I 
112TH CONGRESS 
2D SESSION 
H. R. 6249 
To establish a Water Protection and Reinvestment Fund to support 
investments in clean water infrastructure, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 1, 2012 
Mr. BLUMENAUER introduced the following bill; which was referred to the 
Committee on Transportation and Infrastructure, and in addition to the 
Committees on Ways and Means and Science, Space, and Technology, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To establish a Water Protection and Reinvestment Fund 
to support investments in clean water infrastructure, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Water Protection and Reinvestment Act of 2012’’. 
(b) TABLE OF CONTENTS.— 
Sec. 1. Short title; table of contents. 
TITLE I—REVENUE 
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Sec. 101. Establishment and funding of Water Protection and Reinvestment 
Trust Fund. 
Sec. 102. CBO study on additional potential revenue sources. 
Sec. 103. Allocation of funds. 
TITLE II—STATE WATER POLLUTION CONTROL REVOLVING 
FUNDS 
Sec. 201. Amendment of Federal Water Pollution Control Act. 
Sec. 202. General authority for capitalization grants. 
Sec. 203. Capitalization grant agreements. 
Sec. 204. Water pollution control revolving loan funds. 
Sec. 205. High priority project grants and principal forgiveness. 
TITLE III—ADDITIONAL GRANT PROGRAMS 
Sec. 301. Definitions. 
Sec. 302. Technical assistance. 
Sec. 303. Workforce development grants. 
Sec. 304. Sewer overflow control grants. 
Sec. 305. Research, Development, and Technology Demonstration Program. 
Sec. 306. Regional water research centers. 
Sec. 307. Cost of service study. 
Sec. 308. Drug take-back grants. 
Sec. 309. Public education. 
Sec. 310. State revolving fund review process. 
TITLE IV—WASTEWATER INFRASTRUCTURE FINANCING 
Sec. 401. Establishment of innovative financing program. 
TITLE I—REVENUE 
SEC. 101. ESTABLISHMENT AND FUNDING OF WATER PRO-
TECTION AND REINVESTMENT TRUST FUND. 
(a) WATER
PROTECTION
AND
REINVESTMENT 
TRUST FUND.— 
(1) IN GENERAL.—Subchapter A of chapter 98 
of the Internal Revenue Code of 1986 (relating to 
establishment of trust funds) is amended by adding 
at the end the following new section: 
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‘‘SEC. 9512. WATER PROTECTION AND REINVESTMENT 
TRUST FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund 
to be known as the ‘Water Protection and Reinvestment 
Trust Fund’, consisting of such amounts as may be appro-
priated or credited to such fund as provided in this section 
or section 9602(b). 
‘‘(b) TRANSFERS TO TRUST FUND.—There are here-
by appropriated to the Water Protection and Reinvest-
ment Trust Fund amounts equivalent to the taxes received 
in the Treasury before January 1, 2019, under section 
4171 (relating to taxes relating to water). 
‘‘(c) EXPENDITURES.—Amounts in the Water Pro-
tection and Reinvestment Trust Fund shall be available 
to the Administrator of the Environmental Protection 
Agency, without further appropriation, only for purposes 
of investments in clean water infrastructure in accordance 
with the Water Protection and Reinvestment Act of 
2012.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for subchapter A of chapter 98 of such Code 
is amended by adding at the end the following new 
item: 
‘‘Sec. 9512. Water Protection and Reinvestment Trust Fund.’’. 
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(b) EXCISE TAXES FUNDING WATER PROTECTION 
AND REINVESTMENT TRUST FUND.— 
(1) IN GENERAL.—Chapter 32 of such Code is 
amended by inserting after subchapter D the fol-
lowing new subchapter: 
‘‘Subchapter E—Taxes Relating to Water 
‘‘Sec. 4171. Imposition of tax. 
‘‘Sec. 4172. Definitions and special rule. 
‘‘SEC. 4171. IMPOSITION OF TAX. 
