‘‘(II) the potential adverse effects
on human health;
‘‘(III) the steps that the public
water system is taking to correct the
violation; and
‘‘(IV) the necessity of seeking al-
ternative water supplies until the vio-
lation is corrected;
‘‘(iii) be provided to the Administrator
or the head of the State agency that has
primary enforcement responsibility under
section 1413 as soon as practicable, but
not later than 24 hours after the occur-
rence of the violation; and
‘‘(iv) as required by the State agency
in general regulations of the State agency,
or on a case-by-case basis after the con-
sultation referred to in clause (iii), consid-
ering the health risks involved—
‘‘(I) be provided to appropriate
broadcast media;
‘‘(II) be prominently published in
a newspaper of general circulation
serving the area not later than 1 day
after distribution of a notice pursuant
to clause (i) or the date of publication
of the next issue of the newspaper; or
‘‘(III) be provided by posting or
door-to-door notification in lieu of no-
tification by means of broadcast
media or newspaper.
‘‘(D) WRITTEN NOTICE.—
‘‘(i) IN GENERAL.—Regulations issued
under subparagraph (A) shall specify noti-
fication procedures for violations other
than the violations covered by subpara-
graph (C). The procedures shall specify
that a public water system shall provide
written notice to each person served by the
system by notice (I) in the first bill (if
any) prepared after the date of occurrence
of the violation, (II) in an annual report is-
sued not later than 1 year after the date
of occurrence of the violation, or (III) by
mail or direct delivery as soon as prac-
ticable, but not later than 1 year after the
date of occurrence of the violation.
‘‘(ii) FORM
AND
MANNER
OF
NO-
TICE.—The Administrator shall prescribe
the form and manner of the notice to pro-
vide a clear and readily understandable ex-
planation of the violation, any potential ad-
verse health effects, and the steps that the
system is taking to seek alternative water
supplies, if any, until the violation is cor-
rected.
‘‘(E) UNREGULATED
CONTAMINANTS.—
The Administrator may require the owner or
operator of a public water system to give notice
to the persons served by the system of the con-
centration levels of an unregulated contaminant
required to be monitored under section 1445(a).
‘‘(3) REPORTS.—
‘‘(A) ANNUAL REPORT BY STATE.—
‘‘(i) IN
GENERAL.—Not later than
January 1, 1997, and annually thereafter,
each State that has primary enforcement
responsibility under section 1413 shall pre-
pare, make readily available to the public,
and submit to the Administrator an annual
report on violations of national primary
drinking water regulations by public water
systems in the State, including violations
with respect to (I) maximum contaminant
levels, (II) treatment requirements, (III)
variances and exemptions, and (IV) mon-
itoring requirements determined to be sig-
nificant by the Administrator after con-
sultation with the States.
‘‘(ii) DISTRIBUTION.—The State shall
publish and distribute summaries of the re-
port and indicate where the full report is
available for review.
‘‘(B) 
ANNUAL
REPORT
BY
ADMINIS-
TRATOR.—Not later than July 1, 1997, and an-
nually thereafter, the Administrator shall pre-
pare and make available to the public an annual
report summarizing and evaluating reports sub-
mitted by States pursuant to subparagraph (A)
and notices submitted by public water systems
serving Indian Tribes provided to the Adminis-
trator pursuant to subparagraph (C) or (D) of
paragraph (2) and making recommendations
concerning the resources needed to improve
compliance with this title. The report shall in-
clude information about public water system
compliance on Indian reservations and about
enforcement activities undertaken and financial
assistance provided by the Administrator on In-
dian reservations, and shall make specific rec-
ommendations concerning the resources needed
to improve compliance with this title on Indian
reservations.
‘‘(4) CONSUMER
CONFIDENCE
REPORTS
BY
COMMUNITY WATER SYSTEMS.—
‘‘(A) ANNUAL REPORTS TO CONSUMERS.—
The Administrator, in consultation with public
water systems, environmental groups, public in-
terest groups, risk communication experts, and
the States, and other interested parties, shall
issue regulations within 24 months after the
date of the enactment of this paragraph to re-
quire each community water system to—
‘‘(i) publish annually in one or more
local newspapers serving the area in which
customers of the system are located, and
‘‘(ii) mail to each customer of the sys-
tem at least once annually
a report on the level of contaminants in the
drinking water purveyed by that system (here-
inafter in this paragraph referred to as a
‘consumer confidence report’). Such regulations
shall provide a brief and plainly worded defini-
tion of the terms ‘maximum contaminant level
goal’ and ‘maximum contaminant level’ and
brief statements in plain language regarding
the health concerns that resulted in regulation
of each regulated contaminant. The regulations
shall also provide for a toll-free hot-line that
consumers can call for more information and
explanation.
‘‘(B) 
CONTENTS
OF
REPORT.—The
consumer confidence reports under this para-
graph shall include, but not be limited to, each
of the following:
‘‘(i) Information on the source of the
water purveyed.
‘‘(ii) A brief and plainly worded defi-
nition of the terms ‘maximum contaminant
level goal’ and ‘maximum contaminant
level’, as provided in the regulations of the
Administrator.
‘‘(iii) If any regulated contaminant is
detected in the water purveyed by the pub-
lic water system, a statement setting forth
(I) the maximum contaminant level goal,
(II) the maximum contaminant level, (III)
the level of such contaminant in such
water system, and (IV) for any regulated
contaminant for which there has been a
violation of the maximum contaminant
level during the year concerned, the brief
statement in plain language regarding the
health concerns that resulted in regulation
of such contaminant, as provided by the
Administrator in regulations under sub-
paragraph (A).
‘‘(iv) Information on compliance with
national primary drinking water regula-
tions.
‘‘(v) Information on the levels of un-
regulated contaminants for which monitor-
ing is required under section 1445(a)(2)
(including levels of cryptosporidium and
radon where States determine they may be
found).
‘‘(vi) A statement that more informa-
tion about contaminants and potential
health effects can be obtained by calling
the Environmental Protection Agency hot
line.
A public water system may include such addi-
tional information as it deems appropriate for
public education. The Administrator may, for
not more than 3 regulated contaminants other
than those referred to in subclause (IV) of
clause (iii), require a consumer confidence re-
port under this paragraph to include the brief
statement in plain language regarding the
health concerns that resulted in regulation of
the contaminant or contaminants concerned, as
provided by the Administrator in regulations
under subparagraph (A).
‘‘(C) COVERAGE.—The Governor of a
State may determine not to apply the mailing
requirement of subparagraph (A)(ii) to a com-
munity water system serving fewer than 10,000
persons. Any such system shall—
‘‘(i) inform its customers that the sys-
tem will not be complying with subpara-
graph (A)(ii),
‘‘(ii) make information available upon
request to the public regarding the quality
of the water supplied by such system, and
‘‘(iii) publish the public notice re-
quired by subparagraph (A)(i).
‘‘(D) ALTERNATIVE
FORM
AND
CON-
TENT.—A State exercising primary enforcement
responsibility may establish, by rule, after no-
tice and public comment, alternative require-
ments with respect to the form and content of
consumer confidence reports under this para-
graph.’’.
SEC. 132. ENFORCEMENT.
(a) IN GENERAL.—Section 1414 (42 U.S.C. 300g–
3) is amended as follows:
(1) In subsection (a):
(A) In paragraph (1)(A)(i), by striking
‘‘any national primary drinking water regula-
tion in effect under section 1412’’ and inserting
‘‘any applicable requirement’’, and by striking
‘‘with such regulation or requirement’’ in the
matter following clause (ii) and inserting ‘‘with
the requirement’’.
(B) In paragraph (1)(B), by striking ‘‘reg-
ulation or’’ and inserting ‘‘applicable’’.
(C) By amending paragraph (2) to read as
follows:
‘‘(2) ENFORCEMENT IN NONPRIMACY STATES.—
‘‘(A) IN GENERAL.—If, on the basis of informa-
tion available to the Administrator, the Adminis-
trator finds, with respect to a period in which a
State does not have primary enforcement respon-
sibility for public water systems, that a public water
system in the State—
‘‘(i) for which a variance under section
1415 or an exemption under section 1416 is not
in effect, does not comply with any applicable
requirement; or
‘‘(ii) for which a variance under section
1415 or an exemption under section 1416 is in
effect, does not comply with any schedule or
other requirement imposed pursuant to the
variance or exemption;
the Administrator shall issue an order under sub-
section (g) requiring the public water system to com-
ply with the requirement, or commence a civil action
under subsection (b).
‘‘(B) NOTICE.—If the Administrator takes any
action pursuant to this paragraph, the Adminis-
trator shall notify an appropriate local elected offi-
cial, if any, with jurisdiction over the public water
system of the action prior to the time that the action
is taken.’’.
(2) In subsection (b), in the first sentence, by
striking ‘‘a national primary drinking water regula-
tion’’ and inserting ‘‘any applicable requirement’’.
(3) In subsection (g):
(A) In paragraph (1), by striking ‘‘regula-
tion, schedule, or other’’ each place it appears
and inserting ‘‘applicable’’.
(B) In paragraph (2), by striking ‘‘effect
until after notice and opportunity for public
hearing and,’’ and inserting ‘‘effect,’’, and by
striking 
‘‘proposed 
order’’ 
and 
inserting
‘‘order’’, in the first sentence and in the second
sentence, by striking ‘‘proposed to be’’.
(C) In paragraph (3), by striking subpara-
graph (B) and inserting the following:
‘‘(B) In a case in which a civil penalty sought by the
Administrator under this paragraph does not exceed
$5,000, the penalty shall be assessed by the Administrator
after notice and opportunity for a public hearing (unless
the person against whom the penalty is assessed requests
a hearing on the record in accordance with section 554
of title 5, United States Code). In a case in which a civil
penalty sought by the Administrator under this paragraph
exceeds $5,000, but does not exceed $25,000, the penalty
shall be assessed by the Administrator after notice and
opportunity for a hearing on the record in accordance with
section 554 of title 5, United States Code.’’.
