(f) PRIORITIZATION.—Section 603(g) (33 U.S.C. 
1383(g)) is amended to read as follows: 
‘‘(g) PRIORITY SYSTEM REQUIREMENT.— 
‘‘(1) DEFINITIONS.—In this subsection, the fol-
lowing definitions apply: 
‘‘(A) RESTRUCTURING.—The term ‘re-
structuring’ means— 
‘‘(i) the consolidation of management 
functions or ownership with another facil-
ity; or 
‘‘(ii) the formation of cooperative 
partnerships. 
‘‘(B) 
TRADITIONAL
WASTEWATER
AP-
PROACH.—The term ‘traditional wastewater ap-
proach’ means a managed system used to col-
lect and treat wastewater from an entire service 
area consisting of— 
‘‘(i) collection sewers; 
‘‘(ii) a centralized treatment plant 
using biological, physical, or chemical 
treatment processes; and 
‘‘(iii) a direct point source discharge 
to surface water. 
‘‘(2) PRIORITY SYSTEM.—In providing financial 
assistance from the water pollution control revolving 
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fund of the State, the State shall establish a priority 
system that— 
‘‘(A) takes into consideration appropriate 
chemical, physical, and biological data relating 
to water quality that the State considers rea-
sonably available and of sufficient quality; 
‘‘(B) ensures that projects undertaken with 
assistance under this title are designed to 
achieve, as determined by the State, the opti-
mum water quality management, consistent 
with the public health and water quality goals 
and requirements of this Act; 
‘‘(C) provides for public notice and oppor-
tunity to comment on the establishment of the 
priority system and the summary under sub-
paragraph (D); and 
‘‘(D) provides for the publication, not less 
than biennially in summary form, of a descrip-
tion of projects in the State that are eligible for 
assistance under this title that indicates— 
‘‘(i) the priority assigned to each 
project under the priority system of the 
State; and 
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‘‘(ii) the funding schedule for each 
project, to the extent the information is 
available. 
‘‘(3) WEIGHT GIVEN TO APPLICATIONS.—After 
determining project priorities under paragraph (2), a 
State shall give greater weight to an application for 
assistance if the application contains such informa-
tion as the State determines to be necessary and in-
cludes— 
‘‘(A) approaches other than a traditional 
wastewater approach that treat or minimize 
sewage or urban storm water discharges 
using— 
‘‘(i) decentralized or distributed storm 
water controls; 
‘‘(ii) decentralized wastewater treat-
ment; 
‘‘(iii) low-impact development tech-
nologies and nonstructural approaches; 
‘‘(iv) stream buffers; 
‘‘(v) wetland restoration and enhance-
ment; 
‘‘(vi) actions to minimize the quantity 
of and direct connections to impervious 
surfaces; 
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‘‘(vii) soil and vegetation, or other 
permeable materials; or 
‘‘(viii) actions that increase efficient 
water use, water conservation, or water 
reuse; 
‘‘(B) a demonstration of consistency with 
State, regional, and municipal watershed plans, 
water conservation and efficiency plans, or inte-
grated water resource management plans; 
‘‘(C) a proposal by the applicant dem-
onstrating flexibility through alternative means 
to carry out responsibilities under Federal regu-
lations, which may include watershed permit-
ting and other innovative management ap-
proaches, while achieving results that the Ad-
ministrator determines are measurably superior 
when compared to regulatory standards; or 
‘‘(D) a proposal by the applicant providing 
for the implementation of effective utility man-
agement principles, as identified in the 2007 
Agreement between the Environmental Protec-
tion Agency and major water and wastewater 
associations.’’. 
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SEC. 206. HIGH PRIORITY PROJECT GRANTS AND PRIN-
CIPAL FORGIVENESS. 
(a) IN GENERAL.—Title VI (33 U.S.C. 1381 et seq.) 
is amended— 
(1) by redesignating section 607 as section 608; 
and 
(2) by inserting after section 606 the following: 
‘‘SEC. 607. HIGH PRIORITY PROJECT GRANTS AND PRIN-
CIPAL FORGIVENESS. 
‘‘(a) IN GENERAL.—A State shall allocate for pro-
viding assistance for high priority projects in accordance 
with the requirements of this section— 
‘‘(1) 50 percent of the total amount of capital-
ization grants received by the State in a fiscal year 
under section 601 that is attributable to funds ap-
propriated out of the Water Protection and Rein-
vestment Trust Fund; and 
‘‘(2) 50 percent of the State contributions made 
under section 602(b)(2) in connection with that total 
amount. 
‘‘(b) AUTHORITY TO MAKE GRANTS AND FORGIVE 
PRINCIPAL.—Notwithstanding the requirements of section 
603(d), assistance provided by a State for high priority 
projects under subsection (a) shall be in the form of a 
grant or a loan under which the State forgives repayment 
of 100 percent of the principal amount of the loan. 
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‘‘(c) 
IDENTIFICATION
OF
HIGH
PRIORITY 
PROJECTS.— 
‘‘(1) IN GENERAL.—A State shall provide as-
sistance under this section in a manner that is con-
sistent with the priority lists established under sec-
tions 216 and 603. 