‘‘(a) WATER-BASED BEVERAGE.—There is hereby 
imposed on the sale of any container of water-based bev-
erage by the manufacturer, producer, or importer thereof 
a tax equal to 3 cents per container of such beverage 
which is 5 gallons or less. For purposes of the preceding 
sentence, the manufacturer or producer is the entity that 
puts the beverage into the container subject to the tax 
under such sentence. 
‘‘(b) WATER DISPOSAL PRODUCT.—There is hereby 
imposed on the sale of any water disposal product by the 
manufacturer, producer, or importer thereof a tax equal 
to 3 percent of the price for which so sold. 
‘‘(c) PHARMACEUTICAL TAX.—There is hereby im-
posed on the sale of any pharmaceutical product by the 
manufacturer, producer, or importer thereof a tax equal 
to 0.5 percent of the price for which so sold. 
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‘‘(d) TERMINATION.—The taxes imposed by this sec-
tion shall not apply to any production, manufacture, or 
importation after December 31, 2019. 
‘‘SEC. 4172. DEFINITIONS AND SPECIAL RULE. 
‘‘(a) WATER-BASED BEVERAGE.—For purposes of 
this subchapter— 
‘‘(1) WATER-BASED
BEVERAGE.—The term 
‘water-based beverage’ means any beverage which 
is— 
‘‘(A) water, or 
‘‘(B) created by mixing water with other 
liquids, flavorings, vitamins, or other ingredi-
ents where the resulting product is at least 50 
percent water by weight. 
‘‘(2) EXCEPTIONS.—The term ‘water-based bev-
erage’ does not include— 
‘‘(A) any pharmaceutical product, 
‘‘(B) any alcoholic beverage, and 
‘‘(C) any product where— 
‘‘(i) at least 75 percent of the water 
that naturally existed in the product is re-
moved, 
‘‘(ii) the resulting concentrated prod-
uct is shipped and then the water replaced, 
and 
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‘‘(iii) the beverage is then packaged 
for sale. 
‘‘(3) CONTAINER.—The term ‘container’ means 
any can, glass bottle, plastic bottle, aseptic con-
tainer, or other sealed package for transportation 
and sale. 
‘‘(b) WATER DISPOSAL PRODUCT.—For purposes of 
this subchapter— 
‘‘(1) IN GENERAL.—The term ‘water disposal 
product’ means any of the following: soaps and de-
tergents, toiletries, toilet tissue, water softeners, and 
cooking oils. 
‘‘(2) SOAPS
AND
DETERGENTS.—The term 
‘soaps and detergents’ means— 
‘‘(A) soaps and other detergents, such as 
laundry detergents and dishwashing detergents, 
‘‘(B) toothpaste gels, and 
‘‘(C) tooth powders, 
as determined under regulations prescribed by the 
Secretary. 
‘‘(3) TOILETRIES.—The term ‘toiletries’ means 
toilet preparations such as perfumes, shaving prep-
arations, hair preparations, face creams, lotions (in-
cluding sunscreens), and other cosmetic prepara-
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tions, as determined under regulations prescribed by 
the Secretary. 
‘‘(4) TOILET TISSUE.—The term ‘toilet tissue’ 
means toilet tissue, as determined under regulations 
prescribed by the Secretary. 
‘‘(5) WATER
SOFTENERS.—The term ‘water 
softeners’ means farm, household, commercial, and 
industrial water softeners, as determined under reg-
ulations prescribed by the Secretary. 
‘‘(6) COOKING OILS.— 
‘‘(A) IN
GENERAL.—The term ‘cooking 
oils’ means corn oils, soy oils, and other vege-
table oils, as determined under regulations pre-
scribed by the Secretary. 
‘‘(B) EXCEPTION.—The term ‘cooking oils’ 
does not mean a product that the Secretary de-
termines, by regulation, is not typically disposed 
of, by consumers, directly in wastewater. 
‘‘(c) PHARMACEUTICAL PRODUCT.—The term ‘phar-
maceutical product’ means— 
‘‘(1) a drug (as defined in section 201 of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
321)), and 
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‘‘(2) a biological product (as defined in section 
351 of the Public Health Service Act (42 U.S.C. 
