< Back to S. 1005 (111th Congress, 2009–2010)

Text of the Water Infrastructure Financing Act

This bill was introduced on May 14, 2009, in a previous session of Congress, but was not enacted. The text of the bill below is as of Jul 15, 2009 (Reported by Senate Committee).

Source: GPO

II

Calendar No. 109

111th CONGRESS

1st Session

S. 1005

[Report No. 111–47]

IN THE SENATE OF THE UNITED STATES

May 7, 2009

(for himself, Mrs. Boxer, Mr. Inhofe, and Mr. Crapo) introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works

July 15, 2009

Reported by , with an amendment

Strike out all after the enacting clause and insert the part printed in italic

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.

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.

Sec. 2. Definition of Administrator.

TITLE I—Water pollution infrastructure

Sec. 101. Technical assistance for rural small treatment works and medium 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. Noncompliance.

Sec. 107. Negotiation of contracts.

Sec. 108. Allotment of funds.

Sec. 109. Authorization of appropriations.

Sec. 110. Sewer overflow control grants.

Sec. 111. Critical water infrastructure projects.

TITLE II—Safe drinking water infrastructure

Sec. 201. Drinking water technical assistance for communities.

Sec. 202. Preconstruction work.

Sec. 203. Priority system requirements.

Sec. 204. Affordability.

Sec. 205. Safe drinking water revolving loan funds.

Sec. 206. Other authorized activities.

Sec. 207. Authorization of appropriations.

Sec. 208. Negotiation of contracts.

Sec. 209. Critical drinking water infrastructure projects.

Sec. 210. Reducing lead in drinking water.

TITLE III—Miscellaneous

Sec. 301. Definition of Academy.

Sec. 302. Program for water quality enhancement and management.

Sec. 303. Agricultural watershed sustainability technology grant program.

Sec. 304. State revolving fund review process.

Sec. 305. Cost of service study.

Sec. 306. Effective utility management strategies.

Sec. 307. WaterSense Program.

2.

Definition of Administrator

In this Act, the term Administrator means the Administrator of the Environmental Protection Agency.

I

Water pollution infrastructure

101.

Technical assistance for rural small treatment works and medium treatment works

(a)

In general

Title II of the Federal Water Pollution Control Act (33 U.S.C. 1281 et seq.) is amended by adding at the end the following:

222.

Technical assistance for rural small treatment works and medium treatment works

(a)

Definitions

In this section:

(1)

Advanced decentralized wastewater system

The term advanced decentralized wastewater system means a decentralized wastewater system that provides more effective treatment than a conventional septic system.

(2)

Decentralized wastewater system

(A)

In general

The term decentralized wastewater system means a wastewater treatment system that is at or near a site at which wastewater is generated.

(B)

Inclusions

The term decentralized wastewater system includes a system that provides for—

(i)

nonpotable reuse of treated effluent; or

(ii)

energy and nutrient recovery from wastewater constituents.

(3)

Medium treatment works

The term medium treatment works means a publicly owned treatment works serving more than 10,000 but fewer than 100,000 individuals.

(4)

Qualified nonprofit technical assistance provider

The term qualified nonprofit technical assistance provider means a qualified nonprofit technical assistance provider of water and wastewater services to small or medium-sized communities that provides technical assistance (including circuit rider, multi-State regional assistance programs, and training and preliminary engineering evaluations) to owners and operators of small treatment works or medium treatment works that may include State agencies.

(5)

Small treatment works

The term small treatment works means a publicly owned treatment works serving not more than 10,000 individuals.

(b)

Grant program

(1)

In general

The Administrator may make grants on a competitive basis to qualified nonprofit technical assistance providers that are qualified to provide assistance on a broad range of wastewater and stormwater approaches—

(A)

to assist owners and operators of small treatment works and medium treatment works to plan, develop, and obtain financing for eligible projects described in section 603(c) or 518(c);

(B)

to provide financial assistance, in consultation with the State in which the assistance is provided, to owners and operators of small treatment works and medium treatment works for predevelopment costs (including costs for planning, design, and associated preconstruction activities, such as activities relating directly to the siting of the facility and related elements) associated with stormwater or wastewater infrastructure projects or short-term costs incurred for equipment replacement that is not part of regular operation and maintenance activities for existing stormwater or wastewater systems, if the amount of assistance for any single project does not exceed $50,000;

(C)

to provide technical assistance and training for owners and operators of small treatment works and medium treatment works 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 owners and operators of small treatment works and medium treatment works, with respect to planning, design, construction, and operation of treatment works, small municipal separate storm sewer systems, decentralized wastewater treatment systems, and advanced 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 agree to consult with each State in which grant funds are to be expended before the grant funds are expended in the State.

(4)

Annual report

Not later than 60 days after the end of each fiscal year, a qualified nonprofit technical assistance provider that receives a grant under this subsection 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 subsection for the fiscal year; and

(B)

specifies—

(i)

the number of communities served;

(ii)

the sizes of those communities; and

(iii)

the type of assistance provided by the qualified nonprofit technical assistance provider.

(c)

Authorization of appropriations

There are authorized to be appropriated to carry out this section—

(1)

for grants for small treatment works, $25,000,000 for each of fiscal years 2010 through 2014; and

(2)

for grants for medium treatment works, $15,000,000 for each of fiscal years 2010 through 2014.

.

(b)

Guidance for small systems

Section 602 of the Federal Water Pollution Control Act (33 U.S.C. 1382) is amended by adding at the end the following:

(c)

Guidance for small systems

(1)

Definition of small system

In this subsection, the term small system means a system—

(A)

for which a municipality or intermunicipal, interstate, or State agency seeks assistance under this title; and

(B)

that serves a population of not more than 10,000 individuals.

(2)

Simplified procedures

Not later than 1 year after the date of enactment of this subsection, the Administrator shall assist the States in establishing simplified procedures for small systems to obtain assistance under this title.

(3)

Publication of manual

Not later than 1 year after the date of enactment of this subsection, after providing notice and opportunity for public comment, the Administrator shall publish—

(A)

a manual to assist small systems in obtaining assistance under this title; and

(B)

in the Federal Register, notice of the availability of the manual.

.

102.

Projects eligible for assistance

(a)

In general

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 in each State water pollution control revolving fund shall be used only for providing financial assistance—

(A)

to a municipality or an intermunicipal, interstate, or State agency or a private treatment works or decentralized wastewater system that principally treats municipal wastewater or domestic sewage—

(i)

for construction of treatment works (as defined in section 212); or

(ii)

for capital costs associated with monitoring equipment for combined sanitary sewer overflows;

(B)

to implement measures to control, manage, reduce, treat, infiltrate, or reuse stormwater, the primary purpose of which is the preservation, protection, or enhancement of water quality to support public purposes (including the procurement and use of equipment to support minimum measures, such as street sweeping and storm drain system cleaning, or acquisition of other land and interests in land that are necessary for those activities and measures);

(C)

to implement a management program established under section 319;

(D)

to develop and implement a conservation and management plan under section 320;

(E)

for projects to increase the security of wastewater treatment works (as defined in section 212), excluding any expenditure for operations or maintenance;

(F)

to carry out water conservation or efficiency projects that result in direct water quality benefits;

(G)

to implement measures to integrate water resource management planning and implementation;

(H)

to carry out water reuse (including wastewater reuse), reclamation, and recycling projects that result in direct water quality benefits;

(I)

for projects to increase the energy efficiency of treatment works (as defined in section 212) that result in direct water quality benefits;

(J)

for the development and implementation of utility management improvement plans consistent with an effective utility management strategy (as defined in section 306(a) of the Water Infrastructure Financing Act); and

(K)

for the development and implementation of integrative watershed improvement plans that include cost-effective solutions that consider point and nonpoint sources of pollution and traditional and cost-saving water treatment and efficiency projects.

(2)

Limitation

Not more than 5 percent of the amount of a capitalization grant of a State may be used during a fiscal year to provide assistance for activities described in subparagraph (J) or (K) of paragraph (1).

(3)

State water pollution control revolving funds

(A)

In general

A State water pollution control revolving fund shall be established, maintained, and credited with repayments.

(B)

Balance of fund

The balance of each fund described in subparagraph (A) shall be available in perpetuity for providing financial assistance under this section.

.

(b)

Modification of definition

Section 212(2)(A) of the Federal Water Pollution Control Act (33 U.S.C. 1292(2)(A)) is amended—

(1)

by striking and any works, including site;

(2)

by striking is used for ultimate and inserting will be used for ultimate; and

(3)

by inserting ; and acquisition of other land and interests in land necessary for construction before the period at the end.

103.

Affordability

(a)

In General

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 (g) through (j), respectively;

(2)

in subsection (d)—

(A)

in paragraph (1)—

(i)

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

(ii)

in subparagraph (B), by striking not later than 20 years after project completion and inserting upon the expiration of the term of the loan;

(B)

in paragraph (6), by striking and at the end; and

(C)

in paragraph (7), by striking title, except that and all that follows and inserting the following: “title, except that—

(A)

such amounts shall not exceed an amount equal to the sum of, for each fiscal year—

(i)

an amount equal to the greatest of—

(I)

$400,000;

(II)

1/5 percent of the current valuation of the fund; or

(III)

6 percent of all grant awards to the fund under this title for a fiscal year; and

(ii)

the amount of any fees collected by the State for that purpose, regardless of the source; and

(B)

as a source of revenue (restricted solely to interest earnings of the fund) or security for payment of the principal and interest on revenue or general obligation bonds issued by the State to provide matching funds under section 602(b)(2), if the proceeds of the sale of the bonds will be deposited in the fund.

; and

(3)

by inserting after subsection (d) the following:

(e)

Additional assistance for disadvantaged communities

(1)

Definition of disadvantaged community

In this subsection, the term disadvantaged community means a community with a 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, subject to paragraph (5), 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—

(A)

the forgiveness of all or a portion of the principal of the loan; and

(B)

a negative interest rate on 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)

Information

The Administrator may publish information to assist States in establishing affordability criteria described in paragraph (1).

(f)

Cost-saving water treatment and efficiency improvements

(1)

In general

Subject to subsection (e)(3), in providing a loan for a project under this section, a State may forgive repayment of a portion of the loan amount up to the percentage of the project that is devoted to alternative approaches to wastewater and stormwater controls (including nonstructural methods), such as projects that treat or minimize sewage or urban stormwater discharges using—

(A)

decentralized or distributed stormwater controls;

(B)

advanced decentralized wastewater treatment;

(C)

low-impact development technologies and nonstructural approaches;

(D)

stream buffers;

(E)

wetland restoration and enhancement;

(F)

actions to minimize the quantity of and direct connections to impervious surfaces;

(G)

soil and vegetation, or other permeable materials;

(H)

actions that increase efficient water use, water conservation, or water reuse; or

(I)

actions that increase energy efficiency or reduce energy consumption at a treatment works.

(2)

Treatment of loan forgiveness

The amount of loan forgiveness provided by a State under this subsection shall be—

(A)

credited to each State; and

(B)

deducted from the total amount of State capitalization grants for which matching funds are required from the State under section 602(b)(2).

.

(b)

Conforming Amendment

Section 221(d) of the Federal Water Pollution Control Act (33 U.S.C. 1301(d)) is amended in the second sentence by striking 603(h) and inserting 603(j).

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 (i) (as redesignated by section 103(a)(1)) and inserting the following:

(i)

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, physical, or chemical treatment processes; and

(iii)

a direct point source discharge to surface water.

(2)

Priority system

In providing financial assistance from the water pollution control revolving fund of the State, the State shall establish a priority system that—

(A)

takes into consideration appropriate chemical, physical, and biological data relating to water quality that the State considers reasonably available and of sufficient quality;

(B)

ensures that projects undertaken with assistance under this title are designed to achieve, as determined by the State, the optimum water quality management, consistent with the public health and water quality goals and requirements of this Act;

(C)

provides for public notice and opportunity to comment on the establishment of the priority system and the summary under subparagraph (D); and

(D)

provides for the publication, not less than biennially in summary form, of a description of projects in the State that are eligible for assistance under this title that indicates—

(i)

the priority assigned to each project under the priority system of the State; and

(ii)

the funding schedule for each project, to the extent the information is available.

(3)

Weight given to applications

After determining project priorities under subparagraph (2), the State shall give greater weight to an application for assistance if the application includes such information as the State determines to be necessary and contains—

(A)

a description of utility management best practices undertaken by a treatment works applying for assistance, including—

(i)

an inventory of assets, including a description of the condition of those assets;

(ii)

a schedule for replacement of the assets;

(iii)

a financing plan that factors in all lifecycle costs indicating sources of revenue from ratepayers, grants, bonds, other loans, and other sources to meet the costs; and

(iv)

a review of options for restructuring the treatment works;

(B)

approaches other than a traditional wastewater approach that treat or minimize sewage or urban stormwater discharges using—

(i)

decentralized or distributed stormwater controls;

(ii)

advanced decentralized wastewater treatment;

(iii)

low-impact development technologies and nonstructural approaches;

(iv)

stream buffers;

(v)

wetland restoration and enhancement;

(vi)

actions to minimize the quantity of and direct connections to impervious surfaces;

(vii)

soil and vegetation, or other permeable materials;

(viii)

actions that increase efficient water use, water conservation, or water reuse; or

(ix)

actions that increase energy efficiency or reduce energy consumption at a treatment works;

(C)

a demonstration of consistency with State, regional, and municipal watershed plans, water conservation and efficiency plans, or integrated water resource management plans;

(D)

a proposal by the applicant demonstrating flexibility through alternative means to carry out responsibilities under Federal regulations, that may include watershed permitting and other innovative management approaches, while achieving results that—

(i)

the State, in the case of a permit program approved under section 402, determines will meet permit requirements; or

(ii)

the Administrator determines are measurably superior, as compared to regulatory standards; or

(E)

projects that address adverse environmental conditions.

.

105.

Transferability of funds

Section 603 of the Federal Water Pollution Control Act (33 U.S.C. 1383) (as amended by section 103(a)(1)) is amended by adding at the end the following:

(k)

Transfer of funds

(1)

In general

The Governor of a State may—

(A)
(i)

reserve not more than the greater of—

(I)

33 percent of a capitalization grant made under this title; or

(II)

33 percent of a capitalization grant made under section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j–12); and

(ii)

add the reserved funds to any funds provided to the State under section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j–12); and

(B)
(i)

reserve for any year an amount that does not exceed 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

(ii)

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)).

.

106.

Noncompliance

Section 603 of the Federal Water Pollution Control Act (33 U.S.C. 1383) (as amended by section 105) is amended by adding at the end the following:

(l)

Noncompliance

(1)

In general

Except as provided in paragraph (2), no assistance (other than assistance that is to be used by a treatment works solely for planning, design, or security purposes) shall be provided under this title to the owner or operator of a treatment works that has been in significant noncompliance with any requirement of this Act for any of the 4 quarters during the preceding 8 quarters, unless the treatment works is in compliance with an enforceable administrative order to effect compliance with the requirement.

(2)

Exception

An owner or operator of a treatment works that is determined under paragraph (1) to be in significant noncompliance with a requirement described in that paragraph may receive assistance under this title if the Administrator and the State providing the assistance determine that—

(A)

the entity conducting the enforcement action on which the determination of significant noncompliance is based has determined that the use of assistance would enable the owner or operator of the treatment works to take corrective action toward resolving the violations; or

(B)

the entity conducting the enforcement action on which the determination of significant noncompliance is based has determined that the assistance would be used by the owner or operator of the treatment works in order to assist owners and operators in making progress towards compliance.

.

107.

