Water Infrastructure Financing Legislation: Comparison of S. 1961 and H.R. 3930
Report for Congress
Water Infrastructure Financing Legislation:
Comparison of S. 1961 and H.R. 3930
Updated June 10, 2002
Claudia Copeland and Mary Tiemann
Specialists in Environmental Policy
Resources, Science, and Industry Division
Congressional Research Service ˜ The Library of Congress
Water Infrastructure Financing Legislation:
Comparison of S. 1961 and H.R. 3930
Summary
This report provides a side-by-side comparison of two major bills in the 107th
Congress concerning water infrastructure project financing. It compares provisions
of S. 1961, the Water Investment Act of 2002, which would amend both the Clean
Water Act (CWA) and Safe Drinking Water Act (SDWA), and H.R. 3930, the Water
Quality Financing Act of 2002, which would amend only the CWA. It also describes
relevant provisions of current law that would be affected or modified by the bills.
The CWA and SDWA provisions that these two bills would amend are
principally the portions of those laws that authorize federal financial assistance to
State Revolving Loan Funds (SRFs) for purposes of building and upgrading
wastewater treatment and drinking water treatment facilities in compliance with the
laws. Congress established the CWA SRF program in 1987 and the SDWA SRF
program in 1996. Under both, federal capitalization grants are provided as seed
money for state-administered loans, which communities repay to the state, providing
a source of capital for future investments. Both laws contain provisions that specify
requirements for states to establish SRFs and requirements that apply to the SRF's
operation, such as plans and reporting. Both define categories of projects eligible for
assistance, who may receive assistance, and types of assistance activities.
A key intention of both bills is to extend SRF authorizations. S. 1961 authorizes
$35 billion total for FY2003-2007 ($20 billion for the CWA SRF, $15 billion for the
SDWA SRF), while H.R. 3930 also authorizes $20 billion for the CWA SRF for the
same time period. In addition, both would conform the two laws in several respects.
For example, the SDWA currently allows states to offer longer loan repayment
periods and additional subsidization to disadvantaged communities, and both bills
would add parallel provisions to the CWA.
The bills are not identical, however. In some cases, they take different
approaches to an issue, such as how to revise the formula for state-by-state allotment
of SRF capitalization grants. They differ in other ways, as well. S. 1961, but not
H.R. 3930, includes provisions modeled on the current SDWA that would allow
private utilities to receive CWA SRF assistance. S. 1961 includes other provisions
not in the House bill. One requires a study of public water system and wastewater
treatment works rate structures. Another calls for a study of to identify status and
trends of freshwater and groundwater resources in the United States. It also includes
a new grant program to assist small community drinking water projects. H.R. 3930
includes some provisions not in the Senate bill. For example, it would extend
requirements for 11 CWA reports to Congress.
Congressional committees are considering this water infrastructure legislation.
Following a hearing on March 13, 2002, the House Transportation and Infrastructure
Committee approved H.R. 3930 on March 20. The Senate Environment and Public
Works Committee held hearings on S. 1961 and several other bills on February 26
and 28 and approved S. 1961 with amendments on May 17.
Contents
In troduction ......................................................1
Table 1. Comparison of Water Infrastructure Legislation..................4
Definitions ...............................................4
Recipients Eligible for Assistance.............................4
Projects Eligible for Assistance...............................4
Fund Management.........................................5
Extension of Loans........................................6
Additional Subsidization....................................6
Financial Assistance to Small Systems from the SRF..............8
Technical Assistance to Small Systems from the SRF.............8
EPA Technical Assistance Grants.............................9
State Administrative Costs Set-Aside.........................10
Reservation of Funds for Planning...........................10
Cross-cutting Program and Federal Requirements...............10
Requirements for Receipt of Funds...........................11
No Assistance for Systems in Noncompliance..................12
Technical, Managerial, and Financial Capability
Requirements for Assistance............................13
Consistency with Planning Requirements......................15
Priority System Requirement................................15
Intended Use Plan........................................16
Allotment ...............................................16
SRF Authorization........................................17
Cross-collateralization between CWA & SDWA SRFs...........18
SRF Set-Aside for Indian Programs...........................18
Small Drinking Water System Grant Program..................19
Small System Technology Assistance Centers..................21
Environmental Finance Centers..............................21
Miscellaneous ...........................................21
Demonstration Program for Water Quality Enhancement
and Management.....................................22
Rate Study..............................................23
Streamlining the SRF Application and Review Process...........23
Water Resource Planning...................................24
Nutrient Control Technology Program........................24
Wet Weather Watershed Projects............................24
Preservation of Reporting Requirements.......................25
New York City Watershed Protection Program..................25
Water Infrastructure Financing Legislation:
Comparison of S. 1961 and H.R. 3930
Introduction
This report provides a side-by-side comparison of two major bills in the 107th
Congress concerning water infrastructure project financing. It compares provisions
of S. 1961, the Water Investment Act of 2002, which would amend both the Clean
Water Act (CWA) and Safe Drinking Water Act (SDWA), and H.R. 3930, the Water
Quality Financing Act of 2002, which would amend only the CWA. It also describes
relevant provisions of current law that would be affected or modified by the bills.
The CWA and SDWA provisions that by these two bills would amend are
principally the portions of those laws that authorize federal financial assistance to
State Revolving Loan Funds (SRFs) for purposes of building and upgrading
wastewater treatment and drinking water treatment facilities in compliance with those
laws, respectively. Under both programs, federal capitalization grants are provided
as seed money for state-administered loans. Recipients repay loans to the state,
enabling the state to build up a source of capital for future investments. Congress
established the CWA SRF program in 1987 (P.L. 100-4), replacing what previously
had been a CWA program of grants to municipalities. Before 1996, the SDWA had
not authorized federal assistance for drinking water treatment facilities, but in that
year, Congress established the SDWA SRF program (P.L. 104-182), modeling it after
the CWA program while also refining it to reflect early implementation of P.L. 100-
4. (For background information, see CRS Report RL31116, Water Infrastructure
Funding: Review and Analysis of Current Issues.)
