I

103D CONGRESS

1ST SESSION H. R. 2255

To amend the Federal Water Pollution Control Act to reauthorize and modify

the State water pollution control revolving loan program, and for other

purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 25, 1993

Mr. MINETA introduced the following bill; which was referred jointly to the

Committees on Public Works and Transportation and Ways and Means

A BILL

To amend the Federal Water Pollution Control Act to reauthorize and modify the State water pollution control revolving loan program, 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.

4 This Act may be cited as the ‘‘Polluter Pays Clean

5 Water Funding Act’’.

6 SEC. 2. FINDINGS.

7 Congress makes the following findings:

8 (1) We are in the midst of a clean water crisis.

9 Across the Nation, water and sewer bills are sky-
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1 rocketing as the costs of municipal sewage treatment

2 plants and other clean water programs soar. These

3 escalating costs have a disproportionate effect on the

4 poor and on families in small and economically de5 pressed communities.

6 (2) There is no relief in sight. The most recent

7 report by the Environmental Protection Agency esti8 mates at least $155,000,000,000 will be needed over

9 the next 20 years just to meet current Federal

10 Water Pollution Control Act requirements.

11 (3) The whole story is even more sobering. If

12 the full costs of Federal Water Pollution Control Act

13 implementation are considered, including combined

14 sewer overflows, storm water control, polluted runoff

15 control, and implementation of national estuary pro16 grams, then the total cost of Federal Water Pollu17 tion Control Act implementation will greatly exceed

18 $200,000,000,000 over the next 20 years.

19 (4) We are not now doing enough. In light of

20 these overwhelming needs, the current Federal in21 vestment of $2,000,000,000 in State assistance is

22 grossly inadequate to meet the Federal Water Pollu23 tion Control Act’s fundamental objective of eliminat24 ing discharges and achieving water quality which
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1 provides for the protection and propagation of fish,

2 shellfish, and wildlife.

3 (5) We need to get serious about clean water.

4 In order to ensure adequate investment in clean

5 water infrastructure, an annual investment of

6 $6,000,000,000 is required.

7 (6) The taxpayer should contribute a fair share.

8 The Federal Government should continue to main9 tain its $2,000,000,000 in annual support.

10 (7) The polluter should bear the biggest bur11 den. In order to support the dual objective of deficit

12 reduction and pollution control and prevention,

13 $4,000,000,000 should be derived from appropriate

14 taxes on activities and products which are known to

15 contribute to water pollution.

16 (8) The mechanism for funding clean water

17 programs should be user friendly. The existing State

18 revolving loan program should remain to be the prin19 cipal means of financing Federal Water Pollution

20 Control Act implementation at the State level, but

21 the program should be amended to broaden project

22 eligibility, provide for grant-type assistance to small

23 and hardship communities, and help ensure provi24 sion of water and sewer services to all Americans at

25 affordable rates.
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1 TITLE I—STATE WATER POLLU2 TION CONTROL REVOLVING

3 FUNDS

4 SEC. 101. REQUIREMENTS FOR TREATMENT WORKS.

5 (a) APPLICABILITY.—Section 602(b)(6) of the Fed6 eral Water Pollution Control Act (33 U.S.C. 1382(b)(6))

7 is amended by striking each of the following:

8 (1) ‘‘201(b), 201(g)(1), 201(g)(2), 201(g)(3),’’;

9 (2) ‘‘201(g)(6), 201(n)(1),’’;

10 (3) ‘‘204(a)(1), 204(a)(2),’’; and

11 (4) ‘‘211,’’.

12 (b) INCREASE IN VALUE ENGINEERING THRESH13 OLD.—Section 218(c) of such Act (33 U.S.C. 1298(c)) is

14 amended by striking ‘‘$10,000,000’’ and inserting

15 ‘‘$25,000,000’’.

16 SEC. 102. PROJECTS ELIGIBLE FOR ASSISTANCE.

17 (a) IN GENERAL.—Section 603(c) of the Federal

18 Water Pollution Control Act (33 U.S.C. 1383(c)) is

19 amended to read as follows:

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

21 ‘‘(1) DESCRIPTIONS.—The amounts of funds

22 available to each State water pollution control re23 volving fund shall be used only for providing finan24 cial assistance to municipal, intermunicipal, inter25 state, and State agencies and to other persons, as
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1 appropriate, to carry out 1 or more of the following

2 projects:

3 ‘‘(A) Construction of publicly owned treat4 ment works (as defined in section 212).

5 ‘‘(B) Implementation of a management

6 program approved under section 319.

7 ‘‘(C) Watershed planning and manage8 ment.

9 ‘‘(D) Public water conservation and reuse.

10 ‘‘(E) Low income water and sewer assur11 ance programs which meet the requirements of

12 section 608.

13 ‘‘(F) Acquisition of lands, easements, and

14 rights-of-way directly related to any other

15 project described in this paragraph.’’.

