‘‘(ii) TRANSITION RULE.—In any case 
in which a discharge is subject to a judicial 
order or consent decree, as of the date of 
enactment of this subsection, resolving an 
enforcement action under this Act, any 
schedule of compliance issued pursuant to 
an authorization in a State water quality 
standard shall not revise or otherwise af-
fect a schedule of compliance in that order 
or decree, unless the order or decree is 
modified by agreement of the parties and 
the court. 
‘‘(5) INTEGRATED
PLAN
AND
PERMIT
DECI-
SIONMAKING.— 
‘‘(A) APPROVAL
OF
INTEGRATED
PLANS 
AND PERMITS.—Integrated plans and permits 
incorporating such a plan developed under this 
subsection are subject to the approval of the 
Administrator (or an authorized State, in the 
case of a permit program approved under sub-
section (b)), which shall not be unreasonably 
withheld. 
‘‘(B) RENEWAL
OF
INTEGRATED
PER-
MIT.— 
VerDate Sep 11 2014 
04:31 Jan 24, 2017
Jkt 069200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H465.IH
H465
smartinez on DSK3GLQ082PROD with BILLS
‘‘(i) IN GENERAL.—At the time of re-
newal of a municipality’s integrated permit 
issued pursuant to this subsection, the Ad-
ministrator (or an authorized State, in the 
case of a permit program approved under 
subsection (b)) shall review the schedule of 
compliance and other requirements in-
cluded in the existing permit to determine 
whether the requirements should be contin-
ued or modified. 
‘‘(ii) REVIEW CONSIDERATIONS.—The 
permit review shall assess whether changed 
circumstances warrant adjusting the ac-
tions to be taken by the municipality, in-
cluding whether— 
‘‘(I) the effluent limitations and 
other control measures in the current 
permit are expected to result in the 
municipality complying with the re-
quirements of this Act within the 
timeframes provided in the schedule 
of compliance; 
‘‘(II) the effluent limitations and 
other control measures continue to be 
technically feasible and economically 
VerDate Sep 11 2014 
04:31 Jan 24, 2017
Jkt 069200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H465.IH
H465
smartinez on DSK3GLQ082PROD with BILLS
affordable under paragraphs (6) and 
(7); 
‘‘(III) new innovative treatment 
approaches are available that provide 
greater 
environmental 
and 
public 
health benefits or have fewer adverse 
environmental impacts for the re-
sources expended; 
‘‘(IV) the municipality is subject 
to additional regulatory requirements; 
‘‘(V) the municipality’s financial 
capability has changed; and 
‘‘(VI) reasonable progress has 
been achieved, as provided for under 
paragraph (4)(C), including meeting 
interim dates and milestones, and if 
not, the reasons for such failure to 
achieve reasonable progress. 
‘‘(iii) CONTINUATION
OF
REQUIRE-
MENTS IN RENEWED PERMIT.—The permit 
requirements in an existing permit shall be 
incorporated into the renewed permit, un-
less the Administrator (or the authorized 
State, in the case of a permit program ap-
proved under subsection (b)) determines 
VerDate Sep 11 2014 
04:31 Jan 24, 2017
Jkt 069200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H465.IH
H465
smartinez on DSK3GLQ082PROD with BILLS
that a requirement should be modified or 
removed to help the municipality comply 
with the requirements of this Act through 
the implementation of technically feasible 
and economically affordable effluent limita-
tions and other control measures. 
‘‘(C) TRANSPARENCY
OF
PERMIT
DECI-
SIONS.—Prior to approving a plan developed 
under this subsection and issuing or renewing a 
permit incorporating such a plan pursuant to 
this subsection, or denying a request from a 
municipality for approval of a plan and issuance 
or renewal of a permit incorporating such a 
plan under this subsection, the Administrator 
(or an authorized State, in the case of a permit 
program approved under subsection (b)) shall— 
‘‘(i) prepare a report explaining the 
rationale for the proposed decision; and 
‘‘(ii) make the report publicly avail-
able for review and comment by the mu-
nicipality and other interested parties. 
