I 

111TH CONGRESS 

1ST SESSION H. R. 3202 

To establish a Water Protection and Reinvestment Fund to support investments in clean water and drinking water infrastructure, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 14, 2009 

Mr. BLUMENAUER (for himself, Mr. LATOURETTE, Mr. SIMPSON, Mr. DICKS, 

and Mr. PETRI) introduced the following bill; which was referred to the 

Committee on Transportation and Infrastructure, and in addition to the 

Committees on Energy and Commerce, Ways and Means, and Science 

and Technology, 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 establish a Water Protection and Reinvestment Fund 

to support investments in clean water and drinking water 

infrastructure, 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) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Water Protection and Reinvestment Act of 2009’’. 

6 (b) TABLE OF CONTENTS.— 

Sec. 1. Short title; table of contents. 

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TITLE I—REVENUE 

Sec. 101. Establishment and funding of Water Protection and Reinvestment 

Trust Fund. 

Sec. 102. Allocation of funds. 

TITLE II—STATE WATER POLLUTION CONTROL REVOLVING 

FUNDS 

Sec. 201. Amendment of Federal Water Pollution Control Act. 

Sec. 202. Technical assistance. 

Sec. 203. General authority for capitalization grants. 

Sec. 204. Capitalization grant agreements. 

Sec. 205. Water pollution control revolving loan funds. 

Sec. 206. High priority project grants and principal forgiveness. 

TITLE III—SAFE DRINKING WATER ACT FUNDING 

Sec. 301. Use of State revolving loan funds. 

Sec. 302. Priority system requirements. 

Sec. 303. Affordability. 

Sec. 304. Needs survey. 

Sec. 305. Negotiation of contracts. 

Sec. 306. Drinking water technical assistance for communities. 

TITLE IV—ADDITIONAL GRANT PROGRAMS 

Sec. 401. Definitions. 

Sec. 402. Treatment works and community water system security grants. 

Sec. 403. Climate Change Mitigation and Adaptation Grants. 

Sec. 404. Workforce Development Grants. 

Sec. 405. Sewer overflow control grants. 

Sec. 406. Research, Development, and Technology Demonstration Program. 

Sec. 407. Regional water research centers. 

Sec. 408. Cost of service study. 

Sec. 409. Drug take-back grants. 

Sec. 410. State revolving fund review process. 

1 TITLE I—REVENUE 

2 SEC. 101. ESTABLISHMENT AND FUNDING OF WATER PRO3 TECTION AND REINVESTMENT TRUST FUND. 

4 (a) WATER PROTECTION AND REINVESTMENT

5 TRUST FUND.— 

6 (1) IN GENERAL.—Subchapter A of chapter 98 

7 of the Internal Revenue Code of 1986 (relating to 

8 establishment of trust funds) is amended by adding 

9 at the end the following new section: 

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1 ‘‘SEC. 9511. WATER PROTECTION AND REINVESTMENT 

2 TRUST FUND. 

3 ‘‘(a) CREATION OF TRUST FUND.—There is estab4 lished in the Treasury of the United States a trust fund 

5 to be known as the ‘Water Protection and Reinvestment 

6 Trust Fund’, consisting of such amounts as may be appro7 priated or credited to such fund as provided in this section 

8 or section 9602(b). 

9 ‘‘(b) TRANSFERS TO TRUST FUND.—There are here10 by appropriated to the Water Protection and Reinvest11 ment Trust Fund amounts equivalent to the taxes received 

12 in the Treasury before January 1, 2016, under the fol13 lowing provisions— 

14 ‘‘(1) section 59B (relating to clean water res15 toration tax), and 

16 ‘‘(2) section 4171 (relating to taxes relating to 

17 water). 

18 ‘‘(c) EXPENDITURES.—Amounts in the Water Pro19 tection and Reinvestment Trust Fund shall be available, 

20 as provided in appropriation Acts, only for purposes of in21 vestments in clean water and drinking water infrastruc22 ture in accordance with the Water Protection and Rein23 vestment Act of 2009.’’. 

24 (2) CLERICAL AMENDMENT.—The table of sec25 tions for subchapter A of chapter 98 of such Code 

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1 is amended by adding at the end the following new 

2 item: 

‘‘Sec. 9511. Water Protection and Reinvestment Trust Fund.’’. 

3 (b) EXCISE TAXES FUNDING WATER PROTECTION

4 AND REINVESTMENT TRUST FUND.— 

5 (1) IN GENERAL.—Chapter 32 of such Code is 

6 amended by inserting after subchapter D the fol7 lowing new subchapter: 

8 ‘‘Subchapter E—Taxes Relating to Water 

‘‘Sec. 4171. Imposition of tax. 

‘‘Sec. 4172. Definitions and special rule. 

9 ‘‘SEC. 4171. IMPOSITION OF TAX. 

10 ‘‘(a) WATER-BASED BEVERAGE.—There is hereby 

11 imposed on the sale of any container of water-based bev12 erage by the manufacturer, producer, or importer thereof 

13 a tax equal to 4 cents per container of such beverage 

14 which is 5 gallons or less. For purposes of the preceding 

15 sentence, the manufacturer or producer is the entity that 

16 puts the beverage into the container subject to the tax 

17 under such sentence. 

18 ‘‘(b) WATER DISPOSAL PRODUCT.—There is hereby 

19 imposed on the sale of any water disposal product by the 

20 manufacturer, producer, or importer thereof a tax equal 

21 to 3 percent of the price for which so sold. 

22 ‘‘(c) PHARMACEUTICAL TAX.—There is hereby im23 posed on the sale of any pharmaceutical product by the 

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1 manufacturer, producer, or importer thereof a tax equal 

2 to 0.5 percent of the price for which so sold. 

3 ‘‘(d) TERMINATION.—The taxes imposed by this sec4 tion shall not apply to any production, manufacture, or 

5 importation after December 31, 2015. 

6 ‘‘SEC. 4172. DEFINITIONS AND SPECIAL RULE. 

7 ‘‘(a) WATER-BASED BEVERAGE.—For purposes of 

8 this subchapter— 

9 ‘‘(1) WATER-BASED BEVERAGE.—The term 

10 ‘water-based beverage’ means any beverage which 

11 is— 

12 ‘‘(A) water, or 

13 ‘‘(B) created by mixing water with other 

14 liquids, flavorings, vitamins, or other ingredi15 ents where the resulting product is at least 50 

16 percent water by weight. 

17 ‘‘(2) EXCEPTIONS.—The term ‘water-based bev18 erage’ does not include— 

19 ‘‘(A) any pharmaceutical product, 

20 ‘‘(B) any alcoholic beverage, and 

21 ‘‘(C) any product where— 

22 ‘‘(i) at least 75 percent of the water 

23 that naturally existed in the product is re24 moved, 

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1 ‘‘(ii) the resulting concentrated prod2 uct is shipped and then the water replaced, 

3 and 

4 ‘‘(iii) the beverage is then packaged 

5 for sale. 

6 ‘‘(3) CONTAINER.—The term ‘container’ means 

7 any can, glass bottle, plastic bottle, aseptic con8 tainer, or other sealed package for transportation 

9 and sale. 

10 ‘‘(b) WATER DISPOSAL PRODUCT.—For purposes of 

11 this subchapter— 

12 ‘‘(1) IN GENERAL.—The term ‘water disposal 

13 product’ means any of the following: soaps and de14 tergents, toiletries, toilet tissue, water softeners, and 

15 cooking oils. 

16 ‘‘(2) SOAPS AND DETERGENTS.—The term 

17 ‘soaps and detergents’ means— 

18 ‘‘(A) soaps and other detergents, such as 

19 laundry detergents and dishwashing detergents, 

20 ‘‘(B) toothpaste gels, and 

21 ‘‘(C) tooth powders, 

22 as determined under regulations prescribed by the 

23 Secretary. 

24 ‘‘(3) TOILETRIES.—The term ‘toiletries’ means 

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1 arations, hair preparations, face creams, lotions (in2 cluding sunscreens), and other cosmetic prepara3 tions, as determined under regulations prescribed by 

4 the Secretary. 

5 ‘‘(4) TOILET TISSUE.—The term ‘toilet tissue’ 

6 means toilet tissue, as determined under regulations 

7 prescribed by the Secretary. 

8 ‘‘(5) WATER SOFTENERS.—The term ‘water 

9 softeners’ means farm, household, commercial, and 

10 industrial water softeners, as determined under reg11 ulations prescribed by the Secretary. 

12 ‘‘(6) COOKING OILS.— 

13 ‘‘(A) IN GENERAL.—The term ‘cooking 

14 oils’ means corn oils, soy oils, and other vege15 table oils, as determined under regulations pre16 scribed by the Secretary. 

17 ‘‘(B) EXCEPTION.—The term ‘cooking oils’ 

18 does not mean a product that the Secretary de19 termines, by regulation, is not typically disposed 

20 of, by consumers, directly in wastewater. 

21 ‘‘(c) PHARMACEUTICAL PRODUCT.—The term ‘phar22 maceutical product’ means— 

23 ‘‘(1) a drug (as defined in section 201 of the 

24 Federal Food, Drug, and Cosmetic Act (21 U.S.C. 

25 321)), and 

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1 ‘‘(2) a biological product (as defined in section 

2 351 of the Public Health Service Act (42 U.S.C. 

3 261)). 

