Water Quality Protection and Job Creation Act of 2013 - Amends the Federal Water Pollution Control Act (commonly known as the Clean Water Act [CWA]) to authorize the Administrator of the Environmental Protection Agency (EPA) to make grants to nonprofit organizations to provide: (1) technical assistance to rural and small municipalities and tribal governments for planning, developing, and financing eligible state water pollution control revolving fund projects; and (2) technical assistance and training to enable rural, small, and tribal publicly owned treatment works and decentralized wastewater systems to protect water quality and comply with the CWA.
Authorizes annual appropriations for FY2014-FY2018 for: (1) grants to states for administering programs for the prevention, reduction, and elimination of pollution; (2) watershed pilot projects (currently called wet weather watershed pilot projects); (3) grants to states for water pollution control revolving funds; (4) a pilot program for alternative water source projects; and (5) sewer overflow control grants.
Expands the types of watershed pilot projects eligible for technical assistance and grants. Revises: (1) the eligibility requirements for grants for sewage collection systems; and (2) provisions concerning state water pollution control revolving funds, including by expanding the types of projects eligible for assistance. Requires states to: (1) establish affordability criteria to identify municipalities that would experience a significant hardship raising revenue for state water pollution control revolving fund projects, (2) establish a list of such projects that prioritizes water quality improvement projects for FY2015 and thereafter, and (3) provide financial assistance to only projects on such list.
Requires the Administrator to report annually on the performance of the projects and activities carried out with assistance made available by a state water pollution control revolving fund.
Prohibits state water pollution control revolving funds from being used for a project for the construction of treatment works unless the steel, iron, and manufactured goods used in such project are produced in the United States, with specified exceptions. Requires the Administrator to prohibit the use of steel, iron, and manufactured goods produced in a foreign country in a project funded with amounts made available from such fund if such country is in violation of the terms of an agreement with the United States by discriminating against such goods that are produced in the United States.
Authorizes the Administrator to waive the requirement that a state deposit an amount equal to 20% of the state's annual capitalization grant into the state's water pollution control revolving fund if the Administrator determines that the state is experiencing economic hardship and that providing such a deposit would adversely impact the state's ability to restore and maintain the chemical, physical, and biological integrity of its waters.
Revises provisions concerning: (1) state water pollution control revolving fund amounts reserved for Indian tribes, and (2) the use of such amounts.
Changes the tonnage duty (currently, a tax) on specified vessels entering or returning to a U.S. port.
Amends the Internal Revenue Code to establish the Clean Water Trust Fund for: (1) capitalization grants to states for water pollution control revolving funds; (2) grants to states for water pollution control programs; (3) grants for research for the prevention, reduction, and elimination of water pollution; and (4) direct loans or guaranteeing obligations authorized under provisions of this Act entitled the Water Pollution Control Investment Act.
Water Pollution Control Investment Act - Authorizes the Administrator to: (1) make a direct loan to a state infrastructure financing authority for use in the same manner as a capitalization grant made under the CWA for state water pollution control revolving funds, and (2) guarantee obligations for construction of large water infrastructure projects.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1877 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 1877
To amend the Federal Water Pollution Control Act to authorize
appropriations for State water pollution control revolving funds, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 8, 2013
Mr. Bishop of New York (for himself, Mr. Rahall, Mr. Young of Alaska,
Ms. Norton, Mr. King of New York, Ms. Esty, Mrs. Napolitano, Ms. Eddie
Bernice Johnson of Texas, Mr. Garamendi, Mr. Cummings, Mr. Nadler, Mr.
Capuano, Ms. Brown of Florida, Mr. Larsen of Washington, Mr. Michaud,
Ms. Edwards, Ms. Frankel of Florida, Mr. DeFazio, Mr. Nolan, Mrs.
Kirkpatrick, Mr. Sean Patrick Maloney of New York, Mr. Cohen, Mr.
Sires, Ms. Hahn, Mr. Lipinski, Ms. Titus, Mr. Walz, and Mrs. Bustos)
introduced the following bill; which was referred to the Committee on
Transportation and Infrastructure, and in addition to the Committee on
Ways and Means, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Federal Water Pollution Control Act to authorize
appropriations for State water pollution control revolving funds, and
for other purposes.
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) In General.--This Act may be cited as the ``Water Quality
Protection and Job Creation Act of 2013''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. Amendment of Federal Water Pollution Control Act.
TITLE I--WATER QUALITY FINANCING
Subtitle A--Technical and Management Assistance
Sec. 1101. Technical assistance.
Sec. 1102. State management assistance.
Sec. 1103. Watershed pilot projects.
Subtitle B--Construction of Treatment Works
Sec. 1201. Sewage collection systems.
Sec. 1202. Treatment works defined.
Subtitle C--State Water Pollution Control Revolving Funds
Sec. 1301. General authority for capitalization grants.
Sec. 1302. Capitalization grant agreements.
Sec. 1303. Water pollution control revolving loan funds.
Sec. 1304. Allotment of funds.
Sec. 1305. Intended use plan.
Sec. 1306. Annual reports.
Sec. 1307. Technical assistance; requirements for use of American
materials.
Sec. 1308. Economic hardship waiver.
Sec. 1309. Authorization of appropriations.
Subtitle D--General Provisions
Sec. 1401. Definition of treatment works.
Sec. 1402. Funding for Indian programs.
Subtitle E--Tonnage Duties
Sec. 1501. Tonnage duties.
TITLE II--ALTERNATIVE WATER SOURCE PROJECTS
Sec. 2001. Pilot program for alternative water source projects.
TITLE III--SEWER OVERFLOW CONTROL GRANTS
Sec. 3001. Sewer overflow control grants.
TITLE IV--CLEAN WATER TRUST FUND
Sec. 4001. Establishment of Clean Water Trust Fund.
Sec. 4002. Allocation of funds.
Sec. 4003. Revenues for Clean Water Trust Fund.
TITLE V--WATER POLLUTION CONTROL INVESTMENT
Sec. 5001. Short title.
Sec. 5002. Definitions.
Sec. 5003. Direct loans.
Sec. 5004. Guarantees.
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.).
TITLE I--WATER QUALITY FINANCING
Subtitle A--Technical and Management Assistance
SEC. 1101. 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--
``(A) to provide technical assistance to rural and
small municipalities and tribal governments for the
purpose of assisting, in consultation with the State in
which the assistance is provided, such municipalities
and tribal governments in the planning, developing, and
acquisition of financing for eligible projects
described in section 603(c);
``(B) to provide technical assistance and training
for rural, small, and tribal 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
``(C) to disseminate information to rural, small,
and tribal 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: ``; and (7) not to exceed $100,000,000 for each of
fiscal years 2014 through 2018 for carrying out subsections
(b)(3), (b)(8), and (g), 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 subsection (b)(8)''.
(c) Small Flows Clearinghouse.--Section 104(q)(4) (33 U.S.C.
1254(q)(4)) is amended--
(1) in the first sentence by striking ``$1,000,000'' and
inserting ``$3,000,000''; and
(2) in the second sentence by striking ``1986'' and
inserting ``2018''.
SEC. 1102. STATE MANAGEMENT ASSISTANCE.
(a) Authorization of Appropriations.--Section 106(a) (33 U.S.C.
1256(a)) is amended--
(1) by striking ``and'' at the end of paragraph (1);
(2) by striking the semicolon at the end of paragraph (2)
and inserting ``; and''; and
(3) by inserting after paragraph (2) the following:
``(3) such sums as may be necessary for each of fiscal
years 1991 through 2013, and $300,000,000 for each of fiscal
years 2014 through 2018;''.
