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108th CONGRESS
2d Session
S. 2550
To amend the Federal Water Pollution Control Act and the Safe Drinking
Water Act to improve water and wastewater infrastructure in the United
States.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 21, 2004
Mr. Crapo (for himself, Mr. Inhofe, and Ms. Murkowski) introduced the
following bill; which was read twice and referred to the Committee on
Environment and Public Works
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A BILL
To amend the Federal Water Pollution Control Act and the Safe Drinking
Water Act to improve water and wastewater infrastructure in 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
Infrastructure Financing Act''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--WATER POLLUTION INFRASTRUCTURE
Sec. 101. Technical assistance for rural and small treatment works.
Sec. 102. Projects eligible for assistance.
Sec. 103. Affordability.
Sec. 104. Water pollution control revolving loan funds.
Sec. 105. Transferability of funds.
Sec. 106. Grants program.
Sec. 107. Costs of administering water pollution control revolving loan
funds.
Sec. 108. Allocation formula.
Sec. 109. Authorization of appropriations.
Sec. 110. Reports.
TITLE II--SAFE DRINKING WATER INFRASTRUCTURE
Sec. 201. Technical assistance for small centers.
Sec. 202. Preconstruction work.
Sec. 203. Affordability.
Sec. 204. Safe drinking water revolving loan funds.
Sec. 205. Grants program.
Sec. 206. Other authorized activities.
Sec. 207. Small system revolving loan fund.
Sec. 208. Authorization of appropriations.
TITLE III--MISCELLANEOUS
Sec. 301. Definition of Administrator.
Sec. 302. Demonstration grant program for water quality enhancement and
management.
Sec. 303. Cost of service study.
Sec. 304. State revolving fund review process.
TITLE I--WATER POLLUTION INFRASTRUCTURE
SEC. 101. TECHNICAL ASSISTANCE FOR RURAL AND SMALL TREATMENT WORKS.
Title II of the Federal Water Pollution Control Act is amended by
adding after section 221 (33 U.S.C. 1301) the following:
``SEC. 222. TECHNICAL ASSISTANCE FOR RURAL AND SMALL TREATMENT WORKS.
``(a) Definition of Qualified Nonprofit Technical Assistance
Provider.--In this section, the term `qualified nonprofit technical
assistance provider' means a qualified nonprofit technical assistance
provider of water and wastewater services to small rural communities
that provide technical assistance to treatment works that--
``(1) serve not more than 10,000 users; and
``(2) are located in a rural area.
``(b) Grant Program.--
``(1) In general.--The Administrator may make grants to
qualified nonprofit technical assistance providers--
``(A) to assist small treatment works in planning,
developing, and obtaining financing for eligible
projects described in section 603(c);
``(B) to capitalize revolving loan funds to provide
loans, in consultation with the State in which the
assistance is provided, to rural and small
municipalities for predevelopment costs (including
costs for planning, design, associated preconstruction,
and necessary activities for siting the facility and
related elements) associated with wastewater
infrastructure projects or short-term costs incurred
for equipment replacement that is not part of regular
operation and maintenance activities for existing
wastewater systems, so long as--
``(i) any loan from the fund is made at or
below market interest rate, for a term not to
exceed 10 years;
``(ii) the amount of a single loan does not
exceed $100,000;
``(iii) all loan repayments are credited to
the fund;
``(C) to provide technical assistance and training
for rural and small publicly owned treatment works and
decentralized wastewater treatment systems to enable
those treatment works and systems to protect water
quality and achieve and maintain compliance with this
Act; and
``(D) to disseminate information to rural and small
municipalities with respect to planning, design,
construction, and operation of publicly owned treatment
works and decentralized wastewater treatment systems.
``(2) Distribution of grant.--In carrying out this
subsection, the Administrator shall ensure, to the maximum
extent practicable, that technical assistance provided using
funds from a grant under paragraph (1) is made available in
each State.
``(3) 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.
``(4) Annual report.--For each fiscal year, a qualified
nonprofit technical assistance provider that receives a grant
under this paragraph shall submit to the Administrator a report
that--
``(A) describes the activities of the qualified
nonprofit technical assistance provider using grant
funds received under this section for the fiscal year;
and
``(B) specifies the number of communities served,
the size of those communities, and the type of
financing provided.
``(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this subsection $25,000,000 for each of
fiscal years 2005 through 2009.''.
