rocketing as the costs of municipal sewage treatment
plants and other clean water programs soar. These
escalating costs have a disproportionate effect on the
poor and on families in small and economically de-
pressed communities.
(2) There is no relief in sight. The most recent
report by the Environmental Protection Agency esti-
mates at least $155,000,000,000 will be needed over
the next 20 years just to meet current Federal
Water Pollution Control Act requirements.
(3) The whole story is even more sobering. If
the full costs of Federal Water Pollution Control Act
implementation are considered, including combined
sewer overflows, storm water control, polluted runoff
control, and implementation of national estuary pro-
grams, then the total cost of Federal Water Pollu-
tion Control Act implementation will greatly exceed
$200,000,000,000 over the next 20 years.
(4) We are not now doing enough. In light of
these overwhelming needs, the current Federal in-
vestment of $2,000,000,000 in State assistance is
grossly inadequate to meet the Federal Water Pollu-
tion Control Act’s fundamental objective of eliminat-
ing discharges and achieving water quality which
provides for the protection and propagation of fish,
shellfish, and wildlife.
(5) We need to get serious about clean water.
In order to ensure adequate investment in clean
water infrastructure, an annual investment of
$6,000,000,000 is required.
(6) The taxpayer should contribute a fair share.
The Federal Government should continue to main-
tain its $2,000,000,000 in annual support.
(7) The polluter should bear the biggest bur-
den. In order to support the dual objective of deficit
reduction and pollution control and prevention,
$4,000,000,000 should be derived from appropriate
taxes on activities and products which are known to
contribute to water pollution.
(8) The mechanism for funding clean water
programs should be user friendly. The existing State
revolving loan program should remain to be the prin-
cipal means of financing Federal Water Pollution
Control Act implementation at the State level, but
the program should be amended to broaden project
eligibility, provide for grant-type assistance to small
and hardship communities, and help ensure provi-
sion of water and sewer services to all Americans at
affordable rates.
TITLE I—STATE WATER POLLU-
TION CONTROL REVOLVING
FUNDS
SEC. 101. REQUIREMENTS FOR TREATMENT WORKS.
(a) APPLICABILITY.—Section 602(b)(6) of the Fed-
eral Water Pollution Control Act (33 U.S.C. 1382(b)(6))
is amended by striking each of the following:
(1) ‘‘201(b), 201(g)(1), 201(g)(2), 201(g)(3),’’;
(2) ‘‘201(g)(6), 201(n)(1),’’;
(3) ‘‘204(a)(1), 204(a)(2),’’; and
(4) ‘‘211,’’.
(b) INCREASE
IN VALUE ENGINEERING THRESH-
OLD.—Section 218(c) of such Act (33 U.S.C. 1298(c)) is
amended by striking ‘‘$10,000,000’’ and inserting
‘‘$25,000,000’’.
SEC. 102. PROJECTS ELIGIBLE FOR ASSISTANCE.
(a) IN GENERAL.—Section 603(c) of the Federal
Water Pollution Control Act (33 U.S.C. 1383(c)) is
amended to read as follows:
‘‘(c) PROJECTS ELIGIBLE FOR ASSISTANCE.—
‘‘(1) DESCRIPTIONS.—The amounts of funds
available to each State water pollution control re-
volving fund shall be used only for providing finan-
cial assistance to municipal, intermunicipal, inter-
state, and State agencies and to other persons, as
appropriate, to carry out 1 or more of the following
projects:
‘‘(A) Construction of publicly owned treat-
ment works (as defined in section 212).
‘‘(B) Implementation of a management
program approved under section 319.
‘‘(C) Watershed planning and manage-
ment.
‘‘(D) Public water conservation and reuse.
‘‘(E) Low income water and sewer assur-
ance programs which meet the requirements of
section 608.
‘‘(F) Acquisition of lands, easements, and
rights-of-way directly related to any other
project described in this paragraph.’’.
‘‘(2) AVAILABILITY OF FUND BALANCE.—Each
State water pollution control revolving fund shall be
established, maintained, and credited with repay-
ments and the fund balance shall be available in per-
petuity for providing financial assistance under this
title.’’.