A key intention of both bills is to extend and increase SRF authorizations. In
the case of the CWA program, authorizations under the 1987 law expired at the end
of FY1994, but Congress has continued to appropriate monies for capitalization
grants each year since then. The SDWA SRF program is authorized through
FY2003. S. 1961 authorizes $35 billion total for the two SRF programs for FY2003-
3930 also authorizes $20 billion for the CWA SRF for the same time period. In
addition, both S. 1961 and H.R. 3930 would conform aspects of the programs in the
two laws. For example, the SDWA currently allows states to offer longer loan
repayment periods and additional subsidization on loans to disadvantaged
communities, and both bills would add parallel provisions to the CWA.
The bills are not identical, however. In some cases, they take different
approaches to an issue, such as how to revise the formula for state-by-state allotment
of SRF capitalization grants. They differ in other ways, as well. S. 1961, but not
H.R. 3930, includes provisions modeled on the current SDWA that would allow
private utilities to receive CWA SRF assistance. The Senate bill would require states
to work with wastewater utilities to attain technical, managerial, and financial
capability. The SDWA currently has a similar provision. Both bills would permit
states to make longer term SRF loans to economically disadvantaged communities;
H.R. 3930 would permit such loans to be made for up to 30 years, while S. 1961
generally extends clean water and drinking water SRF loans from 20 years to up to
30 years and would permit loans to economically disadvantaged communities under
both programs to be made for up to 40 years. The House bill addresses several issues
not included in the Senate measure; it would, for example, extend requirements for
11 CWA reports to Congress and reauthorize the Act’s state management assistance
grant program in Section 106.1
House and Senate committees held oversight hearings on water infrastructure
financing issues during the 1st Session of the 107th Congress. Attention to specific
legislation is underway in the 2nd Session. The Senate Environment and Public
Works Committee held hearings on several bills (S. 252, S. 285, S. 503, S. 1044 and
S. 1961) on February 26 and 28, and the House Transportation and Infrastructure
Subcommittee on Water Resources and Environment held a hearing on H.R. 3930
on March 13.
H.R. 3930 was approved by the full House committee on March 20 with an
amendment concerning applicability of Davis-Bacon Act prevailing wage
requirements (see page 10). The Senate Environment and Public Works Committee
approved S. 1961 on May 17. During markup, the committee adopted several
amendments, including provisions concerning prevailing wage requirements; a
revised state-by-state allocation formula for the CWA SRF (see page 16); and
authorization of several new grant programs--to assist small community drinking
water projects (page 19), nutrient control treatment projects at wastewater plants
(page 24), and wet weather watershed projects (page 24).
Several other legislative proposals, although not specifically described in this
report, also have been introduced in the 107th Congress.2 These include:
!H.R. 688/S. 252, to authorize $15 billion in CWA SRF appropriations and
expand the types of projects eligible for CWA SRF assistance,
1 As introduced, H.R. 3930 also included two provisions to modify portions of federal tax
law that affect wastewater and drinking water infrastructure financing. One provision would
modify the Internal Revenue Code to reclassify bonds for projects furnishing water and
sewer projects as exempt from annual state caps on private activity bonds. The other would
modify the Code to exempt earnings on bonds collateralized with assistance from a CWA
SRF or a SDWA SRF from requirements to rebate to the government arbitrage profits on
unspent bond proceeds. These tax provisions were included in H.R. 3930 as ordered
reported by the Transportation and Infrastructure Committee on March 20. The bill was
subsequently referred to the Ways and Means Committee for consideration of matters within
its jurisdiction. That committee ordered the bill reported on April 17 with an amendment
which removed the tax provisions.
2 Congress also has considered water infrastructure legislation that focuses specifically on
security issues. For a discussion of this legislation see, for example, CRS Report RL31294,
Safeguarding the Nation’s Drinking Water: EPA and Congressional Actions.
!H.R. 1178/S. 503, to authorize $750 million per year for SDWA grants to
public water systems that serve small communities,
!H.R. 1750, to reauthorize the CWA SRF program at $5.4 billion per year
through FY2006,
!H.R. 1751, to reauthorize the CWA’s previous construction grants (Title II)
program at $5.4 billion per year through FY2006,
!H.R. 3224/S.1299, to authorize $1.9 billion for the period FY2001-FY2006
for grants to assist small public water systems in complying with SDWA
standards,
!H.R. 3792, to authorize $25 billion in appropriations for CWA SRFs and
expand the types of eligible projects,
!S. 285, to authorize the use of CWA SRF monies for construction of water
conservation and quality improvements, and
!S. 1044, to provide CWA assistance through grants to states in the
Chesapeake Bay watershed for installing nutrient removal technologies at
wastewater treatment plants.
