I 
108TH CONGRESS 
1ST SESSION H. R. 2123
To amend the Safe Drinking Water Act and the Federal Water Pollution 
Control Act concerning water pollution resulting from discharges of per-
chlorate. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 15, 2003
Mrs. CAPPS (for herself, Mr. BISHOP of New York, Ms. LOFGREN, Mr. 
HONDA, Mr. BEREUTER, Ms. DELAURO, Mr. GEORGE MILLER of Cali-
fornia, Mr. GRIJALVA, Mr. MCGOVERN, Mrs. DAVIS of California, Mr. 
SANDERS, Ms. LEE, Mrs. MALONEY, Mr. THOMPSON of California, Ms. 
MCCOLLUM, Mr. LANTOS, Ms. ROYBAL-ALLARD, Ms. EDDIE BERNICE 
JOHNSON of Texas, Ms. LINDA T. SA´NCHEZ of California, and Ms. JACK-
SON-LEE of Texas) introduced the following bill; which was referred to 
the Committee on Transportation and Infrastructure, and in addition to 
the Committee on Energy and Commerce, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Safe Drinking Water Act and the Federal 
Water Pollution Control Act concerning water pollution 
resulting from discharges of perchlorate.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Preventing Perchlorate 
Pollution Act of 2003’’.
SEC. 
2. 
MAXIMUM 
CONTAMINANT 
LEVEL 
FOR 
PER-
CHLORATE. 
Section 1412(b)(12) of the Safe Drinking Water Act 
(42 U.S.C. 300g–1(b)(12)) is amended by adding at the 
end the following: 
‘‘(C) PERCHLORATE.—
‘‘(i) DECLARATION OF PERCHLORATE 
AS CONTAMINANT.—Congress declares that 
perchlorate is a contaminant subject to 
regulation under this title. 
‘‘(ii) 
MAXIMUM
CONTAMINANT 
LEVEL.—Not later than July 1, 2004, the 
Administrator shall establish a maximum 
contaminant level for perchlorate that pro-
vides an adequate margin of safety for vul-
nerable populations (including children and 
pregnant women). 
‘‘(iii) REGULATION.—On and after 
the date of establishment of the maximum 
contaminant level under clause (ii), the Ad-
ministrator shall regulate perchlorate as an 
inorganic contaminant in accordance with 
part 141 of title 40, Code of Federal Regu-
lations (or a successor regulation).’’.
SEC. 3. PERCHLORATE POLLUTION PREVENTION. 
The Federal Water Pollution Control Act is amended 
by inserting after section 406 (33 U.S.C. 1346) the fol-
lowing: 
‘‘SEC. 407. PERCHLORATE POLLUTION PREVENTION. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) FUND.—The term ‘Fund’ means the Per-
chlorate Pollution Prevention Fund established by 
subsection (i)(1). 
‘‘(2) PERCHLORATE STORAGE FACILITY.—
‘‘(A) IN GENERAL.—The term ‘perchlorate 
storage facility’ means a facility that stores 
more than 375 pounds of perchlorate over the 
course of a calendar year. 
‘‘(B) EXCLUSION.—The term ‘perchlorate 
storage facility’ does not include a facility that 
stores perchlorate for a retail or law enforce-
ment purpose. 
‘‘(b) DISCHARGE OF PERCHLORATE.—
‘‘(1) NOTIFICATION.—
‘‘(A) IN
GENERAL.—Any person that, 
without regard to intent or negligence, causes 
or permits to occur a discharge of perchlorate 
into or on any waters of the United States shall 
notify the Administrator and the appropriate
State water pollution control agency of the dis-
charge as soon as practicable after—
‘‘(i) the person has knowledge of the 
discharge; and 
‘‘(ii) the notification may be provided 
without substantially impeding cleanup or 
other emergency measures. 
‘‘(B) CONTENTS
OF
NOTICE.—A notice 
under subparagraph (A) shall include—
‘‘(i) the volume of perchlorate dis-
charged; 
‘‘(ii) a description of the extent of the 
discharge; 
‘‘(iii) a copy of each document relat-
ing to any monitoring for potential dis-
charges undertaken by the person on or 
before the date of the discharge; and 
‘‘(iv) a description of any actions 
taken by the person in response to the dis-
charge. 
