Revises State water pollution control revolving fund provisions concerning: (1) project eligibility; (2) loan payments and subsidization; (3) community development conditions; (4) priorities; (5) strategies for technical, managerial, operations, maintenance, and capital investments and sustaining compliance with applicable laws; (6) project restructuring conditions; (7) technical assistance for small treatment works; (8) competitive bidding; (9) funding; and (10) intended use plans and progress reports.
Amends the Safe Drinking Water Act (SDWA) to revise State revolving loan fund provisions concerning: (1) project restructuring conditions; (2) intended use plans; (3) uses of assistance; (4) community development conditions; (5) additional authorized activities; (6) loan subsidization for disadvantaged users; (7) capital improvement needs surveys; (8) competitive bidding; and (9) funding.
Includes technology assessment among the responsibilities of small public water system technology assistance centers and imposes review requirements.
Extends funding for university-based environmental finance centers.
Amends FWPCA and SDWA to allow a Governor to reserve and transfer a specified percentage of capitalization grants made under each Act between the water pollution control and drinking water treatment revolving funds.
Directs the Administrator of the Environmental Protection Agency to establish a demonstration program to promote technological innovations and alternative approaches to water quality management or water supply and to reduce municipalities' FWPCA and SDWA compliance costs.
Directs the National Academy of Sciences to study public water system and treatment works rate structures of selected communities.
Directs the Administrator to identify ways to streamline and improve the application and review process for the provision of assistance from State water pollution and drinking water revolving funds.
Directs the Secretary of the Interior, acting through the Director of the United States Geological Survey, to: (1) assess the state of the Nation's water resources; and (2) coordinate a process to develop and publish a list of water resource research priorities focusing on monitoring and improving the quality of information available to water resource managers and a process to develop an effective system to communicate water resource information.
[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2813 Introduced in Senate (IS)]
107th CONGRESS
2d Session
S. 2813
To improve the financial and environmental sustainability of the water
programs of the United States.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 29, 2002
Mr. Smith of New Hampshire (for himself, Mr. Crapo, and Mr. Inhofe)
introduced the following bill; which was read twice and referred to the
Committee on Environment and Public Works
_______________________________________________________________________
A BILL
To improve the financial and environmental sustainability of the water
programs of the United States.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Water Quality
Investment Act of 2002''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
TITLE I--FEDERAL WATER POLLUTION CONTROL ACT MODIFICATIONS
Sec. 101. Definitions.
Sec. 102. Funding for Indian programs.
Sec. 103. Requirements for receipt of funds.
TITLE II--SAFE DRINKING WATER ACT MODIFICATIONS
Sec. 201. Planning, design, and preconstruction costs; use of State
loan funds for security purposes.
Sec. 202. State loan fund.
Sec. 203. Assistance for disadvantaged communities.
Sec. 204. Private utilities.
Sec. 205. Technical assistance for small systems.
Sec. 206. Authorization of appropriations.
TITLE III--INNOVATIONS IN FUND AND WATER QUALITY MANAGEMENT
Sec. 301. Transfer of funds.
Sec. 302. Demonstration program for water quality enhancement and
management.
Sec. 303. Rate study.
Sec. 304. State loan fund review process.
Sec. 305. Effects on policies and rights.
TITLE IV--WATER RESOURCE PLANNING
Sec. 401. Findings.
Sec. 402. Definition of Secretary.
Sec. 403. Actions.
Sec. 404. Report to Congress.
Sec. 405. Authorization of appropriations.
SEC. 2. PURPOSES.
The purposes of this Act are--
(1) to modernize State water pollution control revolving
funds and the allocation for those funds to ensure that the
funds distributed reflect water quality needs;
(2) to maximize use of Federal funds and encourage maximum
efficiency for States and localities; and
(3) to recognize the national environmental and public
health importance of maintaining the drinking water and waste
water infrastructure of the United States.
TITLE I--FEDERAL WATER POLLUTION CONTROL ACT MODIFICATIONS
SEC. 101. DEFINITIONS.
Section 502 of the Federal Water Pollution Control Act (33 U.S.C.
1362) is amended by adding at the end the following:
``(24) Disadvantaged community.--The term `disadvantaged
community' means a community or entity that meets affordability
criteria established, after public review and comment, by the
State in which the community or entity is located.
``(25) Small treatment works.--The term `small treatment
works' means a treatment works (as defined in section 212)
serving a population of 10,000 or less.''.
SEC. 102. FUNDING FOR INDIAN PROGRAMS.
Section 518 of the Federal Water Pollution Control Act (33 U.S.C.
