I 

112TH CONGRESS 

1ST SESSION H. R. 3145 

To amend the Federal Water Pollution Control Act to authorize appropriations for State water pollution control revolving funds, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 11, 2011 

Mr. BISHOP of New York (for himself, Mr. RAHALL, Mr. LATOURETTE, and 

Mr. PETRI) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Ways and Means, for a period to be subsequently determined 

by the Speaker, in each case for consideration of such provisions as fall 

within the jurisdiction of the committee concerned 

A BILL 

To amend the Federal Water Pollution Control Act to authorize appropriations for State water pollution control 

revolving funds, and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) IN GENERAL.—This Act may be cited as the 

5 ‘‘Water Quality Protection and Job Creation Act of 

6 2011’’. 

7 (b) TABLE OF CONTENTS.— 


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Sec. 1. Short title; table of contents. 

Sec. 2. Amendment of Federal Water Pollution Control Act. 

TITLE I—WATER QUALITY FINANCING 

Subtitle A—Technical and Management Assistance 

Sec. 1101. Technical assistance. 

Sec. 1102. State management assistance. 

Sec. 1103. Watershed pilot projects. 

Subtitle B—Construction of Treatment Works 

Sec. 1201. Sewage collection systems. 

Sec. 1202. Treatment works defined. 

Subtitle C—State Water Pollution Control Revolving Funds 

Sec. 1301. General authority for capitalization grants. 

Sec. 1302. Capitalization grant agreements. 

Sec. 1303. Water pollution control revolving loan funds. 

Sec. 1304. Allotment of funds. 

Sec. 1305. Intended use plan. 

Sec. 1306. Annual Reports. 

Sec. 1307. Technical assistance; requirements for use of American materials. 

Sec. 1308. Economic hardship waiver. 

Sec. 1309. Authorization of appropriations. 

Subtitle D—General Provisions 

Sec. 1401. Definition of treatment works. 

Sec. 1402. Funding for Indian programs. 

Subtitle E—Tonnage Duties 

Sec. 1501. Tonnage duties. 

TITLE II—ALTERNATIVE WATER SOURCE PROJECTS 

Sec. 2001. Pilot program for alternative water source projects. 

TITLE III—SEWER OVERFLOW CONTROL GRANTS 

Sec. 3001. Sewer overflow control grants. 

TITLE IV—CLEAN WATER TRUST FUND 

Sec. 4001. Establishment of Clean Water Trust Fund. 

Sec. 4002. Allocation of funds. 

Sec. 4003. Revenues for Clean Water Trust Fund. 

TITLE V—WATER POLLUTION CONTROL INVESTMENT 

Sec. 5001. Short title. 

Sec. 5002. Definitions. 

Sec. 5003. Direct loans. 

Sec. 5004. Guarantees. 

Sec. 5005. Funding. 


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1 SEC. 2. AMENDMENT OF FEDERAL WATER POLLUTION CON2 TROL ACT. 

3 Except as otherwise expressly provided, whenever in 

4 this Act an amendment or repeal is expressed in terms 

5 of an amendment to, or repeal of, a section or other provi6 sion, the reference shall be considered to be made to a 

7 section or other provision of the Federal Water Pollution 

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

9 TITLE I—WATER QUALITY 

10 FINANCING 

11 Subtitle A—Technical and 

12 Management Assistance 

13 SEC. 1101. TECHNICAL ASSISTANCE. 

14 (a) TECHNICAL ASSISTANCE FOR RURAL AND SMALL

15 TREATMENT WORKS.—Section 104(b) (33 U.S.C. 

16 1254(b)) is amended— 

17 (1) by striking ‘‘and’’ at the end of paragraph 

18 (6); 

19 (2) by striking the period at the end of para20 graph (7) and inserting ‘‘; and’’; and 

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

22 ‘‘(8) make grants to nonprofit organizations— 

23 ‘‘(A) to provide technical assistance to 

24 rural and small municipalities and tribal gov25 ernments for the purpose of assisting, in con26 sultation with the State in which the assistance 


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1 is provided, such municipalities and tribal gov2 ernments in the planning, developing, and ac3 quisition of financing for eligible projects de4 scribed in section 603(c); 

5 ‘‘(B) to provide technical assistance and 

6 training for rural, small, and tribal publicly 

7 owned treatment works and decentralized 

8 wastewater treatment systems to enable such 

9 treatment works and systems to protect water 

10 quality and achieve and maintain compliance 

11 with the requirements of this Act; and 

12 ‘‘(C) to disseminate information to rural, 

13 small, and tribal municipalities and municipali14 ties that meet the affordability criteria estab15 lished under section 603(i)(2) by the State in 

16 which the municipality is located with respect to 

17 planning, design, construction, and operation of 

18 publicly owned treatment works and decentral19 ized wastewater treatment systems.’’. 

20 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

21 104(u) (33 U.S.C. 1254(u)) is amended— 

22 (1) by striking ‘‘and (6)’’ and inserting ‘‘(6)’’; 

23 and 

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

25 following: ‘‘; and (7) not to exceed $100,000,000 for 


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1 each of fiscal years 2012 through 2016 for carrying 

2 out subsections (b)(3), (b)(8), and (g), except that 

3 not less than 20 percent of the amounts appro4 priated pursuant to this paragraph in a fiscal year 

5 shall be used for carrying out subsection (b)(8)’’. 

6 (c) SMALL FLOWS CLEARINGHOUSE.—Section 

7 104(q)(4) (33 U.S.C. 1254(q)(4)) is amended— 

8 (1) in the first sentence by striking 

9 ‘‘$1,000,000’’ and inserting ‘‘$3,000,000’’; and 

10 (2) in the second sentence by striking ‘‘1986’’ 

11 and inserting ‘‘2016’’. 

12 SEC. 1102. STATE MANAGEMENT ASSISTANCE. 

13 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 

14 106(a) (33 U.S.C. 1256(a)) is amended— 

15 (1) by striking ‘‘and’’ at the end of paragraph 

16 (1); 

17 (2) by striking the semicolon at the end of 

18 paragraph (2) and inserting ‘‘; and’’; and 

19 (3) by inserting after paragraph (2) the fol20 lowing: 

21 ‘‘(3) such sums as may be necessary for each 

22 of fiscal years 1991 through 2011, and 

23 $300,000,000 for each of fiscal years 2012 through 

24 2016;’’. 


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1 (b) TECHNICAL AMENDMENT.—Section 106(e) (33 

2 U.S.C. 1256(e)) is amended by striking ‘‘Beginning in fis3 cal year 1974 the’’ and inserting ‘‘The’’. 

4 SEC. 1103. WATERSHED PILOT PROJECTS. 

5 (a) PILOT PROJECTS.—Section 122 (33 U.S.C. 

6 1274) is amended— 

7 (1) in the section heading by striking ‘‘WET

8 WEATHER’’; and 

9 (2) in subsection (a)— 

10 (A) in the matter preceding paragraph 

11 (1)— 

12 (i) by striking ‘‘for treatment works’’ 

13 and inserting ‘‘to a municipality or munic14 ipal entity’’; and 

15 (ii) by striking ‘‘wet weather dis16 charge’’; 

17 (B) in paragraph (2) by striking ‘‘in reduc18 ing such pollutants’’ and all that follows before 

19 the period at the end and inserting ‘‘to manage, 

20 reduce, treat, or reuse municipal stormwater, 

21 including low-impact development technologies 

22 and other techniques that utilize infiltration, 

23 evapotranspiration, and reuse of storm water on 

24 site’’; and 

25 (C) by adding at the end the following: 


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1 ‘‘(3) WATERSHED PARTNERSHIPS.—Efforts of 

2 municipalities and property owners to demonstrate 

3 cooperative ways to address nonpoint sources of pol4 lution to reduce adverse impacts on water quality. 

5 ‘‘(4) INTEGRATED WATER RESOURCE PLAN.— 

6 The development of an integrated water resource 

7 plan for the coordinated management and protection 

8 of surface water, ground water, and stormwater re9 sources on a watershed or subwatershed basis to 

10 meet the objectives, goals, and policies of this Act. 

11 ‘‘(5) MUNICIPALITY-WIDE STORM WATER MAN12 AGEMENT PLANNING.—The development of a mu13 nicipality-wide plan that identifies the most effective 

14 placement of storm water technologies and manage15 ment approaches, including green infrastructure, to 

16 reduce water quality impairments from storm water 

17 on a municipality-wide basis.’’. 

18 (b) AUTHORIZATION OF APPROPRIATIONS.—The first 

19 sentence of section 122(c)(1) is amended— 

20 (1) by striking ‘‘and’’; and 

21 (2) by striking the period and inserting ‘‘, such 

22 sums as may be necessary for each of fiscal years 

23 2005 through 2011, and $120,000,000 for each of 

24 fiscal years 2012 through 2016’’. 


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1 (c) REPORT TO CONGRESS.—Section 122(d) is 

2 amended by striking ‘‘5 years after the date of enactment 

3 of this section,’’ and inserting ‘‘October 1, 2013,’’. 

4 Subtitle B—Construction of 

5 Treatment Works 

6 SEC. 1201. SEWAGE COLLECTION SYSTEMS. 

7 Section 211 (33 U.S.C. 1291) is amended— 

8 (1) by striking the section heading and all that 

9 follows through ‘‘(a) No’’ and inserting the fol10 lowing: 

11 ‘‘SEC. 211. SEWAGE COLLECTION SYSTEMS. 

