SEC. 2. PERMITTING ISSUANCE OF REVENUE BONDS FOR
WASTEWATER TREATMENT ACTIVITIES.
(a) AUTHORITY TO ISSUE BONDS.—
(1) IN GENERAL.—The first sentence of section
490(a)(1) of the District of Columbia Self-Govern-
ment and Governmental Reorganization Act (sec.
47–334(a)(1), D.C. Code) is amended—
(A) by striking ‘‘and industrial’’ and in-
serting ‘‘industrial’’; and
(B) by striking the period at the end and
inserting the following: ‘‘, and water and sewer
facilities (as defined in paragraph (5)).’’.
(2) WATER
AND
SEWER
FACILITIES
DE-
FINED.—Section 490(a) of such Act (sec. 47–
334(a), D.C. Code) is amended by adding at the end
the following new paragraph:
‘‘(5) In paragraph (1), the term ‘water and sewer fa-
cilities’ means facilities for the obtaining, treatment, stor-
age, and distribution of water, the collection, storage,
treatment, and transportation of wastewater, storm drain-
age, and the disposal of liquids and solids resulting from
treatment.’’.
(b) USE OF REVENUES TO MAKE PAYMENTS ON
BONDS.—The second sentence of section 490(a)(3) of
such Act (sec. 47–334(a)(3), D.C. Code) is amended by
inserting after ‘‘property’’ each place it appears in sub-
paragraphs (A) and (B) the following: ‘‘(including water
and sewer enterprise fund revenues, assets, or other prop-
erty in the case of bonds, notes, or obligations issued with
respect to water and sewer facilities)’’.
(c) PERMITTING DELEGATION OF AUTHORITY TO
ISSUE REVENUE BONDS TO WATER AND SEWER AU-
THORITY.—
(1) IN
GENERAL.—Section 490 of such Act
(sec. 47–334, D.C. Code) is amended by adding at
the end the following new subsection:
‘‘(h)(1) The Council may delegate to the District of
Columbia Water and Sewer Authority established pursu-
ant to the Water and Sewer Authority Establishment and
Department of Public Works Reorganization Act of 1996
the authority of the Council under subsection (a) to issue
revenue bonds, notes, and other obligations to borrow
money to finance or assist in the financing or refinancing
of undertakings in the area of utilities facilities, pollution
control facilities, and water and sewer facilities (as defined
in subsection (a)(5)). The Authority may exercise author-
ity delegated to it by the Council as described in the first
sentence of this paragraph (whether such delegation is
made before or after the date of the enactment of this
subsection) only in accordance with this subsection.
‘‘(2) Revenue bonds, notes, and other obligations is-
sued by the District of Columbia Water and Sewer Au-
thority under a delegation of authority described in para-
graph (1) shall be issued by resolution of the Authority,
and any such resolution shall not be considered to be an
act of the Council.
‘‘(3) The provisions of subsections (a) through (e)
shall apply with respect to the District of Columbia Water
and Sewer Authority, the General Manager of the Author-
ity, and to revenue bonds, notes, and other obligations is-
sued by the Authority under a delegation of authority de-
scribed in paragraph (1) in the same manner as such pro-
visions apply with respect to the Council, to the Mayor,
and to revenue bonds, notes, and other obligations issued
by the Council under subsection (a)(1) (without regard to
whether or not the Council has authorized the application
of such provisions to the Authority or the General Man-
ager).
‘‘(4) The fourth sentence of section 446 shall not
apply to—
‘‘(A) any amount (including the amount of any
accrued interest or premium) obligated or expended
from the proceeds of the sale of any revenue bond,
note, or other obligation issued pursuant to this sub-
section;
‘‘(B) any amount obligated or expended for the
payment of the principal of, interest on, or any pre-
mium for any revenue bond, note, or other obligation
issued pursuant to this subsection;
‘‘(C) any amount obligated or expended to se-
cure any revenue bond, note, or other obligation is-
sued pursuant to this subsection; or
‘‘(D) any amount obligated or expended for re-
pair, maintenance, and capital improvements to fa-
cilities financed pursuant to this subsection.’’.
(2) CONFORMING
AMENDMENT.—The fourth
sentence of section 446 of such Act (sec. 47–304,
D.C. Code) is amended by striking ‘‘(f) and (g)(3)’’
and inserting ‘‘(f), (g)(3), and (h)(4)’’.
SEC. 3. TREATMENT OF REVENUES AND OBLIGATIONS.
(a) EXCLUSION OF REVENUES FOR PURPOSES OF
CAP ON AGGREGATE DISTRICT DEBT.—Paragraphs (1)
and (3)(A) of section 603(b) of the District of Columbia
Self-Government and Governmental Reorganization Act
(sec. 47–313(b), D.C. Code) are each amended by insert-
ing after ‘‘revenue bonds,’’ the following: ‘‘any revenues,
charges, or fees dedicated for the purposes of water and
sewer facilities described in section 490(a) (including fees
or revenues directed to servicing or securing revenue
bonds issued for such purposes),’’.
(b) EXCLUSION
OF OBLIGATIONS RELATING
TO
DEBT SERVICING PAYMENTS ON CERTAIN GENERAL OB-
LIGATION BONDS.—
(1) IN GENERAL.—Section 603(b)(2) of such
Act (sec. 47–313(b)(2), D.C. Code) is amended—
(A) by striking ‘‘and obligations’’ and in-
serting ‘‘obligations’’; and
(B) by inserting after ‘‘establishment,’’ the
following: ‘‘, and obligations incurred pursuant
to general obligation bonds of the District of
Columbia issued prior to October 1, 1996, for
the financing of Department of Public Works,
Water and Sewer Utility Administration capital
projects,’’.
(2) 
CONFORMING
AMENDMENT.—Section
603(b)(3)(B) of such Act (sec. 47–313(b)(3)(B),
D.C. Code) is amended by inserting after ‘‘bonds’’
the following: ‘‘(less the allocable portion of principal
and interest to be paid during the year on general
obligation bonds of the District of Columbia issued
prior to October 1, 1996, for the financing of De-
partment of Public Works, Water and Sewer Utility
Administration capital projects)’’.
SEC. 4. TREATMENT OF BUDGET OF WATER AND SEWER
AUTHORITY.
(a) PREPARATION
OF INDEPENDENT BUDGET.—
Subpart 1 of part D of title IV of the District of Columbia
Self-Government and Governmental Reorganization Act is
amended by inserting after section 445 the following new
section:
‘‘WATER AND SEWER AUTHORITY BUDGET
‘‘SEC. 445A. The District of Columbia Water and
Sewer Authority established pursuant to the Water and
Sewer Authority Establishment and Department of Public
Works Reorganization Act of 1996 shall prepare and an-
nually submit to the Mayor, for inclusion in the annual
budget, annual estimates of the expenditures and appro-
priations necessary for the operation of the Authority for
the year. All such estimates shall be forwarded by the
Mayor to the Council for its action pursuant to sections
446 and 603(c), without revision but subject to his rec-
ommendations. Notwithstanding any other provision of
this Act, the Council may comment or make recommenda-
tions concerning such annual estimates, but shall have no
authority under this Act to revise such estimates.’’.
(b) EXEMPTION FROM REDUCTIONS OF BUDGETS OF
INDEPENDENT AGENCIES.—Section 453(c) of such Act
(sec. 47–304.1(c), D.C. Code) is amended—