I

103D CONGRESS

1ST SESSION H. R. 1701

To amend title XVI of the Public Health Service Act (the Safe Drinking

Water Act) to establish State revolving funds to provide for drinking

water treatment facilities, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 5, 1993

Mr. WAXMAN (for himself and Mr. DINGELL) introduced the following bill;

which was referred to the Committee on Energy and Commerce

A BILL

To amend title XVI of the Public Health Service Act (the

Safe Drinking Water Act) to establish State revolving

funds to provide for drinking water treatment facilities,

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. STATE REVOLVING FUNDS FOR SAFE DRINKING

4 WATER

5 Section 1443 of title XIV of the Public Health Serv6 ice Act (the Safe Drinking Water Act) is amended by re7 designating subsection (c) as (d) and by adding the follow8 ing new subsection after subsection (b):
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1 ‘‘(c) STATE REVOLVING FUNDS.—

2 ‘‘(1) GENERAL AUTHORITY.—(A) The Adminis3 trator shall enter into agreements with States having

4 primary enforcement responsibility for public water

5 systems to make capitalization grants to the States

6 under this subsection, further the health protection

7 objectives of this Act. The grants shall be allotted to

8 the States in accordance with this section and depos9 ited in drinking water treatment revolving funds

10 established by the State.

11 ‘‘(B) Amounts deposited in such revolving

12 funds, including loan repayments and interest

13 earned on such amounts, shall be used only for pro14 viding loans or other financial assistance of any kind

15 or nature that the State deems appropriate to public

16 water systems operated by a governmental or inter17 governmental agency, a non-profit organization, an

18 Indian tribe, or any combination thereof. Such fi19 nancial assistance may be used only for capital ex20 penditures incurred by any such system of a type or

21 category which the Administrator has determined

22 will facilitate compliance with national primary

23 drinking water regulations applicable to such system

24 under section 1411.
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1 ‘‘(C) Each such revolving fund shall be estab2 lished, maintained, and credited with repayments

3 and interest. The fund balance shall be available in

4 perpetuity for providing financial assistance under

5 this section. Only interest collected in such fund

6 shall be used by the States for grants to such sys7 tems for such expenditures. To the extent amounts

8 in each such fund are not required for current obli9 gation or expenditure such amounts shall be invested

10 in interest bearing obligations of the State or of the

11 United States.

12 ‘‘(2) SPECIFIC REQUIREMENTS.—The Adminis13 trator shall enter into an agreement under this sec14 tion with a State only after the State has established

15 to the satisfaction of the Administrator that—

16 ‘‘(A) the State will deposit all capitaliza17 tion grants received from the Administrator

18 under this subsection, together with all repay19 ments and interest on such grants, in a drink20 ing water treatment revolving fund established

21 by the State in accordance with this subsection;

22 ‘‘(B) the State will deposit in the fund

23 from State moneys an amount equal to at least

24 20 percent of the total amount of all such cap25 italization grants on or before the date on
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1 which each grant payment is made to the State;

2 and

3 ‘‘(C) no loan or other financial assistance

4 will be provided to a public water system from

5 such revolving fund for any capital expenditures

6 if the Administrator has determined, pursuant

7 to appropriate criteria, that such expenses could

8 be avoided or significantly reduced by consolida9 tion of that public water system with any other

10 public water system, except that in such cases

11 such assistance may be provided from the fund

12 for such consolidation.

13 Notwithstanding subparagraph (A), the State may

14 combine capitalization grants under this subsection

15 with another revolving fund established by the State

16 if the Administrator determines that the grants

17 under this subsection, together with loan repayments

18 and interest, will be used solely for the purposes

19 specified in paragraph (1).

20 ‘‘(3) FUND ADMINISTRATION.—(A) Each State

21 may use up to 5 percent of the monies in a revolving

22 fund established under this subsection to cover the

23 reasonable costs of administration of the assistance

24 program under this subsection.
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1 ‘‘(B) The Administrator shall promulgate such

2 regulations as may be necessary to carry out the

3 provisions of this section, including provisions to en4 sure that each State commits and expends funds

5 from revolving funds established under this sub6 section in accordance with this Act and applicable

7 Federal and State laws and that the State uses ac8 counting, audit, and fiscal procedures that conform

9 to generally accepted accounting standards.

10 ‘‘(C) Each State administering a revolving fund

11 and assistance program under this subsection shall

12 publish and submit to the Administrator a report

13 every 2 years on its activities under this subsection,

14 including the findings of the most recent audit of

15 the fund. The Administrator shall periodically audit

16 all revolving funds established under this subsection

17 in accordance with procedures established by the

18 Comptroller General.

19 ‘‘(4) There is authorized to be appropriated to

20 carry out the purposes of this subsection

21 $599,000,000 for the fiscal year 1994 and

22 $1,000,000 for each of the fiscal years 1995, 1996,

23 and 1997, and such sums as may be necessary

24 thereafter.’’.

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