I 
112TH CONGRESS 
1ST SESSION H. R. 3145 
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 
OCTOBER 11, 2011 
Mr. BISHOP of New York (for himself, Mr. RAHALL, Mr. LATOURETTE, and 
Mr. PETRI) introduced the following bill; which was referred to the Com-
mittee on Transportation and Infrastructure, and in addition to the Com-
mittee on Ways and Means, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned 
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; TABLE OF CONTENTS. 
(a) IN GENERAL.—This Act may be cited as the 
‘‘Water Quality Protection and Job Creation Act of 
2011’’. 
(b) TABLE OF CONTENTS.— 
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Sec. 1. Short title; table of contents. 
Sec. 2. Amendment of Federal Water Pollution Control Act. 
TITLE I—WATER QUALITY FINANCING 
Subtitle A—Technical and Management Assistance 
Sec. 1101. Technical assistance. 
Sec. 1102. State management assistance. 
Sec. 1103. Watershed pilot projects. 
Subtitle B—Construction of Treatment Works 
Sec. 1201. Sewage collection systems. 
Sec. 1202. Treatment works defined. 
Subtitle C—State Water Pollution Control Revolving Funds 
Sec. 1301. General authority for capitalization grants. 
Sec. 1302. Capitalization grant agreements. 
Sec. 1303. Water pollution control revolving loan funds. 
Sec. 1304. Allotment of funds. 
Sec. 1305. Intended use plan. 
Sec. 1306. Annual Reports. 
Sec. 1307. Technical assistance; requirements for use of American materials. 
Sec. 1308. Economic hardship waiver. 
Sec. 1309. Authorization of appropriations. 
Subtitle D—General Provisions 
Sec. 1401. Definition of treatment works. 
Sec. 1402. Funding for Indian programs. 
Subtitle E—Tonnage Duties 
Sec. 1501. Tonnage duties. 
TITLE II—ALTERNATIVE WATER SOURCE PROJECTS 
Sec. 2001. Pilot program for alternative water source projects. 
TITLE III—SEWER OVERFLOW CONTROL GRANTS 
Sec. 3001. Sewer overflow control grants. 
TITLE IV—CLEAN WATER TRUST FUND 
Sec. 4001. Establishment of Clean Water Trust Fund. 
Sec. 4002. Allocation of funds. 
Sec. 4003. Revenues for Clean Water Trust Fund. 
TITLE V—WATER POLLUTION CONTROL INVESTMENT 
Sec. 5001. Short title. 
Sec. 5002. Definitions. 
Sec. 5003. Direct loans. 
Sec. 5004. Guarantees. 
Sec. 5005. Funding. 
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SEC. 2. AMENDMENT OF FEDERAL WATER POLLUTION CON-
TROL 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 provi-
sion, 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 et seq.). 
TITLE I—WATER QUALITY 
FINANCING 
Subtitle A—Technical and 
Management Assistance 
SEC. 1101. TECHNICAL ASSISTANCE. 
(a) TECHNICAL ASSISTANCE FOR RURAL AND SMALL 
TREATMENT
WORKS.—Section 
104(b) 
(33 
U.S.C. 
1254(b)) 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) make grants to nonprofit organizations— 
‘‘(A) to provide technical assistance to 
rural and small municipalities and tribal gov-
ernments for the purpose of assisting, in con-
sultation with the State in which the assistance 
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is provided, such municipalities and tribal gov-
ernments in the planning, developing, and ac-
quisition of financing for eligible projects de-
scribed in section 603(c); 
‘‘(B) to provide technical assistance and 
training for rural, small, and tribal publicly 
owned treatment works and decentralized 
wastewater treatment systems to enable such 
treatment works and systems to protect water 
quality and achieve and maintain compliance 
with the requirements of this Act; and 
‘‘(C) to disseminate information to rural, 
small, and tribal municipalities and municipali-
ties that meet the affordability criteria estab-
lished under section 603(i)(2) by the State in 
which the municipality is located with respect to 
planning, design, construction, and operation of 
publicly owned treatment works and decentral-
ized wastewater treatment systems.’’. 
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 
104(u) (33 U.S.C. 1254(u)) is amended— 
(1) by striking ‘‘and (6)’’ and inserting ‘‘(6)’’; 
and 
(2) by inserting before the period at the end the 
following: ‘‘; and (7) not to exceed $100,000,000 for 
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each of fiscal years 2012 through 2016 for carrying 
out subsections (b)(3), (b)(8), and (g), except that 
not less than 20 percent of the amounts appro-
priated pursuant to this paragraph in a fiscal year 
shall be used for carrying out subsection (b)(8)’’. 
(c) 
SMALL
FLOWS
CLEARINGHOUSE.—Section 
104(q)(4) (33 U.S.C. 1254(q)(4)) is amended— 
(1) 
in 
the 
first 
sentence 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$3,000,000’’; and 
(2) in the second sentence by striking ‘‘1986’’ 
and inserting ‘‘2016’’. 
SEC. 1102. STATE MANAGEMENT ASSISTANCE. 
(a) AUTHORIZATION OF APPROPRIATIONS.—Section 
106(a) (33 U.S.C. 1256(a)) is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(1); 
(2) by striking the semicolon at the end of 
paragraph (2) and inserting ‘‘; and’’; and 
(3) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) such sums as may be necessary for each 
of 
fiscal 
years 
1991 
through 
2011, 
and 
$300,000,000 for each of fiscal years 2012 through 
2016;’’. 
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(b) TECHNICAL AMENDMENT.—Section 106(e) (33 
U.S.C. 1256(e)) is amended by striking ‘‘Beginning in fis-
cal year 1974 the’’ and inserting ‘‘The’’. 
SEC. 1103. WATERSHED PILOT PROJECTS. 
(a) PILOT
PROJECTS.—Section 122 (33 U.S.C. 
1274) is amended— 
(1) in the section heading by striking ‘‘WET 
WEATHER’’; and 
(2) in subsection (a)— 
(A) in the matter preceding paragraph 
(1)— 
(i) by striking ‘‘for treatment works’’ 
and inserting ‘‘to a municipality or munic-
ipal entity’’; and 
(ii) by striking ‘‘wet weather dis-
charge’’; 
(B) in paragraph (2) by striking ‘‘in reduc-
ing such pollutants’’ and all that follows before 
the period at the end and inserting ‘‘to manage, 
reduce, treat, or reuse municipal stormwater, 
including low-impact development technologies 
and other techniques that utilize infiltration, 
evapotranspiration, and reuse of storm water on 
site’’; and 
(C) by adding at the end the following: 
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‘‘(3) WATERSHED PARTNERSHIPS.—Efforts of 
municipalities and property owners to demonstrate 
cooperative ways to address nonpoint sources of pol-
lution to reduce adverse impacts on water quality. 