Negotiation of contracts

Section 603 of the Federal Water Pollution Control Act (33 U.S.C. 1383) (as amended by section 106) is amended by adding at the end the following:

(m)

Negotiation of contracts

(1)

In general

A contract to be carried out using funds directly made available by a capitalization grant under this section for program management, construction management, feasibility studies, preliminary engineering, design, engineering, surveying, mapping, or architectural or related services shall be negotiated in the same manner as—

(A)

a contract for architectural and engineering services is negotiated under chapter 11 of title 40, United States Code; or

(B)

an equivalent State qualifications-based requirement (as determined by the Governor of the State).

(2)

Exemption for small communities

Paragraph (1) shall not apply to a contract described in that paragraph for program management, construction management, feasibility studies, preliminary engineering, design, engineering, surveying, mapping, or architectural or related services for a community of 10,000 or fewer individuals.

.

108.

Allotment of funds

Section 604 of the Federal Water Pollution Control Act (33 U.S.C. 1384) is amended by striking subsections (a) and (b) and inserting the following:

(a)

In general

Amounts authorized to be appropriated to carry out this section for each of fiscal years 2010 through 2014 shall be allotted among States by the Administrator in accordance with the percentages specified in the following table:

StatePercentage
Alabama0.012860
Alaska0.007500
Arizona0.010247
Arkansas0.007500
California0.079629
Colorado0.010164
Connecticut0.014150
Delaware0.007500
District of Columbia0.005000
Florida0.044139
Georgia0.012825
Hawaii0.008048
Idaho0.007500
Illinois0.048540
Indiana0.024633
Iowa0.010266
Kansas0.009129
Kentucky0.012025
Louisiana0.013465
Maine0.007829
Maryland0.025129
Massachusetts0.025754
Michigan0.033487
Minnesota0.020385
Mississippi0.009112
Missouri0.028037
Montana0.007500
Nebraska0.008023
Nevada0.007500
New Hampshire0.007500
New Jersey0.046117
New Mexico0.007500
New York0.103531
North Carolina0.019007
North Dakota0.007500
Ohio0.054722
Oklahoma0.008171
Oregon0.012456
Pennsylvania0.041484
Rhode Island0.007500
South Carolina0.007500
South Dakota0.007500
Tennessee0.011019
Texas0.037664
Utah0.007500
Vermont0.007500
Virginia0.020698
Washington0.017588
West Virginia0.011825
Wisconsin0.022844
Wyoming0.007500
Puerto Rico0.005000
Territories0.002500.
(b)

Reservation of funds

(1)

Planning

Each State may reserve for each fiscal year to carry out planning under sections 205(j) and 303(e) an amount equal to the greater of—

(A)

2 percent of the sums allotted to the State under this section for the fiscal year; or

(B)

$100,000.

(2)

Indian tribes

Of the total amount of funds allotted to the State under this section for a fiscal year, 1.5 percent shall be allocated to Indian tribes (as defined in section 518(h)).

(3)

Operator training

Of the total amount of funds made available to carry out this title, for fiscal year 2009 and each fiscal year thereafter, the Administrator may reserve not more than $5,000,000 to carry out the objectives described in section 104(g).

.

109.

Authorization of appropriations

The Federal Water Pollution Control Act is amended by striking section 607 (33 U.S.C. 1387) and inserting the following:

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 2010 and 2011;

(2)

$3,600,000,000 for fiscal year 2012;

(3)

$4,000,000,000 for fiscal year 2013; and

(4)

$6,000,000,000 for fiscal year 2014.

(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 $1,000,000 for the fiscal year, to remain available until expended, to pay the costs of conducting needs surveys under section 516(b)(1)(B).

.

110.

Sewer overflow control grants

(a)

Sewer overflow control grants

Section 221 of the Federal Water Pollution Control Act (33 U.S.C. 1301) is amended—

(1)

in subsection (a), by striking In general and all that follows through (2) subject to subsection (g), the Administrator may and inserting the following:

(a)

In general

The Administrator may—

(1)

make grants to States for the purpose of providing grants to a municipality or municipal entity for planning, design, and construction of treatment works to intercept, transport, control, or treat municipal combined sewer overflows and sanitary sewer overflows; and

(2)

subject to subsection (g),

; and

(2)

by striking subsections (e) through (g) and inserting the following:

(e)

Administrative requirements

(1)

In general

Subject to paragraph (2), a project that receives grant assistance under subsection (a) shall be carried out subject to the same requirements as a project that receives assistance from a State water pollution control revolving fund established pursuant to title VI.

(2)

Determination of Governor

The requirement described in paragraph (1) shall not apply to a project that receives grant assistance under subsection (a) to the extent that the Governor of the State in which the project is located determines that a requirement described in title VI is inconsistent with the purposes of this section.

(f)

Authorization of appropriations

There are authorized to be appropriated to carry out this section, to remain available until expended—

(1)

$250,000,000 for fiscal year 2010;

(2)

$300,000,000 for fiscal year 2011;

(3)

$350,000,000 for fiscal year 2012;

(4)

$400,000,000 for fiscal year 2013; and

(5)

$500,000,000 for fiscal year 2014.

(g)

Allocation of funds

(1)

Fiscal year 2010 and 2011

For each of fiscal years 2010 and 2011, subject to subsection (h), the Administrator shall use the amounts made available to carry out this section to provide grants to municipalities and municipal entities under subsection (a)(2)—

(A)

in accordance with the priority criteria described in subsection (b); and

(B)

with additional priority given to proposed projects that involve the use of—

(i)

nonstructural, low-impact development;

(ii)

water conservation, efficiency, or reuse; or

(iii)

other decentralized stormwater or wastewater approaches to minimize flows into the sewer systems.

(2)

Fiscal year 2012 and thereafter

For fiscal year 2012 and each fiscal year thereafter, subject to subsection (h), the Administrator shall use the amounts made available to carry out this section to provide grants to States under subsection (a)(1) in accordance with a formula that—

(A)

shall be established by the Administrator, after providing notice and an opportunity for public comment; and

(B)

allocates to each State a proportional share of the amounts based on the total needs of the State for municipal combined sewer overflow controls and sanitary sewer overflow controls, as identified in the most recent survey—

(i)

conducted under section 210; and

(ii)

included in a report required under section 516(b)(1)(B).

.

(b)

Reports

Section 221(i) of the Federal Water Pollution Control Act (33 U.S.C. 1301(i)) is amended in the first sentence by striking 2003 and inserting 2011.

111.

Critical water infrastructure projects

(a)

Establishment

The Administrator shall establish a program under which grants are provided to eligible entities for use in carrying out projects and activities the primary purpose of which is watershed restoration through the protection or improvement of water quality.

(b)

Project selection

(1)

In general

The Administrator may provide funds under this section to an eligible entity to carry out an eligible project described in paragraph (3).

(2)

Equitable distribution

The Administrator shall ensure an equitable distribution of projects under this section, taking into account cost and number of requests for each category listed in paragraph (3).

(3)

Eligible projects

A project that is eligible to be carried out using funds provided under this section may include projects that are included in the intended use plan of the State developed in accordance with section 606(c) of the Federal Water Pollution Control Act (33 U.S.C. 1386(c)).

(c)

Local participation

In prioritizing projects for implementation under this section, the Administrator shall consult with, and consider the priorities of—

(1)

affected State and local governments; and

(2)

public and private entities that are active in watershed planning and restoration.

(d)

Before carrying out any project under this section, the Administrator shall enter into an agreement with 1 or more non-Federal interests that shall require the non-Federal interests—

(1)

to pay 45 percent of the total costs of the project, which may include services, materials, supplies, or other in-kind contributions;

(2)

to provide any land, easements, rights-of-way, and relocations necessary to carry out the project; and

(3)

to pay 100 percent of any operation, maintenance, repair, replacement, and rehabilitation costs associated with the project.

(e)

Waiver

The Administrator may waive the requirement to pay the non-Federal share of the cost of carrying out an eligible activity using funds from a grant provided under this section if the Administrator determines that an eligible entity is unable to pay, or would experience significant financial hardship if required to pay, the non-Federal share.

(f)

Authorization of appropriations

There is authorized to be appropriated to carry out this section $50,000,000 for each of fiscal years 2010 through 2014.

II

Safe drinking water infrastructure

201.

Drinking water technical assistance for communities

Section 1442(e) of the Safe Drinking Water Act (42 U.S.C. 300j–1(e)) is amended—

(1)

in the first sentence, by striking The Administrator may provide and inserting the following:

(1)

Public water systems

The Administrator may provide

;

(2)

in the second sentence, by striking Such assistance and inserting the following:

(2)

Types of assistance

Such assistance

;

(3)

in the third sentence, by striking The Administrator shall ensure and inserting the following:

(3)

Availability

The Administrator shall ensure

;

(4)

in the fourth sentence, by striking Each nonprofit and inserting the following:

(4)

Requirement applicable to nonprofit organizations

Each nonprofit

; and

(5)

by striking the fifth sentence and all that follows and inserting the following:

(5)

Priority

In providing grants under this section, the Administrator shall give priority to small systems organizations that, as determined by the Administrator, in consultation with the State, are qualified and will be the most effective at assisting small systems.

(6)

Wells and well systems

(A)

In general

The Administrator shall provide grants to nonprofit organizations to provide technical assistance to communities and individuals regarding the design, operation, construction, and maintenance of household wells and small shared well systems that provide drinking water.

(B)

Form of assistance

Technical assistance referred to in subparagraph (A) may include—

(i)

training and education;

(ii)

operation of a hotline; and

(iii)

the conduct of other activities relating to the design and construction of household, shared, and small water well systems in rural areas.

(C)

Priority

Subject to paragraph (5), in providing grants under this section, the Administrator shall give priority to applicants that, as determined by the Administrator—

(i)

are qualified; and

(ii)

have demonstrated experience in providing similar technical assistance and in developing similar projects.

(D)

Authorization of appropriations

There is authorized to be appropriated to carry out this paragraph—

(i)

$7,000,000 for fiscal year 2010; and

(ii)

$7,500,000 for each of fiscal years 2011 through 2014.

(7)

Funding

(A)

Authorization of appropriations

There is authorized to be appropriated to the Administrator to carry out this subsection (other than paragraph (6)) $35,000,000 for each of fiscal years 2010 through 2014.

(B)

Lobbying expenses

No portion of any State loan fund established under section 1452 and no portion of any funds made available under this subsection may be used for lobbying expenses.

(C)

Indian tribes

Of the total amount made available under this section for each fiscal year, 3 percent shall be used for technical assistance to public water systems owned or operated by Indian Tribes.

.

202.

Preconstruction work

Section 1452(a)(2) of the Safe Drinking Water Act (42 U.S.C. 300j–12(a)(2)) is amended—

(1)

by designating the first, second, third, fourth, and fifth sentences as subparagraphs (A), (B), (D), (E), and (F), respectively;

(2)

in subparagraph (B) (as designated by paragraph (1))—

(A)

by striking (not and inserting (including expenditures for planning, design, and associated preconstruction activities, including activities relating to the siting of the facility, but not; and

(B)

by inserting before the period at the end the following: or to replace or rehabilitate aging treatment, storage, or distribution facilities of public water systems or provide for capital projects (excluding any expenditure for operations and maintenance) to upgrade the security of public water systems; and

(3)

by inserting after subparagraph (B) (as designated by paragraph (1)) the following:

(C)

Sale of bonds

Funds may also be used by a public water system as a source of revenue (restricted solely to interest earnings of the applicable State loan fund) or security for payment of the principal and interest on revenue or general obligation bonds issued by the State to provide matching funds under subsection (e), if the proceeds of the sale of the bonds will be deposited in the State loan fund.

.

203.

Priority system requirements

Section 1452(b)(3) of the Safe Drinking Water Act (42 U.S.C. 300j–12(b)(3)) is amended—

(1)

by redesignating subparagraph (B) as subparagraph (D);

(2)

by striking subparagraph (A) and inserting the following:

(A)

Definition of restructuring

In this paragraph, the term restructuring means changes in operations (including ownership, cooperative partnerships, asset management, consolidation, and alternative water supply).

(B)

Priority system

An intended use plan shall provide, to the maximum extent practicable, that priority for the use of funds be given to projects that—

(i)

address the most serious risk to human health;

(ii)

are necessary to ensure compliance with this title (including requirements for filtration);

(iii)

assist systems most in need on a per-household basis according to State affordability criteria; and

(iv)

improve the sustainability of systems.

(C)

Weight given to applications

After determining project priorities under subparagraph (B), an intended use plan shall provide that the State shall give greater weight to an application for assistance by a community water system if the application includes such information as the State determines to be necessary and contains—

(i)

an inventory of assets, including a description of the condition of the assets;

(ii)

a schedule for replacement of assets;

(iii)

a financing plan that factors in all lifecycle costs indicating sources of revenue from ratepayers, grants, bonds, other loans, and other sources to meet the costs;

(iv)

a review of options for restructuring the public water system;

(v)

demonstration of consistency with State, regional, and municipal watershed plans;

(vi)

a water conservation plan consistent with guidelines developed for those plans by the Administrator under section 1455(a); and

(vii)

approaches to improve the sustainability of the system, including—

(I)

water efficiency or conservation;

(II)

use of reclaimed water; and

(III)

actions to increase energy efficiency.

; and

(3)

in subparagraph (D) (as redesignated by paragraph (1)), by striking periodically and inserting at least biennially.

204.

Affordability

Section 1452(d)(3) of the Safe Drinking Water Act (42 U.S.C. 300j–12(d)(3)) is amended in the first sentence by inserting , or portion of a service area, after service area.

205.

Safe drinking water revolving loan funds

Section 1452(g) of the Safe Drinking Water Act (42 U.S.C. 300j–12(g)) is amended—

(1)

paragraph (2)—

(A)

in the first sentence, by striking 4 and inserting 6; and

(B)

by striking 1419, and all that follows through 1993. and inserting 1419.; and

(2)

by adding at the end the following:

(5)

Transfer of funds

(A)

In general

The Governor of a State may—

(i)
(I)

reserve not more than the greater of—

(aa)

33 percent of a capitalization grant made under this section; or

(bb)

33 percent of a capitalization grant made under section 601 of the Federal Water Pollution Control Act (33 U.S.C. 1381);

(II)

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)
(I)

reserve for any fiscal year an amount that does not exceed the amount that may be reserved under clause (i)(I) for that year from capitalization grants made under section 601 of that Act (33 U.S.C. 1381); and

(II)

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)).

.

206.

Other authorized activities

Section 1452(k)(2)(D) of the Safe Drinking Water Act (42 U.S.C. 300j–12(k)(2)(D)) is amended by inserting before the period at the end the following: (including implementation of source water protection plans).

207.

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 2010;

(B)

$2,000,000,000 for each of fiscal years 2011 and 2012;

(C)

$3,200,000,000 for fiscal year 2013; and

(D)

$6,000,000,000 for fiscal year 2014.

(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 $1,000,000 per year to pay the costs of conducting needs surveys under subsection (h).

.

208.

Negotiation of contracts

Section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j–12) is amended by adding at the end the following:

(s)

Negotiation of contracts

(1)

In general

A contract to be carried out using funds directly made available by a capitalization grant under this section for program management, construction management, feasibility studies, preliminary engineering, design, engineering, surveying, mapping, or architectural or related services shall be negotiated in the same manner as—

(A)

a contract for architectural and engineering services is negotiated under chapter 11 of title 40, United States Code; or

(B)

an equivalent State qualifications-based requirement (as determined by the Governor of the State).

(2)

Exemption for small communities

Paragraph (1) shall not apply to a contract described in that paragraph for program management, construction management, feasibility studies, preliminary engineering, design, engineering, surveying, mapping, or architectural or related services for a community of 10,000 or fewer individuals.

.

209.