(b) CONFORMING AMENDMENTS.—
(1) GENERAL AUTHORITY.—Section 601(a) of
such Act (33 U.S.C. 1381(a)) is amended by strik-
ing ‘‘for providing assistance’’ and all that follows
before the period and inserting ‘‘for providing assist-
ance for projects described in section 603(c)’’.
(2) INTENDED USE PLAN.—Section 606(c)(1)
of such Act (33 U.S.C. 1386(c)(1)) is amended by
inserting ‘‘and other activities eligible for financial
assistance under this title’’ before the semicolon.
SEC. 103. MAXIMUM TERM OF LOANS.
(a) IN GENERAL.—Section 603(d)(1) of the Federal
Water Pollution Control Act (33 U.S.C. 1383(d)(1)) is
amended—
(1) in subparagraph (A) by striking ‘‘20 years’’
and inserting ‘‘the expected life of the facility or
project being 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’’.
(b) APPLICABILITY.—The amendments made by sub-
section (a) shall not apply to loans made before the date
of the enactment of this Act.
SEC. 104. ADMINISTRATIVE COSTS.
(a) AMOUNT.—Section 603(d)(7) of the Federal
Water Pollution Control Act (33 U.S.C. 1383(d)(7)) is
amended by striking ‘‘except that’’ and all that follows be-
fore the period and inserting ‘‘except that in a fiscal year
such amount shall not exceed 5 percent of the total
amount deposited into such fund in such fiscal year’’.
(b) TECHNICAL ASSISTANCE.—Section 603 of such
Act (33 U.S.C. 1383) is amended by adding at the end
the following new subsection:
‘‘(i) USE OF ADMINISTRATIVE FUNDS FOR PROVID-
ING TECHNICAL ASSISTANCE.—Not less than 1⁄5 of any
amount used by a State in a fiscal year under subsection
(d)(7) for administering its water pollution control revolv-
ing fund shall be allocated for providing technical assist-
ance to communities to identify appropriate technology for
water quality protection and mechanisms for financing
water quality protection projects.’’.
SEC. 105. AUTHORITY TO MAKE GRANTS.
(a) IN GENERAL.—Section 603(d) of the Federal
Water Pollution Control Act (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:
‘‘(8) to make grants in such amounts and sub-
ject to such terms as provided by subsection (j).’’.
(b) LIMITATIONS.—Section 603 of such Act (33
U.S.C. 1383) is amended by adding at the end the follow-
ing new subsection:
‘‘(j) GRANT AUTHORITY.—
‘‘(1) TERMS AND CONDITIONS.—The authority
of a State under subsection (d)(8) to provide finan-
cial assistance from its water pollution control re-
volving fund in the form of grants shall be subject
to the following terms and conditions:
‘‘(A) LIMITATION ON AMOUNT.—In a fiscal
year, such financial assistance will not exceed
whichever of the following amounts is greater:
‘‘(i) 25 percent of the funds received
by the State in capitalization grants under
this title in such fiscal year.
‘‘(ii) 100 percent of any increase in
the amount of funds received by the State
in capitalization grants under this title in
such fiscal year from the amount of funds
so received in fiscal year 1992.
‘‘(B) ELIGIBLE PROJECTS.—Such financial
assistance will be provided only for the follow-
ing types of projects:
‘‘(i) PROJECTS
IN
SMALL
COMMU-
NITIES.—A project described in subsection
(c)(1) to be carried out in a political sub-
division with a population of 5,000 individ-
uals or less.
‘‘(ii) PROJECTS IN HARDSHIP COMMU-
NITIES.—A project described in subsection
(c)(1) to be carried out in a political sub-
division for which the State certifies that—
‘‘(I) in the preceding calendar
year, the average combined residential
water and sewer bill equaled or ex-
ceeded 2 percent of the median family
income; or
‘‘(II) in the preceding calendar
year, the average residential sewer bill
equaled or exceeded 1 percent of the
median family income.
