SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Clean Water Compliance and 
Affordability Act''.

SEC. 2. INTEGRATED MUNICIPAL STORMWATER AND WASTEWATER APPROACH 
              FRAMEWORK.

    (a) In General.--In the first 5 fiscal years beginning after the 
date of enactment of this Act, the Administrator of the Environmental 
Protection Agency (referred to in this section as the 
``Administrator''), in coordination with appropriate State, local, and 
regional authorities, shall carry out a pilot program under which the 
Administrator shall work cooperatively with and facilitate the efforts 
of eligible municipalities to develop and implement integrated plans to 
meet wastewater and stormwater obligations of the eligible 
municipalities under the Federal Water Pollution Control Act (33 U.S.C. 
1251 et seq.) in a more cost-effective and flexible manner.
    (b) Framework.--The Administrator shall carry out the pilot program 
in a manner that is consistent with the Integrated Municipal Stormwater 
and Wastewater Approach Framework issued by the Environmental 
Protection Agency and dated May 2012.
    (c) Selection of Eligible Municipalities.--
            (1) In general.--The Administrator, in consultation with 
        States that have approved National Pollutant Discharge 
        Elimination System programs, shall select not less than 15 
        eligible municipalities to participate in the pilot program.
            (2) Eligible municipality.--An eligible municipality is a 
        county, city, town, township, or subdivision of a State or 
        local government that--
                    (A) qualifies as a National Pollutant Discharge 
                Elimination System permit holder or designee; or
                    (B) is a party to an administrative order, 
                administrative consent agreement, or judicial consent 
                decree to comply with the requirements of the Federal 
                Water Pollution Control Act (33 U.S.C. 1251 et seq.).
            (3) Selection factors.--
                    (A) In general.--In selecting the eligible 
                municipalities to participate in the pilot program, the 
                Administrator shall give priority to--
                            (i) eligible municipalities that are 
                        operating under an administrative order, 
                        administrative consent agreement, or judicial 
                        consent decree to comply with the requirements 
                        of the Federal Water Pollution Control Act (33 
                        U.S.C. 1251 et seq.);
                            (ii) eligible municipalities that are 
                        affected by affordability constraints in 
                        planning and implementing control measures to 
                        address wet weather discharges from wastewater 
                        and stormwater facilities of the eligible 
                        municipalities; and
                            (iii) eligible municipalities with a 
                        history of knowledgeable, detailed, and 
                        comprehensive efforts to develop integrated and 
                        adaptive clean water management practices.
                    (B) Use of adaptive management approaches.--In 
                selecting eligible municipalities to participate in the 
                pilot program, the Administrator may give priority to 
                an eligible municipality that is seeking to develop and 
                implement an integrated plan that includes adaptive 
                approaches to account for changed or future uncertain 
                circumstances, including--
                            (i) the use of new innovative technical or 
                        institutional approaches; and
                            (ii) the ability to adapt the integrated 
                        plan in response to new regulatory requirements 
                        and reductions in financial capability.
    (d) Approval of Integrated Plans.--
            (1) In general.--In approving the integrated plan of an 
        eligible municipality under the pilot program established under 
        subsection (a), the Administrator shall--
                    (A) account for the financial capability of the 
                eligible municipality to adequately address the 
                requirements of the Federal Water Pollution Control Act 
                (33 U.S.C. 1251 et seq.) that apply to the eligible 
                municipality;
                    (B) prioritize the obligations of the eligible 
                municipality under the Federal Water Pollution Control 
                Act (33 U.S.C. 1251 et seq.) according to the most 
                cost-effective and environmentally beneficial outcomes;
                    (C) account for the maintenance, operational, and 
                regulatory obligations of the eligible municipality; 
                and
                    (D) enable the eligible municipality to implement 
                innovative and flexible approaches to meet the 
                obligations of the eligible municipality under the 
                Federal Water Pollution Control Act (33 U.S.C. 1251 et 
                seq.).
            (2) Additional authorities.--In carrying out the pilot 
        program established under subsection (a), the Administrator 
        may, in full coordination and mutual agreement with an eligible 
        municipality selected to participate in the pilot program--
                    (A) extend the allowable national pollutant 
                discharge elimination system permit term under section 
                402 of the Federal Water Pollution Control Act (33 
                U.S.C. 1342) to a maximum of 25 years, and make 
                corresponding changes to any associated implementation 
                schedule;
                    (B) modify the implementation terms of a consent 
                decree entered into by the eligible municipality with 
                the Administrator pursuant to that Act; and
                    (C) provide additional regulatory flexibility under 
                the Federal Water Pollution Control Act (33 U.S.C. 1251 
                et seq.) in approving and implementing an integrated 
                plan that includes adaptive approaches in order to 
                encourage the innovation integral to such approaches.
    (e) Report to Congress.--Not later than 1 year after the date of 
enactment of this Act, and each year thereafter for 5 years, the 
Administrator shall submit to Congress a report on the results of the 
pilot program established under subsection (a), including a description 
of the specific outcomes expected to be achieved that will reduce the 
costs of complying with the requirements of the Federal Water Pollution 
Control Act (33 U.S.C. 1251 et seq.) for--
            (1) eligible municipalities participating in the pilot 
        program; and
            (2) eligible municipalities that are similarly situated but 
        not participating in the pilot program.
Output: Clean Water Compliance and Affordability Act  This bill requires the Environmental Protection Agency (EPA) to carry out a pilot program to facilitate the efforts of eligible municipalities to develop and implement integrated plans to meet their wastewater and stormwater obligations under the Federal Water Pollution Control Act (commonly known as the Clean Water Act) in a cost-effective and flexible manner and consistent with the Integrated Municipal Stormwater and Wastewater Approach Framework issued by the EPA in May 2012. The pilot program must facilitate the efforts of at least 15 municipalities. A municipality is eligible to participate in the pilot program if it is: (1) a National Pollutant Discharge Elimination System (NPDES) permit holder or designee; or (2) a party to an administrative order, administrative consent agreement, or judicial consent decree to comply with the requirements of the Clean Water Act. The EPA must give priority to municipalities that: (1) are affected by affordability constraints in planning and implementing control measures addressing wet weather discharges from wastewater and stormwater facilities; and (2) have a history of knowledgeable, detailed, and comprehensive efforts to develop integrated and adaptive clean water management practices. The EPA may give priority to municipalities seeking to develop and implement an integrated plan that includes approaches that adapt to changed or future uncertain circumstances. With the mutual agreement of participating municipalities, the EPA may: (1) extend the allowable NPDES permit term by up to 25 years, (2) modify the implementation terms of a consent decree, and (3) provide additional regulatory flexibility in approving and implementing an integrated plan that includes adaptive approaches.