12 ‘‘(a) IN GENERAL.—No’’; 

13 (2) in subsection (b) by inserting ‘‘POPULATION

14 DENSITY.—’’ after ‘‘(b)’’; and 

15 (3) by striking subsection (c) and inserting the 

16 following: 

17 ‘‘(c) EXCEPTIONS.— 

18 ‘‘(1) REPLACEMENT AND MAJOR REHABILITA19 TION.—Notwithstanding the requirement of sub20 section (a)(1) concerning the existence of a collection 

21 system as a condition of eligibility, a project for re22 placement or major rehabilitation of a collection sys23 tem existing on January 1, 2007, shall be eligible for 

24 a grant under this title if the project otherwise 


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1 meets the requirements of subsection (a)(1) and 

2 meets the requirement of paragraph (3). 

3 ‘‘(2) NEW SYSTEMS.—Notwithstanding the re4 quirement of subsection (a)(2) concerning the exist5 ence of a community as a condition of eligibility, a 

6 project for a new collection system to serve a com7 munity existing on January 1, 2007, shall be eligible 

8 for a grant under this title if the project otherwise 

9 meets the requirements of subsection (a)(2) and 

10 meets the requirement of paragraph (3). 

11 ‘‘(3) REQUIREMENT.—A project meets the re12 quirement of this paragraph if the purpose of the 

13 project is to accomplish the objectives, goals, and 

14 policies of this Act by addressing an adverse envi15 ronmental condition existing on the date of enact16 ment of this paragraph.’’. 

17 SEC. 1202. TREATMENT WORKS DEFINED. 

18 Section 212(2)(A) (33 U.S.C. 1292(2)(A)) is amend19 ed— 

20 (1) by striking ‘‘any works, including site’’; 

21 (2) by striking ‘‘is used for ultimate’’ and in22 serting ‘‘will be used for ultimate’’; and 

23 (3) by inserting before the period at the end the 

24 following: ‘‘and acquisition of other lands, and inter25 ests in lands, which are necessary for construction’’. 


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1 Subtitle C—State Water Pollution 

2 Control Revolving Funds 

3 SEC. 1301. GENERAL AUTHORITY FOR CAPITALIZATION 

4 GRANTS. 

5 Section 601(a) (33 U.S.C. 1381(a)) is amended by 

6 striking ‘‘for providing assistance’’ and all that follows 

7 through the period at the end and inserting the following: 

8 ‘‘to accomplish the objectives, goals, and policies of this 

9 Act by providing assistance for projects and activities 

10 identified in section 603(c).’’. 

11 SEC. 1302. CAPITALIZATION GRANT AGREEMENTS. 

12 (a) REPORTING INFRASTRUCTURE ASSETS.—Section 

13 602(b)(9) (33 U.S.C. 1382(b)(9)) is amended by striking 

14 ‘‘standards’’ and inserting ‘‘standards, including stand15 ards relating to the reporting of infrastructure assets’’. 

16 (b) ADDITIONAL REQUIREMENTS.—Section 602(b) 

17 (33 U.S.C. 1382(b)) is amended— 

18 (1) in paragraph (6)— 

19 (A) by striking ‘‘before fiscal year 1995’’; 

20 (B) by striking ‘‘funds directly made avail21 able by capitalization grants under this title 

22 and section 205(m) of this Act’’ and inserting 

23 ‘‘assistance made available by a State water 

24 pollution control revolving fund as authorized 


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1 under this title, or with assistance made avail2 able under section 205(m), or both,’’; and 

3 (C) by striking ‘‘201(b)’’ and all that fol4 lows through ‘‘513’’ and inserting ‘‘211 and 

5 511(c)(1)’’; 

6 (2) by striking ‘‘and’’ at the end of paragraph 

7 (9); 

8 (3) by striking the period at the end of para9 graph (10) and inserting a semicolon; and 

10 (4) by adding at the end the following: 

11 ‘‘(11) the State will establish, maintain, invest, 

12 and credit the fund with repayments, such that the 

13 fund balance will be available in perpetuity for pro14 viding financial assistance in accordance with this 

15 title; 

16 ‘‘(12) any fees charged by the State to recipi17 ents of assistance that are considered program in18 come will be used for the purpose of financing the 

19 cost of administering the fund or financing projects 

20 or activities eligible for assistance from the fund; 

21 ‘‘(13) beginning in fiscal year 2013, the State 

22 will include as a condition of providing assistance to 

23 a municipality or intermunicipal, interstate, or State 

24 agency that the recipient of such assistance certify, 


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1 in a manner determined by the Governor of the 

2 State, that the recipient— 

3 ‘‘(A) has studied and evaluated the cost 

4 and effectiveness of the processes, materials, 

5 techniques, and technologies for carrying out 

6 the proposed project or activity for which assist7 ance is sought under this title, and has selected, 

8 to the extent practicable, a project or activity 

9 that maximizes the potential for efficient water 

10 use, reuse, and conservation, and energy con11 servation, taking into account the cost of con12 structing the project or activity, the cost of op13 erating and maintaining the project or activity 

14 over its life, and the cost of replacing the 

15 project or activity; and 

16 ‘‘(B) has considered, to the maximum ex17 tent practicable and as determined appropriate 

18 by the recipient, the costs and effectiveness of 

19 other design, management, and financing ap20 proaches for carrying out a project or activity 

21 for which assistance is sought under this title, 

22 taking into account the cost of constructing the 

23 project or activity, the cost of operating and 

24 maintaining the project or activity over its life, 

25 and the cost of replacing the project or activity; 


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1 ‘‘(14) the State will use at least 15 percent of 

2 the amount of each capitalization grant received by 

3 the State under this title after September 30, 2010, 

4 to provide assistance to municipalities of fewer than 

5 10,000 individuals that meet the affordability cri6 teria established by the State under section 

7 603(i)(2) for projects or activities included on the 

8 State’s priority list established under section 603(g), 

9 to the extent that there are sufficient applications 

10 for such assistance; 

11 ‘‘(15) a contract to be carried out using funds 

12 directly made available by a capitalization grant 

13 under this title for program management, construc14 tion management, feasibility studies, preliminary en15 gineering, design, engineering, surveying, mapping, 

16 or architectural related services shall be negotiated 

17 in the same manner as a contract for architectural 

18 and engineering services is negotiated under chapter 

19 11 of title 40, United States Code, or an equivalent 

20 State qualifications-based requirement (as deter21 mined by the Governor of the State); and 

22 ‘‘(16) the requirements of section 513 will apply 

23 to the construction of treatment works carried out in 

24 whole or in part with assistance made available by 

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1 thorized under this title, or with assistance made 

2 available under section 205(m), or both, in the same 

3 manner as treatment works for which grants are 

4 made under this Act.’’. 

5 SEC. 1303. WATER POLLUTION CONTROL REVOLVING LOAN 

6 FUNDS. 

7 (a) PROJECTS AND ACTIVITIES ELIGIBLE FOR AS8 SISTANCE.—Section 603(c) (33 U.S.C. 1383(c)) is amend9 ed to read as follows: 

10 ‘‘(c) PROJECTS AND ACTIVITIES ELIGIBLE FOR AS11 SISTANCE.—The amounts of funds available to each State 

12 water pollution control revolving fund shall be used only 

13 for providing financial assistance— 

14 ‘‘(1) to any municipality or intermunicipal, 

15 interstate, or State agency for construction of pub16 licly owned treatment works; 

17 ‘‘(2) for the implementation of a management 

18 program established under section 319; 

19 ‘‘(3) for development and implementation of a 

20 conservation and management plan under section 

21 320; 

22 ‘‘(4) for repair or replacement of decentralized 

23 wastewater treatment systems that treat domestic 

24 sewage; 


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1 ‘‘(5) for measures to manage, reduce, treat, or 

2 reuse municipal stormwater; 

3 ‘‘(6) to any municipality or intermunicipal, 

4 interstate, or State agency for measures to reduce 

5 the demand for publicly owned treatment works ca6 pacity through water conservation, efficiency, or 

7 reuse; 

8 ‘‘(7) for the development and implementation of 

9 watershed projects meeting the criteria set forth in 

10 section 122; and 

11 ‘‘(8) to any municipality or intermunicipal, 

12 interstate, or State agency for measures to reduce 

13 the energy consumption needs for publicly owned 

14 treatment works, including the implementation of 

15 energy-efficient or renewable-energy generation tech16 nologies.’’. 

17 (b) EXTENDED REPAYMENT PERIOD.—Section 

18 603(d)(1) (33 U.S.C. 1383(d)(1)) is amended— 

19 (1) in subparagraph (A) by striking ‘‘20 years’’ 

20 and inserting ‘‘the lesser of 30 years or the design 

21 life of the project to be financed with the proceeds 

22 of the loan’’; and 

23 (2) in subparagraph (B) by striking ‘‘not later 

24 than 20 years after project completion’’ and insert25 ing ‘‘upon the expiration of the term of the loan’’. 