Critical drinking water infrastructure projects

(a)

Establishment

Not later than 180 days after the date of enactment of this Act, the Administrator shall establish a program under which grants are provided to eligible entities for use in carrying out projects and activities the primary purpose of which is to assist community water systems in meeting the requirements of the Safe Drinking Water Act (42 U.S.C. 300f et seq.).

(b)

Project selection

A project that is eligible to be carried out using funds provided under this section may include projects that—

(1)

develop alternative water sources;

(2)

provide assistance to small systems; or

(3)

assist a community water system—

(A)

to comply with a national primary drinking water regulation; or

(B)

to mitigate groundwater contamination, including saltwater intrusion.

(c)

Eligible entities

An entity eligible to receive a grant under this section is—

(1)

a community water system as defined in section 1401 of the Safe Drinking Water Act (42 U.S.C. 300f); or

(2)

a system that is located in an area governed by an Indian Tribe (as defined in section 1401 of the Safe Drinking Water Act (42 U.S.C. 300f));

(d)

Priority

In prioritizing projects for implementation under this section, the Administrator shall give priority to community water systems that—

(1)

serve a community that, under affordability criteria established by the State under section 1452(d)(3) of the Safe Drinking Water Act (42 U.S.C. 300j–12), is determined by the State to be—

(A)

a disadvantaged community; or

(B)

a community that may become a disadvantaged community as a result of carrying out an eligible activity; or

(2)

serve a community with a population of less than 10,000 individuals.

(e)

Local participation

In prioritizing projects for implementation under this section, the Administrator shall consult with, and consider the priorities of, affected States, Indian Tribes, and local governments.

(f)

Cost sharing

Before carrying out any project under this section, the Administrator shall enter into a binding agreement with 1 or more non-Federal interests that shall require the non-Federal interests—

(1)

to pay 45 percent of the total costs of the project, which may include services, materials, supplies, or other in-kind contributions;

(2)

to provide any land, easements, rights-of-way, and relocations necessary to carry out the project; and

(3)

to pay 100 percent of any operation, maintenance, repair, replacement, and rehabilitation costs associated with the project.

(g)

Waiver

The Administrator may waive the requirement to pay the non-Federal share of the cost of carrying out an eligible activity using funds from a grant provided under this section if the Administrator determines that an eligible entity is unable to pay, or would experience significant financial hardship if required to pay, the non-Federal share.

(h)

Authorization of appropriations

There is authorized to be appropriated to carry out this section—

(1)

$230,000,000 for fiscal year 2010; and

(2)

$300,000,000 for each of fiscal years 2011 through 2014.

210.

Reducing lead in drinking water

(a)

Definitions

In this section:

(1)

Eligible entity

The term eligible entity means—

(A)

a community water system (as defined in section 1401 of the Safe Drinking Water Act (42 U.S.C. 300f));

(B)

a system located in an area governed by an Indian Tribe (as defined in that section);

(C)

a nontransient noncommunity water system;

(D)

a qualified nonprofit organization, as determined by the Administrator; and

(E)

a municipality or State, interstate, or intermunicipal agency.

(2)

Lead reduction project

The term lead reduction project means a project or activity the primary purpose of which is to reduce the level of lead in water for human consumption by—

(A)

replacement of publicly owned lead service lines;

(B)

capital costs, testing, planning, or other relevant activities, as determined by the Administrator, to identify and address conditions (including corrosion control) that contribute to increased lead levels in water for human consumption;

(C)

assistance to low-income homeowners to replace privately owned service lines, pipes, fittings, or fixtures that contain lead; and

(D)

education of consumers regarding measures to reduce exposure to lead from drinking water or other sources.

(3)

Low-income

The term low-income, with respect to an individual provided assistance under this section, has such meaning as may be given the term by the head of the municipality or State, interstate, or intermunicipal agency with jurisdiction over the area to which assistance is provided.

(4)

Municipality

The term municipality means—

(A)

a city, town, borough, county, parish, district, association, or other public entity established by, or pursuant to, applicable State law; and

(B)

an Indian tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)).

(b)

Grant program

(1)

Establishment

Not later than 180 days after the date of enactment of this Act, the Administrator shall establish a grant program to provide assistance to eligible entities for lead reduction projects in the United States.

(2)

Evaluation

In providing assistance under this section, the Administrator shall evaluate—

(A)

whether an eligible entity applying for assistance has taken steps to identify the source of lead in water for human consumption; and

(B)

the means by which the proposed lead reduction project would reduce lead levels in the applicable water system.

(3)

Priority application

In providing grants under this subsection, the Administrator shall give priority to an eligible entity that—

(A)

carries out a lead reduction project at a public water system or nontransient noncommunity water system that has exceeded the lead action level established by the Administrator at any time during the 3-year period preceding the date of submission of the application of the eligible entity;

(B)

addresses lead levels in water for human consumption at a school, daycare, or other facility that primarily serves children or another vulnerable human subpopulation; or

(C)

addresses such priority criteria as the Administrator may establish, consistent with the goal of reducing lead levels of concern.

(4)

Cost sharing

(A)

In general

Subject to subparagraph (B), the non-Federal share of the total cost of a project funded by a grant under this subsection shall be not less than 20 percent.

(B)

Waiver

The Administrator may reduce or eliminate the non-Federal share under subparagraph (A) for reasons of affordability, as the Administrator determines to be appropriate.

(5)

Low-income assistance

(A)

In general

Subject to subparagraphs (B) and (C), an eligible entity may use a grant provided under this subsection to provide assistance to low-income homeowners to carry out lead reduction projects.

(B)

Low-income assistance cap

Of the funds made available to carry out this section, not more than $5,000,000 may be allocated to provide assistance to low-income homeowners under this paragraph for any fiscal year.

(C)

Limitation

The amount of a grant provided to a low-income homeowner under this paragraph shall not exceed $5,000.

(6)

Special consideration for lead service line replacement

In carrying out lead service line replacement using a grant under this subsection, an eligible entity shall—

(A)

notify customers of the replacement of any publicly owned portion of the lead service line;

(B)

offer to replace the privately owned portion of the lead service line at the cost of replacement;

(C)

recommend measures to avoid exposure to short-term increases in lead levels following a partial lead service line replacement; and

(D)

demonstrate that the eligible entity has considered multiple options for reducing lead in drinking water, including an evaluation of options for corrosion control.

(c)

Authorization of appropriations

There is authorized to be appropriated to carry out this section $60,000,000 for each of fiscal years 2010 through 2014.

III

Miscellaneous

301.

Definition of Academy

In this title, the term Academy means the National Academy of Sciences.

302.

Program for water quality enhancement and management

(a)

Innovative technology and alternative approaches grant program

(1)

In general

Not later than 2 years after the date of enactment of this Act, the Administrator shall establish a program to provide grants to, and enter into contracts and cooperative agreements with, research institutions, institutions of higher education, National Laboratories, and other appropriate entities (including consortia of such institutions and entities), through a competitive process, in accordance with the plan developed under subsection (b), for research regarding, and development of the use of, innovative and alternative technologies to improve water quality, drinking water supply, or water use efficiency and conservation.

(2)

Types of projects

In carrying out this subsection, the Administrator may select projects relating to such matters as innovative or alternative technologies, approaches, practices, or methods—

(A)

to increase the effectiveness and efficiency of water and wastewater infrastructure through the use of integrated water resource management;

(B)

to increase the effectiveness and efficiency of public water systems, including—

(i)

source water protection;

(ii)

water use reduction;

(iii)

water collection, storage, and treatment and reuse of rainwater, stormwater, and graywater;

(iv)

identification of behavioral, social, and economic barriers to achieving greater water use efficiency;

(v)

use of watershed planning directed toward water quality, conservation, and supply;

(vi)

actions to reduce energy consumption;

(vii)

water treatment;

(viii)

water distribution and wastewater collection systems;

(ix)

desalination; and

(x)

water security;

(C)

to encourage the use of innovative or alternative technologies or approaches relating to water supply or availability;

(D)

to increase the effectiveness and efficiency of new and existing treatment works, including—

(i)

methods of collecting, treating, dispersing, reusing, reclaiming, and recycling wastewater;

(ii)

system design;

(iii)

nonstructural alternatives;

(iv)

decentralized approaches;

(v)

stormwater and wastewater reuse;

(vi)

water use efficiency and conservation;

(vii)

actions to reduce energy consumption;

(viii)

technologies to extract energy from wastewater; and

(ix)

wastewater security;

(E)

to increase the effectiveness and efficiency of municipal separate storm sewer systems and combined sewer systems, including through the use of soil and vegetation or other permeable materials;

(F)

to promote new water treatment technologies and management approaches, including commercialization and dissemination strategies for adoption of innovative water, wastewater, and stormwater technologies and management approaches or low-impact development technologies in the homebuilding industry; or

(G)

to maintain a clearinghouse of technologies and management approaches developed under this subsection and subsections (c) and (d) at a research consortium or institute or other appropriate organization, as determined by the Administrator.

(3)

Factors for consideration

In planning and implementing the program under this subsection, the Administrator shall take into consideration—

(A)

research needs identified by water resource managers, State and local governments, and other interested parties; and

(B)

technologies and processes likely to achieve the greatest increases in water quality, drinking water supply, or water use efficiency and conservation.

(4)

Minority-serving institutions

In carrying out the program under this subsection, the Administrator—

(A)

may provide extramural grants to institutions of higher education; and

(B)

shall encourage participation by minority-serving institutions.

(b)

Strategic research plan

(1)

In general

Not later than 180 days after the date of enactment of this Act, the Administrator, in coordination with the heads of other appropriate Federal departments and agencies, shall develop a strategic research plan for the grant program under subsection (a).

(2)

Requirements

(A)

Coordination

The plan under paragraph (1) shall be carried out, to the maximum extent practicable, in coordination with other research and development strategic plans of the Environmental Protection Agency.

(B)

Contents

The plan under paragraph (1) shall—

(i)

describe, in outline form, research goals and priorities relating to an agenda of water quality, drinking water supply, and water use efficiency and conservation, including—

(I)

developing innovative water supply-enhancing processes and technologies;

(II)

improving existing processes and technologies, including wastewater treatment, desalination, and groundwater recharge and recovery schemes;

(III)

improving the effectiveness and efficiency of nontraditional wastewater treatment practices, including nonstructural alternatives, low-impact development techniques, and decentralized approaches; and

(IV)

exploring concepts that extract energy from wastewater;

(ii)
(I)

identify current Federal water-related research efforts directed toward achieving the goals of improving water quality, water use efficiency, or water conservation or expanding water supply; and

(II)

describe the means by which those efforts are coordinated with the program established under subsection (a) in order to leverage resources and avoid duplication;

(iii)

take into consideration the public health and environmental quality impacts and cost-effectiveness of each relevant technology and approach; and

(iv)

take into consideration and incorporate, as appropriate, recommendations contained in reports and studies conducted by Federal departments and agencies, the National Research Council, the National Science and Technology Council, and other appropriate entities.

(3)

Science Advisory Board review

The Administrator shall submit the plan under paragraph (1) to the Science Advisory Board of the Environmental Protection Agency for review.

(4)

Revisions

The plan under paragraph (1) shall be revised and amended as necessary to reflect updated scientific findings and national research priorities.

(c)

Municipalities grant program

(1)

Definition of municipality

In this subsection, the term municipality means—

(A)

a city, town, borough, county, parish, district, association, authority, or other public entity established by, or pursuant to, State law; or

(B)

an Indian tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)).

(2)

Establishment

Not later than 90 days after the date of publication of the initial report under subsection (e)(2), the Administrator shall establish a nationwide demonstration grant program—

(A)

to promote innovations in technology and alternative approaches to water quality management or water supply developed under subsection (a); and

(B)

to reduce costs to municipalities incurred in complying with the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) and the Safe Drinking Water Act (42 U.S.C. 300f et seq.) through the approaches and technologies developed under subsection (a).

(3)

Scope

The demonstration grant program shall consist of up to 10 projects each year, to be carried out in municipalities selected by the Administrator under paragraph (5).

(4)

Applications

A municipality that seeks to participate in the demonstration grant program established under this subsection shall submit to the Administrator a plan that—

(A)

is developed in coordination with—

(i)

the agencies of the State having jurisdiction over water quality and water supply matters; and

(ii)

interested stakeholders, including institutions of higher education and related research institutions;

(B)

describes water impacts specific to urban or rural areas;

(C)

includes a strategy under which the municipality, through participation in the demonstration grant program, could effectively—

(i)

address water quality or water supply problems; and

(ii)

achieve the water quality goals that—

(I)

could be achieved using more traditional methods; and

(II)

are required under the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) or the Safe Drinking Water Act (42 U.S.C. 300f et seq.); and

(D)

includes a schedule for achieving the water quality, water supply, or water use efficiency and conservation goals of the municipality.

(5)

Categories of projects

(A)

In general

In carrying out the demonstration grant program, the Administrator shall provide grants for—

(i)

projects relating to water supply, water quality, or water use efficiency and conservation matters described in subsection (a)(2); and

(ii)

subject to subparagraph (B), not less than 2 projects for the incorporation into a building of the most current water use efficiency and conservation technologies and designs.

(B)

Projects for incorporation

(i)

Incremental cost limitation

A grant provided under subparagraph (A)(ii) may be used only to pay the incremental costs of incorporation into a building of a water use efficiency and conservation technology or design.

(ii)

Types of buildings

Of the projects for which grants are provided under subparagraph (A)(ii)—

(I)

at least 1 shall be for a residential building; and

(II)

at least 1 shall be for a commercial building.

(iii)

Public availability

The design of each building for which a grant is provided under subparagraph (A)(ii) shall be made available to the public, and each such building shall be accessible to the public for tours and educational purposes.

(6)

Responsibilities of Administrator

In providing grants for projects under this subsection, the Administrator shall—

(A)

ensure, to the maximum extent practicable, that—

(i)

the demonstration grant program under this subsection includes a variety of projects with respect to—

(I)

geographical distribution;

(II)

innovative technologies used for the projects; and

(III)

nontraditional approaches (including low-impact development technologies) used for the projects; and

(ii)

each category of project described in paragraph (5) 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 community having a population of 10,000 or fewer individuals receives a grant for each fiscal 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 subsection.

(7)

Cost sharing

(A)

In general

Except as provided in subparagraph (B), the non-Federal share of the total cost of a project funded by a grant under this subsection shall be not less than 20 percent.

(B)

Waiver

The Administrator may reduce or eliminate the non-Federal share of the cost of a project for reasons of affordability.

(d)

Incorporation of results and information

(1)

Technology transfer

The Administrator, taking into consideration the results of the projects carried out using grants under subsections (a) and (c), shall—

(A)

facilitate the adoption of technologies and processes to promote increased water quality, drinking water supply, and water use efficiency and conservation; and

(B)

collect and disseminate information, including through the establishment of a publicly accessible clearinghouse, regarding those technologies and processes, including information on—

(i)

incentives and impediments to development and commercialization;

(ii)

best practices; and

(iii)

anticipated increases in water quality, drinking water supply, and water use efficiency and conservation resulting from the implementation of specific technologies and processes.

(2)

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 other programs administered by the Administrator.

(e)

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 of the recipient and on each of the dates that is 1, 2, and 3 years after that date, a report that describes the effectiveness of the project.

(2)

Reports to Congress

Not later than 2 years after the date of enactment of this Act, and not less frequently than once every 2 years thereafter, the Administrator shall submit to the Committee on Environment and Public Works of the Senate and the Committees on Transportation and Infrastructure and Energy and Commerce of the House of Representatives a report describing—

(A)

the findings of each recipient of a grant under subsection (a) with respect to the identification of any potential new technology or management approach developed by the recipient; and

(B)

the status and results of the grant program under subsection (c).

