I 
108TH CONGRESS 
1ST SESSION H. R. 1560
To amend the Federal Water Pollution Control Act to authorize appropria-
tions for State water pollution control revolving funds, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 2, 2003
Mr. DUNCAN (for himself and Mr. YOUNG of Alaska) introduced the following 
bill; which was referred to the Committee on Transportation and Infra-
structure 
A BILL 
To amend the Federal Water Pollution Control Act to au-
thorize appropriations for State water pollution control 
revolving funds, 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) IN GENERAL.—This Act may be cited as the 
‘‘Water Quality Financing Act of 2003’’. 
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents. 
Sec. 2. Amendment of Federal Water Pollution Control Act. 
TITLE I—TECHNICAL AND MANAGEMENT ASSISTANCE 
Sec. 101. Technical assistance.
Sec. 102. State management assistance. 
Sec. 103. Watershed pilot projects. 
TITLE II—CONSTRUCTION OF TREATMENT WORKS 
Sec. 201. Sewage collection systems. 
Sec. 202. Treatment works defined. 
Sec. 203. Policy on cost effectiveness. 
Sec. 204. Pilot program for alternative water source projects. 
Sec. 205. Sewer overflow control grants. 
TITLE III—STATE WATER POLLUTION CONTROL REVOLVING 
FUNDS 
Sec. 301. General authority for capitalization grants. 
Sec. 302. Capitalization grant agreements. 
Sec. 303. Water pollution control revolving loan funds. 
Sec. 304. Allotment of funds. 
Sec. 305. Intended use plan. 
Sec. 306. Federal oversight. 
Sec. 307. Technical assistance. 
Sec. 308. Authorization of appropriations. 
TITLE IV—GENERAL PROVISIONS 
Sec. 401. Definition of treatment works. 
Sec. 402. Funding for Indian programs.
SEC. 2. AMENDMENT OF FEDERAL WATER POLLUTION CON-
TROL ACT. 
Except as otherwise expressly provided, whenever in 
this Act 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.).
TITLE I—TECHNICAL AND 
MANAGEMENT ASSISTANCE 
SEC. 101. TECHNICAL ASSISTANCE. 
(a) TECHNICAL ASSISTANCE FOR RURAL AND SMALL 
TREATMENT
WORKS.—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 for the purpose 
of assisting, in consultation with the State in 
which the assistance is provided, such munici-
palities in the planning, developing, and acquisi-
tion of financing for wastewater infrastructure 
assistance; 
‘‘(B) to capitalize revolving loan funds for 
the purpose of providing loans, in consultation 
with the State in which the assistance is pro-
vided, to rural and small municipalities for 
predevelopment costs associated with waste-
water infrastructure projects or short-term
costs incurred for equipment replacement that 
is not part of regular operation and mainte-
nance activities for existing wastewater systems, 
subject to the conditions that any loan from the 
fund will be made at a below market interest 
rate, for a term not to exceed 10 years, and in 
an amount not to exceed $100,000 and that all 
loan repayments will be credited to the fund; 
‘‘(C) to provide technical assistance and 
training for rural and small 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 re-
quirements of this Act; and 
‘‘(D) to disseminate information to rural 
and small municipalities and municipalities that 
meet the affordability criteria established under 
section 603(i)(2) by the State in which the mu-
nicipality is located with respect to planning, 
design, construction, and operation of publicly 
owned treatment works and decentralized 
wastewater treatment systems.’’. 
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 
104(u) (33 U.S.C. 1254(u)) is amended—
(1) by striking ‘‘and (6)’’ and inserting ‘‘(6)’’; 
and 
(2) by inserting before the period at the end the 
following: ‘‘; and (7) not to exceed $75,000,000 for 
each of fiscal years 2004 through 2008 for carrying 
out subsections (b)(3) and (b)(8), except that not 
less than 20 percent of the amounts appropriated 
pursuant to this paragraph in a fiscal year shall be 
used for carrying out subsection (b)(8) and not more 
than one-third of the amount used in a fiscal year 
for carrying out subsection (b)(8) may be used to 
carry out subparagraph (B) of that subsection’’. 
(c) COMPETITIVE
PROCEDURES
FOR
AWARDING 
GRANTS.—Section 104 (33 U.S.C. 1254(b)) is amended 
by adding at the end the following: 
‘‘(w) COMPETITIVE PROCEDURES
FOR AWARDING 
GRANTS.—The Administrator shall establish procedures 
that, to the maximum extent practicable, promote com-
petition and openness in the award of grants to nonprofit 
private agencies, institutions, and organizations under this 
section.’’. 
SEC. 102. STATE MANAGEMENT ASSISTANCE. 
