake Bay water4 shed in any of the States of Delaware, Maryland, New 

5 York, Pennsylvania, Virginia, or West Virginia or in 

6 the District of Columbia. 

7 ‘‘(b) GRANT PROGRAM.—

8 ‘‘(1) ESTABLISHMENT.—Not later than 1 year 

9 after the date of enactment of this title, the Adminis10 trator shall establish a program within the Environ11 mental Protection Agency to provide grants to States 

12 and municipalities to upgrade eligible facilities with 

13 nutrient removal technologies. 

14 ‘‘(2) PRIORITY.—In providing a grant under 

15 paragraph (1), the Administrator shall—

16 ‘‘(A) consult with the Chesapeake Bay Pro17 gram Office; 

18 ‘‘(B) give priority to eligible facilities at 

19 which nutrient removal upgrades would—

20 ‘‘(i) produce the greatest nutrient load 

21 reductions at points of discharge; or 

22 ‘‘(ii) result in the greatest environ23 mental benefits to local bodies of water sur24 rounding, and the main stem of, the Chesa25 peake Bay; and 
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1 ‘‘(C) take into consideration the geographic 

2 distribution of the grants. 

3 ‘‘(3) APPLICATION.—

4 ‘‘(A) IN GENERAL.—On receipt of an appli5 cation from a State or municipality for a grant 

6 under this section, if the Administrator approves 

7 the request, the Administrator shall transfer to 

8 the State or municipality the amount of assist9 ance requested. 

10 ‘‘(B) FORM.—An application submitted by 

11 a State or municipality under subparagraph (A) 

12 shall be in such form and shall include such in13 formation as the Administrator may prescribe. 

14 ‘‘(4) USE OF FUNDS.—A State or municipality 

15 that receives a grant under this section shall use the 

16 grant to upgrade eligible facilities with nutrient re17 moval technologies that are designed to reduce total 

18 nitrogen in discharged wastewater to an average an19 nual concentration of 4 milligrams per liter. 

20 ‘‘(5) COST SHARING.—

21 ‘‘(A) FEDERAL SHARE.—The Federal share 

22 of the cost of upgrading any eligible facility de23 scribed in paragraph (1) using funds provided 

24 under this section shall not exceed 55 percent.
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1 ‘‘(B) NON-FEDERAL SHARE.—The non-Fed2 eral share of the costs of upgrading any eligible 

3 facility described in paragraph (1) using funds 

4 provided under this section may be provided in 

5 the form of funds made available to a State or 

6 municipality under—

7 ‘‘(i) any provision of this Act other 

8 than this section (including funds made 

9 available from a State revolving fund estab10 lished under title VI); or 

11 ‘‘(ii) any other Federal or State law. 

12 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—

13 ‘‘(1) IN GENERAL.—There is authorized to be ap14 propriated to carry out this section $100,000,000 for 

15 each of fiscal years 2005 through 2009, to remain 

16 available until expended. 

17 ‘‘(2) ADMINISTRATIVE COSTS.—The Adminis18 trator may use not to exceed 4 percent of any amount 

19 made available under paragraph (1) for a fiscal year 

20 to pay administrative costs incurred in carrying out 

21 this section.’’. 

22 SEC. 309. SPECIAL WATER RESOURCES STUDY. 

23 (a) HOMELAND SECURITY.—Section 101 of the Water 

24 Resources Planning Act (42 U.S.C. 1962a) is amended in 
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1 the first sentence by inserting ‘‘the Secretary of Homeland 

2 Security,’’ after ‘‘the Secretary of Agriculture,’’. 

3 (b) WATER RESOURCES STUDY.—Section 102 of the 

4 Water Resources Planning Act (42 U.S.C. 1962a–1) is 

5 amended— 

6 (1) by redesignating subsections (a) and (b) as 

7 paragraphs (1) and (2), respectively; 

8 (2) by striking ‘‘SEC. 102. The Council 

9 shall—’’ and inserting the following: 

10 ‘‘SEC. 102. DUTIES OF COUNCIL. 

11 ‘‘(a) IN GENERAL.—The Council shall—’’; 

12 (3) in subsection (a) (as amended by paragraphs 

13 (1) and (2))— 

14 (A) in paragraph (1), by striking ‘‘and’’ 

15 after the semicolon; 

16 (B) in paragraph (2), by striking the period 

17 at the end and inserting ‘‘; and’’; and 

18 (C) by adding at the end the following: 

19 ‘‘(3) carry out a special water resources study in 

20 accordance with subsection (b).’’; and 

21 (4) by adding at the end the following: 

22 ‘‘(b) SPECIAL WATER RESOURCES STUDY.— 

23 ‘‘(1) IN GENERAL.—The Council shall carry out 

24 a special water resources study to— 
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1 ‘‘(A) use existing water assessments and 

2 conduct such additional assessments as are nec3 essary to project future water supply and de4 mand; 

5 ‘‘(B) study water management programs 

6 used by the Federal Government, State and local 

7 governments, and private entities to increase 

8 water supplies and improve the availability, re9 liability, and quality of freshwater resources; 

10 ‘‘(C) consult with agencies and entities to 

11 develop recommendations consistent with laws 

12 (including treaties, decrees, and compacts) for a 

13 comprehensive water strategy that— 

14 ‘‘(i) respects the primary role of States 

15 in regulating water rights and uses; 

16 ‘‘(ii) identifies incentives to ensure an 

17 adequate and dependable supply of water 

18 through the year 2054; 

19 ‘‘(iii) suggests strategies to avoid in20 creased mandates on State and local govern21 ments; 