(f)

Water management study and report

(1)

Definitions

In this subsection:

(A)

Low-impact approach

The term low-impact approach means a strategy that manages rainfall at the source using decentralized microscale controls to mimic the predevelopment hydrology of the relevant site by using a design technique that infiltrates, filters, stores, evaporates, and detains runoff close to the source.

(B)

Soft path approach

The term soft path approach means a general framework that encompasses—

(i)

increased efficiency of water use;

(ii)

integration of water supply, wastewater treatment, and stormwater management systems; and

(iii)

protection, restoration, and effective use of the natural capacities of ecosystems to provide clean water.

(2)

Study

(A)

In general

Not later than 60 days after the date of enactment of this Act, the Administrator shall enter into an arrangement with the National Academy of Sciences under which the Academy shall conduct a study, by not later than 2 years after that date, of innovative, effective, and systematic approaches for the management of water supply, wastewater, and stormwater.

(B)

Contents

The study shall—

(i)

be based on and enhance, to the maximum extent practicable, relevant studies previously conducted by the Academy;

(ii)

focus in particular on soft-path approaches and low-impact approaches to the management described in subparagraph (A);

(iii)

take into consideration the costs of each approach analyzed by the study;

(iv)

examine and compare the state of research, technology development, and emerging practices in other developed and developing countries with those in the United States;

(v)

identify and evaluate relevant system approaches for comprehensive water management, including the interrelationship of water systems with other major systems, such as energy and transportation systems;

(vi)

identify priority research and development needs; and

(vii)

assess implementation needs and barriers.

(C)

Authorization of appropriations

There is authorized to be appropriated to carry out this paragraph $1,000,000 for the period of fiscal years 2010 through 2012.

(3)

Report

(A)

In general

Not later than 3 years after the date of enactment of this Act, the Administrator shall submit to the Committee on Environment and Public Works of the Senate and the Committee on Science and Technology of the House of Representatives a report describing the key findings of the study under paragraph (2).

(B)

Inclusions

The report under subparagraph (A) shall include—

(i)

an evaluation of relevant challenges and opportunities; and

(ii)

recommendations for innovative and integrated solutions for use as a practical reference by water managers, planners, developers, scientists, engineers, nongovernmental organizations, Federal departments and agencies, and regulators.

(g)

Authorization of Appropriations

There is authorized to be appropriated to carry out this section $40,000,000 for each of fiscal years 2010 through 2014.

303.

Agricultural watershed sustainability technology grant program

(a)

Definitions

In this section:

(1)

Agricultural commodity

The term agricultural commodity means—

(A)

agricultural, horticultural, viticultural, and dairy products;

(B)

livestock and the products of livestock;

(C)

the products of poultry and bee raising;

(D)

the products of forestry; and

(E)

other commodities raised or produced on agricultural sites, as determined to be appropriate by the Secretary of Agriculture.

(2)

Agricultural project

The term agricultural project means an agricultural watershed sustainability technology pilot project that, as determined by the Administrator—

(A)

is carried out at an agricultural site;

(B)
(i)

achieves demonstrable improvements in water quality that meet or exceed those mandated by statutory or regulatory requirements; or

(ii)

improves water use efficiency; and

(C)

will not substantially adversely affect agricultural commodity production, yield, profitability, or any other long-term environmental medium, including air and groundwater resources.

(3)

Agricultural site

The term agricultural site means a farming or ranching operation of a producer in the United States.

(4)

Producer

The term producer means any person or group of persons (including an irrigation district and a drainage district) engaged in the production and sale of an agricultural commodity that owns, or shares the ownership and risk of loss of, the agricultural commodity.

(5)

Revolving fund

The term revolving fund means an agricultural watershed sustainability technology revolving fund—

(A)

that is established by a State using amounts provided under subsection (b)(1);

(B)

that is maintained and credited with repayments; and

(C)

the balance of which shall be available in perpetuity for providing financial assistance.

(b)

Grants for agricultural State revolving funds

(1)

In general

As soon as practicable after the date of enactment of this section, the Administrator shall provide to each eligible State described in paragraph (2) 1 or more capitalization grants, that cumulatively equal no more than $1,000,000 per State, for use in establishing, within an agency of the State having jurisdiction over agriculture or environmental quality, an agricultural watershed sustainability technology revolving fund.

(2)

Eligible States

An eligible State referred to in paragraph (1) is a State that agrees, prior to receipt of a capitalization grant under paragraph (1)—

(A)

to establish, and deposit the funds from the grant in, a revolving fund;

(B)

to provide, at a minimum, a State share in an amount equal to 20 percent of the capitalization grant;

(C)

to use amounts in the revolving fund to make loans to producers in accordance with subsection (c); and

(D)

to return amounts in the revolving fund if no loan applications are granted within 2 years of the receipt of the initial capitalization grant.

(c)

Loans to producers

(1)

Use of funds

A State that establishes a revolving fund under subsection (b)(2) shall use amounts in the revolving fund to provide loans to producers for use in designing and constructing agricultural projects.

(2)

Maximum amount of loan

The amount of a loan made to a producer using funds from a revolving fund shall not exceed $250,000, in the aggregate, for all agricultural projects serving an agricultural site of the producer.

(3)

Conditions on loans

A loan made to a producer using funds from a revolving fund shall—

(A)

have an interest rate that is not more than the market interest rate, including an interest-free loan; and

(B)

be repaid to the revolving fund not later than 20 years after the date on which funds are initially disbursed.

(d)

Requirements for producers

(1)

In general

A producer that seeks to receive a loan from a revolving fund shall—

(A)

submit to the State within the jurisdiction of which the agricultural site of the producer is located an application that—

(i)

contains such information as the State may require; and

(ii)

demonstrates, to the satisfaction of the State, that each project proposed to be carried out with funds from the loan is an agricultural project; and

(B)

agree to expend all funds from a loan in an expeditious and timely manner, as determined by the State.

(2)

Maximum percentage of agricultural project cost

Subject to subsection (c)(2), a producer that receives a loan from a revolving fund may use funds from the loan to pay up to 100 percent of the cost of carrying out an agricultural project.

(e)

Authorization of appropriations

There is authorized to be appropriated to carry out this section $50,000,000.

304.

State revolving fund review process

As soon as practicable after the date of enactment of this Act, the Administrator shall—

(1)

consult with States, utilities, nonprofit organizations, and other Federal agencies providing financial assistance to identify ways to expedite and improve the application and review process, for the provision of assistance from—

(A)

the State water pollution control revolving funds established under title VI of the Federal Water Pollution Control Act (33 U.S.C. 1381 et seq.); and

(B)

the State drinking water treatment revolving loan funds established under section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j–12);

(2)

in carrying out this section, the Administrator shall consider the needs of small treatment works (as defined by section 222 of the Federal Water Pollution Control Act and small public water systems (as described in section 1433(d) of the Safe Drinking Water Act (42 U.S.C. 300i–2(d));

(3)

take such administrative action as is necessary to expedite and improve the process as the Administrator has authority to take under existing law;

(4)

collect information relating to innovative approaches taken by any State to simplify the application process of the State, and provide the information to each State; and

(5)

submit to Congress a report that, based on the information identified under paragraph (1), contains recommendations for legislation to facilitate further streamlining and improvement of the process.

305.

Cost of service study

(a)

In general

Not later than 2 years after the date of enactment of this Act, the Administrator shall enter an arrangement with the Academy under which the Academy shall complete and provide to the Administrator the results of a study of the means by which public water systems and treatment works selected by the Academy in accordance with subsection (c) meet the costs associated with operations, maintenance, capital replacement, and regulatory requirements.

(b)

Required elements

(1)

Affordability

The study shall, at a minimum—

(A)

determine whether the rates at public water systems and treatment works for communities included in the study were established using a full-cost pricing model;

(B)

if a full-cost pricing model was not used, identify any incentive rate systems that have been successful in significantly reducing—

(i)

per capita water demand;

(ii)

the volume of wastewater flows;

(iii)

the volume of stormwater runoff; or

(iv)

the quantity of pollution generated by stormwater;

(C)

identify a set of best industry practices that public water systems and treatment works may use in establishing a rate structure that—

(i)

adequately addresses the true cost of services provided to consumers by public water systems and treatment works, including infrastructure replacement;

(ii)

encourages water conservation; and

(iii)

takes into consideration the needs of disadvantaged individuals and communities, as identified by the Administrator;

(D)

identify existing standards for affordability and the manner in which those standards are determined and defined;

(E)

determine the manner in which affordability varies with respect to communities of different sizes and in different regions; and

(F)

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).

(2)

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 Academy 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)

Use of results of study

On receipt of the results of the study, the Administrator shall—

(1)

submit the study to Congress;

(2)

submit a report that describes the results of the study; and

(3)

make the results available to treatment works and public water systems for use by the publicly owned treatment works and public water systems, on a voluntary basis, in determining whether 1 or more new approaches may be implemented at facilities of the publicly owned treatment works and public water systems.

(e)

Authorization of appropriations

There is authorized to be appropriated to carry out this section $1,000,000 for each of fiscal years 2010 and 2014.

306.

Effective utility management strategies

(a)

Definitions

In this section:

(1)

Effective utility management strategy

The term effective utility management strategy means a strategy for the operation and management of a utility that, as determined by the Administrator, incorporates the following attributes:

(A)

Product quality.

(B)

Stakeholder understanding and support.

(C)

Customer satisfaction.

(D)

Employee development.

(E)

Operational optimization.

(F)

Financial viability.

(G)

Infrastructure stability.

(H)

Operational resiliency.

(I)

Community sustainability.

(J)

Water resource adequacy.

(2)

Utility

The term utility means—

(A)

a treatment works (as defined in section 212 of the Federal Water Pollution Control Act (33 U.S.C. 1292)); and

(B)

a public water system (as defined in section 1401 of the Safe Drinking Water Act (42 U.S.C. 300f)).

(b)

Action by Administrator

The Administrator may carry out training programs, provide technical assistance, and disseminate information regarding effective utility management strategies, including by—

(1)

providing seminars and workshops (including electronic-based seminars and workshops), conferences, and other educational programs and developing curricula to advance effective utility management strategies;

(2)

offering support and advice (including financial, operational, and management advice) to utility operators and managers regarding effective utility management strategies; and

(3)

publishing and disseminating manuals on best management practices and other relevant information, success stories, and lessons learned relating to effective utility management strategies.

(c)

Partner organizations

In carrying out subsection (b), the Administrator may enter into cooperative agreements, as the Administrator determines to be appropriate, with—

(1)

stakeholder associations;

(2)

qualified nonprofit organizations; and

(3)

other relevant organizations, as determined by the Administrator.

(d)

Authorization of appropriations

There is authorized to be appropriated to carry out this section $1,000,000 for each of fiscal years 2010 through 2014.

307.

WaterSense Program

(a)

Establishment

There is established within the Environmental Protection Agency a program, to be known as the WaterSense Program, to identify and promote voluntary approaches to increase water efficiency in the United States to reduce the strain on water and wastewater infrastructure and conserve water resources for future generations through voluntary labeling, promotion, or other forms of communication regarding water efficient products, programs, processes, buildings, landscapes, facilities, and services that meet the highest water conservation and performance standards.

(b)

Administration

The WaterSense Program shall be carried out by the Administrator.

(c)

Duties

In carrying out the WaterSense Program, the Administrator shall—

(1)

establish—

(A)

a WaterSense label to be used for certain items; and

(B)

the procedure by which an item may be certified to display the WaterSense label;

(2)

promote products displaying the WaterSense label as the preferred technologies in the market place for—

(A)

reducing water use; and

(B)

ensuring product performance;

(3)

work to enhance public awareness of the WaterSense label;

(4)

preserve the integrity of the WaterSense label by—

(A)

developing specifications to ensure reliable performance of WaterSense-labeled products, buildings, landscapes, and services;

(B)

overseeing WaterSense certifications made by third parties;

(C)

conducting reviews of the use of the WaterSense label in the marketplace and taking corrective action in any case in which misuse of the label is identified; and

(D)

carrying out such other measures as the Administrator determines to be appropriate;

(5)

regularly research and update WaterSense product criteria for each applicable category of products;

(6)

solicit comments from interested parties before establishing or revising a WaterSense product category, specification, or criterion (or before the effective date for any such product category, specification, or criterion, as applicable);

(7)

on adoption of a new or revised product category, specification, or criterion, provide reasonable notice to interested parties regarding—

(A)

any change (including a change of effective date) to the product category, specification, or criterion;

(B)

an explanation of the change; and

(C)

as appropriate, responses to comments submitted by interested parties regarding the product category, specification, or criterion;

(8)

provide appropriate lead time, as determined by the Administrator, before the applicable effective date for a new or significant revision to a product category, specification, or criterion, taking into account the timing requirements of the manufacturing, product marketing, and distribution process for the specific product, programs, processes, buildings, landscapes, facilities, or services addressed; and

(9)

identify and, where appropriate, implement other voluntary approaches in commercial, institutional, and industrial sectors to improve water efficiency.

(d)

Annual reports

Not less frequently than once each year, the Administrator shall prepare and make publicly available a report describing the activities carried out under this section, including, to the maximum extent practicable—

(1)

available information regarding sales in each WaterSense product category; and

(2)

the savings of water, energy, and capital costs of water, wastewater, and stormwater infrastructure attributable to the WaterSense program and each category of WaterSense product, expressed on a national, regional, State, and watershed level.

(e)

Authorization of appropriations

There is authorized to be appropriated to carry out this section—

(1)

$5,000,000 for each of fiscal years 2010 and 2011;

(2)

$7,500,000 for each of fiscal years 2012 and 2013; and

(3)

$10,000,000 for fiscal year 2014.

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.

Sec. 2. Definition of Administrator.

TITLE I—Water pollution infrastructure

Sec. 101. Technical assistance for rural small treatment works and medium treatment works.

Sec. 102. Preservation of employee labor standards.

Sec. 103. Projects eligible for assistance.

Sec. 104. Affordability.

Sec. 105. Water pollution control revolving loan funds.

Sec. 106. Transferability of funds.

Sec. 107. Noncompliance.

Sec. 108. Negotiation of contracts.

Sec. 109. Allotment of funds.

Sec. 110. Authorization of appropriations.

Sec. 111. Sewer overflow control grants.

Sec. 112. Critical water infrastructure projects.

TITLE II—Safe drinking water infrastructure

Sec. 201. Drinking water technical assistance for communities.

Sec. 202. Preservation of employee labor standards.

Sec. 203. Preconstruction work.

Sec. 204. Priority system requirements.

Sec. 205. Affordability.

Sec. 206. Safe drinking water revolving loan funds.

Sec. 207. Other authorized activities.

Sec. 208. Authorization of appropriations.

Sec. 209. Negotiation of contracts.

Sec. 210. Critical drinking water infrastructure projects.

Sec. 211. Reducing lead in drinking water.

TITLE III—Miscellaneous

Sec. 301. Definition of Academy.

Sec. 302. Program for water quality enhancement and management.

Sec. 303. Agricultural watershed sustainability technology grant program.

Sec. 304. State revolving fund review process.

Sec. 305. Cost of service study.

Sec. 306. Effective utility management strategies.

Sec. 307. WaterSense Program.

Sec. 308. Pharmaceuticals and personal care products.

Sec. 309. Financing capability guidance.

2.

Definition of Administrator

In this Act, the term Administrator means the Administrator of the Environmental Protection Agency.

I

Water pollution infrastructure

101.

Technical assistance for rural small treatment works and medium treatment works

(a)

In general

Title II of the Federal Water Pollution Control Act (33 U.S.C. 1281 et seq.) is amended by adding at the end the following:

222.

Technical assistance for rural small treatment works and medium treatment works

(a)

Definitions

In this section:

(1)

Advanced decentralized wastewater system

The term advanced decentralized wastewater system means a decentralized wastewater system that provides more effective treatment than a conventional septic system.

