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(c) GUIDANCE FOR SMALL SYSTEMS.—Section 602
(33 U.S.C. 1382) is amended by adding at the end the
following new subsection:
‘‘(d) GUIDANCE FOR SMALL SYSTEMS.—
‘‘(1) SIMPLIFIED PROCEDURES.—Not later than
1 year after the date of the enactment of this sub-
section, the Administrator shall assist the States in
establishing simplified procedures for small systems
to obtain assistance under this title.
‘‘(2) PUBLICATION
OF
MANUAL.—Not later
than 1 year after the date of the enactment of this
subsection, and after providing notice and oppor-
tunity for public comment, the Administrator shall
publish a manual to assist small systems in obtain-
ing assistance under this title and publish in the
Federal Register notice of the availability of the
manual.
‘‘(3) SMALL SYSTEM DEFINED.—For purposes
of this title, the term ‘small system’ means a system
for which a municipality or intermunicipal, inter-
state, or State agency seeks assistance under this
title and which serves a population of 20,000 or
less.’’.
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SEC. 603. WATER POLLUTION CONTROL REVOLVING LOAN
FUNDS.
(a) ACTIVITIES ELIGIBLE FOR ASSISTANCE.—Sec-
tion 603(c) (33 U.S.C. 1383(c)) is amended to read as
follows:
‘‘(c) ACTIVITIES ELIGIBLE FOR ASSISTANCE.—
‘‘(1) IN
GENERAL.—The amounts of funds
available to each State water pollution control re-
volving fund shall be used only for providing finan-
cial assistance to activities which have as a principal
benefit the improvement or protection of water qual-
ity 
of 
navigable 
waters 
to 
a 
municipality,
intermunicipal agency, interstate agency, State agen-
cy, or other person. Such activities may include the
following:
‘‘(A) Construction of a publicly owned
treatment works if the recipient of such assist-
ance is a municipality.
‘‘(B) Implementation of lake protection
programs and projects under section 314.
‘‘(C) Implementation of a management
program under section 319.
‘‘(D) Implementation of a conservation and
management plan under section 320.
‘‘(E) Implementation of a watershed man-
agement plan under section 321.
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‘‘(F) Implementation of a stormwater
management program under section 322.
‘‘(G) Acquisition of property rights for the
restoration or protection of publicly or privately
owned riparian areas.
‘‘(H) Implementation of measures to im-
prove the efficiency of public water use.
‘‘(I) Development and implementation of
plans by a public recipient to prevent water pol-
lution.
‘‘(J) Acquisition of lands necessary to meet
any mitigation requirements related to con-
struction of a publicly owned treatment works.
‘‘(2) FUND
AMOUNTS.—The water pollution
control revolving fund of a State shall be established,
maintained, and credited with repayments, and the
fund balance shall be available in perpetuity for pro-
viding financial assistance described in paragraph
(1). Fees charged by a State to recipients of such
assistance may be deposited in the fund for the sole
purpose of financing the cost of administration of
this title.’’.
(b) EXTENDED REPAYMENT PERIOD FOR DISADVAN-
TAGED COMMUNITIES.—Section 603(d)(1) (33 U.S.C.
1383(d)(1)) is amended—
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(1) in subparagraph (A) by inserting after ‘‘20
years’’ the following: ‘‘or, in the case of a disadvan-
taged community, the lesser of 40 years or the ex-
pected life of the project to be financed with the pro-
ceeds 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) LOAN GUARANTEES
FOR INNOVATIVE TECH-
NOLOGY.—Section 603(d)(5) (33 U.S.C. 1383(d)(5)) is
amended to read as follows:
‘‘(5) to provide loan guarantees for—
‘‘(A) similar revolving funds established by
municipalities or intermunicipal agencies; and
‘‘(B) developing and implementing innova-
tive technologies.’’.
(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: ‘‘or $400,000 per year
or 1⁄2 percent per year of the current valuation of such
fund, whichever is greater, plus the amount of any fees
collected by the State for such purpose under subsection
(c)(2)’’.
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(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 ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(8) to provide to small systems technical and
planning assistance and assistance in financial man-
agement, user fee analysis, budgeting, capital im-
provement planning, facility operation and mainte-
nance, repair schedules, and other activities to im-
prove wastewater treatment plant operations; except
that such amounts shall not exceed 2 percent of all
grant awards to such fund under this title.’’.