‘‘(D) ADMINISTRATOR REVIEW OF STATE 
PERMITTING
DECISIONS.—When the Adminis-
trator provides his or her views to a State con-
cerning a proposed integrated plan or permit 
VerDate Sep 11 2014 
04:31 Jan 24, 2017
Jkt 069200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H465.IH
H465
smartinez on DSK3GLQ082PROD with BILLS
incorporating such a plan that is to be issued 
by the State pursuant to this subsection, the 
Administrator shall make those views available 
in a written document that is publicly available 
for review and comment by the municipality 
and other interested parties. 
‘‘(6) TECHNICAL
FEASIBILITY
CRITERIA.—In 
making a determination of technical feasibility under 
this subsection, the Administrator (or the State) 
shall consider— 
‘‘(A) naturally occurring pollutant con-
centrations; 
‘‘(B) natural, ephemeral, intermittent, or 
low flow conditions or water levels; 
‘‘(C) human-caused conditions or sources 
of pollution that cannot be remedied or would 
cause more environmental damage to correct 
than to leave in place; 
‘‘(D) dams, diversions, or other types of 
hydrologic modifications that make it not fea-
sible to restore the water body to its original 
condition or to operate such modification in a 
way that would comply with the requirements of 
this Act; and 
VerDate Sep 11 2014 
04:31 Jan 24, 2017
Jkt 069200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H465.IH
H465
smartinez on DSK3GLQ082PROD with BILLS
‘‘(E) physical conditions related to the nat-
ural features of the water body, such as the 
lack of a proper substrate, cover, flow, depth, 
pools, riffles, and the like, unrelated to water 
quality, that may preclude compliance with the 
requirements of this Act. 
‘‘(7) ECONOMIC AFFORDABILITY CRITERIA.— 
‘‘(A) IN
GENERAL.—In making a deter-
mination of economic affordability under this 
subsection, the Administrator (or the author-
ized State, in the case of a permit program ap-
proved under subsection (b)) shall consider pre-
existing and potential future costs, including of 
debt service, to the municipality for imple-
menting effluent limitations and other control 
measures necessary to comply with the require-
ments of this Act would result in substantial 
and widespread economic and social impact in 
the service area of the municipality. 
‘‘(B) BASIS FOR DETERMINING IMPACTS.— 
In determining whether the economic and social 
impacts of preexisting and potential future 
costs under subparagraph (A) are substantial 
and widespread, the Administrator (or the 
State) shall consider the financial condition 
VerDate Sep 11 2014 
04:31 Jan 24, 2017
Jkt 069200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H465.IH
H465
smartinez on DSK3GLQ082PROD with BILLS
‘‘(vi) the ability of the municipality to 
incur more debt, including its ability to 
issue, and find a market for, additional 
municipal bonds; 
‘‘(vii) whether the debt incurred to 
implement the effluent limitations and 
other control measures has or will result in 
a lowering of the municipality’s bond rat-
ing; 
‘‘(viii) whether the municipality has 
limited legal authority to pass increased 
costs through to ratepayers and increased 
costs of water quality programs must be 
paid from its general fund; 
‘‘(ix) the legally adopted rate struc-
ture for provision of water- and waste-
water-related services in the service area in 
effect at the time that a determination of 
economic affordability is made; 
‘‘(x) the cumulative costs paid by per-
sons in the service area to an entity for 
provision of water- and wastewater-related 
services; and 
‘‘(xi) other information determined to 
be relevant by the Administrator (or the 
VerDate Sep 11 2014 
04:31 Jan 24, 2017
Jkt 069200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H465.IH
H465
smartinez on DSK3GLQ082PROD with BILLS
authorized State, in the case of a permit 
program approved under subsection (b)), 
including whether the municipality is lo-
cated in an area eligible for assistance 
under section 201 or 209 of the Public 
Works and Development Act of 1965 (42 
U.S.C. 3141, 3149), as described in sec-
tion 301 of that Act (42 U.S.C. 3161). 