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1 (c) FISCAL SUSTAINABILITY PLAN.—Section 

2 603(d)(1) (33 U.S.C. 1383(d)(1)) is further amended— 

3 (1) by striking ‘‘and’’ at the end of subpara4 graph (C); 

5 (2) by inserting ‘‘and’’ at the end of subpara6 graph (D); and 

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

8 ‘‘(E) for any portion of a treatment works 

9 proposed for repair, replacement, or expansion, 

10 and eligible for assistance under section 

11 603(c)(1), the recipient of a loan will develop 

12 and implement a fiscal sustainability plan that 

13 includes— 

14 ‘‘(i) an inventory of critical assets 

15 that are a part of that portion of the treat16 ment works; 

17 ‘‘(ii) an evaluation of the condition 

18 and performance of inventoried assets or 

19 asset groupings; 

20 ‘‘(iii) a certification that the recipient 

21 has evaluated and will be implementing 

22 water and energy conservation efforts as 

23 part of the plan; and 

24 ‘‘(iv) a plan for maintaining, repair25 ing, and, as necessary, replacing that porVerDate Mar 15 2010 05:57 Oct 12, 2011 Jkt 019200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H3145.IH H3145

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1 tion of the treatment works and a plan for 

2 funding such activities;’’. 

3 (d) ADMINISTRATIVE EXPENSES.—Section 603(d)(7) 

4 (33 U.S.C. 1383(d)(7)) is amended by inserting before the 

5 period at the end the following: ‘‘, $400,000 per year, or 

1 6 ⁄5 percent per year of the current valuation of the fund, 

7 whichever amount is greatest, plus the amount of any fees 

8 collected by the State for such purpose regardless of the 

9 source’’. 

10 (e) TECHNICAL AND PLANNING ASSISTANCE FOR

11 SMALL SYSTEMS.—Section 603(d) (33 U.S.C. 1383(d)) is 

12 amended— 

13 (1) by striking ‘‘and’’ at the end of paragraph 

14 (6); 

15 (2) by striking the period at the end of para16 graph (7) and inserting a semicolon; and 

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

18 ‘‘(8) to provide grants to owners and operators 

19 of treatment works that serve a population of 

20 10,000 or fewer for obtaining technical and planning 

21 assistance and assistance in financial management, 

22 user fee analysis, budgeting, capital improvement 

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1 ment and operations, except that the total amount 

2 provided by the State in grants under this para3 graph for a fiscal year may not exceed one percent 

4 of the total amount of assistance provided by the 

5 State from the fund in the preceding fiscal year, or 

6 2 percent of the total amount received by the State 

7 in capitalization grants under this title in the pre8 ceding fiscal year, whichever amount is greatest; and 

9 ‘‘(9) to provide grants to owners and operators 

10 of treatment works for conducting an assessment of 

11 the energy and water consumption of the treatment 

12 works, and evaluating potential opportunities for en13 ergy and water conservation through facility oper14 ation and maintenance, equipment replacement, and 

15 projects or activities that promote the efficient use 

16 of energy and water by the treatment works, except 

17 that the total amount provided by the State in 

18 grants under this paragraph for a fiscal year may 

19 not exceed one percent of the total amount of assist20 ance provided by the State from the fund in the pre21 ceding fiscal year, or 2 percent of the total amount 

22 received by the State in capitalization grants under 

23 this title in the preceding fiscal year, whichever 

24 amount is greatest.’’. 


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1 (f) ADDITIONAL SUBSIDIZATION.—Section 603 (33 

2 U.S.C. 1383) is amended by adding at the end the fol3 lowing: 

4 ‘‘(i) ADDITIONAL SUBSIDIZATION.— 

5 ‘‘(1) IN GENERAL.—In any case in which a 

6 State provides assistance to a municipality or inter7 municipal, interstate, or State agency under sub8 section (d), the State may provide additional sub9 sidization, including forgiveness of principal and 

10 negative interest loans— 

11 ‘‘(A) to benefit a municipality that— 

12 ‘‘(i) meets the State’s affordability 

13 criteria established under paragraph (2); 

14 or 

15 ‘‘(ii) does not meet the State’s afford16 ability criteria if the recipient— 

17 ‘‘(I) seeks additional subsidiza18 tion to benefit individual ratepayers in 

19 the residential user rate class; 

20 ‘‘(II) demonstrates to the State 

21 that such ratepayers will experience a 

22 significant hardship from the increase 

23 in rates necessary to finance the 

24 project or activity for which assistance 

25 is sought; and 


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1 ‘‘(III) ensures, as part of an as2 sistance agreement between the State 

3 and the recipient, that the additional 

4 subsidization provided under this 

5 paragraph is directed through a user 

6 charge rate system (or other appro7 priate method) to such ratepayers; or 

8 ‘‘(B) to implement a process, material, 

9 technique, or technology to address water-effi10 ciency goals, address energy-efficiency goals, 

11 mitigate stormwater runoff, or encourage envi12 ronmentally sensitive project planning, design, 

13 and construction. 

14 ‘‘(2) AFFORDABILITY CRITERIA.— 

15 ‘‘(A) ESTABLISHMENT.—On or before Sep16 tember 30, 2012, and after providing notice 

17 and an opportunity for public comment, a State 

18 shall establish affordability criteria to assist in 

19 identifying municipalities that would experience 

20 a significant hardship raising the revenue nec21 essary to finance a project or activity eligible 

22 for assistance under section 603(c)(1) if addi23 tional subsidization is not provided. Such cri24 teria shall be based on income data, population 

25 trends, and other data determined relevant by 


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1 the State, including whether the project or ac2 tivity is to be carried out in an economically 

3 distressed area, as described in section 301 of 

4 the Public Works and Economic Development 

5 Act of 1965 (42 U.S.C. 3161). 

6 ‘‘(B) EXISTING CRITERIA.—If a State has 

7 previously established, after providing notice 

8 and an opportunity for public comment, afford9 ability criteria that meet the requirements of 

10 subparagraph (A), the State may use the cri11 teria for the purposes of this subsection. For 

12 purposes of this Act, any such criteria shall be 

13 treated as affordability criteria established 

14 under this paragraph. 

15 ‘‘(C) INFORMATION TO ASSIST STATES.— 

16 The Administrator may publish information to 

17 assist States in establishing affordability cri18 teria under subparagraph (A). 

19 ‘‘(3) PRIORITY.—A State may give priority to a 

20 recipient for a project or activity eligible for funding 

21 under section 603(c)(1) if the recipient meets the 

22 State’s affordability criteria. 

23 ‘‘(4) SET-ASIDE.— 

24 ‘‘(A) IN GENERAL.—In any fiscal year in 

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1 gation more than $1,000,000,000 for the pur2 poses of this title, a State shall provide addi3 tional subsidization under this subsection in the 

4 amount specified in subparagraph (B) to eligi5 ble entities described in paragraph (1) for 

6 projects and activities identified in the State’s 

7 intended use plan prepared under section 

8 606(c) to the extent that there are sufficient 

9 applications for such assistance. 

10 ‘‘(B) AMOUNT.—In a fiscal year described 

11 in subparagraph (A), a State shall set aside for 

12 purposes of subparagraph (A) an amount not 

13 less than 25 percent of the difference be14 tween— 

15 ‘‘(i) the total amount that would have 

16 been allotted to the State under section 

17 604 for such fiscal year if the amount 

18 available to the Administrator for obliga19 tion under this title for such fiscal year 

20 had been equal to $1,000,000,000; and 

21 ‘‘(ii) the total amount allotted to the 

22 State under section 604 for such fiscal 

23 year. 

24 ‘‘(5) LIMITATION.—The total amount of addi25 tional subsidization provided under this subsection 


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1 by a State may not exceed 30 percent of the total 

2 amount of capitalization grants received by the State 

3 under this title in fiscal years beginning after Sep4 tember 30, 2011.’’. 

5 SEC. 1304. ALLOTMENT OF FUNDS. 

6 (a) IN GENERAL.—Section 604(a) (33 U.S.C. 

7 1384(a)) is amended to read as follows: 

8 ‘‘(a) ALLOTMENTS.— 

9 ‘‘(1) FISCAL YEARS 2012 AND 2013.—Sums ap10 propriated to carry out this title for each of fiscal 

11 years 2012 and 2013 shall be allotted by the Admin12 istrator in accordance with the formula used to allot 

13 sums appropriated to carry out this title for fiscal 

14 year 2011. 

15 ‘‘(2) FISCAL YEAR 2014 AND THEREAFTER.— 

16 Sums appropriated to carry out this title for fiscal 

17 year 2014 and each fiscal year thereafter shall be al18 lotted by the Administrator as follows: 

19 ‘‘(A) Amounts that do not exceed 

20 $1,350,000,000 shall be allotted in accordance 

21 with the formula described in paragraph (1). 

22 ‘‘(B) Amounts that exceed $1,350,000,000 

23 shall be allotted in accordance with the formula 

24 developed by the Administrator under sub25 section (d).’’. 


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1 (b) PLANNING ASSISTANCE.—Section 604(b) (33 

2 U.S.C. 1384(b)) is amended by striking ‘‘1 percent’’ and 

3 inserting ‘‘2 percent’’. 

4 (c) FORMULA.—Section 604 (33 U.S.C. 1384) is 

5 amended by adding at the end the following: 

6 ‘‘(d) FORMULA BASED ON WATER QUALITY

7 NEEDS.—Not later than September 30, 2013, and after 

8 providing notice and an opportunity for public comment, 

9 the Administrator shall publish an allotment formula 

10 based on water quality needs in accordance with the most 

11 recent survey of needs developed by the Administrator 

12 under section 516(b) and any other information the Ad13 ministrator considers appropriate.’’. 