(f) 
CONSISTENCY
WITH
PLANNING
REQUIRE-
MENTS.—Section 603(f) (33 U.S.C. 1383(f)) is amend-
ed—
(1) by striking ‘‘is consistent’’ and inserting ‘‘is
not inconsistent’’; and
(2) by striking ‘‘and 320’’ and inserting ‘‘320,
321, and 322’’.
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(g) LIMITATIONS ON CONSTRUCTION ASSISTANCE.—
Section 603(g) (33 U.S.C. 1383(g)) is amended to read
as follows:
‘‘(g) LIMITATIONS
ON
CONSTRUCTION
ASSIST-
ANCE.—The State may provide financial assistance from
its water pollution control revolving fund with respect to
a project for construction of a publicly owned treatment
works only if—
‘‘(1) such project is on the State’s priority list
under section 216 of this Act without regard to the
rank of such project on the State’s priority list; and
‘‘(2) the recipient of such assistance is a mu-
nicipality in any case in which the treatment works
is privately owned.’’.
(h) INTEREST
RATES.—Section 603 is further
amended by adding at the end the following:
‘‘(i) INTEREST RATES.—In any case in which a State
makes a loan pursuant to subsection (d)(1) to a disadvan-
taged community, the State may charge a negative inter-
est rate of not to exceed 2 percent to reduce the unpaid
principal of the loan. The aggregate amount of all such
negative interest rate loans the State makes in a fiscal
year shall not exceed 20 percent of the aggregate amount
of all loans made by the State from its revolving loan fund
in such fiscal year.
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‘‘(j) DISADVANTAGED COMMUNITY DEFINED.—As
used in this section, the term ‘disadvantaged community’
means the service area of a publicly owned treatment
works with respect to which the average annual residential
sewage treatment charges for a user of the treatment
works meet affordability criteria established by the State
in which the treatment works is located (after providing
for public review and comment) in accordance with guide-
lines to be established by the Administrator, in coopera-
tion with the States.’’.
(i) SALE OF TREATMENT WORKS.—Section 603 is
further amended by adding at the end the following:
‘‘(k) SALE OF TREATMENT WORKS.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provisions of this Act, any State, municipality,
intermunicipality, or interstate agency may transfer
by sale to a qualified private sector entity all or part
of a treatment works that is owned by such agency
and for which it received Federal financial assistance
under this Act if the transfer price will be distrib-
uted, as amounts are received, in the following
order:
‘‘(A) First reimbursement of the agency of
the unadjusted dollar amount of the costs of
construction of the treatment works or part
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thereof plus any transaction and fix-up costs in-
curred by the agency with respect to the trans-
fer less the amount of such Federal financial
assistance provided with respect to such costs.
‘‘(B) If proceeds from the transfer remain
after such reimbursement, repayment of the
Federal Government of the amount of such
Federal financial assistance less the applicable
share of accumulated depreciation on such
treatment works (calculated using Internal Rev-
enue Service accelerated depreciation schedule
applicable to treatment works).
‘‘(C) If any proceeds of such transfer re-
main after such reimbursement and repayment,
retention of the remaining proceeds by such
agency.
‘‘(2) RELEASE
OF
CONDITION.—Any require-
ment imposed by regulation or policy for a showing
that the treatment works are no longer needed to
serve their original purpose shall not apply.
‘‘(3) SELECTION OF BUYER.—A State, munici-
pality, intermunicipality, or interstate agency exer-
cising the authority granted by this subsection shall
select a qualified private sector entity on the basis
of total net cost and other appropriate criteria and
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shall utilize such competitive bidding, direct negotia-
tion, or other criteria and procedures as may be re-
quired by State law.
‘‘(l) 
PRIVATE
OWNERSHIP
OF
TREATMENT
WORKS.—
‘‘(1) REGULATORY
REVIEW.—The Adminis-
trator shall review the law and any regulations, poli-
cies, and procedures of the Environmental Protec-
tion Agency affecting the construction, improvement,
replacement, operation, maintenance, and transfer of
ownership of current and future treatment works
owned by a State, municipality, intermunicipality, or
interstate agency. If permitted by law, the Adminis-
trator shall modify such regulations, policies, and
procedures to eliminate any obstacles to the con-
struction, improvement, replacement, operation, and
maintenance of such treatment works by qualified
private sector entities.
‘‘(2) REPORT.—Not later than 180 days after
the date of enactment of this subsection, the Admin-
istrator shall submit to Congress a report identifying
any provisions of law that must be changed in order
to eliminate any obstacles referred to in paragraph
(1).