16 ‘‘(2) AVAILABILITY OF FUND BALANCE.—Each

17 State water pollution control revolving fund shall be

18 established, maintained, and credited with repay19 ments and the fund balance shall be available in per20 petuity for providing financial assistance under this

21 title.’’.

22 (b) CONFORMING AMENDMENTS.—

23 (1) GENERAL AUTHORITY.—Section 601(a) of

24 such Act (33 U.S.C. 1381(a)) is amended by strik25 ing ‘‘for providing assistance’’ and all that follows
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1 before the period and inserting ‘‘for providing assist2 ance for projects described in section 603(c)’’.

3 (2) INTENDED USE PLAN.—Section 606(c)(1)

4 of such Act (33 U.S.C. 1386(c)(1)) is amended by

5 inserting ‘‘and other activities eligible for financial

6 assistance under this title’’ before the semicolon.

7 SEC. 103. MAXIMUM TERM OF LOANS.

8 (a) IN GENERAL.—Section 603(d)(1) of the Federal

9 Water Pollution Control Act (33 U.S.C. 1383(d)(1)) is

10 amended—

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

12 and inserting ‘‘the expected life of the facility or

13 project being financed with the proceeds of the

14 loan’’; and

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

16 than 20 years after project completion’’ and insert17 ing ‘‘upon the expiration of the term of the loan’’.

18 (b) APPLICABILITY.—The amendments made by sub19 section (a) shall not apply to loans made before the date

20 of the enactment of this Act.

21 SEC. 104. ADMINISTRATIVE COSTS.

22 (a) AMOUNT.—Section 603(d)(7) of the Federal

23 Water Pollution Control Act (33 U.S.C. 1383(d)(7)) is

24 amended by striking ‘‘except that’’ and all that follows be25 fore the period and inserting ‘‘except that in a fiscal year
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1 such amount shall not exceed 5 percent of the total

2 amount deposited into such fund in such fiscal year’’.

3 (b) TECHNICAL ASSISTANCE.—Section 603 of such

4 Act (33 U.S.C. 1383) is amended by adding at the end

5 the following new subsection:

6 ‘‘(i) USE OF ADMINISTRATIVE FUNDS FOR PROVIDING TECHNICAL ASSISTANCE.—Not less than 1 7 ⁄5 of any

8 amount used by a State in a fiscal year under subsection

9 (d)(7) for administering its water pollution control revolv10 ing fund shall be allocated for providing technical assist11 ance to communities to identify appropriate technology for

12 water quality protection and mechanisms for financing

13 water quality protection projects.’’.

14 SEC. 105. AUTHORITY TO MAKE GRANTS.

15 (a) IN GENERAL.—Section 603(d) of the Federal

16 Water Pollution Control Act (33 U.S.C. 1383(d)) is

17 amended—

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

19 (6);

20 (2) by striking the period at the end of para21 graph (7) and inserting ‘‘; and’’; and

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

23 ‘‘(8) to make grants in such amounts and sub24 ject to such terms as provided by subsection (j).’’.
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1 (b) LIMITATIONS.—Section 603 of such Act (33

2 U.S.C. 1383) is amended by adding at the end the follow3 ing new subsection:

4 ‘‘(j) GRANT AUTHORITY.—

5 ‘‘(1) TERMS AND CONDITIONS.—The authority

6 of a State under subsection (d)(8) to provide finan7 cial assistance from its water pollution control re8 volving fund in the form of grants shall be subject

9 to the following terms and conditions:

10 ‘‘(A) LIMITATION ON AMOUNT.—In a fiscal

11 year, such financial assistance will not exceed

12 whichever of the following amounts is greater:

13 ‘‘(i) 25 percent of the funds received

14 by the State in capitalization grants under

15 this title in such fiscal year.

16 ‘‘(ii) 100 percent of any increase in

17 the amount of funds received by the State

18 in capitalization grants under this title in

19 such fiscal year from the amount of funds

20 so received in fiscal year 1992.

21 ‘‘(B) ELIGIBLE PROJECTS.—Such financial

22 assistance will be provided only for the follow23 ing types of projects:

24 ‘‘(i) PROJECTS IN SMALL COMMU25 NITIES.—A project described in subsection
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1 (c)(1) to be carried out in a political sub2 division with a population of 5,000 individ3 uals or less.

4 ‘‘(ii) PROJECTS IN HARDSHIP COMMU5 NITIES.—A project described in subsection

6 (c)(1) to be carried out in a political sub7 division for which the State certifies that—

8 ‘‘(I) in the preceding calendar

9 year, the average combined residential

10 water and sewer bill equaled or ex11 ceeded 2 percent of the median family

12 income; or

13 ‘‘(II) in the preceding calendar

14 year, the average residential sewer bill

15 equaled or exceeded 1 percent of the

16 median family income.

17 ‘‘(iii) PROJECTS TO CONTROL

18 NONPOINT POLLUTION.—A project de19 scribed in subparagraph (B) of subsection

20 (c)(1) for control of nonpoint sources of

21 pollution.