261)). 
‘‘(d) USE TREATED AS SALE.—For purposes of this 
subchapter, if any person manufactures, produces, or im-
ports any item on which tax is imposed under this sub-
chapter, and uses such item, then such person shall be 
liable for tax under this subchapter in the same manner 
as if such item were sold by such person.’’. 
(2) CONFORMING AMENDMENT.—The table of 
subchapters for chapter 32 of such Code is amended 
by inserting after the item relating to subchapter D 
the following new item: 
‘‘SUBCHAPTER E. TAXES RELATING TO WATER’’. 
(c) EFFECTIVE DATES.— 
(1) ESTABLISHMENT
OF
TRUST
FUND.—The 
amendments made by subsection (a) shall apply to 
taxable years beginning after the date of the enact-
ment of this Act. 
(2) EXCISE TAX.—The amendments made by 
subsection (b) shall apply to sales on or after the 
first calendar quarter beginning after 1 year after 
the date of the enactment of this Act. 
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SEC. 102. CBO STUDY ON ADDITIONAL POTENTIAL REV-
ENUE SOURCES. 
(a) STUDY.—The Director of the Congressional 
Budget Office shall conduct a study that— 
(1) evaluates existing studies and reports on po-
tential sources of revenue for a clean water trust 
fund; 
(2) analyzes and compares the potential fund-
ing mechanisms and revenue sources identified by 
these studies and reports (as well as others inde-
pendently identified by the Director); 
(3) identifies and discusses arguments for and 
against potential funding mechanisms and revenue 
sources; and 
(4) identifies potential funding mechanisms and 
revenue sources that are, alone or in combination, 
most likely to sufficiently support annual funding 
levels of at least $10,000,000. 
(b) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Director shall submit to Con-
gress a report on the results of the study. 
SEC. 103. ALLOCATION OF FUNDS. 
(a) IN GENERAL.—The Administrator of the Envi-
ronmental Protection Agency shall allocate the amount of 
funds made available to the Administrator out of the 
Water Protection and Reinvestment Fund established by 
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section 9512 of the Internal Revenue Code of 1986 for 
a fiscal year among programs and activities as follows: 
(1) 
CLEAN
WATER
PROGRAMS.—Of 
such 
amount, the Administrator shall make available— 
(A) 68 percent for making capitalization 
grants under section 601 of the Federal Water 
Pollution Control Act (33 U.S.C. 1381; relating 
to capitalization grants for State water pollu-
tion control revolving funds); 
(B) 3 percent for making grants under 
section 106 of such Act (33 U.S.C. 1256; relat-
ing to grants for pollution control programs); 
(C) 5 percent for making grants under sec-
tion 319 of such Act (33 U.S.C. 1329; relating 
to nonpoint source management programs); and 
(D) 2 percent for making grants under 
section 104(b)(8) of such Act (as added by sec-
tion 302 of this Act; relating to technical assist-
ance to rural and small municipalities and trib-
al governments). 
(2) ADDITIONAL GRANT PROGRAMS.—Of such 
total amount, the Administrator shall make avail-
able— 
(A) 0.25 percent for making grants under 
section 109 of the Federal Water Pollution 
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(b) TREATMENT OF FUNDS.—The funds made avail-
able for a program or activity under this section shall be 
in addition to any funds made available for the program 
or activity under any other provision of law. 
TITLE II—STATE WATER POLLU-
TION CONTROL REVOLVING 
FUNDS 
SEC. 201. AMENDMENT OF FEDERAL WATER POLLUTION 
CONTROL ACT. 
Except as otherwise expressly provided, whenever in 
this title an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a 
section or other provision of the Federal Water Pollution 
Control Act (33 U.S.C. 1251 et seq.). 
SEC. 202. GENERAL AUTHORITY FOR CAPITALIZATION 
GRANTS. 
Section 601(a) (33 U.S.C. 1381(a)) is amended by 
striking ‘‘for providing assistance’’ and all that follows 
through the period at the end and inserting the following: 
‘‘to accomplish the objectives, goals, and policies of this 
Act by providing assistance for projects and activities 
identified in section 603(c).’’. 