4 ‘‘(d) USE TREATED AS SALE.—For purposes of this 

5 subchapter, if any person manufactures, produces, or im6 ports any item on which tax is imposed under this sub7 chapter, and uses such item, then such person shall be 

8 liable for tax under this subchapter in the same manner 

9 as if such item were sold by such person.’’. 

10 (2) CONFORMING AMENDMENT.—The table of 

11 subchapters for chapter 32 of such Code is amended 

12 by inserting after the item relating to subchapter D 

13 the following new item: 

‘‘SUBCHAPTER E. TAXES RELATING TO WATER’’. 

14 (c) CORPORATE INCOME TAX FUNDING WATER PRO15 TECTION AND REINVESTMENT TRUST FUND.— 

16 (1) IN GENERAL.—Subchapter A of chapter 1 

17 of the Internal Revenue Code of 1986 is amended by 

18 inserting at the end the following new part: 

19 ‘‘PART VIII—CLEAN WATER RESTORATION TAX 

20 ‘‘SEC. 59B. CLEAN WATER RESTORATION TAX. 

21 ‘‘(a) IMPOSITION OF TAX.—In the case of a corpora22 tion, there is hereby imposed (in addition to any other tax 

23 imposed by this subtitle) a tax equal to 0.15 percent of 

24 the excess of— 

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1 ‘‘(1) the modified alternative minimum taxable 

2 income of such corporation for the taxable year, over 

3 ‘‘(2) $4,000,000. 

4 ‘‘(b) MODIFIED ALTERNATIVE MINIMUM TAXABLE

5 INCOME.—For purposes of this section, the term ‘modified 

6 alternative minimum taxable income’ has the meaning 

7 given such term by section 59A(b). 

8 ‘‘(c) APPLICABLE RULES.—For purposes of this sec9 tion, rules similar to the rules of subsections (c) and (d) 

10 of section 59A shall apply. 

11 ‘‘(d) APPLICATION OF TAX.—Subsection (a) shall not 

12 apply to a taxable year beginning after December 31, 

13 2015.’’. 

14 (2) CONFORMING AMENDMENTS.— 

15 (A) Section 26(b)(2) of such Code is 

16 amended by striking ‘‘and’’ at the end of sub17 paragraph (W), by striking the period at the 

18 end of subparagraph (X) and inserting ‘‘, and’’, 

19 and by inserting after subparagraph (Y) the fol20 lowing new subparagraph: 

21 ‘‘(Y) section 59B (relating to clean water 

22 restoration tax).’’. 

23 (B) Section 164(a) of such Code is amend24 ed by inserting after paragraph (5) the fol25 lowing new paragraph: 

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1 ‘‘(6) The clean water restoration tax imposed 

2 by section 59B.’’. 

3 (C) Section 275(a)(6) of such Code is 

4 amended by inserting ‘‘or 59B’’ after ‘‘section 

5 59A’’. 

6 (D) Section 882(a)(1) of such Code is 

7 amended by inserting ‘‘59B,’’ after ‘‘59A,’’. 

8 (E) Section 1561(a) of such Code is 

9 amended by striking ‘‘and’’ at the end of para10 graph (3), by striking the period at the end of 

11 paragraph (4) and inserting ‘‘, and’’, and by in12 serting after paragraph (4) the following new 

13 subparagraph: 

14 ‘‘(5) one $4,000,000 amount for purposes of 

15 computing the tax imposed by section 59B.’’. 

16 (F) Section 6425(g)(1)(A) of such Code is 

17 amended by striking ‘‘plus’’ at the end of clause 

18 (iii), by striking ‘‘over’’ at the end of clause (iv) 

19 and inserting ‘‘plus’’, and by inserting after 

20 clause (iv) the following new clause: 

21 ‘‘(iv) the tax imposed by section 59B, 

22 over’’. 

23 (G) Section 6655(c)(1)(A) of such Code is 

24 amended by striking ‘‘plus’’ at the end of clause 

25 (ii), by striking ‘‘over’’ at the end of clause (iii) 

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1 and inserting ‘‘plus’’, and by inserting after 

2 clause (iii) the following new clause: 

3 ‘‘(iv) the tax imposed by section 59B, 

4 over’’. 

5 (d) EFFECTIVE DATES.— 

6 (1) IN GENERAL.—Except as provided in para7 graph (2), the amendments made by this section 

8 shall apply to taxable years beginning after the date 

9 of the enactment of this Act. 

10 (2) EXCISE TAX.—The amendments made by 

11 subsection (b) shall apply to sales on or after the 

12 first calendar quarter beginning after 1 year after 

13 the date of the enactment of this Act. 

14 SEC. 102. ALLOCATION OF FUNDS. 

15 (a) IN GENERAL.—The Administrator of the Envi16 ronmental Protection Agency shall allocate the amount of 

17 funds appropriated out of the Water Protection and Rein18 vestment Fund established by section 9511 of the Internal 

19 Revenue Code of 1986 for a fiscal year among programs 

20 and activities as follows: 

21 (1) CLEAN WATER PROGRAMS.—Of such 

22 amount, the Administrator shall make available— 

23 (A) 48 percent for making capitalization 

24 grants under section 601 of the Federal Water 

25 Pollution Control Act (33 U.S.C. 1381; relating 

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1 to capitalization grants for State water pollu2 tion control revolving funds); 

3 (B) 1.5 percent for making grants under 

4 section 106 of such Act (33 U.S.C. 1256; relat5 ing to grants for pollution control programs); 

6 (C) 2.5 percent for making grants under 

7 section 319 of such Act (33 U.S.C. 1329; relat8 ing to nonpoint source management programs); 

9 and 

10 (D) 0.5 percent for making grants under 

11 section 104(b)(8) of such Act (as added by sec12 tion 202 of this Act; relating to technical assist13 ance to rural and small municipalities and trib14 al governments). 

15 (2) SAFE DRINKING WATER FUNDING.—Of such 

16 amount, the Administrator shall make available— 

17 (A) 35 percent for making capitalization 

18 grants under section 1452 of the Safe Drinking 

19 Water Act (42 U.S.C. 300j–12; relating to cap20 italization grants for State drinking water 

21 treatment revolving loan funds); and 

22 (B) 0.5 percent for providing technical as23 sistance under section 1442(e) of the Safe 

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1 lating to technical assistance for small public 

2 water systems). 

3 (3) ADDITIONAL GRANT PROGRAMS.—Of such 

4 total amount, the Administrator shall make avail5 able— 

6 (A) 0.5 percent for making grants under 

7 section 402 (relating to treatment works and 

8 community systems security); 

9 (B) 1 percent for making grants under 

10 section 403 (relating to climate change and ad11 aptation grants); 

12 (C) 0.05 percent for making grants under 

13 section 109 of the Federal Water Pollution 

14 Control Act (33 U.S.C. 1259) in accordance 

15 with section 404(a) (relating to training grants 

16 and contracts); 

17 (D) 0.05 percent for awarding scholarships 

18 under section 111 of the Federal Water Pollu19 tion Control Act (33 U.S.C. 1261) in accord20 ance with section 404(c) (relating to scholar21 ships for the studies on the operation and main22 tenance of treatment works); 

23 (E) 0.1 percent for establishing training 

24 programs and making grants under section 

25 1442(c) of the Safe Drinking Water Act (42 

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1 U.S.C. 300j–1(c)) in accordance with section 

2 404(d) (relating to training for personnel who 

3 manage or operate public water systems); 

4 (F) 5 percent for making grants under sec5 tion 221 of the Federal Water Pollution Control 

6 Act (33 U.S.C. 1301; relating to sewer overflow 

7 control grants); 

8 (G) 5 percent for carrying out sections 

9 406, 407, and 408 (relating to the national 

10 water infrastructure research, development, and 

11 demonstration program, regional water research 

12 centers, and a cost of service study); and 

13 (H) 0.3 percent for making grants under 

14 section 410(a) (relating to drug take back 

15 grants). 

16 (b) TREATMENT OF FUNDS.—The funds made avail17 able for a program or activity under this section, shall be 

18 in addition to any funds made available for the program 

19 or activity under any other provision of law. 

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1 TITLE II—STATE WATER POLLU2 TION CONTROL REVOLVING 

3 FUNDS 

4 SEC. 201. AMENDMENT OF FEDERAL WATER POLLUTION 

5 CONTROL ACT. 

6 Except as otherwise expressly provided, whenever in 

7 this title an amendment or repeal is expressed in terms 

8 of an amendment to, or repeal of, a section or other provi9 sion, the reference shall be considered to be made to a 

10 section or other provision of the Federal Water Pollution 

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

12 SEC. 202. TECHNICAL ASSISTANCE. 

13 Section 104(b) (33 U.S.C. 1254(b)) is amended— 

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

15 (6); 

16 (2) by striking the period at the end of para17 graph (7) and inserting ‘‘; and’’; and 

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

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

20 ‘‘(A) to provide technical assistance to 

21 rural and small municipalities and tribal gov22 ernments for the purpose of assisting, in con23 sultation with the State in which the assistance 

24 is provided, such municipalities and tribal gov25 ernments in the planning, developing, and acmstockstill on DSKH9S0YB1PROD with BILLS

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1 quisition of financing for eligible projects de2 scribed in section 603(c); 

3 ‘‘(B) to provide technical assistance and 

4 training for rural, small, and tribal publicly 

5 owned treatment works and decentralized 

6 wastewater treatment systems to enable such 

7 treatment works and systems to protect water 

8 quality and achieve and maintain compliance 

9 with the requirements of this Act; and 

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

11 small, and tribal municipalities and municipali12 ties that meet the affordability criteria estab13 lished under section 603(i)(2) by the State in 

14 which the municipality is located with respect to 

15 planning, design, construction, and operation of 

16 publicly owned treatment works and decentral17 ized wastewater treatment systems.’’. 