Table 1. Comparison of Water Infrastructure Legislation
Current LawS. 1961H.R. 3930
initions
Adds definitions of “disadvantaged community,”Defines “small treatment works” as those serving a
ided in §502.“disadvantaged user,” and “small treatment works”population of 20,000 or less. (section 127 of H.R.
to CWA §502. Defines small wastewater treatment3930)
works as those serving a population of 10,000 or
less. (section 101 of S. 1961)Adds definition of “treatment works” to CWA
§502. (section 151)
ing Water Act (SDWA) definitionsAdds definition of “disadvantaged user” to sectionNo new definitions.
nerally are provided in §1401. DisadvantagedSDWA 1452(d). Defines a disadvantaged user as
munity is defined in §1452(d). Small public“a person that meets affordability criteria
ter systems are described as systems serving aestablished, after public review and comment, by
iki/CRS-RL31344the state in which the person resides.”
g/where.(section 205(a))
s.orligible for Assistance
leak
://wikiides that eligible assistance municipality,Adds private utilities that principally treatmunicipal wastewater or domestic sewage asNo comparable CWA language concerning privateutilities.
httpunicipal, interstate, or state agency.eligible recipients for CWA State Revolving Fund
(SRF) assistance. (section 103(c)) If a state includes
private utilities in its needs survey, the state shall
ensure that private utilities are eligible to receive
SRF assistance. (section 103(i))
WA §1452(a) and (f) provide that eligibleSpecifies that if a state includes the needs of privateNo comparable provision.
ately or publiclyutilities in its needs survey, then the state must
munity water systems and nonprofitensure that private utilities are eligible to receive
munity water systems, other than systemsSRF assistance. (section 206)
federal agencies.
ligible for Assistance
pes of projectsClarifies that costs for planning, design, associatedNo comparable language for costs of planning,
Current LawS. 1961H.R. 3930
ible for financial assistance (construction ofpreconstruction, and necessary siting activities aredesign, and preconstruction activities.
owned treatment works, implementationeligible for assistance.
anagement
ram, and development and implementation ofAdds water conservation improvement projects;Adds lake protection projects (CWA §314),
conservation and managementwater reuse, reclamation or recycling projects;decentralized wastewater treatment systems,
projects to increase facility security; and measuresmunicipal stormwater runoff measures, water
to control municipal stormwater to list of types ofconservation, treatment works security measures,
eligible projects.watershed development and implementation
projects (CWA §121) to list of eligible projects.
Eligible projects may use one or more(section 123(a))
nontraditional approaches (e.g., land conservation,
decentralized wastewater treatment innovations,
other nonpoint best management practices) (section
iki/CRS-RL31344ay be for expenditures that the AdministratorExpands §1452(a)(2) to allow water systems to usefunds for planning, design, and associatedNo comparable provision.
g/wined will facilitate compliance withpreconstruction expenditures, and for projects to
s.orulations or significantly furtherconsolidate community water systems. Funds may
leakectives.also be used to provide loans for projects or
://wikiactivities to increase the security of public water
http) authorizes states to use up to 15% of thesystems. (section 203)
ation grant (not more than 10% for any 1
ity) to provide loans to public water systemsAmends §1452(k) to broaden other eligible uses of
conservation easements or land forSRF funds to include developing and implementing
ide loans tosource water protection programs (including
munity water systems for voluntary sourcewellhead protection programs). (section 204(e))
easures; to provide capacity
elopment assistance; and to establish and
plement wellhead protection programs.
nd Management
s that CWA SRFs beRequires that CWA SRFs be maintained andRequires that CWA SRFs be maintained and
aintained and credited with loan repayments andcredited with loan repayments and be maintained incredited with loan repayments and fees on loan
aintained in perpetuity.perpetuity. (section 103(c))recipients and be maintained in perpetuity. (section
Current LawS. 1961H.R. 3930
s that SDWA SRFs beNo additional provisions.No additional provisions.
aintained and credited with loan repayments and
aintained in perpetuity.
ounts not needed for current obligation or
ust be invested in interest bearing
ations.
tension of Loans
ides that a water pollutionAuthorizes a water pollution control revolving fundPermits state to provide an extended term for a
olving fund may make loans at termsto make loans at terms not to exceed 30 years, soCWA SRF loan (up to 30 years, so long as that
ears.long as that period does not exceed the project’speriod does not exceed the project’s design life) to
design life.a project that meets affordability criteria
established by the state. (section 123(b))
iki/CRS-RL31344Permits state to provide an extended term for a
g/wCWA SRF loan to a disadvantaged community (up
s.orto 40 years, so long as that period does not exceed
leakthe project’s design life). (section 103(d))
://wikiWA §1452(f) provides that a SDWA SRFFunds may be used to make loans at terms not toNo additional provisions.
httpay make loans at terms not to exceed 20 years.exceed 30 years; the term may not exceed the
project’s design life.
ay extend the term of a loan
uch as 30 years for disadvantagedPermits a state to provide an extended term for a
munities, provided the term does not exceedloan to a disadvantaged community (up to 40 years,
ect’s design life.provided that the term does not exceed the project’s
design life). (section 204(c))
ation
its states to make loans at orAuthorizes states to provide additionalAuthorizes states to provide additional
market interest rates, including interest freesubsidization from a CWA SRF, includingsubsidization from a CWA SRF, including
provisions forforgiveness of principal, to treatment works for useforgiveness of principal and negative interest
ation or forgiveness of loans.in developing technical, managerial, and financialloans, to projects to benefit a municipality that
capacity or for projects using non-traditionalmeets the state’s affordability criteria. Also may
Current LawS. 1961H.R. 3930
approaches. Authorizes states to provide additionalprovide subsidization to implement alternative
subsidization, including forgiveness of principal,processes or techniques that may result in cost
for projects in disadvantaged communities. savings or increased environmental benefits.
(section 103(d)(4))
Authorizes states to provide additionalTotal amount of subsidization provided by a state
subsidization, including forgiveness of principal, tomay not exceed 30% of its capitalization grant.
be directed through the user charge rate system or
similar program to disadvantaged users within theState also may provide additional subsidization to
community’s residential user class of themunicipalities that do not meet affordability
community. Subsidization under this provisioncriteria if the municipality seeks to benefit
may not exceed 15% of the state’s capitalizationindividual ratepayers in the residential user rate
grant in that year. (section 103(d)(4))class and ensures that this subsidization will be
directed through a user charge rate system to such
Additional subsidization under these 3 provisionsratepayers.
iki/CRS-RL31344may not exceed 30% of the state’s capitalization
g/wgrant in that year. (section 103(e)(2))Directs states to establish affordability criteria by
s.orSept. 30, 2003. EPA may provide information to
leakA disadvantaged user may not receive additionalassist states in establishing criteria.
subsidization under both the provision concerning
://wikiuser charge system subsidization and subsidized
httpassistance of treatment works project costs. (section
No comparable set-aside provision.