1377) is amended by striking subsection (c) and inserting the
following:
``(c) Reservation of Funds.--
``(1) In general.--For fiscal year 1987 and each fiscal
year thereafter, the Administrator shall reserve, before
allocations to the States under section 604(a), not less than
0.5 percent nor more than 1.5 percent of the funds made
available under section 207.
``(2) Use of funds.--Funds reserved under this subsection
shall be available only for grants for the development of waste
treatment management plans and for the construction of sewage
treatment works to serve--
``(A) Indian tribes;
``(B) former Indian reservations in Oklahoma (as
determined by the Secretary of the Interior); and
``(C) Native villages (as defined in section 3 of
the Alaska Native Claims Settlement Act (43 U.S.C.
1602)).''.
SEC. 103. REQUIREMENTS FOR RECEIPT OF FUNDS.
(a) Grants to States for Establishment of Revolving Funds.--Section
601(a) of the Federal Water Pollution Control Act (33 U.S.C. 1381(a))
is amended by striking ``for providing assistance (1)'' and all that
follows and inserting the following: ``for providing assistance for
eligible projects in accordance with section 603(c).''.
(b) Projects 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) Projects Eligible for Assistance.--
``(1) In general.--Funds available to each State water
pollution control revolving fund shall be used only for--
``(A) providing financial assistance to a
municipality, intermunicipal, interstate, or State
agency, or private utility, for construction (including
costs for planning, design, associated preconstruction)
of treatment works (as defined in section 212);
``(B) implementation of a management program
established under section 319;
``(C) development and implementation of a
conservation and management plan under section 320;
``(D) water conservation projects or activities
that provide a water quality benefit;
``(E) reuse, reclamation, or recycling projects
that provide a water quality benefit; or
``(F) improvements to the security of
infrastructure systems and treatment works.
``(2) Maintenance of fund.--
``(A) In general.--The fund shall be established,
maintained, and credited with repayments.
``(B) Availability.--Any balances in the fund shall
be available in perpetuity for providing financial
assistance described in paragraph (1).
``(3) Approaches.--Projects eligible to receive assistance
from a State water pollution control revolving fund under this
title may include projects that--
``(A) provide a water quality benefit; and
``(B) use 1 or more nontraditional approaches (such
as low-impact development technologies, redevelopment
of waterfront brownfields, watershed management
actions, decentralized wastewater treatment
innovations, and other nonpoint best management
practices).''.
(c) Extension of Loans; Types of Assistance.--Section 603(d) of the
Federal Water Pollution Control Act (33 U.S.C. 1383(d)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``, at terms
not to exceed 20 years'';
(B) by striking subparagraph (B) and inserting the
following:
``(B)(i) annual principal and interest payments
shall commence not later than 1 year after the date of
completion of any project for which the loan was made;
and
``(ii) except as provided in subparagraph (C), each
loan shall be fully amortized not later than 30 years
after the date of completion of the project for which
the loan is made;'';
(C) by redesignating subparagraphs (C) and (D) as
subparagraphs (D) and (E), respectively;
(D) by inserting after subparagraph (B) the
following:
``(C) in the case of a disadvantaged community, a
State may provide an extended term for a loan if the
extended term--
``(i) terminates not later than the date
that is 30 years after the date of completion
of the project; and
``(ii) does not exceed the expected design
life of the project.'';
(E) in subparagraph (D) (as redesignated by
subparagraph (C)), by inserting ``, or, in the case of
a privately owned system, demonstrate that adequate
security exists,'' after ``revenue''; and
(F) in subparagraph (E) (as redesignated by
subparagraph (C)), by inserting ``State loan'' before
``fund'';
(2) in paragraph (6), by striking ``and'' at the end;
(3) by redesignating paragraph (7) as paragraph (8);
(4) by inserting after paragraph (6) the following:
``(7) subject to subsection (e)(2), by a State to provide
additional subsidization (including forgiveness of principal)--
``(A) to 1 or more treatment works for use in
developing technical, managerial, and financial
capacity in accordance with subsection (i); or
``(B) to a disadvantaged community, or to a
community or entity that the State expects to
experience significant financial difficulties and
unaffordable rate increases in order to meet the
requirements of this Act (including regulations
promulgated under this Act), that receives a loan from
the State under this title; and''; and
(5) in paragraph (8) (as redesignated by paragraph (3)), by
striking ``that such amounts shall not exceed 4'' and inserting
``that, beginning in fiscal year 2003, those amounts shall not
exceed 5''.
(d) Limitations.--Section 603(e) of the Federal Water Pollution
Control Act (33 U.S.C. 1383(e)) is amended--
(1) by striking ``(e)'' and all that follows through ``If a
State'' and inserting the following:
``(e) Limitations.--
``(1) Prevention of double benefits.--If a State''; and
(2) by adding at the end the following:
``(2) Total amount of subsidies.--For each fiscal year, the
total amount of loan subsidies made by a State under subsection
(d)(7) may not exceed 30 percent of the amount of all
capitalization grants received by the State for the fiscal
year.''.