(b) Technical Amendment.--Section 106(e) (33 U.S.C. 1256(e)) is
amended by striking ``Beginning in fiscal year 1974 the'' and inserting
``The''.
SEC. 1103. WATERSHED PILOT PROJECTS.
(a) Pilot Projects.--Section 122 (33 U.S.C. 1274) is amended--
(1) in the section heading by striking ``wet weather''; and
(2) in subsection (a)--
(A) in the matter preceding paragraph (1)--
(i) by striking ``for treatment works'' and
inserting ``to a municipality or municipal
entity''; and
(ii) by striking ``of wet weather discharge
control'';
(B) in paragraph (2) by striking ``in reducing such
pollutants'' and all that follows before the period at
the end and inserting ``to manage, reduce, treat, or
reuse municipal stormwater, including low-impact
development technologies and other techniques that
utilize infiltration, evapotranspiration, and reuse of
storm water on site''; and
(C) by adding at the end the following:
``(3) Watershed partnerships.--Efforts of municipalities
and property owners to demonstrate cooperative ways to address
nonpoint sources of pollution to reduce adverse impacts on
water quality.
``(4) Integrated water resource plan.--The development of
an integrated water resource plan for the coordinated
management and protection of surface water, ground water, and
stormwater resources on a watershed or subwatershed basis to
meet the objectives, goals, and policies of this Act.
``(5) Municipality-wide storm water management planning.--
The development of a municipality-wide plan that identifies the
most effective placement of storm water technologies and
management approaches, including green infrastructure, to
reduce water quality impairments from storm water on a
municipality-wide basis.
``(6) Increased resilience of treatment works.--Efforts to
assess future risks and vulnerabilities of publicly owned
treatment works to man-made or natural disasters, including
extreme weather events and sea-level rise, and to carry out
measures, on a system-wide or area-wide basis, to increase the
resiliency of publicly owned treatment works.''.
(b) Authorization of Appropriations.--The first sentence of section
122(c)(1) is amended--
(1) by striking ``and''; and
(2) by striking the period and inserting ``, such sums as
may be necessary for each of fiscal years 2005 through 2013,
and $120,000,000 for each of fiscal years 2014 through 2018''.
(c) Report to Congress.--Section 122(d) is amended by striking ``5
years after the date of enactment of this section,'' and inserting
``October 1, 2015,''.
Subtitle B--Construction of Treatment Works
SEC. 1201. SEWAGE COLLECTION SYSTEMS.
Section 211 (33 U.S.C. 1291) is amended--
(1) by striking the section heading and all that follows
through ``(a) No'' and inserting the following:
``SEC. 211. SEWAGE COLLECTION SYSTEMS.
``(a) In General.--No'';
(2) in subsection (b) by inserting ``Population Density.--
'' after ``(b)''; and
(3) by striking subsection (c) and inserting the following:
``(c) Exceptions.--
``(1) Replacement and major rehabilitation.--
Notwithstanding the requirement of subsection (a)(1) concerning
the existence of a collection system as a condition of
eligibility, a project for replacement or major rehabilitation
of a collection system existing on January 1, 2007, shall be
eligible for a grant under this title if the project otherwise
meets the requirements of subsection (a)(1) and meets the
requirement of paragraph (3).
``(2) New systems.--Notwithstanding the requirement of
subsection (a)(2) concerning the existence of a community as a
condition of eligibility, a project for a new collection system
to serve a community existing on January 1, 2007, shall be
eligible for a grant under this title if the project otherwise
meets the requirements of subsection (a)(2) and meets the
requirement of paragraph (3).
``(3) Requirement.--A project meets the requirement of this
paragraph if the purpose of the project is to accomplish the
objectives, goals, and policies of this Act by addressing an
adverse environmental condition existing on the date of
enactment of this paragraph.''.
SEC. 1202. TREATMENT WORKS DEFINED.
Section 212(2)(A) (33 U.S.C. 1292(2)(A)) is amended--
(1) by striking ``any works, including site'';
(2) by striking ``is used for ultimate'' and inserting
``will be used for ultimate''; and
(3) by inserting before the period at the end the
following: ``and acquisition of other lands, and interests in
lands, which are necessary for construction''.
Subtitle C--State Water Pollution Control Revolving Funds
SEC. 1301. GENERAL AUTHORITY FOR CAPITALIZATION GRANTS.
Section 601(a) (33 U.S.C. 1381(a)) is amended by striking ``for
providing assistance'' and all that follows through the period at the
end and inserting the following: ``to accomplish the objectives, goals,
and policies of this Act by providing assistance for projects and
activities identified in section 603(c).''.
SEC. 1302. CAPITALIZATION GRANT AGREEMENTS.
(a) Reporting Infrastructure Assets.--Section 602(b)(9) (33 U.S.C.
1382(b)(9)) is amended by striking ``standards'' and inserting
``standards, including standards relating to the reporting of
infrastructure assets''.
(b) Additional Requirements.--Section 602(b) (33 U.S.C. 1382(b)) is
amended--
(1) in paragraph (6)--
(A) by striking ``before fiscal year 1995'';
(B) by striking ``funds directly made available by
capitalization grants under this title and section
205(m) of this Act'' and inserting ``assistance made
available by a State water pollution control revolving
fund as authorized under this title, or with assistance
made available under section 205(m), or both,''; and
(C) by striking ``201(b)'' and all that follows
through ``513'' and inserting ``211 and 511(c)(1)'';
(2) by striking ``and'' at the end of paragraph (9);
(3) by striking the period at the end of paragraph (10) and
inserting a semicolon; and
(4) by adding at the end the following:
``(11) the State will establish, maintain, invest, and
credit the fund with repayments, such that the fund balance
will be available in perpetuity for providing financial
assistance in accordance with this title;
``(12) any fees charged by the State to recipients of
assistance that are considered program income will be used for
the purpose of financing the cost of administering the fund or
financing projects or activities eligible for assistance from
the fund;
``(13) beginning in fiscal year 2014, the State will
include as a condition of providing assistance to a
municipality or intermunicipal, interstate, or State agency
that the recipient of such assistance certify, in a manner
determined by the Governor of the State, that the recipient--
``(A) has studied and evaluated the cost and
effectiveness of the processes, materials, techniques,
and technologies for carrying out the proposed project
or activity for which assistance is sought under this
title, and has selected, to the extent practicable, a
project or activity that maximizes the potential for
efficient water use, reuse, and conservation, and
energy conservation, taking into account the cost of
constructing the project or activity, the cost of
operating and maintaining the project or activity over
its life, and the cost of replacing the project or
activity; and
``(B) has considered, to the maximum extent
practicable and as determined appropriate by the
recipient, the costs and effectiveness of other design,
management, and financing approaches for carrying out a
project or activity for which assistance is sought
under this title, taking into account the cost of
constructing the project or activity, the cost of
operating and maintaining the project or activity over
its life, and the cost of replacing the project or
activity;
``(14) the State will use at least 15 percent of the amount
of each capitalization grant received by the State under this
title after September 30, 2014, to provide assistance to
municipalities of fewer than 10,000 individuals that meet the
affordability criteria established by the State under section
603(i)(2) for projects or activities included on the State's
priority list established under section 603(g), to the extent
that there are sufficient applications for such assistance;
``(15) a contract to be carried out using funds directly
made available by a capitalization grant under this title for
program management, construction management, feasibility
studies, preliminary engineering, design, engineering,
surveying, mapping, or architectural related services shall be
negotiated in the same manner as a contract for architectural
and engineering services is negotiated under chapter 11 of
title 40, United States Code, or an equivalent State
qualifications-based requirement (as determined by the Governor
of the State); and
``(16) the requirements of section 513 will apply to the
construction of treatment works carried out in whole or in part
with assistance made available by a State water pollution
control revolving fund as authorized under this title, or with
assistance made available under section 205(m), or both, in the
same manner as treatment works for which grants are made under
this Act.''.