(D) In paragraph (3)(C), by striking
‘‘paragraph exceeds $5,000’’ and inserting
‘‘subsection for a violation of an applicable re-
quirement exceeds $25,000’’.
(4) By adding at the end the following sub-
sections:
‘‘(h) RELIEF.—
‘‘(1) IN GENERAL.—An owner or operator of a
public water system may submit to the State in
which the system is located (if the State has primary
enforcement responsibility under section 1413) or to
the Administrator (if the State does not have pri-
mary enforcement responsibility) a plan (including
specific measures and schedules) for—
‘‘(A) the physical consolidation of the sys-
tem with 1 or more other systems;
‘‘(B) the consolidation of significant man-
agement and administrative functions of the
system with 1 or more other systems; or
‘‘(C) the transfer of ownership of the sys-
tem that may reasonably be expected to im-
prove drinking water quality.
‘‘(2) CONSEQUENCES
OF
APPROVAL.—If the
State or the Administrator approves a plan pursuant
to paragraph (1), no enforcement action shall be
taken pursuant to this part with respect to a specific
violation identified in the approved plan prior to the
date that is the earlier of the date on which consoli-
dation is completed according to the plan or the date
that is 2 years after the plan is approved.
‘‘(i) DEFINITION OF APPLICABLE REQUIREMENT.—
In this section, the term ‘applicable requirement’ means—
‘‘(1) a requirement of section 1412, 1414,
1415, 1416, 1417, 1441, or 1445;
‘‘(2) a regulation promulgated pursuant to a
section referred to in paragraph (1);
‘‘(3) a schedule or requirement imposed pursu-
ant to a section referred to in paragraph (1); and
‘‘(4) a requirement of, or permit issued under,
an applicable State program for which the Adminis-
trator has made a determination that the require-
ments of section 1413 have been satisfied, or an ap-
plicable State program approved pursuant to this
part.’’.
(b) STATE AUTHORITY FOR ADMINISTRATIVE PEN-
ALTIES.—Section 1413(a) (42 U.S.C. 300g–2(a)) is
amended as follows:
(1) In paragraph (4), by striking ‘‘and’’ at the
end thereof.
(2) In paragraph (5), by striking the period at
the end and inserting ‘‘; and’’.
(3) By adding at the end the following:
‘‘(6) has adopted authority for administrative
penalties (unless the constitution of the State pro-
hibits the adoption of the authority) in a maximum
amount—
‘‘(A) in the case of a system serving a pop-
ulation of more than 10,000, that is not less
than $1,000 per day per violation; and
‘‘(B) in the case of any other system, that
is adequate to ensure compliance (as deter-
mined by the State);
except that a State may establish a maximum limita-
tion on the total amount of administrative penalties
that may be imposed on a public water system per
violation.’’.
SEC. 133. JUDICIAL REVIEW.
Section 1448(a) (42 U.S.C. 300j–7(a)) is amended
as follows:
(1) In paragraph (2), in the first sentence, by
inserting ‘‘final’’ after ‘‘any other’’.
(2) In the matter after and below paragraph
(2)—
(A) by striking ‘‘or issuance of the order’’
and inserting ‘‘or any other final Agency ac-
tion’’; and
(B) by adding at the end the following: ‘‘In
any petition concerning the assessment of a
civil penalty pursuant to section 1414(g)(3)(B),
the petitioner shall simultaneously send a copy
of the complaint by certified mail to the Admin-
istrator and the Attorney General. The court
shall set aside and remand the penalty order if
the court finds that there is not substantial evi-
dence in the record to support the finding of a
violation or that the assessment of the penalty
by the Administrator constitutes an abuse of
discretion.’’.
Subtitle D—Exemptions and
Variances
SEC. 141. EXEMPTIONS.
(a) 
SYSTEMS
SERVING
FEWER
THAN
3,300
PERSONS.—Section 1416 is amended by adding the fol-
lowing at the end thereof:
‘‘(h) SMALL SYSTEMS.—(1) For public water systems
serving fewer than 3,300 persons, the maximum exemp-
tion period shall be 4 years if the State is exercising pri-
mary enforcement responsibility for public water systems
and determines that—
‘‘(A) the public water system cannot meet the
maximum contaminant level or install Best Available
Affordable Technology (‘BAAT’) due in either case
to compelling economic circumstances (taking into
consideration the availability of financial assistance
under section 1452, relating to State Revolving
Funds) or other compelling circumstances;
‘‘(B) the public water system could not comply
with the maximum contaminant level through the
use of alternate water supplies;
‘‘(C) the granting of the exemption will provide
a drinking water supply that protects public health
given the duration of exemption; and
‘‘(D) the State has met the requirements of
paragraph (2).
‘‘(2)(A) Before issuing an exemption under this sec-
tion or an extension thereof for a small public water sys-
tem described in paragraph (1), the State shall—
‘‘(i) examine the public water system’s tech-
nical, financial, and managerial capability (taking
into consideration any available financial assistance)
to operate in, and maintain compliance with, this
title, and
‘‘(ii) determine if management or restructuring
changes (or both) can reasonably be made that will
result in compliance with this title or, if compliance
cannot be achieved, improve the quality of the drink-
ing water.
‘‘(B) Management changes referred to in subpara-
graph (A) may include rate increases, accounting changes,
the hiring of consultants, the appointment of a technician
with expertise in operating such systems, contractual ar-
rangements for a more efficient and capable system for
joint operation, or other reasonable strategies to improve
capacity.
‘‘(C) Restructuring changes referred to in subpara-
graph (A) may include ownership change, physical consoli-
dation with another system, or other measures to other-
wise improve customer base and gain economies of scale.
‘‘(D) If the State determines that management or re-
structuring changes referred to in subparagraph (A) can
reasonably be made, it shall require such changes and a
schedule therefore as a condition of the exemption. If the
State determines to the contrary, the State may still grant
the exemption. The decision of the State under this sub-
paragraph shall not be subject to review by the Adminis-
trator, except as provided in subsection (d).
‘‘(3) Paragraphs (1) and (3) of subsection (a) shall
not apply to an exemption issued under this subsection.
Subparagraph (B) of subsection (b)(2) shall not apply to
an exemption issued under this subsection, but any exemp-
tion granted to such a system may be renewed for addi-
tional 4-year periods upon application of the public water
system and after a determination that the criteria of para-
graphs (1) and (2) of this subsection continue to be met.
‘‘(4) No exemption may be issued under this section
for microbiological contaminants.’’.
(b) LIMITED ADDITIONAL COMPLIANCE PERIOD.—
At the end of section 1416(h) insert:
‘‘(5)(A) Notwithstanding this subsection, the State of
New York, on a case-by-case basis and after notice and
an opportunity of at least 60 days for public comment,
may allow an additional period for compliance with the
Surface Water Treatment Rule established pursuant to
section 1412(b)(7)(C) in the case of unfiltered systems in
Essex, 
Columbia, 
Greene, 
Duchess, 
Rennselaer,
Schoharie, Saratoga, Washington, and Warren Counties
serving a population of less than 5,000, which meet appro-
priate disinfection requirements and have adequate water-
shed protections, so long as the State determines that the
public health will be protected during the duration of the
additional compliance period and the system agrees to im-
plement appropriate control measures as determined by
the State.
‘‘(B) The additional compliance period referred to in
subparagraph (A) shall expire on the earlier of the date
3 years after the date on which the Administrator identi-
fies appropriate control technology for the Surface Water
Treatment Rule for public water systems in the category
that 
includes 
such 
system 
pursuant 
to 
section
1412(b)(4)(E) or 5 years after the enactment of the Safe
Drinking Water Act Amendments of 1996.’’.
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 1416(b)(1) is amended by striking ‘‘prescribed
by a State pursuant to this subsection’’ and inserting
‘‘prescribed by a State pursuant to this subsection or sub-
section (h)’’.
(2) Section 1416(c) is amended by striking ‘‘under
subsection (a)’’ and inserting ‘‘under this section’’ and by
inserting after ‘‘(a)(3)’’ in the second sentence ‘‘or the de-
termination under subsection (h)(1)(C)’’.
(3) Section 1416(d)(1) is amended by striking ‘‘3-
year’’ and inserting ‘‘4-year’’ and by amending the first
sentence to read as follows: ‘‘Not later than 4 years after
the date of enactment of the Safe Drinking Water Act
Amendments of 1996, the Administrator shall complete a
comprehensive review of the exemptions granted (and
schedules prescribed pursuant thereto) by the States dur-
ing the 4-year period beginning on such date.’’.
(4) Section 1416(b)(2)(C) is repealed.
(d) SYSTEMS SERVING MORE THAN 3,300 PER-
SONS.—Section 1416(b)(2)(A)(ii) is amended by striking
‘‘12 months’’ and inserting ‘‘4 years’’ and section
1416(b)(2)(B) is amended by striking ‘‘3 years after the
date of the issuance of the exemption’’ and inserting ‘‘4
years after the expiration of the initial exemption’’.
SEC. 142. VARIANCES.
(a) BAAT VARIANCE.—Section 1415 (42 U.S.C.
300g–4) is amended by adding the following at the end
thereof:
‘‘(e) SMALL SYSTEM ASSISTANCE PROGRAM.—
‘‘(1) BAAT VARIANCES.—In the case of public
water systems serving 3,300 persons or fewer, a
variance under this section shall be granted by a
State which has primary enforcement responsibility
for public water systems allowing the use of Best
Available Affordable Technology in lieu of best tech-
nology or other means where—
‘‘(A) no best technology or other means is
listed under section 1412(b)(4)(E) for the ap-
plicable category of public water systems;
‘‘(B) the Administrator has identified
BAAT for that contaminant pursuant to para-
graph (3); and
‘‘(C) the State finds that the conditions in
paragraph (4) are met.
‘‘(2) DEFINITION OF BAAT.—The term ‘Best
Available Affordable Technology’ or ‘BAAT’ means
the most effective technology or other means for the
control of a drinking water contaminant or contami-
nants that is available and affordable to systems
serving fewer than 3,300 persons.
