To amend the Federal Water Pollution Control Act to authorize appropriations for water pollution control research, development, and technology demonstration, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Water Quality Research, Development, 
and Technology Demonstration Act''.

SEC. 2. AMENDMENT OF FEDERAL WATER POLLUTION CONTROL 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 provision, 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.).

SEC. 3. 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 paragraph (7) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(8) make grants to nonprofit organizations 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 municipalities to plan, 
        develop, and gain financing for wastewater infrastructure 
        assistance;
            ``(9) make grants to nonprofit organizations to provide 
        technical assistance and training to 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 
        requirements of this Act; and
            ``(10) make grants to nonprofit organizations to 
        disseminate information to rural municipalities, small 
        municipalities, and municipalities that meet the affordability 
        criteria established under section 603(i)(2) by the State in 
        which the municipality 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: ``(7) not to exceed $80,000,000 for fiscal year 
        2003, $85,000,000 for fiscal year 2004, $90,000,000 for fiscal 
        year 2005, $95,000,000 for fiscal year 2006, and $100,000,000 
        for fiscal year 2007 for carrying out subsections (b)(3), 
        (b)(8), (b)(9), and (b)(10), 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 subsections 
        (b)(8), (b)(9), and (b)(10)''.
    (c) Competitive Procedures for Awarding Grants.--Section 104 (33 
U.S.C. 1254(b)) is amended by adding at the end the following:
    ``(v) Competitive Procedures for Awarding Grants.--The 
Administrator shall establish procedures that, to the maximum extent 
practicable, promote competition and openness in the award of grants to 
nonprofit private agencies, institutions, and organizations under this 
section.''.

SEC. 4. CAPITALIZATION GRANT AGREEMENT ADDITIONAL REQUIREMENT.

    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 paragraph (10) and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(11) beginning in fiscal year 2004, the State will 
        include as a condition of providing assistance under section 
        603(c)(1) that the recipient of such assistance study and 
        evaluate the cost and effectiveness of innovative and 
        alternative processes, materials, and techniques for carrying 
        out projects and activities eligible for such assistance under 
        section 603(c), and select, to the extent practicable, projects 
        and activities that more efficiently use energy and natural and 
        financial resources or provide greater environmental 
        benefits.''.

SEC. 5. ASSISTANCE AND SUBSIDIZATION.

    (a) Technical and Planning Assistance for Small Systems.--Section 
603(d) (33 U.S.C. 1383(d)) is amended--
            (1) by striking ``and'' at the end of paragraph (6);
            (2) by striking the period at the end of paragraph (7) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(8) to provide to treatment works, which serve a 
        population of 20,000 or fewer, with technical and planning 
        assistance to improve wastewater treatment plant management and 
        operations; except that such amounts shall not exceed 2 percent 
        of grant awards to such fund under this title.''.
    (b) Additional Subsidization.--Section 603 (33 U.S.C. 1383) is 
amended by adding at the end the following:
    ``(i) Additional Subsidization.--
            ``(1) In general.--In any case in which a State provides 
        assistance under subsection (d), the State may provide 
        additional subsidization, including forgiveness of principal 
        and negative interest loans, for projects and activities 
        eligible for assistance under section 603(c)(1) to implement 
        innovative and alternative processes, materials, and techniques 
        (including nonstructural protection of surface waters, new or 
        improved methods of waste treatment, and pollutant trading) 
        that are of a type recommended under paragraph (2) and that may 
        result in cost savings or increased environmental benefit when 
        compared to standard processes, materials, and techniques.
            ``(2) Support for innovative and alternative processes, 
        materials, and techniques.--Based on recommendations of the 
        Water Quality Research Technical Advisory Committee under 
        section 104(a)(3), the Administrator shall annually prepare a 
        list and description of innovative and alternative processes, 
        materials, and techniques that the Administrator recommends for 
        additional State subsidization under this subsection.''.

SEC. 6. PROGRAM PLAN.

    Section 104 (33 U.S.C. 1254) is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (1), (2), (3), (4), 
                (5), and (6) as subparagraphs (A), (B), (C), (D), (E), 
                and (F), respectively; and
                    (B) by moving such subparagraphs 2 ems to the 
                right;
            (2) by striking the section heading, the section 
        designation, and ``(a) The Administrator shall'' and inserting 
        the following:

``SEC. 104. RESEARCH, INVESTIGATION, TRAINING, AND INFORMATION.