18 SEC. 203. GENERAL AUTHORITY FOR CAPITALIZATION 

19 GRANTS. 

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

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

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

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

24 Act by providing assistance for projects and activities 

25 identified in section 603(c).’’. 

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1 SEC. 204. CAPITALIZATION GRANT AGREEMENTS. 

2 (a) SPECIFIC REQUIREMENTS.—Section 602(b) (33 

3 U.S.C. 1382(b)) is amended— 

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

5 (9); 

6 (2) by striking the period at the end of para7 graph (10) and inserting a semicolon; and 

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

9 ‘‘(11) the State will require that each contract 

10 and subcontract for program management, construc11 tion management, planning studies, feasibility stud12 ies, architectural services, preliminary engineering, 

13 design, engineering, surveying, mapping, and related 

14 services entered into using amounts from the fund 

15 will be awarded in the same way that a contract for 

16 architectural and engineering services is awarded 

17 under chapter 11 of title 40, United States Code, ex18 cept that such an award shall not be construed as 

19 conferring a proprietary interest upon the United 

20 States; 

21 ‘‘(12) the State will not provide financial assist22 ance using amounts from the fund for any project 

23 that will provide substantial direct benefits to new 

24 communities, lots, or subdivisions, other than a 

25 project to construct an advanced decentralized 

26 wastewater system; 

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1 ‘‘(13) the requirements of section 513 will apply 

2 to the construction of treatment works carried out in 

3 whole or in part with assistance made available by 

4 a State water pollution control revolving fund as au5 thorized under this title, or with assistance made 

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

7 manner as treatment works for which grants are 

8 made under this Act; and 

9 ‘‘(14) the State will allocate funds for high pri10 ority projects in accordance with section 607.’’. 

11 (b) ADVANCED DECENTRALIZED WASTEWATER SYS12 TEM DEFINED.—Section 502 is amended by adding at the 

13 end the following: 

14 ‘‘(25) ADVANCED DECENTRALIZED WASTE15 WATER SYSTEM.—The term ‘advanced decentralized 

16 wastewater system’ means a system for treating do17 mestic sewage that is located at or near a site at 

18 which the sewage is generated, provides more effec19 tive treatment than a conventional septic system, 

20 and includes a plan and funding mechanism for 

21 long-term maintenance.’’. 

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1 SEC. 205. WATER POLLUTION CONTROL REVOLVING LOAN 

2 FUNDS. 

3 (a) PROJECTS AND ACTIVITIES ELIGIBLE FOR AS4 SISTANCE.—Section 603(c) (33 U.S.C. 1383(c)) is amend5 ed to read as follows: 

6 ‘‘(c) PROJECTS AND ACTIVITIES ELIGIBLE FOR AS7 SISTANCE.—The amounts of funds available to each State 

8 water pollution control revolving fund shall be used only 

9 for providing financial assistance— 

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

11 interstate, or State agency for construction of pub12 licly owned treatment works to address the needs of 

13 existing communities; 

14 ‘‘(2) for implementation of measures to increase 

15 the security of publicly owned treatment works, in16 cluding vulnerability assessment updates and safer 

17 alternatives for treatment chemicals; 

18 ‘‘(3) for implementation of a nonpoint manage19 ment program established under section 319; 

20 ‘‘(4) for development and implementation of a 

21 conservation and management plan for an estuary 

22 under section 320; 

23 ‘‘(5) for implementation of measures to man24 age, reduce, treat, capture, or reuse municipal storm 

25 water, agricultural storm water, and return flows 

26 from irrigated agriculture; 

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1 ‘‘(6) for repair or replacement of decentralized 

2 wastewater treatment systems that treat domestic 

3 sewage; 

4 ‘‘(7) to any municipality or intermunicipal, 

5 interstate, or State agency for implementation of 

6 measures to reduce the demand for publicly owned 

7 treatment works capacity through water conserva8 tion, efficiency, or reuse; 

9 ‘‘(8) for implementation of measures to inte10 grate water resource management planning and im11 plementation; 

12 ‘‘(9) to any municipality or intermunicipal, 

13 interstate, or State agency for measures to reduce 

14 the energy consumption needs for publically owned 

15 treatment works, including the implementation of 

16 energy efficient or renewable generation tech17 nologies; 

18 ‘‘(10) for projects to correct failing residential 

19 septic systems or cesspools; and 

20 ‘‘(11) for implementation of technologies, man21 agement programs, or other measures— 

22 ‘‘(A) to improve monitoring for and to 

23 alert the owner or operator of a publicly owned 

24 treatment works of the occurrence of a spill, 

25 overflow, or other discharge or release; and 

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1 ‘‘(B) to provide for public notification of a 

2 spill, overflow, or other discharge or release of 

3 pollution into waters of the United States or 

4 from point sources into areas in which there is 

5 a potential risk of public exposure.’’. 

6 (b) EXTENDED REPAYMENT PERIOD.—Section 

7 603(d)(1) (33 U.S.C. 1383(d)(1)) is amended— 

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

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

10 life of the project to be financed with the proceeds 

11 of the loan’’; and 

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

13 than 20 years after project completion’’ and insert14 ing ‘‘upon the expiration of the term of the loan’’. 

15 (c) FISCAL SUSTAINABILITY PLAN.—Section 

16 603(d)(1) (33 U.S.C. 1383(d)(1)) is further amended— 

17 (1) by striking ‘‘and’’ at the end of subpara18 graph (C); 

19 (2) by inserting ‘‘and’’ at the end of subpara20 graph (D); and 

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

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

23 proposed for repair, replacement, or expansion, 

24 and eligible for assistance under section 

25 603(c)(1), the recipient of such assistance will 

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1 develop and implement a fiscal sustainability 

2 plan that includes— 

3 ‘‘(i) an inventory of critical assets 

4 that are a part of that portion of the treat5 ment works; 

6 ‘‘(ii) an evaluation of the condition 

7 and performance of inventoried assets or 

8 asset groupings; 

9 ‘‘(iii) a plan for maintaining, repair10 ing, and, as necessary, replacing that por11 tion of the treatment works and a plan for 

12 funding such activities; and 

13 ‘‘(iv) a certification that the recipient 

14 has evaluated and will be implementing 

15 water and energy conservation efforts as 

16 part of the plan;’’. 

17 (d) EXPENSES OF ADMINISTERING STATE FUNDS.— 

18 Section 603(d)(7) (33 U.S.C. 1383(d)(7)) is amended by 

19 inserting before the period at the end the following: ‘‘or 

$400,000 per year, or 1 20 ⁄5 percent per year of the current 

21 valuation of the fund, whichever amount is greatest, plus 

22 the amount of any fees collected by the State for such 

23 purpose regardless of the source’’. 

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1 (e) 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 an innovative or alter9 native process, material, technique, or tech10 nology (including low-impact technologies, non11 structural protection of surface waters, a new 

12 or improved method of waste treatment, and 

13 nutrient pollutant trading) that may result in 

14 greater environmental benefits, or equivalent 

15 environmental benefits at reduced cost, when 

16 compared to a standard process, material, tech17 nique, or technology. 

18 ‘‘(2) AFFORDABILITY CRITERIA.— 

19 ‘‘(A) ESTABLISHMENT.—On or before Sep20 tember 30, 2010, and after providing notice 

21 and an opportunity for public comment, a State 

22 shall establish affordability criteria to assist in 

23 identifying municipalities that would experience 

24 a significant hardship raising the revenue nec25 essary to finance a project or activity eligible 

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1 for assistance under section 603(c)(1) if addi2 tional subsidization is not provided. Such cri3 teria shall be based on income data, population 

4 trends, and other data determined relevant by 

5 the State. 

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

16 recipient for a project or activity eligible for funding 

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

18 State’s affordability criteria. 

19 ‘‘(4) LIMITATION.—The total amount of addi20 tional subsidization provided under this subsection 

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

22 amount of capitalization grants (less the amounts 

23 required to be allocated in accordance with section 

24 607) received by the State under this title in fiscal 

25 years beginning after September 30, 2009.’’. 

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1 (f) PRIORITIZATION.—Section 603(g) (33 U.S.C. 

2 1383(g)) is amended to read as follows: 

3 ‘‘(g) PRIORITY SYSTEM REQUIREMENT.— 

4 ‘‘(1) DEFINITIONS.—In this subsection, the fol5 lowing definitions apply: 

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

8 ‘‘(i) the consolidation of management 

9 functions or ownership with another facil10 ity; or 

11 ‘‘(ii) the formation of cooperative 

12 partnerships. 

13 ‘‘(B) TRADITIONAL WASTEWATER AP14 PROACH.—The term ‘traditional wastewater ap15 proach’ means a managed system used to col16 lect and treat wastewater from an entire service 

17 area consisting of— 

18 ‘‘(i) collection sewers; 

19 ‘‘(ii) a centralized treatment plant 

20 using biological, physical, or chemical 

21 treatment processes; and 

22 ‘‘(iii) a direct point source discharge 

23 to surface water. 