(e) Additional Requirements for Water Pollution Control Revolving
Funds.--Section 603 of the Federal Water Pollution Control Act (33
U.S.C. 1383) is amended by adding at the end the following:
``(i) Technical, Managerial, and Financial Capacity for Optimal
Performance.--
``(1) Definition of state agency.--In this subsection, the
term `State agency' means the agency of a State having
jurisdiction over water quality management (including the
establishment of water quality standards).
``(2) Strategy.--
``(A) In general.--Not later than 3 years after the
date of enactment of this subsection, each State agency
shall implement a strategy to assist treatment works,
as needed in the State receiving assistance under this
title, in--
``(i) attaining and maintaining technical,
managerial, operations, maintenance, and
capital investments; and
``(ii) meeting and sustaining compliance
with applicable Federal and State laws.
``(B) Requirements.--In preparing the strategy
described in subparagraph (A), the State shall
consider, solicit public comment on, and include in the
strategy a description of the manner in which the State
intends to use the authorities and resources of the
State to assist treatment works in attaining and
maintaining technical, managerial, and financial capacity.
``(3) Condition for receipt of assistance.--
``(A) In general.--Except as provided in
subparagraph (B) and subsection (l), beginning on the
date that is 3 years after the date of enactment of
this subsection, the State shall require each treatment
works that receives, in the aggregate, more than
$500,000 under this title in any fiscal year to certify
to the State that the treatment works has adequate
technical, managerial, and financial capacity,
including the establishment and implementation by the
treatment works of an asset management plan that--
``(i) conforms to generally accepted
industry practices; and
``(ii) includes--
``(I) an inventory of existing
assets (including an estimate of the
useful life of those assets); and
``(II) an optimal schedule of
operations, maintenance, and capital
investment required to meet and sustain
performance objectives for the
treatment works established in
accordance with applicable Federal and
State laws over the useful life of the
treatment works.
``(B) Exception.--Notwithstanding subparagraph (A),
a treatment works may receive assistance under this
title if the State determines that the assistance would
enable the treatment works to attain adequate
technical, managerial, and financial capacity.
``(j) Restructuring.--Notwithstanding section 204(b)(1), except as
provided in subsections (k) and (l), a State may provide assistance
from the water pollution control revolving fund of the State for a
project only if the recipient of the assistance certifies to the State
that the recipient has considered--
``(1) consolidating management functions or ownership with
another facility;
``(2) forming cooperative partnerships; and
``(3) using nonstructural alternatives or technologies that
may be more environmentally sensitive.
``(k) Rate Structure.--As a condition of the receipt of funds for a
project under this title, a recipient shall certify to the State that
the recipient has in effect--
``(1) a plan to achieve, within a reasonable period of
time, a rate structure that, to the maximum extent
practicable--
``(A) reflects the actual cost of service provided
by the recipient; and
``(B) addresses capital replacement funds; and
``(2) not later than the date of completion of the project,
an asset management plan described in subsection (i)(3).
``(l) Exemption for Assistance Solely for Planning, Design,
Preconstruction, and Security Activities.--Subsections (i)(3) and (j)
shall not apply to assistance provided under this title that is to be
used by a treatment works solely for planning, design, preconstruction,
or security activities.
``(m) Technical Assistance.--
``(1) Definition of qualified nonprofit technical
assistance provider.--In this subsection, the term `qualified
nonprofit technical assistance provider' means a nonprofit
entity that provides technical assistance (such as circuit-
rider programs, training, preliminary engineering evaluations,
and rural community assistance programs) to treatment works
that--
``(A) serve not more than 3,300 users; and
``(B) are located in a rural area.
``(2) Grant program.--
``(A) In general.--The Administrator may make
grants to a qualified nonprofit technical assistance
provider for use in assisting small treatment works in
planning, developing, and obtaining financing for
eligible projects described in subsection (c).
``(B) Distribution of grants.--In carrying out this
subsection, the Administrator shall ensure, to the
maximum extent practicable, that technical assistance
provided using funds from a grant under subparagraph
(A) is made available in each State.
``(C) Consultation.--As a condition of receiving a
grant under this subsection, a qualified nonprofit
technical assistance provider shall consult with each
State in which grant funds are to be expended or
otherwise made available before the grant funds are
expended or made available in the State.
``(3) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $10,000,000 for
each of fiscal years 2003 through 2007.
``(n) Priority.--In making a loan under this section, a State may
give priority to a disadvantaged community.''.
