processes, materials, and techniques for car-
rying out the proposed project or activity for 
which assistance is sought under this title, and 
has selected, to the extent practicable, a project 
or activity that more efficiently uses energy and 
natural and financial resources or provides 
greater environmental benefits; and 
‘‘(B) has considered the cost and effective-
ness of alternative management and financing 
approaches (including, as appropriate, rate 
structures, issuance of bonds, restructuring, re-
gional alternatives, consolidation, and public- 
private partnerships) for carrying out a project 
or activity for which assistance is sought under 
this title, taking into account the cost of oper-
ating and maintaining the project or activity 
over its life, as well as the cost of constructing 
the project or activity; 
‘‘(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, 2007, 
to provide assistance to municipalities of fewer than 
20,000 individuals that meet the affordability cri-
teria established by the State under section 
603(i)(2) for activities included on the State’s pri-
ority list established under section 603(g), to the ex-
tent that there are sufficient applications for such 
assistance; 
‘‘(15) treatment works eligible under section 
603(c)(1) that will be constructed in whole or in 
part with funds directly made available by capitaliza-
tion grants under this title and section 205(m) will 
meet the requirements of, or otherwise be treated 
(as determined by the Governor of the State) under 
sections 204(b)(1), 211, 218, and 511(c)(1) in the 
same manner as treatment works constructed with 
assistance under title II of this Act; and 
‘‘(16) contracts and subcontracts to be carried 
out using funds under this title for program man-
agement, construction management, planning stud-
ies, feasibility studies, architectural services, prelimi-
nary engineering, design, engineering, surveying, 
mapping, and related services shall be awarded in 
the same manner as contracts for architectural and 
engineering services are awarded under chapter 11 
of title 40, United States Code, or an equivalent 
qualifications-based method of selection (as deter-
mined by the Governor of the State).’’.
SEC. 303. 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 the implementation of lake protection 
programs and projects under section 314; 
‘‘(5) for repair or replacement of decentralized 
wastewater treatment systems that treat domestic 
sewage; 
‘‘(6) for measures to manage or reduce munic-
ipal stormwater runoff; 
‘‘(7) to any public entity for a water conserva-
tion project or activity the primary purpose of which