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

25 assistance from the water pollution control revolving 

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

2 system that— 

3 ‘‘(A) takes into consideration appropriate 

4 chemical, physical, and biological data relating 

5 to water quality that the State considers rea6 sonably available and of sufficient quality; 

7 ‘‘(B) ensures that projects undertaken with 

8 assistance under this title are designed to 

9 achieve, as determined by the State, the opti10 mum water quality management, consistent 

11 with the public health and water quality goals 

12 and requirements of this Act; 

13 ‘‘(C) provides for public notice and oppor14 tunity to comment on the establishment of the 

15 priority system and the summary under sub16 paragraph (D); and 

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

18 than biennially in summary form, of a descrip19 tion of projects in the State that are eligible for 

20 assistance under this 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 the extent the information is 

3 available. 

4 ‘‘(3) WEIGHT GIVEN TO APPLICATIONS.—After 

5 determining project priorities under paragraph (2), a 

6 State shall give greater weight to an application for 

7 assistance if the application contains such informa8 tion as the State determines to be necessary and in9 cludes— 

10 ‘‘(A) approaches other than a traditional 

11 wastewater approach that treat or minimize 

12 sewage or urban storm water discharges 

13 using— 

14 ‘‘(i) decentralized or distributed storm 

15 water controls; 

16 ‘‘(ii) decentralized wastewater treat17 ment; 

18 ‘‘(iii) low-impact development tech19 nologies and nonstructural approaches; 

20 ‘‘(iv) stream buffers; 

21 ‘‘(v) wetland restoration and enhance22 ment; 

23 ‘‘(vi) actions to minimize the quantity 

24 of and direct connections to impervious 

25 surfaces; 

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1 ‘‘(vii) soil and vegetation, or other 

2 permeable materials; or 

3 ‘‘(viii) actions that increase efficient 

4 water use, water conservation, or water 

5 reuse; 

6 ‘‘(B) a demonstration of consistency with 

7 State, regional, and municipal watershed plans, 

8 water conservation and efficiency plans, or inte9 grated water resource management plans; 

10 ‘‘(C) a proposal by the applicant dem11 onstrating flexibility through alternative means 

12 to carry out responsibilities under Federal regu13 lations, which may include watershed permit14 ting and other innovative management ap15 proaches, while achieving results that the Ad16 ministrator determines are measurably superior 

17 when compared to regulatory standards; or 

18 ‘‘(D) a proposal by the applicant providing 

19 for the implementation of effective utility man20 agement principles, as identified in the 2007 

21 Agreement between the Environmental Protec22 tion Agency and major water and wastewater 

23 associations.’’. 

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1 SEC. 206. HIGH PRIORITY PROJECT GRANTS AND PRIN2 CIPAL FORGIVENESS. 

3 (a) IN GENERAL.—Title VI (33 U.S.C. 1381 et seq.) 

4 is amended— 

5 (1) by redesignating section 607 as section 608; 

6 and 

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

8 ‘‘SEC. 607. HIGH PRIORITY PROJECT GRANTS AND PRIN9 CIPAL FORGIVENESS. 

10 ‘‘(a) IN GENERAL.—A State shall allocate for pro11 viding assistance for high priority projects in accordance 

12 with the requirements of this section— 

13 ‘‘(1) 50 percent of the total amount of capital14 ization grants received by the State in a fiscal year 

15 under section 601 that is attributable to funds ap16 propriated out of the Water Protection and Rein17 vestment Trust Fund; and 

18 ‘‘(2) 50 percent of the State contributions made 

19 under section 602(b)(2) in connection with that total 

20 amount. 

21 ‘‘(b) AUTHORITY TO MAKE GRANTS AND FORGIVE

22 PRINCIPAL.—Notwithstanding the requirements of section 

23 603(d), assistance provided by a State for high priority 

24 projects under subsection (a) shall be in the form of a 

25 grant or a loan under which the State forgives repayment 

26 of 100 percent of the principal amount of the loan. 

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1 ‘‘(c) IDENTIFICATION OF HIGH PRIORITY

2 PROJECTS.— 

3 ‘‘(1) IN GENERAL.—A State shall provide as4 sistance under this section in a manner that is con5 sistent with the priority lists established under sec6 tions 216 and 603. 

7 ‘‘(2) PRIORITY.—In providing assistance under 

8 this section, a State shall give greater weight to 

9 projects that address the most serious water pollu10 tion problems and— 

11 ‘‘(A) benefit communities with the greatest 

12 need (determined on the basis of affordability 

13 criteria to be established by the State); or 

14 ‘‘(B) incorporate nonstructural or decen15 tralized treatment practices. 

16 ‘‘(d) MATCHING FUNDS.—The amount of a grant or 

17 loan for a project under this section shall be 50 percent 

18 of the project cost. The remaining project cost shall be 

19 provided by the State from sources other than capitaliza20 tion grants under section 601. 

21 ‘‘(e) APPLICABILITY.—Subsection (a) shall apply 

22 with respect to each fiscal year beginning after the date 

23 of enactment of this section.’’. 

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1 (b) ELIGIBILITY OF INDIAN TRIBES.—Section 518(e) 

2 (33 U.S.C. 1377(e)) is amended by striking ‘‘and 406’’ 

3 and inserting ‘‘406, and 607’’. 

4 TITLE III—SAFE DRINKING 

5 WATER ACT FUNDING 

6 SEC. 301. USE OF STATE REVOLVING LOAN FUNDS. 

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

8 (42 U.S.C. 300j–12(a)(2)) is amended— 

9 (1) by redesignating the first through fifth sen10 tences as subparagraphs (A) through (E), respec11 tively, and by adjusting the margins of such sub12 paragraphs so as to align with subparagraph (B) (as 

13 amended by paragraph (2) of this section); and 

14 (2) by striking subparagraph (B), as so des15 ignated, and inserting the following: 

16 ‘‘(B) Financial assistance under this sec17 tion may be used by a public water system only 

18 for expenditures (not including monitoring, op19 eration, and maintenance expenditures) of a 

20 type or category which the Administrator has 

21 determined, through guidance, will facilitate 

22 compliance with national primary drinking 

23 water regulations applicable to the system 

24 under section 1412 or otherwise significantly 

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1 further the health protection objectives of this 

2 title, including expenditures— 

3 ‘‘(i) for planning, design, and associ4 ated preconstruction activities; 

5 ‘‘(ii) to replace or rehabilitate aging 

6 treatment, storage (including reservoirs), 

7 or distribution facilities of public water 

8 systems; 

9 ‘‘(iii) for capital projects to upgrade 

10 or enhance the security of public water 

11 systems; 

12 ‘‘(iv) to consolidate management func13 tions with other public water systems; 

14 ‘‘(v) to increase the energy efficiency 

15 or water efficiency (or both) of a public 

16 water system; or 

17 ‘‘(vi) for onsite projects to generate 

18 renewable energy for a public water sys19 tem.’’. 

20 SEC. 302. PRIORITY SYSTEM REQUIREMENTS. 

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

22 (42 U.S.C. 300j–12(b)(3)) is amended— 

23 (1) in subparagraph (B), by striking ‘‘periodi24 cally’’ and inserting ‘‘at least biennially’’; 

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1 (2) by redesignating subparagraph (B) as sub2 paragraph (C); 

3 (3) by inserting after subparagraph (A) the fol4 lowing: 

5 ‘‘(B) INFRASTRUCTURE IMPROVEMENT.— 

6 Notwithstanding subparagraph (A), an intended 

7 use plan shall provide, to the maximum extent 

8 practicable, that priority for the use of at least 

1 9 ⁄3 of amounts made available from the Water 

10 Protection and Reinvestment Trust Fund estab11 lished by section 9511 of the Internal Revenue 

12 Code of 1986 to the State loan fund of the 

13 State be given to projects to replace or rehabili14 tate aging treatment, storage (including res15 ervoirs), or distribution facilities of public water 

16 systems that regularly serve more than 100,000 

17 persons.’’; and 

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

19 ‘‘(D) WEIGHT GIVEN TO APPLICATIONS.— 

20 In determining project priorities, the State shall 

21 give greater weight to an application for assist22 ance by a public water system if the application 

23 includes— 

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

25 a description of the condition of the assets; 

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1 ‘‘(ii) a schedule for replacement of as2 sets; 

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

4 all life-cycle costs indicating sources of rev5 enue from ratepayers, grants, bonds, other 

6 loans, and other sources to meet the costs; 

7 ‘‘(iv) in the case of a public water sys8 tem that regularly serves fewer than 

9 10,000 persons, a review of options for 

10 consolidating management functions of the 

11 system with management functions of 

12 other public water systems; 

13 ‘‘(v) reliance on methodologies or 

14 technologies that are environmentally sen15 sitive, non-structural, or both environ16 mentally sensitive and non-structural; 

17 ‘‘(vi) demonstration of consistency 

18 with State, regional, and municipal water19 shed plans; 

20 ‘‘(vii) a water conservation plan con21 sistent with guidelines published for such 

22 plans by the Administrator pursuant to 

23 section 1455(a); 

24 ‘‘(viii) approaches to improve the sus25 tainability of the system such as— 

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1 ‘‘(I) water efficiency or conserva2 tion; 

3 ‘‘(II) use of reclaimed water; and 

4 ‘‘(III) actions to increase energy 

5 efficiency; and 

6 ‘‘(ix) such other information as the 

7 State determines necessary.’’. 

8 SEC. 303. AFFORDABILITY. 

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

10 (42 U.S.C. 300j–12(d)(3)) is amended in the first sen11 tence by inserting ‘‘or portion of a service area’’ after 

12 ‘‘service area’’. 