Set-aside: In any year when CWA SRF
appropriations exceed $1.4 billion, a state shall set
aside 25% of the difference between its
capitalization grant and its proportionate share of
$1.4 billion to provide additional subsidization.
(section 123(e))
Current LawS. 1961H.R. 3930
es states to provideAmends §1452(d)(1) to authorize states to use 15%No comparable provision.
ation, includingof the capitalization grant to provide additional
iveness of principal, for projects insubsidization for communities not defined as
antaged communities.disadvantaged if the recipient demonstrates and
e total amount of loan subsidies may notdocuments to the state that the added subsidization
ation grant foris directed through the user charge rate system to
ear. Defines ‘disadvantaged community’ asdisadvantaged residential users.
ice area of a system that meetsEPA may provide information to assist states in
criteria set by the state. EPA mayidentifying disadvantaged users. A disadvantaged
ation to assist states in establishinguser within a community that receives assistance as
a disadvantaged community is not eligible for this
additional subsidization.
(section 205(a))
nancial Assistance to Small Systems from the SRF
iki/CRS-RL31344 no existing provisionNo comparable provision.Directs states, beginning in FY2004, to use at least
g/w15% of CWA capitalization grants to assist
s.ormunicipalities with population less than 20,000, if
leakthere are sufficient applications for assistance.
://wiki(section 122(c))
httpNo additional provision.No additional provision.
ount credited to a state SDWA SRF in any
ear must be available for providing loan
stems serving fewer than 10,000
ated
ible projects.
ssistance to Small Systems from the SRF
no existing provisionAuthorizes states to provide CWA SRF assistanceAuthorizes states to provide CWA SRF assistance
to small treatment works for technical and planningto small treatment works in financial management,
assistance and for assistance in financialuser fee analysis, capital improvement planning,
management, user fee analysis, budgeting, repairoperation and maintenance, repair schedules.
scheduling and other similar activities. AmountsAmounts shall not exceed 2% of capitalization
shall not exceed 2% of capitalization grant awardsgrant awards to the fund. (section 123(d))
Current LawS. 1961H.R. 3930
to the fund. (section 103(d)(4))EPA shall assist states in establishing simplified
procedures for small treatment works to obtain
CWA SRF assistance and shall publish a manual to
assist such systems in obtaining assistance.
(section 127)
)(2) authorizes states to use 2%No additional provision.No additional provision.
ation grant to provide technical
stems serving 10,000
A Technical Assistance Grants
no existing provision, but §104(b)Modifies CWA §603 to authorize EPA to makeModifies CWA §104(b) to authorize EPA to make
nerally authorizes EPA to support or conductgrants to qualified nonprofit providers for technicalgrants to nonprofit organizations concerning
rious types of research, investigations, andassistance to small wastewater treatment worksassistance to rural and small municipalities,
iki/CRS-RL31344.(located in rural areas and serving fewer than 3,300publicly owned treatment works and decentralized
g/wusers) in planning, developing, and obtainingwastewater treatment systems concerning
s.orfinancing for eligible projects. Authorizes $7planning, design, financing, construction and
leakmillion per year for FY2003-2007. (section 103(h))operation of wastewater treatment works.
Authorizes not less than $15 million per year for
://wikiFY2003-2007. (section 111)
http
es EPA to reserve upNo additional provision.No additional provision.
ide
all systems; the total
ount provided may not exceed the amount
ed under §1442(e) (regarding small
stem technical assistance and training).
es EPA to provide
all systems through
rider and regional technical assistanceNo additional provision.No additional provision.
rams. Assistance may go to nonprofit
anizations. Authorizes $15 million for each of
FY2003.
Current LawS. 1961H.R. 3930
dministrative Costs Set-Aside
e up to 4%Increases allowed CWA reservation forIncreases allowed reservation for administrative
ation grant to cover the reasonableadministrative costs to 6% beginning in FY2003.costs to $400,000, or 1/5 percent per year of the
inistering the SRF.(section 103(d)(5))current valuation of the state’s SRF, whichever is
greater. (section 123(c))
)(2) allows a state to use up toIncreases allowed SDWA reservation forNo additional provisions
ation grant to cover theadministrative costs to 6%.
inistering programs under(section 305(b)(1))
ide technical assistance to
ater systems.
his section further authorizes states to use up
ation grant
inister public water system supervision
iki/CRS-RL31344rams, to administer or provide technical
g/wh source water protection
s.orrams, to develop and implement capacity
leakelopment strategies, and for operator
://wikirams. For these purposes, statesust provide a dollar for dollar match of funds.
http
ion of Funds for Planning
ates to reserve 1% ofIncreases reservation of funds for planning to 2% ofNo comparable provision.
s allotted under Title VI to carry out specifiedallotted sums. (section 103(j))
activities.
no provisionNo provision.No provision.
oss-cutting Program and Federal Requirements
es 16 specific statutoryEliminates the applicability of some Title IIEliminates the applicability of some Title II
ents to projects funded with aprovisions to projects funded with the CWA SRFprovisions to projects funded with the CWA SRF
ation grant (but not to SRF activity madebut extends requirements to comply with:but extends requirements to comply with:
loan repayments or other state monies). Allrestrictions on funding sewer collector systemsrestrictions on funding sewer collector systems
Current LawS. 1961H.R. 3930
o are CWA-specific carryover(CWA §211); applicability of NEPA (CWA(CWA §211); cost-effectiveness and value
alency”) requirements from the previous§511(c)); and applicability of Davis-Baconengineering review (CWA §218); applicability of
A Title II construction grant program. Otherprevailing wage requirements (CWA §513). Davis-NEPA (CWA §511(c)); and applicability of Davis-
cutting federal requirements are:Bacon would apply to assistance made from federalBacon prevailing wage requirements (CWA §513).