22 ‘‘(iv) PROJECTS FOR LOW INCOME

23 WATER AND SEWER ASSURANCE.—A

24 project to establish and implement a low

25 income water and sewer assurance pro-
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1 gram which meets the requirements of sec2 tion 608 and which is to be carried out in

3 a political subdivision described in clause

4 (i) or (ii).

5 ‘‘(2) POLITICAL SUBDIVISION DEFINED.—For

6 the purposes of this subsection, the term ‘political

7 subdivision’ shall include Indian tribes.’’.

8 SEC. 106. CONTROL OF NONPOINT SOURCE POLLUTION.

9 Section 603 of the Federal Water Pollution Control

10 Act (33 U.S.C. 1383) is further amended by adding at

11 the end the following new subsection:

12 ‘‘(k) MINIMUM PERCENTAGE TO BE USED FOR

13 NONPOINT SOURCE CONTROL.—Not less than 15 percent

14 of the amount of each capitalization grant received by a

15 State under this title shall be used by the State for

16 projects to control nonpoint sources of pollution which af17 fect surface water or groundwater. Such projects shall in18 clude projects described in subparagraph (B) of subsection

19 (c)(1).’’.

20 SEC. 107. ALLOTMENT OF FUNDS.

21 FORMULAS.—Section 604(a) of the Federal Water

22 Pollution Control Act (33 U.S.C. 1384(a)) is amended to

23 read as follows:

24 ‘‘(a) FORMULAS.—
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1 ‘‘(1) EXISTING FORMULA.—Except as provided

2 by paragraph (2) and subsection (d), sums appro3 priated to carry out this title in a fiscal year shall

4 be allotted by the Administrator in accordance with

5 section 205(c).

6 ‘‘(2) NEW FORMULA.—

7 ‘‘(A) ESTABLISHMENT.—Not later than 1

8 year after the date of the enactment of this

9 paragraph, and after providing adequate notice

10 and opportunity for public comment, the Ad11 ministrator shall develop and publish a formula

12 for the allocation of amounts appropriated to

13 carry out this title after the date of publication

14 of such formula. Such formula shall be based

15 on State populations (as determined using the

16 most recent population estimates prepared by

17 the Secretary of Commerce) and information

18 contained in the most recent biennial needs sur19 vey conducted by the Administrator. The Ad20 ministrator shall revise such formula at least

21 once every 5 years.

22 ‘‘(B) ALLOTMENT UNDER NEW FOR23 MULA.—Subject to subsection (d), funds appro24 priated to carry out this section for a fiscal year

25 beginning after the date of publication of a for-
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1 mula under subparagraph (A) shall be allotted

2 by the Administrator in accordance with such

3 formula.’’.

4 SEC. 108. LOW INCOME WATER AND SEWER ASSURANCE

5 PROGRAM.

6 (a) ELIGIBILITY REQUIREMENT.—Section 602(b) of

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

8 1382(b)) is amended—

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

10 (9);

11 (2) by striking the period at the end of para12 graph (10) and inserting ‘‘; and’’; and

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

14 ‘‘(11) with respect to any area which has an av15 erage annual combined total of residential household

16 water and sewer bills which is greater than 4 per17 cent of 75 percent of the Federal poverty level for

18 a household of 4 (as determined from the most re19 cent Federal Poverty Guidelines published by the

20 Department of Health and Human Services), the

21 State will require as a condition of providing assist22 ance from the fund for a project to construct a pub23 licly owned treatment works, as described in section

24 603(c)(1)(A), that the recipient of such assistance

25 certify, in writing, that there will be in effect for
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1 such area within 2 years after the date of approval

2 of such assistance a low income water and sewer as3 surance program which meets the requirements of

4 section 608.’’.

5 (b) IN GENERAL.—Title VI of such Act (33 U.S.C.

6 1381–1387) is amended by adding at the end the follow7 ing:

8 ‘‘SEC. 608. LOW INCOME WATER AND SEWER ASSURANCE

9 PROGRAM.

10 ‘‘(a) IN GENERAL.—Not later than 1 year after the

11 date of the enactment of this Act, the Administrator shall

12 issue regulations to establish minimum standards for low

13 income water and sewer assurance programs eligible for

14 assistance under this Act. Such programs shall be de15 signed to best meet the needs and conditions of the area

16 served by the recipient of assistance under this title. Such

17 regulations shall, at a minimum, ensure that—

18 ‘‘(1) water and sewer will be available on an af19 fordable basis to all households being served by the

20 recipient of assistance under this title having a

21 household income at or below 150 percent of the

22 Federal poverty level in the area (as determined

23 from the most recent Federal Poverty Guidelines

24 published by the Department of Health and Human

25 Services);
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1 ‘‘(2) benefits under the program will be made

2 available to tenants of residential units who pay for

3 water and sewer services as part of their rent;

4 ‘‘(3) the presumptive measure of affordable

5 combined water and sewer rates on a monthly basis

6 is that such rates do not exceed 4 percent of the

7 gross monthly income for a household; and

8 ‘‘(4) benefits under the program may be re9 duced by any assistance provided to pay utilities

10 under any other Federal or State program.