SEC. 1303. WATER POLLUTION CONTROL REVOLVING LOAN FUNDS.
(a) Projects and Activities Eligible for Assistance.--Section
603(c) (33 U.S.C. 1383(c)) is amended to read as follows:
``(c) Projects and Activities Eligible for Assistance.--The amounts
of funds available to each State water pollution control revolving fund
shall be used only for providing financial assistance--
``(1) to any municipality or intermunicipal, interstate, or
State agency for construction of publicly owned treatment
works;
``(2) for the implementation of a management program
established under section 319;
``(3) for development and implementation of a conservation
and management plan under section 320;
``(4) for repair or replacement of decentralized wastewater
treatment systems that treat domestic sewage;
``(5) for measures to manage, reduce, treat, or reuse
municipal stormwater;
``(6) to any municipality or intermunicipal, interstate, or
State agency for measures to reduce the demand for publicly
owned treatment works capacity through water conservation,
efficiency, or reuse;
``(7) for the development and implementation of watershed
projects meeting the criteria set forth in section 122; and
``(8) to any municipality or intermunicipal, interstate, or
State agency for measures to reduce the energy consumption
needs for publicly owned treatment works, including the
implementation of energy-efficient or renewable-energy
generation technologies.''.
(b) Extended Repayment Period.--Section 603(d)(1) (33 U.S.C.
1383(d)(1)) is amended--
(1) in subparagraph (A) by striking ``20 years'' and
inserting ``the lesser of 30 years or the design 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 ``upon the
expiration of the term of the loan''.
(c) Fiscal Sustainability Plan.--Section 603(d)(1) (33 U.S.C.
1383(d)(1)) is further amended--
(1) by striking ``and'' at the end of subparagraph (C);
(2) by inserting ``and'' at the end of subparagraph (D);
and
(3) by adding at the end the following:
``(E) for any portion of a treatment works proposed
for repair, replacement, or expansion, and eligible for
assistance under section 603(c)(1), the recipient of a
loan will develop and implement a fiscal sustainability
plan that includes--
``(i) an inventory of critical assets that
are a part of that portion of the treatment
works;
``(ii) an evaluation of the condition and
performance of inventoried assets or asset
groupings;
``(iii) a certification that the recipient
has evaluated and will be implementing water
and energy conservation efforts as part of the
plan; and
``(iv) a plan for maintaining, repairing,
and, as necessary, replacing that portion of
the treatment works and a plan for funding such
activities;''.
(d) Administrative Expenses.--Section 603(d)(7) (33 U.S.C.
1383(d)(7)) is amended by inserting before the period at the end the
following: ``, $400,000 per year, or \1/5\ percent per year of the
current valuation of the fund, whichever amount is greatest, plus the
amount of any fees collected by the State for such purpose regardless
of the source''.
(e) 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 a semicolon; and
(3) by adding at the end the following:
``(8) to provide grants to owners and operators of
treatment works that serve a population of 10,000 or fewer for
obtaining technical and planning assistance and assistance in
financial management, user fee analysis, budgeting, capital
improvement planning, facility operation and maintenance,
equipment replacement, repair schedules, and other activities
to improve wastewater treatment plant management and
operations, except that the total amount provided by the State
in grants under this paragraph for a fiscal year may not exceed
one percent of the total amount of assistance provided by the
State from the fund in the preceding fiscal year, or 2 percent
of the total amount received by the State in capitalization
grants under this title in the preceding fiscal year, whichever
amount is greatest; and
``(9) to provide grants to owners and operators of
treatment works for conducting an assessment of the energy and
water consumption of the treatment works, and evaluating
potential opportunities for energy and water conservation
through facility operation and maintenance, equipment
replacement, and projects or activities that promote the
efficient use of energy and water by the treatment works,
except that the total amount provided by the State in grants
under this paragraph for a fiscal year may not exceed one
percent of the total amount of assistance provided by the State
from the fund in the preceding fiscal year, or 2 percent of the
total amount received by the State in capitalization grants
under this title in the preceding fiscal year, whichever amount
is greatest.''.
(f) 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 to a municipality or intermunicipal, interstate, or
State agency under subsection (d), the State may provide
additional subsidization, including forgiveness of principal
and negative interest loans--
``(A) to benefit a municipality that--
``(i) meets the State's affordability
criteria established under paragraph (2); or
``(ii) does not meet the State's
affordability criteria if the recipient--
``(I) seeks additional
subsidization to benefit individual
ratepayers in the residential user rate
class;
``(II) demonstrates to the State
that such ratepayers will experience a
significant hardship from the increase
in rates necessary to finance the
project or activity for which
assistance is sought; and
``(III) ensures, as part of an
assistance agreement between the State
and the recipient, that the additional
subsidization provided under this
paragraph is directed through a user
charge rate system (or other
appropriate method) to such ratepayers;
or
``(B) to implement a process, material, technique,
or technology to address water-efficiency goals,
address energy-efficiency goals, mitigate stormwater
runoff, or encourage environmentally sustainable
project planning, design, and construction.
``(2) Affordability criteria.--
``(A) Establishment.--On or before September 30,
2014, and after providing notice and an opportunity for
public comment, a State shall establish affordability
criteria to assist in identifying municipalities that
would experience a significant hardship raising the
revenue necessary to finance a project or activity
eligible for assistance under section 603(c)(1) if
additional subsidization is not provided. Such criteria
shall be based on income data, population trends, and
other data determined relevant by the State, including
whether the project or activity is to be carried out in
an economically distressed area, as described in
section 301 of the Public Works and Economic
Development Act of 1965 (42 U.S.C. 3161).
``(B) Existing criteria.--If a State has previously
established, after providing notice and an opportunity
for public comment, affordability criteria that meet
the requirements of subparagraph (A), the State may use
the criteria for the purposes of this subsection. For
purposes of this Act, any such criteria shall be
treated as affordability criteria established under
this paragraph.
``(C) Information to assist states.--The
Administrator may publish information to assist States
in establishing affordability criteria under
subparagraph (A).
``(3) Priority.--A State may give priority to a recipient
for a project or activity eligible for funding under section
603(c)(1) if the recipient meets the State's affordability
criteria.
``(4) Set-aside.--
``(A) In general.--In any fiscal year in which the
Administrator has available for obligation more than
$1,000,000,000 for the purposes of this title, a State
shall provide additional subsidization under this
subsection in the amount specified in subparagraph (B)
to eligible entities described in paragraph (1) for
projects and activities identified in the State's
intended use plan prepared under section 606(c) to the
extent that there are sufficient applications for such
assistance.
``(B) Amount.--In a fiscal year described in
subparagraph (A), a State shall set aside for purposes
of subparagraph (A) an amount not less than 25 percent
of the difference between--
``(i) the total amount that would have been
allotted to the State under section 604 for
such fiscal year if the amount available to the
Administrator for obligation under this title
for such fiscal year had been equal to
$1,000,000,000; and
``(ii) the total amount allotted to the
State under section 604 for such fiscal year.