‘‘(3) IDENTIFICATION OF BAAT.—(A) As part
of each national primary drinking water regulation
proposed and promulgated after the enactment of
the Safe Drinking Water Act Amendments of 1996,
the Administrator shall identify BAAT in any case
where no ‘best technology or other means’ is listed
for a category of public water systems listed under
section 1412(b)(4)(E). No such identified BAAT
shall require a technology from a specific manufac-
turer or brand. BAAT need not be adequate to
achieve the applicable maximum contaminant level
or treatment technique, but shall bring the public
water system as close to achievement of such maxi-
mum contaminant level as practical or as close to
the level of health protection provided by such treat-
ment technique as practical, as the case may be. Any
technology or other means identified as BAAT must
be determined by the Administrator to be protective
of public health. Simultaneously with identification
of BAAT, the Administrator shall list any assump-
tions underlying the public health determination re-
ferred to in the preceding sentence, where such as-
sumptions concern the public water system to which
the technology may be applied, or its source waters.
The Administrator shall provide the assumptions
used in determining affordability, taking into consid-
eration the number of persons served by such sys-
tems. Such listing shall provide as much reliable in-
formation as practicable on performance, effective-
ness, limitations, costs, and other relevant factors in
support of such listing, including the applicability of
BAAT to surface and underground waters or both.
‘‘(B) To the greatest extent possible, within 36
months after the date of the enactment of the Safe
Drinking Water Act Amendments of 1996, the Ad-
ministrator shall identify BAAT for all national pri-
mary drinking water regulations promulgated prior
to such date of enactment where no best technology
or other means is listed for a category of public
water systems under section 1412(b)(4)(E), and
where compliance by such small systems is not prac-
tical. In identifying BAAT for such national primary
drinking water regulations, the Administrator shall
give priority to evaluation of atrazine, asbestos, sele-
nium, pentachlorophenol, antimony, and nickel.
‘‘(4) CONDITIONS
FOR
BAAT
VARIANCE.—To
grant a variance under this subsection, the State
must determine that—
‘‘(A) the public water system cannot install
‘best technology or other means’ because of the
system’s small size;
‘‘(B) the public water system could not
comply with the maximum contaminant level
through use of alternate water supplies or
through management changes or restructuring;
‘‘(C) the public water system has the ca-
pacity to operate and maintain BAAT; and
‘‘(D) the circumstances of the public water
system are consistent with the public health as-
sumptions identified by the Administrator
under paragraph (3).
‘‘(5) SCHEDULES.—Any variance granted by a
State under this subsection shall establish a schedule
for the installation and operation of BAAT within a
period not to exceed 2 years after the issuance of the
variance, except that the State may grant an exten-
sion of 1 additional year upon application by the
system. The application shall include a showing of
financial or technical need. Variances under this
subsection shall be for a term not to exceed 5 years
(including the period allowed for installation and op-
eration of BAAT), but may be renewed for such ad-
ditional 5-year periods by the State upon a finding
that the criteria in paragraph (1) continue to be
met.
‘‘(6) REVIEW.—Any review by the Adminis-
trator under paragraphs (4) and (5) shall be pursu-
ant to subsection (a)(1)(G)(i).
‘‘(7) INELIGIBILITY FOR VARIANCES.—A vari-
ance shall not be available under this subsection
for—
‘‘(A) any maximum contaminant level or
treatment technique for a contaminant with re-
spect to which a national primary drinking
water regulation was promulgated prior to Jan-
uary 1, 1986; or
‘‘(B) a national primary drinking water
regulation for a microbial contaminant (includ-
ing a bacterium, virus, or other organism) or an
indicator or treatment technique for a microbial
contaminant.’’.
(b) TECHNICAL AND CONFORMING CHANGES.—
Section 1415 (42 U.S.C. 300g–4) is amended as fol-
lows:
(1) By striking ‘‘best technology, treatment
techniques, or other means’’ and ‘‘best available
technology, treatment techniques or other means’’
each place such terms appear and inserting in lieu
thereof ‘‘best technology or other means’’.
(2) By striking the third sentence and by strik-
ing ‘‘Before a schedule prescribed by a State pursu-
ant to this subparagraph may take effect’’ and all
that follows down to the beginning of the last sen-
tence in subsection (a)(1)(A).
(3) By amending the first sentence of sub-
section (a)(1)(C) to read as follows: ‘‘Before a vari-
ance is issued and a schedule is prescribed pursuant
to this subsection or subsection (e) by a State, the
State shall provide notice and an opportunity for a
public hearing on the proposed variance and sched-
ule.’’.
(4) By inserting ‘‘under this section’’ before the
period at the end of the third sentence of subsection
(a)(1)(C).
(5) By striking ‘‘under subparagraph (A)’’ and
inserting 
‘‘under 
this 
section’’ 
in 
subsection
(a)(1)(D).
(6) By striking ‘‘that subparagraph’’ in each
place it appears and insert in each such place ‘‘this
section’’ in subsection (a)(1)(D).
(7) By striking the last sentence of subsection
(a)(1)(D).
(8) By striking ‘‘3-year’’ and inserting ‘‘5-year’’
of subsection (a)(1)(F) and by amending the first
sentence of such subsection (a)(1)(F) to read as fol-
lows: ‘‘Not later than 5 years after the enactment of
the Safe Drinking Water Act Amendments of 1996,
the Administrator shall complete a review of the
variances granted under this section (and the sched-
ules prescribed in connection with such variances).’’.
(9) By striking ‘‘subparagraph (A) or (B)’’ and
inserting ‘‘this section’’ in subsection (a)(1)(G)(i).
(10) By striking ‘‘paragraph (1)(B) or (2) of
subsection (a)’’ and inserting ‘‘this section’’ in sub-
section (b).
(11) By striking ‘‘subsection (a)’’ and inserting
‘‘this section’’ in subsection (c).
(12) By repealing subsection (d).
Subtitle E—Lead Plumbing and
Pipes
SEC. 151. LEAD PLUMBING AND PIPES.
Section 1417 (42 U.S.C. 300g–6) is amended as fol-
lows:
(1) In subsection (a)—
(A) by striking paragraph (1) and insert-
ing the following:
‘‘(1) PROHIBITIONS.—
‘‘(A) IN GENERAL.—No person may use
any pipe, any pipe or plumbing fitting or fix-
ture, any solder, or any flux, after June 19,
1986, in the installation or repair of—
‘‘(i) any public water system; or
‘‘(ii) any plumbing in a residential or
nonresidential facility providing water for
human consumption,
that is not lead free (within the meaning of
subsection (d)).
‘‘(B) LEADED JOINTS.—Subparagraph (A)
shall not apply to leaded joints necessary for
the repair of cast iron pipes.’’.
(2) In subsection (a)(2)(A), by inserting ‘‘owner
or operator of a’’ after ‘‘Each’’.
(3) By adding at the end of subsection (a) the
following:
‘‘(3) UNLAWFUL ACTS.—Effective 2 years after
the date of enactment of this paragraph, it shall be
unlawful—
‘‘(A) for any person to introduce into com-
merce any pipe, or any pipe or plumbing fitting
or fixture, that is not lead free, except for a
pipe that is used in manufacturing or industrial
processing;
‘‘(B) for any person engaged in the busi-
ness of selling plumbing supplies, except manu-
facturers, to sell solder or flux that is not lead
free; or
‘‘(C) for any person to introduce into com-
merce any solder or flux that is not lead free
unless the solder or flux bears a prominent
label stating that it is illegal to use the solder
or flux in the installation or repair of any
plumbing providing water for human consump-
tion.’’.
(4) In subsection (d)—
(A) by striking ‘‘lead, and’’ in paragraph
(1) and inserting ‘‘lead;’’;
(B) by striking ‘‘lead.’’ in paragraph (2)
and inserting ‘‘lead; and’’; and
(C) by adding at the end the following:
‘‘(3) when used with respect to plumbing fit-
tings and fixtures, refers to plumbing fittings and
fixtures in compliance with standards established in
accordance with subsection (e).’’.
(5) By adding at the end the following:
‘‘(e) PLUMBING FITTINGS AND FIXTURES.—
‘‘(1) IN
GENERAL.—The Administrator shall
provide accurate and timely technical information
and assistance to qualified third-party certifiers in
the development of voluntary standards and testing
protocols for the leaching of lead from new plumbing
fittings and fixtures that are intended by the manu-
facturer to dispense water for human ingestion.
‘‘(2) STANDARDS.—
‘‘(A) IN GENERAL.—If a voluntary stand-
ard for the leaching of lead is not established
by the date that is 1 year after the date of en-
actment of this subsection, the Administrator
shall, not later than 2 years after the date of
enactment of this subsection, promulgate regu-
lations setting a health-effects-based perform-
ance standard establishing maximum leaching
levels from new plumbing fittings and fixtures
that are intended by the manufacturer to dis-
pense water for human ingestion. The standard
shall become effective on the date that is 5
years after the date of promulgation of the
standard.
‘‘(B) 
ALTERNATIVE
REQUIREMENT.—If
regulations are required to be promulgated
under subparagraph (A) and have not been pro-
mulgated by the date that is 5 years after the
date of enactment of this subsection, no person
may import, manufacture, process, or distribute
in commerce a new plumbing fitting or fixture,
intended by the manufacturer to dispense water
for human ingestion, that contains more than 4
percent lead by dry weight.’’.
Subtitle F—Capacity Development
SEC. 161. CAPACITY DEVELOPMENT.
Part B (42 U.S.C. 300g et seq.) is amended by add-
ing at the end the following:
‘‘SEC. 1419. CAPACITY DEVELOPMENT.
‘‘(a) STATE AUTHORITY FOR NEW SYSTEMS.—Each
State shall obtain the legal authority or other means to
ensure that all new community water systems and new
nontransient, noncommunity water systems commencing
operation after October 1, 1999, demonstrate technical,
managerial, and financial capacity with respect to each na-
tional primary drinking water regulation in effect, or likely
to be in effect, on the date of commencement of oper-
ations.