‘‘(2) PRIORITY.—In providing assistance under 
this section, a State shall give greater weight to 
projects that address the most serious water pollu-
tion problems and— 
‘‘(A) benefit communities with the greatest 
need (determined on the basis of affordability 
criteria to be established by the State); or 
‘‘(B) incorporate nonstructural or decen-
tralized treatment practices. 
‘‘(d) MATCHING FUNDS.—The amount of a grant or 
loan for a project under this section shall be 50 percent 
of the project cost. The remaining project cost shall be 
provided by the State from sources other than capitaliza-
tion grants under section 601. 
‘‘(e) APPLICABILITY.—Subsection (a) shall apply 
with respect to each fiscal year beginning after the date 
of enactment of this section.’’. 
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(b) ELIGIBILITY OF INDIAN TRIBES.—Section 518(e) 
(33 U.S.C. 1377(e)) is amended by striking ‘‘and 406’’ 
and inserting ‘‘406, and 607’’. 
TITLE III—SAFE DRINKING 
WATER ACT FUNDING 
SEC. 301. USE OF STATE REVOLVING LOAN FUNDS. 
Section 1452(a)(2) of the Safe Drinking Water Act 
(42 U.S.C. 300j–12(a)(2)) is amended— 
(1) by redesignating the first through fifth sen-
tences as subparagraphs (A) through (E), respec-
tively, and by adjusting the margins of such sub-
paragraphs so as to align with subparagraph (B) (as 
amended by paragraph (2) of this section); and 
(2) by striking subparagraph (B), as so des-
ignated, and inserting the following: 
‘‘(B) Financial assistance under this sec-
tion may be used by a public water system only 
for expenditures (not including monitoring, op-
eration, and maintenance expenditures) of a 
type or category which the Administrator has 
determined, through guidance, will facilitate 
compliance with national primary drinking 
water regulations applicable to the system 
under section 1412 or otherwise significantly 
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further the health protection objectives of this 
title, including expenditures— 
‘‘(i) for planning, design, and associ-
ated preconstruction activities; 
‘‘(ii) to replace or rehabilitate aging 
treatment, storage (including reservoirs), 
or distribution facilities of public water 
systems; 
‘‘(iii) for capital projects to upgrade 
or enhance the security of public water 
systems; 
‘‘(iv) to consolidate management func-
tions with other public water systems; 
‘‘(v) to increase the energy efficiency 
or water efficiency (or both) of a public 
water system; or 
‘‘(vi) for onsite projects to generate 
renewable energy for a public water sys-
tem.’’. 
SEC. 302. PRIORITY SYSTEM REQUIREMENTS. 
Section 1452(b)(3) of the Safe Drinking Water Act 
(42 U.S.C. 300j–12(b)(3)) is amended— 
(1) in subparagraph (B), by striking ‘‘periodi-
cally’’ and inserting ‘‘at least biennially’’; 
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(2) by redesignating subparagraph (B) as sub-
paragraph (C); 
(3) by inserting after subparagraph (A) the fol-
lowing: 
‘‘(B) INFRASTRUCTURE
IMPROVEMENT.— 
Notwithstanding subparagraph (A), an intended 
use plan shall provide, to the maximum extent 
practicable, that priority for the use of at least 
1⁄3 of amounts made available from the Water 
Protection and Reinvestment Trust Fund estab-
lished by section 9511 of the Internal Revenue 
Code of 1986 to the State loan fund of the 
State be given to projects to replace or rehabili-
tate aging treatment, storage (including res-
ervoirs), or distribution facilities of public water 
systems that regularly serve more than 100,000 
persons.’’; and 
(4) by adding at the end the following: 
‘‘(D) WEIGHT GIVEN TO APPLICATIONS.— 
In determining project priorities, the State shall 
give greater weight to an application for assist-
ance by a public water system if the application 
includes— 
‘‘(i) an inventory of assets, including 
a description of the condition of the assets; 
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‘‘(ii) a schedule for replacement of as-
sets; 
‘‘(iii) a financing plan that factors in 
all life-cycle costs indicating sources of rev-
enue from ratepayers, grants, bonds, other 
loans, and other sources to meet the costs; 
‘‘(iv) in the case of a public water sys-
tem that regularly serves fewer than 
10,000 persons, a review of options for 
consolidating management functions of the 
system with management functions of 
other public water systems; 
‘‘(v) reliance on methodologies or 
technologies that are environmentally sen-
sitive, non-structural, or both environ-
mentally sensitive and non-structural; 
‘‘(vi) demonstration of consistency 
with State, regional, and municipal water-
shed plans; 
‘‘(vii) a water conservation plan con-
sistent with guidelines published for such 
plans by the Administrator pursuant to 
section 1455(a); 
‘‘(viii) approaches to improve the sus-
tainability of the system such as— 
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‘‘(I) water efficiency or conserva-
tion; 
‘‘(II) use of reclaimed water; and 
‘‘(III) actions to increase energy 
efficiency; and 
‘‘(ix) such other information as the 
State determines necessary.’’. 
SEC. 303. AFFORDABILITY. 
Section 1452(d)(3) of the Safe Drinking Water Act 
(42 U.S.C. 300j–12(d)(3)) is amended in the first sen-
tence by inserting ‘‘or portion of a service area’’ after 
‘‘service area’’. 