(f) Allotment of Funds.--Section 604(a) of the Federal Water
Pollution Control Act (33 U.S.C. 1384(a)) is amended by striking
subsection (a) and inserting the following:
``(a) Formula.--
``(1) Definition of state.--In this subsection, the term
`State' means--
``(A) a State; and
``(B) the District of Columbia.
``(2) Allocation.--Funds made available to carry out this
title for each of fiscal years 2003 through 2006 shall be
allocated by the Administrator in accordance with a formula
that allocates to each State the proportional share of the
State needs identified in the most recent survey conducted
under section 516(2), except that the minimum proportionate
share provided to each State shall be 1 percent of available
funds.
``(3) Private utilities.--If a State elects to include the
needs of private utilities in a needs survey used to develop
the allocation formula described in paragraph (2), the State
shall include projects of the private utilities on the list of projects
of the State that are eligible to receive funds under this title for
each year covered by the needs survey.''.
(g) Audits, Reports, and Fiscal Controls; Intended Use Plan.--
Section 606 of the Federal Water Pollution Control Act (33 U.S.C. 1386)
is amended--
(1) in subsection (c), by striking paragraph (1) and
inserting the following:
``(1) a summary of the priority projects developed under
section 603(g) for which the State intends to provide
assistance from the water pollution control revolving fund of
the State for the year covered by the plan;''; and
(2) in subsection (d)--
(A) in the subsection heading, by striking
``Report'' and inserting ``Reports'';
(B) by striking ``Beginning the'' and inserting the
following:
``(1) In general.--Beginning in the''; and
(C) by adding at the end the following:
``(2) Report on technical, managerial, and financial
capacity.--Not later than 2 years after the date on which a
State first adopts a strategy in accordance with section
603(j)(2), the State shall submit to the Administrator a report
on the progress made in improving the technical, managerial,
and financial capacity of treatment works in the State
(including the progress of the State in complying with the
amendments to section 603 made by the Water Investment Act of
2002).
``(3) Availability.--A State that submits a report under
this subsection shall make the report available to the
public.''.
(h) Authorization of Appropriations.--The Federal Water Pollution
Control Act is amended by striking section 607 (33 U.S.C. 1387) and
inserting the following:
``SEC. 607. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated to carry
out this title--
``(1) $3,200,000,000 for each of fiscal years 2003 and
2004;
``(2) $3,600,000,000 for fiscal year 2005;
``(3) $4,000,000,000 for fiscal year 2006; and
``(4) $6,000,000,000 for fiscal year 2007.
``(b) Availability.--Amounts made available under this section
shall remain available until expended.
``(c) Reservation for Needs Surveys.--Of the amount made available
under subsection (a) to carry out this title for a fiscal year, the
Administrator may reserve not more than $500,000 per year to pay the
costs of conducting needs surveys under section 516(2).''.
(i) Conforming Amendment.--Section 216 of the Federal Water
Pollution Control Act (33 U.S.C. 1296) is amended by striking ``Not
less than 25 per centum'' and all that follows.
(j) No New Cause of Action.--Nothing in this section or in any
amendment made by this section establishes any new cause of action, or
affects any cause of action in existence as of the date of enactment of
this Act, for the purposes of judicial review under the Federal Water
Pollution Control Act (33 U.S.C. 1251 et seq.).
TITLE II--SAFE DRINKING WATER ACT MODIFICATIONS
SEC. 201. PLANNING, DESIGN, AND PRECONSTRUCTION COSTS; USE OF STATE
LOAN FUNDS FOR SECURITY PURPOSES.
Section 1452(a)(2) of the Safe Drinking Water Act (42 U.S.C. 300j-
12(a)(2)) is amended--
(1) in the second sentence, by striking ``(not'' and
inserting ``(including planning, design, and associated
preconstruction expenditures but not''; and
(2) in the third sentence, by inserting before the period
at the end the following: ``, or used by any public water
system for the purpose of carrying out a project or activity to
increase the security of the public water system''.
SEC. 202. STATE LOAN FUND.
(a) In General.--Section 1452(a)(3)(B)(ii) of the Safe Drinking
Water Act (42 U.S.C. 300j-12(a)(3)(B)(ii)) is amended by inserting
``and the formation of regional partnerships'' after ``procedures''.
