I
103D CONGRESS
1ST SESSION
H. R. 1701
To amend title XVI of the Public Health Service Act (the Safe Drinking
Water Act) to establish State revolving funds to provide for drinking
water treatment facilities, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 5, 1993
Mr. WAXMAN (for himself and Mr. DINGELL) introduced the following bill;
which was referred to the Committee on Energy and Commerce
A BILL
To amend title XVI of the Public Health Service Act (the
Safe Drinking Water Act) to establish State revolving
funds to provide for drinking water treatment facilities,
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. STATE REVOLVING FUNDS FOR SAFE DRINKING
WATER
Section 1443 of title XIV of the Public Health Serv-
ice Act (the Safe Drinking Water Act) is amended by re-
designating subsection (c) as (d) and by adding the follow-
ing new subsection after subsection (b):
‘‘(c) STATE REVOLVING FUNDS.—
‘‘(1) GENERAL AUTHORITY.—(A) The Adminis-
trator shall enter into agreements with States having
primary enforcement responsibility for public water
systems to make capitalization grants to the States
under this subsection, further the health protection
objectives of this Act. The grants shall be allotted to
the States in accordance with this section and depos-
ited in drinking water treatment revolving funds
established by the State.
‘‘(B) Amounts deposited in such revolving
funds, including loan repayments and interest
earned on such amounts, shall be used only for pro-
viding loans or other financial assistance of any kind
or nature that the State deems appropriate to public
water systems operated by a governmental or inter-
governmental agency, a non-profit organization, an
Indian tribe, or any combination thereof. Such fi-
nancial assistance may be used only for capital ex-
penditures incurred by any such system of a type or
category which the Administrator has determined
will facilitate compliance with national primary
drinking water regulations applicable to such system
under section 1411.
‘‘(C) Each such revolving fund shall be estab-
lished, maintained, and credited with repayments
and interest. The fund balance shall be available in
perpetuity for providing financial assistance under
this section. Only interest collected in such fund
shall be used by the States for grants to such sys-
tems for such expenditures. To the extent amounts
in each such fund are not required for current obli-
gation or expenditure such amounts shall be invested
in interest bearing obligations of the State or of the
United States.
‘‘(2) SPECIFIC REQUIREMENTS.—The Adminis-
trator shall enter into an agreement under this sec-
tion with a State only after the State has established
to the satisfaction of the Administrator that—
‘‘(A) the State will deposit all capitaliza-
tion grants received from the Administrator
under this subsection, together with all repay-
ments and interest on such grants, in a drink-
ing water treatment revolving fund established
by the State in accordance with this subsection;
‘‘(B) the State will deposit in the fund
from State moneys an amount equal to at least
20 percent of the total amount of all such cap-
italization grants on or before the date on
which each grant payment is made to the State;
and
‘‘(C) no loan or other financial assistance
will be provided to a public water system from
such revolving fund for any capital expenditures
if the Administrator has determined, pursuant
to appropriate criteria, that such expenses could
be avoided or significantly reduced by consolida-
tion of that public water system with any other
public water system, except that in such cases
such assistance may be provided from the fund
for such consolidation.
Notwithstanding subparagraph (A), the State may
combine capitalization grants under this subsection
with another revolving fund established by the State
if the Administrator determines that the grants
under this subsection, together with loan repayments
and interest, will be used solely for the purposes
specified in paragraph (1).
‘‘(3) FUND ADMINISTRATION.—(A) Each State
may use up to 5 percent of the monies in a revolving
fund established under this subsection to cover the
reasonable costs of administration of the assistance
program under this subsection.
‘‘(B) The Administrator shall promulgate such
regulations as may be necessary to carry out the
provisions of this section, including provisions to en-
sure that each State commits and expends funds
from revolving funds established under this sub-
section in accordance with this Act and applicable
Federal and State laws and that the State uses ac-
counting, audit, and fiscal procedures that conform
to generally accepted accounting standards.
‘‘(C) Each State administering a revolving fund
and assistance program under this subsection shall
publish and submit to the Administrator a report
every 2 years on its activities under this subsection,
including the findings of the most recent audit of
the fund. The Administrator shall periodically audit
all revolving funds established under this subsection
in accordance with procedures established by the
Comptroller General.
‘‘(4) There is authorized to be appropriated to
carry 
out 
the 
purposes 
of 
this 
subsection
$599,000,000 
for 
the 
fiscal 
year 
1994 
and
$1,000,000 for each of the fiscal years 1995, 1996,
and 1997, and such sums as may be necessary
thereafter.’’.
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