14 SEC. 1305. INTENDED USE PLAN. 

15 (a) INTEGRATED PRIORITY LIST.—Section 603(g) 

16 (33 U.S.C. 1383(g)) is amended to read as follows: 

17 ‘‘(g) PRIORITY LIST.— 

18 ‘‘(1) IN GENERAL.—For fiscal year 2013 and 

19 each fiscal year thereafter, a State shall establish or 

20 update a list of projects and activities for which as21 sistance is sought from the State’s water pollution 

22 control revolving fund. Such projects and activities 

23 shall be listed in priority order based on the method24 ology established under paragraph (2). The State 

25 may provide financial assistance from the State’s 


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1 water pollution control revolving fund only with re2 spect to a project or activity included on such list. 

3 In the case of projects and activities eligible for as4 sistance under section 603(c)(2), the State may in5 clude a category or subcategory of nonpoint sources 

6 of pollution on such list in lieu of a specific project 

7 or activity. 

8 ‘‘(2) METHODOLOGY.— 

9 ‘‘(A) IN GENERAL.—Not later than 1 year 

10 after the date of enactment of this paragraph, 

11 and after providing notice and opportunity for 

12 public comment, each State (acting through the 

13 State’s water quality management agency and 

14 other appropriate agencies of the State) shall 

15 establish a methodology for developing a pri16 ority list under paragraph (1). 

17 ‘‘(B) PRIORITY FOR PROJECTS AND AC18 TIVITIES THAT ACHIEVE GREATEST WATER

19 QUALITY IMPROVEMENT.—In developing the 

20 methodology, the State shall seek to achieve the 

21 greatest degree of water quality improvement, 

22 taking into consideration the requirements of 

23 section 602(b)(5) and section 603(i)(3), wheth24 er such water quality improvements would be 

25 realized without assistance under this title, and 


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1 whether the proposed projects and activities 

2 would address water quality impairments asso3 ciated with existing treatment works. 

4 ‘‘(C) CONSIDERATIONS IN SELECTING

5 PROJECTS AND ACTIVITIES.—In determining 

6 which projects and activities will achieve the 

7 greatest degree of water quality improvement, 

8 the State shall consider— 

9 ‘‘(i) information developed by the 

10 State under sections 303(d) and 305(b); 

11 ‘‘(ii) the State’s continuing planning 

12 process developed under section 303(e); 

13 ‘‘(iii) the State’s management pro14 gram developed under section 319; and 

15 ‘‘(iv) conservation and management 

16 plans developed under section 320. 

17 ‘‘(D) NONPOINT SOURCES.—For categories 

18 or subcategories of nonpoint sources of pollu19 tion that a State may include on its priority list 

20 under paragraph (1), the State shall consider 

21 the cumulative water quality improvements as22 sociated with projects or activities in such cat23 egories or subcategories. 

24 ‘‘(E) EXISTING METHODOLOGIES.—If a 

25 State has previously developed, after providing 


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1 notice and an opportunity for public comment, 

2 a methodology that meets the requirements of 

3 this paragraph, the State may use the method4 ology for the purposes of this subsection.’’. 

5 (b) INTENDED USE PLAN.—Section 606(c) (33 

6 U.S.C. 1386(c)) is amended— 

7 (1) in the matter preceding paragraph (1) by 

8 striking ‘‘each State shall annually prepare’’ and in9 serting ‘‘each State (acting through the State’s 

10 water quality management agency and other appro11 priate agencies of the State) shall annually prepare 

12 and publish’’; 

13 (2) by striking paragraph (1) and inserting the 

14 following: 

15 ‘‘(1) the State’s priority list developed under 

16 section 603(g);’’; 

17 (3) in paragraph (4)— 

18 (A) by striking ‘‘and (6)’’ and inserting 

19 ‘‘(6), (15), and (17)’’; and 

20 (B) by striking ‘‘and’’ at the end; 

21 (4) by striking the period at the end of para22 graph (5) and inserting ‘‘; and’’; and 

23 (5) by adding at the end the following: 

24 ‘‘(6) if the State does not fund projects and ac25 tivities in the order of the priority established under 


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1 section 603(g), an explanation of why such a change 

2 in order is appropriate.’’. 

3 (c) TRANSITIONAL PROVISION.—Before completion 

4 of a priority list based on a methodology established under 

5 section 603(g) of the Federal Water Pollution Control Act 

6 (as amended by this section), a State shall continue to 

7 comply with the requirements of sections 603(g) and 

8 606(c) of such Act, as in effect on the day before the date 

9 of enactment of this Act. 

10 SEC. 1306. ANNUAL REPORTS. 

11 Section 606(d) (33 U.S.C. 1386(d)) is amended— 

12 (1) by striking ‘‘(d) ANNUAL REPORT.—Begin13 ning’’ and inserting the following: 

14 ‘‘(d) ANNUAL REPORTS.— 

15 ‘‘(1) STATE REPORT.—Beginning’’; 

16 (2) in paragraph (1) (as so designated) by 

17 striking ‘‘loan amounts,’’ and inserting ‘‘loan 

18 amounts, the eligible purposes under section 603(c) 

19 for which the assistance has been provided,’’; and 

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

21 ‘‘(2) FEDERAL REPORT.—The Administrator 

22 shall annually prepare, and make publicly available, 

23 a report on the performance of the projects and ac24 tivities carried out in whole or in part with assist25 ance made available by a State water pollution conVerDate Mar 15 2010 05:57 Oct 12, 2011 Jkt 019200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\H3145.IH H3145

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1 trol revolving fund as authorized under this title 

2 during the previous fiscal year, including— 

3 ‘‘(A) the annual and cumulative financial 

4 assistance provided to States under this title; 

5 ‘‘(B) the categories and types of such 

6 projects and activities; 

7 ‘‘(C) an estimate of the number of jobs 

8 created through carrying out such projects and 

9 activities; 

10 ‘‘(D) an assessment of the progress made 

11 toward meeting the goals and purposes of this 

12 Act through such projects and activities; and 

13 ‘‘(E) any additional information that the 

14 Administrator considers appropriate.’’. 

15 SEC. 1307. TECHNICAL ASSISTANCE; REQUIREMENTS FOR 

16 USE OF AMERICAN MATERIALS. 

17 Title VI (33 U.S.C. 1381 et seq.) is amended— 

18 (1) by redesignating section 607 as section 610; 

19 and 

20 (2) by inserting after section 606 the following: 

21 ‘‘SEC. 607. TECHNICAL ASSISTANCE. 

22 ‘‘(a) SIMPLIFIED PROCEDURES.—Not later than 1 

23 year after the date of enactment of this section, the Ad24 ministrator shall assist the States in establishing simVerDate Mar 15 2010 05:57 Oct 12, 2011 Jkt 019200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\H3145.IH H3145

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1 plified procedures for treatment works to obtain assistance 

2 under this title. 

3 ‘‘(b) PUBLICATION OF MANUAL.—Not later than 2 

4 years after the date of the enactment of this section, and 

5 after providing notice and opportunity for public comment, 

6 the Administrator shall publish a manual to assist treat7 ment works in obtaining assistance under this title and 

8 publish in the Federal Register notice of the availability 

9 of the manual. 

10 ‘‘(c) COMPLIANCE CRITERIA.—At the request of any 

11 State, the Administrator, after providing notice and an op12 portunity for public comment, shall assist in the develop13 ment of criteria for a State to determine compliance with 

14 the conditions of funding assistance established under sec15 tions 602(b)(13) and 603(d)(1)(E). 

16 ‘‘SEC. 608. BUY AMERICA. 

17 ‘‘(a) IN GENERAL.—Notwithstanding any other pro18 vision of law, funds made available from a State water 

19 pollution control revolving fund established under this title 

20 may not be used for a project for the construction of a 

21 publicly owned treatment works unless the steel, iron, and 

22 manufactured goods used for the project are produced in 

23 the United States. 

24 ‘‘(b) EXCEPTIONS.—Subsection (a) shall not apply to 

25 a project for the construction of a treatment works if the 


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1 Administrator (in consultation with the Governor of the 

2 State in which the treatment works will be constructed) 

3 makes a finding that— 

4 ‘‘(1) the steel, iron, or manufactured goods re5 quired for the project are a de minimis component 

6 of the project, as determined in accordance with reg7 ulations to be issued by the Administrator; 

8 ‘‘(2) the steel, iron, or manufactured goods re9 quired for the project are not produced in the 

10 United States— 

11 ‘‘(A) in sufficient and reasonably available 

12 quantities; or 

13 ‘‘(B) to a satisfactory quality; or 

14 ‘‘(3) the use of steel, iron, and manufactured 

15 goods produced in the United States for the project 

16 will increase the total cost of the project by more 

17 than 25 percent. 

18 ‘‘(c) WAIVER REQUIREMENTS.— 

19 ‘‘(1) PUBLIC NOTIFICATION AND OPPORTUNITY

20 FOR COMMENT.— 

21 ‘‘(A) IN GENERAL.—At least 30 days be22 fore making a finding under subsection (b), the 

23 Administrator shall provide notice of and an op24 portunity for public comment on the finding. 


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1 ‘‘(B) NOTICE REQUIREMENTS.—Any notice 

2 provided under this subparagraph shall— 

3 ‘‘(i) include a justification for the pro4 posed finding; and 

5 ‘‘(ii) be provided by electronic means, 

6 including on the Internet. 

7 ‘‘(2) DETAILED JUSTIFICATION IN FEDERAL

8 REGISTER.—If the Administrator makes a finding 

9 under subsection (b), the Administrator shall— 

10 ‘‘(A) publish in the Federal Register a de11 tailed justification for the finding; and 

12 ‘‘(B) provide notice of and an opportunity 

13 for public comment on the detailed justification 

14 at least 30 days before the finding takes effect. 