SEC. 102. 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.--Funds in each State water
pollution control revolving fund shall be used only for--
``(1) providing financial assistance to a municipality,
intermunicipal, interstate, or State agency, or private utility
that principally treats municipal wastewater or domestic
sewage, for construction (including costs for planning, design,
associated preconstruction, and necessary activities for siting
the facility and related elements) of treatment works (as
defined in section 212);
``(2) implementation of a management program established
under section 319;
``(3) development and implementation of a conservation and
management plan under section 320;
``(4) water conservation projects or activities the primary
purpose of which is the protection, preservation, or
enhancement of water quality, including through--
``(A) piping or lining of an irrigation canal;
``(B) recovery or recycling of wastewater or runoff
from irrigation;
``(C) irrigation scheduling;
``(D) measurement or metering of water use; or
``(E) improvement of on-field irrigation
efficiency;
``(5) reuse, reclamation, or recycling projects the primary
purpose of which is the protection, preservation, or
enhancement of water quality;
``(6) projects to increase the security of wastewater
treatment works (excluding any expenditure for operations or
maintenance); or
``(7) measures to control municipal stormwater, the primary
purpose of which is the preservation, protection, or
enhancement of water quality.''.
SEC. 103. AFFORDABILITY.
Section 603 of the Federal Water Pollution Control Act (33 U.S.C.
1383) is amended--
(1) by redesignating subsections (e) through (h) as
subsections (f) through (i); and
(2) by inserting after subsection (d) the following:
``(e) Types of Assistance for Disadvantaged Communities.--
``(1) Definition of disadvantaged community.--In this
subsection, the term `disadvantaged community' means the
service area, or portion of a service area, of a treatment
works that meets affordability criteria established after
public review and comment by the State in which the treatment
works is located.
``(2) Loan subsidy.--Notwithstanding any other provision of
this section, in a case in which the State makes a loan from
the water pollution control revolving loan fund in accordance
with subsection (c) to a disadvantaged community or a community
that the State expects to become a disadvantaged community as
the result of a proposed project, the State may provide
additional subsidization, including the forgiveness of the
principal of the loan.
``(3) Total amount of subsidies.--For each fiscal year, the
total amount of loan subsidies made by the State pursuant to
this subsection may not exceed 30 percent of the amount of the
capitalization grant received by the State for the fiscal year.
``(4) Extended term.--A State may provide an extended term
for a loan if the extended term--
``(A) terminates not later than the date that is 30
years after the date of completion of the project; and
``(B) does not exceed the expected design life of
the project.
``(5) Information.--The Administrator may publish
information to assist States in establishing affordability
criteria described in paragraph (1).''.
SEC. 104. WATER POLLUTION CONTROL REVOLVING LOAN FUNDS.
Section 603 of the Federal Water Pollution Control Act (33 U.S.C.
1383) is amended by striking subsection (h) (as redesignated by section
103) and inserting the following:
``(h) Priority System Requirement.--
``(1) Definitions.--In this subsection:
``(A) Restructuring.--The term `restructuring'
means--
``(i) the consolidation of management
functions or ownership with another facility;
or
``(ii) the formation of cooperative
partnerships.
``(B) Traditional wastewater approach.--The term
`traditional wastewater approach' means a managed
system used to collect and treat wastewater from an
entire service area consisting of--
``(i) collection sewers;
``(ii) a centralized treatment plant using
biological or physical/chemical treatment
processes; and
``(iii) a direct point source discharge to
surface water.
``(2) Priority system.--A State shall provide financial
assistance from the water pollution control revolving fund of
the State only for projects described in subsection (c) by
amending the priority system established by the State under
subsection (g) under which the State--
``(A) gives more weight to an application for
assistance by a treatment works if the application
includes--
``(i) an inventory of assets, including a
description of the condition of those assets;
``(ii) a schedule for replacement of
assets;
``(iii) a financing plan indicating sources
of revenue from rate payers, grants, bonds,
other loans, and other sources;
``(iv) a review of options for
restructuring the treatment works;
``(v) a review of options for approaches
other than a traditional wastewater approach
that may include actions or projects that treat
or minimize sewage or urban stormwater
discharges using--
``(I) decentralized or distributed
stormwater controls;
``(II) decentralized wastewater
treatment;
``(III) low impact development
technologies;
``(IV) stream buffers;
``(V) wetland restoration; or
``(VI) actions to minimize the
amount of and direct connections to
impervious surfaces; or
``(vi) such other information as the State
determines to be appropriate;
``(B) takes into consideration appropriate
chemical, physical, and biological data that the State
considers reasonably available and of sufficient
quality;
``(C) provides for public notice and opportunity to
comment on establishment of the system and the summary
under subparagraph (D);
``(D) publishes not less than biennially in summary
form a description of projects in the State that are
eligible for assistance under this title that
indicates--
``(i) the priority assigned to each project
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