‘‘(iii) 
PROJECTS
TO
CONTROL
NONPOINT
POLLUTION.—A project de-
scribed in subparagraph (B) of subsection
(c)(1) for control of nonpoint sources of
pollution.
‘‘(iv) PROJECTS
FOR
LOW
INCOME
WATER
AND
SEWER
ASSURANCE.—A
project to establish and implement a low
income water and sewer assurance pro-
gram which meets the requirements of sec-
tion 608 and which is to be carried out in
a political subdivision described in clause
(i) or (ii).
‘‘(2) POLITICAL
SUBDIVISION
DEFINED.—For
the purposes of this subsection, the term ‘political
subdivision’ shall include Indian tribes.’’.
SEC. 106. CONTROL OF NONPOINT SOURCE POLLUTION.
Section 603 of the Federal Water Pollution Control
Act (33 U.S.C. 1383) is further amended by adding at
the end the following new subsection:
‘‘(k) MINIMUM PERCENTAGE TO BE USED FOR
NONPOINT SOURCE CONTROL.—Not less than 15 percent
of the amount of each capitalization grant received by a
State under this title shall be used by the State for
projects to control nonpoint sources of pollution which af-
fect surface water or groundwater. Such projects shall in-
clude projects described in subparagraph (B) of subsection
(c)(1).’’.
SEC. 107. ALLOTMENT OF FUNDS.
FORMULAS.—Section 604(a) of the Federal Water
Pollution Control Act (33 U.S.C. 1384(a)) is amended to
read as follows:
‘‘(a) FORMULAS.—
‘‘(1) EXISTING FORMULA.—Except as provided
by paragraph (2) and subsection (d), sums appro-
priated to carry out this title in a fiscal year shall
be allotted by the Administrator in accordance with
section 205(c).
‘‘(2) NEW FORMULA.—
‘‘(A) ESTABLISHMENT.—Not later than 1
year after the date of the enactment of this
paragraph, and after providing adequate notice
and opportunity for public comment, the Ad-
ministrator shall develop and publish a formula
for the allocation of amounts appropriated to
carry out this title after the date of publication
of such formula. Such formula shall be based
on State populations (as determined using the
most recent population estimates prepared by
the Secretary of Commerce) and information
contained in the most recent biennial needs sur-
vey conducted by the Administrator. The Ad-
ministrator shall revise such formula at least
once every 5 years.
‘‘(B) ALLOTMENT
UNDER
NEW
FOR-
MULA.—Subject to subsection (d), funds appro-
priated to carry out this section for a fiscal year
beginning after the date of publication of a for-
mula under subparagraph (A) shall be allotted
by the Administrator in accordance with such
formula.’’.
SEC. 108. LOW INCOME WATER AND SEWER ASSURANCE
PROGRAM.
(a) ELIGIBILITY REQUIREMENT.—Section 602(b) of
the Federal Water Pollution Control Act (33 U.S.C.
1382(b)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(9);
(2) by striking the period at the end of para-
graph (10) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(11) with respect to any area which has an av-
erage annual combined total of residential household
water and sewer bills which is greater than 4 per-
cent of 75 percent of the Federal poverty level for
a household of 4 (as determined from the most re-
cent Federal Poverty Guidelines published by the
Department of Health and Human Services), the
State will require as a condition of providing assist-
ance from the fund for a project to construct a pub-
licly owned treatment works, as described in section
603(c)(1)(A), that the recipient of such assistance
certify, in writing, that there will be in effect for
such area within 2 years after the date of approval
of such assistance a low income water and sewer as-
surance program which meets the requirements of
section 608.’’.
(b) IN GENERAL.—Title VI of such Act (33 U.S.C.
1381–1387) is amended by adding at the end the follow-
ing:
‘‘SEC. 608. LOW INCOME WATER AND SEWER ASSURANCE
PROGRAM.