15 ‘‘(3) ANNUAL REPORT.—Not later than Feb16 ruary 1 of each year beginning after the date of en17 actment of this section, the Administrator shall sub18 mit to the Committee on Transportation and Infra19 structure of the House of Representatives and the 

20 Committee on Environment and Public Works of the 

21 Senate a report that— 

22 ‘‘(A) specifies each project with respect to 

23 which the Administrator made a finding under 

24 subsection (b) during the preceding calendar 

25 year; and 


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1 ‘‘(B) describes the justification for each 

2 such finding. 

3 ‘‘(d) STATE REQUIREMENTS.—The Administrator 

4 may not impose a limitation or condition on assistance 

5 provided under this title that restricts— 

6 ‘‘(1) a State from imposing requirements that 

7 are more stringent than those imposed under this 

8 section with respect to limiting the use of articles, 

9 materials, or supplies mined, produced, or manufac10 tured in foreign countries for projects carried out 

11 with such assistance; or 

12 ‘‘(2) any recipient of assistance from a State 

13 water pollution control revolving fund established 

14 under this title from complying with such State re15 quirements. 

16 ‘‘(e) INTENTIONAL VIOLATIONS.—Pursuant to proce17 dures established under subpart 9.4 of chapter 1 of title 

18 48, Code of Federal Regulations, a person shall be ineli19 gible to receive a contract or subcontract funded with 

20 amounts made available from a State water pollution con21 trol revolving fund established under this title if the Ad22 ministrator or a court determines that such person inten23 tionally— 

24 ‘‘(1) affixed a label bearing a ‘Made in Amer25 ica’ inscription, or any inscription with the same 


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1 meaning, to any steel, iron, or manufactured goods 

2 that— 

3 ‘‘(A) were used in a project to which this 

4 section applies; and 

5 ‘‘(B) were not produced in the United 

6 States; or 

7 ‘‘(2) represented that any steel, iron, or manu8 factured goods were produced in the United States 

9 that— 

10 ‘‘(A) were used in projects to which this 

11 section applies; and 

12 ‘‘(B) were not produced in the United 

13 States. 

14 ‘‘(f) CONSISTENCY WITH INTERNATIONAL AGREE15 MENTS.— 

16 ‘‘(1) IN GENERAL.—This section shall be ap17 plied in a manner that is consistent with United 

18 States obligations under international agreements. 

19 ‘‘(2) TREATMENT OF FOREIGN COUNTRIES IN

20 VIOLATION OF INTERNATIONAL AGREEMENTS.—The 

21 Administrator shall prohibit the use of steel, iron, 

22 and manufactured goods produced in a foreign coun23 try in a project funded with amounts made available 

24 from a State water pollution control revolving fund 

25 established under this title, including any project for 


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1 which the Administrator has made a finding under 

2 subsection (b), if the Administrator, in consultation 

3 with the United States Trade Representative, deter4 mines that the foreign country is in violation of the 

5 terms of an agreement with the United States by 

6 discriminating against steel, iron, or manufactured 

7 goods that are produced in the United States and 

8 covered by the agreement.’’. 

9 SEC. 1308. ECONOMIC HARDSHIP WAIVER. 

10 Notwithstanding the requirements of section 

11 602(b)(2) of the Federal Water Pollution Control Act (33 

12 U.S.C. 1382(b)(2)), for fiscal years 2012 and 2013, the 

13 Administrator of the Environmental Protection Agency 

14 may waive the requirement that a State deposit an amount 

15 equal to 20 percent of the State’s annual capitalization 

16 grant into the State’s water pollution control revolving 

17 fund established under title VI of that Act if the Adminis18 trator determines that the State is currently experiencing 

19 a local, statewide, or regional economic hardship and that 

20 providing such a deposit would adversely impact the 

21 State’s ability to restore and maintain the chemical, phys22 ical, and biological integrity of waters located within the 

23 State. 


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1 SEC. 1309. AUTHORIZATION OF APPROPRIATIONS. 

2 Section 610 (as redesignated by section 1307 of this 

3 Act) is amended by striking paragraphs (1) through (5) 

4 and inserting the following: 

5 ‘‘(1) $2,400,000,000 for fiscal year 2012; 

6 ‘‘(2) $2,700,000,000 for fiscal year 2013; 

7 ‘‘(3) $2,800,000,000 for fiscal year 2014; 

8 ‘‘(4) $2,900,000,000 for fiscal year 2015; and 

9 ‘‘(5) $3,000,000,000 for fiscal year 2016.’’. 

10 Subtitle D—General Provisions 

11 SEC. 1401. DEFINITION OF TREATMENT WORKS. 

12 Section 502 (33 U.S.C. 1362) is amended by adding 

13 at the end the following: 

14 ‘‘(26) TREATMENT WORKS.—The term ‘treat15 ment works’ has the meaning given that term in sec16 tion 212.’’. 

17 SEC. 1402. FUNDING FOR INDIAN PROGRAMS. 

18 Section 518(c) (33 U.S.C. 1377) is amended— 

19 (1) by striking ‘‘The Administrator’’ and insert20 ing the following: 

21 ‘‘(1) FISCAL YEARS 1987–2011.—The Adminis22 trator’’; 

23 (2) in paragraph (1) (as so designated)— 

24 (A) by inserting ‘‘and ending before Octo25 ber 1, 2011,’’ after ‘‘1986,’’; and 

26 (B) by striking the second sentence; and 


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

2 ‘‘(2) FISCAL YEAR 2012 AND THEREAFTER.— 

3 For fiscal year 2012 and each fiscal year thereafter, 

4 the Administrator shall reserve, before allotments to 

5 the States under section 604(a), not less than 0.5 

6 percent and not more than 2.0 percent of the funds 

7 made available to carry out title VI. 

8 ‘‘(3) USE OF FUNDS.—Funds reserved under 

9 this subsection shall be available only for grants for 

10 projects and activities eligible for assistance under 

11 section 603(c) to serve— 

12 ‘‘(A) Indian tribes (as defined in section 

13 518(h)); 

14 ‘‘(B) former Indian reservations in Okla15 homa (as determined by the Secretary of the 

16 Interior); and 

17 ‘‘(C) Native villages (as defined in section 

18 3 of the Alaska Native Claims Settlement Act 

19 (43 U.S.C. 1602)).’’. 

20 Subtitle E—Tonnage Duties 

21 SEC. 1501. TONNAGE DUTIES. 

22 (a) IN GENERAL.—Section 60301 of title 46, United 

23 States Code, is amended by striking subsections (a) and 

24 (b) and inserting the following: 

25 ‘‘(a) LOWER RATE.— 


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1 ‘‘(1) IMPOSITION OF DUTY.—A duty is imposed 

2 at the rate described in paragraph (2) at each entry 

3 in a port of the United States of— 

4 ‘‘(A) a vessel entering from a foreign port 

5 or place in North America, Central America, 

6 the West Indies Islands, the Bahama Islands, 

7 the Bermuda Islands, or the coast of South 

8 America bordering the Caribbean Sea; or 

9 ‘‘(B) a vessel returning to the same port or 

10 place in the United States from which it de11 parted, and not entering the United States 

12 from another port or place, except— 

13 ‘‘(i) a vessel of the United States; 

14 ‘‘(ii) a recreational vessel (as defined 

15 in section 2101 of this title); or 

16 ‘‘(iii) a barge. 

17 ‘‘(2) RATE.—The rate referred to in paragraph 

18 (1) shall be— 

19 ‘‘(A) 4.5 cents per ton (but not more than 

20 a total of 22.5 cents per ton per year) for fiscal 

21 years 2006 through 2011; 

22 ‘‘(B) 9.0 cents per ton (but not more than 

23 a total of 45 cents per ton per year) for fiscal 

24 years 2012 through 2021; and 


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1 ‘‘(C) 2 cents per ton (but not more than 

2 a total of 10 cents per ton per year) for each 

3 fiscal year thereafter. 

4 ‘‘(b) HIGHER RATE.— 

5 ‘‘(1) IMPOSITION OF DUTY.—A duty is imposed 

6 at the rate described in paragraph (2) on a vessel 

7 at each entry in a port of the United States from 

8 a foreign port or place not named in subsection 

9 (a)(1). 

10 ‘‘(2) RATE.—The rate referred to in paragraph 

11 (1) shall be— 

12 ‘‘(A) 13.5 cents per ton (but not more 

13 than a total of 67.5 cents per ton per year) for 

14 fiscal years 2006 through 2011; 

15 ‘‘(B) 27 cents per ton (but not more than 

16 a total of $1.35 per ton per year) for fiscal 

17 years 2012 through 2021, and 

18 ‘‘(C) 6 cents per ton (but not more than 

19 a total of 30 cents per ton per year) for each 

20 fiscal year thereafter.’’. 

21 (b) CONFORMING AMENDMENTS.—Such title is fur22 ther amended— 

23 (1) by striking the heading for subtitle VI and 

24 inserting the following: 


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1 ‘‘Subtitle VI—Clearance and 

2 Tonnage Duties’’; 

3 (2) in the heading for chapter 603, by striking 

4 ‘‘TAXES’’ and inserting ‘‘DUTIES’’; 

5 (3) in the headings of sections in chapter 603, 

6 by striking ‘‘taxes’’ each place it appears and in7 serting ‘‘duties’’; 

8 (4) in the heading for subsection (a) of section 

9 60303, by striking ‘‘TAX’’ and inserting ‘‘DUTY’’; 

10 (5) in the text of sections in chapter 603, by 

11 striking ‘‘taxes’’ each place it appears and inserting 

12 ‘‘duties’’; and 

13 (6) in the text of sections in chapter 603, by 

14 striking ‘‘tax’’ each place it appears and inserting 

15 ‘‘duty’’. 

