igible entities located in the State for
which a grant under this section may be
used); and
‘‘(ii) assisting eligible entities in—
‘‘(I) assessing needs relating to
eligible activities;
‘‘(II) identifying available sources
of funding to meet the cost-sharing
requirement of subsection (f); and
‘‘(III) planning, implementing,
and maintaining any eligible activities
of the eligible entities that receive
funding under this section;
‘‘(B) require each nonprofit technical as-
sistance organization that receives funds under
subparagraph (A) to consult with the State,
through the head of the small public water as-
sistance program, before carrying out any activ-
ity for the purposes described in subclauses (I)
and (III) of subparagraph (A)(ii); and
‘‘(C) require that none of the funds made
available to a nonprofit technical assistance or-
ganization under subparagraph (A) be used to
pay lobbying expenses; and
‘‘(3) may use not to exceed 1 percent of the
funds allocated to the State to pay reasonable costs
incurred in the administration of the small public
water system assistance program.
‘‘(d) LIMITATION ON USE OF FUNDS.—For each fis-
cal year, not more than 5 percent of the funds received
by an eligible entity under this section may be used to
obtain technical assistance in planning, implementing, and
maintaining eligible activities that are funded under this
section.
‘‘(e) LIMITATION ON RECEIPT OF FUNDS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a grant under this section shall not be
provided to an eligible entity that, as determined by
the State—
‘‘(A) does not have the technical, manage-
rial, and financial capability to ensure compli-
ance with national primary drinking water reg-
ulations applicable to the eligible entity under
section 1412; or
‘‘(B) is in significant noncompliance with
any applicable national primary drinking water
regulation.
‘‘(2) EXCEPTION FOR RECEIPT OF GRANT.—An
eligible entity described in paragraph (1) may re-
ceive a grant under this section only—
‘‘(A) if the State determines that use of
the grant will ensure compliance with national
primary drinking water regulations applicable
to the eligible entity under section 1412;
‘‘(B)(i) to restructure or consolidate the
facility to achieve compliance with applicable
national primary drinking water regulations; or
‘‘(ii) in a case in which restructuring or
consolidation of the facility is not practicable, if
the State determines that—
‘‘(I) the eligible entity has made a
good faith effort to achieve compliance
with applicable national primary drinking
water regulations; and
‘‘(II) the eligible entity is adhering to
an enforceable schedule for achieving those
regulations; and
‘‘(C) in a case in which paragraph (1)(A)
applies to an eligible entity, and the eligible en-
tity agrees to undertake feasible and appro-
priate changes in operations (including changes
in ownership, management, accounting, rates,
maintenance, consolidation, provision of an al-
ternative water supply, or other procedures), if
the State determines that the measures are nec-
essary to ensure that the eligible entity has the
technical, managerial, and financial capability
to comply with applicable national primary
drinking water regulations over the long term.
‘‘(3) REVIEW.—Before providing assistance
under this section to an eligible entity that is in sig-
nificant noncompliance with any national primary
drinking water regulation applicable to the eligible
entity under section 1412, the State shall conduct a
review to determine whether paragraph (1)(A) ap-
plies to the entity.
‘‘(f) COST SHARING.—
‘‘(1) IN GENERAL.—
‘‘(A) LIMIT.—Except as provided in para-
graph (2), the share of the total cost of an eligi-
ble activity funded by a grant under this section
shall not exceed 80 percent.
‘‘(B) USE OF OTHER FEDERAL FUNDS.—
To pay the portion of an eligible activity that
may not be funded by a grant under this sec-
tion, an eligible entity may use Federal finan-
cial assistance other than assistance received
under this section.
‘‘(2) WAIVER
OF
COST-SHARING
REQUIRE-
MENT.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), a State may waive the requirement
of an eligible entity to pay all or a portion of
the share of an eligible activity that may not be
funded by a grant under this section, based on
a determination by the State that the eligible
entity is unable to pay any or all of the share.
‘‘(B) LIMITATION.—For each fiscal year in
which a State receives funding under this sec-
tion, the total amount of cost-share waivers
provided by the State under subparagraph (A)
shall not exceed 30 percent of the amount of
funding received by the State for the fiscal year
under section 1472(c)(1).