‘‘(C) CUMULATIVE
COSTS
FOR
WATER- 
AND WASTEWATER-RELATED SERVICES.— 
‘‘(i) INCLUSIONS.—Cumulative costs 
for the provision of water- and wastewater- 
related services to be considered under 
subparagraph (B)(xi) shall include the mu-
nicipality’s preexisting and reasonably an-
ticipated future costs paid by a person, in-
cluding through taxes and fees, for the 
municipality’s cost of— 
‘‘(I) compliance with Federal and 
State water- and wastewater-related 
and other regulatory requirements; 
‘‘(II) operation and maintenance 
of water and wastewater systems; 
‘‘(III) asset management; and 
VerDate Sep 11 2014 
04:31 Jan 24, 2017
Jkt 069200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H465.IH
H465
smartinez on DSK3GLQ082PROD with BILLS
‘‘(IV) servicing any debt incurred 
or to be incurred to finance the other 
costs referred to in this clause. 
‘‘(ii) SUBSTANTIAL IMPACT.—In mak-
ing a determination of economic impact 
under subparagraph (B), the Adminis-
trator (or the State) shall consider the im-
pact on a person to be substantial if the 
cumulative costs paid by the person ex-
ceeds, or is projected to exceed, 2 percent 
of the person’s annual household income. 
‘‘(iii) WIDESPREAD IMPACT.—In mak-
ing a determination of economic impact 
under subparagraph (B), the Adminis-
trator (or the State) shall consider the im-
pact to be widespread if 20 percent or 
more of persons in the service area of the 
municipality face a substantial impact de-
scribed in clause (ii). 
‘‘(D) 
ADDITIONAL
REQUIREMENTS.—In 
making a determination of economic afford-
ability under this subsection, the Administrator 
(or the State) shall not base the determination 
on— 
VerDate Sep 11 2014 
04:31 Jan 24, 2017
Jkt 069200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H465.IH
H465
smartinez on DSK3GLQ082PROD with BILLS
‘‘(i) median household income in the 
service area of the municipality; or 
‘‘(ii) an expected minimum level of ex-
penditure on the provision of water and 
wastewater services by a municipality. 
‘‘(8) FLEXIBILITY.— 
‘‘(A) IN GENERAL.—Nothing in this sub-
section reduces or eliminates any flexibility 
available under this Act, including the authority 
of a State to— 
‘‘(i) revise a water quality standard 
after a use attainability analysis under sec-
tion 131.10(g) of title 40, Code of Federal 
Regulations (as in effect on the date of en-
actment of this subsection); or 
‘‘(ii) adopt a water quality standards 
variance under section 131.14 of title 40, 
Code of Federal Regulations (as in effect 
on the date of enactment of this sub-
section). 
‘‘(B) APPROVALS.—Such a revision of a 
standard or adoption of a variance by a State 
under subparagraph (A)(i) is subject to the ap-
proval of the Administrator under section 
VerDate Sep 11 2014 
04:31 Jan 24, 2017
Jkt 069200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H465.IH
H465
smartinez on DSK3GLQ082PROD with BILLS
303(c), which shall not be unreasonably with-
held.’’. 
SEC. 3. UPDATING FINANCIAL CAPABILITY ASSESSMENT 
GUIDANCE. 
(a) IN GENERAL.— 
(1) UPDATE.—Not later than 15 months after 
the date of enactment of this Act, the Administrator 
shall update the financial capability assessment 
guidance published by the Administrator entitled 
‘‘Combined Sewer Overflows—Guidance for Finan-
cial Capability Assessment and Schedule Develop-
ment’’ (EPA 832–B–97–004), dated February 1997. 
(2) SCOPE.—In updating the financial capa-
bility assessment guidance developed under subpara-
graph (1), the Administrator shall ensure that the 
guidance may be used for assessing the financial ca-
pability of municipalities to implement effluent limi-
tations and other control measures under the Fed-
eral Water Pollution Control Act. 