‘‘(4) INTEGRATED WATER RESOURCE PLAN.— 
The development of an integrated water resource 
plan for the coordinated management and protection 
of surface water, ground water, and stormwater re-
sources on a watershed or subwatershed basis to 
meet the objectives, goals, and policies of this Act. 
‘‘(5) MUNICIPALITY-WIDE STORM WATER MAN-
AGEMENT PLANNING.—The development of a mu-
nicipality-wide plan that identifies the most effective 
placement of storm water technologies and manage-
ment approaches, including green infrastructure, to 
reduce water quality impairments from storm water 
on a municipality-wide basis.’’. 
(b) AUTHORIZATION OF APPROPRIATIONS.—The first 
sentence of section 122(c)(1) is amended— 
(1) by striking ‘‘and’’; and 
(2) by striking the period and inserting ‘‘, such 
sums as may be necessary for each of fiscal years 
2005 through 2011, and $120,000,000 for each of 
fiscal years 2012 through 2016’’. 
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(c) REPORT
TO
CONGRESS.—Section 122(d) is 
amended by striking ‘‘5 years after the date of enactment 
of this section,’’ and inserting ‘‘October 1, 2013,’’. 
Subtitle B—Construction of 
Treatment Works 
SEC. 1201. SEWAGE COLLECTION SYSTEMS. 
Section 211 (33 U.S.C. 1291) is amended— 
(1) by striking the section heading and all that 
follows through ‘‘(a) No’’ and inserting the fol-
lowing: 
‘‘SEC. 211. SEWAGE COLLECTION SYSTEMS. 
‘‘(a) IN GENERAL.—No’’; 
(2) in subsection (b) by inserting ‘‘POPULATION 
DENSITY.—’’ after ‘‘(b)’’; and 
(3) by striking subsection (c) and inserting the 
following: 
‘‘(c) EXCEPTIONS.— 
‘‘(1) REPLACEMENT AND MAJOR REHABILITA-
TION.—Notwithstanding the requirement of sub-
section (a)(1) concerning the existence of a collection 
system as a condition of eligibility, a project for re-
placement or major rehabilitation of a collection sys-
tem existing on January 1, 2007, shall be eligible for 
a grant under this title if the project otherwise 
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meets the requirements of subsection (a)(1) and 
meets the requirement of paragraph (3). 
‘‘(2) NEW SYSTEMS.—Notwithstanding the re-
quirement of subsection (a)(2) concerning the exist-
ence of a community as a condition of eligibility, a 
project for a new collection system to serve a com-
munity existing on January 1, 2007, shall be eligible 
for a grant under this title if the project otherwise 
meets the requirements of subsection (a)(2) and 
meets the requirement of paragraph (3). 
‘‘(3) REQUIREMENT.—A project meets the re-
quirement of this paragraph if the purpose of the 
project is to accomplish the objectives, goals, and 
policies of this Act by addressing an adverse envi-
ronmental condition existing on the date of enact-
ment of this paragraph.’’. 
SEC. 1202. TREATMENT WORKS DEFINED. 
Section 212(2)(A) (33 U.S.C. 1292(2)(A)) is amend-
ed— 
(1) by striking ‘‘any works, including site’’; 
(2) by striking ‘‘is used for ultimate’’ and in-
serting ‘‘will be used for ultimate’’; and 
(3) by inserting before the period at the end the 
following: ‘‘and acquisition of other lands, and inter-
ests in lands, which are necessary for construction’’. 
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Subtitle C—State Water Pollution 
Control Revolving Funds 
SEC. 1301. GENERAL AUTHORITY FOR CAPITALIZATION 
GRANTS. 
Section 601(a) (33 U.S.C. 1381(a)) is amended by 
striking ‘‘for providing assistance’’ and all that follows 
through the period at the end and inserting the following: 
‘‘to accomplish the objectives, goals, and policies of this 
Act by providing assistance for projects and activities 
identified in section 603(c).’’. 
SEC. 1302. CAPITALIZATION GRANT AGREEMENTS. 
(a) REPORTING INFRASTRUCTURE ASSETS.—Section 
602(b)(9) (33 U.S.C. 1382(b)(9)) is amended by striking 
‘‘standards’’ and inserting ‘‘standards, including stand-
ards relating to the reporting of infrastructure assets’’. 