SEC. 304. NEEDS SURVEY. 
Section 1452(h) of the Safe Drinking Water Act (42 
U.S.C. 300j–12(h)) is amended— 
(1) by striking ‘‘The Administrator shall con-
duct’’ and inserting the following: 
‘‘(1) IN
GENERAL.—The Administrator shall 
conduct’’; and 
(2) by adding at the end following: 
‘‘(2) REPORT.—Each report under paragraph 
(1) shall detail the capital improvement needs of eli-
gible public water systems according to the popu-
lation served by such water systems and shall in-
clude not fewer than 4 size categories of public 
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water systems. One such size category shall consist 
of public water systems serving a population of not 
less than 100,000 and the other such size categories 
shall consist of public water systems serving popu-
lations of less than 100,000.’’. 
SEC. 305. NEGOTIATION OF CONTRACTS. 
Section 1452 of the Safe Drinking Water Act (42 
U.S.C. 300j–12) is amended by adding at the end the fol-
lowing: 
‘‘(s) NEGOTIATION OF CONTRACTS.—A contract to 
be carried out using funds made directly available by a 
capitalization grant under this section for program man-
agement, construction management, feasibility studies, 
preliminary engineering, design, engineering, surveying, 
mapping, or architectural or related services shall be nego-
tiated in the same manner as— 
‘‘(1) a contract for architectural and engineer-
ing services is negotiated under chapter 11 of title 
40, United States Code; or 
‘‘(2) an equivalent State qualifications-based re-
quirement (as determined by the Governor of the 
State).’’. 
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SEC. 306. DRINKING WATER TECHNICAL ASSISTANCE FOR 
COMMUNITIES. 
Section 1442(e) of the Safe Drinking Water Act (42 
U.S.C. 300j–1(e)) is amended— 
(1) in the first sentence, by striking ‘‘The Ad-
ministrator may provide’’ and inserting the fol-
lowing: 
‘‘(1) PUBLIC WATER SYSTEMS.—The Adminis-
trator may provide’’; 
(2) by striking the term ‘‘subsection’’ each 
place it appears and inserting ‘‘paragraph’’; 
(3) by striking the fifth sentence and all that 
follows and inserting the following: 
‘‘In providing assistance under this paragraph, the Admin-
istrator shall give priority to small public water systems 
that have, either individually or collectively, the greatest 
need in the States, and to nonprofit organizations deter-
mined by the Administrator to be qualified and most effec-
tive at assisting such small public water systems.’’; and 
(4) by adding at the end the following new 
paragraphs: 
‘‘(2) WELLS AND WELL SYSTEMS.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall provide grants to nonprofit organizations 
to provide technical assistance to communities 
and individuals regarding the design, operation, 
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construction, and maintenance of household 
wells and small shared well-systems that pro-
vide drinking water. 
‘‘(B) FORM
OF
ASSISTANCE.—Technical 
assistance referred to in subparagraph (A) may 
include— 
‘‘(i) training and education; 
‘‘(ii) operation of a hotline; and 
‘‘(iii) conducting other activities relat-
ing to the design and construction of 
household, shared, and small water well 
systems. 
‘‘(C) 
PRIORITY.—In 
providing 
grants 
under this paragraph, the Administrator shall 
give priority to nonprofit organization appli-
cants that, as determined by the Adminis-
trator— 
‘‘(i) are qualified; 
‘‘(ii) will be the most effective at as-
sisting those communities or individuals 
that have, either individually or collectively, 
the greatest need in the States; and 
‘‘(iii) have demonstrated experience in 
providing similar technical assistance and 
in developing similar projects. 
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‘‘(3) FUNDING.— 
‘‘(A) LOBBYING
EXPENSES.—No portion 
of any State loan fund established under section 
1452 and no portion of any funds made avail-
able under this subsection may be used for lob-
bying expenses. 
‘‘(B) 
INDIAN
TRIBES.—Of 
the 
total 
amount made available under this subsection 
for each fiscal year, 3 percent shall be used for 
technical assistance to public water systems 
owned or operated by Indian tribes.’’. 
TITLE IV—ADDITIONAL GRANT 
PROGRAMS 
SEC. 401. DEFINITIONS. 
In this title, the following definitions apply: 
(1) ACADEMY.—The term ‘‘Academy’’ means 
the National Academy of Sciences. 
(2) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency. 
(3) COMMUNITY
WATER
SYSTEM.—The term 
‘‘community water system’’ has the meaning given 
that term in section 1401 of the Safe Drinking 
Water Act (42 U.S.C. 300f). 
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(4) PUBLIC WATER SYSTEM.—The term ‘‘public 
water system’’ has the meaning given that term in 
section 1401 of the Safe Drinking Water Act (42 
U.S.C. 300f). 
(5) TREATMENT WORKS.—The term ‘‘treatment 
works’’ has the meaning given that term in section 
212 of the Federal Water Pollution Control Act (33 
U.S.C. 1292). 
(6) WATER PROTECTION AND REINVESTMENT 
TRUST FUND.—The term ‘‘Water Protection and Re-
investment Trust Fund’’ means the trust fund es-
tablished by section 9511 of the Internal Revenue 
Code of 1986, as added by section 101(a) of this 
Act. 