‘‘(C) FAILURE TO PROVIDE NOTICE.—For 
each day for which a person fails to provide the 
notice required by subparagraph (A), the per-
son shall—
‘‘(i) be guilty of a misdemeanor; and
‘‘(ii) be punished by a fine of not less 
than $500 nor more than $5,000. 
‘‘(2) DISCHARGE UNDER PERMIT.—Paragraph 
(1) applies to a discharge of perchlorate under a 
permit issued under section 402. 
‘‘(3) PENALTIES.—A penalty collected under 
paragraph (1)(C)(ii) shall be deposited in the Fund. 
‘‘(c) SUBMISSION OF INFORMATION.—Not later than 
January 1, 2005, each owner or operator of a perchlorate 
storage facility that has been operated, by that owner or 
operator or by any other person, at any time after January 
1, 1950, shall submit to the Administrator and the appro-
priate State water pollution control agency a report that 
includes, for the period beginning on January 1, 1950 (or 
such later date as the perchlorate storage facility initiated 
operations), and ending on the date of submission of the 
report—
‘‘(1) the volume of perchlorate stored during 
each calendar year at the perchlorate storage facil-
ity; 
‘‘(2) a description of each method of storage 
used; and 
‘‘(3) a copy of each document relating to any 
monitoring undertaken for potential discharges from 
the perchlorate storage facility.
‘‘(d) LIST
OF
PERCHLORATE
STORAGE
FACILI-
TIES.—Not later than June 1, 2005, and annually there-
after, the Administrator, in consultation with each State 
water pollution control agency, shall publish in the Federal 
register a list of perchlorate storage facilities operating in 
the United States at any time during the period—
‘‘(1) beginning on January 1, 1950; and 
‘‘(2) ending on the date of publication of the 
list. 
‘‘(e) LIST
OF PERCHLORATE DISCHARGES.—Not 
later than June 1, 2005, the Administrator, in consulta-
tion with each State water pollution control agency, shall 
annually publish in the Federal Register a list of dis-
charges of perchlorate that occurred during the 1-year pe-
riod preceding the date of publication of the report (in-
cluding a list of locations at which perchlorate was de-
tected in groundwater within the State during that pe-
riod). 
‘‘(f) PENALTIES.—
‘‘(1) IN GENERAL.—An owner or operator of a 
perchlorate storage facility that violates subsection 
(c) shall be liable for a civil penalty of not less than 
$500 nor more than $5,000 for each day of viola-
tion.
‘‘(2) DETERMINATION OF AMOUNT.—In deter-
mining the amount of a civil penalty, a court of com-
petent jurisdiction shall consider all relevant cir-
cumstances, including—
‘‘(A) the extent of harm or potential harm 
caused by the violation; 
‘‘(B) the nature of the violation; 
‘‘(C) the period over which the violation oc-
curred; 
‘‘(D) the frequency of any past violations 
by perchlorate storage facility involved; and 
‘‘(E) any action taken to remedy the viola-
tion. 
‘‘(3) DEPOSIT IN FUND.—A penalty collected 
under paragraph (1) shall be deposited in the Fund. 
‘‘(g) REGULATIONS.—Not later than June 1, 2005, 
the Administrator shall promulgate regulations that—
‘‘(1) require each perchlorate storage facility—
‘‘(A) to meet minimum, industry-estab-
lished training standards; and 
‘‘(B) to be operated in a manner consistent 
with industry-established best management 
practices; and 
‘‘(2) implement an outreach effort to educate 
owners and operators of perchlorate storage facilities
concerning the regulations promulgated under this 
subsection. 
‘‘(h) STATE LOAN PROGRAM.—
‘‘(1) IN GENERAL.—The Administrator, in co-
ordination with each State water pollution control 
agency, shall carry out a loan program to assist pub-
lic water suppliers and owners of private wells in ac-
quiring or providing water that meets applicable 
Federal and State standards for drinking water to 
replace water contaminated by perchlorate. 
‘‘(2) APPLICATIONS.—A public water supplier 
or owner of a private well that seeks to receive a 
loan under paragraph (1) shall submit to the Admin-
istrator an application that is in such form, and that 
contains such information, as the Administrator 
shall require. 
‘‘(3) AMOUNT.—A loan provided under para-
graph (1) shall be for not less than $10,000 and not 
more than $750,000. 