11 ‘‘(b) TREATMENT OF BENEFITS.—Notwithstanding

12 any other provision of law, the amount of any low income

13 water and sewer assurance program benefits provided pur14 suant to this Act directly to, or for the benefit of, a house15 hold shall not be treated as income to such household for

16 purposes of any Federal law.’’.

17 (c) EFFECTIVE DATE.—The amendment made by

18 subsection (a) of this section shall take effect on the first

19 day of the first fiscal year which begins after the last day

20 of the 1-year period beginning on the date of the enact21 ment of this Act.

22 SEC. 109. AUTHORIZATION OF APPROPRIATIONS.

23 Section 607 of the Federal Water Pollution Control

24 Act (33 U.S.C. 1387) is amended to read as follows:
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1 ‘‘SEC. 607. FUNDING CLEAN WATER NEEDS.

2 ‘‘(a) FROM THE GENERAL FUND.—There is author3 ized to be appropriated to carry out the purposes of this

4 title $2,000,000,000 per fiscal year for each of fiscal years

5 1994 through 2000.

6 ‘‘(b) FROM THE CLEAN WATER TRUST FUND.—For

7 each fiscal year after fiscal year 1995, $4,000,000,000

8 shall be transferred from the Clean Water Trust Fund,

9 without further appropriation, to carry out the purposes

10 of this title.’’.

11 TITLE II—EXCISE TAXES ON SUB12 STANCES CONTRIBUTING TO

13 WATER POLLUTION, ETC.

14 SEC. 201. EXCISE TAXES ON SUBSTANCES CONTRIBUTING

15 TO WATER POLLUTION.

16 (a) IN GENERAL.—Chapter 38 of the Internal Reve17 nue Code of 1986 (relating to environmental taxes) is

18 amended by adding at the end thereof the following new

19 subchapters:

20 ‘‘Subchapter E—Discharges of Chemical

21 Pollutants

‘‘Sec. 4691. Imposition of tax.

‘‘Sec. 4692. Definitions and special rules.
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1 ‘‘SEC. 4691. IMPOSITION OF TAX.

2 ‘‘(a) GENERAL RULE.—There is hereby imposed a

3 tax on the discharge in the United States (as defined in

4 section 4612(a)(4)) of any taxable chemical pollutant to—

5 ‘‘(1) water, or

6 ‘‘(2) any publicly owned treatment works (as

7 defined in section 212 of the Federal Water Pollu8 tion Control Act).

9 ‘‘(b) RATE OF TAX.—The amount of the tax imposed

10 by subsection (a) on each pound of any taxable chemical

11 pollutant shall be the amount determined in accordance

12 with the following table:

In the case of: The tax per pound is:

Group 1 pollutants ................. 0.6 cents

Group 2 pollutants ................. 24.2 cents

Group 3 pollutants ................. $ 2.26

Group 4 pollutants ................. $28.33

Group 5 pollutants ................. $63.39.

13 ‘‘(c) LIABILITY FOR TAX.—The person discharging

14 any taxable chemical pollutant shall pay the tax imposed

15 by subsection (a) on such pollutant.

16 ‘‘(d) EXCEPTIONS.—The tax imposed by subsection

17 (a) shall not apply to any discharge of any taxable chemi18 cal pollutant used exclusively for—

19 ‘‘(1) any residential use,

20 ‘‘(2) any use on a farm for farming purposes

21 (determined under rules similar to the rules of sec22 tion 6420(c)), or
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1 ‘‘(3) any use by United States, any State or po2 litical subdivision thereof, the District of Columbia,

3 any possession of the United States, or by any agen4 cy or instrumentality of any of the foregoing.

5 ‘‘(e) INFLATION ADJUSTMENT OF RATES.—

6 ‘‘(1) IN GENERAL.—Effective during any cal7 endar year after 1994, each dollar amount contained

8 in subsection (b) shall be increased by an amount

9 equal to—

10 ‘‘(A) such dollar amount, multiplied by

11 ‘‘(B) the inflation adjustment for such cal12 endar year.

13 ‘‘(2) INFLATION ADJUSTMENT.—For purposes

14 of paragraph (1), the inflation adjustment for any

15 calendar year is the sum of—

16 ‘‘(A) 3 percentage points, plus

17 ‘‘(B) the percentage (if any) by which—

18 ‘‘(i) the GDP deflator for the preced19 ing calendar year, exceeds

20 ‘‘(ii) the GDP deflator for 1993.

21 ‘‘(3) GDP DEFLATOR FOR CALENDAR YEAR.—

22 For purposes of paragraph (2), the GDP deflator for

23 any calendar year is the GDP deflator for the sec24 ond calendar quarter of such year.
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1 ‘‘(4) GDP DEFLATOR.—For purposes of para2 graph (3), the term ‘GDP deflator’ means the most

3 recent revision of the implicit price deflator for the

4 gross domestic product as computed and published

5 by the Department of Commerce before November

6 15 of the calendar year referred to in paragraph

7 (2)(B)(i).