SEC. 402. TREATMENT WORKS AND COMMUNITY WATER 
SYSTEM SECURITY GRANTS. 
(a) GRANTS FOR SECURITY ENHANCEMENTS.—The 
Administrator may make a grant to any State, munici-
pality, publicly owned treatment works, or community 
water system— 
(1) for capital projects that increase the secu-
rity of the community water system or publicly 
owned treatment works; and 
(2) for the completion or update of a vulner-
ability assessment, emergency response plan, or site 
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security plan required under section 1433 of the 
Safe Drinking Water Act (42 U.S.C. 300i–2) or any 
other applicable law. 
(b) FEDERAL SHARE.—The Federal share of the 
costs for which a grant is made under this section shall 
be 65 percent. 
(c) FUNDING.—The Administrator shall carry out 
this section using funds appropriated out of the Water 
Protection and Reinvestment Trust Fund that are allo-
cated for that purpose under section 102. 
SEC. 403. CLIMATE CHANGE MITIGATION AND ADAPTATION 
GRANTS. 
(a) GRANT
PROGRAM.—The Administrator shall 
carry out a competitive grant program to support efforts 
by publicly owned treatment works and community water 
systems to take actions to increase energy efficiency, re-
duce greenhouse gas emissions, and mitigate the impacts 
of climate change. 
(b) ELIGIBLE ACTIVITIES.—In order to carry out the 
program under subsection (b), the Administrator shall 
award grants to publicly owned treatment works and com-
munity water systems for the following: 
(1) Facility or process modifications that reduce 
the use of energy or water, or both. 
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(2) The installation of small renewable energy 
generators, including methane capture, wind tur-
bines, and micro water turbines. 
(3) Sustainable practices that minimize the ad-
verse environmental impacts of climate change on 
water quality and quantity. 
(4) Projects that increase the ability of publicly 
owned treatment works or community water systems 
to withstand the impacts of climate change. 
(c) FEDERAL SHARE.—The Federal share of the 
costs for which a grant is made under this section shall 
be 65 percent. 
(d) MAXIMUM GRANT AMOUNT.—The Administrator 
shall not make a grant under this section to a grantee 
that exceeds $2,000,000 per fiscal year. 
(e) FUNDING.—The Administrator shall carry out 
this section using funds appropriated out of the Water 
Protection and Reinvestment Trust Fund that are allo-
cated for that purpose under section 102. 
SEC. 404. WORKFORCE DEVELOPMENT GRANTS. 
(a) TRAINING GRANTS AND CONTRACTS.— 
(1) FUNDING.—The Administrator may make 
grants under section 109 of the Federal Water Pol-
lution Control Act (33 U.S.C. 1259), using funds 
appropriated out of the Water Protection and Rein-
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vestment Trust Fund that are allocated for that 
purpose under section 102, to ensure that an ade-
quate supply of certified wastewater treatment oper-
ators exists. 
(2) AMENDMENTS.—Section 109 of such Act 
(33 U.S.C. 1259) is amended— 
(A) in the first sentence of subsection 
(a)— 
(i) by striking ‘‘operation,’’ and in-
serting ‘‘operation, construction,’’; 
(ii) by striking ‘‘and other facilities’’ 
and inserting ‘‘other facilities (including 
stormwater treatment facilities)’’; and 
(iii) by inserting ‘‘, and nonstructural 
treatment options’’ after ‘‘water quality 
control’’; 
(B) in subsection (b)(1) by striking ‘‘con-
struction’’ and inserting ‘‘construction, expan-
sion, or modernization’’; and 
(C) in subsection (b) by striking para-
graphs (3) and (4) and inserting the following: 
‘‘(3) Facilities for which grants are awarded under 
this section before, on, or after the date of enactment of 
this section are eligible for additional funding for mod-
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ernization and upgrades through grants under this sec-
tion.’’. 
(b) APPLICATION FOR TRAINING GRANT OR CON-
TRACT; ALLOCATION OF GRANTS OR CONTRACTS.—Sec-
tion 110(2) of such Act (33 U.S.C. 1260(2)) is amended 
by striking ‘‘United States’’ and inserting ‘‘States’’. 
(c) AWARD OF SCHOLARSHIPS.— 
(1) FUNDING.—The Administrator may award 
scholarships under section 111 of the Federal Water 
Pollution Control Act (33 U.S.C. 1261), using funds 
appropriated out of the Water Protection and Rein-
vestment Trust Fund that are allocated for that 
purpose under section 102, for undergraduate and 
graduate study by persons who plan to enter an oc-
cupation involving the operation and maintenance of 
treatment works. 
(2) AMENDMENTS.—Section 111 of such Act 
(33 U.S.C. 1261) is amended— 
(A) in paragraph (1)— 
(i) by striking ‘‘undergraduate’’ and 
inserting ‘‘undergraduate and graduate’’; 
(ii) by striking ‘‘operation’’ and in-
serting ‘‘construction, operation,’’; and 
(iii) by striking ‘‘but not to exceed 
four academic years’’; 
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(B) in paragraph (2)— 
(i) by striking ‘‘use of individuals’’ 
and inserting ‘‘use by individuals’’; 
(ii) by striking ‘‘United States’’ in-
serting ‘‘States’’; and 
(iii) by striking ‘‘secondary’’ and in-
serting ‘‘secondary and post-secondary’’; 
and 
(C) in paragraph (3)(D) by striking ‘‘oper-
ation’’ each place it appears and inserting ‘‘de-
sign, operation,’’. 
