Union Calendar No. 60

103D CONGRESS

1ST SESSION H. R. 1865

[Report No. 103–115]

A BILL

To direct the Administrator of the Environmental

tems, and for other purposes.bilitation, and improvement of water supply systhe purpose of financing the construction, rehaProtection Agency to make grants to States for

MAY 27, 1993

Reported with an amendment, committed to the Commitordered to be printed tee of the Whole House on the State of the Union, and
1B

103D CONGRESS

1ST SESSION H. R. 1865

[Report No. 103–115]

To direct the Administrator of the Environmental Protection Agency to make

grants to States for the purpose of financing the construction, rehabilitation, and improvement of water supply systems, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 27, 1993

Mr. MINETA (for himself, Mr. SHUSTER, Mr. APPLEGATE, and Mr. BOEHLERT) introduced the following bill; which was referred to the Committee

on Public Works and Transportation

MAY 27, 1993

Additional sponsor: Mr. FALEOMAVAEGA

MAY 27, 1993

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union, and ordered to be printed

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

[For text of introduced bill, see copy of bill as introduced on April 27, 1993]

A BILL

To direct the Administrator of the Environmental Protection

Agency to make grants to States for the purpose of

financing the construction, rehabilitation, and improvement of water supply systems, 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,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Water Supply Construc3 tion Assistance Act of 1993’’.

4 SEC. 2. PURPOSES.

5 The purposes of this Act are as follows:

6 (1) To provide grants for establishment of State

7 revolving funds for the purpose of providing financial

8 and technical assistance for the construction, rehabili9 tation, and improvement of water supply systems, in10 cluding treatment to remove pollutants from navi11 gable waters for the purpose of making such waters

12 useable by water supply systems.

13 (2) To provide for administrative efficiencies

14 through implementation of this Act relying on exist15 ing mechanisms of State water pollution control re16 volving loan fund programs established pursuant to

17 title VI of the Federal Water Pollution Control Act.

18 SEC. 3. LIMITATION ON STATUTORY CONSTRUCTION.

19 Nothing in this Act shall be construed as affecting the

20 requirements of title XIV of the Public Health Service Act

21 (42 U.S.C. 300f–300j–9), commonly referred to as the Safe

22 Drinking Water Act.

23 SEC. 4. GRANTS TO STATES.

24 Subject to the provisions of this Act, the Administrator

25 shall make grants to each State for the purpose of establish26 ing a water supply construction account in the State water
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1 pollution control revolving loan fund programs established

2 pursuant to title VI of the Federal Water Pollution Control

3 Act, if any, to provide assistance for the construction, reha4 bilitation, and improvement of water supply systems.

5 SEC. 5. GRANT AGREEMENTS.

6 (a) GENERAL RULE.—To receive a grant with funds

7 made available under this Act, a State shall enter into an

8 agreement with the Administrator which shall include, but

9 not be limited to, the specifications set forth in subsection

10 (b) of this section.

11 (b) SPECIFIC REQUIREMENTS.—The Administrator

12 shall enter into an agreement under this section with a

13 State only after the State has established to the satisfaction

14 of the Administrator that—

15 (1) the State will accept grant payments with

16 funds to be made available under this Act and will

17 deposit all such payments in the water supply con18 struction account established by the State in accord19 ance with this Act;

20 (2) if the State has a water pollution control re21 volving fund established in accordance with title VI

22 of the Federal Water Pollution Control Act, the State

23 will establish the water supply construction account

24 as a separate account in such fund;
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1 (3) the State will deposit in the water supply

2 construction account from State moneys an amount

3 equal to at least 20 percent of the total amount of all

4 grants which will be made to the State with funds to

5 be made available under this Act on or before the date

6 on which each grant payment will be made to the

7 State under this Act;

8 (4) the State will enter into binding commit9 ments to provide assistance in accordance with the re10 quirements of this Act an amount equal to 120 per11 cent of the amount of each such grant payment with12 in 1 year after the receipt of such grant payment;

13 (5) the State will not make available any assist14 ance from the account unless the State has first deter15 mined that the applicant—