8 ‘‘SEC. 4692. DEFINITIONS AND SPECIAL RULES.

9 ‘‘(a) TAXABLE CHEMICAL POLLUTANTS.—

10 ‘‘(1) IN GENERAL.—For purposes of this sub11 chapter, the term ‘taxable chemical pollutant’ means

12 any substance which, at the time of its discharge, is

13 listed in paragraph (2) as being included in any

14 group of pollutants.

15 ‘‘(2) GROUPS OF POLLUTANTS.—For purposes

16 of this paragraph (1), the groups of pollutants are

17 as follows:

Group 1 Pollutants

Oil and grease

BOD-5

TSS

Diethyl phthalate

Dichloropropane, 1,2

Chlorobenzene

Chloroethyl vinyl ether, 2

Dichloroethane, 1,1

Group 2 Pollutants

Vinyl chloride

Ethylbenzene

Dichloroethane, 1,2

Nitrophenol, 2

Dimethyl phthalate

Antimony

Dimethylphenol, 2,4
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Dinitrotoluene, 2,6

Dichlorobenzene, 1,3

Phenol

Toluene

Naphthalene

Dichlorobenzene, 1,8-

Dinitrotoluene, 2,6-

1,1 dichloroethylene

Chlorophenol, 2-

Bis-2 chloroisopropyl ether

Isophorone

Group 3 Pollutants

2,4-D (Acetic acid (2,4 Dichlorophenoxy-acetic acid))

Nitrobenzene

Bis(2-chloro-1-methyl-ethyl)ether

Nitrophenol,4

Trichloroethane, 1,1,2

Vinylidene chloride

Butyl benzyl phthalate

Chloromethane (Methyl chloride)

Dichloromethane

Bromoform (Tribromomethane)

Chloroform

Zinc

Tetrachlorethane, 1,1,2,2

Dinitrotoluene, 2,4

Acetaldehyde

Acetone

Acetonitrile

Acrylamide

Acrylic acid

Allyl Chloride

Aluminum

Ammonia

Ammonium nitrate

Ammonium sulfate

Aniline

Anisidine, o

Barium

Benzoyl chloride

Benzoyl peroxide

Benzyl chloride

Biphenyl (Diphenyl)

Bis(2-ethylhexyl)-adipate

Butadiene, 1,3

Butyl acrylate

Butyl alcohol, n

Butyl alcohol, sec

Butyl alcohol, tert

Butylene oxide, 1,2

Butyraldehyde

Carbaryl

Carbon Disulfide

Catechol (1,2-Dihydroxybenzene)
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Chlorinated fluorocarbons

Chlorine

Chlorine dioxide

Chloroacetic acid

Chloroprene

Chlorothalonil

Cobalt

Cresidine, p

Cresol, m

Cresol, o

Cresol, p

Cresol (mixed isomers)

Cumene

Cumene hydroperoxide

Cupferron

Cyclohexane

C.I. basic green 4

C.I. disperse yellow 3

Decabromodiphenyl oxide

Diaminodiphenyl-ether, 4,4

Diaminotoluene, 2,4

Diaminotoluene (mixed isomers)

Dibenzofuran

Dibromoethane, 1,2

Dichlorobenzene (mixed isomers)

Diethanolamine

Dimethyl sulfate

Dioxane, 1,4

Epichlorohydrin

Ethoxyethanol, 2

Ethyl acrylate

Ethylene glycol

Ethylene oxide

Formaldehyde

Freon 113

Hydrazine

Hydrochloric acid

Hydrogen cyanide

Hydrogen fluoride

Hydroquinone

Isobutyraldehyde

Isopropyl alcohol

Isopropylidenedi-phenol, 4,4

Maleic anhydride

Manganese

Methanol

Methoxyethanol, 2

Methyl acrylate

Methyl hydrazine

Methyl iodide

Methyl methacrylate

Methyl tertbutyl ether

Molybdenum trioxide

Naphthylamine, alpha

Nitric acid
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Nitrilotriacetic acid

Nitroglycerin

Nitropropane, 2

Peracetic acid

Phenylenediamine, P

Phenylphenol, 2

Phosgene

Phosphoric acid

Phosphorous (yellow or white)

Phthalic anhydride

Picric acid (2,4,6-trinitro-phenol)

Propionaldehyde

Propylene oxide

Propylene (propene)

Pyridine

Quinoline

Styrene

Sulfuric acid

Terephthalic acid

Thiourea

Toluene 2,4-diisocyanate

Toluidine, o

Trichlorofon

Trimethylbenzene, 1,2,4

Urethane (Ethyl carbamate)

Vanadium

Vinyl acetate

Xylene, m

Xylene, o

Xylene, p

Xylidine, 2,6

Hexachloroethane

Trichlorobenzene, 1,2,4

Dichlorophenol, 2,4

Carbon tetrachloride

Trichloroethane, 1,1,1 (Methyl chloroform)