(2)

Decentralized wastewater system

(A)

In general

The term decentralized wastewater system means a wastewater treatment system that is at or near a site at which wastewater is generated.

(B)

Inclusions

The term decentralized wastewater system includes a system that provides for—

(i)

nonpotable reuse of treated effluent; or

(ii)

energy and nutrient recovery from wastewater constituents.

(3)

Medium treatment works

The term medium treatment works means a publicly owned treatment works serving more than 10,000 but fewer than 100,000 individuals.

(4)

Qualified nonprofit technical assistance provider

The term qualified nonprofit technical assistance provider means a qualified nonprofit technical assistance provider of water and wastewater services to small or medium-sized communities that provides technical assistance (including circuit rider, multi-State regional assistance programs, and training and preliminary engineering evaluations) to owners and operators of small treatment works or medium treatment works that may include State agencies.

(5)

Small treatment works

The term small treatment works means a publicly owned treatment works serving not more than 10,000 individuals.

(b)

Grant program

(1)

In general

The Administrator may make grants on a competitive basis to qualified nonprofit technical assistance providers that are qualified to provide assistance on a broad range of wastewater and stormwater approaches—

(A)

to assist owners and operators of small treatment works and medium treatment works to plan, develop, and obtain financing for eligible projects described in section 603(c) or 518(c);

(B)

to provide financial assistance, in consultation with the State in which the assistance is provided, to owners and operators of small treatment works and medium treatment works for predevelopment costs (including costs for planning, design, and associated preconstruction activities, such as activities relating directly to the siting of the facility and related elements) associated with stormwater or wastewater infrastructure projects or short-term costs incurred for equipment replacement that is not part of regular operation and maintenance activities for existing stormwater or wastewater systems, if the amount of assistance for any single project does not exceed $50,000;

(C)

to provide technical assistance and training for owners and operators of small treatment works and medium treatment works 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 owners and operators of small treatment works and medium treatment works, with respect to planning, design, construction, and operation of treatment works, small municipal separate storm sewer systems, decentralized wastewater treatment systems, and advanced 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 agree to consult with each State in which grant funds are to be expended before the grant funds are expended in the State.

(4)

Annual report

Not later than 60 days after the end of each fiscal year, a qualified nonprofit technical assistance provider that receives a grant under this subsection 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 subsection for the fiscal year; and

(B)

specifies—

(i)

the number of communities served;

(ii)

the sizes of those communities; and

(iii)

the type of assistance provided by the qualified nonprofit technical assistance provider.

(c)

Authorization of appropriations

There are authorized to be appropriated to carry out this section—

(1)

for grants for small treatment works, $25,000,000 for each of fiscal years 2010 through 2014; and

(2)

for grants for medium treatment works, $15,000,000 for each of fiscal years 2010 through 2014.

.

(b)

Guidance for small systems

Section 602 of the Federal Water Pollution Control Act (33 U.S.C. 1382) is amended by adding at the end the following:

(c)

Guidance for small systems

(1)

Definition of small system

In this subsection, the term small system means a system—

(A)

for which a municipality or intermunicipal, interstate, or State agency seeks assistance under this title; and

(B)

that serves a population of not more than 10,000 individuals.

(2)

Simplified procedures

Not later than 1 year after the date of enactment of this subsection, the Administrator shall assist the States in establishing simplified procedures for small systems to obtain assistance under this title.

(3)

Publication of manual

Not later than 1 year after the date of enactment of this subsection, after providing notice and opportunity for public comment, the Administrator shall publish—

(A)

a manual to assist small systems in obtaining assistance under this title; and

(B)

in the Federal Register, notice of the availability of the manual.

.

102.

Preservation of employee labor standards

Section 513 of the Federal Water Pollution Control Act (33 U.S.C. 1372) is amended to read as follows:

513.

Preservation of employee labor standards

(a)

In general

Notwithstanding section 602(b)(6), the Administrator shall take such action as the Administrator determines to be necessary to ensure that each laborer and mechanic employed by a contractor or subcontractor of a construction project financed, in whole or in part, by a grant, loan, loan guarantee, refinancing, or any other form of financial assistance provided under this Act (including assistance provided by a State loan fund established under title VI) is paid wages at a rate of not less than the wages prevailing for the same type of work on similar construction in the immediate locality, as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code.

(b)

Authority of Secretary of Labor

With respect to the labor standards specified in this section, the Secretary of Labor shall have the authority and functions established in Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App.) and section 3145 of title 40, United States Code.

.

103.

Projects eligible for assistance

(a)

In general

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 in each State water pollution control revolving fund shall be used only for providing financial assistance—

(A)

to a municipality or an intermunicipal, interstate, or State agency or a private treatment works or decentralized wastewater system that principally treats municipal wastewater or domestic sewage—

(i)

for construction of treatment works (as defined in section 212); or

(ii)

for capital costs associated with monitoring equipment for combined sanitary or sewer overflows;

(B)

to implement measures to control, manage, reduce, treat, infiltrate, or reuse stormwater, the primary purpose of which is the preservation, protection, or enhancement of water quality to support public purposes (including the procurement and use of equipment to support minimum measures, such as street sweeping and storm drain system cleaning, or acquisition of other land and interests in land that are necessary for those activities and measures);

(C)

to implement a management program established under section 319;

(D)

to develop and implement a conservation and management plan under section 320;

(E)

for projects to increase the security of wastewater treatment works (as defined in section 212), excluding any expenditure for operations or maintenance;

(F)

to carry out water conservation or efficiency projects that result in direct water quality benefits;

(G)

to implement measures to integrate water resource management planning and implementation;

(H)

to carry out water reuse (including wastewater reuse), reclamation, and recycling projects that result in direct water quality benefits;

(I)

for projects to increase the energy efficiency of treatment works (as defined in section 212) that result in direct water quality benefits;

(J)

for the development and implementation of utility management improvement plans consistent with an effective utility management strategy (as defined in section 306(a) of the Water Infrastructure Financing Act); and

(K)

for the development and implementation of integrative watershed improvement plans that include cost-effective solutions that consider point and nonpoint sources of pollution and traditional and cost-saving water treatment and efficiency projects.

(2)

Limitation

Not more than 5 percent of the amount of a capitalization grant of a State may be used during a fiscal year to provide assistance for activities described in subparagraph (J) or (K) of paragraph (1).

(3)

State water pollution control revolving funds

(A)

In general

A State water pollution control revolving fund shall be established, maintained, and credited with repayments.

(B)

Balance of fund

The balance of each fund described in subparagraph (A) shall be available in perpetuity for providing financial assistance under this section.

.

(b)

Modification of definition

Section 212(2)(A) of the Federal Water Pollution Control Act (33 U.S.C. 1292(2)(A)) is amended—

(1)

by striking and any works, including site;

(2)

by striking is used for ultimate and inserting will be used for ultimate; and

(3)

by inserting ; and acquisition of other land and interests in land necessary for construction before the period at the end.

104.

Affordability

(a)

In General

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 (g) through (j), respectively;

(2)

in subsection (d)—

(A)

in paragraph (1)—

(i)

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

(ii)

in subparagraph (B), by striking not later than 20 years after project completion and inserting upon the expiration of the term of the loan;

(B)

in paragraph (6), by striking and at the end; and

(C)

in paragraph (7), by striking title, except that and all that follows and inserting the following:

title, except that—

(A)

such amounts shall not exceed an amount equal to the sum of, for each fiscal year—

(i)

an amount equal to the greatest of—

(I)

$400,000;

(II)

1/5 percent of the current valuation of the fund; or

(III)

6 percent of all grant awards to the fund under this title for a fiscal year; and

(ii)

the amount of any fees collected by the State for that purpose, regardless of the source; and

(B)

as a source of revenue (restricted solely to interest earnings of the fund) or security for payment of the principal and interest on revenue or general obligation bonds issued by the State to provide matching funds under section 602(b)(2), if the proceeds of the sale of the bonds will be deposited in the fund.

; and

(3)

by inserting after subsection (d) the following:

(e)

Additional assistance for disadvantaged communities

(1)

Definition of disadvantaged community

In this subsection, the term disadvantaged community means a community with a 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, subject to paragraph (5), 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—

(A)

the forgiveness of all or a portion of the principal of the loan; and

(B)

a negative interest rate on 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)

Information

The Administrator may publish information to assist States in establishing affordability criteria described in paragraph (1).

(f)

Cost-saving water treatment and efficiency improvements

(1)

In general

Subject to subsection (e)(3), in providing a loan for a project under this section, a State may forgive repayment of a portion of the loan amount up to the percentage of the project that is devoted to alternative approaches to wastewater and stormwater controls (including nonstructural methods), such as projects that treat or minimize sewage or urban stormwater discharges using—

(A)

decentralized or distributed stormwater controls;

(B)

advanced decentralized wastewater treatment;

(C)

low-impact development technologies and nonstructural approaches;

(D)

stream buffers;

(E)

wetland restoration and enhancement;

(F)

actions to minimize the quantity of and direct connections to impervious surfaces;

(G)

soil and vegetation, or other permeable materials;

(H)

actions that increase efficient water use, water conservation, or water reuse, including the rehabilitation or replacement of existing leaking pipes; or

(I)

actions that increase energy efficiency or reduce energy consumption at a treatment works.

(2)

Treatment of loan forgiveness

The amount of loan forgiveness provided by a State under this subsection shall be—

(A)

credited to each State; and

(B)

deducted from the total amount of State capitalization grants for which matching funds are required from the State under section 602(b)(2).

.

(b)

Conforming Amendment

Section 221(d) of the Federal Water Pollution Control Act (33 U.S.C. 1301(d)) is amended in the second sentence by striking 603(h) and inserting 603(j).

105.

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 (i) (as redesignated by section 103(a)(1)) and inserting the following:

(i)

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, physical, or chemical treatment processes; and

(iii)

a direct point source discharge to surface water.

(2)

Priority system

In providing financial assistance from the water pollution control revolving fund of the State, the State shall establish a priority system that—

(A)

takes into consideration appropriate chemical, physical, and biological data relating to water quality that the State considers reasonably available and of sufficient quality;

(B)

ensures that projects undertaken with assistance under this title are designed to achieve, as determined by the State, the optimum water quality management, consistent with the public health and water quality goals and requirements of this Act;

(C)

provides for public notice and opportunity to comment on the establishment of the priority system and the summary under subparagraph (D); and

(D)

provides for the publication, not less than biennially in summary form, of a description of projects in the State that are eligible for assistance under this title that indicates—

(i)

the priority assigned to each project under the priority system of the State; and

(ii)

the funding schedule for each project, to the extent the information is available.

(3)

Weight given to applications

After determining project priorities under subparagraph (2), the State shall give greater weight to an application for assistance if the application includes such information as the State determines to be necessary and contains—

(A)

a description of utility management best practices undertaken by a treatment works applying for assistance, including—

(i)

an inventory of assets, including a description of the condition of those assets;

(ii)

a schedule for replacement of the assets;

(iii)

a financing plan that factors in all lifecycle costs indicating sources of revenue from ratepayers, grants, bonds, other loans, and other sources to meet the costs; and

(iv)

a review of options for restructuring the treatment works;

(B)

approaches other than a traditional wastewater approach that treat or minimize sewage or urban stormwater discharges using—

(i)

decentralized or distributed stormwater controls;

(ii)

advanced decentralized wastewater treatment;

(iii)

low-impact development technologies and nonstructural approaches;

(iv)

stream buffers;

(v)

wetland restoration and enhancement;

(vi)

actions to minimize the quantity of and direct connections to impervious surfaces;

(vii)

soil and vegetation, or other permeable materials;

(viii)

actions that increase efficient water use, water conservation, or water reuse; or

(ix)

actions that increase energy efficiency or reduce energy consumption at a treatment works;

(C)

a demonstration of consistency with State, regional, and municipal watershed plans, water conservation and efficiency plans, or integrated water resource management plans;

(D)

a proposal by the applicant demonstrating flexibility through alternative means to carry out responsibilities under Federal regulations, that may include watershed permitting and other innovative management approaches, while achieving results that—

(i)

the State, in the case of a permit program approved under section 402, determines will meet permit requirements; or

(ii)

the Administrator determines are measurably superior, as compared to regulatory standards; or

(E)

projects that address adverse environmental conditions.

.

106.

Transferability of funds

Section 603 of the Federal Water Pollution Control Act (33 U.S.C. 1383) (as amended by section 104(a)(1)) is amended by adding at the end the following:

(k)

Transfer of funds

(1)

In general

The Governor of a State may—

(A)
(i)

reserve not more than the greater of—

(I)

33 percent of a capitalization grant made under this title; or

(II)

33 percent of a capitalization grant made under section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j–12); and

(ii)

add the reserved funds to any funds provided to the State under section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j–12); and

(B)
(i)

reserve for any year an amount that does not exceed 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

(ii)

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)).

.

107.

Noncompliance

Section 603 of the Federal Water Pollution Control Act (33 U.S.C. 1383) (as amended by section 106) is amended by adding at the end the following:

(l)

Noncompliance

(1)

In general

Except as provided in paragraph (2), no assistance (other than assistance that is to be used by a treatment works solely for planning, design, or security purposes) shall be provided under this title to the owner or operator of a treatment works that has been in significant noncompliance with any requirement of this Act for any of the 4 quarters during the preceding 8 quarters, unless the treatment works is in compliance with an enforceable administrative order to effect compliance with the requirement.

(2)

Exception

An owner or operator of a treatment works that is determined under paragraph (1) to be in significant noncompliance with a requirement described in that paragraph may receive assistance under this title if the Administrator and the State providing the assistance determine that—

(A)

the entity conducting the enforcement action on which the determination of significant noncompliance is based has determined that the use of assistance would enable the owner or operator of the treatment works to take corrective action toward resolving the violations; or

(B)

the entity conducting the enforcement action on which the determination of significant noncompliance is based has determined that the assistance would be used by the owner or operator of the treatment works in order to assist owners and operators in making progress towards compliance.

.

108.

Negotiation of contracts

Section 603 of the Federal Water Pollution Control Act (33 U.S.C. 1383) (as amended by section 107) is amended by adding at the end the following:

(m)

Negotiation of contracts

For communities with populations of more than 10,000 individuals, a contract to be carried out using funds directly made available by a capitalization grant under this section for program management, construction management, feasibility studies, preliminary engineering, design, engineering, surveying, mapping, or architectural or related services shall be negotiated in the same manner as—

(1)

a contract for architectural and engineering services is negotiated under chapter 11 of title 40, United States Code; or

(2)

an equivalent State qualifications-based requirement (as determined by the Governor of the State).

.

109.

Allotment of funds

Section 604 of the Federal Water Pollution Control Act (33 U.S.C. 1384) is amended by striking subsections (a) and (b) and inserting the following:

(a)

In general

Subject to subsection (b)(2), amounts authorized to be appropriated to carry out this section for each of fiscal years 2010 through 2014 shall be allotted among States by the Administrator in accordance with the allotment values specified in the following table:

StateAllotment value
Alabama0.012860
Alaska0.007500
Arizona0.010247
Arkansas0.007500
California0.079629
Colorado0.010164
Connecticut0.014150
Delaware0.007500
District of Columbia0.005000
Florida0.044139
Georgia0.012825
Hawaii0.008048
Idaho0.007500
Illinois0.048540
Indiana0.024633
Iowa0.010266
Kansas0.009129
Kentucky0.012025
Louisiana0.013465
Maine0.007829
Maryland0.025129
Massachusetts0.025754
Michigan0.033487
Minnesota0.020385
Mississippi0.009112
Missouri0.028037
Montana0.007500
Nebraska0.008023
Nevada0.007500
New Hampshire0.007500
New Jersey0.046117
New Mexico0.007500
New York0.103531
North Carolina0.019007
North Dakota0.007500
Ohio0.054722
Oklahoma0.008171
Oregon0.012456
Pennsylvania0.041484
Rhode Island0.007500
South Carolina0.007500
South Dakota0.007500
Tennessee0.011019
Texas0.037664
Utah0.007500
Vermont0.007500
Virginia0.020698
Washington0.017588
West Virginia0.011825
Wisconsin0.022844
Wyoming0.007500
Puerto Rico0.005000
Territories0.002500
(b)

Reservation of funds

(1)

Planning

Each State may reserve for each fiscal year to carry out planning under sections 205(j) and 303(e) an amount equal to the greater of—

(A)

2 percent of the sums allotted to the State under this section for the fiscal year; or

(B)

$100,000.