(b) Types of Assistance.--Section 1452(f) of the Safe Drinking
Water Act (42 U.S.C. 300j-12(f)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (B)--
(i) by striking ``20'' and inserting
``30''; and
(ii) by striking ``project, except'' and
all that follows and inserting the following:
``project, except that in the case of a
disadvantaged community (as defined in
subsection (d)(3)), a State may provide an
extended term for a loan, if the extended term
does not exceed the expected life of the
project; and'';
(B) in subparagraph (C), by striking ``and'' at the
end; and
(C) by adding at the end the following:
``(E) during the planning and engineering phase of
each project for which the loan funds are received, the
recipient of the loan funds certifies to the State that
the recipient of the loan funds has considered--
``(i) consolidating management functions or
ownership with another facility;
``(ii) forming cooperative partnerships;
and
``(iii) using nonstructural alternatives or
technologies that may be more environmentally
sensitive; and
``(F) during the planning and engineering phase of
each project for which a recipient receives loan funds
in excess of $500,000, the recipient certifies to the
State that the recipient has in effect--
``(i) a plan to achieve, within a
reasonable period of time, a rate structure
that, to the maximum extent practicable--
``(I) reflects the actual cost of
service provided by the recipient; and
``(II) addresses capital
replacement funds; and
``(ii) an asset management plan (for which
the Administrator may provide information to
assist States in determining plan content)
that--
``(I) conforms to generally
accepted industry practices; and
``(II) includes--
``(aa) an inventory of
existing assets (including an
estimate of the useful life of
the assets); and
``(bb) an optimal schedule
of operations, maintenance, and
capital investment required to
meet and sustain performance
objectives;'';
(2) in paragraph (4), by striking ``and'' at the end;
(3) in paragraph (5), by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following:
``(6) to reduce costs incurred by a municipality in issuing
bonds.''.
(c) Other Authorized Activities.--Section 1452(k)(1) of the Safe
Drinking Water Act (42 U.S.C. 300j-12(k)(1)) is amended by striking
subparagraph (D) and inserting the following:
``(D) Make expenditures for the development of
source water protection programs (including wellhead
protection programs under section 1428).''.
(d) No New Cause of Action.--Nothing in this section or in any
amendment made by this section establishes any new cause of action, or
affects any cause of action in existence as of the date of enactment of
this Act, for the purposes of judicial review under the Safe Drinking
Water Act (42 U.S.C. 300f et seq.).
(e) Planning, Design, and Security Assistance.--Nothing in this
section or in any amendment made by this section applies to assistance
provided under section 1452 of the Safe Drinking Water Act (42 U.S.C.
300j-12) that is to be used solely for any planning, design, or
security measure (as defined by a State in coordination with guidance
issued by the Administrator of the Environmental Protection Agency)
carried out with respect to a public water system under section 1452 of
that Act.
SEC. 203. ASSISTANCE FOR DISADVANTAGED COMMUNITIES.
Section 1452(d)(1) of the Safe Drinking Water Act (42 U.S.C. 300j-
12(d)(1)) is amended by striking ``to a community that the State
expects to become a disadvantaged community as the result of a proposed
project'' and inserting the following: ``a community or entity that the
State expects to experience significant financial difficulties and
unaffordable rate increases in order to meet the requirements of this
title (including regulations promulgated under this title), that
receives a loan from the State under this title''.
SEC. 204. PRIVATE UTILITIES.
Section 1452(h) of the Safe Drinking Water Act (42 U.S.C. 300j-
12(h)) is amended--
(1) by striking ``The Administrator'' and inserting the
following:
``(1) In general.--The Administrator''; and
(2) by adding at the end the following:
``(2) Private utilities.--If a State elects to include the
needs of private utilities in the needs survey under paragraph
(1), the State shall ensure that the private utilities are
eligible to receive funds under this title.''.
SEC. 205. TECHNICAL ASSISTANCE FOR SMALL SYSTEMS.
(a) Small Public Water Systems Technology Assistance Centers.--
Section 1420(f) of the Safe Drinking Water Act (42 U.S.C. 300g-9(f)) is
amended--
(1) in paragraph (2), by inserting ``technology
verification, pilot and field testing of innovative
technologies, and'' after ``shall include''; and
(2) by striking paragraph (6) and inserting the following:
``(6) Review and evaluation.--
``(A) In general.--Not less often than every 2
years, the Administrator shall review and evaluate the
program carried out under this subsection.
``(B) Disqualification.--If, in carrying out this
subsection, the Administrator determines that a small
public water system technology assistance center is not
carrying out the duties of the center, the
Administrator--
``(i) shall notify the center of the
determination of the Administrator; and
``(ii) not later than 180 days after the
date of the notification, may terminate the
provision of funds to the center.
``(7) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $8,000,000 for
each of fiscal years 2003 through 2007, to be distributed to
the centers in accordance with this subsection.''.
(b) Environmental Finance Centers.--Section 1420(g) of the Safe
Drinking Water Act (42 U.S.C. 300g-9(g)) is amended by striking
paragraph (4) and inserting the following:
``(4) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $8,000,000 for
each of fiscal years 2003 through 2007.''.