16 (c) CLERICAL AMENDMENTS.—Such title is further 

17 amended— 

18 (1) in the title analysis by striking the item re19 lating to subtitle VI and inserting the following: 

‘‘VI. CLEARANCE AND TONNAGE DUTIES ...........................60101’’; 

20 (2) in the analysis for subtitle VI by striking 

21 the item relating to chapter 603 and inserting the 

22 following: 

‘‘603. Tonnage Duties and Light Money .................................................. 60301’’; 

23 and 

24 (3) in the analysis for chapter 603— 


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1 (A) by striking the items relating to sec2 tions 60301 and 60302 and inserting the fol3 lowing: 

‘‘60301. Regular tonnage duties. 

‘‘60302. Special tonnage duties.’’; 

4 and 

5 (B) by striking the item relating to section 

6 60304 and inserting the following: 

‘‘60304. Presidential suspension of tonnage duties and light money.’’. 

7 TITLE II—ALTERNATIVE WATER 

8 SOURCE PROJECTS 

9 SEC. 2001. PILOT PROGRAM FOR ALTERNATIVE WATER 

10 SOURCE PROJECTS. 

11 (a) SELECTION OF PROJECTS.—Section 220(d)(2) 

12 (33 U.S.C. 1300(d)(2)) is amended by inserting before the 

13 period at the end the following: ‘‘or whether the project 

14 is located in an area which is served by a public water 

15 system serving 10,000 individuals or fewer’’. 

16 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

17 220(j) (33 U.S.C. 1300(j)) is amended by striking 

18 ‘‘$75,000,000 for fiscal years 2002 through 2004’’ and 

19 inserting ‘‘$50,000,000 for each of fiscal years 2012 

20 through 2016’’. 


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1 TITLE III—SEWER OVERFLOW 

2 CONTROL GRANTS 

3 SEC. 3001. SEWER OVERFLOW CONTROL GRANTS. 

4 (a) ADMINISTRATIVE REQUIREMENTS.—Section 

5 221(e) (33 U.S.C. 1301(e)) is amended to read as follows: 

6 ‘‘(e) ADMINISTRATIVE REQUIREMENTS.—A project 

7 that receives assistance under this section shall be carried 

8 out subject to the same requirements as a project that 

9 receives assistance from a State water pollution control 

10 revolving fund under title VI, except to the extent that 

11 the Governor of the State in which the project is located 

12 determines that a requirement of title VI is inconsistent 

13 with the purposes of this section. For the purposes of this 

14 subsection, a Governor may not determine that the re15 quirements of title VI relating to the application of section 

16 513 are inconsistent with the purposes of this section.’’. 

17 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

18 221(f) (33 U.S.C. 1301(f)) is amended to read as follows: 

19 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— 

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

21 appropriated to carry out this section $500,000,000 

22 for each of fiscal years 2012 through 2016. 

23 ‘‘(2) MINIMUM ALLOCATIONS.—To the extent 

24 there are sufficient eligible project applications, the 

25 Administrator shall ensure that a State uses not less 


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1 than 20 percent of the amount of the grants made 

2 to the State under subsection (a) in a fiscal year to 

3 carry out projects to control municipal combined 

4 sewer overflows and sanitary sewer overflows 

5 through the use of green infrastructure, water and 

6 energy efficiency improvements, and other environ7 mentally innovative activities.’’. 

8 (c) ALLOCATION OF FUNDS.—Section 221(g) of such 

9 Act (33 U.S.C. 1301(g)) is amended to read as follows: 

10 ‘‘(g) ALLOCATION OF FUNDS.— 

11 ‘‘(1) FISCAL YEAR 2012.—Subject to subsection 

12 (h), the Administrator shall use the amounts appro13 priated to carry out this section for fiscal year 2012 

14 for making grants to municipalities and municipal 

15 entities under subsection (a)(2) in accordance with 

16 the criteria set forth in subsection (b). 

17 ‘‘(2) FISCAL YEAR 2013 AND THEREAFTER.— 

18 Subject to subsection (h), the Administrator shall 

19 use the amounts appropriated to carry out this sec20 tion for fiscal year 2013 and each fiscal year there21 after for making grants to States under subsection 

22 (a)(1) in accordance with a formula to be established 

23 by the Administrator, after providing notice and an 

24 opportunity for public comment, that allocates to 

25 each State a proportional share of such amounts 


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1 based on the total needs of the State for municipal 

2 combined sewer overflow controls and sanitary sewer 

3 overflow controls identified in the most recent survey 

4 conducted pursuant to section 516 and any other in5 formation the Administrator considers appropriate.’’. 

6 (d) REPORTS.—The first sentence of section 221(i) 

7 (33 U.S.C. 1301(i)) is amended by striking ‘‘2003’’ and 

8 inserting ‘‘2013’’. 

9 TITLE IV—CLEAN WATER TRUST 

10 FUND 

11 SEC. 4001. ESTABLISHMENT OF CLEAN WATER TRUST 

12 FUND. 

13 Subchapter A of chapter 98 of the Internal Revenue 

14 Code of 1986 (relating to the establishment of trust funds) 

15 is amended by adding at the end the following new section: 

16 ‘‘SEC. 9512. CLEAN WATER TRUST FUND. 

17 ‘‘(a) CREATION OF TRUST FUND.—There is estab18 lished in the Treasury of the United States a trust fund 

19 to be known as the ‘Clean Water Trust Fund’, consisting 

20 of such amounts as may be appropriated or credited to 

21 the Fund as provided in this section or section 9602(b). 

22 ‘‘(b) TRANSFERS TO TRUST FUND.—There are here23 by appropriated to the Clean Water Trust Fund amounts 

24 equivalent to— 


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1 ‘‘(1) fees, taxes, or other sources of revenue 

2 specifically collected and deposited in the Fund or 

3 received in the Treasury for the purposes provided 

4 in this section; and 

5 ‘‘(2) any penalty paid pursuant to section 309 

6 of the Federal Water Pollution Control Act (33 

7 U.S.C. 1319) (other than those that result of viola8 tions of section 311 of such Act). 

9 ‘‘(c) APPROPRIATION OF ADDITIONAL SUMS.—There 

10 are hereby authorized to be appropriated to the Clean 

11 Water Trust Fund such additional sums as may be re12 quired to make the expenditures referred to in subsection 

13 (d). 

14 ‘‘(d) EXPENDITURES.—Amounts in the Clean Water 

15 Trust Fund shall be available, as provided in appropria16 tions Acts, for the following purposes: 

17 ‘‘(1) Capitalization grants under section 601 of 

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

19 1381). 

20 ‘‘(2) Grants to States and interstate agencies 

21 under section 106(a) of that Act (33 U.S.C. 

22 1256(a)). 

23 ‘‘(3) Grants under sections 104(b) and 104(g) 

24 of that Act (33 U.S.C. 1254(b) and 1254(g)). 


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1 ‘‘(4) To cover the cost of making direct loans 

2 or guaranteeing obligations authorized under the 

3 Water Pollution Control Investment Act.’’. 

4 SEC. 4002. ALLOCATION OF FUNDS. 

5 Title VI (as amended by section 1307 of this Act) 

6 is further amended by inserting after section 608 the fol7 lowing: 

8 ‘‘SEC. 609. CLEAN WATER TRUST FUND. 

9 ‘‘(a) ALLOCATION OF FUNDS.—The Administrator 

10 shall allocate funds made available for a fiscal year out 

11 of the Clean Water Trust Fund established by section 

12 9512 of the Internal Revenue Code of 1986 among eligible 

13 programs and activities as follows: 

14 ‘‘(1) 80 percent for capitalization grants under 

15 section 604. 

16 ‘‘(2) 10 percent to cover the cost of making di17 rect loans or guaranteeing obligations authorized 

18 under the Water Pollution Control Investment Act. 

19 ‘‘(3) 7.5 percent for grants to States and inter20 state agencies under section 106(a). 

21 ‘‘(4) 2.5 percent for grants under sections 

22 104(b) and 104(g). 

23 ‘‘(b) AMOUNTS MADE AVAILABLE FOR CAPITALIZA24 TION GRANTS.—To the extent there are sufficient applica25 tions, not less than 30 percent of the amounts allocated 


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1 for capitalization grants under subsection (a)(1) shall be 

2 used for one or more of the following purposes: 

3 ‘‘(1) Projects or activities to address green in4 frastructure. 

5 ‘‘(2) Water or energy efficiency improvements 

6 or other environmentally innovative activities. 

7 ‘‘(3) The implementation of best management 

8 practices or measures identified in an approved 

9 nonpoint source management program under section 

10 319.’’. 

11 SEC. 4003. REVENUES FOR CLEAN WATER TRUST FUND. 

12 (a) STUDY ON IDENTIFICATION OF REVENUES.—Not 

13 later than 45 days after the date of enactment of this Act, 

14 the Director of the Congressional Budget Office, in con15 sultation with the Administrator of the Environmental 

16 Protection Agency and the Secretary of the Treasury, 

17 shall undertake a study of potential funding mechanisms 

18 and revenue sources for the Clean Water Trust Fund es19 tablished by section 9512(d) of the Internal Revenue Code 

20 of 1986 (as added by this Act) that are sufficient to sup21 port annual funding levels of at least $10,000,000,000 for 

22 the purposes identified in section 9512(d) of that Act. 

