I
107TH CONGRESS
1ST SESSION
H. R. 668
To amend the Federal Water Pollution Control Act to authorize appropria-
tions for State water pollution control revolving funds, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 14, 2001
Mrs. KELLY (for herself, Mrs. TAUSCHER, Mr. FILNER, Mrs. JOHNSON of
Connecticut, Mr. NEAL of Massachusetts, Mr. SWEENEY, Mrs. ROUKEMA,
Mr. CAPUANO, Mr. LAHOOD, Mr. SMITH of New Jersey, Mr. GILMAN,
Mr. WELLER, Mr. MCGOVERN, Mr. LARSEN
of Washington, Mr.
TIERNEY, and Mrs. THURMAN) introduced the following bill; which was
referred to the Committee on Transportation and Infrastructure
A BILL
To amend the Federal Water Pollution Control Act to au-
thorize appropriations for State water pollution control
revolving funds, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF FEDERAL
WATER POLLUTION CONTROL ACT.
(a) IN GENERAL.—This Act may be cited as the
‘‘Clean Water Infrastructure Financing Act of 2001’’.
(b) AMENDMENT OF FEDERAL WATER POLLUTION
CONTROL ACT.—Except as otherwise expressly provided,
whenever in this Act an amendment or repeal is expressed
in terms of an amendment to, or repeal of, a section or
other provision, the reference shall be considered to be
made to a section or other provision of the Federal Water
Pollution Control Act (33 U.S.C. 1251–1387).
SEC. 
2. 
GENERAL 
AUTHORITY 
FOR 
CAPITALIZATION
GRANTS.
Section 601(a) (33 U.S.C. 1381(a)) is amended by
striking ‘‘(1) for construction’’ and all that follows
through the period and inserting ‘‘to accomplish the pur-
poses of this Act.’’.
SEC. 3. CAPITALIZATION GRANTS AGREEMENTS.
(a) REQUIREMENTS FOR CONSTRUCTION OF TREAT-
MENT
WORKS.—Section 
602(b)(6) 
(33 
U.S.C.
1382(b)(6)) is amended—
(1) by striking ‘‘before fiscal year 1995’’; and
(2) by striking ‘‘201(b)’’ and all that follows
through ‘‘218’’ and inserting ‘‘211’’.
(b) GUIDANCE FOR SMALL SYSTEMS.—Section 602
(33 U.S.C. 1382) is amended by adding at the end the
following new subsection:
‘‘(c) GUIDANCE FOR SMALL SYSTEMS.—
‘‘(1) SIMPLIFIED PROCEDURES.—Not later than
1 year after the date of the enactment of this sub-
section, the Administrator shall assist the States in
establishing simplified procedures for small systems
to obtain assistance under this title.
‘‘(2) PUBLICATION
OF
MANUAL.—Not later
than 1 year after the date of the enactment of this
subsection, and after providing notice and oppor-
tunity for public comment, the Administrator shall
publish a manual to assist small systems in obtain-
ing assistance under this title and publish in the
Federal Register notice of the availability of the
manual.
‘‘(3) SMALL SYSTEM DEFINED.—For purposes
of this title, the term ‘small system’ means a system
for which a municipality or intermunicipal, inter-
state, or State agency seeks assistance under this
title and which serves a population of 20,000 or
less.’’.
SEC. 4. WATER POLLUTION CONTROL REVOLVING FUNDS.
(a) ACTIVITIES ELIGIBLE FOR ASSISTANCE.—Sec-
tion 603(c) (33 U.S.C. 1383(c)) is amended to read as
follows:
‘‘(c) ACTIVITIES ELIGIBLE FOR ASSISTANCE.—
‘‘(1) IN
GENERAL.—The amounts of funds
available to each State water pollution control re-
volving fund shall be used only for providing finan-
cial assistance to activities which have as a principal
benefit the improvement or protection of water qual-
ity of navigable waters to a municipality, intermunic-
ipal agency, interstate agency, State agency, or
other person. Such activities may include the fol-
lowing:
‘‘(A) Construction of a publicly owned
treatment works.
‘‘(B) Implementation of lake protection
programs and projects under section 314.
‘‘(C) Implementation of a management
program under section 319.
‘‘(D) Implementation of a conservation and
management plan under section 320.
‘‘(E) Restoration or protection of publicly
or privately owned riparian areas, including ac-
quisition of property rights.
‘‘(F) Implementation of measures to im-
prove the efficiency of public water use.
‘‘(G) Development and implementation of
plans by a public recipient to prevent water pol-
lution.
‘‘(H) Acquisition of lands necessary to
meet any mitigation requirements related to
construction of a publicly owned treatment
works.