(b) REQUIREMENTS FOR UPDATING.—In updating 
the financial capability assessment guidance under sub-
section (a), the Administrator shall— 
(1) consult with, and solicit advice and rec-
ommendations from, representative municipal and 
State officials (including their representative re-
VerDate Sep 11 2014 
04:31 Jan 24, 2017
Jkt 069200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H465.IH
H465
smartinez on DSK3GLQ082PROD with BILLS
gional or national organizations), stakeholders, and 
other interested parties regarding how to assess the 
financial capability of municipalities to implement 
effluent limitations and other control measures 
under the Federal Water Pollution Control Act; 
(2) ensure transparency in the consultation 
process, including promptly making accessible to the 
public all communications, records, and other docu-
ments of all meetings that are part of the consulta-
tion process; 
(3) ensure that the updated guidance takes into 
consideration relevant studies, reports, and other in-
formation related to assessing the financial capa-
bility of municipalities to implement effluent limita-
tions and other control measures, including— 
(A) the reports of recommendations to the 
Environmental Protection Agency from the En-
vironmental Financial Advisory Board related 
to financial capability assessments of munici-
palities; and 
(B) the memorandum of the Environ-
mental Protection Agency entitled ‘‘Financial 
Capability Assessment Framework for Munic-
ipal Clean Water Act Requirements’’, dated No-
vember 24, 2014, and the accompanying guid-
VerDate Sep 11 2014 
04:31 Jan 24, 2017
Jkt 069200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H465.IH
H465
smartinez on DSK3GLQ082PROD with BILLS
ance entitled ‘‘Financial Capability Assessment 
Framework’’, dated November 24, 2014; 
(4) ensure the evaluations by the Administrator 
of financial capability assessment and schedule of 
compliance development under subsection (s) of sec-
tion 402 of the Federal Water Pollution Control Act 
reflect the economic affordability criteria described 
in subsection (s)(7) of that section; 
(5) ensure the updated guidance provides a con-
sistent reference point to aid parties in negotiating 
reasonable and effective schedules for implementing 
effluent limitations and other control measures 
under the Federal Water Pollution Control Act; 
(6) publish in the Federal Register proposed 
updated financial capability assessment guidance 
under this section, and provide a period for public 
comment of not less than 60 days; 
(7) prepare final updated financial capability 
assessment guidance, taking into account— 
(A) the advice and recommendations ob-
tained from the municipal and State officials 
(including their representative regional or na-
tional organizations), stakeholders, and other 
interested parties; and 
VerDate Sep 11 2014 
04:31 Jan 24, 2017
Jkt 069200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H465.IH
H465
smartinez on DSK3GLQ082PROD with BILLS
(B) the public comments received during 
the public comment period; and 
(8) publish in the Federal Register, and submit 
to the Committee on Transportation and Infrastruc-
ture of the House of Representatives and the Com-
mittee on Environment and Public Works of the 
Senate, the final updated financial capability assess-
ment guidance. 
SEC. 4. INTEGRATED PERMIT PILOT PROJECTS. 
(a) IN GENERAL.—In the first 5 fiscal years begin-
ning after the date of enactment of this Act, the Adminis-
trator, in coordination with appropriate State, local, and 
regional authorities, shall work cooperatively with, and fa-
cilitate the efforts of, not fewer than 15 municipalities to 
develop and implement integrated plans and permits to 
meet the requirements of the Federal Water Pollution 
Control Act (33 U.S.C. 1342) in a manner consistent with 
section 402(s) of that Act. 
(b) SELECTION OF MUNICIPALITIES.— 
(1) ELIGIBILITY OF MUNICIPALITIES.—A mu-
nicipality shall be eligible to participate in the pilot 
program under subsection (a) if the municipality— 
(A) has a permit issued under section 402 
of the Federal Water Pollution Control Act; or 
VerDate Sep 11 2014 
04:31 Jan 24, 2017
Jkt 069200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H465.IH
H465
smartinez on DSK3GLQ082PROD with BILLS
(B) is operating under an administrative 
order, administrative consent agreement, or ju-
dicial consent decree to comply with the re-
quirements of that Act. 