16 (A) has adopted or will adopt a system of

17 charges to assure that each recipient of water

18 supply services within the applicant’s jurisdic19 tion will pay its proportionate share of the cost

20 of operation and maintenance (including re21 placement) of any such services provided by the

22 applicant; and

23 (B) has legal, institutional, managerial,

24 and financial capability to ensure adequate con25 struction, operation, and maintenance of water
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1 supply systems throughout the applicant’s juris2 diction;

3 (6) the State will take such action as may be

4 necessary to ensure that, after construction, rehabili5 tation, and improvement of a water supply system

6 undertaken with funds directly made available by

7 grants under this Act, such system will provide water

8 supply services at the most economical cost;

9 (7) the State will take such action as may be

10 necessary with respect to construction, rehabilitation,

11 and improvement of a water supply system under12 taken with funds directly made available by grants

13 under this Act as the Administrator is required to

14 take under section 513 of the Federal Water Pollution

15 Control Act with respect to treatment works carried

16 out with assistance provided under such Act; and

17 (8) the State will make annual reports to the Ad18 ministrator on the actual use of funds in accordance

19 with section 606(d) of the Federal Water Pollution

20 Control Act.

21 SEC. 6. INCORPORATION OF FWPCA BY REFERENCE.

22 (a) GENERAL RULE.—The provisions of title VI of the

23 Federal Water Pollution Control Act shall apply as pro24 vided in this Act to accounts established by States under

25 this Act. For purposes of this Act, any reference to the Fed-
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1 eral Water Pollution Control Act and to any section thereof

2 shall be treated as a reference to such Act or section as in

3 effect on the date of the enactment of this Act.

4 (b) TYPES OF ASSISTANCE.—Section 603(d) of the

5 Federal Water Pollution Control Act shall apply to accounts

6 established by States under this Act to the same extent and

7 in the same manner as such section applies to water pollu8 tion control revolving funds under such Act; except that the

9 percentage of grant awards available for administrative ex10 penses under paragraph (7) of such section shall be 5 per11 cent instead of 4 percent.

12 (c) CORRECTIVE ACTION.—Section 605 of such Act

13 shall apply to a State’s agreement with the Administrator

14 under this Act and to requirements of this Act to the same

15 extent and in the same manner as such section applies to

16 a State’s agreement under section 602 of such Act and the

17 requirements of title VI of such Act.

18 (d) AUDITS, REPORTS, AND FISCAL CONTROLS.—Sub19 sections (a), (b), (d), and (e) of section 606 of such Act shall

20 apply to a State establishing an account under this Act

21 and to such account to the same extent and in the same

22 manner as such subsections apply to a State establishing

23 a water pollution control revolving fund under title VI of

24 such Act and to such fund.
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1 SEC. 7. WATER SUPPLY CONSTRUCTION REVOLVING LOAN

2 FUNDS.

3 (a) REQUIREMENTS FOR OBLIGATION OF GRANT

4 FUNDS.—Before a State may receive a grant with funds

5 made available under this Act, the State shall first establish

6 a water supply construction account which complies with

7 the requirements of this Act.

8 (b) ADMINISTRATOR.—Each State water supply con9 struction account shall be administered by an instrumental10 ity of the State with such powers and limitations as may

11 be required to operate such account in accordance with the

12 requirements and objectives of this Act.

13 (c) PROJECTS ELIGIBLE FOR ASSISTANCE.—The

14 amounts of funds available to each State water supply con15 struction account shall be used only for providing financial

16 assistance for construction, rehabilitation, and improve17 ment of a water supply system. The account shall be estab18 lished, maintained, and credited with repayments, and the

19 account balance shall be available in perpetuity for provid20 ing such financial assistance.

21 (d) TYPES OF ASSISTANCE.—In addition to the types

22 of assistance which may be made available under section

23 603(d) of the Federal Water Pollution Control Act from a

24 water supply construction account of a State under this

25 Act—
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1 (1) such account may be used to provide tech2 nical assistance with respect to construction, rehabili3 tation, and improvement of water supply systems;

4 and

5 (2) the interest derived from funds in such ac6 count or from loans made from such account may be

7 used by the State to make grants to pay up to 50 per8 cent of the cost of construction, rehabilitation, and

9 improvement of a water supply system.