(d) RESEARCH, TECHNICAL ASSISTANCE, INFORMA-
TION, TRAINING
OF PERSONNEL.—The Administrator 
may establish training programs and make grants under 
section 1442(c) of the Safe Drinking Water Act (42 
U.S.C. 300j–1(c)) using funds appropriated out of the 
Water Protection and Reinvestment Trust Fund that are 
allocated for that purpose under section 102. 
SEC. 405. SEWER OVERFLOW CONTROL GRANTS. 
(a) IN GENERAL.—The Administrator may make 
grants under section 221 of the Federal Water Pollution 
Control Act (33 U.S.C. 1301) using funds appropriated 
out of the Water Protection and Reinvestment Trust Fund 
that are allocated for that purpose under section 102. 
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(b) PRIORITIZATION.—Section 221(b) of the Federal 
Water Pollution Control Act (33 U.S.C. 1301(b)) is 
amended— 
(1) by striking ‘‘or’’ at the end of paragraph 
(3); 
(2) by striking the period at the end of para-
graph (4) and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(5) is applying for a grant for a project that 
involves the use of— 
‘‘(A) nonstructural, low-impact develop-
ment; 
‘‘(B) water conservation, efficiency, or 
reuse; or 
‘‘(C) other decentralized stormwater or 
wastewater approaches to minimize flows into 
sewer systems.’’. 
(c) CONFORMING AMENDMENTS.—Section 221(a) of 
such Act (33 U.S.C. 1301(a)) is amended— 
(1) by striking ‘‘In any’’ and all that follows 
through ‘‘(1) the’’ and inserting ‘‘The’’; 
(2) by striking ‘‘overflows’’ and all that follows 
through ‘‘(2) subject to’’ and inserting ‘‘overflows. 
Subject to’’; and 
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(3) by striking ‘‘paragraph (1)’’ and inserting 
‘‘the preceding sentence’’. 
SEC. 406. RESEARCH, DEVELOPMENT, AND TECHNOLOGY 
DEMONSTRATION PROGRAM. 
(a) IN GENERAL.—Not later than one year after the 
date of enactment of this Act, the Administrator shall es-
tablish a national water infrastructure research, develop-
ment, and demonstration program to develop, dem-
onstrate, and transfer innovative or improved technologies 
and methods for the treatment, control, transport, and 
reuse of drinking water and wastewater. These tech-
nologies and methods may include— 
(1) reducing energy consumption in water and 
wastewater infrastructure; 
(2) recovering energy and nutrient resources 
from wastewater; 
(3) reducing water consumption and returning 
water for ecosystem use; 
(4) on-site technologies to generate renewable 
energy at a publicly owned treatment works, commu-
nity water system, or other municipal water or 
wastewater facility; 
(5) measures to control, manage, reduce, treat, 
infiltrate, or reuse municipal stormwater; 
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(6) decentralized or distributed stormwater and 
wastewater controls and treatment; 
(7) low impact development technologies and 
non-structural approaches to treat drinking water, 
wastewater, and stormwater; 
(8) reducing the costs of compliance with the 
Federal Water Pollution Control Act (33 U.S.C. 
1251 et seq.) and the Safe Drinking Water Act (42 
U.S.C. 300f et seq.), while retaining or enhancing 
environmental benefits; 
(9) 
improving 
control 
and 
treatment 
of 
stormwater and nonpoint sources of pollution; 
(10) mitigating and adapting to climate change; 
(11) dual systems that re-use stormwater and 
wastewater for non-potable water resource needs; 
(12) development of a new generation of water 
monitoring reporting and notification techniques; 
and 
(13) controlling, limiting, treating, or pre-
venting pharmaceutical and personal care products 
from being in or entering waters of the United 
States. 
(b) CONSULTATION.—In administering the program 
under this section, the Administrator shall annually hold 
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a national meeting to bring together major stakeholders, 
including representatives from the following: 
(1) The public. 
(2) States, local governments, and organizations 
representing States or local governments. 
(3) The National Science Foundation, the Na-
tional Academy of Science, the National Academy of 
Engineering, the Army Corps of Engineers, the Na-
tional Oceanic and Atmospheric Administration, the 
Department of Agriculture, the United States Geo-
logical Survey, the White House Office of Science 
and Technology Policy, the Department of Energy, 
and the Council on Environmental Quality. 
(4) Universities, colleges, and other institutions 
of higher education. 
(5) Other public nonprofit entities with exper-
tise in research and development of technologies for 
the treatment, control, transport, and re-use of 
drinking water, stormwater, and wastewater. 