13 SEC. 304. NEEDS SURVEY. 

14 Section 1452(h) of the Safe Drinking Water Act (42 

15 U.S.C. 300j–12(h)) is amended— 

16 (1) by striking ‘‘The Administrator shall con17 duct’’ and inserting the following: 

18 ‘‘(1) IN GENERAL.—The Administrator shall 

19 conduct’’; and 

20 (2) by adding at the end following: 

21 ‘‘(2) REPORT.—Each report under paragraph 

22 (1) shall detail the capital improvement needs of eli23 gible public water systems according to the popu24 lation served by such water systems and shall in25 clude not fewer than 4 size categories of public 

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1 water systems. One such size category shall consist 

2 of public water systems serving a population of not 

3 less than 100,000 and the other such size categories 

4 shall consist of public water systems serving popu5 lations of less than 100,000.’’. 

6 SEC. 305. NEGOTIATION OF CONTRACTS. 

7 Section 1452 of the Safe Drinking Water Act (42 

8 U.S.C. 300j–12) is amended by adding at the end the fol9 lowing: 

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

11 be carried out using funds made directly available by a 

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

14 preliminary engineering, design, engineering, surveying, 

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

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

19 40, United States Code; or 

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

22 State).’’. 

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1 SEC. 306. DRINKING WATER TECHNICAL ASSISTANCE FOR 

2 COMMUNITIES. 

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

4 U.S.C. 300j–1(e)) is amended— 

5 (1) in the first sentence, by striking ‘‘The Ad6 ministrator may provide’’ and inserting the fol7 lowing: 

8 ‘‘(1) PUBLIC WATER SYSTEMS.—The Adminis9 trator may provide’’; 

10 (2) by striking the term ‘‘subsection’’ each 

11 place it appears and inserting ‘‘paragraph’’; 

12 (3) by striking the fifth sentence and all that 

13 follows and inserting the following: 

14 ‘‘In providing assistance under this paragraph, the Admin15 istrator shall give priority to small public water systems 

16 that have, either individually or collectively, the greatest 

17 need in the States, and to nonprofit organizations deter18 mined by the Administrator to be qualified and most effec19 tive at assisting such small public water systems.’’; and 

20 (4) by adding at the end the following new 

21 paragraphs: 

22 ‘‘(2) WELLS AND WELL SYSTEMS.— 

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

24 shall provide grants to nonprofit organizations 

25 to provide technical assistance to communities 

26 and individuals regarding the design, operation, 

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1 construction, and maintenance of household 

2 wells and small shared well-systems that pro3 vide drinking water. 

4 ‘‘(B) FORM OF ASSISTANCE.—Technical 

5 assistance referred to in subparagraph (A) may 

6 include— 

7 ‘‘(i) training and education; 

8 ‘‘(ii) operation of a hotline; and 

9 ‘‘(iii) conducting other activities relat10 ing to the design and construction of 

11 household, shared, and small water well 

12 systems. 

13 ‘‘(C) PRIORITY.—In providing grants 

14 under this paragraph, the Administrator shall 

15 give priority to nonprofit organization appli16 cants that, as determined by the Adminis17 trator— 

18 ‘‘(i) are qualified; 

19 ‘‘(ii) will be the most effective at as20 sisting those communities or individuals 

21 that have, either individually or collectively, 

22 the greatest need in the States; and 

23 ‘‘(iii) have demonstrated experience in 

24 providing similar technical assistance and 

25 in developing similar projects. 

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1 ‘‘(3) FUNDING.— 

2 ‘‘(A) LOBBYING EXPENSES.—No portion 

3 of any State loan fund established under section 

4 1452 and no portion of any funds made avail5 able under this subsection may be used for lob6 bying expenses. 

7 ‘‘(B) INDIAN TRIBES.—Of the total 

8 amount made available under this subsection 

9 for each fiscal year, 3 percent shall be used for 

10 technical assistance to public water systems 

11 owned or operated by Indian tribes.’’. 

12 TITLE IV—ADDITIONAL GRANT 

13 PROGRAMS 

14 SEC. 401. DEFINITIONS. 

15 In this title, the following definitions apply: 

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

17 the National Academy of Sciences. 

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

21 (3) COMMUNITY WATER SYSTEM.—The term 

22 ‘‘community water system’’ has the meaning given 

23 that term in section 1401 of the Safe Drinking 

24 Water Act (42 U.S.C. 300f). 

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1 (4) PUBLIC WATER SYSTEM.—The term ‘‘public 

2 water system’’ has the meaning given that term in 

3 section 1401 of the Safe Drinking Water Act (42 

4 U.S.C. 300f). 

5 (5) TREATMENT WORKS.—The term ‘‘treatment 

6 works’’ has the meaning given that term in section 

7 212 of the Federal Water Pollution Control Act (33 

8 U.S.C. 1292). 

9 (6) WATER PROTECTION AND REINVESTMENT

10 TRUST FUND.—The term ‘‘Water Protection and Re11 investment Trust Fund’’ means the trust fund es12 tablished by section 9511 of the Internal Revenue 

13 Code of 1986, as added by section 101(a) of this 

14 Act. 

15 SEC. 402. TREATMENT WORKS AND COMMUNITY WATER 

16 SYSTEM SECURITY GRANTS. 

17 (a) GRANTS FOR SECURITY ENHANCEMENTS.—The 

18 Administrator may make a grant to any State, munici19 pality, publicly owned treatment works, or community 

20 water system— 

21 (1) for capital projects that increase the secu22 rity of the community water system or publicly 

23 owned treatment works; and 

24 (2) for the completion or update of a vulner25 ability assessment, emergency response plan, or site 

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1 security plan required under section 1433 of the 

2 Safe Drinking Water Act (42 U.S.C. 300i–2) or any 

3 other applicable law. 

4 (b) FEDERAL SHARE.—The Federal share of the 

5 costs for which a grant is made under this section shall 

6 be 65 percent. 

7 (c) FUNDING.—The Administrator shall carry out 

8 this section using funds appropriated out of the Water 

9 Protection and Reinvestment Trust Fund that are allo10 cated for that purpose under section 102. 

11 SEC. 403. CLIMATE CHANGE MITIGATION AND ADAPTATION 

12 GRANTS. 

13 (a) GRANT PROGRAM.—The Administrator shall 

14 carry out a competitive grant program to support efforts 

15 by publicly owned treatment works and community water 

16 systems to take actions to increase energy efficiency, re17 duce greenhouse gas emissions, and mitigate the impacts 

18 of climate change. 

19 (b) ELIGIBLE ACTIVITIES.—In order to carry out the 

20 program under subsection (b), the Administrator shall 

21 award grants to publicly owned treatment works and com22 munity water systems for the following: 

23 (1) Facility or process modifications that reduce 

24 the use of energy or water, or both. 

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1 (2) The installation of small renewable energy 

2 generators, including methane capture, wind tur3 bines, and micro water turbines. 

4 (3) Sustainable practices that minimize the ad5 verse environmental impacts of climate change on 

6 water quality and quantity. 

7 (4) Projects that increase the ability of publicly 

8 owned treatment works or community water systems 

9 to withstand the impacts of climate change. 

10 (c) FEDERAL SHARE.—The Federal share of the 

11 costs for which a grant is made under this section shall 

12 be 65 percent. 

13 (d) MAXIMUM GRANT AMOUNT.—The Administrator 

14 shall not make a grant under this section to a grantee 

15 that exceeds $2,000,000 per fiscal year. 

16 (e) FUNDING.—The Administrator shall carry out 

17 this section using funds appropriated out of the Water 

18 Protection and Reinvestment Trust Fund that are allo19 cated for that purpose under section 102. 

20 SEC. 404. WORKFORCE DEVELOPMENT GRANTS. 

21 (a) TRAINING GRANTS AND CONTRACTS.— 

22 (1) FUNDING.—The Administrator may make 

23 grants under section 109 of the Federal Water Pol24 lution Control Act (33 U.S.C. 1259), using funds 

25 appropriated out of the Water Protection and Reinmstockstill on DSKH9S0YB1PROD with BILLS

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1 vestment Trust Fund that are allocated for that 

2 purpose under section 102, to ensure that an ade3 quate supply of certified wastewater treatment oper4 ators exists. 

5 (2) AMENDMENTS.—Section 109 of such Act 

6 (33 U.S.C. 1259) is amended— 

7 (A) in the first sentence of subsection 

8 (a)— 

9 (i) by striking ‘‘operation,’’ and in10 serting ‘‘operation, construction,’’; 

11 (ii) by striking ‘‘and other facilities’’ 

12 and inserting ‘‘other facilities (including 

13 stormwater treatment facilities)’’; and 

14 (iii) by inserting ‘‘, and nonstructural 

15 treatment options’’ after ‘‘water quality 

16 control’’; 

17 (B) in subsection (b)(1) by striking ‘‘con18 struction’’ and inserting ‘‘construction, expan19 sion, or modernization’’; and 

20 (C) in subsection (b) by striking para21 graphs (3) and (4) and inserting the following: 

22 ‘‘(3) Facilities for which grants are awarded under 

23 this section before, on, or after the date of enactment of 

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1 ernization and upgrades through grants under this sec2 tion.’’. 

3 (b) APPLICATION FOR TRAINING GRANT OR CON4 TRACT; ALLOCATION OF GRANTS OR CONTRACTS.—Sec5 tion 110(2) of such Act (33 U.S.C. 1260(2)) is amended 

6 by striking ‘‘United States’’ and inserting ‘‘States’’. 