(2)

Operator training; Indian tribes

Of the total amount of funds made available to carry out this title, before allotting funds in accordance with subsection (a), for fiscal year 2009 and each fiscal year thereafter, the Administrator—

(A)

may reserve not more than $5,000,000 to carry out the objectives described in section 104(g); and

(B)

shall allocate 1.5 percent to Indian tribes (as defined in section 518(h)).

.

110.

Authorization of appropriations

The Federal Water Pollution Control Act is amended by striking section 607 (33 U.S.C. 1387) and inserting the following:

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 2010 and 2011;

(2)

$3,600,000,000 for fiscal year 2012;

(3)

$4,000,000,000 for fiscal year 2013; and

(4)

$6,000,000,000 for fiscal year 2014.

(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 $1,000,000 for the fiscal year, to remain available until expended, to pay the costs of conducting needs surveys under section 516(b)(1)(B).

.

111.

Sewer overflow control grants

(a)

Sewer overflow control grants

Section 221 of the Federal Water Pollution Control Act (33 U.S.C. 1301) is amended—

(1)

in subsection (a), by striking In general and all that follows through (2) subject to subsection (g), the Administrator may and inserting the following:

(a)

In general

The Administrator may—

(1)

make grants to States for the purpose of providing grants to a municipality or municipal entity for planning, design, and construction of treatment works to intercept, transport, control, or treat municipal combined sewer overflows and sanitary sewer overflows; and

(2)

subject to subsection (g),

; and

(2)

by striking subsections (e) through (g) and inserting the following:

(e)

Administrative requirements

(1)

In general

Subject to paragraph (2), a project that receives grant assistance under subsection (a) shall be carried out subject to the same requirements as a project that receives assistance from a State water pollution control revolving fund established pursuant to title VI.

(2)

Determination of Governor

The requirement described in paragraph (1) shall not apply to a project that receives grant assistance under subsection (a) to the extent that the Governor of the State in which the project is located determines that a requirement described in title VI is inconsistent with the purposes of this section.

(f)

Authorization of appropriations

There are authorized to be appropriated to carry out this section, to remain available until expended—

(1)

$250,000,000 for fiscal year 2010;

(2)

$300,000,000 for fiscal year 2011;

(3)

$350,000,000 for fiscal year 2012;

(4)

$400,000,000 for fiscal year 2013; and

(5)

$500,000,000 for fiscal year 2014.

(g)

Allocation of funds

(1)

Fiscal year 2010 and 2011

For each of fiscal years 2010 and 2011, subject to subsection (h), the Administrator shall use the amounts made available to carry out this section to provide grants to municipalities and municipal entities under subsection (a)(2)—

(A)

in accordance with the priority criteria described in subsection (b); and

(B)

with additional priority given to proposed projects that involve the use of—

(i)

nonstructural, low-impact development;

(ii)

water conservation, efficiency, or reuse; or

(iii)

other decentralized stormwater or wastewater approaches to minimize flows into the sewer systems.

(2)

Fiscal year 2012 and thereafter

For fiscal year 2012 and each fiscal year thereafter, subject to subsection (h), the Administrator shall use the amounts made available to carry out this section to provide grants to States under subsection (a)(1) in accordance with a formula that—

(A)

shall be established by the Administrator, after providing notice and an opportunity for public comment; and

(B)

allocates to each State a proportional share of the amounts based on the total needs of the State for municipal combined sewer overflow controls and sanitary sewer overflow controls, as identified in the most recent survey—

(i)

conducted under section 210; and

(ii)

included in a report required under section 516(b)(1)(B).

.

(b)

Reports

Section 221(i) of the Federal Water Pollution Control Act (33 U.S.C. 1301(i)) is amended in the first sentence by striking 2003 and inserting 2011.

112.

Critical water infrastructure projects

(a)

Establishment

The Administrator shall establish a program under which grants are provided to eligible entities for use in carrying out projects and activities the primary purpose of which is watershed restoration through the protection or improvement of water quality.

(b)

Project selection

(1)

In general

The Administrator may provide funds under this section to an eligible entity to carry out an eligible project described in paragraph (3).

(2)

Equitable distribution

The Administrator shall ensure an equitable distribution of projects under this section, taking into account cost and number of requests for each category listed in paragraph (3).

(3)

Eligible projects

A project that is eligible to be carried out using funds provided under this section may include projects that are included in the intended use plan of the State developed in accordance with section 606(c) of the Federal Water Pollution Control Act (33 U.S.C. 1386(c)).

(c)

Local participation

In prioritizing projects for implementation under this section, the Administrator shall consult with, and consider the priorities of—

(1)

affected State and local governments; and

(2)

public and private entities that are active in watershed planning and restoration.

(d)

Cost sharing

Before carrying out any project under this section, the Administrator shall enter into an agreement with 1 or more non-Federal interests that shall require the non-Federal interests—

(1)

to pay 45 percent of the total costs of the project, which may include services, materials, supplies, or other in-kind contributions;

(2)

to provide any land, easements, rights-of-way, and relocations necessary to carry out the project; and

(3)

to pay 100 percent of any operation, maintenance, repair, replacement, and rehabilitation costs associated with the project.

(e)

Waiver

The Administrator may waive the requirement to pay the non-Federal share of the cost of carrying out an eligible activity using funds from a grant provided under this section if the Administrator determines that an eligible entity is unable to pay, or would experience significant financial hardship if required to pay, the non-Federal share.

(f)

Authorization of appropriations

There is authorized to be appropriated to carry out this section $50,000,000 for each of fiscal years 2010 through 2014.

II

Safe drinking water infrastructure

201.

Drinking water technical assistance for communities

Section 1442(e) of the Safe Drinking Water Act (42 U.S.C. 300j–1(e)) is amended—

(1)

in the first sentence, by striking The Administrator may provide and inserting the following:

(1)

Public water systems

The Administrator may provide

;

(2)

in the second sentence, by striking Such assistance and inserting the following:

(2)

Types of assistance

Such assistance

;

(3)

in the third sentence, by striking The Administrator shall ensure and inserting the following:

(3)

Availability

The Administrator shall ensure

;

(4)

in the fourth sentence, by striking Each nonprofit and inserting the following:

(4)

Requirement applicable to nonprofit organizations

Each nonprofit

; and

(5)

by striking the fifth sentence and all that follows and inserting the following:

(5)

Priority

In providing grants under this section, the Administrator shall give priority to small systems organizations that, as determined by the Administrator, in consultation with the State, are qualified and will be the most effective at assisting small systems.

(6)

Wells and well systems

(A)

In general

The Administrator shall provide grants to nonprofit organizations to provide technical assistance to communities and individuals regarding the design, operation, construction, and maintenance of household wells and small shared well-systems that provide drinking water.

(B)

Form of assistance

Technical assistance referred to in subparagraph (A) may include—

(i)

training and education;

(ii)

operation of a hotline; and

(iii)

the conduct of other activities relating to the design and construction of household, shared, and small water well systems in rural areas.

(C)

Priority

Subject to paragraph (5), in providing grants under this section, the Administrator shall give priority to applicants that, as determined by the Administrator—

(i)

are qualified; and

(ii)

have demonstrated experience in providing similar technical assistance and in developing similar projects.

(D)

Authorization of appropriations

There is authorized to be appropriated to carry out this paragraph—

(i)

$7,000,000 for fiscal year 2010; and

(ii)

$7,500,000 for each of fiscal years 2011 through 2014.

(7)

Funding

(A)

Authorization of appropriations

There is authorized to be appropriated to the Administrator to carry out this subsection (other than paragraph (6)) $35,000,000 for each of fiscal years 2010 through 2014.

(B)

Lobbying expenses

No portion of any State loan fund established under section 1452 and no portion of any funds made available under this subsection may be used for lobbying expenses.

(C)

Indian Tribes

Of the total amount made available under this section for each fiscal year, 3 percent shall be used for technical assistance to public water systems owned or operated by Indian Tribes.

.

202.

Preservation of employee labor standards

Section 1450 of the Safe Drinking Water Act (42 U.S.C. 300j–9) is amended by striking subsection (e) and inserting the following:

(e)

Labor standards

(1)

In general

The Administrator shall take such action as the Administrator determines to be necessary to ensure that each laborer and mechanic employed by a contractor or subcontractor of a construction project financed, in whole or in part, by a grant, loan, loan guarantee, refinancing, or any other form of financial assistance provided under this Act (including assistance provided by a State loan fund established under section 1452) is paid wages at a rate of not less than the wages prevailing for the same type of work on similar construction in the immediate locality, as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code.

(2)

Authority of Secretary of Labor

With respect to the labor standards specified in this subsection, the Secretary of Labor shall have the authority and functions established in Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App.) and section 3145 of title 40, United States Code.

.

203.

Preconstruction work

Section 1452(a)(2) of the Safe Drinking Water Act (42 U.S.C. 300j–12(a)(2)) is amended—

(1)

by designating the first, second, third, fourth, and fifth sentences as subparagraphs (A), (B), (D), (E), and (F), respectively;

(2)

in subparagraph (B) (as designated by paragraph (1))—

(A)

by striking (not and inserting (including expenditures for planning, design, and associated preconstruction activities, including activities relating to the siting of the facility, but not; and

(B)

by inserting before the period at the end the following: or to replace or rehabilitate aging treatment, storage, or distribution facilities of public water systems or provide for capital projects (excluding any expenditure for operations and maintenance) to upgrade the security of public water systems; and

(3)

by inserting after subparagraph (B) (as designated by paragraph (1)) the following:

(C)

Sale of bonds

Funds may also be used by a public water system as a source of revenue (restricted solely to interest earnings of the applicable State loan fund) or security for payment of the principal and interest on revenue or general obligation bonds issued by the State to provide matching funds under subsection (e), if the proceeds of the sale of the bonds will be deposited in the State loan fund.

.

204.

Priority system requirements

Section 1452(b)(3) of the Safe Drinking Water Act (42 U.S.C. 300j–12(b)(3)) is amended—

(1)

by redesignating subparagraph (B) as subparagraph (D);

(2)

by striking subparagraph (A) and inserting the following:

(A)

Definition of restructuring

In this paragraph, the term restructuring means changes in operations (including ownership, cooperative partnerships, asset management, consolidation, and alternative water supply).

(B)

Priority system

An intended use plan shall provide, to the maximum extent practicable, that priority for the use of funds be given to projects that—

(i)

address the most serious risk to human health;

(ii)

are necessary to ensure compliance with this title (including requirements for filtration);

(iii)

assist systems most in need on a per-household basis according to State affordability criteria; and

(iv)

improve the sustainability of systems.

(C)

Weight given to applications

After determining project priorities under subparagraph (B), an intended use plan shall provide that the State shall give greater weight to an application for assistance by a community water system if the application includes such information as the State determines to be necessary and contains—

(i)

a description of utility management best practices undertaken by a treatment works applying for assistance, including—

(I)

an inventory of assets, including a description of the condition of the assets;

(II)

a schedule for replacement of assets;

(III)

a financing plan that factors in all lifecycle costs indicating sources of revenue from ratepayers, grants, bonds, other loans, and other sources to meet the costs; and

(IV)

a review of options for restructuring the public water system;

(ii)

demonstration of consistency with State, regional, and municipal watershed plans;

(iii)

a water conservation plan consistent with guidelines developed for those plans by the Administrator under section 1455(a); and

(iv)

approaches to improve the sustainability of the system, including—

(I)

water efficiency or conservation, including the rehabilitation or replacement of existing leaking pipes;

(II)

use of reclaimed water;

(III)

actions to increase energy efficiency; and

(IV)

implementation of source water protection plans.

; and

(3)

in subparagraph (D) (as redesignated by paragraph (1)), by striking periodically and inserting at least biennially.

205.

Affordability

Section 1452(d)(3) of the Safe Drinking Water Act (42 U.S.C. 300j–12(d)(3)) is amended in the first sentence by inserting , or portion of a service area, after service area.

206.

Safe drinking water revolving loan funds

Section 1452(g) of the Safe Drinking Water Act (42 U.S.C. 300j–12(g)) is amended—

(1)

paragraph (2)—

(A)

in the first sentence, by striking up to 4 percent of the funds allotted to the State under this section and inserting , for each fiscal year, an amount that does not exceed the sum of the amount of any fees collected by the State for use in covering reasonable costs of administration of programs under this section, regardless of the source, and an amount equal to the greatest of $400,000, 1/5 percent of the current valuation of the fund, or 6 percent of all grant awards to the fund under this section for the fiscal year,; and

(B)

by striking 1419, and all that follows through 1993. and inserting 1419.; and

(2)

by adding at the end the following:

(5)

Transfer of funds

(A)

In general

The Governor of a State may—

(i)
(I)

reserve not more than the greater of—

(aa)

33 percent of a capitalization grant made under this section; or

(bb)

33 percent of a capitalization grant made under section 601 of the Federal Water Pollution Control Act (33 U.S.C. 1381);

(II)

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)
(I)

reserve for any fiscal year an amount that does not exceed the amount that may be reserved under clause (i)(I) for that year from capitalization grants made under section 601 of that Act (33 U.S.C. 1381); and

(II)

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)).

.

207.

Other authorized activities

Section 1452(k)(2)(D) of the Safe Drinking Water Act (42 U.S.C. 300j–12(k)(2)(D)) is amended by inserting before the period at the end the following: (including implementation of source water protection plans).

208.

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 2010;

(B)

$2,000,000,000 for each of fiscal years 2011 and 2012;

(C)

$3,200,000,000 for fiscal year 2013; and

(D)

$6,000,000,000 for fiscal year 2014.

(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 $1,000,000 per year to pay the costs of conducting needs surveys under subsection (h).

.

209.

Negotiation of contracts

Section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j–12) is amended by adding at the end the following:

(s)

Negotiation of contracts

For communities with populations of more than 10,000 individuals, a contract to be carried out using funds directly made available by a capitalization grant under this section for program management, construction management, feasibility studies, preliminary engineering, design, engineering, surveying, mapping, or architectural or related services shall be negotiated in the same manner as—

(1)

a contract for architectural and engineering services is negotiated under chapter 11 of title 40, United States Code; or

(2)

an equivalent State qualifications-based requirement (as determined by the Governor of the State).

.

210.

Critical drinking water infrastructure projects

(a)

Establishment

Not later than 180 days after the date of enactment of this Act, the Administrator shall establish a program under which grants are provided to eligible entities for use in carrying out projects and activities the primary purpose of which is to assist community water systems in meeting the requirements of the Safe Drinking Water Act (42 U.S.C. 300f et seq.).

(b)

Project selection

A project that is eligible to be carried out using funds provided under this section may include projects that—

(1)

develop alternative water sources;

(2)

provide assistance to small systems; or

(3)

assist a community water system—

(A)

to comply with a national primary drinking water regulation; or

(B)

to mitigate groundwater contamination, including saltwater intrusion.

(c)

Eligible entities

An entity eligible to receive a grant under this section is—

(1)

a community water system as defined in section 1401 of the Safe Drinking Water Act (42 U.S.C. 300f); or

(2)

a system that is located in an area governed by an Indian Tribe (as defined in section 1401 of the Safe Drinking Water Act (42 U.S.C. 300f));

(d)

Priority

In prioritizing projects for implementation under this section, the Administrator shall give priority to community water systems that—

(1)

serve a community that, under affordability criteria established by the State under section 1452(d)(3) of the Safe Drinking Water Act (42 U.S.C. 300j–12), is determined by the State to be—

(A)

a disadvantaged community; or

(B)

a community that may become a disadvantaged community as a result of carrying out an eligible activity; or

(2)

serve a community with a population of less than 10,000 individuals.

(e)

Local participation

In prioritizing projects for implementation under this section, the Administrator shall consult with, and consider the priorities of, affected States, Indian Tribes, and local governments.

(f)

Cost sharing

Before carrying out any project under this section, the Administrator shall enter into a binding agreement with 1 or more non-Federal interests that shall require the non-Federal interests—

(1)

to pay 45 percent of the total costs of the project, which may include services, materials, supplies, or other in-kind contributions;

(2)

to provide any land, easements, rights-of-way, and relocations necessary to carry out the project; and

(3)

to pay 100 percent of any operation, maintenance, repair, replacement, and rehabilitation costs associated with the project.

(g)

Waiver

The Administrator may waive the requirement to pay the non-Federal share of the cost of carrying out an eligible activity using funds from a grant provided under this section if the Administrator determines that an eligible entity is unable to pay, or would experience significant financial hardship if required to pay, the non-Federal share.

(h)

Authorization of appropriations

There is authorized to be appropriated to carry out this section—

(1)

$230,000,000 for fiscal year 2010; and

(2)

$300,000,000 for each of fiscal years 2011 through 2014.

211.

Reducing lead in drinking water

(a)

Definitions

In this section:

(1)

Eligible entity

The term eligible entity means—

(A)

a community water system (as defined in section 1401 of the Safe Drinking Water Act (42 U.S.C. 300f));

(B)

a system located in an area governed by an Indian Tribe (as defined in that section);

(C)

a nontransient noncommunity water system;

(D)

a qualified nonprofit organization, as determined by the Administrator; and

(E)

a municipality or State, interstate, or intermunicipal agency.

(2)

Lead reduction project

The term lead reduction project means a project or activity the primary purpose of which is to reduce the level of lead in water for human consumption by—

(A)

replacement of publicly owned lead service lines;

(B)

capital costs, testing, planning, or other relevant activities, as determined by the Administrator, to identify and address conditions (including corrosion control) that contribute to increased lead levels in water for human consumption;

(C)

assistance to low-income homeowners to replace privately owned service lines, pipes, fittings, or fixtures that contain lead; and

(D)

education of consumers regarding measures to reduce exposure to lead from drinking water or other sources.

(3)

Low-income

The term low-income, with respect to an individual provided assistance under this section, has such meaning as may be given the term by the head of the municipality or State, interstate, or intermunicipal agency with jurisdiction over the area to which assistance is provided.

(4)

Municipality

The term municipality means—

(A)

a city, town, borough, county, parish, district, association, or other public entity established by, or pursuant to, applicable State law; and

(B)

an Indian tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)).

(b)

Grant program

(1)

Establishment

Not later than 180 days after the date of enactment of this Act, the Administrator shall establish a grant program to provide assistance to eligible entities for lead reduction projects in the United States.

(2)

Evaluation

In providing assistance under this section, the Administrator shall evaluate—

(A)

whether an eligible entity applying for assistance has taken steps to identify the source of lead in water for human consumption; and

(B)

the means by which the proposed lead reduction project would reduce lead levels in the applicable water system.

(3)

Priority application

In providing grants under this subsection, the Administrator shall give priority to an eligible entity that—

(A)

carries out a lead reduction project at a public water system or nontransient noncommunity water system that has exceeded the lead action level established by the Administrator at any time during the 3-year period preceding the date of submission of the application of the eligible entity;

(B)

addresses lead levels in water for human consumption at a school, daycare, or other facility that primarily serves children or another vulnerable human subpopulation; or

(C)

addresses such priority criteria as the Administrator may establish, consistent with the goal of reducing lead levels of concern.

(4)

Cost sharing

(A)

In general

Subject to subparagraph (B), the non-Federal share of the total cost of a project funded by a grant under this subsection shall be not less than 20 percent.

(B)

Waiver

The Administrator may reduce or eliminate the non-Federal share under subparagraph (A) for reasons of affordability, as the Administrator determines to be appropriate.

(5)

Low-income assistance

(A)

In general

Subject to subparagraphs (B) and (C), an eligible entity may use a grant provided under this subsection to provide assistance to low-income homeowners to carry out lead reduction projects.

(B)

Low-income assistance cap

Of the funds made available to carry out this section, not more than $5,000,000 may be allocated to provide assistance to low-income homeowners under this paragraph for any fiscal year.

(C)

Limitation

The amount of a grant provided to a low-income homeowner under this paragraph shall not exceed $5,000.

(6)

Special consideration for lead service line replacement

In carrying out lead service line replacement using a grant under this subsection, an eligible entity shall—

(A)

notify customers of the replacement of any publicly owned portion of the lead service line;

(B)

offer to replace the privately owned portion of the lead service line at the cost of replacement;

(C)

recommend measures to avoid exposure to short-term increases in lead levels following a partial lead service line replacement; and

(D)

demonstrate that the eligible entity has considered multiple options for reducing lead in drinking water, including an evaluation of options for corrosion control.

(c)

Authorization of appropriations

There is authorized to be appropriated to carry out this section $60,000,000 for each of fiscal years 2010 through 2014.

III

Miscellaneous

301.

Definition of Academy

In this title, the term Academy means the National Academy of Sciences.

302.

Program for water quality enhancement and management

(a)

Innovative technology and alternative approaches grant program

(1)

In general

Not later than 2 years after the date of enactment of this Act, the Administrator shall establish a program to provide grants to, and enter into contracts and cooperative agreements with, research institutions, institutions of higher education, National Laboratories, and other appropriate entities (including consortia of such institutions and entities), through a competitive process, in accordance with the plan developed under subsection (b), for research regarding, and development of the use of, innovative and alternative technologies to improve water quality, drinking water supply, or water use efficiency and conservation.

(2)

Types of projects

In carrying out this subsection, the Administrator may select projects relating to such matters as innovative or alternative technologies, approaches, practices, or methods—

(A)

to increase the effectiveness and efficiency of water and wastewater infrastructure through the use of integrated water resource management;

(B)

to increase the effectiveness and efficiency of public water systems, including—

(i)

source water protection;

(ii)

water use reduction;

(iii)

water collection, storage, and treatment and reuse of rainwater, stormwater, and graywater;

(iv)

identification of behavioral, social, and economic barriers to achieving greater water use efficiency;

(v)

use of watershed planning directed toward water quality, conservation, and supply;

(vi)

actions to reduce energy consumption;

(vii)

water treatment;

(viii)

water distribution and wastewater collection systems;

(ix)

desalination; and

(x)

water security;

(C)

to encourage the use of innovative or alternative technologies or approaches relating to water supply or availability;

(D)

to increase the effectiveness and efficiency of new and existing treatment works, including—

(i)

methods of collecting, treating, dispersing, reusing, reclaiming, and recycling wastewater;

(ii)

system design;

(iii)

nonstructural alternatives;

(iv)

decentralized approaches;

(v)

stormwater and wastewater reuse;

(vi)

water use efficiency and conservation;

(vii)

actions to reduce energy consumption;

(viii)

technologies to extract energy from wastewater; and

(ix)

wastewater security;

(E)

to increase the effectiveness and efficiency of municipal separate storm sewer systems and combined sewer systems, including through the use of soil and vegetation or other permeable materials;

(F)

to promote new water treatment technologies and management approaches, including commercialization and dissemination strategies for adoption of innovative water, wastewater, and stormwater technologies and management approaches or low-impact development technologies in the homebuilding industry; or

(G)

to maintain a clearinghouse of technologies and management approaches developed under this subsection and subsections (c) and (d) at a research consortium or institute or other appropriate organization, as determined by the Administrator.

(3)

Factors for consideration

In planning and implementing the program under this subsection, the Administrator shall take into consideration—

(A)

research needs identified by water resource managers, State and local governments, and other interested parties; and

(B)

technologies and processes likely to achieve the greatest increases in water quality, drinking water supply, or water use efficiency and conservation.

(4)

Minority-serving institutions

In carrying out the program under this subsection, the Administrator—

(A)

may provide extramural grants to institutions of higher education; and

(B)

shall encourage participation by minority-serving institutions.

(b)

Strategic research plan

(1)

In general

Not later than 180 days after the date of enactment of this Act, the Administrator, in coordination with the heads of other appropriate Federal departments and agencies, shall develop a strategic research plan for the grant program under subsection (a).

(2)

Requirements

(A)

Coordination

The plan under paragraph (1) shall be carried out, to the maximum extent practicable, in coordination with other research and development strategic plans of the Environmental Protection Agency.

(B)

Contents

The plan under paragraph (1) shall—

(i)

describe, in outline form, research goals and priorities relating to an agenda of water quality, drinking water supply, and water use efficiency and conservation, including—

(I)

developing innovative water supply-enhancing processes and technologies;

(II)

improving existing processes and technologies, including wastewater treatment, desalination, and groundwater recharge and recovery schemes;

(III)

improving the effectiveness and efficiency of nontraditional wastewater treatment practices, including nonstructural alternatives, low-impact development techniques, and decentralized approaches; and

(IV)

exploring concepts that extract energy from wastewater;

(ii)
(I)

identify current Federal water-related research efforts directed toward achieving the goals of improving water quality, water use efficiency, or water conservation or expanding water supply; and

(II)

describe the means by which those efforts are coordinated with the program established under subsection (a) in order to leverage resources and avoid duplication;

(iii)

take into consideration the public health and environmental quality impacts and cost-effectiveness of each relevant technology and approach; and

(iv)

take into consideration and incorporate, as appropriate, recommendations contained in reports and studies conducted by Federal departments and agencies, the National Research Council, the National Science and Technology Council, and other appropriate entities.

(3)

Science Advisory Board review

The Administrator shall submit the plan under paragraph (1) to the Science Advisory Board of the Environmental Protection Agency for review.

(4)

Revisions

The plan under paragraph (1) shall be revised and amended as necessary to reflect updated scientific findings and national research priorities.

(c)

Municipalities grant program

(1)

Definition of municipality

In this subsection, the term municipality means—

(A)

a city, town, borough, county, parish, district, association, authority, or other public entity established by, or pursuant to, State law; or

(B)

an Indian tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)).

(2)

Establishment

Not later than 90 days after the date of publication of the initial report under subsection (e)(2), the Administrator shall establish a nationwide demonstration grant program—

(A)

to promote innovations in technology and alternative approaches to water quality management or water supply developed under subsection (a); and

(B)

to reduce costs to municipalities incurred in complying with the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) and the Safe Drinking Water Act (42 U.S.C. 300f et seq.) through the approaches and technologies developed under subsection (a).

(3)

Scope

The demonstration grant program shall consist of up to 10 projects each year, to be carried out in municipalities selected by the Administrator under paragraph (5).

(4)

Applications

A municipality that seeks to participate in the demonstration grant program established under this subsection shall submit to the Administrator a plan that—

(A)

is developed in coordination with—

(i)

the agencies of the State having jurisdiction over water quality and water supply matters; and

(ii)

interested stakeholders, including institutions of higher education and related research institutions;

(B)

describes water impacts specific to urban or rural areas;

(C)

includes a strategy under which the municipality, through participation in the demonstration grant program, could effectively—

(i)

address water quality or water supply problems; and

(ii)

achieve the water quality goals that—

(I)

could be achieved using more traditional methods; and

(II)

are required under the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) or the Safe Drinking Water Act (42 U.S.C. 300f et seq.); and

(D)

includes a schedule for achieving the water quality, water supply, or water use efficiency and conservation goals of the municipality.

(5)

Categories of projects

(A)

In general

In carrying out the demonstration grant program, the Administrator shall provide grants for—

(i)

projects relating to water supply, water quality, or water use efficiency and conservation matters described in subsection (a)(2); and

(ii)

subject to subparagraph (B), not less than 2 projects for the incorporation into a building of the most current water use efficiency and conservation technologies and designs.

(B)

Projects for incorporation

(i)

Incremental cost limitation

A grant provided under subparagraph (A)(ii) may be used only to pay the incremental costs of incorporation into a building of a water use efficiency and conservation technology or design.

(ii)

Types of buildings

Of the projects for which grants are provided under subparagraph (A)(ii)—

(I)

at least 1 shall be for a residential building; and

(II)

at least 1 shall be for a commercial building.

(iii)

Public availability

The design of each building for which a grant is provided under subparagraph (A)(ii) shall be made available to the public, and each such building shall be accessible to the public for tours and educational purposes.

(6)

Responsibilities of Administrator

In providing grants for projects under this subsection, the Administrator shall—

(A)

ensure, to the maximum extent practicable, that—

(i)

the demonstration grant program under this subsection includes a variety of projects with respect to—

(I)

geographical distribution;

(II)

innovative technologies used for the projects; and

(III)

nontraditional approaches (including low-impact development technologies) used for the projects; and

(ii)

each category of project described in paragraph (5) 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 community having a population of 10,000 or fewer individuals receives a grant for each fiscal 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 subsection.

(7)

Cost sharing

(A)

In general

Except as provided in subparagraph (B), the non-Federal share of the total cost of a project funded by a grant under this subsection shall be not less than 20 percent.

(B)

Waiver

The Administrator may reduce or eliminate the non-Federal share of the cost of a project for reasons of affordability.

(d)

Incorporation of results and information

(1)

Technology transfer

The Administrator, taking into consideration the results of the projects carried out using grants under subsections (a) and (c), shall—

(A)

facilitate the adoption of technologies and processes to promote increased water quality, drinking water supply, and water use efficiency and conservation; and

(B)

collect and disseminate information, including through the establishment of a publicly accessible clearinghouse, regarding those technologies and processes, including information on—

(i)

incentives and impediments to development and commercialization;

(ii)

best practices; and

(iii)

anticipated increases in water quality, drinking water supply, and water use efficiency and conservation resulting from the implementation of specific technologies and processes.

(2)

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 other programs administered by the Administrator.

(e)

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 of the recipient and on each of the dates that is 1, 2, and 3 years after that date, a report that describes the effectiveness of the project.

(2)

Reports to Congress

Not later than 2 years after the date of enactment of this Act, and not less frequently than once every 2 years thereafter, the Administrator shall submit to the Committee on Environment and Public Works of the Senate and the Committees on Transportation and Infrastructure and Energy and Commerce of the House of Representatives a report describing—

(A)

the findings of each recipient of a grant under subsection (a) with respect to the identification of any potential new technology or management approach developed by the recipient; and

(B)

the status and results of the grant program under subsection (c).

(f)

Water management study and report

(1)

Definitions

In this subsection:

(A)

Low-impact approach

The term low-impact approach means a strategy that manages rainfall at the source using decentralized microscale controls to mimic the predevelopment hydrology of the relevant site by using a design technique that infiltrates, filters, stores, evaporates, and detains runoff close to the source.

(B)

Soft path approach

The term soft path approach means a general framework that encompasses—

(i)

increased efficiency of water use;

(ii)

integration of water supply, wastewater treatment, and stormwater management systems; and

(iii)

protection, restoration, and effective use of the natural capacities of ecosystems to provide clean water.

(2)

Study

(A)

In general

Not later than 60 days after the date of enactment of this Act, the Administrator shall enter into an arrangement with the National Academy of Sciences under which the Academy shall conduct a study, by not later than 2 years after that date, of innovative, effective, and systematic approaches for the management of water supply, wastewater, and stormwater.