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SEC. 203. CAPITALIZATION GRANT AGREEMENTS. 
(a) SPECIFIC REQUIREMENTS.—Section 602(b) (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 a semicolon; and 
(3) by adding at the end the following: 
‘‘(11) the State will require that each contract 
and subcontract for program management, construc-
tion management, planning studies, feasibility stud-
ies, architectural services, preliminary engineering, 
design, engineering, surveying, mapping, and related 
services entered into using amounts from the fund 
will be awarded in the same way that a contract for 
architectural and engineering services is awarded 
under chapter 11 of title 40, United States Code, ex-
cept that such an award shall not be construed as 
conferring a proprietary interest upon the United 
States; 
‘‘(12) the State will not provide financial assist-
ance using amounts from the fund for any project 
that will provide substantial direct benefits to new 
communities, lots, or subdivisions, other than a 
project to construct an advanced decentralized 
wastewater system; 
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‘‘(13) the requirements of section 513 will apply 
to the construction of treatment works carried out in 
whole or in part with assistance made available by 
a State water pollution control revolving fund as au-
thorized under this title, or with assistance made 
available under section 205(m), or both, in the same 
manner as treatment works for which grants are 
made under this Act; and 
‘‘(14) the State will allocate funds for high pri-
ority projects in accordance with section 607.’’. 
(b) ADVANCED DECENTRALIZED WASTEWATER SYS-
TEM DEFINED.—Section 502 is amended by adding at the 
end the following: 
‘‘(26) ADVANCED
DECENTRALIZED
WASTE-
WATER SYSTEM.—The term ‘advanced decentralized 
wastewater system’ means a system for treating do-
mestic sewage that is located at or near a site at 
which the sewage is generated, provides more effec-
tive treatment than a conventional septic system, 
and includes a plan and funding mechanism for 
long-term maintenance.’’. 
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SEC. 204. WATER POLLUTION CONTROL REVOLVING LOAN 
FUNDS. 
(a) PROJECTS AND ACTIVITIES ELIGIBLE FOR AS-
SISTANCE.—Section 603(c) (33 U.S.C. 1383(c)) is amend-
ed to read as follows: 
‘‘(c) PROJECTS AND ACTIVITIES ELIGIBLE FOR AS-
SISTANCE.—The amounts of funds available to each State 
water pollution control revolving fund shall be used only 
for providing financial assistance— 
‘‘(1) to any municipality or intermunicipal, 
interstate, or State agency for construction of pub-
licly owned treatment works to address the needs of 
existing communities; 
‘‘(2) for implementation of measures to increase 
the security of publicly owned treatment works, in-
cluding vulnerability assessment updates and safer 
alternatives for treatment chemicals; 
‘‘(3) for implementation of a nonpoint manage-
ment program established under section 319; 
‘‘(4) for development and implementation of a 
conservation and management plan for an estuary 
under section 320; 
‘‘(5) for implementation of measures to man-
age, reduce, treat, capture, or reuse municipal storm 
water, agricultural storm water, and return flows 
from irrigated agriculture; 
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‘‘(6) for repair or replacement of decentralized 
wastewater treatment systems that treat domestic 
sewage; 
‘‘(7) to any municipality or intermunicipal, 
interstate, or State agency for implementation of 
measures to reduce the demand for publicly owned 
treatment works capacity through water conserva-
tion, efficiency, or reuse; 
‘‘(8) for implementation of measures to inte-
grate water resource management planning and im-
plementation; 
‘‘(9) to any municipality or intermunicipal, 
interstate, or State agency for measures to reduce 
the energy consumption needs for publicly owned 
treatment works, including the implementation of 
energy efficient or renewable generation tech-
nologies; 
‘‘(10) for projects to correct failing residential 
septic systems or cesspools; and 
‘‘(11) for implementation of technologies, man-
agement programs, or other measures— 
‘‘(A) to improve monitoring for and to 
alert the owner or operator of a publicly owned 
treatment works of the occurrence of a spill, 
overflow, or other discharge or release; and 
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‘‘(B) to provide for public notification of a 
spill, overflow, or other discharge or release of 
pollution into waters of the United States or 
from point sources into areas in which there is 
a potential risk of public exposure.’’. 