Section 106(a) (33 U.S.C. 1256(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph 
(1);
(2) by striking the semicolon at the end of 
paragraph (2) and inserting ‘‘; and’’; and 
(3) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) such sums as may be necessary for each 
of 
fiscal 
years 
1991 
through 
2003, 
and 
$250,000,000 for each of fiscal years 2004 through 
2008;’’. 
SEC. 103. WATERSHED PILOT PROJECTS. 
(a) SECTION REDESIGNATION.—The second section 
121 (33 U.S.C. 1274; relating to watershed pilot projects) 
is redesignated as section 122. 
(b) PILOT PROJECTS.—Section 122 (as so redesig-
nated) is amended—
(1) in the section heading by striking ‘‘WET 
WEATHER’’; and 
(2) in subsection (a)—
(A) in the matter preceding paragraph (1) 
by striking ‘‘wet weather discharge’’; 
(B) in paragraph (2) by inserting ‘‘, in-
cluding low-impact development technologies’’ 
before the period at the end; and 
(C) by adding at the end the following: 
‘‘(3) WATERSHED PARTNERSHIPS.—Efforts of 
municipalities and property owners to demonstrate
cooperative ways to address nonpoint sources of pol-
lution to reduce adverse impacts on water quality.’’. 
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 
122(c)(1) (as so redesignated) is amended by striking ‘‘for 
fiscal year 2004’’ and inserting ‘‘for each of fiscal years 
2004 through 2008’’. 
(d) REPORT TO CONGRESS.—Section 122(d) (as so 
redesignated) is amended by striking ‘‘5 years’’ and insert-
ing ‘‘7 years’’. 
TITLE II—CONSTRUCTION OF 
TREATMENT WORKS 
SEC. 201. SEWAGE COLLECTION SYSTEMS. 
Section 211 (33 U.S.C. 1291) is amended—
(1) by striking the section designation and all 
that follows through ‘‘(a) No’’ and inserting the fol-
lowing: 
‘‘SEC. 211. SEWAGE COLLECTION SYSTEMS. 
‘‘(a) IN GENERAL.—No’’; 
(2) in subsection (b) by inserting ‘‘POPULATION 
DENSITY.—’’ after ‘‘(b)’’; and 
(3) by striking subsection (c) and inserting the 
following: 
‘‘(c) EXCEPTIONS.—
‘‘(1) REPLACEMENT AND MAJOR REHABILITA-
TION.—Notwithstanding the requirement of sub-
section (a)(1) concerning the existence of a collection 
system as a condition of eligibility, a project for re-
placement or major rehabilitation of a collection sys-
tem existing on January 1, 2003, shall be eligible for 
a grant under this title if the project otherwise 
meets the requirements of subsection (a)(1) and 
meets the requirement of paragraph (3). 
‘‘(2) NEW SYSTEMS.—Notwithstanding the re-
quirement of subsection (a)(2) concerning the exist-
ence of a community as a condition of eligibility, a 
project for a new collection system to serve a com-
munity existing on January 1, 2003, shall be eligible 
for a grant under this title if the project otherwise 
meets the requirements of subsection (a)(2) and 
meets the requirement of paragraph (3). 
‘‘(3) REQUIREMENT.—A project meets the re-
quirement of this paragraph if the purpose of the 
project is to accomplish the objectives, goals, and 
policies of this Act by addressing an adverse envi-
ronmental condition existing on the date of enact-
ment of this paragraph.’’. 
SEC. 202. TREATMENT WORKS DEFINED. 
Section 212(2)(A) (33 U.S.C. 1292(2)(A)) is amend-
ed—
(1) by striking ‘‘any works, including site’’;
(2) by striking ‘‘is used for ultimate’’ and in-
serting ‘‘will be used for ultimate’’; and 
(3) by inserting before the period at the end the 
following: ‘‘and acquisition of other lands, and inter-
ests in lands, which are necessary for construction’’. 
SEC. 203. POLICY ON COST EFFECTIVENESS. 
Section 218(a) (33 U.S.C. 1298(a)) is amended by 
striking ‘‘combination of devices and systems’’ and all that 
follows through ‘‘from such treatment;’’ and inserting 
‘‘treatment works;’’. 
SEC. 204. PILOT PROGRAM FOR ALTERNATIVE WATER 
SOURCE PROJECTS. 
Section 220(j) (33 U.S.C. 1300(j)) is amended by 
striking ‘‘2004’’ and inserting ‘‘2008’’. 
SEC. 205. SEWER OVERFLOW CONTROL GRANTS. 
(a) IN GENERAL.—Section 221(c) (33 U.S.C. 1301) 
is amended to read as follows: 
‘‘(c) FINANCIALLY DISTRESSED COMMUNITY DE-
FINED.—In subsection (b), the term ‘financially distressed 
community’ means a community that meets affordability 
criteria established by the State in which the community 
is located under section 603(i)(2).’’. 