10 SEC. 8. ALLOTMENT OF FUNDS.

11 (a) FISCAL YEAR 1994.—Sums authorized to be ap12 propriated pursuant to this Act for fiscal year 1994 shall

13 be allotted for such year by the Administrator not later than

14 the 10th day which begins after the date of the enactment

15 of this Act. Sums authorized for such fiscal year shall be

16 allotted in accordance with the following table:

States: Percentages:

Alabama .............................................................................................. 0.96

Alaska ................................................................................................. 2.38

Arizona ............................................................................................... 1.40

Arkansas ............................................................................................. 0.99

California ........................................................................................... 6.75

Colorado .............................................................................................. 1.33

Connecticut ......................................................................................... 1.77

Delaware ............................................................................................. 0.50

District of Columbia .......................................................................... 0.50

Florida ................................................................................................ 3.82

Georgia ................................................................................................ 2.13

Hawaii ................................................................................................ 0.50

Idaho ................................................................................................... 0.98

Illinois ................................................................................................ 3.29

Indiana ............................................................................................... 2.04

Iowa .................................................................................................... 1.35

Kansas ................................................................................................ 1.12

Kentucky ............................................................................................. 0.90

Louisiana ............................................................................................ 1.66
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Maine .................................................................................................. 0.99

Maryland ............................................................................................ 1.48

Massachusetts ..................................................................................... 1.11

Michigan ............................................................................................. 5.05

Minnesota ........................................................................................... 3.51

Mississippi .......................................................................................... 1.33

Missouri .............................................................................................. 1.80

Montana .............................................................................................. 1.17

Nebraska ............................................................................................. 1.00

Nevada ................................................................................................ 0.70

New Hampshire ................................................................................. 1.07

New Jersey .......................................................................................... 2.31

New Mexico ......................................................................................... 1.00

New York ............................................................................................ 5.35

North Carolina ................................................................................... 3.94

North Dakota ...................................................................................... 0.53

Ohio ..................................................................................................... 3.71

Oklahoma ............................................................................................ 1.43

Oregon ................................................................................................. 1.52

Pennsylvania ...................................................................................... 4.54

Rhode Island ...................................................................................... 0.50

South Carolina ................................................................................... 1.23

South Dakota ..................................................................................... 0.63

Tennessee ............................................................................................ 1.01

Texas ................................................................................................... 5.95

Utah .................................................................................................... 0.73

Vermont .............................................................................................. 0.58

Virginia .............................................................................................. 2.44

Washington ......................................................................................... 2.64

West Virginia ..................................................................................... 0.96

Wisconsin ............................................................................................ 3.66

Wyoming ............................................................................................. 0.62

American Samoa ............................................................................... 0.09

Guam .................................................................................................. 0.07

Northern Marianas ............................................................................ 0.04

Puerto Rico ......................................................................................... 0.62

Pacific Trust Territories ................................................................... 0.13

Virgin Islands .................................................................................... 0.27.

1 (b) FISCAL YEARS 1995 AND 1996.—Sums authorized

2 to be appropriated pursuant to this Act for each of fiscal

3 years 1995 and 1996 shall be allotted by the Administrator

4 in accordance with the relative needs of the States for con5 struction, rehabilitation, and improvement of water supply

6 systems as determined by the Administrator, in consulta7 tion with the States.
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1 (c) RESERVATION OF FUNDS FOR INDIAN TRIBES.—

2 Notwithstanding subsections (a) and (b) of this section, the

3 Administrator shall reserve for each fiscal year not to exceed

4 1.5 percent of the amount made available to carry out this

5 Act for such fiscal year for the purpose of making grants

6 to Indian tribes for construction, rehabilitation, and im7 provement of water supply systems.

8 (d) ALLOTMENT PERIOD.—

9 (1) PERIOD OF AVAILABILITY FOR GRANT

10 AWARD.—Sums allotted to a State under this section

11 for a fiscal year shall be available for obligation by

12 the State during the fiscal year for which sums are

13 authorized and during the following fiscal year; ex14 cept that for sums allotted in fiscal year 1994, such

15 period of availability shall be fiscal years 1994–1996.