of the National Environmentalcapitalization grants and other monies in the SRF,Davis-Bacon would apply to assistance made from
licy Act and Davis-Bacon prevailing wageincluding loan repayments. Also modifies CWAfederal capitalization grants and other monies in
isions for treatment works construction. Thesec. 211 to update limits on sewer collector systemsthe SRF, including loan repayments. (section
ents applied to funds provided throughto those in systems or communities in existence as122(a))
of Feb. 15, 2002. (section 103(b))
isions (§1452) do not specifyRewrites SDWA §1450(e) to expressly applyNo comparable provision.
cutting requirements, but, as withDavis-Bacon to all construction projects financed in
ber of federal laws,whole or in part, and by any form of assistance
e orders, and government-wide policiesprovided under SDWA (including assistance
by their own terms to projects and activitiesprovided from state drinking water SRFs). (section
iki/CRS-RL31344ing federal financial assistance, regardlesshether a statute authorizing assistance makes202)
g/w applicable. Several apply only to the state as
s.orrant recipient. All projects for which the state
leakides SDWA SRF assistance in amounts up to
://wikiount of the capitalization grant must
httpply with cross-cutters; amounts greater than
ect to cross-cutters. §1450(e)
to take such action as may be needed
pliance with the Davis-Bacon Act.
quirements for Receipt of Funds
WA §602(b) specifies a number of conditionsAdds a requirement that CWA SRF assistance mayAdds a requirement that, beginning in FY2004,
F assistance. (See discussiononly be provided if the recipient demonstrates andstates shall require as a condition of receiving
e on cross-cutting requirements.)documents to the state that it has consideredCWA SRF assistance that recipients conduct
consolidated ownership or management;physical and operational analysis of any system
cooperative partnerships; and use of methodologiesproposed for repair, replacement, or expansion;
or technologies that are more environmentallyevaluate the cost and effectiveness of innovative
sensitive. Recipient also must have in effect anand alternative processes and techniques and select
asset management plan. Recipients of funds aboveprojects accordingly; analyze the cost and
Current LawS. 1961H.R. 3930
$500,000 in any fiscal year also must have in effecteffectiveness of alternative management and
a rate plan to achieve actual cost of service tofinancing approaches (including rate structures,
customers and which addresses capital replacementconsolidation, public-private partnerships); and
funds. These requirements do not apply to fundsimplement a plan for maintaining, replacing, and
used solely for planning, design, preconstructionfunding its wastewater infrastructure. (section
activities, or security measures. (section 103(h))122(c))
Prohibits state from providing CWA SRF
assistance to a municipality unless recipient has or
No comparable provision.will adopt a system of charges or dedicated ad
valorem tax sufficient to pay for operation,
maintenance and replacement of the system (note:
this equivalency provision, CWA §204(b)(1)(A),
applied through FY1994 under §602(b)(6)).
(section 122(c))
iki/CRS-RL31344e the CWA provisions,Amends §1452(f) to further require that a recipientNo comparable provision.
g/wposes various requirements on recipients ofdemonstrate and document to the state that the
s.orF assistance. §1452(f) further requires that arecipient considered, during the planning and
leakengineering phase, consolidating management or
://wikienue (or for privately owned system,ownership; forming cooperative partnerships; and
httponstrate adequate security) to repay loan. using methodologies or technologies that may be
more environmentally sensitive.
A recipient receiving more than $500,000 must
demonstrate and document to the state that it has in
effect a plan to achieve a rate structure that reflects
actual cost of service to customers and that
addresses capital replacement funds, and has in
effect an asset management plan. These
requirements do not apply to assistance used for
planning, design, or security measures. (section
Assistance for Systems in Noncompliance
no existing provisionProhibits state from providing CWA SRF assistanceNo comparable provision.
Current LawS. 1961H.R. 3930
(except for planning, design, or security purposes)
to a treatment works that is in significant
noncompliance with the CWA. Such treatment
works may receive assistance if it has entered into
an enforceable administrative or judicial order to
effect compliance or if assistance would enable the
treatment works to take sufficient corrective action.
(section 103(h))
ides that no assistanceNo additional provision.No additional provision.
ay be made to a system that is in significant
pliance. However, such systems may
e assistance if the assistance will ensure
pliance and the system considers
, if the state determines that
iki/CRS-RL31344 measures are needed to ensure thestem’s compliance capacity. (See following
g/w
s.or
leaknical, Managerial, and Financial Capability Requirements for Assistance
://wiki no existing provision, however CWAModifies CWA to require states to implementReinstates the equivalency provision of CWA
http encourage and assistwithin 3 years a strategy to assist wastewater§204(b)(1)(B) to require that recipients of
rants assistance totreatment works in attaining and maintainingassistance have the legal, institutional, managerial,
elop capital financing plans. CWAtechnical, managerial, operations, maintenance, andand financial capability to ensure adequate
e funding, ancapital investments and in meeting and sustainingconstruction, operation, and maintenance of the
ust have legal, institutional,compliance with applicable federal and state laws. treatment works. (section 122(c))
anagerial, and financial capability to ensureThe state shall include a description of how it will
aintenanceuse its resources and authorities to assist treatment
ent works. These “equivalency”works in attaining and maintaining technical,
isions applied to SRF assistance, under CWAmanagerial, and financial capacity.
h FY1994.