‘‘(a) IN GENERAL.—Not later than 1 year after the
date of the enactment of this Act, the Administrator shall
issue regulations to establish minimum standards for low
income water and sewer assurance programs eligible for
assistance under this Act. Such programs shall be de-
signed to best meet the needs and conditions of the area
served by the recipient of assistance under this title. Such
regulations shall, at a minimum, ensure that—
‘‘(1) water and sewer will be available on an af-
fordable basis to all households being served by the
recipient of assistance under this title having a
household income at or below 150 percent of the
Federal poverty level in the area (as determined
from the most recent Federal Poverty Guidelines
published by the Department of Health and Human
Services);
‘‘(2) benefits under the program will be made
available to tenants of residential units who pay for
water and sewer services as part of their rent;
‘‘(3) the presumptive measure of affordable
combined water and sewer rates on a monthly basis
is that such rates do not exceed 4 percent of the
gross monthly income for a household; and
‘‘(4) benefits under the program may be re-
duced by any assistance provided to pay utilities
under any other Federal or State program.
‘‘(b) TREATMENT OF BENEFITS.—Notwithstanding
any other provision of law, the amount of any low income
water and sewer assurance program benefits provided pur-
suant to this Act directly to, or for the benefit of, a house-
hold shall not be treated as income to such household for
purposes of any Federal law.’’.
(c) EFFECTIVE DATE.—The amendment made by
subsection (a) of this section shall take effect on the first
day of the first fiscal year which begins after the last day
of the 1-year period beginning on the date of the enact-
ment of this Act.
SEC. 109. AUTHORIZATION OF APPROPRIATIONS.
Section 607 of the Federal Water Pollution Control
Act (33 U.S.C. 1387) is amended to read as follows:
‘‘SEC. 607. FUNDING CLEAN WATER NEEDS.
‘‘(a) FROM THE GENERAL FUND.—There is author-
ized to be appropriated to carry out the purposes of this
title $2,000,000,000 per fiscal year for each of fiscal years
1994 through 2000.
‘‘(b) FROM THE CLEAN WATER TRUST FUND.—For
each fiscal year after fiscal year 1995, $4,000,000,000
shall be transferred from the Clean Water Trust Fund,
without further appropriation, to carry out the purposes
of this title.’’.
TITLE II—EXCISE TAXES ON SUB-
STANCES CONTRIBUTING TO
WATER POLLUTION, ETC.
SEC. 201. EXCISE TAXES ON SUBSTANCES CONTRIBUTING
TO WATER POLLUTION.
(a) IN GENERAL.—Chapter 38 of the Internal Reve-
nue Code of 1986 (relating to environmental taxes) is
amended by adding at the end thereof the following new
subchapters:
‘‘Subchapter E—Discharges of Chemical
Pollutants
‘‘Sec. 4691. Imposition of tax.
‘‘Sec. 4692. Definitions and special rules.
‘‘SEC. 4691. IMPOSITION OF TAX.
‘‘(a) GENERAL RULE.—There is hereby imposed a
tax on the discharge in the United States (as defined in
section 4612(a)(4)) of any taxable chemical pollutant to—
‘‘(1) water, or
‘‘(2) any publicly owned treatment works (as
defined in section 212 of the Federal Water Pollu-
tion Control Act).
‘‘(b) RATE OF TAX.—The amount of the tax imposed
by subsection (a) on each pound of any taxable chemical
pollutant shall be the amount determined in accordance
with the following table:
In the case of:
The tax per pound is:
Group 1 pollutants .................
0.6 cents
Group 2 pollutants .................
24.2 cents
Group 3 pollutants .................
$ 2.26
Group 4 pollutants .................
$28.33
Group 5 pollutants .................
$63.39.
‘‘(c) LIABILITY FOR TAX.—The person discharging
any taxable chemical pollutant shall pay the tax imposed
by subsection (a) on such pollutant.
‘‘(d) EXCEPTIONS.—The tax imposed by subsection
(a) shall not apply to any discharge of any taxable chemi-
cal pollutant used exclusively for—
‘‘(1) any residential use,
‘‘(2) any use on a farm for farming purposes
(determined under rules similar to the rules of sec-
tion 6420(c)), or
‘‘(3) any use by United States, any State or po-
litical subdivision thereof, the District of Columbia,
any possession of the United States, or by any agen-
cy or instrumentality of any of the foregoing.
