H. R. 3080—132 
(2) in subsection (d)— 
(A) in paragraph (1)— 
(i) in subparagraph (A), by striking ‘‘20 years’’ 
and inserting ‘‘the lesser of 30 years and the projected 
useful life (as determined by the State) of the project 
to be financed with the proceeds of the loan’’; 
(ii) in subparagraph (B), by striking ‘‘not later 
than 20 years after project completion’’ and inserting 
‘‘upon the expiration of the term of the loan’’; 
(iii) in subparagraph (C), by striking ‘‘and’’ at the 
end; 
(iv) in subparagraph (D), by inserting ‘‘and’’ after 
the semicolon at the end; and 
(v) by adding at the end the following: 
‘‘(E) for a treatment works proposed for repair, replace-
ment, or expansion, and eligible for assistance under sub-
section (c)(1), the recipient of a loan shall— 
‘‘(i) develop and implement a fiscal sustainability 
plan that includes— 
‘‘(I) an inventory of critical assets that are 
a part of the treatment works; 
‘‘(II) an evaluation of the condition and 
performance 
of 
inventoried 
assets 
or 
asset 
groupings; 
‘‘(III) a certification that the recipient has 
evaluated and will be implementing water and 
energy conservation efforts as part of the plan; 
and 
‘‘(IV) a plan for maintaining, repairing, and, 
as necessary, replacing the treatment works and 
a plan for funding such activities; or 
‘‘(ii) certify that the recipient has developed and 
implemented a plan that meets the requirements under 
clause (i);’’; and 
(B) in paragraph (7), by inserting ‘‘, $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’’ before the period at the end; and 
(3) by adding at the end the following: 
‘‘(i) ADDITIONAL SUBSIDIZATION.— 
‘‘(1) IN GENERAL.—In any case in which a State provides 
assistance to a municipality or intermunicipal, interstate, or 
State agency under subsection (d), the State may provide addi-
tional subsidization, including forgiveness of principal and 
negative interest loans— 
‘‘(A) to benefit a municipality that— 
‘‘(i) meets the affordability criteria of the State 
established under paragraph (2); or 
‘‘(ii) does not meet the affordability criteria of the 
State if the recipient— 
‘‘(I) seeks additional subsidization to benefit 
individual ratepayers in the residential user rate 
class; 
‘‘(II) demonstrates to the State that such rate-
payers will experience a significant hardship from 
the increase in rates necessary to finance the
H. R. 3080—133 
project or activity for which assistance is sought; 
and 
‘‘(III) ensures, as part of an assistance agree-
ment between the State and the recipient, that 
the additional subsidization provided under this 
paragraph is directed through a user charge rate 
system (or other appropriate method) to such rate-
payers; or 
‘‘(B) to implement a process, material, technique, or 
technology— 
‘‘(i) to address water-efficiency goals; 
‘‘(ii) to address energy-efficiency goals; 
‘‘(iii) to mitigate stormwater runoff; or 
‘‘(iv) to encourage sustainable project planning, 
design, and construction. 
‘‘(2) AFFORDABILITY CRITERIA.— 
‘‘(A) ESTABLISHMENT.— 
‘‘(i) IN GENERAL.—Not later than September 30, 
2015, 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 necessary to finance a project or activity 
eligible for assistance under subsection (c)(1) if addi-
tional subsidization is not provided. 
‘‘(ii) CONTENTS.—The criteria under clause (i) shall 
be based on income and unemployment data, popu-
lation trends, and other data determined relevant by 
the State, including whether the project or activity 
is to be carried out in an economically distressed area, 
as described in section 301 of the Public Works and 
Economic Development Act of 1965 (42 U.S.C. 3161). 
‘‘(B) EXISTING
CRITERIA.—If a State has previously 
established, after providing notice and an opportunity for 
public comment, affordability criteria that meet the require-
ments of subparagraph (A)— 
‘‘(i) the State may use the criteria for the purposes 
of this subsection; and 
‘‘(ii) those criteria shall be treated as affordability 
criteria established under this paragraph. 
‘‘(C) INFORMATION
TO
ASSIST
STATES.—The Adminis-
trator may publish information to assist States in estab-
lishing affordability criteria under subparagraph (A). 
‘‘(3) LIMITATIONS.— 
‘‘(A) IN GENERAL.—A State may provide additional sub-
sidization in a fiscal year under this subsection only if 
the total amount appropriated for making capitalization 
grants to all States under this title for the fiscal year 
exceeds $1,000,000,000. 
‘‘(B) ADDITIONAL LIMITATION.— 
‘‘(i) GENERAL RULE.—Subject to clause (ii), a State 
may use not more than 30 percent of the total amount 
received by the State in capitalization grants under 
this title for a fiscal year for providing additional sub-
sidization under this subsection. 
‘‘(ii) EXCEPTION.—If, in a fiscal year, the amount 
appropriated for making capitalization grants to all
H. R. 3080—134 
States under this title exceeds $1,000,000,000 by a 
percentage that is less than 30 percent, clause (i) shall 
be applied by substituting that percentage for 30 per-
cent. 
‘‘(C) APPLICABILITY.—The authority of a State to pro-
vide additional subsidization under this subsection shall 
apply to amounts received by the State in capitalization 
grants under this title for fiscal years beginning after Sep-
tember 30, 2014. 
‘‘(D) CONSIDERATION.—If the State provides additional 
subsidization to a municipality or intermunicipal, inter-
state, or State agency under this subsection that meets 
the criteria under paragraph (1)(A), the State shall take 
the criteria set forth in section 602(b)(5) into consider-
ation.’’. 
SEC. 5004. REQUIREMENTS. 
Title VI of the Federal Water Pollution Control Act (33 U.S.C. 
1381 et seq.) is amended by adding at the end the following: 
‘‘SEC. 608. REQUIREMENTS. 
‘‘(a) IN GENERAL.—Funds made available from a State water 
pollution control revolving fund established under this title may 
not be used for a project for the construction, alteration, mainte-
nance, or repair of treatment works unless all of the iron and 
steel products used in the project are produced in the United 
States. 
‘‘(b) DEFINITION OF IRON AND STEEL PRODUCTS.—In this section, 
the term ‘iron and steel products’ means the following products 
made primarily of iron or steel: lined or unlined pipes and fittings, 
manhole covers and other municipal castings, hydrants, tanks, 
flanges, pipe clamps and restraints, valves, structural steel, 
reinforced precast concrete, construction materials. 
‘‘(c) APPLICATION.—Subsection (a) shall not apply in any case 
or category of cases in which the Administrator finds that— 
‘‘(1) applying subsection (a) would be inconsistent with 
the public interest; 
‘‘(2) iron and steel products are not produced in the United 
States in sufficient and reasonably available quantities and 
of a satisfactory quality; or 
‘‘(3) inclusion of iron and steel products produced in the 
United States will increase the cost of the overall project by 
more than 25 percent. 
‘‘(d) WAIVER.—If the Administrator receives a request for a 
waiver under this section, the Administrator shall make available 
to the public, on an informal basis, a copy of the request and 
information available to the Administrator concerning the request, 
and shall allow for informal public input on the request for at 
least 15 days prior to making a finding based on the request. 
The Administrator shall make the request and accompanying 
information available by electronic means, including on the official 
public Internet site of the Environmental Protection Agency. 
‘‘(e) INTERNATIONAL
AGREEMENTS.—This section shall be 
applied in a manner consistent with United States obligations under 
international agreements. 
‘‘(f) MANAGEMENT
AND OVERSIGHT.—The Administrator may 
retain up to 0.25 percent of the funds appropriated for this title 
for management and oversight of the requirements of this section.
H. R. 3080—135 
‘‘(g) EFFECTIVE DATE.—This section does not apply with respect 
to a project if a State agency approves the engineering plans and 
specifications for the project, in that agency’s capacity to approve 
such plans and specifications prior to a project requesting bids, 
prior to the date of enactment of the Water Resources Reform 
and Development Act of 2014.’’. 
SEC. 5005. REPORT ON THE ALLOTMENT OF FUNDS. 
(a) REVIEW.—The Administrator of the Environmental Protec-
tion Agency shall conduct a review of the allotment formula in 
effect on the date of enactment of this Act for allocation of funds 
authorized under title VI of the Federal Water Pollution Control 
Act (33 U.S.C. 1381 et seq.) to determine whether that formula 
adequately addresses the water quality needs of eligible States, 
territories, and Indian tribes, based on— 
(1) the most recent survey of needs developed by the 
Administrator under section 516(b) of that Act (33 U.S.C. 
1375(b)); and 
(2) any other information the Administrator considers 
appropriate. 
(b) REPORT.—Not later than 18 months after the date of enact-
ment of this Act, the Administrator shall submit to the Committee 
on Environment and Public Works of the Senate and the Committee 
on Transportation and Infrastructure of the House of Representa-
tives and make publicly available a report on the results of the 
review under subsection (a), including any recommendations for 
changing the allotment formula. 
SEC. 5006. EFFECTIVE DATE. 
This subtitle, including any amendments made by the subtitle, 
shall take effect on October 1, 2014. 
Subtitle B—General Provisions 
SEC. 5011. WATERSHED PILOT PROJECTS. 
Section 122 of the Federal Water Pollution Control Act (33 
U.S.C. 1274) is amended— 
(1) in the section heading, by striking ‘‘WET WEATHER’’; 
(2) in subsection (a)— 
(A) in the matter preceding paragraph (1)— 
(i) by striking ‘‘for treatment works’’ and inserting 
‘‘to a municipality or municipal entity’’; and 
(ii) by striking ‘‘of wet weather discharge control’’; 
(B) in paragraph (2), by striking ‘‘in reducing such 
pollutants’’ and all that follows before the period at the 
end and inserting ‘‘to manage, reduce, treat, recapture, 
or reuse municipal stormwater, including techniques that 
utilize infiltration, evapotranspiration, and reuse of 
stormwater onsite’’; 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 pollution to reduce adverse impacts 
on water quality. 
‘‘(4) INTEGRATED WATER RESOURCE PLAN.—The development 
of an integrated water resource plan for the coordinated 
management and protection of surface water, ground water,