(B)

Contents

The study shall—

(i)

be based on and enhance, to the maximum extent practicable, relevant studies previously conducted by the Academy;

(ii)

focus in particular on soft-path approaches and low-impact approaches to the management described in subparagraph (A);

(iii)

take into consideration the costs of each approach analyzed by the study;

(iv)

examine and compare the state of research, technology development, and emerging practices in other developed and developing countries with those in the United States;

(v)

identify and evaluate relevant system approaches for comprehensive water management, including the interrelationship of water systems with other major systems, such as energy and transportation systems;

(vi)

identify priority research and development needs; and

(vii)

assess implementation needs and barriers.

(C)

Authorization of appropriations

There is authorized to be appropriated to carry out this paragraph $1,000,000 for the period of fiscal years 2010 through 2012.

(3)

Report

(A)

In general

Not later than 3 years after the date of enactment of this Act, the Administrator shall submit to the Committee on Environment and Public Works of the Senate and the Committee on Science and Technology of the House of Representatives a report describing the key findings of the study under paragraph (2).

(B)

Inclusions

The report under subparagraph (A) shall include—

(i)

an evaluation of relevant challenges and opportunities; and

(ii)

recommendations for innovative and integrated solutions for use as a practical reference by water managers, planners, developers, scientists, engineers, nongovernmental organizations, Federal departments and agencies, and regulators.

(g)

Authorization of Appropriations

There is authorized to be appropriated to carry out this section $40,000,000 for each of fiscal years 2010 through 2014.

303.

Agricultural watershed sustainability technology grant program

(a)

Definitions

In this section:

(1)

Agricultural commodity

The term agricultural commodity means—

(A)

agricultural, horticultural, viticultural, and dairy products;

(B)

livestock and the products of livestock;

(C)

the products of poultry and bee raising;

(D)

the products of forestry; and

(E)

other commodities raised or produced on agricultural sites, as determined to be appropriate by the Secretary of Agriculture.

(2)

Agricultural project

The term agricultural project means an agricultural watershed sustainability technology pilot project that, as determined by the Administrator—

(A)

is carried out at an agricultural site;

(B)
(i)

achieves demonstrable improvements in water quality that meet or exceed those mandated by statutory or regulatory requirements; or

(ii)

improves water use efficiency; and

(C)

will not substantially adversely affect agricultural commodity production, yield, profitability, or any other long-term environmental medium, including air and groundwater resources.

(3)

Agricultural site

The term agricultural site means a farming or ranching operation of a producer in the United States.

(4)

Producer

The term producer means any person or group of persons (including an irrigation district and a drainage district) engaged in the production and sale of an agricultural commodity that owns, or shares the ownership and risk of loss of, the agricultural commodity.

(5)

Revolving fund

The term revolving fund means an agricultural watershed sustainability technology revolving fund—

(A)

that is established by a State using amounts provided under subsection (b)(1);

(B)

that is maintained and credited with repayments; and

(C)

the balance of which shall be available in perpetuity for providing financial assistance.

(b)

Grants for agricultural State revolving funds

(1)

In general

As soon as practicable after the date of enactment of this section, the Administrator shall provide to each eligible State described in paragraph (2) 1 or more capitalization grants, that cumulatively equal no more than $1,000,000 per State, for use in establishing, within an agency of the State having jurisdiction over agriculture or environmental quality, an agricultural watershed sustainability technology revolving fund.

(2)

Eligible States

An eligible State referred to in paragraph (1) is a State that agrees, prior to receipt of a capitalization grant under paragraph (1)—

(A)

to establish, and deposit the funds from the grant in, a revolving fund;

(B)

to provide, at a minimum, a State share in an amount equal to 20 percent of the capitalization grant;

(C)

to use amounts in the revolving fund to make loans to producers in accordance with subsection (c); and

(D)

to return amounts in the revolving fund if no loan applications are granted within 2 years of the receipt of the initial capitalization grant.

(c)

Loans to producers

(1)

Use of funds

A State that establishes a revolving fund under subsection (b)(2) shall use amounts in the revolving fund to provide loans to producers for use in designing and constructing agricultural projects.

(2)

Maximum amount of loan

The amount of a loan made to a producer using funds from a revolving fund shall not exceed $250,000, in the aggregate, for all agricultural projects serving an agricultural site of the producer.

(3)

Conditions on loans

A loan made to a producer using funds from a revolving fund shall—

(A)

have an interest rate that is not more than the market interest rate, including an interest-free loan; and

(B)

be repaid to the revolving fund not later than 20 years after the date on which funds are initially disbursed.

(d)

Requirements for producers

(1)

In general

A producer that seeks to receive a loan from a revolving fund shall—

(A)

submit to the State within the jurisdiction of which the agricultural site of the producer is located an application that—

(i)

contains such information as the State may require; and

(ii)

demonstrates, to the satisfaction of the State, that each project proposed to be carried out with funds from the loan is an agricultural project; and

(B)

agree to expend all funds from a loan in an expeditious and timely manner, as determined by the State.

(2)

Maximum percentage of agricultural project cost

Subject to subsection (c)(2), a producer that receives a loan from a revolving fund may use funds from the loan to pay up to 100 percent of the cost of carrying out an agricultural project.

(e)

Authorization of appropriations

There is authorized to be appropriated to carry out this section $50,000,000.

304.

State revolving fund review process

(a)

In general

As soon as practicable after the date of enactment of this Act, the Administrator shall—

(1)

consult with States, utilities, nonprofit organizations, and other Federal agencies providing financial assistance to identify ways to expedite and improve the application and review process, for the provision of assistance from—

(A)

the State water pollution control revolving funds established under title VI of the Federal Water Pollution Control Act (33 U.S.C. 1381 et seq.); and

(B)

the State drinking water treatment revolving loan funds established under section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j–12);

(2)

take such administrative action as is necessary to expedite and improve the process as the Administrator has authority to take under existing law;

(3)

collect information relating to innovative approaches taken by any State to simplify the application process of the State, and provide the information to each State;

(4)

conduct an evaluation of the process used to develop and carry out the needs survey under section 516(b)(1)(B) of the Federal Water Pollution Control Act (33 U.S.C. 1375(b)(1)(B)), including recommendations for ways to streamline the development and conduct of that survey; and

(5)

submit to Congress a report that, based on the information identified under paragraph (1), contains recommendations (including recommendations for legislation) to facilitate further streamlining and improvement of the process.

(b)

Considerations

In carrying out this section, the Administrator shall consider the needs of—

(1)

small treatment works and medium treatment works (as defined in section 222 of the Federal Water Pollution Control Act);

(2)

treatment works serving populations of 100,000 or more;

(3)

small public water systems described in section 1433(d) of the Safe Drinking Water Act (42 U.S.C. 300i–2(d)); and

(4)

public water systems described in section 1433(a)(2) of the Safe Drinking Water Act (42 U.S.C. 300i–2(a)(2)).

305.

Cost of service study

(a)

In general

Not later than 2 years after the date of enactment of this Act, the Administrator shall enter an arrangement with the Academy under which the Academy shall complete and provide to the Administrator the results of a study of the means by which public water systems and treatment works selected by the Academy in accordance with subsection (c) meet the costs associated with operations, maintenance, capital replacement, and regulatory requirements.

(b)

Required elements

(1)

Affordability

The study shall, at a minimum—

(A)

determine whether the rates at public water systems and treatment works for communities included in the study were established using a full-cost pricing model;

(B)

if a full-cost pricing model was not used, identify any incentive rate systems that have been successful in significantly reducing—

(i)

per capita water demand;

(ii)

the volume of wastewater flows;

(iii)

the volume of stormwater runoff; or

(iv)

the quantity of pollution generated by stormwater;

(C)

identify a set of best industry practices that public water systems and treatment works may use in establishing a rate structure that—

(i)

adequately addresses the true cost of services provided to consumers by public water systems and treatment works, including infrastructure replacement;

(ii)

encourages water conservation; and

(iii)

takes into consideration the needs of disadvantaged individuals and communities, as identified by the Administrator;

(D)

identify existing standards for affordability and the manner in which those standards are determined and defined;

(E)

determine the manner in which affordability varies with respect to communities of different sizes and in different regions; and

(F)

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).

(2)

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 Academy 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)

Use of results of study

On receipt of the results of the study, the Administrator shall—

(1)

submit the study to Congress;

(2)

submit a report that describes the results of the study; and

(3)

make the results available to treatment works and public water systems for use by the publicly owned treatment works and public water systems, on a voluntary basis, in determining whether 1 or more new approaches may be implemented at facilities of the publicly owned treatment works and public water systems.

(e)

Authorization of appropriations

There is authorized to be appropriated to carry out this section $1,000,000 for each of fiscal years 2010 and 2014.

306.

Effective utility management strategies

(a)

Definitions

In this section:

(1)

Effective utility management strategy

The term effective utility management strategy means a strategy for the operation and management of a utility that, as determined by the Administrator, incorporates the following attributes:

(A)

Product quality.

(B)

Stakeholder understanding and support.

(C)

Customer satisfaction.

(D)

Employee development.

(E)

Operational optimization.

(F)

Financial viability.

(G)

Infrastructure stability.

(H)

Operational resiliency.

(I)

Community sustainability.

(J)

Water resource adequacy.

(2)

Utility

The term utility means—

(A)

a treatment works (as defined in section 212 of the Federal Water Pollution Control Act (33 U.S.C. 1292)); and

(B)

a public water system (as defined in section 1401 of the Safe Drinking Water Act (42 U.S.C. 300f)).

(b)

Action by Administrator

The Administrator may carry out training programs, provide technical assistance, and disseminate information regarding effective utility management strategies, including by—

(1)

providing seminars and workshops (including electronic-based seminars and workshops), conferences, and other educational programs and developing curricula to advance effective utility management strategies;

(2)

offering support and advice (including financial, operational, and management advice) to utility operators and managers regarding effective utility management strategies; and

(3)

publishing and disseminating manuals on best management practices and other relevant information, success stories, and lessons learned relating to effective utility management strategies.

(c)

Partner organizations

In carrying out subsection (b), the Administrator may enter into cooperative agreements, as the Administrator determines to be appropriate, with—

(1)

stakeholder associations;

(2)

qualified nonprofit organizations; and

(3)

other relevant organizations, as determined by the Administrator.

(d)

Authorization of appropriations

There is authorized to be appropriated to carry out this section $1,000,000 for each of fiscal years 2010 through 2014.

307.

WaterSense Program

(a)

Establishment

There is established within the Environmental Protection Agency a program, to be known as the WaterSense Program, to identify and promote voluntary approaches to increase water efficiency in the United States to reduce the strain on water and wastewater infrastructure and conserve water resources for future generations through voluntary labeling, promotion, or other forms of communication regarding water efficient products, programs, processes, buildings, landscapes, facilities, and services that meet the highest water conservation and performance standards.

(b)

Administration

The WaterSense Program shall be carried out by the Administrator.

(c)

Duties

In carrying out the WaterSense Program, the Administrator shall—

(1)

establish—

(A)

a WaterSense label to be used for certain items; and

(B)

the procedure by which an item may be certified to display the WaterSense label;

(2)

promote products displaying the WaterSense label as the preferred technologies in the market place for—

(A)

reducing water use; and

(B)

ensuring product performance;

(3)

work to enhance public awareness of the WaterSense label;

(4)

preserve the integrity of the WaterSense label by—

(A)

developing specifications to ensure reliable performance of WaterSense-labeled products, buildings, landscapes, and services;

(B)

overseeing WaterSense certifications made by third parties;

(C)

conducting reviews of the use of the WaterSense label in the marketplace and taking corrective action in any case in which misuse of the label is identified; and

(D)

carrying out such other measures as the Administrator determines to be appropriate;

(5)

regularly research and update WaterSense product criteria for each applicable category of products;

(6)

solicit comments from interested parties before establishing or revising a WaterSense product category, specification, or criterion (or before the effective date for any such product category, specification, or criterion, as applicable);

(7)

on adoption of a new or revised product category, specification, or criterion, provide reasonable notice to interested parties regarding—

(A)

any change (including a change of effective date) to the product category, specification, or criterion;

(B)

an explanation of the change; and

(C)

as appropriate, responses to comments submitted by interested parties regarding the product category, specification, or criterion;

(8)

provide appropriate lead time, as determined by the Administrator, before the applicable effective date for a new or significant revision to a product category, specification, or criterion, taking into account the timing requirements of the manufacturing, product marketing, and distribution process for the specific product, programs, processes, buildings, landscapes, facilities, or services addressed; and

(9)

identify and, where appropriate, implement other voluntary approaches in commercial, institutional, and industrial sectors to improve water efficiency.

(d)

Annual reports

Not less frequently than once each year, the Administrator shall prepare and make publicly available a report describing the activities carried out under this section, including, to the maximum extent practicable—

(1)

available information regarding sales in each WaterSense product category; and

(2)

the savings of water, energy, and capital costs of water, wastewater, and stormwater infrastructure attributable to the WaterSense program and each category of WaterSense product, expressed on a national, regional, State, and watershed level.

(e)

Authorization of appropriations

There is authorized to be appropriated to carry out this section—

(1)

$5,000,000 for each of fiscal years 2010 and 2011;

(2)

$7,500,000 for each of fiscal years 2012 and 2013; and

(3)

$10,000,000 for fiscal year 2014.

308.

Pharmaceuticals and personal care products

Section 104 of the Federal Water Pollution Control Act (33 U.S.C. 1254) is amended by adding at the end the following:

(w)

Presence of pharmaceuticals and personal care products in waters of the United States

(1)

Definitions

In this subsection:

(A)

Academy

The term Academy means the National Academy of Sciences.

(B)

Pharmaceutical

The term pharmaceutical has the meaning given the term drug in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).

(C)

Personal care product

The term personal care product has the meaning given the term cosmetic in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).

(2)

Study

The Administrator shall offer to enter into an arrangement with the National Academy of Sciences under which the Academy, in consultation with the Administrator, the Secretary of Health and Human Services (acting through the Commissioner of Food and Drugs), the Director of the United States Geological Survey, the heads of other appropriate Federal agencies (including the National Institute of Environmental Health Sciences), and other interested stakeholders (including manufacturers of pharmaceuticals and personal care products), shall conduct a study on the presence of pharmaceuticals and personal care products in the waters of the United States.

(3)

Contents

In conducting the study under paragraph (2), the Academy shall—

(A)

identify pharmaceuticals and personal care products that have been detected in the waters of the United States and the levels at which such pharmaceuticals and personal care products have been detected;

(B)

identify the sources of pharmaceuticals and personal care products in the waters of the United States, including point sources and nonpoint sources of pharmaceutical and personal care products; and

(C)

evaluate—

(i)

risks associated with the presence of pharmaceuticals and personal care products in the waters of the United States; and

(ii)

based upon that assessment, the technical, economic, and legal feasibility of methods to control, limit, treat, or prevent that presence.

(4)

Report

Not later than 2 years after the date of enactment of this subsection, the Academy shall submit to the Administrator and Congress a report on the results of the study conducted under this subsection, including the potential effects of pharmaceuticals and personal care products in the waters of the United States on human health and aquatic wildlife.

.

309.

Financing capability guidance

Not later than 180 days after the date of enactment of this Act, for the purpose of updating the document entitled Combined Sewer Overflows–Guidance for Financial Capability Assessment and Schedule Development and dated February 1997, the Administrator shall—

(1)

collect and take into consideration information that can be used to assess the financial condition of permittees under the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.);

(2)

consult with the affected States, municipalities, and other interested parties, as determined by the Administrator; and

(3)

conduct a public outreach process.

July 15, 2009

Reported with an amendment