(c) COOPERATIVE AGREEMENTS
OR GRANTS.—In 
carrying out the program under this section, the Adminis-
trator may enter into cooperative agreements or make 
grants or, both, to develop improved technologies and 
methods under subsection (a) with or to nonprofit and 
governmental entities having demonstrated expertise in re-
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search and development of the treatment, control, trans-
port, and re-use of drinking water, stormwater, and waste-
water, including the following entities: 
(1) The Water Environment Research Founda-
tion. 
(2) The Water Research Foundation. 
(3) Public nonprofit entities, including those 
whose members or subscribers include drinking 
water, stormwater, and wastewater utilities and local 
governments. 
(4) Universities, colleges, and other institutions 
of higher education. 
(5) Local governments, including publicly 
owned treatment works and community water sys-
tems. 
(6) The National Science Foundation. 
(7) The National Institutes for Water Re-
sources. 
(d) DEMONSTRATION
PROJECTS.—The Adminis-
trator is authorized to enter into cooperative agreements 
with entities described in subsection (c) and for-profit en-
tities to demonstrate the viability and effectiveness of a 
new technology for the treatment, control, transport, and 
re-use of drinking water, stormwater, or wastewater. 
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(e) SELECTION.—In entering into cooperative agree-
ments and making grants under subsection (c), the Ad-
ministrator shall give priority to cooperative agreements 
and grants that— 
(1) create multiple environmental, social, and 
economic benefits for communities; and 
(2) consider— 
(A) a variety of water resource opportuni-
ties and needs; 
(B) unique and diverse geology and geog-
raphy; 
(C) the ability to provide the greatest tech-
nological diversity using limited financial re-
sources; and 
(D) the commitment of each community or 
regional area to find and fund appropriate al-
ternative technologies to resolve their water in-
frastructure needs. 
(f) FEDERAL SHARE.—The Federal share of the 
costs for which a grant is made under this section shall 
be 65 percent; except that the Administrator may increase 
such Federal share based on the purpose for which the 
grant is made and the type of grant recipient. 
(g) FUNDING.—The Administrator shall carry out 
this section using funds appropriated out of the Water 
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Protection and Reinvestment Trust Fund that are allo-
cated for that purpose under section 102. 
(h) REPORT
TO
CONGRESS.—The Administrator 
shall prepare and submit a biennial report to Congress on 
the results of technology research, development, and full- 
scale demonstrations performed under this section and 
recommendations for encouraging the use of such tech-
nologies by drinking water, stormwater, and wastewater 
utilities. 
SEC. 407. REGIONAL WATER RESEARCH CENTERS. 
(a) REGIONAL CENTERS.— 
(1) GRANTS.—The Administrator, in collabora-
tion with the Director of the National Science Foun-
dation, shall make grants to nonprofit institutions of 
higher learning to establish and operate one univer-
sity water research center in each of such 21 hydro- 
regions as the Administrator, in consultation with 
the United States Geological Survey, may establish. 
The Administrator, in consultation with the United 
States Geological Survey, may adjust the boundaries 
of such regions to assure that none of the 
conterminous regions are either larger or smaller 
than another by more than two fold. 
(2) DESIGNATION
OF
NATIONAL
WATER
RE-
SEARCH CENTER.—The Administrator, in collabora-
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tion with the Director, shall designate one of the 21 
university water research centers as the ‘‘National 
Water Research Center’’. 
(3) MISSION.— 
(A) IN GENERAL.—The mission of the cen-
ters shall be to conduct and coordinate strategic 
research, education, and outreach for sustain-
able management of water resources in every 
hydro-climatic region of the United States. 
(B) NATIONAL
WATER
RESEARCH
CEN-
TER.—In addition to its mission under subpara-
graph (A), the mission of the National Water 
Research Center shall be to gather, archive, and 
publish data from the regional centers and to 
integrate the regional findings into a national 
research strategy. 
(4) DEFINITION.—For purposes of this section, 
the term ‘‘nonprofit institution of higher learning’’ 
includes a consortium of nonprofit institutions of 
higher learning. 
(b) SELECTION OF GRANT RECIPIENTS.— 
(1) APPLICATIONS.—In order to be eligible to 
receive a grant under this section, a nonprofit insti-
tution of higher learning shall submit to the Admin-
istrator an application that is in such form and con-
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tains such information as the Administrator may re-
quire. 
(2) SELECTION CRITERIA.—Except as otherwise 
provided by this section, the Administrator, in col-
laboration with the Director, shall select each recipi-
ent of a grant under this section through a competi-
tive process on the basis of the following: 
(A) The location of the center within the 
region to be served. 
(B) The demonstrated research and exten-
sion resources available to the recipient to carry 
out the objectives of this section. 
(C) The capability of the recipient to pro-
vide leadership in making national and regional 
contributions to the solution of immediate and 
long-range water supply, water infrastructure, 
and water quality problems. 
(D) The recipient’s establishment of a 
water program encompassing several areas of 
water research. 
(E) The recipient’s demonstrated commit-
ment of at least $400,000 each year in regu-
larly budgeted institutional amounts to support 
ongoing research in water and education pro-
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grams through a statewide or region-wide con-
tinuing education program. 
(F) The recipient’s demonstrated ability to 
disseminate results of water research and edu-
cation programs through a statewide or region- 
wide continuing education program, 
(G) The strategic plan the recipient pro-
poses to implement in order to carry out the 
purposes for which the grant will be made. 
