is the protection, preservation, or enhancement of 
water quality, including— 
‘‘(A) piping or lining an irrigation canal; 
‘‘(B) recovery or recycling of wastewater or 
runoff from irrigation; 
‘‘(C) irrigation scheduling; 
‘‘(D) measurement or metering of water 
use; 
‘‘(E) installation of water conservation 
measures by public utilities; 
‘‘(F) improving on-field irrigation effi-
ciency; or 
‘‘(G) measures to enable customers to 
make more efficient use of treated water. 
‘‘(8) for measures to increase the security of 
publicly owned treatment works; and 
‘‘(9) for the development and implementation of 
watershed projects meeting the criteria set forth in 
section 122.’’. 
(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’’. 
(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 assistance will de-
velop 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; and 
‘‘(iii) a plan for maintaining, repair-
ing, and, as necessary, replacing that por-
tion of the treatment works and a plan for 
funding such activities.’’. 
(d) EXPENSES
OF
ADMINISTERING
THE
STATE 
FUND.—Section 603(d)(7) (33 U.S.C. 1383(d)(7)) is 
amended by inserting before the period at the end the fol-
lowing: ‘‘, $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) TYPES
OF ASSISTANCE.—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 owners and operators of treat-
ment works that serve a population of 20,000 or 
fewer with technical and planning assistance and as-
sistance in financial management, user fee analysis, 
budgeting, capital improvement planning, facility op-
eration and maintenance, repair schedules, and other 
activities to improve wastewater treatment plant 
management and operations; except that such
amounts shall not exceed 2 percent of grant awards 
to such fund under this title; and 
‘‘(9) to make grants to States for high priority 
partnership projects under section 608 on the condi-
tion that the requirements of paragraph (1)(E) are 
met in the case of any grant by a State for the re-
pair, replacement, or expansion of a treatment 
works.’’. 
(f) AFFORDABILITY CRITERIA.—Section 603 (33 
U.S.C. 1383) is amended by adding at the end the fol-
lowing: 
‘‘(i) AFFORDABILITY CRITERIA.— 
‘‘(1) ESTABLISHMENT.—On or before Sep-
tember 30, 2007, and after providing notice and an 
opportunity for public comment, a State shall estab-
lish affordability criteria to assist in identifying mu-
nicipalities that would experience a significant hard-
ship raising the revenue necessary to finance a 
project or activity eligible for assistance under sec-
tion 603(c)(1) if additional subsidization is not pro-
vided. Such criteria shall be based on income data, 
population trends, and other data determined rel-
evant by the State. 
‘‘(2) EXISTING CRITERIA.—If a State has pre-
viously established, after providing notice and an op-