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‘‘(3) DEFINITION.—For purposes of this sec-
tion, the term ‘qualified private sector entity’ means
any nongovernmental individual, group, association,
business, partnership, organization, or privately or
publicly held corporation that—
‘‘(A) has sufficient experience and exper-
tise to discharge successfully the responsibilities
associated with construction, operation, and
maintenance of a treatment works and to sat-
isfy any guarantees that are agreed to in con-
nection with a transfer of treatment works
under subsection (k);
‘‘(B) has the ability to assure protection
against insolvency and interruption of services
through contractual and financial guarantees;
and
‘‘(C) with respect to subsection (k), to the
extent consistent with the North American Free
Trade Agreement and the General Agreement
on Tariffs and Trade—
‘‘(i) is majority-owned and controlled
by citizens of the United States; and
‘‘(ii) does not receive subsidies from a
foreign government.’’.
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SEC. 604. ALLOTMENT OF FUNDS.
(a) IN
GENERAL.—Section 604(a) (33 U.S.C.
1384(a)) is amended to read as follows:
‘‘(a) FORMULA FOR FISCAL YEARS 1996–2000.—
Sums authorized to be appropriated pursuant to section
607 for each of fiscal years 1996, 1997, 1998, 1999, and
2000 shall be allotted for such year by the Administrator
not later than the 10th day which begins after the date
of the enactment of the Clean Water Amendments of
1995. Sums authorized for each such fiscal year shall be
allotted in accordance with the following table:
‘‘States:
Percentage of sums
authorized:
Alabama ...................................................................................
0.7736
Alaska ......................................................................................
0.2500
Arizona .....................................................................................
1.1526
Arkansas ..................................................................................
0.3853
California .................................................................................
9.3957
Colorado ...................................................................................
0.6964
Connecticut ..............................................................................
1.3875
Delaware ..................................................................................
0.2500
District of Columbia ................................................................
0.3203
Florida .....................................................................................
3.4696
Georgia .....................................................................................
2.0334
Hawaii ......................................................................................
0.2629
Idaho ........................................................................................
0.2531
Illinois ......................................................................................
5.6615
Indiana .....................................................................................
3.1304
Iowa .........................................................................................
0.6116
Kansas .....................................................................................
0.8749
Kentucky ..................................................................................
1.3662
Louisiana .................................................................................
1.0128
Maine .......................................................................................
0.6742
Maryland ..................................................................................
1.6701
Massachusetts ..........................................................................
4.3755
Michigan ..................................................................................
3.8495
Minnesota .................................................................................
1.3275
Mississippi ................................................................................
0.6406
Missouri ...................................................................................
1.7167
Montana ...................................................................................
0.2500
Nebraska ..................................................................................
0.4008
Nevada .....................................................................................
0.2500
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‘‘States:
Percentage of sums
authorized:
New Hampshire .......................................................................
0.4791
New Jersey ...............................................................................
4.7219
New Mexico ..............................................................................
0.2500
New York .................................................................................
14.7435
North Carolina .........................................................................
2.5920
North Dakota ...........................................................................
0.2500
Ohio ..........................................................................................
4.9828
Oklahoma .................................................................................
0.6273
Oregon ......................................................................................
1.2483
Pennsylvania ............................................................................
4.2431
Rhode Island ............................................................................
0.4454
South Carolina .........................................................................
0.7480
South Dakota ...........................................................................
0.2500
Tennessee .................................................................................
1.4767
Texas ........................................................................................
4.6773
Utah .........................................................................................
0.2937
Vermont ...................................................................................
0.2722
Virginia ....................................................................................
2.4794
Washington ..............................................................................
2.2096
West Virginia ...........................................................................
1.4346
Wisconsin .................................................................................
1.4261
Wyoming ..................................................................................
0.2500
Puerto Rico ..............................................................................
1.0866
Northern Marianas ..................................................................
0.0308
American Samoa ......................................................................
0.0908
Guam ........................................................................................
0.0657
Palau ........................................................................................
0.1295
Virgin Islands ..........................................................................
0.0527.’’.
(b) CONFORMING AMENDMENT.—Section 604(c)(2)
is amended by striking ‘‘title II of this Act’’ and inserting
‘‘this title’’.
SEC. 605. AUTHORIZATION OF APPROPRIATIONS.
Section 607 (33 U.S.C. 1387(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(4);
(2) by striking the period at the end of para-
graph (5) and inserting a semicolon; and
(3) by adding at the end the following: