A bill to amend the Federal Water Pollution Control Act to authorize appropriations for States water pollution control revolving funds, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Clean Water Infrastructure Financing 
Act of 2005''.

SEC. 2. GENERAL AUTHORITY FOR CAPITALIZATION GRANTS.

    Section 601(a) of the Federal Water Pollution Control Act (33 
U.S.C. 1381(a)) is amended by striking ``(1) for construction'' and all 
that follows through the period at the end and inserting ``to 
accomplish the purposes of this Act.''.

SEC. 3. CAPITALIZATION GRANTS AGREEMENTS.

    (a) Requirements for Construction of Treatment Works.--Section 
602(b)(6) of the Federal Water Pollution Control Act (33 U.S.C. 
1382(b)(6)) is amended--
            (1) by striking ``before fiscal year 1995''; and
            (2) by striking ``201(b)'' and all that follows through 
        ``218,'' and inserting ``211,''.
    (b) Guidance for Small Systems.--Section 602 of the Federal Water 
Pollution Control Act (33 U.S.C. 1382) is amended by adding at the end 
the following:
    ``(c) Guidance for Small Systems.--
            ``(1) Simplified procedures.--Not later than 1 year after 
        the date of enactment of this subsection, the Administrator 
        shall assist the States in establishing simplified procedures 
        for small systems to obtain assistance under this title.
            ``(2) Publication of manual.--Not later than 1 year after 
        the date of enactment of this subsection, after providing 
        notice and opportunity for public comment, the Administrator 
        shall publish--
                    ``(A) a manual to assist small systems in obtaining 
                assistance under this title; and
                    ``(B) in the Federal Register, notice of the 
                availability of the manual.
            ``(3) Definition of small system.--In this title, the term 
        `small system' means a system for which a municipality or 
        intermunicipal, interstate, or State agency seeks assistance 
        under this title and that serves a population of 20,000 or 
        fewer inhabitants.''.

SEC. 4. WATER POLLUTION CONTROL REVOLVING FUNDS.