Trichloroethylene

Nitrosodiphenylamine-N

Dichlorobenzene, 1,4-

Chloroethane

Acetamide

Anisidine, P

Asbestos

Benzamide

Carbonyl sulfide

Chlorophenols

C.I. solvent yellow

Diaminoanisole, 2,4

Diaminoanisole sulfate, 2,4

Dicholoethylene, 1,2

Dichlorvos

Diethyl sulfate

Dimethoxybenzidine, 3,3

Dimethyl hydrazine, 1,1

Ethylene
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Ethylene thiourea

Fluometuron

Glycol ethers

Methylene bromide

Methylenabis (phenylisocyanate)

Nitro-o-anisidine, 5

Parathion

Propyleneimine (2-methyl aziridine)

Quinone

Styrene oxide

Thorium dioxide

Toluene2,6diisocyanate

Vinyl bromide

Bromomethane

Chlorodibromomethane

Nitrosodi-n-propylamine-n

Dichlorobromomethane

Bis-2 chloroethoxy methane

Chloro-3-methylphenol, 4-

Chlorophenylphenyl ether, 4-

Dinitro-2-methylphenol, 4,6

Nitrosodimethylamine N

Group 4 Pollutants

Di-n-butyl phthalate

Dinitrophenol, 2,4

Maneb

Bis(2-chloroethyl)-ether

Copper

Hexachloro1,3-butadiene

Acrylonitrile

Benzene

Chromium

Dichlorobenzene, 1,2

Dimethylaniline,n,n

Methyl ethyl ketone

Methyl isobutyl ketone

Methylenedianiline, 4,4

Nickel

Tetrachloroethylene, 1,1,2,2

Xylene (mixed isomers)

Acrolein

Dicofol

Thallium

Chloroform

Acrylonitrile

Acenaphthene

Acenapthylene

Chloronaphthalene, 2-

Chrysene

Dichloroethylene

Fluorene

Fluoranthene

Hexachlorocyclohexane delta

Ideno (1,2,3-cd) pyrene
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Di-N-butyl phthalate

Pyrene

2,3,7,8-TCDF

Alkylated lead

Danitol

EBDC fungicides

Kelthane

Kepone

Mirex

N-nitroso-di-n-butylamine

Octachlorostyrene

Pentachlorobenzene

Perylene

PCDD/Fs

Soy products

Styrene dimers and trimers

Synthetic pyrethroids

Technical-grade BHC (hexachlorocyclohexane)

Tetrachlorobenzene, 1,2,3,5-

Trazine herbicides

Tributyltin

Group 5 Pollutants

Hexachlorocyclopentadiene

Selenium

Dichloropropylene, 1,3

Tetrachlorvinphos

Dinitro-o-cresol, 4,6

Lead

Dioctyl phthalate, n

Trichlorophenol, 2,4,6

Di(2-ethylhexyl) phthalate

Trifluralin

Cadmium

Beryllium

Dichlorobenzidine, 3,3

Arsenic

Silver

Methoxychlor

Mercury

Hexachlorobenzene

Chlordane

Heptachlor

Polychlorinated biphenyls

Anthracene

Pentachlorophenol

Lindane

Aldrin

Benzidine

Diphenylhydrazine, 1,2-

Hexachorocyclopentadiene

1,2 benzanthracene

Benzo(a)pyrene

8,4 benzofluoranthene

Benzo(k)fluoranthene
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Cyanide

DDT

DDE

DDD

Dibenzo(a,h)anthracene

Dieldrin

Dioxin

Endosulfan alpha

Endosulfan beta

Endrin

Endrin aldehyde

Heptachlor epoxide

Hexachlorocyclohexane alpha

Hexachlorocyclohexane beta

Phenanthrene

Bis (2 ethyl hexyl) phthalate

Toxaphene

Ethylene dibromide

EPN (ethyl-p-nitrophenylphenylphosphorothioate)

Hexachlorophene

Captan

Propoxur

Quintozene (pentachloronitrobenzene)

1 ‘‘(b) SPECIAL RULES.—

2 ‘‘(1) FRACTIONAL PARTS OF A POUND.—In the

3 case of a fraction of a pound, the tax imposed by

4 this subchapter shall be the same fraction of the

5 amount of such tax imposed on a whole pound.

6 ‘‘(2) DISPOSITIONS OF REVENUES FROM PUER7 TO RICO AND THE VIRGIN ISLANDS.—The provisions

8 of subsections (a)(3) and (b)(3) of section 7652

9 shall not apply to any tax imposed by this sub10 chapter.

11 ‘‘Subchapter F—Fertilizer, Pesticides, and

12 Animal Feed

‘‘Sec. 4694. Imposition of tax.

‘‘Sec. 4695. Definitions and special rules.
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1 ‘‘SEC. 4694. IMPOSITION OF TAX.

2 ‘‘(a) GENERAL RULE.—There is hereby imposed a

3 tax on any fertilizer, pesticide, or animal feed—

4 ‘‘(1) which is manufactured or produced in the

5 United States or entered into the United States for

6 consumption use or warehousing, and

7 ‘‘(2) which sold or used by the manufacturer,

8 producer, or importer thereof.