23 (b) CONDUCT OF STUDY.—In carrying out the study, 

24 the Director shall— 


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1 (1) take into consideration whether potential 

2 funding mechanisms and revenue sources— 

3 (A) are broad based; 

4 (B) are equitably allocated; and 

5 (C) can be efficiently collected; 

6 (2) review and, to the extent practicable, utilize 

7 existing studies and reports on potential sources of 

8 revenue for a clean water trust fund, including— 

9 (A) the report of the Government Account10 ability Office entitled ‘‘Clean Water Infrastruc11 ture: A Variety of Issues Need to Be Consid12 ered When Designing a Clean Water Trust 

13 Fund’’ (GAO–09–037, May 2009); and 

14 (B) the report of the Environmental Pro15 tection Agency entitled ‘‘Alternative Funding 

16 Study: Water Quality Fees and Debt Financing 

17 Issues’’ (EPA 832–R–96–001, June 1996); 

18 (3) consult with Federal, State, tribal, and local 

19 agencies, representatives of business and industry, 

20 representatives of entities operating publicly owned 

21 treatment works, representatives of conservation and 

22 environmental organizations, representatives of rate23 payer organizations, and other interested persons; 

24 and 

25 (4) provide the opportunity for public hearings. 


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1 (c) REPORT TO CONGRESS.—Not later than 1 year 

2 after the date of enactment of this Act, the Director shall 

3 submit a report on the results of the study to— 

4 (1) the Committee on Transportation and In5 frastructure, the Committee on Ways and Means, 

6 and the Committee on the Budget of the House of 

7 Representatives; and 

8 (2) the Committee on Environment and Public 

9 Works, the Committee on Finance, and the Com10 mittee on the Budget of the Senate. 

11 TITLE V—WATER POLLUTION 

12 CONTROL INVESTMENT 

13 SEC. 5001. SHORT TITLE. 

14 This title may be cited as the ‘‘Water Pollution Con15 trol Investment Act’’. 

16 SEC. 5002. DEFINITIONS. 

17 In this title, the following definitions apply: 

18 (1) ADMINISTRATOR.—The term ‘‘Adminis19 trator’’ means the Administrator of the Environ20 mental Protection Agency. 

21 (2) BORROWER.—The term ‘‘borrower’’ means 

22 a person who owes payments of interest or principal 

23 on an obligation guaranteed under this title. 

24 (3) COST OF A DIRECT LOAN.—The term ‘‘cost 

25 of a direct loan’’ means the ‘‘cost of a direct loan’’ 


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1 as that term is used in section 502(5) of the Federal 

2 Credit Reform Act of 1990 (2 U.S.C. 661a(5)). 

3 (4) COST OF A GUARANTEE.—The term ‘‘cost 

4 of a guarantee’’ means the ‘‘cost of a loan guar5 antee’’ as that term is used in section 502(5) of the 

6 Federal Credit Reform Act of 1990 (2 U.S.C. 

7 661a(5)). 

8 (5) DIRECT LOAN.—The term ‘‘direct loan’’ has 

9 the meaning given that term in section 502 of the 

10 Federal Credit Reform Act of 1990 (2 U.S.C. 661a). 

11 (6) GUARANTEE.— 

12 (A) IN GENERAL.—The term ‘‘guarantee’’ 

13 has the meaning given the term ‘‘loan guar14 antee’’ in section 502 of the Federal Credit Re15 form Act of 1990 (2 U.S.C. 661a). 

16 (B) INCLUSION.—The term ‘‘guarantee’’ 

17 includes a loan guarantee commitment (as that 

18 term is defined in section 502 of the Federal 

19 Credit Reform Act of 1990 (2 U.S.C. 661a)). 

20 (7) LARGE WATER INFRASTRUCTURE

21 PROJECT.— 

22 (A) IN GENERAL.—The term ‘‘large water 

23 infrastructure project’’ means a project for con24 struction of a publicly owned treatment works 

25 that qualifies for assistance under section 


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1 603(c) of the Federal Water Pollution Control 

2 Act (33 U.S.C. 1383(c)), but because of its sig3 nificant scope and cost is not likely to receive 

4 assistance under that Act, as determined by the 

5 Administrator. 

6 (B) GUIDELINES.—The Administrator 

7 shall issue guidelines for determining whether a 

8 project qualifies as a large water infrastructure 

9 project. 

10 (8) OBLIGATION.—The term ‘‘obligation’’ 

11 means a loan or other debt obligation. 

12 (9) STATE INFRASTRUCTURE FINANCING AU13 THORITY.—The term ‘‘State infrastructure financing 

14 authority’’ means the State entity established or des15 ignated by the Governor of a State to receive a cap16 italization grant provided by, or otherwise carry out 

17 the requirements of, title VI of the Federal Water 

18 Pollution Control Act (33 U.S.C. 1381 et. seq.). 

19 SEC. 5003. DIRECT LOANS. 

20 (a) IN GENERAL.— 

21 (1) USE OF LOANS.—The Administrator may 

22 make a direct loan to a State infrastructure financ23 ing authority for use in the same manner, and sub24 ject to the same terms and conditions (unless other25 wise specified in this section), as a capitalization 


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1 grant made under section 601 of the Federal Water 

2 Pollution Control Act (33 U.S.C. 1831). 

3 (2) TERMS AND CONDITIONS.—The Adminis4 trator may make a loan under this section on such 

5 terms and conditions (including requirements for au6 dits) as the Administrator determines appropriate. 

7 (b) LOAN REQUIREMENTS.— 

8 (1) MAXIMUM AMOUNT.—The amount of a loan 

9 made under this section to a State infrastructure fi10 nancing authority shall not exceed the applicable 

11 percentage for the State establishing such authority 

12 of the total amount available under this title for dis13 bursement, based on the allotment for the State in 

14 accordance with section 604 of the Federal Water 

15 Pollution Control Act (33 U.S.C. 1384). 

16 (2) TERM OF LOAN.—The final maturity date 

17 of a loan made under this section shall not be later 

18 than 35 years after the date on which funds are dis19 bursed to a State infrastructure financing authority. 

20 (3) INTEREST RATE.—The Administrator may 

21 make a loan under this section only if the Adminis22 trator determines that the interest rate on the loan 

23 is appropriate, taking into account the prevailing 

24 rate of interest in the private sector for similar 

25 loans. 


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1 (4) SECURITY.—The Administrator shall re2 quire a State infrastructure financing authority re3 ceiving a loan under this section to use a rate cov4 enant, coverage requirement, or similar security fea5 ture adequate to ensure loan repayment. 

6 (5) REPAYMENT.— 

7 (A) SCHEDULE.—The Administrator shall 

8 set a repayment schedule for each loan made 

9 under this section based on the projected cash 

10 flow to the State infrastructure financing au11 thority, including consideration of the effect on 

12 such cash flow of the security features de13 scribed in paragraph (4). 

14 (B) COMMENCEMENT.—Scheduled loan re15 payments of principal or interest on a loan 

16 made under this section shall commence not 

17 later than 5 years after the date on which the 

18 loan is made. 

19 (C) DEFERRAL OF PAYMENTS.— 

20 (i) IN GENERAL.—If the Adminis21 trator determines that a State infrastruc22 ture financing authority lacks the re23 sources to make scheduled payments on a 

24 loan made under this section based on cir25 cumstances not foreseeable at the time the 


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1 loan is made, the Administrator may allow 

2 for the deferral of such payments. 

3 (ii) INTEREST.—Any payment de4 ferred under clause (i) shall— 

5 (I) continue to accrue interest 

6 until fully repaid; and 

7 (II) be amortized over the re8 maining term of the loan. 

9 (D) PREPAYMENT.—Payments on the loan 

10 may be made in advance with no penalty. 

11 (c) SALE OF LOANS.—After notifying the State infra12 structure financing authority, the Administrator, in con13 sultation with the Secretary of the Treasury, may sell a 

14 loan made under this section, if the Administrator deter15 mines that the sale can be made on favorable terms. 

16 (d) CONFORMING REQUIREMENTS.—The require17 ments of sections 211, 511(c)(1), and 513 of the Federal 

18 Water Pollution Control Act (33 U.S.C. 1291, 1371(c)(2), 

19 and 1372) apply to the construction of a project carried 

20 out in whole or in part with assistance made available 

21 through a loan under this section in the same manner as 

22 treatment works for which grants are made available 

23 under the Federal Water Pollution Control Act. 

24 (e) FEES.—The Administrator shall charge and col25 lect fees from State infrastructure financing authorities 


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1 receiving loans under this section in amounts the Adminis2 trator determines are sufficient to cover the administrative 

3 expenses associated with carrying out this section and, as 

4 provided in advance in appropriations Acts, use such 

5 amounts to cover such expenses. 

6 (f) RECORDS; AUDITS.— 

7 (1) IN GENERAL.—A State infrastructure fi8 nancing authority receiving a loan under this section 

9 shall keep such records and other pertinent docu10 ments as the Administrator shall prescribe by regu11 lation, including such records as the Administrator 

12 may require to facilitate an effective audit of loans 

13 made under this section. 

14 (2) ACCESS.—The Administrator and the 

15 Comptroller General of the United States, or their 

16 duly authorized representatives, shall have access, 

17 for the purpose of audits, to records and other perti18 nent documents kept under paragraph (1). 