(b) ADDITIONAL REQUIREMENTS.—Section 602(b) 
(33 U.S.C. 1382(b)) is amended— 
(1) in paragraph (6)— 
(A) by striking ‘‘before fiscal year 1995’’; 
(B) by striking ‘‘funds directly made avail-
able by capitalization grants under this title 
and section 205(m) of this Act’’ and inserting 
‘‘assistance made available by a State water 
pollution control revolving fund as authorized 
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under this title, or with assistance made avail-
able under section 205(m), or both,’’; and 
(C) by striking ‘‘201(b)’’ and all that fol-
lows through ‘‘513’’ and inserting ‘‘211 and 
511(c)(1)’’; 
(2) by striking ‘‘and’’ at the end of paragraph 
(9); 
(3) by striking the period at the end of para-
graph (10) and inserting a semicolon; and 
(4) by adding at the end the following: 
‘‘(11) the State will establish, maintain, invest, 
and credit the fund with repayments, such that the 
fund balance will be available in perpetuity for pro-
viding financial assistance in accordance with this 
title; 
‘‘(12) any fees charged by the State to recipi-
ents of assistance that are considered program in-
come will be used for the purpose of financing the 
cost of administering the fund or financing projects 
or activities eligible for assistance from the fund; 
‘‘(13) beginning in fiscal year 2013, the State 
will include as a condition of providing assistance to 
a municipality or intermunicipal, interstate, or State 
agency that the recipient of such assistance certify, 
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in a manner determined by the Governor of the 
State, that the recipient— 
‘‘(A) has studied and evaluated the cost 
and effectiveness of the processes, materials, 
techniques, and technologies for carrying out 
the proposed project or activity for which assist-
ance is sought under this title, and has selected, 
to the extent practicable, a project or activity 
that maximizes the potential for efficient water 
use, reuse, and conservation, and energy con-
servation, taking into account the cost of con-
structing the project or activity, the cost of op-
erating and maintaining the project or activity 
over its life, and the cost of replacing the 
project or activity; and 
‘‘(B) has considered, to the maximum ex-
tent practicable and as determined appropriate 
by the recipient, the costs and effectiveness of 
other design, management, and financing ap-
proaches for carrying out a project or activity 
for which assistance is sought under this title, 
taking into account the cost of constructing the 
project or activity, the cost of operating and 
maintaining the project or activity over its life, 
and the cost of replacing the project or activity; 
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‘‘(14) the State will use at least 15 percent of 
the amount of each capitalization grant received by 
the State under this title after September 30, 2010, 
to provide assistance to municipalities of fewer than 
10,000 individuals that meet the affordability cri-
teria established by the State under section 
603(i)(2) for projects or activities included on the 
State’s priority list established under section 603(g), 
to the extent that there are sufficient applications 
for such assistance; 
‘‘(15) a contract to be carried out using funds 
directly made available by a capitalization grant 
under this title for program management, construc-
tion management, feasibility studies, preliminary en-
gineering, design, engineering, surveying, mapping, 
or architectural related services shall be negotiated 
in the same manner as a contract for architectural 
and engineering services is negotiated under chapter 
11 of title 40, United States Code, or an equivalent 
State qualifications-based requirement (as deter-
mined by the Governor of the State); and 
‘‘(16) the requirements of section 513 will apply 
to the construction of treatment works carried out in 
whole or in part with assistance made available by 
a State water pollution control revolving fund as au-
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thorized under this title, or with assistance made 
available under section 205(m), or both, in the same 
manner as treatment works for which grants are 
made under this Act.’’. 
SEC. 1303. WATER POLLUTION CONTROL REVOLVING LOAN 
FUNDS. 
(a) PROJECTS AND ACTIVITIES ELIGIBLE FOR AS-
SISTANCE.—Section 603(c) (33 U.S.C. 1383(c)) is amend-
ed to read as follows: 
‘‘(c) PROJECTS AND ACTIVITIES ELIGIBLE FOR AS-
SISTANCE.—The amounts of funds available to each State 
water pollution control revolving fund shall be used only 
for providing financial assistance— 
‘‘(1) to any municipality or intermunicipal, 
interstate, or State agency for construction of pub-
licly owned treatment works; 
‘‘(2) for the implementation of a management 
program established under section 319; 
‘‘(3) for development and implementation of a 
conservation and management plan under section 
320; 
‘‘(4) for repair or replacement of decentralized 
wastewater treatment systems that treat domestic 
sewage; 
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‘‘(5) for measures to manage, reduce, treat, or 
reuse municipal stormwater; 
‘‘(6) to any municipality or intermunicipal, 
interstate, or State agency for measures to reduce 
the demand for publicly owned treatment works ca-
pacity through water conservation, efficiency, or 
reuse; 
‘‘(7) for the development and implementation of 
watershed projects meeting the criteria set forth in 
section 122; and 
‘‘(8) to any municipality or intermunicipal, 
interstate, or State agency for measures to reduce 
the energy consumption needs for publicly owned 
treatment works, including the implementation of 
energy-efficient or renewable-energy generation tech-
nologies.’’. 
(b) 
EXTENDED
REPAYMENT
PERIOD.—Section 
603(d)(1) (33 U.S.C. 1383(d)(1)) is amended— 
(1) in subparagraph (A) by striking ‘‘20 years’’ 
and inserting ‘‘the lesser of 30 years or the design 
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’’. 
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(c) 
FISCAL
SUSTAINABILITY
PLAN.—Section 
603(d)(1) (33 U.S.C. 1383(d)(1)) is further amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (C); 
(2) by inserting ‘‘and’’ at the end of subpara-
graph (D); and 
(3) by adding at the end the following: 
‘‘(E) for any portion of a treatment works 
proposed for repair, replacement, or expansion, 
and eligible for assistance under section 
603(c)(1), the recipient of a loan will develop 
and implement a fiscal sustainability plan that 
includes— 
‘‘(i) an inventory of critical assets 
that are a part of that portion of the treat-
ment works; 
‘‘(ii) an evaluation of the condition 
and performance of inventoried assets or 
asset groupings; 
‘‘(iii) a certification that the recipient 
has evaluated and will be implementing 
water and energy conservation efforts as 
part of the plan; and 
‘‘(iv) a plan for maintaining, repair-
ing, and, as necessary, replacing that por-
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tion of the treatment works and a plan for 
funding such activities;’’. 
(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: ‘‘, $400,000 per year, or 
1⁄5 percent per year of the current valuation of the fund, 
whichever amount is greatest, plus the amount of any fees 
collected by the State for such purpose regardless of the 
source’’. 
(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 a semicolon; and 
(3) by adding at the end the following: 
‘‘(8) to provide grants to owners and operators 
of treatment works that serve a population of 
10,000 or fewer for obtaining technical and planning 
assistance and assistance in financial management, 
user fee analysis, budgeting, capital improvement 
planning, facility operation and maintenance, equip-
ment replacement, repair schedules, and other activi-
ties to improve wastewater treatment plant manage-
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ment and operations, except that the total amount 
provided by the State in grants under this para-
graph for a fiscal year may not exceed one percent 
of the total amount of assistance provided by the 
State from the fund in the preceding fiscal year, or 
2 percent of the total amount received by the State 
in capitalization grants under this title in the pre-
ceding fiscal year, whichever amount is greatest; and 
‘‘(9) to provide grants to owners and operators 
of treatment works for conducting an assessment of 
the energy and water consumption of the treatment 
works, and evaluating potential opportunities for en-
ergy and water conservation through facility oper-
ation and maintenance, equipment replacement, and 
projects or activities that promote the efficient use 
of energy and water by the treatment works, except 
that the total amount provided by the State in 
grants under this paragraph for a fiscal year may 
not exceed one percent of the total amount of assist-
ance provided by the State from the fund in the pre-
ceding fiscal year, or 2 percent of the total amount 
received by the State in capitalization grants under 
this title in the preceding fiscal year, whichever 
amount is greatest.’’. 