SEC. 206. AUTHORIZATION OF APPROPRIATIONS.
Section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j-12) is
amended by striking subsection (m) and inserting the following:
``(m) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to carry out this section--
``(A) $1,500,000,000 for fiscal year 2003;
``(B) $2,000,000,000 for each of fiscal years 2004
and 2005;
``(C) $3,500,000,000 for fiscal year 2006; and
``(D) $6,000,000,000 for fiscal year 2007.
``(2) Availability.--Amounts made available under this
subsection shall remain available until expended.
``(3) Reservation for needs surveys.--Of the amount made
available under paragraph (1) to carry out this section for a
fiscal year, the Administrator may reserve not more than
$500,000 per year to pay the costs of conducting needs surveys
under subsection (h).''.
TITLE III--INNOVATIONS IN FUND AND WATER QUALITY MANAGEMENT
SEC. 301. TRANSFER OF FUNDS.
(a) Water Pollution Control Fund.--Section 603 of the Federal Water
Pollution Control Act (33 U.S.C. 1383) (as amended by section 103(e))
is amended by adding at the end the following:
``(o) Transfer of Funds.--
``(1) In general.--A Governor of the State may--
``(A) reserve up to 33 percent of a capitalization
grant made under this title and add the funds reserved
to any funds provided to the State under section 1452
of the Safe Drinking Water Act (42 U.S.C. 300j-12); and
``(B) reserve in any year an amount up to the
amount that may be reserved under subparagraph (A) for
that year from capitalization grants made under section
1452 of that Act (42 U.S.C. 300j-12) and add the
reserved funds to any funds provided to the State under
this title.
``(2) State match.--Funds reserved under this subsection
shall not be considered to be a State contribution for a
capitalization grant required under this title or section
1452(b) of the Safe Drinking Water Act (42 U.S.C. 300j-
12(b)).''.
(b) Safe Drinking Water Fund.--Section 1452(g) of the Safe Drinking
Water Act (42 U.S.C. 300j-12(g)) (as amended by section 202(c)) is
amended--
(1) in paragraph (2), by striking ``4'' and inserting
``5''; and
(2) by adding at the end the following:
``(6) Transfer of funds.--
``(A) In general.--A Governor of the State may--
``(i) reserve up to 33 percent of a
capitalization grant made under this section
and add the funds reserved to any funds
provided to the State under section 601 of the
Federal Water Pollution Control Act (33 U.S.C.
1381); and
``(ii) reserve in any year an amount up to
the amount that may be reserved under clause
(i) for that year from capitalization grants
made under section 601 of that Act (33 U.S.C.
1381) and add the reserved funds to any funds
provided to the State under this section.
``(B) State match.--Funds reserved under this
paragraph shall not be considered to be a State match
of a capitalization grant required under this section
or section 602(b) of the Federal Water Pollution
Control Act (33 U.S.C. 1382(b)).''.
SEC. 302. DEMONSTRATION PROGRAM FOR WATER QUALITY ENHANCEMENT AND
MANAGEMENT.
(a) Establishment.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, the Administrator of the Environmental
Protection Agency (referred to in this section as the
``Administrator'') shall establish a nationwide demonstration
grant program to--
(A) promote innovations in technology and
alternative approaches to water quality management or
water supply (including water quality trading); and
(B) reduce costs to municipalities incurred in
complying with--
(i) the Federal Water Pollution Control Act
(33 U.S.C. 1251 et seq.); and
(ii) the Safe Drinking Water Act (42 U.S.C.
300f et seq.).
(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 agency of the State having
jurisdiction over water quality or water supply
matters; and
(ii) interested stakeholders;
(B) describes water impacts specific to urban and
rural areas;
(C) includes a strategy under which the
municipality, through participation in the
demonstration program, could effectively--
(i) address those problems; and
(ii) achieve the same water quality goals
as those goals that--
(I) could be achieved using more
traditional methods; or
(II) are mandated under--
(aa) the Federal Water
Pollution Control Act (33
U.S.C. 1251 et seq.); and
(bb) the Safe Drinking
Water Act (42 U.S.C. 300f et
seq.); 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 provide grants to municipalities
to be used to carry out projects relating to such matters as--
(A) excessive nutrient growth;
(B) urban or rural pressure;
(C) a lack of an alternative water supply;
(D) difficulties in water conservation and
efficiency;
(E) a lack of support tools and technologies to
rehabilitate and replace water supplies;
(F) a lack of monitoring and data analysis for
distribution systems;
(G) nonpoint source water pollution;
(H) sanitary sewer overflows;
(I) combined sewer overflows;
(J) problems with naturally-occurring constituents
of concern; or
(K) problems with erosion and excess sediment.
(3) Responsibilities of administrator.--In providing grants
to municipalities under this subsection, the Administrator
shall--
(A) ensure, to the maximum extent practicable--
(i) the inclusion in the demonstration
program of a variety of projects with respect
to--
(I) geographic distribution;
(II) innovative technologies used
for the projects; and
(III) 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--
(i) address multiple problems; and
(ii) 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.--
(A) In general.--Except as provided in subparagraph
(B), the non-Federal share of the cost of a project
carried out under this section shall be at least 20
percent.
(B) Waiver.--The Administrator may reduce or
eliminate the non-Federal share of the cost of a
project for reasons of affordability.
(c) Reports.--
(1) Reports from grant recipients.--A recipient of a grant
under this section shall submit to the Administrator, on the
date of completion of a project using funds from the grant, and
on the date that is 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 Act, and every 2 years thereafter,
the Administrator shall compile, and submit to the Committee on
Environment and Public Works of the Senate, and the Committee
on Transportation and Infrastructure and the Committee on
Energy and Commerce of the House of Representatives, 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.
SEC. 303. RATE STUDY.
(a) In General.--Not later than 2 years after the date of enactment
of this Act, the National Academy of Sciences shall complete a study of
the public water system and treatment works rate structures for
communities in the United States selected by the Academy in accordance
with subsection (c).
(b) Required Elements.--
(1) Rates.--The study shall, at a minimum--
(A) determine whether public water system and
treatment works rates for communities included in the
study adequately address the cost of service, including
funds necessary to replace infrastructure;
(B) identify the manner in which the public water
system and treatment works rates were determined;
(C) determine the manner in which cost of service
is measured;
(D)(i) survey existing practices for establishing
public water system and treatment works rates; and
(ii) identify any commonalities in factors and
processes used to evaluate rate systems and make
related decisions;
(E) describe best industry practices for public
water systems and treatment works for use in
establishing a rate structure that--
(i) adequately addresses the true cost of
service; and
(ii) takes into consideration the needs of
disadvantaged individuals and communities; and
(F) assess how communities use incentive-based
fees--
(i) to reduce the quantity of water used by
ratepayers; or
(ii) to reduce the quantity of pollutants
or contaminants in sewage or stormwater
generated by ratepayers.
(2) Affordability.--The study shall, at a minimum--
(A) identify existing standards for affordability;
(B) determine the manner in which those standards
are determined and defined;
(C) determine the manner in which affordability
varies with respect to communities of different sizes
and in different regions; and
(D) determine the extent to which affordability
affects the decision of a community to increase public
water system and treatment works rates (including the
decision relating to the percentage by which those
rates should be increased).
(3) Disadvantaged communities.--The study shall, at a
minimum--
(A) survey a cross-section of States representing
different sizes, demographics, and geographical
regions;
(B) describe, for each State described in
subparagraph (A), the definition of ``disadvantaged
community'' used in the State in carrying out projects
and activities under the Safe Drinking Water Act (42
U.S.C. 300f et seq.);
(C) review other means of identifying the meaning
of the term ``disadvantaged'', as that term applies to
communities;
(D) determine which factors and characteristics are
required for a community to be considered
``disadvantaged''; and
(E) evaluate the degree to which factors such as a
reduction in the tax base over a period of time, a
reduction in population, the loss of an industrial
base, and the existence of areas of concentrated
poverty are taken into account in determining whether a
community is a disadvantaged community.
(c) Selection of Communities.--The National Academy of Sciences
shall select communities, the public water system and treatment works
rate structures of which are to be studied under this section, that
include a cross section of communities representing various
populations, income levels, demographics, and geographical regions.
(d) Report to Congress.--On completion of the study under this
section, the National Academy of Sciences shall submit to Congress a
report that describes the results of the study.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $2,000,000 for each of fiscal
years 2003 and 2004.
SEC. 304. STATE LOAN FUND REVIEW PROCESS.
As soon as practicable after the date of enactment of this Act, the
Administrator of the Environmental Protection Agency shall--
(1) consult with States, treatment works, and public water
systems to identify ways to streamline and improve the
application and review process for the provision of assistance
from--
(A) the State water pollution revolving fund under
title VI of the Federal Water Pollution Control Act (33
U.S.C. 1381 et seq.); and
(B) the State drinking water revolving fund under
section 1452 of the Safe Drinking Water Act (42 U.S.C.
300j-12); and
(2) submit to Congress a report that, based on the
information identified under paragraph (1), contains
recommendations for streamlining and improving the application
and review process described in that paragraph.
SEC. 305. EFFECTS ON POLICIES AND RIGHTS.