‘‘(b) SYSTEMS IN SIGNIFICANT NONCOMPLIANCE.—
‘‘(1) LIST.—Beginning not later than 1 year
after the date of enactment of this section, each
State shall prepare, periodically update, and submit
to the Administrator a list of community water sys-
tems and nontransient, noncommunity water sys-
tems that have a history of significant noncompli-
ance with this title (as defined in guidelines issued
prior to the date of enactment of this section or any
revisions of the guidelines that have been made in
consultation with the States) and, to the extent
practicable, the reasons for noncompliance.
‘‘(2) REPORT.—Not later than 5 years after the
date of enactment of this section and as part of the
capacity development strategy of the State, each
State shall report to the Administrator on the suc-
cess of enforcement mechanisms and initial capacity
development efforts in assisting the public water sys-
tems listed under paragraph (1) to improve tech-
nical, managerial, and financial capacity.
‘‘(c) CAPACITY DEVELOPMENT STRATEGY.—
‘‘(1) IN
GENERAL.—Not later than 4 years
after the date of enactment of this section, each
State shall develop and implement a strategy to as-
sist public water systems in acquiring and maintain-
ing technical, managerial, and financial capacity.
‘‘(2) CONTENT.—In preparing the capacity de-
velopment strategy, the State shall consider, solicit
public comment on, and include as appropriate—
‘‘(A) the methods or criteria that the State
will use to identify and prioritize the public
water systems most in need of improving tech-
nical, managerial, and financial capacity;
‘‘(B) a description of the institutional, reg-
ulatory, financial, tax, or legal factors at the
Federal, State, or local level that encourage or
impair capacity development;
‘‘(C) a description of how the State will
use the authorities and resources of this title or
other means to—
‘‘(i) assist public water systems in
complying with national primary drinking
water regulations;
‘‘(ii) encourage the development of
partnerships between public water systems
to enhance the technical, managerial, and
financial capacity of the systems; and
‘‘(iii) assist public water systems in
the training and certification of operators;
‘‘(D) a description of how the State will es-
tablish a baseline and measure improvements in
capacity with respect to national primary drink-
ing water regulations and State drinking water
law; and
‘‘(E) an identification of the persons that
have an interest in and are involved in the de-
velopment and implementation of the capacity
development strategy (including all appropriate
agencies of Federal, State, and local govern-
ments, private and nonprofit public water sys-
tems, and public water system customers).
‘‘(3) REPORT.—Not later than 2 years after the
date on which a State first adopts a capacity devel-
opment strategy under this subsection, and every 3
years thereafter, the head of the State agency that
has primary responsibility to carry out this title in
the State shall submit to the Governor a report that
shall also be available to the public on the efficacy
of the strategy and progress made toward improving
the technical, managerial, and financial capacity of
public water systems in the State.
‘‘(4) REVIEW.—The decisions of the State
under this section regarding any particular public
water system are not subject to review by the Ad-
ministrator and may not serve as the basis for with-
holding funds under section 1452(a)(1)(H)(i).
‘‘(d) FEDERAL ASSISTANCE.—
‘‘(1) IN
GENERAL.—The Administrator shall
support the States in developing capacity develop-
ment strategies.
‘‘(2) INFORMATIONAL ASSISTANCE.—
‘‘(A) IN
GENERAL.—Not later than 180
days after the date of enactment of this section,
the Administrator shall—
‘‘(i) conduct a review of State capacity
development efforts in existence on the
date of enactment of this section and pub-
lish information to assist States and public
water systems in capacity development ef-
forts; and
‘‘(ii) 
initiate 
a 
partnership 
with
States, public water systems, and the pub-
lic to develop information for States on
recommended operator certification re-
quirements.
‘‘(B) PUBLICATION
OF
INFORMATION.—
The Administrator shall publish the information
developed through the partnership under sub-
paragraph (A)(ii) not later than 18 months
after the date of enactment of this section.
‘‘(3) PROMULGATION
OF
DRINKING
WATER
REGULATIONS.—In promulgating a national primary
drinking water regulation, the Administrator shall
include an analysis of the likely effect of compliance
with the regulation on the technical, financial, and
managerial capacity of public water systems.
‘‘(4) GUIDANCE FOR NEW SYSTEMS.—Not later
than 2 years after the date of enactment of this sec-
tion, the Administrator shall publish guidance devel-
oped in consultation with the States describing legal
authorities and other means to ensure that all new
community water systems and new nontransient,
noncommunity water systems demonstrate technical,
managerial, and financial capacity with respect to
national primary drinking water regulations.’’.
TITLE II—AMENDMENTS TO
PART C
SEC. 201. SOURCE WATER QUALITY ASSESSMENT.
(a) GUIDELINES AND PROGRAMS.—Section 1428 is
amended by adding ‘‘AND
SOURCE
WATER’’ after
‘‘WELLHEAD’’ in the section heading and by adding at
the end thereof the following:
‘‘(l) SOURCE WATER ASSESSMENT.—
‘‘(1) GUIDANCE.—Within 12 months after en-
actment of the Safe Drinking Water Act Amend-
ments of 1996, after notice and comment, the Ad-
ministrator shall publish guidance for States exercis-
ing primary enforcement responsibility for public
water systems to carry out directly or through dele-
gation (for the protection and benefit of public water
systems and for the support of monitoring flexibility)
a source water assessment program within the
State’s boundaries.
‘‘(2) 
PROGRAM
REQUIREMENTS.—A 
source
water assessment program under this subsection
shall—
‘‘(A) delineate the boundaries of the as-
sessment areas in such State from which one or
more public water systems in the State receive
supplies of drinking water, using all reasonably
available hydrogeologic information on the
sources of the supply of drinking water in the
State and the water flow, recharge, and dis-
charge and any other reliable information as
the State deems necessary to adequately deter-
mine such areas; and
‘‘(B) identify for contaminants regulated
under this title for which monitoring is required
under this title (or any unregulated contami-
nants which the State, for the purposes of this
subsection, has determined to present a sub-
stantial threat to public health), to the extent
practical, the origins within each delineated
area of such contaminants to determine the
susceptibility of the public water systems in the
delineated area to such contaminants.
‘‘(3) APPROVAL, IMPLEMENTATION, AND MON-
ITORING RELIEF.—A State source water assessment
program under this subsection shall be submitted to
the Administrator within 18 months after the Ad-
ministrator’s guidance is issued under this sub-
section and shall be deemed approved 9 months
after the date of such submittal unless the Adminis-
trator disapproves the program as provided in sub-
section (c). States shall begin implementation of the
program immediately after its approval. The Admin-
istrator’s approval of a State program under this
subsection shall include a timetable, established in
consultation with the State, allowing not more than
2 years for completion after approval of the pro-
gram. Public water systems seeking monitoring relief
in addition to the interim relief provided under sec-
tion 1418(a) shall be eligible for monitoring relief,
consistent with section 1418(b), upon completion of
the assessment in the delineated source water as-
sessment area or areas concerned.
‘‘(4) TIMETABLE.—The timetable referred to in
paragraph (3) shall take into consideration the avail-
ability to the State of funds under section 1452 (re-
lating to State Revolving Funds) for assessments
and other relevant factors. The Administrator may
extend any timetable included in a State program
approved under paragraph (3) to extend the period
for completion by an additional 18 months. Compli-
ance with subsection (g) shall not affect any State
permanent monitoring flexibility program approved
under section 1418(b).
‘‘(5) DEMONSTRATION PROJECT.—The Admin-
istrator shall, as soon as practicable, conduct a dem-
onstration project, in consultation with other Fed-
eral agencies, to demonstrate the most effective and
protective means of assessing and protecting source
waters serving large metropolitan areas and located
on Federal lands.
‘‘(6) USE OF OTHER PROGRAMS.—To avoid du-
plication and to encourage efficiency, the program
under this section shall, to the extent practicable, be
coordinated with other existing programs and mech-
anisms, and may make use of any of the following:
‘‘(A) Vulnerability assessments, sanitary
surveys, and monitoring programs.
‘‘(B) 
Delineations 
or 
assessments 
of
ground water sources under a State wellhead
protection program developed pursuant to this
section.
‘‘(C) Delineations or assessments of sur-
face or ground water sources under a State pes-
ticide management plan developed pursuant to
the Pesticide and Ground Water State Manage-
ment Plan Regulation (subparts I and J of part
152 of title 40, Code of Federal Regulations),
promulgated under section 3(d) of the Federal
Insecticide, Fungicide, and Rodenticide Act (7
U.S.C. 136a(d)).
‘‘(D) Delineations or assessments of sur-
face water sources under a State watershed ini-
tiative or to satisfy the watershed criterion for
determining if filtration is required under the
Surface Water Treatment Rule (section 141.70
of title 40, Code of Federal Regulations).
‘‘(7) PUBLIC
AVAILABILITY.—The State shall
make the results of the source water assessments
conducted under this subsection available to the pub-
lic.’’.
(b) APPROVAL AND DISAPPROVAL OF STATE PRO-
GRAMS.—Section 1428 is amended as follows:
(1) Amend the first sentence of subsection
(c)(1) to read as follows: ‘‘If, in the judgment of the
Administrator, a State program or portion thereof
under subsection (a) is not adequate to protect pub-
lic water systems as required by subsection (a) or a
State program under subsection (l) does not meet
the applicable requirements of subsection (l), the Ad-
ministrator shall disapprove such program or portion
thereof.’’.
(2) Add after the second sentence of subsection
(c)(1) the following: ‘‘A State program developed
pursuant to subsection (l) shall be deemed to meet
the applicable requirements of subsection (l) unless
the Administrator determines within 9 months of the
receipt of the program that such program (or por-
tion thereof) does not meet such requirements.’’.