    (a) Activities Eligible for Assistance.--Section 603 of the Federal 
Water Pollution Control Act (33 U.S.C. 1383) is amended by striking 
subsection (c) and inserting the following:
    ``(c) Activities Eligible for Assistance.--
            ``(1) In general.--The water pollution control revolving 
        fund of a State shall be used only for providing financial 
        assistance for activities that have, as a principal benefit, 
        the improvement or protection of the water quality of navigable 
        waters to a municipality, intermunicipal, interstate, or State 
        agency, or other person, including activities such as--
                    ``(A) construction of a publicly owned treatment 
                works;
                    ``(B) implementation of lake protection programs 
                and projects under section 314;
                    ``(C) implementation of a nonpoint source 
                management program under section 319;
                    ``(D) implementation of an estuary conservation and 
                management plan under section 320;
                    ``(E) restoration or protection of publicly or 
                privately owned riparian areas, including acquisition 
                of property rights;
                    ``(F) implementation of measures to improve the 
                efficiency of public water use;
                    ``(G) development and implementation of plans by a 
                public recipient to prevent water pollution; and
                    ``(H) acquisition of land necessary to meet any 
                mitigation requirements related to construction of a 
                publicly owned treatment works.
            ``(2) Fund amounts.--
                    ``(A) Repayments.--The water pollution control 
                revolving fund of a State shall be established, 
                maintained, and credited with repayments.
                    ``(B) Availability.--The balance in the fund shall 
                be available in perpetuity for providing financial 
                assistance described in paragraph (1).
                    ``(C) Fees.--Fees charged by a State to recipients 
                of the assistance may be deposited in the fund and may 
                be used only to pay the cost of administering this 
                title.''.
    (b) Extended Repayment Period for Financially Distressed 
Communities.--Section 603(d)(1) of the Federal Water Pollution Control 
Act (33 U.S.C. 1383(d)(1)) is amended--
            (1) in subparagraph (A), by inserting after ``20 years'' 
        the following: ``or, in the case of a financially distressed 
        community, the lesser of 40 years or the expected 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 inserting ``on the 
        expiration of the term of the loan''.
    (c) Loan Guarantees.--Section 603(d) of the Federal Water Pollution 
Control Act (33 U.S.C. 1383(d)) is amended by striking paragraph (5) 
and inserting the following:
            ``(5) to provide loan guarantees for--
                    ``(A) similar revolving funds established by 
                municipalities or intermunicipal agencies; and
                    ``(B) developing and implementing innovative 
                technologies;''.
    (d) Administrative Expenses.--Section 603(d)(7) of the Federal 
Water Pollution Control Act (33 U.S.C. 1383(d)(7)) is amended by 
inserting before the period at the end the following: ``or the greater 
of $400,000 per year or an amount equal to \1/2\ percent per year of 
the current valuation of the fund, plus the amount of any fees 
collected by the State under subsection (c)(2)(C)''.
    (e) Technical and Planning Assistance for Small Systems.--Section 
603(d) of the Federal Water Pollution Control Act (33 U.S.C. 1383(d)) 
is amended--
            (1) in paragraph (6), by striking ``and'' at the end;
            (2) in paragraph (7), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(8) to provide to small systems technical and planning 
        assistance and assistance in financial management, user fee 
        analysis, budgeting, capital improvement planning, facility 
        operation and maintenance, repair schedules, and other 
        activities to improve wastewater treatment plant operations, 
        except that the amounts used under this paragraph for a fiscal 
        year shall not exceed 2 percent of all grants provided to the 
        fund for the fiscal year under this title.''.
    (f) Consistency With Planning Requirements.--Section 603(f) of the 
Federal Water Pollution Control Act (33 U.S.C. 1383(f)) is amended by 
striking ``is consistent'' and inserting ``is not inconsistent''.
    (g) Construction Assistance.--Section 603 of the Federal Water 
Pollution Control Act (33 U.S.C. 1383) is amended by striking 
subsection (g) and inserting the following:
    ``(g) Construction Assistance.--
            ``(1) Priority list requirement.--The State may provide 
        financial assistance from the water pollution control revolving 
        fund of the State for a project for construction of a publicly 
        owned treatment works only if the project is on the priority 
        list of the State under section 216, without regard to the rank 
        of the project on the list.
            ``(2) Eligibility of certain treatment works.--A treatment 
        works shall be treated as a publicly owned treatment works for 
        purposes of subsection (c) if the treatment works, without 
        regard to ownership, would be considered a publicly owned 
        treatment works and is principally treating municipal waste 
        water or domestic sewage.''.
    (h) Principal Subsidization.--Section 603 of the Federal Water 
Pollution Control Act (33 U.S.C. 1383) is amended by adding at the end 
the following:
    ``(i) Principal Subsidization.--
            ``(1) In general.--Subject to paragraph (2), in a case in 
        which a State makes a loan under subsection (d)(1) to a 
        financially distressed community, the State may provide 
        additional subsidization to the loan recipient (including 
        forgiveness of principal).
            ``(2) Limitation.--For each fiscal year, the total amount 
        of loan subsidies made by a State under this subsection shall 
        not exceed 30 percent of the amount of the capitalization grant 
        received by the State for that fiscal year.
    ``(j) Information to Assist States.--The Administrator may publish 
information to assist States in establishing the affordability criteria 
referred to in subsection (l).
    ``(k) Priority.--In making a loan under this section, a State may 
give priority to a financially distressed community.
    ``(l) Definition of Financially Distressed Community.--In this 
section, the term `financially distressed community' means any 
community that meets affordability criteria that are--
            ``(1) established by the State in which the community is 
        located; and
            ``(2) developed after public review and comment.''.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

    Section 607 of the Federal Water Pollution Control Act (33 U.S.C. 
1387) is amended by striking ``the following sums:'' and all that 
follows through the period at the end of paragraph (5) and inserting 
``$4,000,000,000 for each of fiscal years 2006 through 2010.''.

Summary: Clean Water Infrastructure Financing Act of 2005 - Amends the Federal Water Pollution Control Act to eliminate certain restrictions on capitalization grants to states under the water pollution control revolving fund program and to direct the Administrator of the Environmental Protection Agency (EPA) to make such grants to accomplish the purposes of the Act.

Revises certain requirements for the construction of publicly-owned treatment works under capitalization grant agreements.

 Directs the Administrator to assist states in establishing simplified procedures for small water systems (serving populations of 20,000 or less) to obtain assistance under the Act. Requires state water pollution control revolving funds to be used only for providing assistance for activities which have as a principal benefit the improvement or protection of water quality of navigable waters. Makes revisions concerning uses of funds for: (1) innovative technologies; (2) administrative expenses; (3) small system technical, planning, and management assistance; (4) financially distressed communities; and (5) construction assistance. Authorizes states to give priority to financially distressed communities in making loans from revolving funds. Reauthorizes appropriations for FY2006-2010 for the water pollution control revolving fund program.