(H) The recipient’s demonstration that it 
has a well-established, nationally recognized 
program in water research and education, as 
evidenced by— 
(i) not less than 10 graduate degrees 
awarded in professional fields closely re-
lated to water each year for each of the 5 
calendar years preceding the date of the 
submission of the application for the grant; 
and 
(ii) not less than 10 tenured or ten-
ure-track faculty members who specialize 
on a full-time basis in professional fields 
closely related to water who, as a group, 
have published a total or at least 50 jour-
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nal publications on water research during 
the preceding 5 calendar years. 
(c) OBJECTIVES.—Except for a grant for the estab-
lishment and operation of the National Water Research 
Center, a grant made under this section may only be used 
to establish and operate a university water research center 
in accordance with this section, including the conduct of 
the following activities and programs: 
(1) RESEARCH.—Basic and applied research, 
the products of which are judged by peers or other 
experts in the field of water to advanced the body 
of knowledge in water availability and use, water 
quality, water infrastructure sustainability, and 
water institutions. 
(2) EDUCATION.—An education program relat-
ing to water that includes multidisciplinary course 
work and participation in research. 
(3) TECHNOLOGY TRANSFER.—An ongoing pro-
gram of technology transfer that makes water re-
search results available to potential users, including 
policymakers, in a form that can be implemented, 
utilized, or otherwise applied. 
(d) CONTINUING GRANTS.— 
(1) PERIOD OF GRANTS.—After selecting a non-
profit institution of higher learning as a grant re-
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cipient on the basis of a competition conducted 
under this section, the Administrator, in collabora-
tion with the Director, shall make a grant to the se-
lected grant recipient to establish and operate a re-
gional university water center under this section in 
each of the first 5 fiscal years beginning after the 
date of the competition. 
(2) GRANT AGREEMENT.—In order to be eligi-
ble to receive a grant under this section, a recipient 
shall enter into an agreement with the Administrator 
to ensure that the recipient will maintain total ex-
penditures from all other sources to establish and 
operate a university water research center (including 
the conduct of activities and programs the center is 
authorized to carry out under subsection (c) and 
subsections (a)(3)(B) and (f) in the case of the Na-
tional Water Research Center) at least equal to the 
average level of such expenditures in its 2 fiscal 
years before the award of the grant under this sec-
tion. 
(3) COMPETITION DEADLINE.—Not later than 
the last day of the one-year period following the date 
of enactment of this Act and March 31st of each 5th 
year thereafter, the Administrator, in collaboration 
with the Director, shall complete a competition 
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among nonprofit institutions of higher learning for 
grants to establish and operate the 21 regional uni-
versity water centers referred to in subsection (a). 
(4) AMOUNT OF GRANTS.—The Administrator 
shall make a grant to a nonprofit institution of high-
er learning selected under this section to be a grant 
recipient for the establishment and operation of a re-
gional university water center (including the conduct 
of activities and programs described in subsection 
(c)) of at least $2,000,000 for each fiscal year but 
no more than $4,000,000; except that a grant for 
establishment and operation of the National Water 
Research Center (including the conduct of the activi-
ties described in subsections (a)(3)(B), (c), and (f)) 
shall be at least $6,000,000 for each fiscal year but 
no more than $12,000,000. 
(e) FEDERAL SHARE.—The Federal share of the 
costs of establishment and operation of a center under this 
section (including the conduct of the activities and pro-
grams the center is authorized to carry out under sub-
section (c) and subsections (a)(3)(B) and (f) in the case 
of the Nation Water Research Center) through a grant 
made under this section shall be 50 percent in the case 
of a regional university water center and 85 percent in 
the case of the National Water Research Center. 
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(f) PROGRAM COORDINATION.— 
(1) COORDINATION.—The Administrator, work-
ing through the National Water Research Center, 
shall— 
(A) support a network of university water 
centers to coordinate and facilitate information 
technology development and implementation 
across the centers; 
(B) coordinate research, education, train-
ing, and technology transfer activities that 
grant recipients are authorized to carry out 
under this section; 
(C) synthesize research conducted under 
this section; 
(D) disseminate the results of the research; 
and 
(E) establish and operate a clearinghouse 
to disseminate the results of the research. 
(2) ANNUAL
REVIEW
AND
EVALUATION.—At 
least annually, the Administrator shall review and 
evaluate the activities and programs that grant re-
cipients carry out through the use of grants made to 
such recipients under this section. 
(3) FUNDING LIMITATION.—The Administrator 
may not use more than one percent of the amounts 
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made available to carry out this section for a fiscal 
year to carry out management and oversight of the 
centers established through grants made under this 
section. 
(g) FUNDING.—The Administrator shall carry out 
this section using funds appropriated out of the Water 
Protection and Reinvestment Trust Fund that are allo-
cated for that purpose under section 102. 
(h) LIMITATION
ON AVAILABILITY
OF FUNDS.— 
Funds made available to carry out this section shall re-
main available for obligation by the Administrator for a 
period of 2 years after the last day of the fiscal year for 
which the funds are authorized. 
SEC. 408. COST OF SERVICE STUDY. 
