I
104TH CONGRESS
1ST SESSION
H. R. 2747
To direct the Administrator of the Environmental Protection Agency to make
grants to States for the purpose of financing the construction, rehabilita-
tion, and improvement of water supply systems, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
DECEMBER 7, 1995
Mr. SHUSTER (for himself, Mr. OBERSTAR, Mr. BOEHLERT, Mr. BORSKI, Mr.
CLINGER, Mr. RAHALL, Mr. PETRI, Mr. LIPINSKI, Mr. WISE, Mr. TRAFI-
CANT, Mr. HAYES, Mr. COBLE, Mr. ZELIFF, Mr. COSTELLO, Mr.
POSHARD, Mr. HUTCHINSON, Mr. CRAMER, Mr. BAKER of California,
Miss COLLINS of Michigan, Ms. NORTON, Mr. HORN, Mr. FRANKS of
New Jersey, Ms. DANNER, Mr. BLUTE, Mr. QUINN, Mrs. FOWLER, Mr.
BARCIA, Mr. EHLERS, Mr. BACHUS, Mr. TUCKER, Ms. EDDIE BERNICE
JOHNSON of Texas, Mr. WAMP, Mr. BREWSTER, Mr. LATHAM, Mr.
LATOURETTE, Mr. MASCARA, Mrs. SEASTRAND, Mr. LAHOOD, Mr. MAR-
TINI, and Mr. MCHALE) introduced the following bill; which was referred
to the Committee on Transportation and Infrastructure
A BILL
To direct the Administrator of the Environmental Protection
Agency to make grants to States for the purpose of
financing the construction, rehabilitation, and improve-
ment of water supply systems, 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.
This Act may be cited as the ‘‘Water Supply Infra-
structure Assistance Act of 1995’’.
SEC. 2. PURPOSES.
The purposes of this Act are as follows:
(1) To provide grants for establishment of
State revolving funds for the purpose of providing fi-
nancial and technical assistance for the construction,
rehabilitation, and improvement of water supply sys-
tems, including treatment to remove pollutants from
navigable waters for the purpose of making such wa-
ters useable by water supply systems and for source
water quality protection programs.
(2) To provide for administrative efficiencies
through implementation of this Act relying on exist-
ing mechanisms of State water pollution control re-
volving loan fund programs established pursuant to
title VI of the Federal Water Pollution Control Act.
SEC. 3. LIMITATION ON STATUTORY CONSTRUCTION.
Nothing in this Act shall be construed as affecting
the requirements of title XIV of the Public Health Service
Act (42 U.S.C. 300f–300j–9), commonly referred to as the
Safe Drinking Water Act.
SEC. 4. GRANTS TO STATES.
Subject to the provisions of this Act, the Adminis-
trator shall make grants to each State for the purpose
of establishing a water supply infrastructure account in
the State water pollution control revolving loan fund pro-
grams established pursuant to title VI of the Federal
Water Pollution Control Act, if any, to provide assistance
for the construction, rehabilitation, and improvement of
water supply systems.
SEC. 5. GRANT AGREEMENTS.
(a) GENERAL RULE.—To receive a grant with funds
made available under this Act, a State shall enter into an
agreement with the Administrator which shall include, but
not be limited to, the specifications set forth in subsection
(b) of this section.