(3) In the third sentence of subsection (c)(1)
and in subsection (c)(2) strike ‘‘is inadequate’’ and
insert ‘‘is disapproved’’.
(4) In subsection (b), add the following before
the period at the end of the first sentence: ‘‘and
source water assessment programs under subsection
(l)’’.
(5) In subsection (g)—
(A) insert after ‘‘under this section’’ the
following: ‘‘and the State source water assess-
ment programs under subsection (l) for which
the State uses grants under section 1452 (relat-
ing to State Revolving Funds)’’; and
(B) strike ‘‘Such’’ in the last sentence and
inserting ‘‘In the case of wellhead protection
programs, such’’.
SEC. 202. FEDERAL FACILITIES.
(a) IN GENERAL.—Part C (42 U.S.C. 300h et seq.)
is amended by adding at the end thereof the following new
section:
‘‘SEC. 1429. FEDERAL FACILITIES.
‘‘(a) IN GENERAL.—Each department, agency, and
instrumentality of the executive, legislative, and judicial
branches of the Federal Government—
‘‘(1) owning or operating any facility in a well-
head protection area,
‘‘(2) engaged in any activity at such facility re-
sulting, or which may result, in the contamination of
water supplies in any such area, or
‘‘(3) owning or operating any public water sys-
tem,
shall be subject to, and comply with, all Federal, State,
interstate, and local requirements, both substantive and
procedural (including any requirement for permits or re-
porting or any provisions for injunctive relief and such
sanctions as may be imposed by a court to enforce such
relief), respecting the protection of such wellhead areas
and respecting such public water systems in the same
manner and to the same extent as any person is subject
to such requirements, including the payment of reasonable
service charges. The Federal, State, interstate, and local
substantive and procedural requirements referred to in
this subsection include, but are not limited to, all adminis-
trative orders and all civil and administrative penalties
and fines, regardless of whether such penalties or fines
are punitive or coercive in nature or are imposed for iso-
lated, intermittent, or continuing violations. The United
States hereby expressly waives any immunity otherwise
applicable to the United States with respect to any such
substantive or procedural requirement (including, but not
limited to, any injunctive relief, administrative order or
civil or administrative penalty or fine referred to in the
preceding sentence, or reasonable service charge). The rea-
sonable service charges referred to in this subsection in-
clude, but are not limited to, fees or charges assessed in
connection with the processing and issuance of permits,
renewal of permits, amendments to permits, review of
plans, studies, and other documents, and inspection and
monitoring of facilities, as well as any other nondiscrim-
inatory charges that are assessed in connection with a
Federal, State, interstate, or local regulatory program re-
specting the protection of wellhead areas or public water
systems. Neither the United States, nor any agent, em-
ployee, or officer thereof, shall be immune or exempt from
any process or sanction of any State or Federal Court with
respect to the enforcement of any such injunctive relief.
No agent, employee, or officer of the United States shall
be personally liable for any civil penalty under any Fed-
eral, State, interstate, or local law concerning the protec-
tion of wellhead areas or public water systems with respect
to any act or omission within the scope of the official du-
ties of the agent, employee, or officer. An agent, employee,
or officer of the United States shall be subject to any
criminal sanction (including, but not limited to, any fine
or imprisonment) under any Federal or State requirement
adopted pursuant to this title, but no department, agency,
or instrumentality of the executive, legislative, or judicial
branch of the Federal Government shall be subject to any
such sanction. The President may exempt any facility of
any department, agency, or instrumentality in the execu-
tive branch from compliance with such a requirement if
he determines it to be in the paramount interest of the
United States to do so. No such exemption shall be grant-
ed due to lack of appropriation unless the President shall
have specifically requested such appropriation as a part
of the budgetary process and the Congress shall have
failed to make available such requested appropriation. Any
exemption shall be for a period not in excess of 1 year,
but additional exemptions may be granted for periods not
to exceed 1 year upon the President’s making a new deter-
mination. The President shall report each January to the
Congress all exemptions from the requirements of this sec-
tion granted during the preceding calendar year, together
with his reason for granting each such exemption.
‘‘(b) ADMINISTRATIVE PENALTY ORDERS.—
‘‘(1) IN GENERAL.—If the Administrator finds
that a Federal agency has violated an applicable re-
quirement under this title, the Administrator may
issue a penalty order assessing a penalty against the
Federal agency.
‘‘(2) PENALTIES.—The Administrator may,
after notice to the agency, assess a civil penalty
against the agency in an amount not to exceed
$25,000 per day per violation.
‘‘(3) PROCEDURE.—Before an administrative
penalty order issued under this subsection becomes
final, the Administrator shall provide the agency an
opportunity to confer with the Administrator and
shall provide the agency notice and an opportunity
for a hearing on the record in accordance with chap-
ters 5 and 7 of title 5, United States Code.
‘‘(4) PUBLIC REVIEW.—
‘‘(A) IN GENERAL.—Any interested person
may obtain review of an administrative penalty
order issued under this subsection. The review
may be obtained in the United States District
Court for the District of Columbia or in the
United States District Court for the district in
which the violation is alleged to have occurred
by the filing of a complaint with the court with-
in the 30-day period beginning on the date the
penalty order becomes final. The person filing
the complaint shall simultaneously send a copy
of the complaint by certified mail to the Admin-
istrator and the Attorney General.
‘‘(B) RECORD.—The Administrator shall
promptly file in the court a certified copy of the
record on which the order was issued.
‘‘(C) STANDARD OF REVIEW.—The court
shall not set aside or remand the order unless
the court finds that there is not substantial evi-
dence in the record, taken as a whole, to sup-
port the finding of a violation or that the as-
sessment of the penalty by the Administrator
constitutes an abuse of discretion.
‘‘(D) PROHIBITION ON ADDITIONAL PEN-
ALTIES.—The court may not impose an addi-
tional civil penalty for a violation that is subject
to the order unless the court finds that the as-
sessment constitutes an abuse of discretion by
the Administrator.
‘‘(c) LIMITATION ON STATE USE OF FUNDS COL-
LECTED FROM FEDERAL GOVERNMENT.—Unless a State
law in effect on the date of the enactment of the Safe
Drinking Water Act Amendments of 1996 or a State con-
stitution requires the funds to be used in a different man-
ner, all funds collected by a State from the Federal Gov-
ernment from penalties and fines imposed for violation of
any substantive or procedural requirement referred to in
subsection (a) shall be used by the State only for projects
designed to improve or protect the environment or to de-
fray the costs of environmental protection or enforce-
ment.’’.
(b) CITIZEN ENFORCEMENT.—The first sentence of
section 1449(a) (42 U.S.C. 300j–8(a)) is amended—
(1) in paragraph (1), by striking ‘‘, or’’ and in-
serting a semicolon;
(2) in paragraph (2), by striking the period at
the end and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(3) for the collection of a penalty by the
United States Government (and associated costs and
interest) against any Federal agency that fails, by
the date that is 1 year after the effective date of a
final order to pay a penalty assessed by the Admin-
istrator under section 1447(d), to pay the penalty.’’.
(c) CONFORMING AMENDMENTS.—Section 1447 (42
U.S.C. 300j–6) is amended as follows:
(1) In subsection (a)—
(A) in the first sentence, by striking ‘‘(1)
having jurisdiction over any federally owned or
maintained public water system or (2)’’;
(B) in the first sentence, by striking out
‘‘respecting the provision of safe drinking water
and’’; and
(C) in the second sentence, by striking
‘‘(A)’’, ‘‘(B)’’, and ‘‘(C)’’ and inserting ‘‘(1)’’,
‘‘(2)’’, and ‘‘(3)’’, respectively.
(2) In subsection (c), by striking ‘‘the Safe
Drinking Water Amendments of 1977’’ and insert-
ing ‘‘this title’’ and by striking ‘‘this Act’’ and in-
serting ‘‘this title’’.
TITLE 
III—GENERAL 
PROVI-
SIONS 
REGARDING 
SAFE
DRINKING WATER ACT
SEC. 301. OPERATOR CERTIFICATION.
Section 1442 is amended by adding the following
after subsection (e):
‘‘(f) MINIMUM STANDARDS.—(1) Not later than 30
months after the date of enactment of the Safe Drinking
Water Act Amendments of 1996 and after consultation
with States exercising primary enforcement responsibility
for public water systems, the Administrator shall promul-
gate regulations specifying minimum standards for certifi-
determination, such existing State programs shall be pre-
sumed to be substantially equivalent to the regulations,
notwithstanding program differences, based on the size of
systems or the quality of source water, providing State
programs meet overall public health objectives of the regu-
lations. If disapproved the program may be resubmitted
in accordance with section 1428(c).’’.
SEC. 302. TECHNICAL ASSISTANCE.
Section 1442(e) (42 U.S.C. 300j–1(e)), relating to
technical assistance for small systems, is amended to read
as follows:
‘‘(e) TECHNICAL ASSISTANCE.—The Administrator
may provide technical assistance to small public water sys-
tems to enable such systems to achieve and maintain com-
pliance with applicable national primary drinking water
regulations. Such assistance may include circuit-rider pro-
grams, training, and preliminary engineering evaluations.
There is authorized to be appropriated to the Adminis-
trator to be used for such technical assistance
$15,000,000 for fiscal years 1997 through 2003. No por-
tion of any State revolving fund established under section
1452 (relating to State revolving funds) and no portion
of any funds made available under this subsection may
be used either directly or indirectly for lobbying expenses.
Of the total amount appropriated under this subsection,
3 percent shall be used for technical assistance to public
water systems owned or operated by Indian tribes.’’.
SEC. 303. PUBLIC WATER SYSTEM SUPERVISION PROGRAM.
Section 1443(a) (42 U.S.C. 300j–2(a)) is amended
as follows:
(1) In paragraph (7), by adding at the end a
period and the following: ‘‘For the purpose of mak-
ing grants under paragraph (1), there are author-
ized to be appropriated $100,000,000 for each of fis-
cal years 1994 through 2003.’’.