``(5) Limitation.--The total amount of additional
subsidization provided under this subsection by a State may not
exceed 30 percent of the total amount of capitalization grants
received by the State under this title in fiscal years
beginning after September 30, 2013.''.
SEC. 1304. ALLOTMENT OF FUNDS.
(a) In General.--Section 604(a) (33 U.S.C. 1384(a)) is amended to
read as follows:
``(a) Allotments.--
``(1) Fiscal years 2014 and 2015.--Sums appropriated to
carry out this title for each of fiscal years 2014 and 2015
shall be allotted by the Administrator in accordance with the
formula used to allot sums appropriated to carry out this title
for fiscal year 2013.
``(2) Fiscal year 2016 and thereafter.--Sums appropriated
to carry out this title for fiscal year 2016 and each fiscal
year thereafter shall be allotted by the Administrator as
follows:
``(A) Amounts that do not exceed $1,350,000,000
shall be allotted in accordance with the formula
described in paragraph (1).
``(B) Amounts that exceed $1,350,000,000 shall be
allotted in accordance with the formula developed by
the Administrator under subsection (d).''.
(b) Planning Assistance.--Section 604(b) (33 U.S.C. 1384(b)) is
amended by striking ``1 percent'' and inserting ``2 percent''.
(c) Formula.--Section 604 (33 U.S.C. 1384) is amended by adding at
the end the following:
``(d) Formula Based on Water Quality Needs.--Not later than
September 30, 2015, and after providing notice and an opportunity for
public comment, the Administrator shall publish an allotment formula
based on water quality needs in accordance with the most recent survey
of needs developed by the Administrator under section 516(b) and any
other information the Administrator considers appropriate.''.
SEC. 1305. INTENDED USE PLAN.
(a) Integrated Priority List.--Section 603(g) (33 U.S.C. 1383(g))
is amended to read as follows:
``(g) Priority List.--
``(1) In general.--For fiscal year 2015 and each fiscal
year thereafter, a State shall establish or update a list of
projects and activities for which assistance is sought from the
State's water pollution control revolving fund. Such projects
and activities shall be listed in priority order based on the
methodology established under paragraph (2). The State may
provide financial assistance from the State's water pollution
control revolving fund only with respect to a project or
activity included on such list. In the case of projects and
activities eligible for assistance under section 603(c)(2), the
State may include a category or subcategory of nonpoint sources
of pollution on such list in lieu of a specific project or
activity.
``(2) Methodology.--
``(A) In general.--Not later than 1 year after the
date of enactment of this paragraph, and after
providing notice and opportunity for public comment,
each State (acting through the State's water quality
management agency and other appropriate agencies of the
State) shall establish a methodology for developing a
priority list under paragraph (1).
``(B) Priority for projects and activities that
achieve greatest water quality improvement.--In
developing the methodology, the State shall seek to
achieve the greatest degree of water quality
improvement, taking into consideration the requirements
of section 602(b)(5) and section 603(i)(3), whether
such water quality improvements would be realized
without assistance under this title, and whether the
proposed projects and activities would address water
quality impairments associated with existing treatment
works.
``(C) Considerations in selecting projects and
activities.--In determining which projects and
activities will achieve the greatest degree of water
quality improvement, the State shall consider--
``(i) information developed by the State
under sections 303(d) and 305(b);
``(ii) the State's continuing planning
process developed under section 303(e);
``(iii) the State's management program
developed under section 319; and
``(iv) conservation and management plans
developed under section 320.
``(D) Nonpoint sources.--For categories or
subcategories of nonpoint sources of pollution that a
State may include on its priority list under paragraph
(1), the State shall consider the cumulative water
quality improvements associated with projects or
activities in such categories or subcategories.
``(E) Existing methodologies.--If a State has
previously developed, after providing notice and an
opportunity for public comment, a methodology that
meets the requirements of this paragraph, the State may
use the methodology for the purposes of this
subsection.''.
(b) Intended Use Plan.--Section 606(c) (33 U.S.C. 1386(c)) is
amended--
(1) in the matter preceding paragraph (1) by striking
``each State shall annually prepare'' and inserting ``each
State (acting through the State's water quality management
agency and other appropriate agencies of the State) shall
annually prepare and publish'';
(2) by striking paragraph (1) and inserting the following:
``(1) the State's priority list developed under section
603(g);'';
(3) in paragraph (4)--
(A) by striking ``and (6)'' and inserting ``(6),
(15), and (17)''; and
(B) by striking ``and'' at the end;
(4) by striking the period at the end of paragraph (5) and
inserting ``; and''; and
(5) by adding at the end the following:
``(6) if the State does not fund projects and activities in
the order of the priority established under section 603(g), an
explanation of why such a change in order is appropriate.''.
(c) Transitional Provision.--Before completion of a priority list
based on a methodology established under section 603(g) of the Federal
Water Pollution Control Act (as amended by this section), a State shall
continue to comply with the requirements of sections 603(g) and 606(c)
of such Act, as in effect on the day before the date of enactment of
this Act.
SEC. 1306. ANNUAL REPORTS.
Section 606(d) (33 U.S.C. 1386(d)) is amended--
(1) by striking ``(d) Annual Report.--Beginning'' and
inserting the following:
``(d) Annual Reports.--
``(1) State report.--Beginning'';
(2) in paragraph (1) (as so designated) by striking ``loan
amounts,'' and inserting ``loan amounts, the eligible purposes
under section 603(c) for which the assistance has been
provided,''; and
(3) by adding at the end the following:
``(2) Federal report.--The Administrator shall annually
prepare, and make publicly available, a report on the
performance of the projects and activities carried out in whole
or in part with assistance made available by a State water
pollution control revolving fund as authorized under this title
during the previous fiscal year, including--
``(A) the annual and cumulative financial
assistance provided to States under this title;
``(B) the categories and types of such projects and
activities;
``(C) an estimate of the number of jobs created
through carrying out such projects and activities;
``(D) an assessment of the progress made toward
meeting the goals and purposes of this Act through such
projects and activities; and
``(E) any additional information that the
Administrator considers appropriate.''.
SEC. 1307. TECHNICAL ASSISTANCE; REQUIREMENTS FOR USE OF AMERICAN
MATERIALS.
Title VI (33 U.S.C. 1381 et seq.) is amended--
(1) by redesignating section 607 as section 610; and
(2) by inserting after section 606 the following:
``SEC. 607. TECHNICAL ASSISTANCE.
``(a) Simplified Procedures.--Not later than 1 year after the date
of enactment of this section, the Administrator shall assist the States
in establishing simplified procedures for treatment works to obtain
assistance under this title.
``(b) Publication of Manual.--Not later than 2 years after the date
of the enactment of this section, and after providing notice and
opportunity for public comment, the Administrator shall publish a
manual to assist treatment works in obtaining assistance under this
title and publish in the Federal Register notice of the availability of
the manual.
``(c) Compliance Criteria.--At the request of any State, the
Administrator, after providing notice and an opportunity for public
comment, shall assist in the development of criteria for a State to
determine compliance with the conditions of funding assistance
established under sections 602(b)(13) and 603(d)(1)(E).
``SEC. 608. BUY AMERICA.