9 ‘‘(b) AMOUNT OF TAX.—The amount of the tax im10 posed by subsection (a) is—

11 ‘‘(1) in the case of fertilizer, 0.845 cents per

12 pound of the nitrogen and phosphorous in such

13 fertilizer,

14 ‘‘(2) in the case of pesticide, 24.27 cents per

15 pound of the active ingredient in such pesticide, and

16 ‘‘(3) in the case of processed animal feed, 2.68

17 cents per ton.

18 ‘‘SEC. 4695. DEFINITIONS AND SPECIAL RULES.

19 ‘‘(a) DEFINITIONS.—For purposes of this sub20 chapter—

21 ‘‘(1) PESTICIDE AND ACTIVE INGREDIENT.—

22 The terms ‘pesticide’ and ‘active ingredient’ have the

23 meanings given such terms by section 2 of the Fed24 eral Insecticide, Fungicide, and Rodenticide Act.
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1 ‘‘(2) PROCESSED ANIMAL FEED.—The term

2 ‘processed animal feed’ means any agricultural or

3 horticultural commodity—

4 ‘‘(A) which is intended to be consumed by

5 livestock, birds, fur-bearing animals, fish, or

6 wildlife, and

7 ‘‘(B) to which some form of processing has

8 been applied.

9 For purposes of subparagraph (B), the term ‘proc10 essing’ does not include handling, packing, grading,

11 or storing.

12 ‘‘(3) FERTILIZER.—The term ‘fertilizer’ shall

13 not include manure or sewage sludge.

14 ‘‘(b) EXCEPTION FOR EXPORTS.—

15 ‘‘(1) IN GENERAL.—The tax imposed by section

16 4694 shall not apply to any article—

17 ‘‘(A) which is exported from the United

18 States by the person otherwise liable for such

19 tax, or

20 ‘‘(B) which is to be sold for export from

21 the United States by the purchaser or by any

22 subsequent purchaser.

23 ‘‘(2) CREDIT OR REFUND WHERE PRIOR TAX

24 IMPOSED.—
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1 ‘‘(A) IN GENERAL.—Except as provided in

2 subparagraph (B), if tax was imposed under

3 section 4694 with respect to any article and

4 such article is exported by any person, credit or

5 refund (without interest) of such tax shall be

6 allowed or made to the person who paid such

7 tax.

8 ‘‘(B) CONDITION OF ALLOWANCE.—No

9 credit or refund shall be allowed or made under

10 subparagraph (A) unless the person who paid

11 the tax establishes that—

12 ‘‘(i) he has repaid or agreed to repay

13 the amount of the tax to the person who

14 exported the article, or

15 ‘‘(ii) he has obtained the written con16 sent of such exporter to the allowance of

17 the credit or the making of the refund.

18 ‘‘(C) REFUNDS DIRECTLY TO EX19 PORTER.—Rules similar to the rules of section

20 4662(e)(3) shall apply to the tax imposed by

21 section 4694.

22 ‘‘(c) EXCEPTION FOR FURTHER MANUFACTURE.—

23 Rules similar to the rules of section 4682(d)(2) shall apply

24 for purposes of this subchapter.
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1 ‘‘(d) OTHER DEFINITIONS.—For purposes of this

2 subchapter—

3 ‘‘(1) UNITED STATES.—The term ‘United

4 States’ has the meaning given such term by section

5 4612(a)(4).

6 ‘‘(2) IMPORTER.—The term ‘importer’ means

7 the person entering the article for consumption, use,

8 or warehousing.

9 ‘‘(3) TON.—The term ‘ton’ means 2,000

10 pounds.

11 ‘‘(e) SPECIAL RULES.—

12 ‘‘(1) FRACTIONAL PARTS OF A POUND OR

13 TON.—In the case of a fraction of a pound or ton,

14 the tax imposed by this subchapter shall be the same

15 fraction of the amount of such tax imposed on a

16 whole pound or ton.

17 ‘‘(2) DISPOSITIONS OF REVENUES FROM PUER18 TO RICO AND THE VIRGIN ISLANDS.—The provisions

19 of subsections (a)(3) and (b)(3) of section 7652

20 shall not apply to any tax imposed by this sub21 chapter.’’

22 (b) CLERICAL AMENDMENT.—The table of sub23 chapters for chapter 38 of such Code is amended by add24 ing at the end thereof the following new items:

‘‘Subchapter E. Certain chemical pollutants.

‘‘Subchapter F. Fertilizer, pesticides, and animal feed.’’
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1 (c) EFFECTIVE DATE.—The amendments made by

2 this section shall take effect on January 1, 1994.

3 SEC. 202. EXCISE TAX ON COMMERCIAL AND INDUSTRIAL

4 WATER USE.

5 (a) IN GENERAL.—Chapter 36 of the Internal Reve6 nue Code of 1986 (relating to certain other excise taxes)

7 is amended by inserting after subchapter B the following

8 new subchapter:

9 ‘‘Subchapter C. Certain Nonresidential Uses

10 of Water

‘‘Sec. 4476. Imposition of tax.