‘‘(e) INFLATION ADJUSTMENT OF RATES.—
‘‘(1) IN GENERAL.—Effective during any cal-
endar year after 1994, each dollar amount contained
in subsection (b) shall be increased by an amount
equal to—
‘‘(A) such dollar amount, multiplied by
‘‘(B) the inflation adjustment for such cal-
endar year.
‘‘(2) INFLATION ADJUSTMENT.—For purposes
of paragraph (1), the inflation adjustment for any
calendar year is the sum of—
‘‘(A) 3 percentage points, plus
‘‘(B) the percentage (if any) by which—
‘‘(i) the GDP deflator for the preced-
ing calendar year, exceeds
‘‘(ii) the GDP deflator for 1993.
‘‘(3) GDP DEFLATOR FOR CALENDAR YEAR.—
For purposes of paragraph (2), the GDP deflator for
any calendar year is the GDP deflator for the sec-
ond calendar quarter of such year.
‘‘(4) GDP DEFLATOR.—For purposes of para-
graph (3), the term ‘GDP deflator’ means the most
recent revision of the implicit price deflator for the
gross domestic product as computed and published
by the Department of Commerce before November
15 of the calendar year referred to in paragraph
(2)(B)(i).
‘‘SEC. 4692. DEFINITIONS AND SPECIAL RULES.
‘‘(a) TAXABLE CHEMICAL POLLUTANTS.—
‘‘(1) IN GENERAL.—For purposes of this sub-
chapter, the term ‘taxable chemical pollutant’ means
any substance which, at the time of its discharge, is
listed in paragraph (2) as being included in any
group of pollutants.
‘‘(2) GROUPS OF POLLUTANTS.—For purposes
of this paragraph (1), the groups of pollutants are
as follows:
Group 1 Pollutants
Oil and grease
BOD-5
TSS
Diethyl phthalate
Dichloropropane, 1,2
Chlorobenzene
Chloroethyl vinyl ether, 2
Dichloroethane, 1,1
Group 2 Pollutants
Vinyl chloride
Ethylbenzene
Dichloroethane, 1,2
Nitrophenol, 2
Dimethyl phthalate
Antimony
Dimethylphenol, 2,4
Dinitrotoluene, 2,6
Dichlorobenzene, 1,3
Phenol
Toluene
Naphthalene
Dichlorobenzene, 1,8-
Dinitrotoluene, 2,6-
1,1 dichloroethylene
Chlorophenol, 2-
Bis-2 chloroisopropyl ether
Isophorone
Group 3 Pollutants
2,4-D (Acetic acid (2,4 Dichlorophenoxy-acetic acid))
Nitrobenzene
Bis(2-chloro-1-methyl-ethyl)ether
Nitrophenol,4
Trichloroethane, 1,1,2
Vinylidene chloride
Butyl benzyl phthalate
Chloromethane (Methyl chloride)
Dichloromethane
Bromoform (Tribromomethane)
Chloroform
Zinc
Tetrachlorethane, 1,1,2,2
Dinitrotoluene, 2,4
Acetaldehyde
Acetone
Acetonitrile
Acrylamide
Acrylic acid
Allyl Chloride
Aluminum
Ammonia
Ammonium nitrate
Ammonium sulfate
Aniline
Anisidine, o
Barium
Benzoyl chloride
Benzoyl peroxide
Benzyl chloride
Biphenyl (Diphenyl)
Bis(2-ethylhexyl)-adipate
Butadiene, 1,3
Butyl acrylate
Butyl alcohol, n
Butyl alcohol, sec
Butyl alcohol, tert
Butylene oxide, 1,2
Butyraldehyde
Carbaryl
Carbon Disulfide
Catechol (1,2-Dihydroxybenzene)
Chlorinated fluorocarbons
Chlorine
Chlorine dioxide
Chloroacetic acid
Chloroprene
Chlorothalonil
Cobalt
Cresidine, p
Cresol, m
Cresol, o
Cresol, p
Cresol (mixed isomers)