(a) IN GENERAL.—Not later than 2 years after the 
date of enactment of this Act, the Administrator shall 
enter an arrangement with the Academy under which the 
Academy shall complete and provide to the Administrator 
the results of a study of the means by which public water 
systems and treatment works selected by the Academy in 
accordance with subsection (c) meet the costs associated 
with operations, maintenance, capital replacement, and 
regulatory requirements. In addition, the study shall be 
conducted for the purposes set forth in subsection (b). 
(b) REQUIRED ELEMENTS.— 
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(1) AFFORDABILITY.—The purposes of the 
study shall be, at a minimum, to— 
(A) determine whether the rates at public 
water systems and treatment works for commu-
nities included in the study are using a full-cost 
pricing model; 
(B) identify, if a full-cost pricing model is 
not being used, any incentive rate systems that 
have been successful in significantly reducing— 
(i) per capita water demand; 
(ii) the volume of wastewater flows; 
(iii) the volume of stormwater runoff; 
or 
(iv) the quantity of pollution gen-
erated by stormwater; 
(C) identify a set of best industry practices 
that public water systems and treatment works 
may use in establishing a rate structure that— 
(i) adequately addresses the true cost 
of services provided to consumers by public 
water systems and treatment works, in-
cluding infrastructure replacement; 
(ii) encourages water conservation; 
and 
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(iii) takes into consideration the needs 
of disadvantaged individuals and commu-
nities, as identified by the Administrator; 
(D) identify existing standards for afford-
ability and the manner in which those stand-
ards are determined and defined; 
(E) determine the manner in which afford-
ability varies with respect to communities of 
different sizes and in different regions; and 
(F) determine the extent to which afford-
ability affects the decision of a community to 
increase public water system and treatment 
works rates (including the decision relating to 
the percentage by which those rates should be 
increased). 
(2) DISADVANTAGED COMMUNITIES.—In addi-
tion, the purposes of the study shall be, at a min-
imum, to— 
(A) survey a cross-section of States rep-
resenting different sizes, demographics, and 
geographical regions; 
(B) describe, for each State surveyed 
under subparagraph (A), the definition of ‘‘dis-
advantaged community’’ used in the State in 
carrying out projects and activities under the 
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Safe Drinking Water Act (42 U.S.C. 300f et 
seq.); 
(C) review other means of identifying the 
meaning of the term ‘‘disadvantaged’’, as that 
term applies to communities; 
(D) determine which factors and character-
istics are required for a community to be con-
sidered ‘‘disadvantaged’’; and 
(E) evaluate the degree to which factors 
such as a reduction in the tax base over a pe-
riod of time, a reduction in population, the loss 
of an industrial base, and the existence of areas 
of concentrated poverty are taken into account 
in determining whether a community is a dis-
advantaged community. 
(c) SELECTION
OF COMMUNITIES.—The Academy 
shall select the public water systems and treatment works 
for the study under subsection (a) from a cross-section 
of communities representing various populations, income 
levels, demographics, and geographical regions. 
(d) FUNDING.—The Administrator shall carry out 
this section using funds appropriated out of the Water 
Protection and Reinvestment Trust Fund that are allo-
cated for that purpose under section 102. 
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SEC. 409. DRUG TAKE-BACK GRANTS. 
(a) GRANT PROGRAM.— 
(1) IN
GENERAL.—Not later than one year 
after the date of enactment of this Act, the Adminis-
trator shall establish a competitive grant program to 
make grants to local and State organizations, tribes, 
nonprofit entities, and other government entities— 
(A) to take back prescription and over-the- 
counter drugs from the public; and 
(B) to dispose of the drugs in an environ-
mentally sound manner. 
(2) REQUIREMENTS.—In order to be eligible to 
receive a grant under this subsection, each applicant 
for such a grant shall demonstrate to the satisfac-
tion of the Administrator that, in undertaking the 
activities described in paragraph (1) under the 
grant, the applicant will— 
(A) protect public safety by ensuring that 
the drugs will be properly disposed of; 
(B) incorporate environmentally sound 
practices for disposing of controlled substances 
(by means other than disposal into a public or 
private wastewater treatment system or a mu-
nicipal solid waste landfill); 
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(C) follow the existing requirements of the 
Controlled Substances Act (21 U.S.C. 801 et 
seq.); and 
(D) meet such additional requirements as 
the Administrator may establish. 
(3) COLLECTION
OF
DIFFERENT
TYPES
OF 
DRUGS.— 
(A) IN GENERAL.—A take-back program 
does not need to collect and dispose of both pre-
scription and over-the-counter drugs to be eligi-
ble for grant funding under this subsection. 
(B) PREFERENCE.—Notwithstanding sub-
paragraph (A), the Administrator, in awarding 
grants under this subsection, may give pref-
erence to applicants proposing to collect and 
dispose of both prescription and over-the- 
counter drugs. 
(4) NO
FUNDING
RESTRICTION.—Entities re-
ceiving funds under this subsection may continue to 
receive funding from other public and private 
sources. 
(5) DEFINITIONS.—In this subsection: 
(A) The term ‘‘drug’’— 
(i) has the meaning given to such 
term in section 201 of the Federal Food, 
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