Beginning 4 years after enactment, states shall
require treatment works to demonstrate and
document to the state adequate technical,
managerial, and financial capacity including, for
Current LawS. 1961H.R. 3930
systems that receive more than $500,000 in
assistance in any fiscal year, implementation of an
asset management plan. Does not apply to funds
for planning, design, or security purposes. (section
Requires states to report annually to EPA on
progress made in improving the technical,
managerial, and financial capacity of treatment
works in the state. (section 103(k))
No additional provision.No additional provision.
development strategies to assist systems
eloping and maintaining technical,
anagement capacity to comply
iki/CRS-RL31344ing water regulations.
g/w in FY1999,
s.oration grant
leakal authority toNo additional provision.
://wiki systems demonstrate technical,
httpanagerial, and financial capacity to comply with
ulations. EPA must withhold 10% in
eloping and implementing a
ategy.
ides that no assistance
ay be made to a system that lacks the technical,
anagerial, and financial capacity to ensure
WA compliance or is in significant
pliance.
ides that these systems may
e assistance if the assistance will ensure
pliance and the system considers restructuring
Current LawS. 1961H.R. 3930
es including ownership,
anagement, accounting, rates, maintenance,
e water supply, consolidation, etc.), ifAmends §1452(a)(3)(B) to include in the list of
ines the measures are needed torestructuring measures to be considered by a
stem will have compliance capacitysystem: the formation of regional partnerships.
er the long term. (section 204(a))
stency with Planning Requirements
rants underRequires states to ensure that applicants forNo additional provision.
ious Title II construction grants programfinancial assistance from the CWA SRF
be made if a proposed project wasdemonstrate and document to the state that they will
ity with applicableconsult and coordinate with local land use planning
ional and state water quality plans. Thisagencies, regional transportation planning agencies,
alency” requirement applied to SRFand agencies responsible for watershed plans.
h(section 103(f))
iki/CRS-RL31344
g/w
s.or no existing provisionRequires applicants for financial assistance fromNo comparable provision.
leakthe SDWA SRF to demonstrate and document to
the state that they will consult and coordinate with
://wikiagencies responsible for developing local land use
httpplans, regional transportation plans, and watershed
plans. (section 204(d))
iority System Requirement
es states to determine theUpdates the CWA priority list requirement from theUpdates the CWA priority list requirement.
of specific projects to be funded. Act’s Title II construction grants program. Requires states to establish or update a list of
entifies categories of eligible treatment worksRequires each state to develop and periodicallyprojects and activities for which SRF assistance is
ects that states may include on priority list.update a project priority system for use insought, using a listing methodology each state
prioritizing SRF projects, taking into considerationshall establish. States shall seek to achieve the
chemical, physical and biological data that aregreatest degree of water quality improvement and
reasonably available and are of sufficient qualityconsider whether improvements would be realized
and providing opportunity for public input. Statewithout SRF assistance. (section 125(a))
shall biennially publish a summary of projects
eligible for assistance (i.e., treatment works andIf the state does not fund projects and activities in
Current LawS. 1961H.R. 3930
other projects), including a project’s priority andthe order on the priority list, it must provide an
anticipated funding schedule. (section 103(g))explanation of the change. (section 125(b))
elopNo additional provision.No additional provision.
tended Use Plans for SRF funds, giving priority
funds for projects that: address the most
s; are needed to ensure compliance,
stems most in need on a per
section).
ended Use Plan
§606(c) requires each state to annuallyModifies CWA §606(c) to require that statesNo additional provision.
ing the intended uses ofprovide for significant public outreach of the
ounts available in its SRF and describing howIntended Use Plan and that the Plan include a
iki/CRS-RL31344oals of the SRF.summary of priority projects to be funded from the
g/wSRF in that year. (section 103(k))
s.or
leakWA §1452(b) requires each state, afterModifies §1452(b) to require states to provide forNo additional provision.
iding for public review and comment, to“significant public outreach” before preparing the
://wiki prepare a plan identifying the intendedIntended Use Plan. (section 204(b))
httpounts available in its SRF, including
ethods for distributing funds and a
oals of the
t
ides a state-by-stateRevises CWA allotment for FY2003-2007. MovesCurrent CWA allotment formula shall apply in
ula for annual allotment of available funds. towards allotment based solely on needs (needsFY2002 and FY2003. Beginning in FY2004,
is formula, in effect since 1987, combinesformula means allotment in accordance with eachappropriated amounts up to $1.35 billion shall be
s. No state receivesstate’s proportional share of total needs, butallotted under the current allotment formula.
ailable funds (except forexcluding needs for nonpoint pollution controlAmounts that exceed $1.35 billion shall be allotted
hich generally receive smallerprojects; no state receives less than 0.7% of totalaccording to a needs-based formula to be
funds). For total funds (appropriations) up to $1.35developed by EPA; no minimum state share
billion, the following allotment applies: FY2003,specified. (section 124)
Current LawS. 1961H.R. 3930
50% existing §205(c)(3) formula, 50% needs
formula; FY2004, 37.5%/62.5% existing
formula/needs formula; FY2005, 25%/75% existing
formula/needs formula; FY2006, 12.5%/87.5%
existing formula/needs formula. Beginning in
FY2007, all funds shall be allotted in accordance
with each state’s proportional share of needs.
Includes a complex “hold harmless” exception
formula so that no state gains or loses more than
For funds greater than $1.35 billion, funds shall be
allotted in accordance with each state’s proportional
share of total needs. Small state protection: no
small state shall receive less than 1% of available
iki/CRS-RL31344funds (defined as state that would receive more than
g/w1% under existing formula in FY2002 but with
s.orreported needs of less than 0.7%). Allocates a total
leakof 0.25% of available funds among Guam, Virgin
Islands, American Samoa, Commonwealth of
://wikiNorthern Mariana Islands, to be allotted by EPA.
http(section 103(i))
No additional provision.No additional provision.
ula that
share of each state’s
most recent needs survey
ery 4 years). The minimum share
istrict of Columbia is 1% of
ailable funds; territories receive up to 0.33%.