7 (c) AWARD OF SCHOLARSHIPS.— 

8 (1) FUNDING.—The Administrator may award 

9 scholarships under section 111 of the Federal Water 

10 Pollution Control Act (33 U.S.C. 1261), using funds 

11 appropriated out of the Water Protection and Rein12 vestment Trust Fund that are allocated for that 

13 purpose under section 102, for undergraduate and 

14 graduate study by persons who plan to enter an oc15 cupation involving the operation and maintenance of 

16 treatment works. 

17 (2) AMENDMENTS.—Section 111 of such Act 

18 (33 U.S.C. 1261) is amended— 

19 (A) in paragraph (1)— 

20 (i) by striking ‘‘undergraduate’’ and 

21 inserting ‘‘undergraduate and graduate’’; 

22 (ii) by striking ‘‘operation’’ and in23 serting ‘‘construction, operation,’’; and 

24 (iii) by striking ‘‘but not to exceed 

25 four academic years’’; 

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1 (B) in paragraph (2)— 

2 (i) by striking ‘‘use of individuals’’ 

3 and inserting ‘‘use by individuals’’; 

4 (ii) by striking ‘‘United States’’ in5 serting ‘‘States’’; and 

6 (iii) by striking ‘‘secondary’’ and in7 serting ‘‘secondary and post-secondary’’; 

8 and 

9 (C) in paragraph (3)(D) by striking ‘‘oper10 ation’’ each place it appears and inserting ‘‘de11 sign, operation,’’. 

12 (d) RESEARCH, TECHNICAL ASSISTANCE, INFORMA13 TION, TRAINING OF PERSONNEL.—The Administrator 

14 may establish training programs and make grants under 

15 section 1442(c) of the Safe Drinking Water Act (42 

16 U.S.C. 300j–1(c)) using funds appropriated out of the 

17 Water Protection and Reinvestment Trust Fund that are 

18 allocated for that purpose under section 102. 

19 SEC. 405. SEWER OVERFLOW CONTROL GRANTS. 

20 (a) IN GENERAL.—The Administrator may make 

21 grants under section 221 of the Federal Water Pollution 

22 Control Act (33 U.S.C. 1301) using funds appropriated 

23 out of the Water Protection and Reinvestment Trust Fund 

24 that are allocated for that purpose under section 102. 

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1 (b) PRIORITIZATION.—Section 221(b) of the Federal 

2 Water Pollution Control Act (33 U.S.C. 1301(b)) is 

3 amended— 

4 (1) by striking ‘‘or’’ at the end of paragraph 

5 (3); 

6 (2) by striking the period at the end of para7 graph (4) and inserting ‘‘; or’’; and 

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

9 ‘‘(5) is applying for a grant for a project that 

10 involves the use of— 

11 ‘‘(A) nonstructural, low-impact develop12 ment; 

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

14 reuse; or 

15 ‘‘(C) other decentralized stormwater or 

16 wastewater approaches to minimize flows into 

17 sewer systems.’’. 

18 (c) CONFORMING AMENDMENTS.—Section 221(a) of 

19 such Act (33 U.S.C. 1301(a)) is amended— 

20 (1) by striking ‘‘In any’’ and all that follows 

21 through ‘‘(1) the’’ and inserting ‘‘The’’; 

22 (2) by striking ‘‘overflows’’ and all that follows 

23 through ‘‘(2) subject to’’ and inserting ‘‘overflows. 

24 Subject to’’; and 

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1 (3) by striking ‘‘paragraph (1)’’ and inserting 

2 ‘‘the preceding sentence’’. 

3 SEC. 406. RESEARCH, DEVELOPMENT, AND TECHNOLOGY 

4 DEMONSTRATION PROGRAM. 

5 (a) IN GENERAL.—Not later than one year after the 

6 date of enactment of this Act, the Administrator shall es7 tablish a national water infrastructure research, develop8 ment, and demonstration program to develop, dem9 onstrate, and transfer innovative or improved technologies 

10 and methods for the treatment, control, transport, and 

11 reuse of drinking water and wastewater. These tech12 nologies and methods may include— 

13 (1) reducing energy consumption in water and 

14 wastewater infrastructure; 

15 (2) recovering energy and nutrient resources 

16 from wastewater; 

17 (3) reducing water consumption and returning 

18 water for ecosystem use; 

19 (4) on-site technologies to generate renewable 

20 energy at a publicly owned treatment works, commu21 nity water system, or other municipal water or 

22 wastewater facility; 

23 (5) measures to control, manage, reduce, treat, 

24 infiltrate, or reuse municipal stormwater; 

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1 (6) decentralized or distributed stormwater and 

2 wastewater controls and treatment; 

3 (7) low impact development technologies and 

4 non-structural approaches to treat drinking water, 

5 wastewater, and stormwater; 

6 (8) reducing the costs of compliance with the 

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

8 1251 et seq.) and the Safe Drinking Water Act (42 

9 U.S.C. 300f et seq.), while retaining or enhancing 

10 environmental benefits; 

11 (9) improving control and treatment of 

12 stormwater and nonpoint sources of pollution; 

13 (10) mitigating and adapting to climate change; 

14 (11) dual systems that re-use stormwater and 

15 wastewater for non-potable water resource needs; 

16 (12) development of a new generation of water 

17 monitoring reporting and notification techniques; 

18 and 

19 (13) controlling, limiting, treating, or pre20 venting pharmaceutical and personal care products 

21 from being in or entering waters of the United 

22 States. 

23 (b) CONSULTATION.—In administering the program 

24 under this section, the Administrator shall annually hold 

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1 a national meeting to bring together major stakeholders, 

2 including representatives from the following: 

3 (1) The public. 

4 (2) States, local governments, and organizations 

5 representing States or local governments. 

6 (3) The National Science Foundation, the Na7 tional Academy of Science, the National Academy of 

8 Engineering, the Army Corps of Engineers, the Na9 tional Oceanic and Atmospheric Administration, the 

10 Department of Agriculture, the United States Geo11 logical Survey, the White House Office of Science 

12 and Technology Policy, the Department of Energy, 

13 and the Council on Environmental Quality. 

14 (4) Universities, colleges, and other institutions 

15 of higher education. 

16 (5) Other public nonprofit entities with exper17 tise in research and development of technologies for 

18 the treatment, control, transport, and re-use of 

19 drinking water, stormwater, and wastewater. 

20 (c) COOPERATIVE AGREEMENTS OR GRANTS.—In 

21 carrying out the program under this section, the Adminis22 trator may enter into cooperative agreements or make 

23 grants or, both, to develop improved technologies and 

24 methods under subsection (a) with or to nonprofit and 

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1 search and development of the treatment, control, trans2 port, and re-use of drinking water, stormwater, and waste3 water, including the following entities: 

4 (1) The Water Environment Research Founda5 tion. 

6 (2) The Water Research Foundation. 

7 (3) Public nonprofit entities, including those 

8 whose members or subscribers include drinking 

9 water, stormwater, and wastewater utilities and local 

10 governments. 

11 (4) Universities, colleges, and other institutions 

12 of higher education. 

13 (5) Local governments, including publicly 

14 owned treatment works and community water sys15 tems. 

16 (6) The National Science Foundation. 

17 (7) The National Institutes for Water Re18 sources. 

19 (d) DEMONSTRATION PROJECTS.—The Adminis20 trator is authorized to enter into cooperative agreements 

21 with entities described in subsection (c) and for-profit en22 tities to demonstrate the viability and effectiveness of a 

23 new technology for the treatment, control, transport, and 

24 re-use of drinking water, stormwater, or wastewater. 

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1 (e) SELECTION.—In entering into cooperative agree2 ments and making grants under subsection (c), the Ad3 ministrator shall give priority to cooperative agreements 

4 and grants that— 

5 (1) create multiple environmental, social, and 

6 economic benefits for communities; and 

7 (2) consider— 

8 (A) a variety of water resource opportuni9 ties and needs; 

10 (B) unique and diverse geology and geog11 raphy; 

12 (C) the ability to provide the greatest tech13 nological diversity using limited financial re14 sources; and 

15 (D) the commitment of each community or 

16 regional area to find and fund appropriate al17 ternative technologies to resolve their water in18 frastructure needs. 

19 (f) FEDERAL SHARE.—The Federal share of the 

20 costs for which a grant is made under this section shall 

21 be 65 percent; except that the Administrator may increase 

22 such Federal share based on the purpose for which the 

23 grant is made and the type of grant recipient. 

24 (g) FUNDING.—The Administrator shall carry out 

25 this section using funds appropriated out of the Water 

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1 Protection and Reinvestment Trust Fund that are allo2 cated for that purpose under section 102. 

3 (h) REPORT TO CONGRESS.—The Administrator 

4 shall prepare and submit a biennial report to Congress on 

5 the results of technology research, development, and full6 scale demonstrations performed under this section and 

7 recommendations for encouraging the use of such tech8 nologies by drinking water, stormwater, and wastewater 

9 utilities. 

10 SEC. 407. REGIONAL WATER RESEARCH CENTERS. 

11 (a) REGIONAL CENTERS.— 

12 (1) GRANTS.—The Administrator, in collabora13 tion with the Director of the National Science Foun14 dation, shall make grants to nonprofit institutions of 

15 higher learning to establish and operate one univer16 sity water research center in each of such 21 hydro17 regions as the Administrator, in consultation with 

18 the United States Geological Survey, may establish. 