16 (2) REALLOTMENT OF UNOBLIGATED FUNDS.—

17 The amount of any allotment not obligated by the

18 State by the last day of the period of availability es19 tablished by paragraph (1) shall be immediately real20 lotted by the Administrator on the basis of the same

21 ratio as is applicable to sums allotted under this Act

22 for the second fiscal year of such period. None of the

23 funds reallotted by the Administrator shall be reallot24 ted to any State which has not obligated all sums al-
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1 lotted to such State in the first fiscal year of such

2 period.

3 SEC. 9. DETERMINATION OF PRIORITY.

4 Each State establishing a water supply construction

5 account shall determine the priority to be given projects for

6 construction, rehabilitation, and improvement of water sup7 ply systems within the boundaries of the State taking into

8 account the relative financial and other needs for such con9 struction, rehabilitation, and improvement.

10 SEC. 10. NEEDS SURVEY.

11 (a) IN GENERAL.—The Administrator, in cooperation

12 with the States, shall make—

13 (1) a detailed estimate, biennially revised, of the

14 cost of needed construction, rehabilitation, and im15 provement of water supply systems in all of the States

16 and of the cost of needed construction in each of the

17 States; and

18 (2) a comprehensive study of the economic im19 pact on affected units of government of the cost of in20 stallation of water supply systems and parts thereof.

21 (b) SUBMISSION TO CONGRESS.—The Administrator

22 shall submit the detailed estimate and the comprehensive

23 study of costs under subsection (a) to Congress no later than

24 January 1, 1996, and January 1 of each even-numbered

25 year thereafter. The Administrator shall also submit rec-
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1 ommendations for allotment of funds under this Act to the

2 States based on such estimates and on such additional fac3 tors as the Administrator deems appropriate, including fi4 nancial need. Whenever the Administrator, pursuant to this

5 section, requests and receives an estimate of cost from a

6 State, the Administrator shall furnish copies of such esti7 mate together with such detailed estimate to Congress.

8 SEC. 11. BUY AMERICAN.

9 (a) SENSE OF CONGRESS.—It is the sense of Congress

10 that a recipient of assistance under this Act should purchase

11 American-made equipment and products.

12 (b) NOTICE.—The Administrator shall provide to each

13 recipient of assistance under this Act a notice describing

14 the sense of Congress set forth in subsection (a).

15 SEC. 12. DEFINITIONS.

16 In this Act, the following definitions apply:

17 (1) ADMINISTRATOR.—The term ‘‘Adminis18 trator’’ means the Administrator of the Environ19 mental Protection Agency.

20 (2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has

21 the meaning such term has under section 518 of the

22 Federal Water Pollution Control Act and includes

23 Alaska Native Villages and former Indian reserva24 tions in Oklahoma.
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1 (3) STATE.—The term ‘‘State’’ means a State,

2 the District of Columbia, the Commonwealth of Puer3 to Rico, the Virgin Islands, Guam, American Samoa,

4 the Commonwealth of the Northern Mariana Islands,

5 and the Trust Territory of the Pacific Islands.

6 (4) WATER SUPPLY SYSTEM.—The term ‘‘water

7 supply system’’ means a system (owned by a govern8 mental entity, a nonprofit organization, or any other

9 private person regulated by a State public utility

10 commission and having the greatest public need for

11 assistance under this Act) for the provision to the

12 public of piped water for human consumption, if such

13 system has at least 15 service connections or regularly

14 serves at least 25 individuals. Such term includes (A)

15 any collection, treatment, storage, and distribution

16 facilities under control of the operator of such system

17 and used primarily in connection with such system,

18 and (B) any collection or pretreatment facilities not

19 under such control that are used primarily in connec20 tion with such system.

21 SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

22 There are authorized to be appropriated for purposes

23 of this Act the following sums:

24 (1) $599,000,000 for fiscal year 1994;

25 (2) $1,000,000,000 for fiscal year 1995; and
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1 (3) $1,000,000,000 for fiscal year 1996.