I 
111TH CONGRESS 
1ST SESSION H. R. 3202 
To establish a Water Protection and Reinvestment Fund to support invest-
ments in clean water and drinking water infrastructure, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 14, 2009 
Mr. BLUMENAUER (for himself, Mr. LATOURETTE, Mr. SIMPSON, Mr. DICKS, 
and Mr. PETRI) introduced the following bill; which was referred to the 
Committee on Transportation and Infrastructure, and in addition to the 
Committees on Energy and Commerce, Ways and Means, and Science 
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 committee concerned 
A BILL 
To establish a Water Protection and Reinvestment Fund 
to support investments in clean water and drinking 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 2009’’. 
(b) TABLE OF CONTENTS.— 
Sec. 1. Short title; table of contents. 
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TITLE I—REVENUE 
Sec. 101. Establishment and funding of Water Protection and Reinvestment 
Trust Fund. 
Sec. 102. Allocation of funds. 
TITLE II—STATE WATER POLLUTION CONTROL REVOLVING 
FUNDS 
Sec. 201. Amendment of Federal Water Pollution Control Act. 
Sec. 202. Technical assistance. 
Sec. 203. General authority for capitalization grants. 
Sec. 204. Capitalization grant agreements. 
Sec. 205. Water pollution control revolving loan funds. 
Sec. 206. High priority project grants and principal forgiveness. 
TITLE III—SAFE DRINKING WATER ACT FUNDING 
Sec. 301. Use of State revolving loan funds. 
Sec. 302. Priority system requirements. 
Sec. 303. Affordability. 
Sec. 304. Needs survey. 
Sec. 305. Negotiation of contracts. 
Sec. 306. Drinking water technical assistance for communities. 
TITLE IV—ADDITIONAL GRANT PROGRAMS 
Sec. 401. Definitions. 
Sec. 402. Treatment works and community water system security grants. 
Sec. 403. Climate Change Mitigation and Adaptation Grants. 
Sec. 404. Workforce Development Grants. 
Sec. 405. Sewer overflow control grants. 
Sec. 406. Research, Development, and Technology Demonstration Program. 
Sec. 407. Regional water research centers. 
Sec. 408. Cost of service study. 
Sec. 409. Drug take-back grants. 
Sec. 410. State revolving fund review process. 
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. 9511. 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, 2016, under the fol-
lowing provisions— 
‘‘(1) section 59B (relating to clean water res-
toration tax), and 
‘‘(2) section 4171 (relating to taxes relating to 
water). 
‘‘(c) EXPENDITURES.—Amounts in the Water Pro-
tection and Reinvestment Trust Fund shall be available, 
as provided in appropriation Acts, only for purposes of in-
vestments in clean water and drinking water infrastruc-
ture in accordance with the Water Protection and Rein-
vestment Act of 2009.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for subchapter A of chapter 98 of such Code 
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is amended by adding at the end the following new 
item: 
‘‘Sec. 9511. Water Protection and Reinvestment Trust Fund.’’. 
(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 4 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 
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manufacturer, producer, or importer thereof a tax equal 
to 0.5 percent of the price for which so sold. 
‘‘(d) TERMINATION.—The taxes imposed by this sec-
tion shall not apply to any production, manufacture, or 
importation after December 31, 2015. 
‘‘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, 
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‘‘(ii) the resulting concentrated prod-
uct is shipped and then the water replaced, 
and 
‘‘(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-
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arations, hair preparations, face creams, lotions (in-
cluding sunscreens), and other cosmetic prepara-
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) CORPORATE INCOME TAX FUNDING WATER PRO-
TECTION AND REINVESTMENT TRUST FUND.— 
(1) IN GENERAL.—Subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by 
inserting at the end the following new part: 
‘‘PART VIII—CLEAN WATER RESTORATION TAX 
‘‘SEC. 59B. CLEAN WATER RESTORATION TAX. 
‘‘(a) IMPOSITION OF TAX.—In the case of a corpora-
tion, there is hereby imposed (in addition to any other tax 
imposed by this subtitle) a tax equal to 0.15 percent of 
the excess of— 
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‘‘(1) the modified alternative minimum taxable 
income of such corporation for the taxable year, over 
‘‘(2) $4,000,000. 
‘‘(b) MODIFIED ALTERNATIVE MINIMUM TAXABLE 
INCOME.—For purposes of this section, the term ‘modified 
alternative minimum taxable income’ has the meaning 
given such term by section 59A(b). 
‘‘(c) APPLICABLE RULES.—For purposes of this sec-
tion, rules similar to the rules of subsections (c) and (d) 
of section 59A shall apply. 
‘‘(d) APPLICATION OF TAX.—Subsection (a) shall not 
apply to a taxable year beginning after December 31, 
2015.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 26(b)(2) of such Code is 
amended by striking ‘‘and’’ at the end of sub-
paragraph (W), by striking the period at the 
end of subparagraph (X) and inserting ‘‘, and’’, 
and by inserting after subparagraph (Y) the fol-
lowing new subparagraph: 
‘‘(Y) section 59B (relating to clean water 
restoration tax).’’. 