``(a) In General.--Notwithstanding any other provision of law,
funds made available from a State water pollution control revolving
fund established under this title may not be used for a project for the
construction of treatment works unless the steel, iron, and
manufactured goods used for the project are produced in the United
States.
``(b) Exceptions.--Subsection (a) shall not apply to a project for
the construction of treatment works if the Administrator (in
consultation with the Governor of the State in which the treatment
works will be constructed) makes a finding that--
``(1) the steel, iron, or manufactured goods required for
the project are a de minimis component of the project, as
determined in accordance with regulations to be issued by the
Administrator;
``(2) the steel, iron, or manufactured goods required for
the project are not produced in the United States--
``(A) in sufficient and reasonably available
quantities; or
``(B) to a satisfactory quality; or
``(3) the use of steel, iron, and manufactured goods
produced in the United States for the project will increase the
total cost of the project by more than 25 percent.
``(c) Waiver Requirements.--
``(1) Public notification and opportunity for comment.--
``(A) In general.--At least 30 days before making a
finding under subsection (b), the Administrator shall
provide notice of and an opportunity for public comment
on the finding.
``(B) Notice requirements.--Any notice provided
under this subparagraph shall--
``(i) include a justification for the
proposed finding; and
``(ii) be provided by electronic means,
including on the Internet.
``(2) Detailed justification in federal register.--If the
Administrator makes a finding under subsection (b), the
Administrator shall--
``(A) publish in the Federal Register a detailed
justification for the finding; and
``(B) provide notice of and an opportunity for
public comment on the detailed justification at least
30 days before the finding takes effect.
``(3) Annual report.--Not later than February 1 of each
year beginning after the date of enactment of this section, the
Administrator shall submit to the Committee on Transportation
and Infrastructure of the House of Representatives and the
Committee on Environment and Public Works of the Senate a
report that--
``(A) specifies each project with respect to which
the Administrator made a finding under subsection (b)
during the preceding calendar year; and
``(B) describes the justification for each such
finding.
``(d) State Requirements.--The Administrator may not impose a
limitation or condition on assistance provided under this title that
restricts--
``(1) a State from imposing requirements that are more
stringent than those imposed under this section with respect to
limiting the use of articles, materials, or supplies mined,
produced, or manufactured in foreign countries for projects
carried out with such assistance; or
``(2) any recipient of assistance from a State water
pollution control revolving fund established under this title
from complying with such State requirements.
``(e) Intentional Violations.--Pursuant to procedures established
under subpart 9.4 of chapter 1 of title 48, Code of Federal
Regulations, a person shall be ineligible to receive a contract or
subcontract funded with amounts made available from a State water
pollution control revolving fund established under this title if the
Administrator or a court determines that such person intentionally--
``(1) affixed a label bearing a `Made in America'
inscription, or any inscription with the same meaning, to any
steel, iron, or manufactured goods that--
``(A) were used in a project to which this section
applies; and
``(B) were not produced in the United States; or
``(2) represented that any steel, iron, or manufactured
goods were produced in the United States that--
``(A) were used in projects to which this section
applies; and
``(B) were not produced in the United States.
``(f) Consistency With International Agreements.--
``(1) In general.--This section shall be applied in a
manner that is consistent with United States obligations under
international agreements.
``(2) Treatment of foreign countries in violation of
international agreements.--The Administrator shall prohibit the
use of steel, iron, and manufactured goods produced in a
foreign country in a project funded with amounts made available
from a State water pollution control revolving fund established
under this title, including any project for which the
Administrator has made a finding under subsection (b), if the
Administrator, in consultation with the United States Trade
Representative, determines that the foreign country is in
violation of the terms of an agreement with the United States
by discriminating against steel, iron, or manufactured goods
that are produced in the United States and covered by the
agreement.''.
SEC. 1308. ECONOMIC HARDSHIP WAIVER.
Notwithstanding the requirements of section 602(b)(2) of the
Federal Water Pollution Control Act (33 U.S.C. 1382(b)(2)), for fiscal
years 2014 and 2015, the Administrator of the Environmental Protection
Agency may waive the requirement that a State deposit an amount equal
to 20 percent of the State's annual capitalization grant into the
State's water pollution control revolving fund established under title
VI of that Act if the Administrator determines that the State is
currently experiencing a local, statewide, or regional economic
hardship and that providing such a deposit would adversely impact the
State's ability to restore and maintain the chemical, physical, and
biological integrity of waters located within the State.
SEC. 1309. AUTHORIZATION OF APPROPRIATIONS.
Section 610 (as redesignated by section 1307 of this Act) is
amended by striking paragraphs (1) through (5) and inserting the
following:
``(1) $2,400,000,000 for fiscal year 2014;
``(2) $2,700,000,000 for fiscal year 2015;
``(3) $2,800,000,000 for fiscal year 2016;
``(4) $2,900,000,000 for fiscal year 2017; and
``(5) $3,000,000,000 for fiscal year 2018.''.
Subtitle D--General Provisions
SEC. 1401. DEFINITION OF TREATMENT WORKS.
Section 502 (33 U.S.C. 1362) is amended by adding at the end the
following:
``(26) Treatment works.--The term `treatment works' has the
meaning given that term in section 212.''.
SEC. 1402. FUNDING FOR INDIAN PROGRAMS.
Section 518(c) (33 U.S.C. 1377) is amended--
(1) by striking ``The Administrator'' and inserting the
following:
``(1) Fiscal years 1987-2013.--The Administrator'';
(2) in paragraph (1) (as so designated)--
(A) by inserting ``and ending before October 1,
2013,'' after ``1986,''; and
(B) by striking the second sentence; and
(3) by adding at the end the following:
``(2) Fiscal year 2014 and thereafter.--For fiscal year
2014 and each fiscal year thereafter, the Administrator shall
reserve, before allotments to the States under section 604(a),
not less than 0.5 percent and not more than 2.0 percent of the
funds made available to carry out title VI.
``(3) Use of funds.--Funds reserved under this subsection
shall be available only for grants for projects and activities
eligible for assistance under section 603(c) to serve--
``(A) Indian tribes (as defined in section 518(h));
``(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)).''.
Subtitle E--Tonnage Duties
SEC. 1501. TONNAGE DUTIES.
(a) In General.--Section 60301 of title 46, United States Code, is
amended by striking subsections (a) and (b) and inserting the
following:
``(a) Lower Rate.--
``(1) Imposition of duty.--A duty is imposed at the rate
described in paragraph (2) at each entry in a port of the
United States of--
``(A) a vessel entering from a foreign port or
place in North America, Central America, the West
Indies Islands, the Bahama Islands, the Bermuda
Islands, or the coast of South America bordering the
Caribbean Sea; or
``(B) a vessel returning to the same port or place
in the United States from which it departed, and not
entering the United States from another port or place,
except--
``(i) a vessel of the United States;
``(ii) a recreational vessel (as defined in
section 2101 of this title); or
``(iii) a barge.
``(2) Rate.--The rate referred to in paragraph (1) shall
be--
``(A) 9.0 cents per ton (but not more than a total
of 45 cents per ton per year) for fiscal years 2014
through 2023; and
``(B) 2 cents per ton (but not more than a total of
10 cents per ton per year) for each fiscal year
thereafter.
``(b) Higher Rate.--
``(1) Imposition of duty.--A duty is imposed at the rate
described in paragraph (2) on a vessel at each entry in a port
of the United States from a foreign port or place not named in
subsection (a)(1).