19 The Administrator, in consultation with the United 

20 States Geological Survey, may adjust the boundaries 

21 of such regions to assure that none of the 

22 conterminous regions are either larger or smaller 

23 than another by more than two fold. 

24 (2) DESIGNATION OF NATIONAL WATER RE25 SEARCH CENTER.—The Administrator, in collaboramstockstill on DSKH9S0YB1PROD with BILLS

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1 tion with the Director, shall designate one of the 21 

2 university water research centers as the ‘‘National 

3 Water Research Center’’. 

4 (3) MISSION.— 

5 (A) IN GENERAL.—The mission of the cen6 ters shall be to conduct and coordinate strategic 

7 research, education, and outreach for sustain8 able management of water resources in every 

9 hydro-climatic region of the United States. 

10 (B) NATIONAL WATER RESEARCH CEN11 TER.—In addition to its mission under subpara12 graph (A), the mission of the National Water 

13 Research Center shall be to gather, archive, and 

14 publish data from the regional centers and to 

15 integrate the regional findings into a national 

16 research strategy. 

17 (4) DEFINITION.—For purposes of this section, 

18 the term ‘‘nonprofit institution of higher learning’’ 

19 includes a consortium of nonprofit institutions of 

20 higher learning. 

21 (b) SELECTION OF GRANT RECIPIENTS.— 

22 (1) APPLICATIONS.—In order to be eligible to 

23 receive a grant under this section, a nonprofit insti24 tution of higher learning shall submit to the Admin25 istrator an application that is in such form and conmstockstill on DSKH9S0YB1PROD with BILLS

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1 tains such information as the Administrator may re2 quire. 

3 (2) SELECTION CRITERIA.—Except as otherwise 

4 provided by this section, the Administrator, in col5 laboration with the Director, shall select each recipi6 ent of a grant under this section through a competi7 tive process on the basis of the following: 

8 (A) The location of the center within the 

9 region to be served. 

10 (B) The demonstrated research and exten11 sion resources available to the recipient to carry 

12 out the objectives of this section. 

13 (C) The capability of the recipient to pro14 vide leadership in making national and regional 

15 contributions to the solution of immediate and 

16 long-range water supply, water infrastructure, 

17 and water quality problems. 

18 (D) The recipient’s establishment of a 

19 water program encompassing several areas of 

20 water research. 

21 (E) The recipient’s demonstrated commit22 ment of at least $400,000 each year in regu23 larly budgeted institutional amounts to support 

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1 grams through a statewide or region-wide con2 tinuing education program. 

3 (F) The recipient’s demonstrated ability to 

4 disseminate results of water research and edu5 cation programs through a statewide or region6 wide continuing education program, 

7 (G) The strategic plan the recipient pro8 poses to implement in order to carry out the 

9 purposes for which the grant will be made. 

10 (H) The recipient’s demonstration that it 

11 has a well-established, nationally recognized 

12 program in water research and education, as 

13 evidenced by— 

14 (i) not less than 10 graduate degrees 

15 awarded in professional fields closely re16 lated to water each year for each of the 5 

17 calendar years preceding the date of the 

18 submission of the application for the grant; 

19 and 

20 (ii) not less than 10 tenured or ten21 ure-track faculty members who specialize 

22 on a full-time basis in professional fields 

23 closely related to water who, as a group, 

24 have published a total or at least 50 jourmstockstill on DSKH9S0YB1PROD with BILLS

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1 nal publications on water research during 

2 the preceding 5 calendar years. 

3 (c) OBJECTIVES.—Except for a grant for the estab4 lishment and operation of the National Water Research 

5 Center, a grant made under this section may only be used 

6 to establish and operate a university water research center 

7 in accordance with this section, including the conduct of 

8 the following activities and programs: 

9 (1) RESEARCH.—Basic and applied research, 

10 the products of which are judged by peers or other 

11 experts in the field of water to advanced the body 

12 of knowledge in water availability and use, water 

13 quality, water infrastructure sustainability, and 

14 water institutions. 

15 (2) EDUCATION.—An education program relat16 ing to water that includes multidisciplinary course 

17 work and participation in research. 

18 (3) TECHNOLOGY TRANSFER.—An ongoing pro19 gram of technology transfer that makes water re20 search results available to potential users, including 

21 policymakers, in a form that can be implemented, 

22 utilized, or otherwise applied. 

23 (d) CONTINUING GRANTS.— 

24 (1) PERIOD OF GRANTS.—After selecting a non25 profit institution of higher learning as a grant remstockstill on DSKH9S0YB1PROD with BILLS

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1 cipient on the basis of a competition conducted 

2 under this section, the Administrator, in collabora3 tion with the Director, shall make a grant to the se4 lected grant recipient to establish and operate a re5 gional university water center under this section in 

6 each of the first 5 fiscal years beginning after the 

7 date of the competition. 

8 (2) GRANT AGREEMENT.—In order to be eligi9 ble to receive a grant under this section, a recipient 

10 shall enter into an agreement with the Administrator 

11 to ensure that the recipient will maintain total ex12 penditures from all other sources to establish and 

13 operate a university water research center (including 

14 the conduct of activities and programs the center is 

15 authorized to carry out under subsection (c) and 

16 subsections (a)(3)(B) and (f) in the case of the Na17 tional Water Research Center) at least equal to the 

18 average level of such expenditures in its 2 fiscal 

19 years before the award of the grant under this sec20 tion. 

21 (3) COMPETITION DEADLINE.—Not later than 

22 the last day of the one-year period following the date 

23 of enactment of this Act and March 31st of each 5th 

24 year thereafter, the Administrator, in collaboration 

25 with the Director, shall complete a competition 

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1 among nonprofit institutions of higher learning for 

2 grants to establish and operate the 21 regional uni3 versity water centers referred to in subsection (a). 

4 (4) AMOUNT OF GRANTS.—The Administrator 

5 shall make a grant to a nonprofit institution of high6 er learning selected under this section to be a grant 

7 recipient for the establishment and operation of a re8 gional university water center (including the conduct 

9 of activities and programs described in subsection 

10 (c)) of at least $2,000,000 for each fiscal year but 

11 no more than $4,000,000; except that a grant for 

12 establishment and operation of the National Water 

13 Research Center (including the conduct of the activi14 ties described in subsections (a)(3)(B), (c), and (f)) 

15 shall be at least $6,000,000 for each fiscal year but 

16 no more than $12,000,000. 

17 (e) FEDERAL SHARE.—The Federal share of the 

18 costs of establishment and operation of a center under this 

19 section (including the conduct of the activities and pro20 grams the center is authorized to carry out under sub21 section (c) and subsections (a)(3)(B) and (f) in the case 

22 of the Nation Water Research Center) through a grant 

23 made under this section shall be 50 percent in the case 

24 of a regional university water center and 85 percent in 

25 the case of the National Water Research Center. 

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1 (f) PROGRAM COORDINATION.— 

2 (1) COORDINATION.—The Administrator, work3 ing through the National Water Research Center, 

4 shall— 

5 (A) support a network of university water 

6 centers to coordinate and facilitate information 

7 technology development and implementation 

8 across the centers; 

9 (B) coordinate research, education, train10 ing, and technology transfer activities that 

11 grant recipients are authorized to carry out 

12 under this section; 

13 (C) synthesize research conducted under 

14 this section; 

15 (D) disseminate the results of the research; 

16 and 

17 (E) establish and operate a clearinghouse 

18 to disseminate the results of the research. 

19 (2) ANNUAL REVIEW AND EVALUATION.—At 

20 least annually, the Administrator shall review and 

21 evaluate the activities and programs that grant re22 cipients carry out through the use of grants made to 

23 such recipients under this section. 

24 (3) FUNDING LIMITATION.—The Administrator 

25 may not use more than one percent of the amounts 

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1 made available to carry out this section for a fiscal 

2 year to carry out management and oversight of the 

3 centers established through grants made under this 

4 section. 

5 (g) FUNDING.—The Administrator shall carry out 

6 this section using funds appropriated out of the Water 

7 Protection and Reinvestment Trust Fund that are allo8 cated for that purpose under section 102. 

9 (h) LIMITATION ON AVAILABILITY OF FUNDS.— 

10 Funds made available to carry out this section shall re11 main available for obligation by the Administrator for a 

12 period of 2 years after the last day of the fiscal year for 

13 which the funds are authorized. 

14 SEC. 408. 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 an arrangement with the Academy under which the 

18 Academy shall complete and provide to the Administrator 

19 the results of a study of the means by which public water 

20 systems and treatment works selected by the Academy in 

21 accordance with subsection (c) meet the costs associated 

22 with operations, maintenance, capital replacement, and 

23 regulatory requirements. In addition, the study shall be 

24 conducted for the purposes set forth in subsection (b). 