(2) By adding at the end the following:
‘‘(8) RESERVATION OF FUNDS BY THE ADMINIS-
TRATOR.—If the Administrator assumes the primary en-
forcement responsibility of a State public water system su-
pervision program, the Administrator may reserve from
funds made available pursuant to this subsection, an
amount equal to the amount that would otherwise have
been provided to the State pursuant to this subsection.
The Administrator shall use the funds reserved pursuant
to this paragraph to ensure the full and effective adminis-
tration of a public water system supervision program in
the State.
‘‘(9) STATE LOAN FUNDS.—For any fiscal year for
which the amount made available to the Administrator by
appropriations to carry out this subsection is less than the
amount that the Administrator determines is necessary to
supplement funds made available pursuant to paragraph
(8) to ensure the full and effective administration of a
public water system supervision program in a State, the
Administrator may reserve from the funds made available
to the State under section 1452 (relating to State revolv-
ing funds) an amount that is equal to the amount of the
shortfall. This paragraph shall not apply to any State not
exercising primary enforcement responsibility for public
water systems as of the date of enactment of the Safe
Drinking Water Amendments of 1996.’’.
SEC. 304. MONITORING AND INFORMATION GATHERING.
(a) REVIEW OF EXISTING REQUIREMENTS.—Para-
graph (1) of section 1445(a) (42 U.S.C. 300j–4(a)(1)) is
amended to read as follows:
‘‘(1)(A) Every person who is subject to any re-
quirement of this title or who is a grantee, shall es-
tablish and maintain such records, make such re-
ports, conduct such monitoring, and provide such in-
formation as the Administrator may reasonably re-
quire by regulation to assist the Administrator in es-
tablishing regulations under this title, in determin-
ing whether such person has acted or is acting in
compliance with this title, in administering any pro-
gram of financial assistance under this title, in eval-
uating the health risks of unregulated contaminants,
or in advising the public of such risks. In requiring
a public water system to monitor under this sub-
section, the Administrator may take into consider-
ation the system size and the contaminants likely to
be found in the system’s drinking water.
‘‘(B) Every person who is subject to a national
primary drinking water regulation under section
1412 shall provide such information as the Adminis-
trator may reasonably require, after consultation
with the State in which such person is located if
such State has primary enforcement responsibility
for public water systems, on a case-by-case basis, to
determine whether such person has acted or is act-
ing in compliance with this title.
‘‘(C) Every person who is subject to a national
primary drinking water regulation under section
1412 shall provide such information as the Adminis-
trator may reasonably require to assist the Adminis-
trator in establishing regulations under section 1412
of this title, after consultation with States and sup-
pliers of water. The Administrator may not require
under this subparagraph the installation of treat-
ment equipment or process changes, the testing of
treatment technology, or the analysis or processing
of monitoring samples, except where the Adminis-
trator provides the funding for such activities. Be-
fore exercising this authority, the Administrator
shall first seek to obtain the information by vol-
untary submission.
‘‘(D) The Administrator shall not later than 2
years after the date of enactment of this sentence,
after consultation with public health experts, rep-
resentatives of the general public, and officials of
State and local governments, review the monitoring
requirements for not fewer than 12 contaminants
identified by the Administrator, and promulgate any
necessary modifications.’’.
(b) MONITORING RELIEF.—Part B is amended by
adding the following new section after section 1417:
‘‘SEC. 1418. MONITORING OF CONTAMINANTS.
‘‘(a) INTERIM MONITORING RELIEF AUTHORITY.—
(1) A State exercising primary enforcement responsibility
for public water systems may modify the monitoring re-
quirements for any regulated or unregulated contaminants
for which monitoring is required other than microbial con-
taminants (or indicators thereof), disinfectants and dis-
infection byproducts or corrosion byproducts for an in-
terim period to provide that any public water system serv-
ing 10,000 persons or fewer shall not be required to con-
duct additional quarterly monitoring during an interim re-
lief period for such contaminants if—
‘‘(i) monitoring, conducted at the beginning of
the period for the contaminant concerned and cer-
tified to the State by the public water system, fails
to detect the presence of the contaminant in the
ground or surface water supplying the public water
system, and
‘‘(ii) the State, (considering the hydrogeology of
the area and other relevant factors), determines in
writing that the contaminant is unlikely to be de-
tected by further monitoring during such period.
‘‘(2) The interim relief period referred to in para-
graph (1) shall terminate when permanent monitoring re-
lief is adopted and approved for such State, or at the end
of 36 months after the enactment of the Safe Drinking
Water Act Amendments of 1996, whichever comes first.
In order to serve as a basis for interim relief, the monitor-
ing conducted at the beginning of the period must occur
at the time determined by the State to be the time of the
public water system’s greatest vulnerability to the con-
taminant concerned in the relevant ground or surface
water, taking into account in the case of pesticides the
time of application of the pesticide for the source water
area and the travel time for the pesticide to reach such
waters and taking into account, in the case of other con-
taminants, seasonality of precipitation and contaminant
travel time.
‘‘(b) PERMANENT MONITORING RELIEF AUTHOR-
ITY.—(1) Each State exercising primary enforcement re-
sponsibility for public water systems under this title and
having an approved wellhead protection program and a
source water assessment program may adopt, in accord-
ance with guidance published by the Administrator, and
submit to the Administrator as provided in section
1428(c), tailored alternative monitoring requirements for
public water systems in such State (as an alternative to
the monitoring requirements specified in the Administra-
tor’s standardized monitoring framework for chemical con-
taminants and the applicable national primary drinking
water regulations) where the State concludes that (based
on data available at the time of adoption concerning sus-
ceptibility, use, occurrence, wellhead protection, or from
the State’s drinking water source water assessment pro-
gram) such alternative monitoring would provide assur-
ance that it complies with the Administrator’s guidelines.
The State program must be adequate to assure compliance
with, and enforcement of, applicable national primary
drinking water regulations. Alternative monitoring shall
not apply to regulated microbiological contaminants (or in-
dicators thereof), disinfectants and disinfection by-prod-
ucts, or corrosion by-products. The preceding sentence is
not intended to limit other authority of the Administrator
under other provisions of this title to grant monitoring
flexibility.
‘‘(2)(A) The Administrator shall issue, after notice
and comment and at the same time as guidelines are is-
sued for source water assessment under section 1428(l),
guidelines for States to follow in proposing alternative re-
quirements to the standardized monitoring framework for
chemical contaminants. The Administrator shall publish
such framework in the Federal Register. The guidelines
shall assure that the public health will be protected from
drinking water contamination. The guidelines shall require
that a State alternative monitoring program apply on a
contaminant-by-contaminant basis and that, to be eligible
for such alternative monitoring program, a public water
system must show the State that the contaminant is not
present in the drinking water supply or, if present, it is
reliably and consistently below the maximum contaminant
level.
‘‘(B) For purposes of subparagraph (A), the phrase
‘reliably and consistently below the maximum contaminant
level’ means that, although contaminants have been de-
tected in a water supply, the State has sufficient knowl-
edge of the contamination source and extent of contamina-
tion to predict that the maximum contaminant level will
not be exceeded. In determining that a contaminant is reli-
ably and consistently below the maximum contaminant
level, States shall consider the quality and completeness
of data, the length of time covered and the volatility or
stability of monitoring results during that time, and the
proximity of such results to the maximum contaminant
level. Wide variations in the analytical results, or analyt-
ical results close to the maximum contaminant level, shall
not be considered to be reliably and consistently below the
maximum contaminant level.
‘‘(3) The guidelines issued by the Administrator
under paragraph (2) shall require that if, after the mon-
itoring program is in effect and operating, a contaminant
covered by the alternative monitoring program is detected
at levels at or above the maximum contaminant level or
is no longer reliably or consistently below the maximum
contaminant level, the public water system must either—
‘‘(A) 
demonstrate 
that 
the 
contamination
source has been removed or that other action has
been taken to eliminate the contamination problem,
or
‘‘(B) test for the detected contaminant pursu-
ant to the applicable national primary drinking
water regulation.
‘‘(c) TREATMENT AS NPDWR.—All monitoring relief
granted by a State to a public water system for a regu-
lated contaminant under subsection (a) or (b) shall be
treated as part of the national primary drinking water reg-
ulation for that contaminant.
‘‘(d) OTHER MONITORING RELIEF.—Nothing in this
section shall be construed to affect the authority of the
States under the standard monitoring framework for
chemical contaminants and under applicable national pri-
mary drinking water regulations to alter monitoring re-
quirements through waivers or other existing authorities.
The Administrator shall periodically review and, as appro-
priate, revise such authorities.’’.
(c) 
UNREGULATED
CONTAMINANTS.—Section
1445(a) (42 U.S.C. 300j–4(a)) is amended by striking
paragraphs (2) through (8) and inserting the following:
‘‘(2) MONITORING
PROGRAM
FOR
UNREGU-
LATED CONTAMINANTS.—
‘‘(A) 
ESTABLISHMENT.—The 
Adminis-
trator shall promulgate regulations establishing
the criteria for a monitoring program for un-
regulated contaminants. The regulations shall
require monitoring of drinking water supplied
by public water systems and shall vary the fre-
quency and schedule for monitoring require-
ments for systems based on the number of per-
sons served by the system, the source of supply,
and the contaminants likely to be found.
‘‘(B) MONITORING PROGRAM FOR CERTAIN
UNREGULATED CONTAMINANTS.—
‘‘(i) INITIAL LIST.—Not later than 3
years after the date of enactment of the
Safe Drinking Water Amendments of 1996
and every 5 years thereafter, the Adminis-
trator shall issue a list pursuant to sub-
paragraph (A) of not more than 40 un-
regulated contaminants to be monitored by
public water systems and to be included in
the national drinking water occurrence
data base maintained pursuant to sub-
section (g).
‘‘(ii) 
GOVERNORS’ 
PETITION.—The
Administrator shall include among the list
of contaminants for which monitoring is
required under this paragraph each con-
taminant recommended in a petition signed
by the Governor of each of 7 or more
States, unless the Administrator deter-
mines that the action would prevent the
listing of other contaminants of a higher
public health concern.