(2) FACTORS.—In selecting municipalities eligi-
ble under paragraph (1), the Administrator shall— 
(A) give priority to municipalities— 
(i) that are operating under an ad-
ministrative order, administrative consent 
agreement, or judicial consent decree to 
comply with the requirements of the Fed-
eral Water Pollution Control Act; 
(ii) having difficulties complying with 
the Federal Water Pollution Control Act, 
in addition to the municipalities described 
in clause (i); or 
(iii) that are affected by affordability 
constraints in planning and implementing 
effluent limitations and other control meas-
ures under the Federal Water Pollution 
Control Act to address wet weather dis-
charges or other water pollution issues 
from their wastewater and stormwater fa-
cilities; 
VerDate Sep 11 2014 
04:31 Jan 24, 2017
Jkt 069200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H465.IH
H465
smartinez on DSK3GLQ082PROD with BILLS
(B) give further priority to those munici-
palities under subparagraph (A)— 
(i) with knowledge and experience in 
developing integrated and adaptive clean 
water management practices, without re-
gard to the status of the municipality in 
the process of planning or implementing 
such practices; and 
(ii) that are seeking to develop and 
implement an integrated plan that includes 
adaptive 
approaches 
to 
account 
for 
changed or future uncertain circumstances; 
and 
(C) seek to select municipalities— 
(i) from different geographical regions 
of the United States; and 
(ii) of various population sizes. 
(3) ADDITIONAL AUTHORITY.—In carrying out 
this section, the Administrator may, with the agree-
ment of and in coordination with a municipality and 
the applicable State— 
(A) modify the implementation terms of an 
existing administrative order or administrative 
consent agreement, or seek to modify a judicial 
consent decree entered into by the municipality 
VerDate Sep 11 2014 
04:31 Jan 24, 2017
Jkt 069200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H465.IH
H465
smartinez on DSK3GLQ082PROD with BILLS
with the Administrator pursuant to the Federal 
Water Pollution Control Act; and 
(B) incorporate such modified implementa-
tion terms, including the municipality’s inte-
grated plan, into an integrated permit issued 
pursuant to section 402(s) of the Federal 
Water Pollution Control Act. 
(c) REPORT TO CONGRESS.—Not later than 1 year 
after the date of enactment of this Act, and each year 
thereafter for 5 years, the Administrator shall prepare and 
submit to the Committee on Transportation and Infra-
structure of the House of Representatives and the Com-
mittee on Environment and Public Works of the Senate 
a report on the implementation of this section and 
issuance of integrated permits pursuant to section 402(s) 
of the Federal Water Pollution Control Act, including— 
(1) identification of the municipalities selected 
under this section; 
(2) an evaluation of the specific outcomes 
achieved with respect to— 
(A) reducing the costs of complying with 
the requirements of the Federal Water Pollu-
tion Control Act for the municipalities selected 
under this section; and 
VerDate Sep 11 2014 
04:31 Jan 24, 2017
Jkt 069200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H465.IH
H465
smartinez on DSK3GLQ082PROD with BILLS
(B) making reasonable progress towards 
achieving the applicable water quality and 
human health objectives of the Federal Water 
Pollution Control Act; and 
(3) recommendations of any proposed legislative 
or administrative changes to improve the effective-
ness and efficiency of the integrated planning and 
permitting process under section 402(s) of the Fed-
eral Water Pollution Control Act. 
SEC. 5. DEFINITIONS. 
In this Act: 
(1) MUNICIPALITY.—The term ‘‘municipality’’ 
has the meaning given that term in section 502(4) 
of the Federal Water Pollution Control Act (33 
U.S.C. 1362(4)). 
(2) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency. 
Æ 
VerDate Sep 11 2014 
04:31 Jan 24, 2017
Jkt 069200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6301
E:\BILLS\H465.IH
H465
smartinez on DSK3GLQ082PROD with BILLS