(b) 
ADMINISTRATIVE
REQUIREMENTS.—Section 
221(e) (33 U.S.C. 1301(e)) is amended to read as follows:
‘‘(e) ADMINISTRATIVE REQUIREMENTS.—A project 
that receives assistance under this section shall be carried 
out subject to the same requirements as a project that 
receives assistance from a State water pollution control 
revolving fund under title VI, except to the extent that 
the Governor of the State in which the project is located 
determines that a requirement of title VI is inconsistent 
with the purposes of this section.’’. 
(c) AUTHORIZATION OF APPROPRIATIONS.—The first 
sentence of section 221(f) (33 U.S.C. 1301(f)) is amended 
by inserting before the period at the end the following: 
‘‘such sums as may be necessary for fiscal year 2004, and 
$250,000,000 for each of fiscal years 2005 through 
2008’’. 
(d) ALLOCATION OF FUNDS.—Section 221(g) (33 
U.S.C. 1301(g)) is amended to read as follows: 
‘‘(g) ALLOCATION OF FUNDS.—
‘‘(1) FISCAL YEAR 2004.—Subject to subsection 
(h), the Administrator shall use the amounts appro-
priated to carry out this section for fiscal year 2004 
for making grants to municipalities and municipal 
entities under subsection (a)(2), in accordance with 
the criteria set forth in subsection (b). 
‘‘(2) FISCAL YEAR 2005 AND THEREAFTER.—
Subject to subsection (h), the Administrator shall
use the amounts appropriated to carry out this sec-
tion for fiscal year 2005 and each fiscal year there-
after for making grants to States under subsection 
(a)(1), in accordance with a formula to be estab-
lished by the Administrator, after providing notice 
and an opportunity for public comment, that allo-
cates to each State a proportional share of such 
amounts based on the total needs of the State for 
municipal combined sewer overflow controls and san-
itary sewer overflow controls identified in the most 
recent 
survey 
conducted 
pursuant 
to 
section 
516(b)(1).’’. 
(e) REPORTS.—The first sentence of section 221(i) 
(33 U.S.C. 1301(i)) is amended by striking ‘‘2003’’ and 
inserting ‘‘2007’’. 
TITLE III—STATE WATER POLLU-
TION CONTROL REVOLVING 
FUNDS 
SEC. 301. 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).’’. 
SEC. 302. CAPITALIZATION GRANT AGREEMENTS. 
(a) REPORTING INFRASTRUCTURE ASSETS.—Section 
602(b)(9) (33 U.S.C. 1382(b)(9)) is amended by striking 
‘‘standards’’ and inserting ‘‘standards, including stand-
ards relating to the reporting of infrastructure assets’’. 
(b) ADDITIONAL 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 establish, maintain, invest, 
and credit the fund with repayments, such that the 
fund balance will be available in perpetuity for pro-
viding financial assistance in accordance with this 
title; 
‘‘(12) any fees charged by the State to recipi-
ents of assistance will be used for the sole purpose 
of financing the cost of administering the fund; 
‘‘(13) beginning in fiscal year 2005, the State 
will include as a condition of providing assistance to 
a municipality or intermunicipal, interstate, or State
agency that the recipient of such assistance certify, 
with supporting documentation, that the recipient—
‘‘(A) has studied and evaluated the cost 
and effectiveness of innovative and alternative 
processes, materials, and techniques for car-
rying out the proposed project or activity for 
which assistance is sought under this title, and 
has selected, to the extent practicable, a project 
or activity that more efficiently uses energy and 
natural and financial resources or provides 
greater environmental benefits; and 
‘‘(B) has analyzed the cost and effective-
ness of alternative management and financing 
approaches (including rate structures, issuance 
of bonds, restructuring, regional alternatives, 
consolidation, and public-private partnerships) 
for carrying out a project or activity for which 
assistance is sought under this title, taking into 
account the cost of operating and maintaining 
the project or activity over its life, as well as 
the cost of constructing the project or activity; 
‘‘(14) the State will use at least 15 percent of 
the amount of each capitalization grant received by 
the State under this title after September 30, 2004, 
to provide assistance to municipalities of fewer than
20,000 individuals that meet the affordability cri-
teria established by the State under section 
603(i)(2) for activities included on the State’s pri-
ority list established under section 603(g), to the ex-
tent that there are sufficient applications for such 
assistance; and 
‘‘(15) treatment works eligible under section 
603(c)(1) which will be constructed in whole or in 
part with funds directly made available by capitaliza-
tion grants under this title and section 205(m) will 
meet the requirements of, or otherwise be treated 
(as determined by the Governor of the State) under 
sections 204(b)(1), 211, 218, and 511(c)(1) in the 
same manner as treatment works constructed with 
assistance under title II of this Act.’’. 
SEC. 303. 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—