(b) 
EXTENDED
REPAYMENT
PERIOD.—Section 
603(d)(1) (33 U.S.C. 1383(d)(1)) is amended— 
(1) in subparagraph (A) by striking ‘‘20 years’’ 
and inserting ‘‘the lesser of 30 years or the design 
life of the project to be 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’’. 
(c) 
FISCAL
SUSTAINABILITY
PLAN.—Section 
603(d)(1) (33 U.S.C. 1383(d)(1)) is further amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (C); 
(2) by inserting ‘‘and’’ at the end of subpara-
graph (D); and 
(3) by adding at the end the following: 
‘‘(E) for any portion of a treatment works 
proposed for repair, replacement, or expansion, 
and eligible for assistance under section 
603(c)(1), the recipient of such assistance will 
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develop and implement a fiscal sustainability 
plan that includes— 
‘‘(i) an inventory of critical assets 
that are a part of that portion of the treat-
ment works; 
‘‘(ii) an evaluation of the condition 
and performance of inventoried assets or 
asset groupings; 
‘‘(iii) a plan for maintaining, repair-
ing, and, as necessary, replacing that por-
tion of the treatment works and a plan for 
funding such activities; and 
‘‘(iv) a certification that the recipient 
has evaluated and will be implementing 
water and energy conservation efforts as 
part of the plan;’’. 
(d) EXPENSES OF ADMINISTERING STATE FUNDS.— 
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 1⁄5 percent per year of the current 
valuation of the fund, whichever amount is greatest, plus 
the amount of any fees collected by the State for such 
purpose regardless of the source’’. 
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(e) ADDITIONAL SUBSIDIZATION.—Section 603 (33 
U.S.C. 1383) is amended by adding at the end the fol-
lowing: 
‘‘(i) ADDITIONAL SUBSIDIZATION.— 
‘‘(1) IN
GENERAL.—In any case in which a 
State provides assistance to a municipality or inter-
municipal, interstate, or State agency under sub-
section (d), the State may provide additional sub-
sidization, including forgiveness of principal and 
negative interest loans— 
‘‘(A) to benefit a municipality that— 
‘‘(i) meets the State’s affordability 
criteria established under paragraph (2); 
or 
‘‘(ii) does not meet the State’s afford-
ability criteria if the recipient— 
‘‘(I) seeks additional subsidiza-
tion to benefit individual ratepayers in 
the residential user rate class; 
‘‘(II) demonstrates to the State 
that such ratepayers will experience a 
significant hardship from the increase 
in rates necessary to finance the 
project or activity for which assistance 
is sought; and 
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‘‘(III) ensures, as part of an as-
sistance agreement between the State 
and the recipient, that the additional 
subsidization 
provided 
under 
this 
paragraph is directed through a user 
charge rate system (or other appro-
priate method) to such ratepayers; or 
‘‘(B) to implement an innovative or alter-
native process, material, technique, or tech-
nology (including low-impact technologies, non-
structural protection of surface waters, a new 
or improved method of waste treatment, and 
nutrient pollutant trading) that may result in 
greater environmental benefits, or equivalent 
environmental benefits at reduced cost, when 
compared to a standard process, material, tech-
nique, or technology. 
‘‘(2) AFFORDABILITY CRITERIA.— 
‘‘(A) ESTABLISHMENT.—On or before Sep-
tember 30, 2013, and after providing notice 
and an opportunity for public comment, a State 
shall establish affordability criteria to assist in 
identifying municipalities that would experience 
a significant hardship raising the revenue nec-
essary to finance a project or activity eligible 
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for assistance under section 603(c)(1) if addi-
tional subsidization is not provided. Such cri-
teria shall be based on income data, population 
trends, and other data determined relevant by 
the State. 