    ``(a) National Programs.--
            ``(1) Establishment.--The Administrator shall''; and
            (3) by adding at the end of subsection (a) the following:
            ``(2) Program plan.--
                    ``(A) In general.--Not later than 18 months after 
                the date enactment of this subparagraph, the 
                Administrator, in cooperation with other Federal, 
                State, and local agencies and nonprofit organizations 
                with expertise in water pollution control research, 
                development, and technology demonstration, shall 
                prepare and transmit to Congress a 5-year program plan 
                to guide water pollution control research, development, 
                and technology demonstration activities under this Act.
                    ``(B) Comments of advisory committee.--The program 
                plan shall be submitted to the Water Quality Research 
                Technical Advisory Committee established under 
                paragraph (3) for review and comment.
            ``(3) Water quality research technical advisory 
        committee.--
                    ``(A) Establishment.--Not later than 12 months 
                after the date of enactment of this Act, the 
                Administrator shall establish under paragraph (1)(D) a 
                Water Quality Research Technical Advisory Committee (in 
                this paragraph referred to as the `Advisory 
                Committee').
                    ``(B) Duties.--The Advisory Committee shall--
                            ``(i) advise the Administrator on the 
                        development and implementation of the program 
                        plan under paragraph (1);
                            ``(ii) advise the Administrator annually on 
                        priority needs for water pollution control 
                        research, development, and technology 
                        demonstration under this Act and resources 
                        necessary for meeting such needs;
                            ``(iii) make recommendations annually to 
                        the Administrator on types of innovative and 
                        alternative processes, materials, and 
                        techniques that should be recommended for 
                        additional subsidization under section 603(i); 
                        and
                            ``(iv) review annually the results of water 
                        pollution control research, development, and 
                        technology demonstration carried out under this 
                        Act in the preceding fiscal year.
                    ``(C) Membership.--The Advisory Committee shall be 
                composed of 7 members appointed by the Administrator 
                after seeking and receiving recommendations from the 
                National Academy of Sciences. Members appointed to the  
Advisory Committee shall have experience or be technically qualified, 
by training or knowledge, in water pollution control research, 
development, and technology demonstration.
                    ``(D) Compensation.--The members of the Advisory 
                Committee shall serve without compensation, but shall 
                receive travel expenses, including per diem in lieu of 
                subsistence, in accordance with sections 5702 and 5703 
                of title 5, United States Code.
                    ``(E) Meetings.--The Advisory Committee shall meet 
                at least 4 times each year.
                    ``(F) Termination.--The Advisory Committee shall 
                terminate 5 years after the date of its establishment.
            ``(4) Reports to congress.--Not later than 1 year after the 
        date of enactment of the Water Quality Research, Development, 
        and Technology Demonstration Act, and annually thereafter, the 
        Administrator shall transmit to Congress a report on the status 
        and results to date of the implementation of the program plan 
        prepared under paragraph (2). Each report shall include the 
        comments of the Water Quality Research Technical Advisory 
        Committee under paragraphs (2) and (3).''.

SEC. 7. TECHNOLOGY DEMONSTRATION PROGRAM FOR WATER QUALITY ENHANCEMENT 
              AND MANAGEMENT.

    Title I of the Act (33 U.S.C. 1251 et seq.) is amended--
            (1) by redesignating the second section 121 (relating to 
        wet weather watershed pilot projects) as section 122; and
            (2) by adding at the end the following:

``SEC. 123. TECHNOLOGY DEMONSTRATION PROGRAM FOR WATER QUALITY 
              ENHANCEMENT AND MANAGEMENT.