(b) SPECIFIC REQUIREMENTS.—The Administrator
shall enter into an agreement under this section with a
State only after the State has established to the satisfac-
tion of the Administrator that—
(1) the State will accept grant payments with
funds to be made available under this Act and will
deposit all such payments in the water supply infra-
structure account established by the State in accord-
ance with this Act;
(2) if the State has a water pollution control re-
volving fund established in accordance with title VI
of the Federal Water Pollution Control Act, the
State will establish the water supply infrastructure
account as a separate account in such fund;
(3) the State will deposit in the water supply
infrastructure account from State moneys an
amount equal to at least 20 percent of the total
amount of all grants which will be made to the State
with funds to be made available under this Act on
or before the date on which each grant payment will
be made to the State under this Act;
(4) the State will enter into binding commit-
ments to provide assistance in accordance with the
requirements of this Act an amount equal to 120
percent of the amount of each such grant payment
within 1 year after the receipt of such grant pay-
ment;
(5) the State will not make available any assist-
ance from the account unless the State has first de-
termined that the applicant—
(A) has adopted or will adopt a system of
charges to ensure that each recipient of water
supply services within the applicant’s jurisdic-
tion will pay its proportionate share of the cost
of operation and maintenance (including re-
placement) of any such services provided by the
applicant; and
(B) has legal, institutional, managerial,
and financial capability to ensure adequate con-
struction, operation, and maintenance of water
supply systems throughout the applicant’s juris-
diction;
(6) the State will take such action as may be
necessary to ensure that, after construction, rehabili-
tation, and improvement of a water supply system
undertaken with funds directly made available by
grants under this Act, such system will provide
water supply services at the most economical cost;
and
(7) the State will make annual reports to the
Administrator on the actual use of funds in accord-
ance with section 606(d) of the Federal Water Pol-
lution Control Act.
SEC. 6. INCORPORATION OF FWPCA BY REFERENCE.
(a) GENERAL RULE.—The provisions of title VI of
the Federal Water Pollution Control Act shall apply as
provided in this Act to accounts established by States
under this Act. For purposes of this Act, any reference
to the Federal Water Pollution Control Act and to any
section thereof shall be treated as a reference to such Act
or section as in effect on the date of the enactment of
this Act.
(b) TYPES OF ASSISTANCE.—Section 603(d) of the
Federal Water Pollution Control Act shall apply to ac-
counts established by States under this Act to the same
extent and in the same manner as such section applies
to water pollution control revolving funds under such Act;
except that the percentage of grant awards available for
administrative expenses under paragraph (7) of such sec-
tion shall be 5 percent instead of 4 percent.
(c) CORRECTIVE ACTION.—Section 605 of such Act
shall apply to a State’s agreement with the Administrator
under this Act and to requirements of this Act to the same
extent and in the same manner as such section applies
to a State’s agreement under section 602 of such Act and
the requirements of title VI of such Act.
(d) AUDITS, REPORTS, AND FISCAL CONTROLS.—
Subsections (a), (b), (d), and (e) of section 606 of such
Act shall apply to a State establishing an account under
this Act and to such account to the same extent and in
the same manner as such subsections apply to a State es-
tablishing a water pollution control revolving fund under
title VI of such Act and to such fund.
SEC. 7. WATER SUPPLY INFRASTRUCTURE REVOLVING
LOAN FUNDS.
(a) REQUIREMENTS
FOR OBLIGATION
OF GRANT
FUNDS.—Before a State may receive a grant with funds
made available under this Act, the State shall first estab-
lish a water supply infrastructure account which complies
with the requirements of this Act.
(b) ADMINISTRATOR.—Each State water supply in-
frastructure account shall be administered by an instru-
mentality of the State with such powers and limitations
as may be required to operate such account in accordance
with the requirements and objectives of this Act.
(c) PROJECTS ELIGIBLE
FOR ASSISTANCE.—The
amounts of funds available to each State water supply in-
frastructure account shall be used only for providing fi-
nancial assistance for construction, rehabilitation, and im-
provement of a water supply system and for providing the
types of assistance authorized by subsection (d). The ac-
count shall be established, maintained, and credited with
repayments, and the account balance shall be available in
perpetuity for providing such assistance.