22 ‘‘(iv) eliminates duplication and con23 flict among Federal programs; 

24 ‘‘(v) considers all available technologies 

25 and methods to optimize water supply reli-
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1 ability, availability, and quality, while 

2 safeguarding the environment; 

3 ‘‘(vi) recommends means of capturing 

4 excess water and flood water for conserva5 tion and use in a drought; 

6 ‘‘(vii) suggests financing options for— 

7 ‘‘(I) water supply and water 

8 management projects; and 

9 ‘‘(II) appropriate public works 

10 projects; 

11 ‘‘(viii) suggests strategies to conserve 

12 existing water supplies, including rec13 ommendations for repairing aging infra14 structure; and 

15 ‘‘(ix) includes other objectives relating 

16 to the effective management of the water 

17 supply to ensure reliability, availability, 

18 and quality; 

19 ‘‘(D) evaluate Federal water programs in 

20 existence on the date of enactment of this para21 graph and submit to Congress and the President 

22 recommendations on— 

23 ‘‘(i) means of eliminating discrep24 ancies between the goals of the programs 

25 and actual service delivery;
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1 ‘‘(ii) duplication among programs; and 

2 ‘‘(iii) any other circumstances that 

3 interfere with the effective operation of the 

4 programs; 

5 ‘‘(E) based on a review of water plans, de6 velop and make available to the public water 

7 planning models to reduce water resource con8 flicts; and 

9 ‘‘(F) develop and coordinate public aware10 ness activities to provide the public with access 

11 to understandable informational material, in12 cluding, at a minimum— 

13 ‘‘(i) descriptions of the value and bene14 fits of land stewardship to reduce the im15 pact of water shortages; and 

16 ‘‘(ii) clear instructions for appropriate 

17 responses to water supply shortages, includ18 ing— 

19 ‘‘(I) water conservation; 

20 ‘‘(II) water reuse; and 

21 ‘‘(III) detection and elimination 

22 of water leaks. 

23 ‘‘(2) CONSULTATION.—In carrying out this sub24 section, the Council shall consult with interested 

25 groups, including groups that represent— 
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1 ‘‘(A) agricultural production, wildlife, and 

2 fishery interests; 

3 ‘‘(B) forestry and fire management inter4 ests; 

5 ‘‘(C) rural and urban water associations; 

6 ‘‘(D) environmental interests; 

7 ‘‘(E) engineering and construction interests; 

8 ‘‘(F) the portion of the scientific community 

9 that is concerned with climatology and hydrol10 ogy; 

11 ‘‘(G) resource-dependent businesses and 

12 other private entities (including the recreation 

13 and tourism industries); and 

14 ‘‘(H) any other group, organization, or en15 tity that the Council considers necessary to ad16 vance the work of the Council. 

17 ‘‘(3) REPORTS.— 

18 ‘‘(A) INTERIM REPORTS.—Not later than 

19 180 days after the first meeting of the Council 

20 following the date of enactment of this para21 graph, and every 180 days thereafter, the Coun22 cil shall submit to the President, the Committee 

23 on Energy and Natural Resources and the Com24 mittee on the Environment and Public Works of 

25 the Senate, and the Committee on Resources, the 
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1 Committee on Transportation and Infrastruc2 ture, and the Committee on Energy and Com3 merce of the House of Representatives an interim 

4 report that describes the progress made by the 

5 Council in carrying out this subsection. 

6 ‘‘(B) FINAL REPORT.—As soon as prac7 ticable, but not later than 3 years, after the date 

8 of the first meeting of the Council referred to in 

9 subparagraph (A), the Council shall submit to 

10 the President and the Committees referred to in 

11 subparagraph (A) a final report that includes— 

12 ‘‘(i) a detailed statement of the find13 ings and conclusions of the Council; and 

14 ‘‘(ii) recommendations for legislation 

15 and other policies to implement those find16 ings and conclusions, including— 

17 ‘‘(I) a list of recommendations 

18 that can be implemented immediately 

19 in accordance with existing law; and 

20 ‘‘(II) a list of recommendations 

21 that require statutory changes prior to 

22 implementation.’’. 

23 (c) AUTHORIZATION OF APPROPRIATIONS.—Section 

24 401 of the Water Resources Planning Act (42 U.S.C. 1962d) 

25 is amended— 
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1 (1) in the matter preceding subsection (a), by 

2 striking ‘‘Council:’’ and inserting ‘‘Council each of the 

3 following amounts:’’; 

4 (2) by redesignating subsections (a) through (c) 

5 as paragraphs (1) through (3), respectively; 

6 (3) in paragraph (1) (as redesignated by para7 graph (2))—

8 (A) by striking ‘‘subsection (c) below:’’ and 

9 inserting ‘‘paragraph (3):’’; and 

10 (B) by striking the semicolon at the end and 

11 inserting a period; 

12 (4) in paragraph (2) (as redesignated by para13 graph (2))— 

14 (A) by striking ‘‘the sum’’ and inserting 

15 ‘‘The sum’’; and 

16 (B) by striking ‘‘subsection (c) below;’’ and 

17 inserting ‘‘paragraph (3).’’; and 

18 (5) by adding after paragraph (3) (as redesig19 nated by paragraph (2)) the following: 

20 ‘‘(4) The sum of $9,000,000 for fiscal year 2005 

21 to be used to carry out the special water resources 

22 study under section 102(b), to remain available until 

23 expended.’’.

Calendar No. 772

108TH CONGRESS 

2D SESSION S. 2550

[Report No. 108–386] 

A BILL

To amend the Federal Water Pollution Control Act 

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

OCTOBER 7, 2004

Reported with an amendment