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(f) ADDITIONAL SUBSIDIZATION.—Section 603 (33 
U.S.C. 1383) is amended by adding at the end the fol-
lowing: 
‘‘(i) ADDITIONAL SUBSIDIZATION.— 
‘‘(1) IN
GENERAL.—In any case in which a 
State provides assistance to a municipality or inter-
municipal, interstate, or State agency under sub-
section (d), the State may provide additional sub-
sidization, including forgiveness of principal and 
negative interest loans— 
‘‘(A) to benefit a municipality that— 
‘‘(i) meets the State’s affordability 
criteria established under paragraph (2); 
or 
‘‘(ii) does not meet the State’s afford-
ability criteria if the recipient— 
‘‘(I) seeks additional subsidiza-
tion to benefit individual ratepayers in 
the residential user rate class; 
‘‘(II) demonstrates to the State 
that such ratepayers will experience a 
significant hardship from the increase 
in rates necessary to finance the 
project or activity for which assistance 
is sought; and 
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‘‘(III) ensures, as part of an as-
sistance agreement between the State 
and the recipient, that the additional 
subsidization 
provided 
under 
this 
paragraph is directed through a user 
charge rate system (or other appro-
priate method) to such ratepayers; or 
‘‘(B) to implement a process, material, 
technique, or technology to address water-effi-
ciency goals, address energy-efficiency goals, 
mitigate stormwater runoff, or encourage envi-
ronmentally sensitive project planning, design, 
and construction. 
‘‘(2) AFFORDABILITY CRITERIA.— 
‘‘(A) ESTABLISHMENT.—On or before Sep-
tember 30, 2012, and after providing notice 
and an opportunity for public comment, a State 
shall establish affordability criteria to assist in 
identifying municipalities that would experience 
a significant hardship raising the revenue nec-
essary to finance a project or activity eligible 
for assistance under section 603(c)(1) if addi-
tional subsidization is not provided. Such cri-
teria shall be based on income data, population 
trends, and other data determined relevant by 
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the State, including whether the project or ac-
tivity is to be carried out in an economically 
distressed area, as described in section 301 of 
the Public Works and Economic Development 
Act of 1965 (42 U.S.C. 3161). 
‘‘(B) EXISTING CRITERIA.—If a State has 
previously established, after providing notice 
and an opportunity for public comment, afford-
ability criteria that meet the requirements of 
subparagraph (A), the State may use the cri-
teria for the purposes of this subsection. For 
purposes of this Act, any such criteria shall be 
treated as affordability criteria established 
under this paragraph. 
‘‘(C) INFORMATION TO ASSIST STATES.— 
The Administrator may publish information to 
assist States in establishing affordability cri-
teria under subparagraph (A). 
‘‘(3) PRIORITY.—A State may give priority to a 
recipient for a project or activity eligible for funding 
under section 603(c)(1) if the recipient meets the 
State’s affordability criteria. 
‘‘(4) SET-ASIDE.— 
‘‘(A) IN GENERAL.—In any fiscal year in 
which the Administrator has available for obli-
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gation more than $1,000,000,000 for the pur-
poses of this title, a State shall provide addi-
tional subsidization under this subsection in the 
amount specified in subparagraph (B) to eligi-
ble entities described in paragraph (1) for 
projects and activities identified in the State’s 
intended use plan prepared under section 
606(c) to the extent that there are sufficient 
applications for such assistance. 
‘‘(B) AMOUNT.—In a fiscal year described 
in subparagraph (A), a State shall set aside for 
purposes of subparagraph (A) an amount not 
less than 25 percent of the difference be-
tween— 
‘‘(i) the total amount that would have 
been allotted to the State under section 
604 for such fiscal year if the amount 
available to the Administrator for obliga-
tion under this title for such fiscal year 
had been equal to $1,000,000,000; and 
‘‘(ii) the total amount allotted to the 
State under section 604 for such fiscal 
year. 
‘‘(5) LIMITATION.—The total amount of addi-
tional subsidization provided under this subsection 
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by a State may not exceed 30 percent of the total 
amount of capitalization grants received by the State 
under this title in fiscal years beginning after Sep-
tember 30, 2011.’’. 
SEC. 1304. ALLOTMENT OF FUNDS. 
(a) IN
GENERAL.—Section 604(a) (33 U.S.C. 
1384(a)) is amended to read as follows: 
‘‘(a) ALLOTMENTS.— 
‘‘(1) FISCAL YEARS 2012 AND 2013.—Sums ap-
propriated to carry out this title for each of fiscal 
years 2012 and 2013 shall be allotted by the Admin-
istrator in accordance with the formula used to allot 
sums appropriated to carry out this title for fiscal 
year 2011. 
‘‘(2) FISCAL YEAR 2014 AND THEREAFTER.— 
Sums appropriated to carry out this title for fiscal 
year 2014 and each fiscal year thereafter shall be al-
lotted by the Administrator as follows: 
‘‘(A) 
Amounts 
that 
do 
not 
exceed 
$1,350,000,000 shall be allotted in accordance 
with the formula described in paragraph (1). 
‘‘(B) Amounts that exceed $1,350,000,000 
shall be allotted in accordance with the formula 
developed by the Administrator under sub-
section (d).’’. 
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(b) PLANNING ASSISTANCE.—Section 604(b) (33 
U.S.C. 1384(b)) is amended by striking ‘‘1 percent’’ and 
inserting ‘‘2 percent’’. 
(c) FORMULA.—Section 604 (33 U.S.C. 1384) is 
amended by adding at the end the following: 
‘‘(d) 
FORMULA
BASED
ON
WATER
QUALITY 
NEEDS.—Not later than September 30, 2013, and after 
providing notice and an opportunity for public comment, 
the Administrator shall publish an allotment formula 
based on water quality needs in accordance with the most 
recent survey of needs developed by the Administrator 
under section 516(b) and any other information the Ad-
ministrator considers appropriate.’’. 
SEC. 1305. INTENDED USE PLAN. 
(a) INTEGRATED PRIORITY LIST.—Section 603(g) 
(33 U.S.C. 1383(g)) is amended to read as follows: 
‘‘(g) PRIORITY LIST.— 
‘‘(1) IN GENERAL.—For fiscal year 2013 and 
each fiscal year thereafter, a State shall establish or 
update a list of projects and activities for which as-
sistance is sought from the State’s water pollution 
control revolving fund. Such projects and activities 
shall be listed in priority order based on the method-
ology established under paragraph (2). The State 
may provide financial assistance from the State’s 
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water pollution control revolving fund only with re-
spect to a project or activity included on such list. 