‘‘(g) UNOBLIGATED FUNDS.—Any funds not obli-
gated by the State for a purpose consistent with sub-
section (c) within 1 year after the date of the allocation
of the funds by the Administrator under section 1472(c)
shall be returned to the Administrator for reallocation
under that section.
‘‘(h) REPORTS.—Not later than November 1 fol-
lowing each fiscal year in which a State receives funding
under this section, the State shall—
‘‘(1) submit to the Administrator a report that,
for the preceding fiscal year—
‘‘(A) lists the eligible activities for eligible
entities, as prepared under subsection (b);
‘‘(B) identifies the number of grants
awarded by the State small public water system
assistance program to eligible entities;
‘‘(C) identifies each eligible entity that re-
ceived a grant to carry out an eligible activity;
‘‘(D) identifies the amount of each grant
provided to an eligible entity to carry out an eli-
gible activity; and
‘‘(E) describes each eligible activity funded
by such grants (including the status of the eli-
gible activity); and
‘‘(2) make the report under paragraph (1)
available to the public.
‘‘SEC. 1474. SMALL PUBLIC WATER SYSTEM ASSISTANCE
PROGRAM FOR INDIAN TRIBES.
‘‘(a) ESTABLISHMENT.—Not later than July 1, 2002,
the Administrator shall establish a small public water sys-
tem assistance program for Indian Tribes, through which
eligible entities located in areas governed by the Indian
Tribe may receive grants for eligible activities under this
part.
‘‘(b) PROGRAM PRIORITY REQUIREMENT.—
‘‘(1) LIST OF ELIGIBLE ACTIVITIES.—
‘‘(A) IN
GENERAL.—The Administrator,
acting through the head of the small public
water system assistance program for Indian
Tribes, in consultation with the Secretary, shall,
for each fiscal year, identify, and, using the pri-
ority criteria described in paragraph (2) and
considering the additional criteria described in
paragraph (3), list in descending order of pri-
ority, eligible activities for eligible entities lo-
cated in areas governed by Indian Tribes for
which funds provided from a grant under this
part may be used.
‘‘(B) COORDINATION.—
‘‘(i) IN GENERAL.—To the maximum
extent practicable, the Administrator shall
ensure that the list under subparagraph
(A) is coordinated with any needs assess-
ment conducted under section 1452(i)(4).
‘‘(ii) ADDITIONAL CONSIDERATION.—
Any additional financial needs of small
public water systems located in areas gov-
erned by Indian Tribes that are associated
with the cost of complying with a national
primary drinking water regulation (includ-
ing a regulation concerning arsenic) that is
promulgated after the most recent needs
survey conducted under section 1452(i)(4)
shall be factored into the determination of
financial need for, and prioritization of, eli-
gible activities under this section.
‘‘(2) PRIORITY CRITERIA.—In preparing the list
under paragraph (1), the Administrator shall give
priority for the use of grants to eligible activities
that—
‘‘(A) address the most serious risk to
human health;
‘‘(B) are necessary to ensure compliance
with national primary water regulations appli-
cable to eligible entities under section 1412;
and
‘‘(C) assist systems most in need, as cal-
culated on the basis of median household in-
come, under affordability criteria published by
the Administrator under section 1452(d)(3).
‘‘(3) ADDITIONAL
CRITERIA.—In addition to
the priority criteria described in paragraph (2), the
Administrator shall, in preparing a list under para-
graph (1), consider giving additional priority to any
listed eligible activities that are to be carried out by
communities that form management cooperatives
(including management cooperatives between sys-
tems that do not have connections).
‘‘(c) USE OF FUNDS.—
‘‘(1) IN
GENERAL.—Using funds allocated
under section 1472(c)(2)(A), the small public water
system assistance program established under sub-
section (a) shall provide to an eligible entity located
in an area governed by an Indian Tribe, on a cost-
shared basis, a grant to be used for an eligible activ-
ity (including source water protection) the purpose
of which is compliance with national primary drink-
ing water regulations applicable to the eligible entity
under section 1412.