``(2) Rate.--The rate referred to in paragraph (1) shall
be--
``(A) 27 cents per ton (but not more than a total
of $1.35 per ton per year) for fiscal years 2014
through 2023; and
``(B) 6 cents per ton (but not more than a total of
30 cents per ton per year) for each fiscal year
thereafter.''.
(b) Conforming Amendments.--Such title is further amended--
(1) by striking the heading for subtitle VI and inserting
the following:
``Subtitle VI--Clearance and Tonnage Duties'';
(2) in the heading for chapter 603, by striking ``TAXES''
and inserting ``DUTIES'';
(3) in the headings of sections in chapter 603, by striking
``taxes'' each place it appears and inserting ``duties'';
(4) in the heading for subsection (a) of section 60303, by
striking ``Tax'' and inserting ``Duty'';
(5) in the text of sections in chapter 603, by striking
``taxes'' each place it appears and inserting ``duties''; and
(6) in the text of sections in chapter 603, by striking
``tax'' each place it appears and inserting ``duty''.
(c) Clerical Amendments.--Such title is further amended--
(1) in the title analysis by striking the item relating to
subtitle VI and inserting the following:
``VI. CLEARANCE AND TONNAGE DUTIES.......................... 60101'';
(2) in the analysis for subtitle VI by striking the item
relating to chapter 603 and inserting the following:
``603. Tonnage Duties and Light Money....................... 60301'';
and
(3) in the analysis for chapter 603--
(A) by striking the items relating to sections
60301 and 60302 and inserting the following:
``60301. Regular tonnage duties.
``60302. Special tonnage duties.'';
and
(B) by striking the item relating to section 60304
and inserting the following:
``60304. Presidential suspension of tonnage duties and light money.''.
TITLE II--ALTERNATIVE WATER SOURCE PROJECTS
SEC. 2001. PILOT PROGRAM FOR ALTERNATIVE WATER SOURCE PROJECTS.
(a) Selection of Projects.--Section 220(d)(2) (33 U.S.C.
1300(d)(2)) is amended by inserting before the period at the end the
following: ``or whether the project is located in an area which is
served by a public water system serving 10,000 individuals or fewer''.
(b) Authorization of Appropriations.--Section 220(j) (33 U.S.C.
1300(j)) is amended by striking ``$75,000,000 for fiscal years 2002
through 2004'' and inserting ``$50,000,000 for each of fiscal years
2014 through 2018''.
TITLE III--SEWER OVERFLOW CONTROL GRANTS
SEC. 3001. SEWER OVERFLOW CONTROL GRANTS.
(a) Administrative Requirements.--Section 221(e) (33 U.S.C.
1301(e)) is amended to read as follows:
``(e) Administrative Requirements.--A project that receives
assistance under this section shall be carried out subject to the same
requirements as a project that receives assistance from a State water
pollution control revolving fund under title VI, except to the extent
that the Governor of the State in which the project is located
determines that a requirement of title VI is inconsistent with the
purposes of this section. For the purposes of this subsection, a
Governor may not determine that the requirements of title VI relating
to the application of section 513 are inconsistent with the purposes of
this section.''.
(b) Authorization of Appropriations.--Section 221(f) (33 U.S.C.
1301(f)) is amended to read as follows:
``(f) Authorization of Appropriations.--
``(1) In general.--There is authorized to be appropriated
to carry out this section $500,000,000 for each of fiscal years
2014 through 2018.
``(2) Minimum allocations.--To the extent there are
sufficient eligible project applications, the Administrator
shall ensure that a State uses not less than 20 percent of the
amount of the grants made to the State under subsection (a) in
a fiscal year to carry out projects to control municipal
combined sewer overflows and sanitary sewer overflows through
the use of green infrastructure, water and energy efficiency
improvements, and other environmentally innovative
activities.''.
(c) Allocation of Funds.--Section 221(g) of such Act (33 U.S.C.
1301(g)) is amended to read as follows:
``(g) Allocation of Funds.--
``(1) Fiscal year 2014.--Subject to subsection (h), the
Administrator shall use the amounts appropriated to carry out
this section for fiscal year 2014 for making grants to
municipalities and municipal entities under subsection (a)(2)
in accordance with the criteria set forth in subsection (b).
``(2) Fiscal year 2015 and thereafter.--Subject to
subsection (h), the Administrator shall use the amounts
appropriated to carry out this section for fiscal year 2015 and
each fiscal year thereafter for making grants to States under
subsection (a)(1) in accordance with a formula to be
established by the Administrator, after providing notice and an
opportunity for public comment, that allocates to each State a
proportional share of such amounts based on the total needs of
the State for municipal combined sewer overflow controls and
sanitary sewer overflow controls identified in the most recent
survey conducted pursuant to section 516 and any other
information the Administrator considers appropriate.''.
(d) Reports.--The first sentence of section 221(i) (33 U.S.C.
1301(i)) is amended by striking ``2003'' and inserting ``2015''.
TITLE IV--CLEAN WATER TRUST FUND
SEC. 4001. ESTABLISHMENT OF CLEAN WATER TRUST FUND.
Subchapter A of chapter 98 of the Internal Revenue Code of 1986
(relating to the establishment of trust funds) is amended by adding at
the end the following new section:
``SEC. 9512. CLEAN WATER TRUST FUND.
``(a) Creation of Trust Fund.--There is established in the Treasury
of the United States a trust fund to be known as the `Clean Water Trust
Fund', consisting of such amounts as may be appropriated or credited to
the Fund as provided in this section or section 9602(b).
``(b) Transfers to Trust Fund.--There are hereby appropriated to
the Clean Water Trust Fund amounts equivalent to--
``(1) fees, taxes, or other sources of revenue specifically
collected and deposited in the Fund or received in the Treasury
for the purposes provided in this section; and
``(2) any penalty paid pursuant to section 309 of the
Federal Water Pollution Control Act (33 U.S.C. 1319) (other
than those that result of violations of section 311 of such
Act).
``(c) Appropriation of Additional Sums.--There are hereby
authorized to be appropriated to the Clean Water Trust Fund such
additional sums as may be required to make the expenditures referred to
in subsection (d).
``(d) Expenditures.--Amounts in the Clean Water Trust Fund shall be
available, as provided in appropriations Acts, for the following
purposes:
``(1) Capitalization grants under section 601 of the
Federal Water Pollution Control Act (33 U.S.C. 1381).
``(2) Grants to States and interstate agencies under
section 106(a) of that Act (33 U.S.C. 1256(a)).
``(3) Grants under sections 104(b) and 104(g) of that Act
(33 U.S.C. 1254(b) and 1254(g)).
``(4) To cover the cost of making direct loans or
guaranteeing obligations authorized under the Water Pollution
Control Investment Act.''.
SEC. 4002. ALLOCATION OF FUNDS.
Title VI (as amended by section 1307 of this Act) is further
amended by inserting after section 608 the following:
``SEC. 609. CLEAN WATER TRUST FUND.
``(a) Allocation of Funds.--The Administrator shall allocate funds
made available for a fiscal year out of the Clean Water Trust Fund
established by section 9512 of the Internal Revenue Code of 1986 among
eligible programs and activities as follows:
``(1) 80 percent for capitalization grants under section
604.
``(2) 10 percent to cover the cost of making direct loans
or guaranteeing obligations authorized under the Water
Pollution Control Investment Act.
``(3) 7.5 percent for grants to States and interstate
agencies under section 106(a).
``(4) 2.5 percent for grants under sections 104(b) and
104(g).