In the case of projects and activities eligible for as-
sistance under section 603(c)(2), the State may in-
clude a category or subcategory of nonpoint sources 
of pollution on such list in lieu of a specific project 
or activity. 
‘‘(2) METHODOLOGY.— 
‘‘(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of this paragraph, 
and after providing notice and opportunity for 
public comment, each State (acting through the 
State’s water quality management agency and 
other appropriate agencies of the State) shall 
establish a methodology for developing a pri-
ority list under paragraph (1). 
‘‘(B) PRIORITY
FOR
PROJECTS
AND
AC-
TIVITIES
THAT
ACHIEVE
GREATEST
WATER 
QUALITY
IMPROVEMENT.—In developing the 
methodology, the State shall seek to achieve the 
greatest degree of water quality improvement, 
taking into consideration the requirements of 
section 602(b)(5) and section 603(i)(3), wheth-
er such water quality improvements would be 
realized without assistance under this title, and 
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whether the proposed projects and activities 
would address water quality impairments asso-
ciated with existing treatment works. 
‘‘(C) 
CONSIDERATIONS
IN
SELECTING 
PROJECTS
AND
ACTIVITIES.—In determining 
which projects and activities will achieve the 
greatest degree of water quality improvement, 
the State shall consider— 
‘‘(i) information developed by the 
State under sections 303(d) and 305(b); 
‘‘(ii) the State’s continuing planning 
process developed under section 303(e); 
‘‘(iii) the State’s management pro-
gram developed under section 319; and 
‘‘(iv) conservation and management 
plans developed under section 320. 
‘‘(D) NONPOINT SOURCES.—For categories 
or subcategories of nonpoint sources of pollu-
tion that a State may include on its priority list 
under paragraph (1), the State shall consider 
the cumulative water quality improvements as-
sociated with projects or activities in such cat-
egories or subcategories. 
‘‘(E) EXISTING
METHODOLOGIES.—If a 
State has previously developed, after providing 
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notice and an opportunity for public comment, 
a methodology that meets the requirements of 
this paragraph, the State may use the method-
ology for the purposes of this subsection.’’. 
(b) INTENDED USE PLAN.—Section 606(c) (33 
U.S.C. 1386(c)) is amended— 
(1) in the matter preceding paragraph (1) by 
striking ‘‘each State shall annually prepare’’ and in-
serting ‘‘each State (acting through the State’s 
water quality management agency and other appro-
priate agencies of the State) shall annually prepare 
and publish’’; 
(2) by striking paragraph (1) and inserting the 
following: 
‘‘(1) the State’s priority list developed under 
section 603(g);’’; 
(3) in paragraph (4)— 
(A) by striking ‘‘and (6)’’ and inserting 
‘‘(6), (15), and (17)’’; and 
(B) by striking ‘‘and’’ at the end; 
(4) by striking the period at the end of para-
graph (5) and inserting ‘‘; and’’; and 
(5) by adding at the end the following: 
‘‘(6) if the State does not fund projects and ac-
tivities in the order of the priority established under 
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section 603(g), an explanation of why such a change 
in order is appropriate.’’. 
(c) TRANSITIONAL PROVISION.—Before completion 
of a priority list based on a methodology established under 
section 603(g) of the Federal Water Pollution Control Act 
(as amended by this section), a State shall continue to 
comply with the requirements of sections 603(g) and 
606(c) of such Act, as in effect on the day before the date 
of enactment of this Act. 
SEC. 1306. ANNUAL REPORTS. 
Section 606(d) (33 U.S.C. 1386(d)) is amended— 
(1) by striking ‘‘(d) ANNUAL REPORT.—Begin-
ning’’ and inserting the following: 
‘‘(d) ANNUAL REPORTS.— 
‘‘(1) STATE REPORT.—Beginning’’; 
(2) in paragraph (1) (as so designated) by 
striking ‘‘loan amounts,’’ and inserting ‘‘loan 
amounts, the eligible purposes under section 603(c) 
for which the assistance has been provided,’’; and 
(3) by adding at the end the following: 
‘‘(2) FEDERAL
REPORT.—The Administrator 
shall annually prepare, and make publicly available, 
a report on the performance of the projects and ac-
tivities carried out in whole or in part with assist-
ance made available by a State water pollution con-
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trol revolving fund as authorized under this title 
during the previous fiscal year, including— 
‘‘(A) the annual and cumulative financial 
assistance provided to States under this title; 
‘‘(B) the categories and types of such 
projects and activities; 
‘‘(C) an estimate of the number of jobs 
created through carrying out such projects and 
activities; 
‘‘(D) an assessment of the progress made 
toward meeting the goals and purposes of this 
Act through such projects and activities; and 
‘‘(E) any additional information that the 
Administrator considers appropriate.’’. 
SEC. 1307. TECHNICAL ASSISTANCE; REQUIREMENTS FOR 
USE OF AMERICAN MATERIALS. 
Title VI (33 U.S.C. 1381 et seq.) is amended— 
(1) by redesignating section 607 as section 610; 
and 
(2) by inserting after section 606 the following: 
‘‘SEC. 607. TECHNICAL ASSISTANCE. 
‘‘(a) SIMPLIFIED PROCEDURES.—Not later than 1 
year after the date of enactment of this section, the Ad-
ministrator shall assist the States in establishing sim-
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plified procedures for treatment works to obtain assistance 
under this title. 
‘‘(b) PUBLICATION OF MANUAL.—Not later than 2 
years after the date of the enactment of this section, and 
after providing notice and opportunity for public comment, 
the Administrator shall publish a manual to assist treat-
ment works in obtaining assistance under this title and 
publish in the Federal Register notice of the availability 
of the manual. 
‘‘(c) COMPLIANCE CRITERIA.—At the request of any 
State, the Administrator, after providing notice and an op-
portunity for public comment, shall assist in the develop-
ment of criteria for a State to determine compliance with 
the conditions of funding assistance established under sec-
tions 602(b)(13) and 603(d)(1)(E). 
‘‘SEC. 608. BUY AMERICA. 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of law, funds made available from a State water 
pollution control revolving fund established under this title 
may not be used for a project for the construction of a 
publicly owned treatment works unless the steel, iron, and 
manufactured goods used for the project are produced in 
the United States. 