‘‘(B) EXISTING CRITERIA.—If a State has 
previously established, after providing notice 
and an opportunity for public comment, afford-
ability criteria that meet the requirements of 
subparagraph (A), the State may use the cri-
teria for the purposes of this subsection. For 
purposes of this Act, any such criteria shall be 
treated as affordability criteria established 
under this paragraph. 
‘‘(3) PRIORITY.—A State may give priority to a 
recipient for a project or activity eligible for funding 
under section 603(c)(1) if the recipient meets the 
State’s affordability criteria. 
‘‘(4) LIMITATION.—The total amount of addi-
tional subsidization provided under this subsection 
by a State may not exceed 30 percent of the total 
amount of capitalization grants (less the amounts 
required to be allocated in accordance with section 
607) received by the State under this title in fiscal 
years beginning after September 30, 2012.’’. 
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(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. 205. 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 from a 
State water pollution control fund for providing assistance 
for high priority projects in accordance with the require-
ments 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 
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grant or a loan under which the State forgives repayment 
of 100 percent of the principal amount of the loan. 
‘‘(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); 
‘‘(B) incorporate nonstructural or decen-
tralized treatment practices; or 
‘‘(C) incorporate measures to reduce the 
energy consumption needs for publicly owned 
treatment works, including the implementation 
of energy efficient or renewable generation tech-
nologies. 
‘‘(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 
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provided by the grant recipient from sources other than 
capitalization 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.’’. 
(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—ADDITIONAL GRANT 
PROGRAMS 
SEC. 301. 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) 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). 
(4) WATER PROTECTION AND REINVESTMENT 
TRUST FUND.—The term ‘‘Water Protection and Re-
investment Trust Fund’’ means the trust fund es-
tablished by section 9512 of the Internal Revenue 
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Code of 1986, as added by section 101(a) of this 
Act. 
SEC. 302. TECHNICAL ASSISTANCE. 
Section 104(b) of the Federal Water Pollution Con-
trol Act (33 U.S.C. 1254(b)) 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) make grants to nonprofit organizations— 
‘‘(A) to provide technical assistance to 
rural and small municipalities and tribal gov-
ernments for the purpose of assisting, in con-
sultation with the State in which the assistance 
is provided, such municipalities and tribal gov-
ernments in the planning, developing, and ac-
quisition of financing for eligible projects de-
scribed in section 603(c); 
‘‘(B) to provide technical assistance and 
training for rural, small, and tribal publicly 
owned treatment works and decentralized 
wastewater treatment systems to enable such 
treatment works and systems to protect water 
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quality and achieve and maintain compliance 
with the requirements of this Act; and 
‘‘(C) to disseminate information to rural, 
small, and tribal municipalities and municipali-
ties that meet the affordability criteria estab-
lished under section 603(i)(2) by the State in 
which the municipality is located with respect to 
planning, design, construction, and operation of 
publicly owned treatment works and decentral-
ized wastewater treatment systems.’’. 
SEC. 303. 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-
vestment Trust Fund that are allocated for that 
purpose under section 103, 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)— 
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(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-
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 
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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 103, 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’’; 
(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 
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(C) in paragraph (3)(D) by striking ‘‘oper-
ation’’ each place it appears and inserting ‘‘de-
sign, operation,’’. 
SEC. 304. 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 103. 
(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 
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‘‘(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 
(3) by striking ‘‘paragraph (1)’’ and inserting 
‘‘the preceding sentence’’. 
SEC. 305. 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 wastewater. These technologies and methods may 
include— 
(1) reducing energy consumption in wastewater 
infrastructure; 
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(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 or other 
municipal wastewater facility; 
(5) measures to control, manage, reduce, treat, 
infiltrate, or reuse municipal stormwater; 
(6) decentralized or distributed stormwater and 
wastewater controls and treatment; 
(7) low impact development technologies and 
nonstructural approaches to treat wastewater and 
stormwater; 
(8) reducing the costs of compliance with the 
Federal Water Pollution Control Act (33 U.S.C. 
1251 et seq.), while retaining or enhancing environ-
mental 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; 
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