(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on January 1, 1994.
SEC. 202. EXCISE TAX ON COMMERCIAL AND INDUSTRIAL
WATER USE.
(a) IN GENERAL.—Chapter 36 of the Internal Reve-
nue Code of 1986 (relating to certain other excise taxes)
is amended by inserting after subchapter B the following
new subchapter:
‘‘Subchapter C. Certain Nonresidential Uses
of Water
‘‘Sec. 4476. Imposition of tax.
‘‘Sec. 4477. Definitions and special rules.
‘‘SEC. 4476. IMPOSITION OF TAX.
‘‘(a) IN GENERAL.—There is hereby imposed a tax
of 1.95 cents on each thousand gallons of water sold for
use or used by the ultimate consumer in a taxable use.
‘‘(b) LIABILITY FOR TAX.—
‘‘(1) IN GENERAL.—The tax imposed by this
section shall be paid by the person using the water
in a taxable use.
‘‘(2) COLLECTION OF TAX BY UTILITIES.—In
the case of water which is sold to the person re-
quired to pay the tax imposed by this section by a
water utility, such utility shall collect such tax from
such person and remit it to the Secretary.
‘‘SEC. 4477. DEFINITIONS AND SPECIAL RULES.
‘‘(a) TAXABLE USE.—For purposes of this sub-
chapter—
‘‘(1) IN
GENERAL.—The term ‘taxable use’
means any use of water in the United States (as de-
fined in section 4612(a)(4)) other than—
‘‘(A) any residential use,
‘‘(B) any use on a farm for farming pur-
poses (determined under rules similar to the
rules of section 6420(c)),
‘‘(C) any use at a hydroelectric generating
facility in the generation of electricity,
‘‘(D) any use by United States, any State
or political subdivision thereof, the District of
Columbia, any possession of the United States,
or by any agency or instrumentality of any of
the foregoing.
‘‘(b) WATER UTILITY.—For purposes of this sub-
chapter, water shall be treated as sold to any person by
a water utility if such water is sold by—
‘‘(1) any governmental unit, or
‘‘(2) any person engaged in the trade or busi-
ness of furnishing water if the rates for the furnish-
ing or sale of the water have been established or ap-
proved by a State or political subdivision thereof, by
an agency or instrumentality of the United States,
or by a public service or public utility commission or
other similar body of a State or political subdivision.
‘‘(c) FRACTIONAL PARTS.—In the case of a fraction
of 1,000 gallons, the tax imposed by this subchapter shall
be the same fraction of the amount of such tax imposed
on 1,000 gallons.
‘‘(d) DISPOSITIONS OF REVENUES FROM PUERTO
RICO AND THE VIRGIN ISLANDS.—The provisions of sub-
sections (a)(3) and (b)(3) of section 7652 shall not apply
to any tax imposed by this subchapter.’’
(b) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 36 of such Code is amended by in-
serting after the item relating to subchapter B the follow-
ing new item:
‘‘Subchapter C. Certain nonresidential uses of water.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on January 1, 1994.
SEC. 203. CLEAN WATER TRUST FUND.
(a) IN GENERAL.—Subchapter A of chapter 98 of the
Internal Revenue Code of 1986 (relating to trust fund
code) is amended by adding at the end thereof the follow-
ing new section:
‘‘SEC. 9512. CLEAN WATER TRUST FUND.
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund
to be known as the ‘Clean Water Trust Fund’, consisting
of such amounts as may be appropriated or credited to
such Trust Fund as provided in this section or section
9602(b).
‘‘(b) TRANSFERS TO TRUST FUND.—
‘‘(1) IN GENERAL.—There are hereby appro-
priated to the Clean Water Trust Fund amounts
equivalent to the net revenues received in the Treas-
ury from the taxes imposed by—
‘‘(A) section 4476 (relating to certain
nonresidential uses of water),
‘‘(B) section 4691 (relating to discharges
of chemical pollutants), and
‘‘(C) section 4694 (relating to fertilizer,
pesticides, and animal feed).
‘‘(2) NET REVENUES.—For purposes of para-
graph (1), the term ‘net revenues’ means the
amount estimated by the Secretary based on the ex-
cess of—
‘‘(A) the taxes received in the Treasury
under sections 4476, 4691, and 4694, over
‘‘(B) the decrease in the tax imposed by
chapter 1 resulting from such taxes.
‘‘(c) EXPENDITURES FROM TRUST FUND.—Amounts
in the Clean Water Trust Fund shall be available only for
purposes of making expenditures to carry out title VI of
the Federal Water Pollution Control Act.
(b) CLERICAL AMENDMENT.—The table of sections
for such subchapter A is amended by adding at the end
thereof the following new item:
‘‘Sec. 9512. Clean Water Trust Fund.’’
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