(a) In General.--Nothing in this Act--
(1) impairs or otherwise affects in any way, any right or
jurisdiction of any State with respect to the water (including
boundary water) of the State;
(2) supersedes, abrogates, or otherwise impairs the
authority of any State to allocate quantities of water within
areas under the jurisdiction of the State; or
(3) supersedes or abrogates any right to any quantity or
use of water that has been established by any State.
(b) State Water Rights.--Notwithstanding any other provision of
law, with respect to the implementation of this Act and amendments made
by this Act--
(1) the management of and control over water in a State
shall be subject to and in accordance with the laws of the
State in which the water is located;
(2) Congress delegates to each State the authority to
regulate water of the State, including the authority to
regulate water in interstate commerce (including regulation of
usufructuary rights, trade, and transportation); and
(3) the United States, and any agency or officer on behalf
of the United States, may exercise management and control over
water in a State only in compliance with the laws of the State
in which the water is located.
TITLE IV--WATER RESOURCE PLANNING
SEC. 401. FINDINGS.
Congress finds that--
(1) there is ever-growing demand and competition for water
from many segments of society, including municipal users,
agriculture, and critical ecosystems;
(2) population growth in the United States will continue to
place increasing pressure on the water supply of the United
States;
(3) because sources of water do not follow political
boundaries--
(A) the availability of water is increasingly
becoming a regional issue; and
(B) it is more difficult to take action--
(i) to monitor the state of water
resources;
(ii) to prepare for water shortages or
surpluses;
(iii) to prevent the occurrence of water
shortages or surpluses; or
(iv) to respond to emergency situations;
(4)(A) water shortages or surpluses can--
(i) impact public health;
(ii) limit economic and agricultural development;
and
(iii) damage ecosystems; and
(B) the United States often suffers serious economic and
environmental losses from water shortages or surpluses;
(5) there is no national policy to ensure an integrated and
coordinated Federal strategy to monitor the state of the water
resources of the United States;
(6) periodic assessments of the water resources of the
United States are necessary; and
(7)(A) Congress has recognized and deferred to the States
the authority to allocate and administer water within the
borders of the States;
(B) the courts have confirmed that this is an appropriate
role for the States; and
(C) Congress should continue to defer to States on laws and
regulations governing the appropriation, distribution, and
control or use of water.
SEC. 402. DEFINITION OF SECRETARY.
In this title, the term ``Secretary'' means the Secretary of the
Interior, acting through the Director of the United States Geological
Survey.
SEC. 403. ACTIONS.
(a) Assessment.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act and periodically thereafter, the
Secretary shall conduct an assessment of the state of water
resources in the United States.
(2) Components.--An assessment under paragraph (1) shall,
at a minimum, determine the status and trends of--
(A) fresh water in waterways and reservoirs;
(B)(i) groundwater; and
(ii) fresh water stored in aquifers; and
(C) withdrawals of fresh water from waterways and
aquifers.
(3) Report.--On completion of each assessment under
paragraph (1), the Secretary shall submit to Congress a report
that describes the results of the assessment.
(b) Water Resource Research Priorities.--
(1) In general.--The Secretary shall coordinate a process
among Federal agencies (including the Environmental Protection
Agency) to develop and publish, not later than 1 year after the
date of enactment of this Act, a list of water resource
research priorities that focuses on--
(A) monitoring; and
(B) improving the quality of the information
available to State, tribal, and local water resource
managers.
(2) Use of list.--The list published under paragraph (1)
shall be used by Federal agencies as a guide in making
decisions on the allocation of water research funding.
(c) Information Delivery System.--
(1) In general.--The Secretary shall coordinate a process
to develop an effective information delivery system to
communicate information described in paragraph (2) to--
(A) decisionmakers at the Federal, regional, State,
tribal, and local levels;
(B) the private sector; and
(C) the general public.
(2) Types of information.--The information referred to in
paragraph (1) may include--
(A) the results of the national water resource
assessment;
(B) a summary of the Federal water research
priorities developed under subsection (b);
(C) near real-time data and other information on
water shortages and surpluses;
(D) planning models for water shortages or
surpluses (at various levels, such as State, river
basin, and watershed levels);
(E) streamlined procedures for States and
localities to interact with and obtain assistance from
Federal agencies that perform water resource functions;
and
(F) other materials, as determined by the
Secretary.
SEC. 404. REPORT TO CONGRESS.
Not later than 2 years after the date of enactment of this Act, and
every 2 years thereafter through fiscal year 2007, the Secretary shall
submit to Congress a report on the implementation of this title.
SEC. 405. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to the Secretary to carry
out this title $3,000,000 for each of fiscal years 2003 through 2007,
to remain available until expended.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S7470-7471)
Read twice and referred to the Committee on Environment and Public Works.
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