``(b) Amounts Made Available for Capitalization Grants.--To the
extent there are sufficient applications, not less than 30 percent of
the amounts allocated for capitalization grants under subsection (a)(1)
shall be used for one or more of the following purposes:
``(1) Projects or activities to address green
infrastructure.
``(2) Water or energy efficiency improvements or other
environmentally sustainable activities.
``(3) The implementation of best management practices or
measures identified in an approved nonpoint source management
program under section 319.''.
SEC. 4003. REVENUES FOR CLEAN WATER TRUST FUND.
(a) Study on Identification of Revenues.--Not later than 45 days
after the date of enactment of this Act, the Director of the
Congressional Budget Office, in consultation with the Administrator of
the Environmental Protection Agency and the Secretary of the Treasury,
shall undertake a study of potential funding mechanisms and revenue
sources for the Clean Water Trust Fund established by section 9512(d)
of the Internal Revenue Code of 1986 (as added by this Act) that are
sufficient to support annual funding levels of at least $10,000,000,000
for the purposes identified in section 9512(d) of that Act.
(b) Conduct of Study.--In carrying out the study, the Director
shall--
(1) take into consideration whether potential funding
mechanisms and revenue sources--
(A) are broad based;
(B) are equitably allocated; and
(C) can be efficiently collected;
(2) review and, to the extent practicable, utilize existing
studies and reports on potential sources of revenue for a clean
water trust fund, including--
(A) the report of the Government Accountability
Office entitled ``Clean Water Infrastructure: A Variety
of Issues Need to Be Considered When Designing a Clean
Water Trust Fund'' (GAO-09-037, May 2009); and
(B) the report of the Environmental Protection
Agency entitled ``Alternative Funding Study: Water
Quality Fees and Debt Financing Issues'' (EPA 832-R-96-
001, June 1996);
(3) consult with Federal, State, tribal, and local
agencies, representatives of business and industry,
representatives of entities operating publicly owned treatment
works, representatives of conservation and environmental
organizations, representatives of ratepayer organizations, and
other interested persons; and
(4) provide the opportunity for public hearings.
(c) Report to Congress.--Not later than 1 year after the date of
enactment of this Act, the Director shall submit a report on the
results of the study to--
(1) the Committee on Transportation and Infrastructure, the
Committee on Ways and Means, and the Committee on the Budget of
the House of Representatives; and
(2) the Committee on Environment and Public Works, the
Committee on Finance, and the Committee on the Budget of the
Senate.
TITLE V--WATER POLLUTION CONTROL INVESTMENT
SEC. 5001. SHORT TITLE.
This title may be cited as the ``Water Pollution Control Investment
Act''.
SEC. 5002. DEFINITIONS.
In this title, the following definitions apply:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Borrower.--The term ``borrower'' means a person who
owes payments of interest or principal on an obligation
guaranteed under this title.
(3) Cost of a direct loan.--The term ``cost of a direct
loan'' means the ``cost of a direct loan'' as that term is used
in section 502(5) of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a(5)).
(4) Cost of a guarantee.--The term ``cost of a guarantee''
means the ``cost of a loan guarantee'' as that term is used in
section 502(5) of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a(5)).
(5) Direct loan.--The term ``direct loan'' has the meaning
given that term in section 502 of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661a).
(6) Guarantee.--
(A) In general.--The term ``guarantee'' has the
meaning given the term ``loan guarantee'' in section
502 of the Federal Credit Reform Act of 1990 (2 U.S.C.
661a).
(B) Inclusion.--The term ``guarantee'' includes a
loan guarantee commitment (as that term is defined in
section 502 of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a)).
(7) Large water infrastructure project.--
(A) In general.--The term ``large water
infrastructure project'' means a project for
construction of a publicly owned treatment works that
qualifies for assistance under section 603(c) of the
Federal Water Pollution Control Act (33 U.S.C.
1383(c)), but because of its significant scope and cost
is not likely to receive assistance under that Act, as
determined by the Administrator.
(B) Guidelines.--The Administrator shall issue
guidelines for determining whether a project qualifies
as a large water infrastructure project.
(8) Obligation.--The term ``obligation'' means a loan or
other debt obligation.
(9) State infrastructure financing authority.--The term
``State infrastructure financing authority'' means the State
entity established or designated by the Governor of a State to
receive a capitalization grant provided by, or otherwise carry
out the requirements of, title VI of the Federal Water
Pollution Control Act (33 U.S.C. 1381 et seq.).
SEC. 5003. DIRECT LOANS.
(a) In General.--
(1) Use of loans.--The Administrator may make a direct loan
to a State infrastructure financing authority for use in the
same manner, and subject to the same terms and conditions
(unless otherwise specified in this section), as a
capitalization grant made under section 601 of the Federal
Water Pollution Control Act (33 U.S.C. 1831).
(2) Terms and conditions.--The Administrator may make a
loan under this section on such terms and conditions (including
requirements for audits) as the Administrator determines
appropriate.
(b) Loan Requirements.--
(1) Maximum amount.--The amount of a loan made under this
section to a State infrastructure financing authority shall not
exceed the applicable percentage for the State establishing
such authority of the total amount available under this title
for disbursement, based on the allotment for the State in
accordance with section 604 of the Federal Water Pollution
Control Act (33 U.S.C. 1384).
(2) Term of loan.--The final maturity date of a loan made
under this section shall not be later than 35 years after the
date on which funds are disbursed to a State infrastructure
financing authority.
(3) Interest rate.--The Administrator may make a loan under
this section only if the Administrator determines that the
interest rate on the loan is appropriate, taking into account
the prevailing rate of interest in the private sector for
similar loans.
(4) Security.--The Administrator shall require a State
infrastructure financing authority receiving a loan under this
section to use a rate covenant, coverage requirement, or
similar security feature adequate to ensure loan repayment.
(5) Repayment.--
(A) Schedule.--The Administrator shall set a
repayment schedule for each loan made under this
section based on the projected cash flow to the State
infrastructure financing authority, including
consideration of the effect on such cash flow of the
security features described in paragraph (4).
(B) Commencement.--Scheduled loan repayments of
principal or interest on a loan made under this section
shall commence not later than 5 years after the date on
which the loan is made.
(C) Deferral of payments.--
(i) In general.--If the Administrator
determines that a State infrastructure
financing authority lacks the resources to make
scheduled payments on a loan made under this
section based on circumstances not foreseeable
at the time the loan is made, the Administrator
may allow for the deferral of such payments.
(ii) Interest.--Any payment deferred under
clause (i) shall--
(I) continue to accrue interest
until fully repaid; and
(II) be amortized over the
remaining term of the loan.
(D) Prepayment.--Payments on the loan may be made
in advance with no penalty.
(c) Sale of Loans.--After notifying the State infrastructure
financing authority, the Administrator, in consultation with the
Secretary of the Treasury, may sell a loan made under this section, if
the Administrator determines that the sale can be made on favorable
terms.
(d) Conforming Requirements.--The requirements of sections 211,
511(c)(1), and 513 of the Federal Water Pollution Control Act (33
U.S.C. 1291, 1371(c)(2), and 1372) apply to the construction of a
project carried out in whole or in part with assistance made available
through a loan under this section in the same manner as treatment works
for which grants are made available under the Federal Water Pollution
Control Act.
(e) Fees.--The Administrator shall charge and collect fees from
State infrastructure financing authorities receiving loans under this
section in amounts the Administrator determines are sufficient to cover
the administrative expenses associated with carrying out this section
and, as provided in advance in appropriations Acts, use such amounts to
cover such expenses.