Cumene
Cumene hydroperoxide
Cupferron
Cyclohexane
C.I. basic green 4
C.I. disperse yellow 3
Decabromodiphenyl oxide
Diaminodiphenyl-ether, 4,4
Diaminotoluene, 2,4
Diaminotoluene (mixed isomers)
Dibenzofuran
Dibromoethane, 1,2
Dichlorobenzene (mixed isomers)
Diethanolamine
Dimethyl sulfate
Dioxane, 1,4
Epichlorohydrin
Ethoxyethanol, 2
Ethyl acrylate
Ethylene glycol
Ethylene oxide
Formaldehyde
Freon 113
Hydrazine
Hydrochloric acid
Hydrogen cyanide
Hydrogen fluoride
Hydroquinone
Isobutyraldehyde
Isopropyl alcohol
Isopropylidenedi-phenol, 4,4
Maleic anhydride
Manganese
Methanol
Methoxyethanol, 2
Methyl acrylate
Methyl hydrazine
Methyl iodide
Methyl methacrylate
Methyl tertbutyl ether
Molybdenum trioxide
Naphthylamine, alpha
Nitric acid
Di-N-butyl phthalate
Pyrene
2,3,7,8-TCDF
Alkylated lead
Danitol
EBDC fungicides
Kelthane
Kepone
Mirex
N-nitroso-di-n-butylamine
Octachlorostyrene
Pentachlorobenzene
Perylene
PCDD/Fs
Soy products
Styrene dimers and trimers
Synthetic pyrethroids
Technical-grade BHC (hexachlorocyclohexane)
Tetrachlorobenzene, 1,2,3,5-
Trazine herbicides
Tributyltin
Group 5 Pollutants
Hexachlorocyclopentadiene
Selenium
Dichloropropylene, 1,3
Tetrachlorvinphos
Dinitro-o-cresol, 4,6
Lead
Dioctyl phthalate, n
Trichlorophenol, 2,4,6
Di(2-ethylhexyl) phthalate
Trifluralin
Cadmium
Beryllium
Dichlorobenzidine, 3,3
Arsenic
Silver
Methoxychlor
Mercury
Hexachlorobenzene
Chlordane
Heptachlor
Polychlorinated biphenyls
Anthracene
Pentachlorophenol
Lindane
Aldrin
Benzidine
Diphenylhydrazine, 1,2-
Hexachorocyclopentadiene
1,2 benzanthracene
Benzo(a)pyrene
8,4 benzofluoranthene
Benzo(k)fluoranthene
Cyanide
DDT
DDE
DDD
Dibenzo(a,h)anthracene
Dieldrin
Dioxin
Endosulfan alpha
Endosulfan beta
Endrin
Endrin aldehyde
Heptachlor epoxide
Hexachlorocyclohexane alpha
Hexachlorocyclohexane beta
Phenanthrene
Bis (2 ethyl hexyl) phthalate
Toxaphene
Ethylene dibromide
EPN (ethyl-p-nitrophenylphenylphosphorothioate)
Hexachlorophene
Captan
Propoxur
Quintozene (pentachloronitrobenzene)
‘‘(b) SPECIAL RULES.—
‘‘(1) FRACTIONAL PARTS OF A POUND.—In the
case of a fraction of a pound, the tax imposed by
this subchapter shall be the same fraction of the
amount of such tax imposed on a whole pound.
‘‘(2) DISPOSITIONS OF REVENUES FROM PUER-
TO RICO AND THE VIRGIN ISLANDS.—The provisions
of subsections (a)(3) and (b)(3) of section 7652
shall not apply to any tax imposed by this sub-
chapter.
‘‘Subchapter F—Fertilizer, Pesticides, and
Animal Feed
‘‘Sec. 4694. Imposition of tax.
‘‘Sec. 4695. Definitions and special rules.
‘‘SEC. 4694. IMPOSITION OF TAX.
‘‘(a) GENERAL RULE.—There is hereby imposed a
tax on any fertilizer, pesticide, or animal feed—
‘‘(1) which is manufactured or produced in the
United States or entered into the United States for
consumption use or warehousing, and
‘‘(2) which sold or used by the manufacturer,
producer, or importer thereof.