    ``(a) Establishment.--
            ``(1) In general.--As soon as practicable after the date of 
        enactment of this section, the Administrator shall establish a 
        nationwide demonstration program to--
                    ``(A) promote innovations in technology and 
                alternative approaches to water quality management; and
                    ``(B) reduce costs to municipalities incurred in 
                complying with this Act.
            ``(2) Scope.--The demonstration program shall consist of 10 
        projects per year, to be carried out in municipalities selected 
        by the Administrator under subsection (b).
    ``(b) Selection of Municipalities.--
            ``(1) Application.--A municipality that seeks to be 
        selected to participate in the demonstration program shall 
        submit to the Administrator a plan that--
                    ``(A) is developed in coordination with--
                            ``(i) the Water Quality Research Technical 
                        Advisory Committee established under section 
                        104(a)(3);
                            ``(ii) the agency of the State having 
                        jurisdiction over water quality; and
                            ``(iii) interested stakeholders;
                    ``(B) describes adverse water quality impacts 
                specific to surrounding ecosystems;
                    ``(C) includes a strategy under which the 
                municipality, through participation in the 
                demonstration program, could effectively address those 
                impacts and achieve the same water quality goals as 
                those goals that could be achieved using more 
                traditional methods or are mandated under this Act; and
                    ``(D) includes a schedule for achieving the goals 
                of the municipality.
            ``(2) Types of projects.--In carrying out the demonstration 
        program, the Administrator may select projects which have the 
        potential to advance innovative or alternative approaches to 
        addressing--
                    ``(A) excessive nutrient growth;
                    ``(B) water reclamation and reuse;
                    ``(C) nonpoint source water pollution;
                    ``(D) sanitary overflows;
                    ``(E) combined sewer overflows;
                    ``(F) problems with naturally-occurring 
                constituents of concern; or
                    ``(G) problems with erosion and excess sediment.
            ``(3) Responsibilities of administrator.--In selecting 
        municipalities under this subsection, the Administrator shall--
                    ``(A) ensure, to the maximum extent practicable--
                            ``(i) the inclusion in the demonstration 
                        program of projects which reflect a broad 
                        geographic distribution and nontraditional 
                        approaches (including low-impact development 
                        technologies) used for the projects; and
                            ``(ii) that each category of project 
                        described in paragraph (2) is adequately 
                        represented;
                    ``(B) give higher priority to projects that address 
                multiple problems and are regionally applicable;
                    ``(C) ensure, to the maximum extent practicable, 
                that at least 1 small community having a population of 
                10,000 or less receives a grant each year; and
                    ``(D) ensure that, for each fiscal year, no 
                municipality receives more than 25 percent of the total 
                amount of funds made available for the fiscal year to 
                provide grants under this section.
            ``(4) Cost sharing.--The non-Federal share of the cost of a 
        project carried out under this section shall be at least 20 
        percent.
    ``(c) Reports.--
            ``(1) Reports from municipalities.--A municipality that is 
        selected for participation in the demonstration program shall 
        submit to the Administrator, on the date of completion of a 
        project of the municipality and on each of the dates that is 1, 
        2, and 3 years after that date, a report that describes the 
        effectiveness of the project.
            ``(2) Reports to congress.--Not later than 2 years after 
        the date of enactment of this section, and every 2 years 
        thereafter, the Administrator shall compile, and submit to 
        Congress, a report that describes the status and results of the 
        demonstration program.
    ``(d) Incorporation of Results and Information.--To the maximum 
extent practicable, the Administrator shall incorporate the results of, 
and information obtained from, successful projects under this section 
into programs administered by the Administrator.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $20,000,000 for each of fiscal 
years 2003 through 2007.''.

Summary: Water Quality Research, Development, and Technology Demonstration Act - Amends the Federal Water Pollution Control Act (FWPCA) to authorize the Administrator of the Environmental Protection Agency to make grants to nonprofit organizations to provide technical and information assistance for rural and small treatment works. Requires establishment of procedures for the competitive award of grants.Extends funding for State- and interstate-managed pollution control programs.Revises State water pollution control revolving fund provisions concerning: (1) agreements for treatment works capitalization grants; (2) technical and planning assistance for small treatment works; and (3) additional subsidization.Requires the Administrator to: (1) prepare and transmit to Congress a five-year program plan to guide water pollution control research, development, and technology demonstration activities under FWPCA; and (2) submit the plan for review and comment to the Water Quality Research Technical Advisory Committee established by this Act; (3) establish a nationwide demonstration program, carried out in selected municipalities, to promote technological innovations and alternative approaches to water quality management and reduce municipalities' FWPCA compliance costs.