‘‘(2) FUND
AMOUNTS.—The water pollution
control revolving fund of a State shall be established,
maintained, and credited with repayments, and the
fund balance shall be available in perpetuity for pro-
viding financial assistance described in paragraph
(1). Fees charged by a State to recipients of such
assistance may be deposited in the fund for the sole
purpose of financing the cost of administration of
this title.’’.
(b) EXTENDED REPAYMENT PERIOD FOR FINAN-
CIALLY DISTRESSED COMMUNITIES.—Section 603(d)(1)
(33 U.S.C. 1383(d)(1)) is amended—
(1) in subparagraph (A) by inserting after ‘‘20
years’’ the following: ‘‘or, in the case of a financially
distressed community, the lesser of 40 years or the
expected life of the project to be financed with the
proceeds of the loan’’; and
(2) in subparagraph (B) by striking ‘‘not later
than 20 years after project completion’’ and insert-
ing ‘‘upon the expiration of the term of the loan’’.
(c) LOAN
GUARANTEES.—Section 603(d)(5) (33
U.S.C. 1383(d)(5)) is amended to read as follows:
‘‘(5) to provide loan guarantees for—
‘‘(A) similar revolving funds established by
municipalities or intermunicipal agencies; and
‘‘(B) developing and implementing innova-
tive technologies.’’.
(d) ADMINISTRATIVE EXPENSES.—Section 603(d)(7)
(33 U.S.C. 1383(d)(7)) is amended by inserting before the
period at the end the following: ‘‘or $400,000 per year
or 1⁄2 percent per year of the current valuation of such
fund, whichever is greater, plus the amount of any fees
collected by the State for such purpose under subsection
(c)(2)’’.
(e) TECHNICAL
AND PLANNING ASSISTANCE
FOR
SMALL SYSTEMS.—Section 603(d) (33 U.S.C. 1383(d)) is
amended—
(1) by striking ‘‘and’’ at the end of paragraph
(6);
(2) by striking the period at the end of para-
graph (7) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(8) to provide to small systems technical and
planning assistance and assistance in financial man-
agement, user fee analysis, budgeting, capital im-
provement planning, facility operation and mainte-
nance, repair schedules, and other activities to im-
prove wastewater treatment plant operations; except
that such amounts shall not exceed 2 percent of all
grant awards to such fund under this title.’’.
(f) 
CONSISTENCY
WITH
PLANNING
REQUIRE-
MENTS.—Section 603(f) (33 U.S.C. 1383(f)) is amended
by striking ‘‘is consistent’’ and inserting ‘‘is not incon-
sistent’’.
(g) CONSTRUCTION ASSISTANCE.—Section 603(g)
(33 U.S.C. 1383(g)) is amended to read as follows:
‘‘(g) CONSTRUCTION ASSISTANCE.—
‘‘(1) PRIORITY LIST REQUIREMENT.—The State
may provide financial assistance from its water pol-
lution control revolving fund with respect to a
project for construction of a publicly owned treat-
ment works only if such project is on the State’s pri-
ority list under section 216 of this Act without re-
gard to the rank of such project on the State’s pri-
ority list.
‘‘(2) ELIGIBILITY
OF
CERTAIN
TREATMENT
WORKS.—A treatment works shall be treated as a
publicly owned treatment works for purposes of sub-
section (c) if the treatment works, without regard to
ownership, would be considered a publicly owned
treatment works and is principally treating munic-
ipal waste water or domestic sewage.’’.
(h) PRINCIPAL
SUBSIDIZATION.—Section 603 is
amended by adding at the end the following:
‘‘(i) PRINCIPAL SUBSIDIZATION.—In any case in
which a State makes a loan pursuant to subsection (d)(1)
to a financially distressed community, the State may pro-
vide additional subsidization, including forgiveness of prin-
cipal. The total amount of loan subsidies made by a State
under this subsection in a fiscal year may not exceed 30
percent of the amount of the capitalization grant received
by the State in such fiscal year.
‘‘(j) FINANCIALLY DISTRESSED COMMUNITY DE-
FINED.—In this section, the term ‘financially distressed
community’ means any community that meets afford-
ability criteria established by the State in which the treat-
ment works is located, if such criteria are developed after
public review and comment.
‘‘(k) INFORMATION TO ASSIST STATES.—The Ad-
ministrator may publish information to assist States in es-
tablishing affordability criteria under subsection (j).
‘‘(l) PRIORITY.—A State may give priority to a finan-
cially distressed community in making loans from its
water pollution control revolving fund.’’.
SEC. 5. AUTHORIZATION OF APPROPRIATIONS.
Section 607 (33 U.S.C. 1387) is amended by striking
‘‘the following sums:’’ and all that follows through the pe-
riod at the end of paragraph (5) and inserting
‘‘$3,000,000,000 for each of fiscal years 2002 through
2006.’’.
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