Clean Water Infrastructure Financing Act of 1999

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Clean Water Infrastructure Financing 
Act of 1999''.

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, and after providing 
        notice and opportunity for public comment, the Administrator 
        shall publish a manual to assist small systems in obtaining 
        assistance under this title and publish 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 a 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 Disadvantaged 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 disadvantaged 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 for Innovative Technology.--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) Interest Rates.--Section 603 of the Federal Water Pollution 
Control Act (33 U.S.C. 1383) is amended by adding at the end the 
following:
    ``(i) Interest Rates.--
            ``(1) In general.--In any case in which a State makes a 
        loan under subsection (d)(1) to a disadvantaged community, the 
        State may charge a negative interest rate of not to exceed 2 
        percent to reduce the unpaid principal of the loan.
            ``(2) Limitation.--The aggregate amount of all negative 
        interest rate loans the State makes for a fiscal year under 
        paragraph (1) shall not exceed 20 percent of the aggregate 
        amount of all loans made by the State from the water pollution 
        control revolving fund for the fiscal year.
    ``(j) Definition of Disadvantaged Community.--In this section, the 
term `disadvantaged community' means the service area of a publicly 
owned treatment works with respect to which the average annual 
residential sewage treatment charges for a user of the treatment works 
meet affordability criteria established by the State in which the 
treatment works is located (after providing for public review and 
comment) in accordance with guidelines established by the Administrator 
in cooperation with the States.''.

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 
``$3,000,000,000 for each of fiscal years 2001 through 2005.''.

Summary: Removes certain requirements for States with respect to construction of treatment works under capitalization grant agreements.
Directs the Administrator of the Environmental Protection Agency to assist States in establishing simplified procedures for small water systems to obtain assistance under the Act.
Requires revolving funds to be used only for providing assistance for activities that have as a principal benefit the improvement or protection of water quality of navigable waters.  Adds activities to the list of those which may be assisted.
Provides for a repayment period of the lesser of 40 years or the expected life of the project to be financed with loan proceeds with respect to loans made to disadvantaged communities from revolving funds.  Requires loans made from such funds to be fully amortized upon the expiration of the loan term (currently, no later than 20 years after project completion). Requires such funds to provide: (1) loan guarantees for developing and implementing innovative technologies; and (2) technical, planning, and other specified assistance to small systems.
Treats a treatment works as a publicly owned treatment works, for purposes of eligibility for construction assistance from a revolving fund, 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.
Provides for negative interest rates of up to two percent to reduce the unpaid principal on loans from revolving funds made to disadvantaged communities.
Reauthorizes appropriations for FY 2001 through 2005 for the revolving fund program.