(d) TYPES OF ASSISTANCE.—In addition to the types
of assistance which may be made available under section
603(d) of the Federal Water Pollution Control Act from
a water supply infrastructure account of a State under
this Act—
(1) such account may be used to provide tech-
nical assistance with respect to construction, reha-
bilitation, and improvement of water supply systems;
(2) the interest derived from funds in such ac-
count or from loans made from such account may be
used by the State to make grants to pay up to 50
percent of the cost of construction, rehabilitation,
and improvement of a water supply system; and
(3) up to 10 percent of the funds in such ac-
count may be used to provide assistance, consistent
with nonpoint source management programs estab-
lished under section 319 of the Federal Water Pollu-
tion Control Act, for source water quality protection
programs to address pollutants in navigable waters
for the purpose of making such waters useable by
water supply systems.
SEC. 8. ALLOTMENT OF FUNDS.
(a) FISCAL YEAR 1996.—Sums authorized to be ap-
propriated pursuant to this Act for fiscal year 1996 shall
be allotted for such year by the Administrator not later
than the 10th day which begins after the date of the enact-
ment of this Act. Sums authorized for such fiscal year
shall be allotted in accordance with the following table:
States:
Percentages:
Alabama .......................................................................................
0.98
Alaska ..........................................................................................
2.34
Arizona .........................................................................................
1.36
Arkansas ......................................................................................
0.98
California .....................................................................................
6.27
Colorado .......................................................................................
1.35
Connecticut ..................................................................................
1.73
Delaware ......................................................................................
0.63
District of Columbia ....................................................................
0.52
Florida .........................................................................................
3.72
Georgia .........................................................................................
2.10
Hawaii ..........................................................................................
0.60
Idaho ............................................................................................
1.13
Illinois ..........................................................................................
3.16
Indiana .........................................................................................
2.10
Iowa .............................................................................................
1.36
Kansas .........................................................................................
1.12
Kentucky ......................................................................................
0.95
Louisiana .....................................................................................
1.65
Maine ...........................................................................................
1.00
Maryland ......................................................................................
1.42
Massachusetts ..............................................................................
1.15
Michigan ......................................................................................
4.93
Minnesota .....................................................................................
3.47
Mississippi ....................................................................................
1.32
Missouri .......................................................................................
1.77
Montana .......................................................................................
1.19
Nebraska ......................................................................................
1.02
Nevada .........................................................................................
0.85
New Hampshire ...........................................................................
1.09
New Jersey ..................................................................................
2.28
New Mexico ..................................................................................
1.01
New York .....................................................................................
4.90
North Carolina .............................................................................
3.80
North Dakota ...............................................................................
0.76
Ohio .............................................................................................
3.55
Oklahoma .....................................................................................
1.41
Oregon .........................................................................................
1.53
Pennsylvania ................................................................................
4.41
Rhode Island ................................................................................
0.61
South Carolina .............................................................................
1.18
South Dakota ...............................................................................
0.82
Tennessee .....................................................................................
1.01
Texas ............................................................................................
5.81
Utah .............................................................................................
0.87
Vermont .......................................................................................
0.81
Virginia ........................................................................................
2.41
Washington ..................................................................................
2.55
West Virginia ...............................................................................
0.98
Wisconsin .....................................................................................
3.42
Wyoming ......................................................................................
0.81
American Samoa ..........................................................................
0.18
Guam ...........................................................................................
0.17
Northern Marianas ......................................................................
0.17
Puerto Rico ..................................................................................
0.81
Pacific Trust Territories ..............................................................
0.17
Virgin Islands ..............................................................................
0.31.
(b) FISCAL YEARS 1997 AND 1998.—Sums author-
ized to be appropriated pursuant to this Act for each of
fiscal years 1997 and 1998 shall be allotted by the Admin-
istrator in accordance with the relative needs of the States
for construction, rehabilitation, and improvement of water
supply systems as determined by the Administrator, in
consultation with the States.
(c) RESERVATION OF FUNDS FOR INDIAN TRIBES.—
Notwithstanding subsections (a) and (b), the Adminis-
trator shall reserve for each fiscal year not to exceed 1.5
percent of the amount made available to carry out this
Act for such fiscal year for the purpose of making grants
to Indian tribes for construction, rehabilitation, and im-
provement of water supply systems.