(B) Section 164(a) of such Code is amend-
ed by inserting after paragraph (5) the fol-
lowing new paragraph: 
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‘‘(6) The clean water restoration tax imposed 
by section 59B.’’. 
(C) Section 275(a)(6) of such Code is 
amended by inserting ‘‘or 59B’’ after ‘‘section 
59A’’. 
(D) Section 882(a)(1) of such Code is 
amended by inserting ‘‘59B,’’ after ‘‘59A,’’. 
(E) Section 1561(a) of such Code is 
amended by striking ‘‘and’’ at the end of para-
graph (3), by striking the period at the end of 
paragraph (4) and inserting ‘‘, and’’, and by in-
serting after paragraph (4) the following new 
subparagraph: 
‘‘(5) one $4,000,000 amount for purposes of 
computing the tax imposed by section 59B.’’. 
(F) Section 6425(g)(1)(A) of such Code is 
amended by striking ‘‘plus’’ at the end of clause 
(iii), by striking ‘‘over’’ at the end of clause (iv) 
and inserting ‘‘plus’’, and by inserting after 
clause (iv) the following new clause: 
‘‘(iv) the tax imposed by section 59B, 
over’’. 
(G) Section 6655(c)(1)(A) of such Code is 
amended by striking ‘‘plus’’ at the end of clause 
(ii), by striking ‘‘over’’ at the end of clause (iii) 
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and inserting ‘‘plus’’, and by inserting after 
clause (iii) the following new clause: 
‘‘(iv) the tax imposed by section 59B, 
over’’. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to taxable years beginning after the date 
of the enactment 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. 
SEC. 102. ALLOCATION OF FUNDS. 
(a) IN GENERAL.—The Administrator of the Envi-
ronmental Protection Agency shall allocate the amount of 
funds appropriated out of the Water Protection and Rein-
vestment Fund established by section 9511 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) 48 percent for making capitalization 
grants under section 601 of the Federal Water 
Pollution Control Act (33 U.S.C. 1381; relating 
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to capitalization grants for State water pollu-
tion control revolving funds); 
(B) 1.5 percent for making grants under 
section 106 of such Act (33 U.S.C. 1256; relat-
ing to grants for pollution control programs); 
(C) 2.5 percent for making grants under 
section 319 of such Act (33 U.S.C. 1329; relat-
ing to nonpoint source management programs); 
and 
(D) 0.5 percent for making grants under 
section 104(b)(8) of such Act (as added by sec-
tion 202 of this Act; relating to technical assist-
ance to rural and small municipalities and trib-
al governments). 
(2) SAFE DRINKING WATER FUNDING.—Of such 
amount, the Administrator shall make available— 
(A) 35 percent for making capitalization 
grants under section 1452 of the Safe Drinking 
Water Act (42 U.S.C. 300j–12; relating to cap-
italization grants for State drinking water 
treatment revolving loan funds); and 
(B) 0.5 percent for providing technical as-
sistance under section 1442(e) of the Safe 
Drinking Water Act (42 U.S.C. 300j–1(e); re-
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lating to technical assistance for small public 
water systems). 
(3) ADDITIONAL GRANT PROGRAMS.—Of such 
total amount, the Administrator shall make avail-
able— 
(A) 0.5 percent for making grants under 
section 402 (relating to treatment works and 
community systems security); 
(B) 1 percent for making grants under 
section 403 (relating to climate change and ad-
aptation grants); 
(C) 0.05 percent for making grants under 
section 109 of the Federal Water Pollution 
Control Act (33 U.S.C. 1259) in accordance 
with section 404(a) (relating to training grants 
and contracts); 
(D) 0.05 percent for awarding scholarships 
under section 111 of the Federal Water Pollu-
tion Control Act (33 U.S.C. 1261) in accord-
ance with section 404(c) (relating to scholar-
ships for the studies on the operation and main-
tenance of treatment works); 
(E) 0.1 percent for establishing training 
programs and making grants under section 
1442(c) of the Safe Drinking Water Act (42 
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U.S.C. 300j–1(c)) in accordance with section 
404(d) (relating to training for personnel who 
manage or operate public water systems); 
(F) 5 percent for making grants under sec-
tion 221 of the Federal Water Pollution Control 
Act (33 U.S.C. 1301; relating to sewer overflow 
control grants); 
(G) 5 percent for carrying out sections 
406, 407, and 408 (relating to the national 
water infrastructure research, development, and 
demonstration program, regional water research 
centers, and a cost of service study); and 
(H) 0.3 percent for making grants under 
section 410(a) (relating to drug take back 
grants). 
(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. 
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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. TECHNICAL ASSISTANCE. 
Section 104(b) (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-
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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 
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. 203. 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. 204. 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: 
‘‘(25) 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. 205. 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 publically 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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