‘‘(C) MONITORING PLAN FOR SMALL AND
MEDIUM SYSTEMS.—
‘‘(i) IN GENERAL.—Based on the reg-
ulations promulgated by the Administrator,
each State shall develop a representative
monitoring plan to assess the occurrence of
unregulated contaminants in public water
systems that serve a population of 10,000
or fewer. The plan shall require monitoring
for systems representative of different
sizes, types, and geographic locations in
the State.
‘‘(ii) GRANTS
FOR
SMALL
SYSTEM
COSTS.—From funds appropriated under
subparagraph (G), the Administrator shall
pay the reasonable cost of such testing and
laboratory analysis as are necessary to
carry out monitoring under the plan.
‘‘(D) MONITORING RESULTS.—Each public
water system that conducts monitoring of un-
regulated contaminants pursuant to this para-
100
graph shall provide the results of the monitor-
ing to the primary enforcement authority for
the system.
‘‘(E) NOTIFICATION.—Notification of the
availability of the results of monitoring pro-
grams required under paragraph (2)(A) shall be
given to the persons served by the system and
the Administrator.
‘‘(F) WAIVER OF MONITORING REQUIRE-
MENT.—The Administrator shall waive the re-
quirement for monitoring for a contaminant
under this paragraph in a State, if the State
demonstrates that the criteria for listing the
contaminant do not apply in that State.
‘‘(G) ANALYTICAL METHODS.—The State
may use screening methods approved by the
Administrator under subsection (g) in lieu of
monitoring for particular contaminants under
this paragraph.
‘‘(H) AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appro-
priated 
to 
carry 
out 
this 
paragraph
$10,000,000 for each of the fiscal years 1997
through 2003.’’.
101
(d) SCREENING METHODS.—Section 1445 (42 U.S.C.
300j–4) is amended by adding the following after sub-
section (h):
‘‘(i) SCREENING
METHODS.—The Administrator
shall review new analytical methods to screen for regulated
contaminants and may approve such methods as are more
accurate or cost-effective than established reference meth-
ods for use in compliance monitoring.’’.
SEC. 305. OCCURRENCE DATA BASE.
Section 1445 is amended by adding the following new
subsection after subsection (f):
‘‘(g) NATIONAL DRINKING WATER OCCURRENCE
DATA BASE.—
‘‘(1) IN
GENERAL.—Not later than 3 years
after the date of enactment of the Safe Drinking
Water Act Amendments of 1996, the Administrator
shall assemble and maintain a national drinking
water occurrence data base, using information on
the occurrence of both regulated and unregulated
contaminants in public water systems obtained
under subsection (a)(1)(A) or subsection (a)(2) and
reliable information from other public and private
sources.
‘‘(2) PUBLIC INPUT.—In establishing the occur-
rence data base, the Administrator shall solicit rec-
102
ommendations from the Science Advisory Board, the
States, and other interested parties concerning the
development and maintenance of a national drinking
water occurrence data base, including such issues as
the structure and design of the data base, data input
parameters and requirements, and the use and inter-
pretation of data.
‘‘(3) USE.—The data shall be used by the Ad-
ministrator in making determinations under section
1412(b)(1) with respect to the occurrence of a con-
taminant in drinking water at a level of public
health concern.
‘‘(4) PUBLIC
RECOMMENDATIONS.—The Ad-
ministrator shall periodically solicit recommenda-
tions from the appropriate officials of the National
Academy of Sciences and the States, and any person
may submit recommendations to the Administrator,
with respect to contaminants that should be included
in the national drinking water occurrence data base,
including recommendations with respect to addi-
tional unregulated contaminants that should be list-
ed under subsection (a)(2). Any recommendation
submitted under this clause shall be accompanied by
reasonable documentation that—
103
‘‘(A) the contaminant occurs or is likely to
occur in drinking water; and
‘‘(B) the contaminant poses a risk to pub-
lic health.
‘‘(5) PUBLIC AVAILABILITY.—The information
from the data base shall be available to the public
in readily accessible form.
‘‘(6) REGULATED
CONTAMINANTS.—With re-
spect to each contaminant for which a national pri-
mary drinking water regulation has been established,
the data base shall include information on the detec-
tion of the contaminant at a quantifiable level in
public water systems (including detection of the con-
taminant at levels not constituting a violation of the
maximum contaminant level for the contaminant).
‘‘(7) UNREGULATED CONTAMINANTS.—With re-
spect to contaminants for which a national primary
drinking water regulation has not been established,
the data base shall include—
‘‘(A) monitoring information collected by
public water systems that serve a population of
more than 3,300, as required by the Adminis-
trator under subsection (a);
‘‘(B) monitoring information collected by
the States from a representative sampling of
104
public water systems that serve a population of
3,300 or fewer; and
‘‘(C) other reliable and appropriate mon-
itoring information on the occurrence of the
contaminants in public water systems that is
available to the Administrator.’’.
SEC. 306. CITIZENS SUITS.
Section 1449 (42 U.S.C. 300j-8) is amended by in-
serting ‘‘, or a State’’ after ‘‘prosecuting a civil action in
a court of the United States’’ in subsection (b)(1)(B).
SEC. 307. WHISTLE BLOWER.
(a) WHISTLE BLOWER.—Section 1450(i) is amended
as follows:
(1) Amend paragraph (2)(A) by striking ‘‘30
days’’ and inserting ‘‘180 days’’ and by inserting be-
fore the period at the end ‘‘and the Environmental
Protection Agency’’.
(2) Amend paragraph (2)(B)(i) by inserting be-
fore the last sentence the following: ‘‘Upon conclu-
sion of such hearing and the issuance of a rec-
ommended decision that the complaint has merit,
the Secretary shall issue a preliminary order provid-
ing the relief prescribed in clause (ii), but may not
order compensatory damages pending a final
order.’’.
105
(3) Amend paragraph (2)(B)(ii) by inserting
‘‘and’’ before ‘‘(III)’’ and by striking ‘‘compensatory
damages, and (IV) where appropriate, exemplary
damages’’ and inserting ‘‘and the Secretary may
order such person to provide compensatory damages
to the complainant’’.
(4) Redesignate paragraphs (3), (4), (5), and
(6) as paragraphs (4), (5), (6), and (7), respectively,
and insert after paragraph (2) the following:
‘‘(3)(A) The Secretary shall dismiss a complaint filed
under paragraph (1), and shall not conduct the investiga-
tion required under paragraph (2), unless the complainant
has made a prima facie showing that any behavior de-
scribed in subparagraphs (A) through (C) of paragraph
(1) was a contributing factor in the unfavorable personnel
action alleged in the complaint.
‘‘(B) Notwithstanding a finding by the Secretary that
the complaint has made the showing required by para-
graph (1)(A), no investigation required under paragraph
(2) shall be conducted if the employer demonstrates, by
clear and convincing evidence, that it would have taken
the same unfavorable personnel action in the absence of
such behavior.
‘‘(C) The Secretary may determine that a violation
of paragraph (1) has occurred only if the complainant has
106
demonstrated that any behavior described in subpara-
graphs (A) through (C) of paragraph (1) was a contribut-
ing factor in the unfavorable personnel action alleged in
the complaint.
‘‘(D) Relief may not be ordered under paragraph (2)
if the employer demonstrates clear and convincing evi-
dence that it would have taken the same unfavorable per-
sonnel action in the absence of such behavior.’’.
(5) Add at the end the following:
‘‘(8) This subsection may not be construed to expand,
diminish, or otherwise affect any right otherwise available
to an employee under Federal or State law to reduce the
employee’s discharge or other discriminatory action taken
by the employer against the employee. The provisions of
this subsection shall be prominently posted in any place
of employment to which this subsection applies.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply to claims filed under section
1450(i) of the Public Health Service Act on or after the
date of the enactment of this Act.
SEC. 308. STATE REVOLVING FUNDS.
(a) STATE REVOLVING FUNDS.—Part E (42 U.S.C.
300j et seq.) is amended by adding the following new sec-
tion after section 1451:
107
‘‘SEC. 1452. STATE REVOLVING FUNDS.
‘‘(a) GENERAL AUTHORITY.—
‘‘(1) GRANTS TO STATES TO ESTABLISH RE-
VOLVING
FUNDS.—(A) The Administrator shall
enter into agreements with eligible States to make
capitalization grants, including letters of credit, to
the States under this subsection solely to further the
health protection objectives of this title, promote the
efficient use of fund resources, and for such other
purposes as are specified in this title.
‘‘(B) To be eligible to receive a capitalization
grant under this section, a State shall establish a
drinking water treatment revolving loan fund and
comply with the other requirements of this section.
‘‘(C) Such a grant to a State shall be deposited
in the drinking water treatment revolving fund es-
tablished by the State, except as otherwise provided
in this section and in other provisions of this title.
No portion of funds authorized to be used for other
purposes in this section or authorized by other provi-
sions of this title to be used for other purposes spec-
ified in this title shall be deposited in any State re-
volving fund.
‘‘(D) Such a grant to a State shall be available
to the State for obligation during the fiscal year for
which the funds are authorized and during the fol-
108
lowing fiscal year, except that grants made available
from funds provided in Public Law 103–327, Public
Law 103–124, and Public Law 104–134 shall be
available for obligation during each of the fiscal
years 1997 and 1998.
‘‘(E) Except as otherwise provided in this sec-
tion, funds made available to carry out this part
shall be allotted to States that have entered into an
agreement pursuant to this section in accordance
with—
‘‘(i) for each of fiscal years 1995 through
1997, a formula that is the same as the for-
mula used to distribute public water system su-
pervision grant funds under section 1443 in fis-
cal year 1995, except that the minimum propor-
tionate share established in the formula shall be
1 percent of available funds and the formula
shall be adjusted to include a minimum propor-
tionate share for the State of Wyoming; and
‘‘(ii) for fiscal year 1998 and each subse-
quent fiscal year, a formula that allocates to
each State the proportional share of the State
needs identified in the most recent survey con-
ducted pursuant to section 1452(h), except that
the minimum proportionate share provided to
109
each State shall be the same as the minimum
proportionate share provided under clause (i).