‘‘(b) EXCEPTIONS.—Subsection (a) shall not apply to 
a project for the construction of a treatment works if the 
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Administrator (in consultation with the Governor of the 
State in which the treatment works will be constructed) 
makes a finding that— 
‘‘(1) the steel, iron, or manufactured goods re-
quired for the project are a de minimis component 
of the project, as determined in accordance with reg-
ulations to be issued by the Administrator; 
‘‘(2) the steel, iron, or manufactured goods re-
quired for the project are not produced in the 
United States— 
‘‘(A) in sufficient and reasonably available 
quantities; or 
‘‘(B) to a satisfactory quality; or 
‘‘(3) the use of steel, iron, and manufactured 
goods produced in the United States for the project 
will increase the total cost of the project by more 
than 25 percent. 
‘‘(c) WAIVER REQUIREMENTS.— 
‘‘(1) PUBLIC NOTIFICATION AND OPPORTUNITY 
FOR COMMENT.— 
‘‘(A) IN GENERAL.—At least 30 days be-
fore making a finding under subsection (b), the 
Administrator shall provide notice of and an op-
portunity for public comment on the finding. 
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‘‘(B) NOTICE REQUIREMENTS.—Any notice 
provided under this subparagraph shall— 
‘‘(i) include a justification for the pro-
posed finding; and 
‘‘(ii) be provided by electronic means, 
including on the Internet. 
‘‘(2) DETAILED
JUSTIFICATION
IN
FEDERAL 
REGISTER.—If the Administrator makes a finding 
under subsection (b), the Administrator shall— 
‘‘(A) publish in the Federal Register a de-
tailed justification for the finding; and 
‘‘(B) provide notice of and an opportunity 
for public comment on the detailed justification 
at least 30 days before the finding takes effect. 
‘‘(3) ANNUAL REPORT.—Not later than Feb-
ruary 1 of each year beginning after the date of en-
actment of this section, the Administrator shall sub-
mit to the Committee on Transportation and Infra-
structure of the House of Representatives and the 
Committee on Environment and Public Works of the 
Senate a report that— 
‘‘(A) specifies each project with respect to 
which the Administrator made a finding under 
subsection (b) during the preceding calendar 
year; and 
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‘‘(B) describes the justification for each 
such finding. 
‘‘(d) STATE REQUIREMENTS.—The Administrator 
may not impose a limitation or condition on assistance 
provided under this title that restricts— 
‘‘(1) a State from imposing requirements that 
are more stringent than those imposed under this 
section with respect to limiting the use of articles, 
materials, or supplies mined, produced, or manufac-
tured in foreign countries for projects carried out 
with such assistance; or 
‘‘(2) any recipient of assistance from a State 
water pollution control revolving fund established 
under this title from complying with such State re-
quirements. 
‘‘(e) INTENTIONAL VIOLATIONS.—Pursuant to proce-
dures established under subpart 9.4 of chapter 1 of title 
48, Code of Federal Regulations, a person shall be ineli-
gible to receive a contract or subcontract funded with 
amounts made available from a State water pollution con-
trol revolving fund established under this title if the Ad-
ministrator or a court determines that such person inten-
tionally— 
‘‘(1) affixed a label bearing a ‘Made in Amer-
ica’ inscription, or any inscription with the same 
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meaning, to any steel, iron, or manufactured goods 
that— 
‘‘(A) were used in a project to which this 
section applies; and 
‘‘(B) were not produced in the United 
States; or 
‘‘(2) represented that any steel, iron, or manu-
factured goods were produced in the United States 
that— 
‘‘(A) were used in projects to which this 
section applies; and 
‘‘(B) were not produced in the United 
States. 
‘‘(f) CONSISTENCY WITH INTERNATIONAL AGREE-
MENTS.— 
‘‘(1) IN GENERAL.—This section shall be ap-
plied in a manner that is consistent with United 
States obligations under international agreements. 
‘‘(2) TREATMENT OF FOREIGN COUNTRIES IN 
VIOLATION OF INTERNATIONAL AGREEMENTS.—The 
Administrator shall prohibit the use of steel, iron, 
and manufactured goods produced in a foreign coun-
try in a project funded with amounts made available 
from a State water pollution control revolving fund 
established under this title, including any project for 
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which the Administrator has made a finding under 
subsection (b), if the Administrator, in consultation 
with the United States Trade Representative, deter-
mines that the foreign country is in violation of the 
terms of an agreement with the United States by 
discriminating against steel, iron, or manufactured 
goods that are produced in the United States and 
covered by the agreement.’’. 
SEC. 1308. ECONOMIC HARDSHIP WAIVER. 
Notwithstanding 
the 
requirements 
of 
section 
602(b)(2) of the Federal Water Pollution Control Act (33 
U.S.C. 1382(b)(2)), for fiscal years 2012 and 2013, the 
Administrator of the Environmental Protection Agency 
may waive the requirement that a State deposit an amount 
equal to 20 percent of the State’s annual capitalization 
grant into the State’s water pollution control revolving 
fund established under title VI of that Act if the Adminis-
trator determines that the State is currently experiencing 
a local, statewide, or regional economic hardship and that 
providing such a deposit would adversely impact the 
State’s ability to restore and maintain the chemical, phys-
ical, and biological integrity of waters located within the 
State. 
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SEC. 1309. AUTHORIZATION OF APPROPRIATIONS. 
Section 610 (as redesignated by section 1307 of this 
Act) is amended by striking paragraphs (1) through (5) 
and inserting the following: 
‘‘(1) $2,400,000,000 for fiscal year 2012; 
‘‘(2) $2,700,000,000 for fiscal year 2013; 
‘‘(3) $2,800,000,000 for fiscal year 2014; 
‘‘(4) $2,900,000,000 for fiscal year 2015; and 
‘‘(5) $3,000,000,000 for fiscal year 2016.’’. 
Subtitle D—General Provisions 
SEC. 1401. DEFINITION OF TREATMENT WORKS. 
Section 502 (33 U.S.C. 1362) is amended by adding 
at the end the following: 
‘‘(26) TREATMENT WORKS.—The term ‘treat-
ment works’ has the meaning given that term in sec-
tion 212.’’. 
SEC. 1402. FUNDING FOR INDIAN PROGRAMS. 