‘‘(4) TERM.—The term of a loan provided 
under paragraph (1) shall be—
‘‘(A) not more than 20 years, if the loan 
is secured by real property; or 
‘‘(B) not more than 10 years, if the loan 
is not secured by real property.
‘‘(5) INTEREST RATE.—The interest rate for a 
loan shall be equal to the rate of interest applicable 
at the time of the loan commitment to Federal secu-
rities having a term of 10 years. 
‘‘(6) USE OF LOAN FUNDS.—Funds from a loan 
provided under paragraph (1) may be used to pay 
up to 100 percent of costs incurred by the recipient 
of the loan in acquiring or providing water that 
meets applicable Federal and State standards for 
drinking water to replace water contaminated by 
perchlorate. 
‘‘(7) LOAN
FEE.—The Administrator may 
charge a loan fee, not to exceed an amount equal to 
2 percent of the amount of the loan, to an applicant 
for a loan under paragraph (1). 
‘‘(8) DEPOSIT
IN
FUND.—The Administrator 
shall deposit in the Fund repayments, including in-
terest, on loans provided under paragraph (1) and 
loan fees collected under paragraph (7). 
‘‘(i) 
PERCHLORATE
POLLUTION
PREVENTION 
FUND.—
‘‘(1) ESTABLISHMENT.—There is established in 
the Treasury of the United States a revolving fund, 
to be known as the ‘Perchlorate Pollution Prevention
Fund’, to be used in carrying out this section, con-
sisting of—
‘‘(A) such amounts as are deposited in the 
Fund under subsections (b)(3), (f)(3), and 
(h)(8); and 
‘‘(B) any interest earned on investment of 
amounts in the Fund under paragraph (3). 
‘‘(2) EXPENDITURES FROM FUND.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), upon request by the Administrator, 
the Secretary of the Treasury shall transfer 
from the Fund to the Administrator such 
amounts as the Administrator determines are 
necessary—
‘‘(i) to carry out this section; and 
‘‘(ii) to provide loans under subsection 
(h). 
‘‘(B) 
ADMINISTRATIVE
EXPENSES.—An 
amount not exceeding 5 percent of the amounts 
in the Fund shall be available in each fiscal 
year to pay the administrative expenses nec-
essary to carry out this section. 
‘‘(3) INVESTMENT OF AMOUNTS.—
‘‘(A) IN GENERAL.—The Secretary of the 
Treasury shall invest such portion of the Fund
as is not, in the judgment of the Secretary of 
the Treasury, required to meet current with-
drawals. Investments may be made only in in-
terest-bearing obligations of the United States. 
‘‘(B) ACQUISITION OF OBLIGATIONS.—For 
the purpose of investments under subparagraph 
(A), obligations may be acquired—
‘‘(i) on original issue at the issue 
price; or 
‘‘(ii) by purchase of outstanding obli-
gations at the market price. 
‘‘(C) SALE OF OBLIGATIONS.—Any obliga-
tion acquired by the Fund may be sold by the 
Secretary of the Treasury at the market price. 
‘‘(D) CREDITS TO FUND.—The interest on, 
and the proceeds from the sale or redemption 
of, any obligations held in the Fund shall be 
credited to and form a part of the Fund. 
‘‘(4) TRANSFERS OF AMOUNTS.—
‘‘(A) IN GENERAL.—The amounts required 
to be transferred to the Fund under this sub-
section shall be transferred at least monthly 
from the general fund of the Treasury to the 
Fund on the basis of estimates made by the 
Secretary of the Treasury.
‘‘(B) ADJUSTMENTS.—Proper adjustment 
shall be made in amounts subsequently trans-
ferred to the extent prior estimates were in ex-
cess of or less than the amounts required to be 
transferred. 
‘‘(j) REPORTS.—Not later than 1 year after the date 
of enactment of this section, and annually thereafter, the 
Administrator shall submit to the Committee on Environ-
ment and Public Works of the Senate and the Committee 
on Transportation and Infrastructure of the House of 
Representatives a report that describes progress made in 
implementing this section. 
‘‘(k) NO EFFECT ON STATE LAW.—Nothing in this 
section preempts or otherwise affects any State law (in-
cluding any State law that contains a requirement that 
is more stringent than a requirement under this section).’’.
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