(d) ALLOTMENT PERIOD.—
(1) PERIOD
OF
AVAILABILITY
FOR
GRANT
AWARD.—Sums allotted to a State under this section
for a fiscal year shall be available for obligation by
the State during the fiscal year for which sums are
authorized and during the following fiscal year; ex-
cept that for sums allotted in fiscal year 1996, such
period of availability shall be fiscal years 1996
through 1998.
(2) REALLOTMENT OF UNOBLIGATED FUNDS.—
The amount of any allotment not obligated by the
State by the last day of the period of availability es-
tablished by paragraph (1) shall be immediately re-
allotted by the Administrator on the basis of the
same ratio as is applicable to sums allotted under
this Act for the second fiscal year of such period.
None of the funds reallotted by the Administrator
shall be reallotted to any State which has not obli-
gated all sums allotted to such State in the first fis-
cal year of such period.
SEC. 9. DETERMINATION OF PRIORITY.
Each State establishing a water supply infrastructure
account shall determine the priority to be given projects
for construction, rehabilitation, and improvement of water
supply systems within the boundaries of the State taking
into account the relative financial and other needs for such
construction, rehabilitation, and improvement.
SEC. 10. NEEDS SURVEY.
(a) IN GENERAL.—The Administrator, in cooperation
with the States, shall make—
(1) a detailed estimate, biennially revised, of the
cost of needed construction, rehabilitation, and im-
provement of water supply systems in all of the
States and of the cost of needed construction in each
of the States; and
(2) a comprehensive study of the economic im-
pact on affected units of government of the cost of
installation of water supply systems and parts there-
of.
(b) SUBMISSION TO CONGRESS.—The Administrator
shall submit the detailed estimate and the comprehensive
study of costs under subsection (a) to Congress no later
than January 1, 1998, and January 1 of each even-num-
bered year thereafter. The Administrator shall also submit
recommendations for allotment of funds under this Act to
the States based on such estimates and on such additional
factors as the Administrator deems appropriate, including
financial need. Whenever the Administrator, pursuant to
this section, requests and receives an estimate of cost from
a State, the Administrator shall furnish copies of such es-
timate together with such detailed estimate to Congress.
SEC. 11. BUY AMERICAN.
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that a recipient of assistance under this Act should
purchase American-made equipment and products.
(b) NOTICE.—The Administrator shall provide to
each recipient of assistance under this Act a notice de-
scribing the sense of Congress set forth in subsection (a).
SEC. 12. DEFINITIONS.
In this Act, the following definitions apply:
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency.
(2) INDIAN TRIBE.—The term ‘‘Indian tribe’’
has the meaning such term has under section 518
of the Federal Water Pollution Control Act and in-
cludes Alaska Native Villages and former Indian res-
ervations in Oklahoma.
(3) STATE.—The term ‘‘State’’ means a State,
the District of Columbia, the Commonwealth of
Puerto Rico, the Virgin Islands, Guam, American
Samoa, the Commonwealth of the Northern Mariana
Islands, and the Trust Territory of the Pacific Is-
lands.
(4) WATER SUPPLY SYSTEM.—The term ‘‘water
supply system’’ means a system (owned by a govern-
mental entity, a nonprofit organization, or any other
private person regulated by a State public utility
commission and having the greatest public need for
assistance under this Act) for the provision to the
public of piped water for human consumption, if
such system has at least 15 service connections or
regularly serves at least 25 individuals. Such term
includes (A) any collection, treatment, storage, and
distribution facilities under control of the operator of
such system and used primarily in connection with
such system, and (B) any collection or pretreatment
facilities not under such control that are used pri-
marily in connection with such system.
SEC. 13. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for purposes
of this Act the following sums:
(1) $500,000,000 for fiscal year 1996;
(2) $750,000,000 for fiscal year 1997; and
(3) $1,000,000,000 for fiscal year 1998.
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