25 (b) REQUIRED ELEMENTS.— 

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1 (1) AFFORDABILITY.—The purposes of the 

2 study shall be, at a minimum, to— 

3 (A) determine whether the rates at public 

4 water systems and treatment works for commu5 nities included in the study are using a full-cost 

6 pricing model; 

7 (B) identify, if a full-cost pricing model is 

8 not being used, any incentive rate systems that 

9 have been successful in significantly reducing— 

10 (i) per capita water demand; 

11 (ii) the volume of wastewater flows; 

12 (iii) the volume of stormwater runoff; 

13 or 

14 (iv) the quantity of pollution gen15 erated by stormwater; 

16 (C) identify a set of best industry practices 

17 that public water systems and treatment works 

18 may use in establishing a rate structure that— 

19 (i) adequately addresses the true cost 

20 of services provided to consumers by public 

21 water systems and treatment works, in22 cluding infrastructure replacement; 

23 (ii) encourages water conservation; 

24 and 

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1 (iii) takes into consideration the needs 

2 of disadvantaged individuals and commu3 nities, as identified by the Administrator; 

4 (D) identify existing standards for afford5 ability and the manner in which those stand6 ards are determined and defined; 

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

9 different sizes and in different regions; and 

10 (F) 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.—In addi17 tion, the purposes of the study shall be, at a min18 imum, to— 

19 (A) survey a cross-section of States rep20 resenting different sizes, demographics, and 

21 geographical regions; 

22 (B) describe, for each State surveyed 

23 under subparagraph (A), the definition of ‘‘dis24 advantaged community’’ used in the State in 

25 carrying out projects and activities under the 

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1 Safe Drinking Water Act (42 U.S.C. 300f et 

2 seq.); 

3 (C) review other means of identifying the 

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

5 term applies to communities; 

6 (D) determine which factors and character7 istics are required for a community to be con8 sidered ‘‘disadvantaged’’; and 

9 (E) evaluate the degree to which factors 

10 such as a reduction in the tax base over a pe11 riod of time, a reduction in population, the loss 

12 of an industrial base, and the existence of areas 

13 of concentrated poverty are taken into account 

14 in determining whether a community is a dis15 advantaged community. 

16 (c) SELECTION OF COMMUNITIES.—The Academy 

17 shall select the public water systems and treatment works 

18 for the study under subsection (a) from a cross-section 

19 of communities representing various populations, income 

20 levels, demographics, and geographical regions. 

21 (d) FUNDING.—The Administrator shall carry out 

22 this section using funds appropriated out of the Water 

23 Protection and Reinvestment Trust Fund that are allo24 cated for that purpose under section 102. 

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1 SEC. 409. DRUG TAKE-BACK GRANTS. 

2 (a) GRANT PROGRAM.— 

3 (1) IN GENERAL.—Not later than one year 

4 after the date of enactment of this Act, the Adminis5 trator shall establish a competitive grant program to 

6 make grants to local and State organizations, tribes, 

7 nonprofit entities, and other government entities— 

8 (A) to take back prescription and over-the9 counter drugs from the public; and 

10 (B) to dispose of the drugs in an environ11 mentally sound manner. 

12 (2) REQUIREMENTS.—In order to be eligible to 

13 receive a grant under this subsection, each applicant 

14 for such a grant shall demonstrate to the satisfac15 tion of the Administrator that, in undertaking the 

16 activities described in paragraph (1) under the 

17 grant, the applicant will— 

18 (A) protect public safety by ensuring that 

19 the drugs will be properly disposed of; 

20 (B) incorporate environmentally sound 

21 practices for disposing of controlled substances 

22 (by means other than disposal into a public or 

23 private wastewater treatment system or a mu24 nicipal solid waste landfill); 

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1 (C) follow the existing requirements of the 

2 Controlled Substances Act (21 U.S.C. 801 et 

3 seq.); and 

4 (D) meet such additional requirements as 

5 the Administrator may establish. 

6 (3) COLLECTION OF DIFFERENT TYPES OF

7 DRUGS.— 

8 (A) IN GENERAL.—A take-back program 

9 does not need to collect and dispose of both pre10 scription and over-the-counter drugs to be eligi11 ble for grant funding under this subsection. 

12 (B) PREFERENCE.—Notwithstanding sub13 paragraph (A), the Administrator, in awarding 

14 grants under this subsection, may give pref15 erence to applicants proposing to collect and 

16 dispose of both prescription and over-the17 counter drugs. 

18 (4) NO FUNDING RESTRICTION.—Entities re19 ceiving funds under this subsection may continue to 

20 receive funding from other public and private 

21 sources. 

22 (5) DEFINITIONS.—In this subsection: 

23 (A) The term ‘‘drug’’— 

24 (i) has the meaning given to such 

25 term in section 201 of the Federal Food, 

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1 Drug, and Cosmetic Act (21 U.S.C. 321); 

2 and 

3 (ii) includes a biological product, as 

4 defined in section 351 of the Public Health 

5 Service Act (42 U.S.C. 262). 

6 (B) The term ‘‘over-the-counter’’, with re7 spect to a drug, means not subject to section 

8 503(b)(1) of the Federal Food, Drug, and Cos9 metic Act (21 U.S.C. 353(b)(1)). 

10 (C) The term ‘‘prescription’’, with respect 

11 to a drug, means subject to section 503(b)(1) of 

12 the Federal Food, Drug, and Cosmetic Act (21 

13 U.S.C. 353(b)(1)). 

14 (6) FUNDING.—The Administrator shall carry 

15 out this subsection using funds appropriated out of 

16 the Water Protection and Reinvestment Trust Fund 

17 that are allocated for that purpose under section 

18 102. 

19 (b) LABELING OF DRUGS AND BIOLOGICAL PROD20 UCTS.— 

21 (1) PROHIBITION ON LABELING RECOMMENDA22 TIONS TO DISPOSE OF DRUGS AND BIOLOGICAL

23 PRODUCTS BY FLUSHING.—Section 505 of the Fed24 eral Food, Drug, and Cosmetic Act (21 U.S.C. 355) 

25 is amended by adding at the end the following: 

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1 ‘‘(w) NO LABELING RECOMMENDATIONS TO DIS2 POSE BY FLUSHING.—In approving an application for a 

3 drug under this section, the Secretary of Health and 

4 Human Services shall ensure that the labeling for such 

5 drug does not include any recommendation or direction to 

6 dispose of the drug by means of a public or private waste7 water treatment system, such as by flushing down the toi8 let.’’. 

9 (2) BIOLOGICAL PRODUCTS.—Section 351 of 

10 the Public Health Service Act (42 U.S.C. 262) is 

11 amended by adding at the end the following: 

12 ‘‘(k) NO LABELING RECOMMENDATIONS TO DISPOSE

13 BY FLUSHING.—In licensing any biological product under 

14 this section, the Secretary shall ensure that the labeling 

15 for such product does not include any recommendation or 

16 direction to dispose of the product by means of a public 

17 or private wastewater treatment system, such as by flush18 ing down the toilet.’’ 

19 (3) DRUGS AND BIOLOGICAL PRODUCTS AL20 READY MARKETED.— 

21 (A) LABELING REVISION.—With respect to 

22 drugs and biological products that are legally 

23 marketed under the Federal Food, Drug, and 

24 Cosmetic Act (21 U.S.C. 321 et seq.) or part 

25 F of title III of the Public Health Service Act 

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1 (42 U.S.C. 262 et seq.) as of the date of enact2 ment of this Act, the Secretary of Health and 

3 Human Services, acting through the Commis4 sioner of Food and Drugs— 

5 (i) shall conduct a review of the label6 ing of such drugs and biological products; 

7 and 

8 (ii) for any such labeling that includes 

9 a recommendation or direction to dispose 

10 of the drug or biological product by means 

11 of a public or private wastewater treatment 

12 system, such as by flushing down the toi13 let, shall order the labeling to be revised to 

14 exclude such recommendation or direction. 

15 (B) PENALTY.—Any drug or biological 

16 product whose labeling is in violation of an 

17 order issued under subparagraph (A)(ii) is 

18 deemed to be misbranded under section 502 of 

19 the Federal Food, Drug, and Cosmetic Act (21 

20 U.S.C. 352). 

21 (C) EFFECTIVE DATE.—An order issued 

22 under subparagraph (A)(ii) shall take effect not 

23 later than one year after the date of enactment 

24 of this Act. 

25 (D) DEFINITIONS.—In this subsection: 

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1 (i) BIOLOGICAL PRODUCT.—The term 

2 ‘‘biological product’’ has the meaning given 

3 to such term in section 351 of the Public 

4 Health Service Act (42 U.S.C. 262). 

5 (ii) DRUG AND LABELING.—The 

6 terms ‘‘drug’’ and ‘‘labeling’’ have the 

7 meanings given to such terms in section 

8 201 of the Federal Food, Drug, and Cos9 metic Act (21 U.S.C. 321). 

10 SEC. 410. STATE REVOLVING FUND REVIEW PROCESS. 

11 As soon as practicable after the date of enactment 

12 of this Act, the Administrator shall— 

13 (1) consult with States, utilities, nonprofit orga14 nizations, and other Federal agencies providing fi15 nancial assistance to identify ways to expedite and 

16 improve the application and review process for the 

17 provision of assistance from— 

18 (A) the State water pollution control re19 volving funds established under title VI of the 

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

21 1381 et seq.); and 

22 (B) the State drinking water treatment re23 volving loan funds established under section 

24 1452 of the Safe Drinking Water Act (42 

25 U.S.C. 300j–12); 

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1 (2) consider the needs of treatment works and 

2 public water systems in carrying out such Acts and 

3 this Act; 

4 (3) take such administrative action as is nec5 essary to expedite and improve the process as the 

6 Administrator has authority to take under existing 

7 law; 

8 (4) collect information relating to innovative ap9 proaches taken by any State to simplify the applica10 tion process of the State and provide the information 

11 to each State; and 

12 (5) submit to Congress a report that, based on 

13 the information identified under paragraph (1), con14 tains recommendations for legislation to facilitate 

15 further streamlining and improvement of the process 

16 described in paragraph (1). 

Æ 

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