Authorization
WA §607 authorizes $8.4 billion inAuthorizes CWA SRF capitalization grants asAuthorizes CWA SRF capitalization grants as
ation grants for state revolving funds forfollows: $3.2 billion in each of FY2003 andfollows: $2 billion in FY2003, $3 billion in
Current LawS. 1961H.R. 3930
RF capitalization grants sinceFY2006; and $6 billion in FY2007 - total $20FY2006, $6 billion in FY2007 - total $20 billion.
ears havebillion. Reserves $1 million per year for EPA to(section 128)
ear.)pay the costs of conducting needs surveys. (section
) authorizes SRF capitalizationAuthorizes SDWA SRF capitalization grants asNo comparable provision.
ants: $599 million for FY1994, and $1 billionfollows: $1.5 billion in FY2003; $2 billion in each
and $6 billion in FY2007 - total $15 billion.
Reserves $1 million per year to pay the costs of the
needs survey. (section 208)
oss-collateralization between CWA & SDWA SRFs
no existing provision, butModifies CWA §603 to permit a state to transfer upNo comparable provision.
to 33% of a CWA capitalization grant to its SDWA
iki/CRS-RL31344 states to combine assets of CWA andSRF and vice versa. (section 305(a))
g/wity for bond issues to
s.or capacity of one or both SRFs.
leak
endments of 1996 (P.L.Adds this provision as a permanent authority underNo comparable provision.
://wiki182) authorized a state, prior to FY2002, toSDWA §1452(g).
http(section 305(b)(2))
ation grant to the CWA SRF or an
alent amount from the CWA SRF to the
Set-Aside for Indian Programs
es the EPA Administrator toIncreases CWA funds reserved for Indian Tribes toSame as S. 1961. (section 152)
e 0.5% of funds appropriated under §207not less than 0.5% or more than 1.5% of funds
eloping waste treatment management plansavailable under §207. (section 102)
e treatment works to
e Indian tribes. Appropriations laws since
e reserved 1.5% of CWA SRF
ndian tribes.
Current LawS. 1961H.R. 3930
es EPA to reserveNo additional provision.No additional provision.
rants to
laska Native villages.
rant Program
ll System Grant ProgramAmends the SDWA to add new Subpart G toNo comparable provision.
establish within EPA a small public water system
not applicableassistance program for eligible entities within states
no provisionand areas governed by Indian Tribes.
For purposes of this program, defines “eligible
entity” to include a small system that serves an
economically disadvantaged community or a
community that could become economically
disadvantaged, or incurs more than $3 million in
costs in complying with SDWA regulations; and
iki/CRS-RL31344systems in certain specified locations.
g/wDefines small public water systems as community
s.orand noncommunity water systems that serve
leakpopulations of 15,000 or fewer persons. (section
://wiki 213)
httprogram prioritiesDirects the EPA to provide grants to eligibleNo comparable provision.
systems for activities that: address the most serious
health risk from lack of compliance; are needed to
ensure compliance; and assist communities most in
need, based on median household income, under
affordability criteria established by the state (or
EPA for entities in Tribal areas). EPA must also
consider giving priority to activities carried out by
communities that form management cooperatives.
For entities in Tribal areas, EPA and the Indian
Health Service must develop an annual list of
eligible activities based on the above priorities.
(section 213)
Current LawS. 1961H.R. 3930
Requires EPA to use at least 1.5% of the availableNo comparable provision.
funds to provide grants to nonprofit technical
assistance organizations to be used to assist eligible
entities in: assessing needs; identifying additional
funding sources to meet cost-sharing requirements;
planning, implementing and maintaining activities
that receive funding. Entities may use no more than
(section 213)
Requires EPA to use at least 3% of funds availableNo comparable provision.
each year to provide grants to eligible entities
located in areas governed by Indian Tribes. (section
Grants may not be provided if EPA determines that No comparable provision.
iki/CRS-RL31344an entity lacks the technical, managerial,
g/woperations, maintenance, or financial capacity to
s.orensure compliance or is in significant
leaknoncompliance with a drinking water regulation,
://wikiunless EPA determines that the grant will ensurecompliance and other specified conditions are met.
http(section 213)
Provides that the share of the total cost of anNo comparable provision.
activity funded by a grant generally may not exceed
80%; EPA may waive this requirement, partially or
completely, as needed. (section 213)
Requires EPA to report annually, for FY2003-2007,No comparable provision.
to the Senate Committee on Environment and
Public Works and the House Committee on Energy
and Commerce. The reports must list the activities
receiving funds, identify the number and amounts
of grants awarded and the grant recipients. (section
Current LawS. 1961H.R. 3930
Authorizes for this program $1 billion for each ofNo comparable provision.
FY2003-2007. (section 213)
logy Assistance Centers
no existing provisionNo provision.No provision.
WA §1420(f) authorizes EPA to make grantsAmends §1420(f) to broaden the duties of theNo comparable provision.
her learning to establish andcenters to include: technology verification, and
all public water system technologytesting of innovative technologies. Directs EPA, at
uties of the centers includeleast every 2 years, to review and evaluate this
iding training and technical assistance toprogram. If EPA determines that a center is not
all systems and systems that serve Indiancarrying out its duties, EPA must notify the center
es.and, within 180 days of the notice, may stop
thorizes $2 million for each of FY1997-funding the center. Authorizes $6 million for each
iki/CRS-RL31344
g/w
s.orvironmental Finance Centers
leak
no existing provisionNo provision.No provision.