‘‘(2) ALLOCATION
OF
GRANT
FUNDING.—For
each fiscal year, taking into consideration the fund-
ing allocation under section 1472(c)(2)(A) for the
fiscal year, the head of the small public water assist-
ance program established under subsection (a), in
consultation with the Secretary, shall provide grants
under paragraph (1) for the maximum number of el-
igible activities for which the funding allocation
makes assistance available, based on the priority as-
signed by the Administrator to eligible activities
under subsection (b).
‘‘(d) LIMITATION ON USE OF FUNDS.—For each fis-
cal year, not more than 5 percent of the funds received
by an eligible entity under this section may be used to
obtain technical assistance in planning, implementing, and
maintaining eligible activities that are funded under this
section.
‘‘(e) LIMITATION ON RECEIPT OF FUNDS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a grant under this section shall not be
provided to an eligible entity that, as determined by
the Administrator—
‘‘(A) does not have the technical, manage-
rial, and financial capability to ensure compli-
ance with national primary drinking water reg-
ulations applicable to the eligible entity under
section 1412; or
‘‘(B) is in significant noncompliance with
any applicable national primary drinking water
regulation.
maintenance, consolidation, provision of an al-
ternative water supply, or other procedures), if
the Administrator determines that the measures
are necessary to ensure that the eligible entity
has the technical, managerial, and financial ca-
pability to comply with applicable national pri-
mary drinking water regulations over the long
term.
‘‘(3) REVIEW.—Before providing assistance
under this section to an eligible entity that is in sig-
nificant noncompliance with any national primary
drinking water regulation applicable to the eligible
entity under section 1412, the Administrator shall
conduct a review to determine whether paragraph
(1)(A) applies to the entity.
‘‘(f) COST SHARING.—
‘‘(1) IN GENERAL.—
‘‘(A) LIMIT.—Except as provided in para-
graph (2), the share of the total cost of an eligi-
ble activity funded by a grant under this section
shall not exceed 80 percent.
‘‘(B) USE OF OTHER FEDERAL FUNDS.—
To pay the portion of an eligible activity that
may not be funded by a grant under this sec-
tion, an eligible entity may use Federal finan-
cial assistance other than assistance received
under this section.
‘‘(2) WAIVER
OF
COST-SHARING
REQUIRE-
MENT.—
‘‘(A) IN
GENERAL.—The Administrator
may waive the requirement of an eligible entity
to pay all or a portion of the share of eligible
activity that may not be funded by a grant
under this section based on a determination by
the Administrator that the eligible entity is un-
able to pay any or all of the share.
‘‘(B) LIMITATION.—For each fiscal year,
the total amount of cost-share waivers provided
by the Administrator under subparagraph (A)
shall not exceed 30 percent of the amount of
funding allocated to eligible entities located in
areas governed by Indian Tribes for the fiscal
year under section 1472(c)(2)(A).
‘‘(g) UNOBLIGATED FUNDS.—Any funds not obli-
gated by the small public water system assistance program
established under subsection (a) for a purpose consistent
with section 1472(c)(2)(B) and subsection (c) within 1
year after the date of allocation of the funds by the Ad-
ministrator under section 1472(c)(2)(A) shall be returned
to the Administrator for reallocation under that section.
‘‘(h) REPORTS.—Not later than November 1 fol-
lowing each fiscal year in which an Indian Tribe receives
funding under this section, the Indian Tribe shall submit
to the Administrator a report that, for the preceding fiscal
year—
‘‘(1) identifies the number of grants awarded to
eligible entities located in areas governed by the In-
dian Tribe;
‘‘(2) identifies each such eligible entity that re-
ceived a grant to carry out an eligible activity;
‘‘(3) identifies the amount of each grant pro-
vided to such an eligible entity to carry out an eligi-
ble activity; and
‘‘(4) describes each eligible activity funded by
such grants (including the status of the eligible ac-
tivity).
‘‘SEC. 1475. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
this part $750,000,000 for each of fiscal years 2002
through 2006.’’.
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