19 SEC. 5004. GUARANTEES. 

20 (a) IN GENERAL.— 

21 (1) USE OF GUARANTEES.—The Administrator 

22 may make a guarantee under this title for an obliga23 tion for construction of a large water infrastructure 

24 project in accordance with the requirements of this 

25 section. 


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1 (2) SELECTION CRITERIA.— 

2 (A) ESTABLISHMENT.—The Administrator 

3 shall establish criteria for selecting among large 

4 water infrastructure projects in making guaran5 tees under this title. 

6 (B) CRITERIA.—In establishing selection 

7 criteria under this paragraph, the Adminis8 trator shall include consideration of the fol9 lowing: 

10 (i) The extent to which the project is 

11 nationally or regionally significant. 

12 (ii) The creditworthiness of the 

13 project, including a determination by the 

14 Administrator that any financing has ap15 propriate features to ensure repayment. 

16 (iii) The extent to which the project 

17 uses new technologies that enhance the en18 vironmental benefits of the project. 

19 (iv) The cost of a guarantee under 

20 this title. 

21 (v) The extent to which the project 

22 helps restore, maintain, or protect the en23 vironment. 

24 (3) FISCAL YEAR LIMITATION.—The Adminis25 trator may not utilize more than 10 percent of the 


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1 funds made available under this title for a fiscal 

2 year to make guarantees under this section during 

3 that fiscal year. 

4 (4) TERMS AND CONDITIONS.—The Adminis5 trator may make a guarantee for a large water in6 frastructure project under this title on such terms 

7 and conditions (including requirements for audits) 

8 as the Administrator determines appropriate. 

9 (5) SECURITY.—The Administrator shall re10 quire a borrower to use a rate covenant, coverage re11 quirement, or similar security feature adequate to 

12 ensure repayment of the obligation. 

13 (b) GUARANTEE REQUIREMENTS.— 

14 (1) PROBABILITY OF REPAYMENT.—The Ad15 ministrator may make a guarantee under this title 

16 only if the Administrator determines that there is a 

17 high probability of repayment by the borrower of the 

18 principal and interest on the obligation. 

19 (2) AMOUNT.— 

20 (A) PERCENTAGE OF TOTAL COST.—The 

21 Administrator may make a guarantee under 

22 this title only if the amount of the obligation 

23 does not exceed 75 percent of the total cost of 

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1 mated at the time at which the guarantee is 

2 issued. 

3 (B) SUFFICIENCY.—The Administrator 

4 may make a guarantee under this title only if 

5 the Administrator determines that the amount 

6 of the obligation, when combined with amounts 

7 available from other sources, will be sufficient 

8 to carry out the project. 

9 (3) NONSUBORDINATION.—The Administrator 

10 may make a guarantee under this title only if the 

11 guarantee is not subordinate to other financing. 

12 (4) INTEREST RATE.—The Administrator may 

13 make a guarantee under this title only if the Admin14 istrator determines that the interest rate on the obli15 gation is appropriate, taking into account the pre16 vailing rate of interest in the private sector for simi17 lar obligations. 

18 (5) TERM.—The Administrator may make a 

19 guarantee under this title only if— 

20 (A) repayment of the obligation is required 

21 over a period not to exceed the lesser of— 

22 (i) 35 years; or 

23 (ii) 90 percent of the projected useful 

24 life of the large water infrastructure 


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1 project to be financed by the obligation (as 

2 determined by the Administrator); and 

3 (B) payments on the obligation are sched4 uled to commence not later than 5 years after 

5 the date of substantial completion of the large 

6 water infrastructure project. 

7 (c) CONFORMING REQUIREMENTS.— 

8 (1) FISCAL SUSTAINABILITY PLAN.—The Ad9 ministrator may make a guarantee for a large water 

10 infrastructure project under this title only if the 

11 owner or operator of such project commits to de12 velop and implement a fiscal sustainability plan that 

13 meets the requirements of section 603(d)(1)(E) of 

14 the Federal Water Pollution Control Act, as added 

15 by this Act. 

16 (2) PRIORITY LIST.—The Administrator may 

17 make a guarantee for a large water infrastructure 

18 project under this title only if such project is on a 

19 State priority list under section 603(g) of the Fed20 eral Water Pollution Control Act (33 U.S.C. 

21 1383(g)), as amended by this Act. 

22 (3) ADDITIONAL REQUIREMENTS.—The require23 ments of sections 211, 511(c)(1), and 513 of the 

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

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1 tion of a large water infrastructure project carried 

2 out in whole or in part with financing made available 

3 through an obligation guaranteed under this title in 

4 the same manner as treatment works for which 

5 grants are made available under the Federal Water 

6 Pollution Control Act. 

7 (d) DEFAULTS.— 

8 (1) PAYMENT BY ADMINISTRATOR.— 

9 (A) IN GENERAL.—If a borrower defaults 

10 on an obligation guaranteed under this title (as 

11 defined in regulations promulgated by the Ad12 ministrator and specified in the guarantee con13 tract), the holder of the guarantee shall have 

14 the right to demand payment of the unpaid 

15 amount from the Administrator. 

16 (B) PAYMENT REQUIRED.—Within such 

17 period as may be specified in the guarantee or 

18 related agreements, the Administrator shall pay 

19 to the holder of a guarantee the unpaid interest 

20 on, and unpaid principal of, the obligation guar21 anteed under this title as to which the borrower 

22 has defaulted, unless the Administrator finds 

23 that there was no default by the borrower in 

24 the payment of interest or principal or that the 

25 default has been remedied. 


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1 (C) FORBEARANCE.—Nothing in this sub2 section precludes any forbearance by the holder 

3 of a guarantee for the benefit of the borrower 

4 which may be agreed upon by the parties to the 

5 obligation and approved by the Administrator. 

6 (2) SUBROGATION.— 

7 (A) IN GENERAL.—If the Administrator 

8 makes a payment under paragraph (1), the Ad9 ministrator shall be subrogated to the rights of 

10 the holder of the guarantee as specified in the 

11 guarantee or related agreements. 

12 (B) SUPERIORITY OF RIGHTS.—The rights 

13 of the Administrator, with respect to any prop14 erty acquired pursuant to a guarantee or re15 lated agreements, shall be superior to the rights 

16 of any other person with respect to the prop17 erty. 

18 (e) PAYMENT OF PRINCIPAL AND INTEREST BY AD19 MINISTRATOR.— 

20 (1) IN GENERAL.—With respect to any obliga21 tion guaranteed under this title, the Administrator 

22 may enter into a contract to pay, and pay, a holder 

23 of the guarantee, for and on behalf of the borrower, 

24 from funds appropriated for that purpose, the prin25 cipal and interest payments which become due and 


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1 payable on the unpaid balance of the obligation if 

2 the Administrator finds that— 

3 (A) the borrower is unable to meet the 

4 payments and is not in default; 

5 (B) it is in the public interest to permit 

6 the borrower to continue to pursue the purposes 

7 of the project; 

8 (C) the probable net benefit to the Federal 

9 Government in paying the principal and interest 

10 will be greater than that which would result in 

11 the event of a default; and 

12 (D) the State or region in which the 

13 project is located is experiencing a period of 

14 local or regional economic hardship that has af15 fected the borrower’s ability to meet the pay16 ments. 

17 (2) AMOUNT.—The amount of the payment 

18 that the Administrator is authorized to pay under 

19 this subsection shall be no greater than the amount 

20 of principal and interest that the borrower is obli21 gated to pay under the obligation. 

22 (3) REIMBURSEMENT.—A payment may be 

23 made under this subsection only if the borrower 

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1 ment (including interest) on terms and conditions 

2 that are satisfactory to the Administrator. 

3 (f) FEES.—The Administrator shall charge and col4 lect fees from borrowers for guarantees made under this 

5 title in amounts the Administrator determines are suffi6 cient to cover the administrative expenses associated with 

7 carrying out this title and, as provided in advance in ap8 propriations Acts, use such amounts to cover such ex9 penses. 

10 (g) RECORDS; AUDITS.— 

11 (1) IN GENERAL.—A borrower shall keep such 

12 records and other pertinent documents as the Ad13 ministrator shall prescribe by regulation, including 

14 such records as the Administrator may require to fa15 cilitate an effective audit of guarantees made under 

16 this title. 

17 (2) ACCESS.—The Administrator and the 

18 Comptroller General of the United States, or their 

19 duly authorized representatives, shall have access, 

20 for the purpose of audits, to records and other perti21 nent documents kept under paragraph (1). 

22 (h) FULL FAITH AND CREDIT.—The full faith and 

23 credit of the United States is pledged to the payment of 

24 all guarantees made under this title. 


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1 SEC. 5005. FUNDING. 

2 (a) AUTHORIZATION OF APPROPRIATIONS.—There 

3 are authorized to be appropriated such sums as are nec4 essary to provide direct loans and the costs of guarantees 

5 under this title. 

6 (b) ALTERNATE FUNDING MECHANISM.—With re7 spect to a guarantee for a large water infrastructure 

8 project under this title, in lieu of funding such guarantee 

9 through a separate appropriation, the borrower of the obli10 gation to be guaranteed may pay a one-time guarantee 

11 fee to the Administrator equal to the cost of the guar12 antee, and the Administrator may use such fee, as pro13 vided in advance in appropriations Acts, to make such 

14 guarantee. 

Æ 


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