://wikiWA §1420(g) requires EPA to provide initialExtends authorization of $2 million per year forNo comparable provision.
http for 1 or more university-basedFY2003-FY2007.
ironmental finance centers to provide(section 207(b))
ate and local officials in
eloping the financial and managerial capacity
stems.
uthorizes $1.5 million for each of FY1997-
plement this program.
States’ rightsReaffirms CWA §101(g) for the purposes of this actNo comparable provision.
(S. 1961) and states that nothing in this act impairs
) states policy of Congress that theor affects any right or jurisdiction of a state with
Current LawS. 1961H.R. 3930
of states to allocate quantities of waterrespect to the water of the state or supersedes or
urisdiction shall not be superseded,abrogates state with respect to allocating quantities
ated, or otherwise impaired by this Act.of water or any right to quantity or use of water
established by a state. (section 502)
ource aquifer protection)
under this section affects rights
ater set by interstate compacts,
e Court decrees or state water laws, or
ents or rights under federal or state
ironmental laws.
State management assistanceNo comparable provision.Authorizes $250 million per year for FY2003-2007
for CWA §106. (section 112)
es grants to states to assist
anagement of state water pollution control
iki/CRS-RL31344rams .
g/wWA §1443 authorizes $100 million for eachNo additional provision.No additional provision.
s.orFY2003 for grants to states to
leakinister public water system supervision
://wikirams .
http Federal review oversightNo comparable provision.Authorizes EPA to allow a state to certify its
compliance with CWA Title VI for purposes of
this review. (section 126)
ersight review of a state’s Intended Use Plan.
WA §1452(r) directs EPA to assess theNo additional provision.No additional provision.
eness of SRFs through FY2001 and report
ress.
rogram for Water Quality Enhancement and Management
no existing provisionDirects EPA to establish a nationwideNo comparable provision.
no existing provisiondemonstration program of 10 projects per year to
promote innovations in technology and alternative
approaches to water quality management or water
Current LawS. 1961H.R. 3930
supply and reduce municipalities’ costs to comply
with the CWA and SDWA. Specifies criteria for
selection of municipalities to carry out projects and
types of projects relating to e.g., excessive nutrient
growth, lack of alternative water supply, sewer
overflows, problems with naturally-occurring
constituents. Non-federal share of project costs
shall be at least 20%. Authorizes $20 million per
year for FY2003-2007. Also directs EPA to carry
out a grant program for research and development
on innovative and alternative technologies for water
quality or drinking water supply; authorizes $20
million per year for FY2003-2007. (section 302)
e Study
iki/CRS-RL31344 no existing provisionDirects the National Academy of Sciences toNo comparable provision.
g/w no existing provisionprepare a study of the public water system and
s.ortreatment works rate structures in U.S.
leakcommunities. The study shall address issues
://wikiincluding existing rate practices, extent to whichrates include cost of service and infrastructure
httpreplacement, standards for affordability, rates in
disadvantaged communities, successful incentive
rate systems, and recommended industry practices
for use in establishing rate structures. The study
shall be completed within 2 years. (section 303)
reamlining the SRF Application and Review Process
A - no existing provisionDirects the EPA Administrator to identify ways toNo comparable provision.
WA - no existing provisionstreamline and improve the application and review
process for CWA SRF and SDWA SRF assistance
and to submit a report to Congress. (section 304)
Current LawS. 1961H.R. 3930
esource Planning
WA - no existing provisionDirects the U.S. Geological Survey to do a 2-yearNo comparable provision.
no existing provisionstudy assessing the state of water resources in the
U.S. to provide indicators of the status and trends of
fresh water in rivers and reservoirs, groundwater
levels and volumes, and freshwater withdrawals.
The Secretary of the Interior in coordination with
federal agencies shall publish a list of water
resources research priorities focusing on monitoring
and improving the quality of information available
to water resource managers. The Secretary also
shall coordinate a system to communicate water
resource information to decisionmakers, the private
sector, and the general public. Authorizes $3
iki/CRS-RL31344million per year for FY2003-2007. (sections 401-405)
g/w
s.or r ogram
leak
no existing provisionAdds new §701 to the CWA. Directs EPA toNo comparable provision.
://wikiestablish a competitive program of grants to states
httpand municipalities to upgrade nutrient removal
technologies of wastewater treatment works with
permitted design capacity to treat 500,000 gallons
or more of wastewater per day. Federal share of
project costs shall not exceed 55%. Authorizes
$100 million annually for FY2003-2007. Funds
only available in years when Title VI appropriations
exceed $1.35 billion. (section 501)
rojects
erflow Control Grants,Authorizes appropriations of $250 million annuallyNo comparable provision.
ed $750 million in FY2002-2003 in grantsfor FY2004-2007 for this program. Makes a
, transporting, controlling ortechnical correction to redesignate this provision as
municipal combined or separate sewerCWA §122. (section 103(m))
Current LawS. 1961H.R. 3930
erflows.
Reporting Requirements
he Federal Reports Elimination and Sunset ActNo comparable provision.Extends requirement for various CWA reports,
66) authorized elimination ofe.g., Great Lakes research needs, National Estuary
erous agency reports to congressionalProgram activities, Great Lakes Water Quality
mittees at the end of 1999 unless CongressAgreement implementation, state water quality
reports, requirements and costs of water pollution
control. (section 201)
York City Watershed Protection Program
no existing provisionNo provision.No provision.
Section 1443(d)(4) authorizes EPA toReauthorizes the New York City watershed
iki/CRS-RL31344ide assistance to New York State foronstration projects supporting the watershedprotection program to provide $25 million annuallyfor FY2003-FY2007. (section 201)
g/wram to protect the quality of source waters of
s.or City’s water supply. Authorizes $15
leak
illion for FY1997-FY2002; federal assistance
://wikiay not exceed 50% of program costs.
http