(f) Records; Audits.--
(1) In general.--A State infrastructure financing authority
receiving a loan under this section shall keep such records and
other pertinent documents as the Administrator shall prescribe
by regulation, including such records as the Administrator may
require to facilitate an effective audit of loans made under
this section.
(2) Access.--The Administrator and the Comptroller General
of the United States, or their duly authorized representatives,
shall have access, for the purpose of audits, to records and
other pertinent documents kept under paragraph (1).
SEC. 5004. GUARANTEES.
(a) In General.--
(1) Use of guarantees.--The Administrator may make a
guarantee under this title for an obligation for construction
of a large water infrastructure project in accordance with the
requirements of this section.
(2) Selection criteria.--
(A) Establishment.--The Administrator shall
establish criteria for selecting among large water
infrastructure projects in making guarantees under this
title.
(B) Criteria.--In establishing selection criteria
under this paragraph, the Administrator shall include
consideration of the following:
(i) The extent to which the project is
nationally or regionally significant.
(ii) The creditworthiness of the project,
including a determination by the Administrator
that any financing has appropriate features to
ensure repayment.
(iii) The extent to which the project uses
new technologies that enhance the environmental
benefits of the project.
(iv) The cost of a guarantee under this
title.
(v) The extent to which the project helps
restore, maintain, or protect the environment.
(3) Fiscal year limitation.--The Administrator may not
utilize more than 10 percent of the funds made available under
this title for a fiscal year to make guarantees under this
section during that fiscal year.
(4) Terms and conditions.--The Administrator may make a
guarantee for a large water infrastructure project under this
title on such terms and conditions (including requirements for
audits) as the Administrator determines appropriate.
(5) Security.--The Administrator shall require a borrower
to use a rate covenant, coverage requirement, or similar
security feature adequate to ensure repayment of the
obligation.
(b) Guarantee Requirements.--
(1) Probability of repayment.--The Administrator may make a
guarantee under this title only if the Administrator determines
that there is a high probability of repayment by the borrower
of the principal and interest on the obligation.
(2) Amount.--
(A) Percentage of total cost.--The Administrator
may make a guarantee under this title only if the
amount of the obligation does not exceed 75 percent of
the total cost of the large water infrastructure
project, as estimated at the time at which the
guarantee is issued.
(B) Sufficiency.--The Administrator may make a
guarantee under this title only if the Administrator
determines that the amount of the obligation, when
combined with amounts available from other sources,
will be sufficient to carry out the project.
(3) Nonsubordination.--The Administrator may make a
guarantee under this title only if the guarantee is not
subordinate to other financing.
(4) Interest rate.--The Administrator may make a guarantee
under this title only if the Administrator determines that the
interest rate on the obligation is appropriate, taking into
account the prevailing rate of interest in the private sector
for similar obligations.
(5) Term.--The Administrator may make a guarantee under
this title only if--
(A) repayment of the obligation is required over a
period not to exceed the lesser of--
(i) 35 years; or
(ii) 90 percent of the projected useful
life of the large water infrastructure project
to be financed by the obligation (as determined
by the Administrator); and
(B) payments on the obligation are scheduled to
commence not later than 5 years after the date of
substantial completion of the large water
infrastructure project.
(c) Conforming Requirements.--
(1) Fiscal sustainability plan.--The Administrator may make
a guarantee for a large water infrastructure project under this
title only if the owner or operator of such project commits to
develop and implement a fiscal sustainability plan that meets
the requirements of section 603(d)(1)(E) of the Federal Water
Pollution Control Act, as added by this Act.
(2) Priority list.--The Administrator may make a guarantee
for a large water infrastructure project under this title only
if such project is on a State priority list under section
603(g) of the Federal Water Pollution Control Act (33 U.S.C.
1383(g)), as amended by this Act.
(3) Additional requirements.--The requirements of sections
211, 511(c)(1), and 513 of the Federal Water Pollution Control
Act (33 U.S.C. 1291, 1371(c)(2), and 1372) apply to the
construction of a large water infrastructure project carried
out in whole or in part with financing made available through
an obligation guaranteed under this title in the same manner as
treatment works for which grants are made available under the
Federal Water Pollution Control Act.
(d) Defaults.--
(1) Payment by administrator.--
(A) In general.--If a borrower defaults on an
obligation guaranteed under this title (as defined in
regulations promulgated by the Administrator and
specified in the guarantee contract), the holder of the
guarantee shall have the right to demand payment of the
unpaid amount from the Administrator.
(B) Payment required.--Within such period as may be
specified in the guarantee or related agreements, the
Administrator shall pay to the holder of a guarantee
the unpaid interest on, and unpaid principal of, the
obligation guaranteed under this title as to which the
borrower has defaulted, unless the Administrator finds
that there was no default by the borrower in the
payment of interest or principal or that the default
has been remedied.
(C) Forbearance.--Nothing in this subsection
precludes any forbearance by the holder of a guarantee
for the benefit of the borrower which may be agreed
upon by the parties to the obligation and approved by
the Administrator.
(2) Subrogation.--
(A) In general.--If the Administrator makes a
payment under paragraph (1), the Administrator shall be
subrogated to the rights of the holder of the guarantee
as specified in the guarantee or related agreements.
(B) Superiority of rights.--The rights of the
Administrator, with respect to any property acquired
pursuant to a guarantee or related agreements, shall be
superior to the rights of any other person with respect
to the property.
(e) Payment of Principal and Interest by Administrator.--
(1) In general.--With respect to any obligation guaranteed
under this title, the Administrator may enter into a contract
to pay, and pay, a holder of the guarantee, for and on behalf
of the borrower, from funds appropriated for that purpose, the
principal and interest payments which become due and payable on
the unpaid balance of the obligation if the Administrator finds
that--
(A) the borrower is unable to meet the payments and
is not in default;
(B) it is in the public interest to permit the
borrower to continue to pursue the purposes of the
project;
(C) the probable net benefit to the Federal
Government in paying the principal and interest will be
greater than that which would result in the event of a
default; and
(D) the State or region in which the project is
located is experiencing a period of local or regional
economic hardship that has affected the borrower's
ability to meet the payments.
(2) Amount.--The amount of the payment that the
Administrator is authorized to pay under this subsection shall
be no greater than the amount of principal and interest that
the borrower is obligated to pay under the obligation.
(3) Reimbursement.--A payment may be made under this
subsection only if the borrower agrees to reimburse the
Administrator for the payment (including interest) on terms and
conditions that are satisfactory to the Administrator.
(f) Fees.--The Administrator shall charge and collect fees from
borrowers for guarantees made under this title in amounts the
Administrator determines are sufficient to cover the administrative
expenses associated with carrying out this title and, as provided in
advance in appropriations Acts, use such amounts to cover such
expenses.
(g) Records; Audits.--
(1) In general.--A borrower shall keep such records and
other pertinent documents as the Administrator shall prescribe
by regulation, including such records as the Administrator may
require to facilitate an effective audit of guarantees made
under this title.
(2) Access.--The Administrator and the Comptroller General
of the United States, or their duly authorized representatives,
shall have access, for the purpose of audits, to records and
other pertinent documents kept under paragraph (1).
(h) Full Faith and Credit.--The full faith and credit of the United
States is pledged to the payment of all guarantees made under this
title.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E623-624)
Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Water Resources and Environment.
Referred to the Subcommittee on Trade.
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