Section 518(c) (33 U.S.C. 1377) is amended— 
(1) by striking ‘‘The Administrator’’ and insert-
ing the following: 
‘‘(1) FISCAL YEARS 1987–2011.—The Adminis-
trator’’; 
(2) in paragraph (1) (as so designated)— 
(A) by inserting ‘‘and ending before Octo-
ber 1, 2011,’’ after ‘‘1986,’’; and 
(B) by striking the second sentence; and 
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(3) by adding at the end the following: 
‘‘(2) FISCAL YEAR 2012 AND THEREAFTER.— 
For fiscal year 2012 and each fiscal year thereafter, 
the Administrator shall reserve, before allotments to 
the States under section 604(a), not less than 0.5 
percent and not more than 2.0 percent of the funds 
made available to carry out title VI. 
‘‘(3) USE OF FUNDS.—Funds reserved under 
this subsection shall be available only for grants for 
projects and activities eligible for assistance under 
section 603(c) to serve— 
‘‘(A) Indian tribes (as defined in section 
518(h)); 
‘‘(B) former Indian reservations in Okla-
homa (as determined by the Secretary of the 
Interior); and 
‘‘(C) Native villages (as defined in section 
3 of the Alaska Native Claims Settlement Act 
(43 U.S.C. 1602)).’’. 
Subtitle E—Tonnage Duties 
SEC. 1501. TONNAGE DUTIES. 
(a) IN GENERAL.—Section 60301 of title 46, United 
States Code, is amended by striking subsections (a) and 
(b) and inserting the following: 
‘‘(a) LOWER RATE.— 
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‘‘(1) IMPOSITION OF DUTY.—A duty is imposed 
at the rate described in paragraph (2) at each entry 
in a port of the United States of— 
‘‘(A) a vessel entering from a foreign port 
or place in North America, Central America, 
the West Indies Islands, the Bahama Islands, 
the Bermuda Islands, or the coast of South 
America bordering the Caribbean Sea; or 
‘‘(B) a vessel returning to the same port or 
place in the United States from which it de-
parted, and not entering the United States 
from another port or place, except— 
‘‘(i) a vessel of the United States; 
‘‘(ii) a recreational vessel (as defined 
in section 2101 of this title); or 
‘‘(iii) a barge. 
‘‘(2) RATE.—The rate referred to in paragraph 
(1) shall be— 
‘‘(A) 4.5 cents per ton (but not more than 
a total of 22.5 cents per ton per year) for fiscal 
years 2006 through 2011; 
‘‘(B) 9.0 cents per ton (but not more than 
a total of 45 cents per ton per year) for fiscal 
years 2012 through 2021; and 
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‘‘(C) 2 cents per ton (but not more than 
a total of 10 cents per ton per year) for each 
fiscal year thereafter. 
‘‘(b) HIGHER RATE.— 
‘‘(1) IMPOSITION OF DUTY.—A duty is imposed 
at the rate described in paragraph (2) on a vessel 
at each entry in a port of the United States from 
a foreign port or place not named in subsection 
(a)(1). 
‘‘(2) RATE.—The rate referred to in paragraph 
(1) shall be— 
‘‘(A) 13.5 cents per ton (but not more 
than a total of 67.5 cents per ton per year) for 
fiscal years 2006 through 2011; 
‘‘(B) 27 cents per ton (but not more than 
a total of $1.35 per ton per year) for fiscal 
years 2012 through 2021, and 
‘‘(C) 6 cents per ton (but not more than 
a total of 30 cents per ton per year) for each 
fiscal year thereafter.’’. 
(b) CONFORMING AMENDMENTS.—Such title is fur-
ther amended— 
(1) by striking the heading for subtitle VI and 
inserting the following: 
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‘‘Subtitle VI—Clearance and 
Tonnage Duties’’; 
(2) in the heading for chapter 603, by striking 
‘‘TAXES’’ and inserting ‘‘DUTIES’’; 
(3) in the headings of sections in chapter 603, 
by striking ‘‘taxes’’ each place it appears and in-
serting ‘‘duties’’; 
(4) in the heading for subsection (a) of section 
60303, by striking ‘‘TAX’’ and inserting ‘‘DUTY’’; 
(5) in the text of sections in chapter 603, by 
striking ‘‘taxes’’ each place it appears and inserting 
‘‘duties’’; and 
(6) in the text of sections in chapter 603, by 
striking ‘‘tax’’ each place it appears and inserting 
‘‘duty’’. 
(c) CLERICAL AMENDMENTS.—Such title is further 
amended— 
(1) in the title analysis by striking the item re-
lating to subtitle VI and inserting the following: 
‘‘VI. CLEARANCE AND TONNAGE DUTIES ...........................60101’’; 
(2) in the analysis for subtitle VI by striking 
the item relating to chapter 603 and inserting the 
following: 
‘‘603. Tonnage Duties and Light Money .................................................. 60301’’; 
and 
(3) in the analysis for chapter 603— 
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(A) by striking the items relating to sec-
tions 60301 and 60302 and inserting the fol-
lowing: 
‘‘60301. Regular tonnage duties. 
‘‘60302. Special tonnage duties.’’; 
and 
(B) by striking the item relating to section 
60304 and inserting the following: 
‘‘60304. Presidential suspension of tonnage duties and light money.’’. 
TITLE II—ALTERNATIVE WATER 
SOURCE PROJECTS 
SEC. 2001. PILOT PROGRAM FOR ALTERNATIVE WATER 
SOURCE PROJECTS. 
(a) SELECTION OF PROJECTS.—Section 220(d)(2) 
(33 U.S.C. 1300(d)(2)) is amended by inserting before the 
period at the end the following: ‘‘or whether the project 
is located in an area which is served by a public water 
system serving 10,000 individuals or fewer’’. 
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 
220(j) (33 U.S.C. 1300(j)) is amended by striking 
‘‘$75,000,000 for fiscal years 2002 through 2004’’ and 
inserting ‘‘$50,000,000 for each of fiscal years 2012 
through 2016’’. 
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TITLE III—SEWER OVERFLOW 
CONTROL GRANTS 
SEC. 3001. SEWER OVERFLOW CONTROL GRANTS. 