‘‘Sec. 4477. Definitions and special rules.

11 ‘‘SEC. 4476. IMPOSITION OF TAX.

12 ‘‘(a) IN GENERAL.—There is hereby imposed a tax

13 of 1.95 cents on each thousand gallons of water sold for

14 use or used by the ultimate consumer in a taxable use.

15 ‘‘(b) LIABILITY FOR TAX.—

16 ‘‘(1) IN GENERAL.—The tax imposed by this

17 section shall be paid by the person using the water

18 in a taxable use.

19 ‘‘(2) COLLECTION OF TAX BY UTILITIES.—In

20 the case of water which is sold to the person re21 quired to pay the tax imposed by this section by a

22 water utility, such utility shall collect such tax from

23 such person and remit it to the Secretary.
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1 ‘‘SEC. 4477. DEFINITIONS AND SPECIAL RULES.

2 ‘‘(a) TAXABLE USE.—For purposes of this sub3 chapter—

4 ‘‘(1) IN GENERAL.—The term ‘taxable use’

5 means any use of water in the United States (as de6 fined in section 4612(a)(4)) other than—

7 ‘‘(A) any residential use,

8 ‘‘(B) any use on a farm for farming pur9 poses (determined under rules similar to the

10 rules of section 6420(c)),

11 ‘‘(C) any use at a hydroelectric generating

12 facility in the generation of electricity,

13 ‘‘(D) any use by United States, any State

14 or political subdivision thereof, the District of

15 Columbia, any possession of the United States,

16 or by any agency or instrumentality of any of

17 the foregoing.

18 ‘‘(b) WATER UTILITY.—For purposes of this sub19 chapter, water shall be treated as sold to any person by

20 a water utility if such water is sold by—

21 ‘‘(1) any governmental unit, or

22 ‘‘(2) any person engaged in the trade or busi23 ness of furnishing water if the rates for the furnish24 ing or sale of the water have been established or ap25 proved by a State or political subdivision thereof, by

26 an agency or instrumentality of the United States,
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1 or by a public service or public utility commission or

2 other similar body of a State or political subdivision.

3 ‘‘(c) FRACTIONAL PARTS.—In the case of a fraction

4 of 1,000 gallons, the tax imposed by this subchapter shall

5 be the same fraction of the amount of such tax imposed

6 on 1,000 gallons.

7 ‘‘(d) DISPOSITIONS OF REVENUES FROM PUERTO

8 RICO AND THE VIRGIN ISLANDS.—The provisions of sub9 sections (a)(3) and (b)(3) of section 7652 shall not apply

10 to any tax imposed by this subchapter.’’

11 (b) CLERICAL AMENDMENT.—The table of sub12 chapters for chapter 36 of such Code is amended by in13 serting after the item relating to subchapter B the follow14 ing new item:

‘‘Subchapter C. Certain nonresidential uses of water.’’

15 (c) EFFECTIVE DATE.—The amendments made by

16 this section shall take effect on January 1, 1994.

17 SEC. 203. CLEAN WATER TRUST FUND.

18 (a) IN GENERAL.—Subchapter A of chapter 98 of the

19 Internal Revenue Code of 1986 (relating to trust fund

20 code) is amended by adding at the end thereof the follow21 ing new section:

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

23 ‘‘(a) CREATION OF TRUST FUND.—There is estab24 lished in the Treasury of the United States a trust fund

25 to be known as the ‘Clean Water Trust Fund’, consisting
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1 of such amounts as may be appropriated or credited to

2 such Trust Fund as provided in this section or section

3 9602(b).

4 ‘‘(b) TRANSFERS TO TRUST FUND.—

5 ‘‘(1) IN GENERAL.—There are hereby appro6 priated to the Clean Water Trust Fund amounts

7 equivalent to the net revenues received in the Treas8 ury from the taxes imposed by—

9 ‘‘(A) section 4476 (relating to certain

10 nonresidential uses of water),

11 ‘‘(B) section 4691 (relating to discharges

12 of chemical pollutants), and

13 ‘‘(C) section 4694 (relating to fertilizer,

14 pesticides, and animal feed).

15 ‘‘(2) NET REVENUES.—For purposes of para16 graph (1), the term ‘net revenues’ means the

17 amount estimated by the Secretary based on the ex18 cess of—

19 ‘‘(A) the taxes received in the Treasury

20 under sections 4476, 4691, and 4694, over

21 ‘‘(B) the decrease in the tax imposed by

22 chapter 1 resulting from such taxes.

23 ‘‘(c) EXPENDITURES FROM TRUST FUND.—Amounts

24 in the Clean Water Trust Fund shall be available only for
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1 purposes of making expenditures to carry out title VI of

2 the Federal Water Pollution Control Act.

3 (b) CLERICAL AMENDMENT.—The table of sections

4 for such subchapter A is amended by adding at the end

5 thereof the following new item:

‘‘Sec. 9512. Clean Water Trust Fund.’’

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