‘‘(F) Such grants not obligated by the last day
of the period for which the grants are available shall
be reallotted according to the appropriate criteria set
forth in subparagraph (E).
‘‘(G) The State allotment for a State not exer-
cising primary enforcement responsibility for public
water systems shall not be deposited in any such
fund but shall be allotted by the Administrator as
follows: 20 percent of such allotment shall be avail-
able to the Administrator as needed to exercise pri-
mary enforcement responsibility under this title in
such State and the remainder shall be reallotted to
States exercising primary enforcement responsibility
for public water systems for deposit in such funds.
Whenever the Administrator makes a final deter-
mination pursuant to section 1413(b) that the re-
quirements of section 1413(a) are no longer being
met by a State, additional grants for such State
under this title shall be immediately terminated by
the Administrator. This subparagraph shall not
apply to any State not exercising primary enforce-
ment responsibility for public water systems as of
110
the date of enactment of the Safe Drinking Water
Amendments of 1996.
‘‘(H)(i) Beginning in fiscal year 1999, the Ad-
ministrator shall withhold 20 percent of each cap-
italization grant made pursuant to this section to a
State unless the State has met the requirements of
section 1419 (relating to capacity development).
‘‘(ii) The Administrator shall withhold 20 per-
cent of each capitalization grant made pursuant to
this section unless the State has met the require-
ments of subsection (f) of section 1442 (relating to
operator certification).
‘‘(iii) All funds withheld by the Administrator
pursuant to clause (i) shall be reallotted by the Ad-
ministrator on the basis of the same ratio as is ap-
plicable to funds allotted under subparagraph (E).
None of the funds reallotted by the Administrator
pursuant to this paragraph shall be allotted to a
State unless the State has met the requirements of
section 1419 (relating to capacity development).
‘‘(iv) All funds withheld by the Administrator
pursuant to clause (ii) shall be reallotted by the Ad-
ministrator on the basis of the same ratio as appli-
cable to funds allotted under subparagraph (E).
None of the funds reallotted by the Administrator
111
pursuant to this paragraph shall be allotted to a
State unless the State has met the requirements of
subsection (f) of section 1442 (relating to operator
certification).
‘‘(2) USE OF FUNDS.—Except as otherwise au-
thorized by this title, amounts deposited in such re-
volving funds, including loan repayments and inter-
est earned on such amounts, shall be used only for
providing loans, loan guarantees, or as a source of
reserve and security for leveraged loans, the pro-
ceeds of which are deposited in a State revolving
fund established under paragraph (1), or other fi-
nancial assistance authorized under this section to
community water systems and nonprofit noncommu-
nity water systems, other than systems owned by
Federal agencies. Such financial assistance may be
used by a public water system only for expenditures
(not including monitoring, operation, and mainte-
nance expenditures) of a type or category which the
Administrator has determined, through guidance,
will facilitate compliance with national primary
drinking water regulations applicable to such system
under section 1412 or otherwise significantly further
the health protection objectives of this title. Such
funds may also be used to provide loans to a system
112
referred to in section 1401(4)(B) for the purpose of
providing 
the 
treatment 
described 
in 
section
1401(4)(B)(i)(III). Such funds shall not be used for
the acquisition of real property or interests therein,
unless such acquisition is integral to a project au-
thorized by this paragraph and the purchase is from
a willing seller. Of the amount credited to any re-
volving fund established under this section in any
fiscal year, 15 percent shall be available solely for
providing loan assistance to public water systems
which regularly serve fewer than 10,000 persons.
‘‘(3) LIMITATION.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), no assistance under this
part shall be provided to a public water system
that—
‘‘(i) does not have the technical, man-
agerial, and financial capability to ensure
compliance with the requirements of this
title; or
‘‘(ii) is in significant noncompliance
with any requirement of a national pri-
mary drinking water regulation or vari-
ance.
113
‘‘(B) RESTRUCTURING.—A public water
system described in subparagraph (A) may re-
ceive assistance under this part if—
‘‘(i) the owner or operator of the sys-
tem agrees to undertake feasible and ap-
propriate changes in operations (including
ownership, management, accounting, rates,
maintenance, 
consolidation, 
alternative
water supply, or other procedures) if the
State determines that such measures are
necessary to ensure that the system has
the technical, managerial, and financial ca-
pability to comply with the requirements of
this title over the long term; and
‘‘(ii) the use of the assistance will en-
sure compliance.
‘‘(b) INTENDED USE PLANS.—
‘‘(1) IN GENERAL.—After providing for public
review and comment, each State that has entered
into a capitalization agreement pursuant to this part
shall annually prepare a plan that identifies the in-
tended uses of the amounts available to the State
loan fund of the State.
‘‘(2) CONTENTS.—An intended use plan shall
include—
114
‘‘(A) a list of the projects to be assisted in
the first fiscal year that begins after the date
of the plan, including a description of the
project, the expected terms of financial assist-
ance, and the size of the community served;
‘‘(B) the criteria and methods established
for the distribution of funds; and
‘‘(C) a description of the financial status of
the State loan fund and the short-term and
long-term goals of the State loan fund.
‘‘(3) USE OF FUNDS.—
‘‘(A) IN GENERAL.—An intended use plan
shall provide, to the maximum extent prac-
ticable, that priority for the use of funds be
given to projects that—
‘‘(i) address the most serious risk to
human health;
‘‘(ii) are necessary to ensure compli-
ance with the requirements of this title (in-
cluding requirements for filtration); and
‘‘(iii) assist systems most in need on
a per household basis according to State
affordability criteria.
‘‘(B) LIST
OF
PROJECTS.—Each State
shall, after notice and opportunity for public
115
comment, publish and periodically update a list
of projects in the State that are eligible for as-
sistance under this part, including the priority
assigned to each project and, to the extent
known, the expected funding schedule for each
project.
‘‘(c) FUND MANAGEMENT.—Each State revolving
fund under this section shall be established, maintained,
and credited with repayments and interest. The fund cor-
pus shall be available in perpetuity for providing financial
assistance under this section. To the extent amounts in
each such fund are not required for current obligation or
expenditure, such amounts shall be invested in interest
bearing obligations of the State or of the United States.
‘‘(d) ASSISTANCE
FOR DISADVANTAGED COMMU-
NITIES.—
‘‘(1) LOAN
SUBSIDY.—Notwithstanding any
other provision of this section, in any case in which
the State makes a loan pursuant to section (a)(2) to
a disadvantaged community or to a community that
the State expects to become a disadvantaged com-
munity as the result of a proposed project, the State
may provide additional subsidization (including for-
giveness of principal).
116
‘‘(2) TOTAL AMOUNT OF SUBSIDIES.—For each
fiscal year, the total amount of loan subsidies made
by a State pursuant to paragraph (1) may not ex-
ceed 30 percent of the amount of the capitalization
grant received by the State for the year.
‘‘(3) DEFINITION OF DISADVANTAGED COMMU-
NITY.—In this subsection, the term ‘disadvantaged
community’ means the service area of a public water
system that meets affordability criteria established
after public review and comment by the State in
which the public water system is located. The Ad-
ministrator may publish information to assist States
in establishing affordability criteria.
‘‘(e) STATE CONTRIBUTION.—Each agreement under
subsection (a) shall require that the State deposit in the
State revolving fund from State moneys an amount equal
to at least 20 percent of the total amount of the grant
to be made to the State on or before the date on which
the grant payment is made to the State, except that a
State shall not be required to deposit such amount into
the fund prior to the date on which each grant payment
is made for fiscal years 1994, 1995, 1996, and 1997 if
such State deposits the State contribution amount into the
State fund prior to September 30, 1998.
117
‘‘(f) COMBINED FINANCIAL ADMINISTRATION.—Not-
withstanding subsection (c), a State may (as a convenience
and to avoid unnecessary administrative costs) combine,
in accordance with State law, the financial administration
of a revolving fund established under this section with the
financial administration of any other revolving fund estab-
lished by the State if otherwise not prohibited by the law
under which such revolving fund was established and if
the Administrator determines that—
‘‘(1) the grants under this section, together
with loan repayments and interest, will be separately
accounted for and used solely for the purposes speci-
fied in subsection (a); and
‘‘(2) the authority to establish assistance prior-
ities and carry out oversight and related activities
(other than financial administration) with respect to
such assistance remains with the State agency hav-
ing primary responsibility for administration of the
State program under section 1413.
‘‘(g) ADMINISTRATION.—(1) Each State may annu-
ally use up to 4 percent of the funds allotted to the State
under this section to cover the reasonable costs of adminis-
tration of the programs under this section, including the
recovery of reasonable costs expended to establish such a
fund which are incurred after the date of enactment of
118
this section, and to provide technical assistance to public
water systems within the State. For fiscal year 1995 and
each fiscal year thereafter, each State with primary en-
forcement responsibility for public water systems within
that State may use up to an additional 10 percent of the
funds allotted to the State under this section—
‘‘(A) for public water system supervision pro-
grams under section 1443(a);
‘‘(B) to administer or provide technical assist-
ance through source water protection programs;
‘‘(C) to develop and implement a capacity devel-
opment strategy under section 1419(c); and
‘‘(D) for an operator certification program for
purposes of meeting the requirements of section
1442(f)
if the State matches such expenditures with at least an
equal amount of State funds. At least half of such match
must be additional to the amount expended by the State
for public water supervision in fiscal year 1993. An addi-
tional 1 percent of the funds annually allotted to the State
under this section shall be used by each State to provide
technical assistance to public water systems in such State.
Funds utilized under section 1452(g)(1)(B) shall not be
used for enforcement actions or for purposes which do not
facilitate compliance with national primary drinking water