‘‘(b) AMOUNT OF TAX.—The amount of the tax im-
posed by subsection (a) is—
‘‘(1) in the case of fertilizer, 0.845 cents per
pound of the nitrogen and phosphorous in such
fertilizer,
‘‘(2) in the case of pesticide, 24.27 cents per
pound of the active ingredient in such pesticide, and
‘‘(3) in the case of processed animal feed, 2.68
cents per ton.
‘‘SEC. 4695. DEFINITIONS AND SPECIAL RULES.
‘‘(a) DEFINITIONS.—For purposes of this sub-
chapter—
‘‘(1) PESTICIDE
AND
ACTIVE
INGREDIENT.—
The terms ‘pesticide’ and ‘active ingredient’ have the
meanings given such terms by section 2 of the Fed-
eral Insecticide, Fungicide, and Rodenticide Act.
‘‘(2) PROCESSED
ANIMAL
FEED.—The term
‘processed animal feed’ means any agricultural or
horticultural commodity—
‘‘(A) which is intended to be consumed by
livestock, birds, fur-bearing animals, fish, or
wildlife, and
‘‘(B) to which some form of processing has
been applied.
For purposes of subparagraph (B), the term ‘proc-
essing’ does not include handling, packing, grading,
or storing.
‘‘(3) FERTILIZER.—The term ‘fertilizer’ shall
not include manure or sewage sludge.
‘‘(b) EXCEPTION FOR EXPORTS.—
‘‘(1) IN GENERAL.—The tax imposed by section
4694 shall not apply to any article—
‘‘(A) which is exported from the United
States by the person otherwise liable for such
tax, or
‘‘(B) which is to be sold for export from
the United States by the purchaser or by any
subsequent purchaser.
‘‘(2) CREDIT OR REFUND WHERE PRIOR TAX
IMPOSED.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), if tax was imposed under
section 4694 with respect to any article and
such article is exported by any person, credit or
refund (without interest) of such tax shall be
allowed or made to the person who paid such
tax.
‘‘(B) CONDITION
OF
ALLOWANCE.—No
credit or refund shall be allowed or made under
subparagraph (A) unless the person who paid
the tax establishes that—
‘‘(i) he has repaid or agreed to repay
the amount of the tax to the person who
exported the article, or
‘‘(ii) he has obtained the written con-
sent of such exporter to the allowance of
the credit or the making of the refund.
‘‘(C) 
REFUNDS
DIRECTLY
TO
EX-
PORTER.—Rules similar to the rules of section
4662(e)(3) shall apply to the tax imposed by
section 4694.
‘‘(c) EXCEPTION FOR FURTHER MANUFACTURE.—
Rules similar to the rules of section 4682(d)(2) shall apply
for purposes of this subchapter.
‘‘(d) OTHER DEFINITIONS.—For purposes of this
subchapter—
‘‘(1) UNITED
STATES.—The term ‘United
States’ has the meaning given such term by section
4612(a)(4).
‘‘(2) IMPORTER.—The term ‘importer’ means
the person entering the article for consumption, use,
or warehousing.
‘‘(3) TON.—The term ‘ton’ means 2,000
pounds.
‘‘(e) SPECIAL RULES.—
‘‘(1) FRACTIONAL
PARTS
OF
A
POUND
OR
TON.—In the case of a fraction of a pound or ton,
the tax imposed by this subchapter shall be the same
fraction of the amount of such tax imposed on a
whole pound or ton.
‘‘(2) DISPOSITIONS OF REVENUES FROM PUER-
TO RICO AND THE VIRGIN ISLANDS.—The provisions
of subsections (a)(3) and (b)(3) of section 7652
shall not apply to any tax imposed by this sub-
chapter.’’
(b) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 38 of such Code is amended by add-
ing at the end thereof the following new items:
‘‘Subchapter E. Certain chemical pollutants.
‘‘Subchapter F. Fertilizer, pesticides, and animal feed.’’