(a) 
ADMINISTRATIVE
REQUIREMENTS.—Section 
221(e) (33 U.S.C. 1301(e)) is amended to read as follows: 
‘‘(e) ADMINISTRATIVE REQUIREMENTS.—A project 
that receives assistance under this section shall be carried 
out subject to the same requirements as a project that 
receives assistance from a State water pollution control 
revolving fund under title VI, except to the extent that 
the Governor of the State in which the project is located 
determines that a requirement of title VI is inconsistent 
with the purposes of this section. For the purposes of this 
subsection, a Governor may not determine that the re-
quirements of title VI relating to the application of section 
513 are inconsistent with the purposes of this section.’’. 
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 
221(f) (33 U.S.C. 1301(f)) is amended to read as follows: 
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(1) IN GENERAL.—There is authorized to be 
appropriated to carry out this section $500,000,000 
for each of fiscal years 2012 through 2016. 
‘‘(2) MINIMUM ALLOCATIONS.—To the extent 
there are sufficient eligible project applications, the 
Administrator shall ensure that a State uses not less 
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than 20 percent of the amount of the grants made 
to the State under subsection (a) in a fiscal year to 
carry out projects to control municipal combined 
sewer overflows and sanitary sewer overflows 
through the use of green infrastructure, water and 
energy efficiency improvements, and other environ-
mentally innovative activities.’’. 
(c) ALLOCATION OF FUNDS.—Section 221(g) of such 
Act (33 U.S.C. 1301(g)) is amended to read as follows: 
‘‘(g) ALLOCATION OF FUNDS.— 
‘‘(1) FISCAL YEAR 2012.—Subject to subsection 
(h), the Administrator shall use the amounts appro-
priated to carry out this section for fiscal year 2012 
for making grants to municipalities and municipal 
entities under subsection (a)(2) in accordance with 
the criteria set forth in subsection (b). 
‘‘(2) FISCAL YEAR 2013 AND THEREAFTER.— 
Subject to subsection (h), the Administrator shall 
use the amounts appropriated to carry out this sec-
tion for fiscal year 2013 and each fiscal year there-
after for making grants to States under subsection 
(a)(1) in accordance with a formula to be established 
by the Administrator, after providing notice and an 
opportunity for public comment, that allocates to 
each State a proportional share of such amounts 
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based on the total needs of the State for municipal 
combined sewer overflow controls and sanitary sewer 
overflow controls identified in the most recent survey 
conducted pursuant to section 516 and any other in-
formation the Administrator considers appropriate.’’. 
(d) REPORTS.—The first sentence of section 221(i) 
(33 U.S.C. 1301(i)) is amended by striking ‘‘2003’’ and 
inserting ‘‘2013’’. 
TITLE IV—CLEAN WATER TRUST 
FUND 
SEC. 4001. ESTABLISHMENT OF CLEAN WATER TRUST 
FUND. 
Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 (relating to the establishment of trust funds) 
is amended by adding at the end the following 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 
the Fund as provided in this section or section 9602(b). 
‘‘(b) TRANSFERS TO TRUST FUND.—There are here-
by appropriated to the Clean Water Trust Fund amounts 
equivalent to— 
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‘‘(1) fees, taxes, or other sources of revenue 
specifically collected and deposited in the Fund or 
received in the Treasury for the purposes provided 
in this section; and 
‘‘(2) any penalty paid pursuant to section 309 
of the Federal Water Pollution Control Act (33 
U.S.C. 1319) (other than those that result of viola-
tions of section 311 of such Act). 
‘‘(c) APPROPRIATION OF ADDITIONAL SUMS.—There 
are hereby authorized to be appropriated to the Clean 
Water Trust Fund such additional sums as may be re-
quired to make the expenditures referred to in subsection 
(d). 
‘‘(d) EXPENDITURES.—Amounts in the Clean Water 
Trust Fund shall be available, as provided in appropria-
tions Acts, for the following purposes: 
‘‘(1) Capitalization grants under section 601 of 
the Federal Water Pollution Control Act (33 U.S.C. 
1381). 
‘‘(2) Grants to States and interstate agencies 
under section 106(a) of that Act (33 U.S.C. 
1256(a)). 
‘‘(3) Grants under sections 104(b) and 104(g) 
of that Act (33 U.S.C. 1254(b) and 1254(g)). 
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‘‘(4) To cover the cost of making direct loans 
or guaranteeing obligations authorized under the 
Water Pollution Control Investment Act.’’. 
SEC. 4002. ALLOCATION OF FUNDS. 
Title VI (as amended by section 1307 of this Act) 
is further amended by inserting after section 608 the fol-
lowing: 
‘‘SEC. 609. CLEAN WATER TRUST FUND. 
‘‘(a) ALLOCATION OF FUNDS.—The Administrator 
shall allocate funds made available for a fiscal year out 
of the Clean Water Trust Fund established by section 
9512 of the Internal Revenue Code of 1986 among eligible 
programs and activities as follows: 
‘‘(1) 80 percent for capitalization grants under 
section 604. 
‘‘(2) 10 percent to cover the cost of making di-
rect loans or guaranteeing obligations authorized 
under the Water Pollution Control Investment Act. 
‘‘(3) 7.5 percent for grants to States and inter-
state agencies under section 106(a). 
‘‘(4) 2.5 percent for grants under sections 
104(b) and 104(g). 
‘‘(b) AMOUNTS MADE AVAILABLE FOR CAPITALIZA-
TION GRANTS.—To the extent there are sufficient applica-
tions, not less than 30 percent of the amounts allocated 
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for capitalization grants under subsection (a)(1) shall be 
used for one or more of the following purposes: 
‘‘(1) Projects or activities to address green in-
frastructure. 
‘‘(2) Water or energy efficiency improvements 
or other environmentally innovative activities. 
‘‘(3) The implementation of best management 
practices or measures identified in an approved 
nonpoint source management program under section 
319.’’. 
SEC. 4003. REVENUES FOR CLEAN WATER TRUST FUND. 
(a) STUDY ON IDENTIFICATION OF REVENUES.—Not 
later than 45 days after the date of enactment of this Act, 
the Director of the Congressional Budget Office, in con-
sultation with the Administrator of the Environmental 
Protection Agency and the Secretary of the Treasury, 
shall undertake a study of potential funding mechanisms 
and revenue sources for the Clean Water Trust Fund es-
tablished by section 9512(d) of the Internal Revenue Code 
of 1986 (as added by this Act) that are sufficient to sup-
port annual funding levels of at least $10,000,000,000 for 
the purposes identified in section 9512(d) of that Act. 
(b) CONDUCT OF STUDY.—In carrying out the study, 
the Director shall— 
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