For other versions of this document, see http://wikileaks.org/wiki/CRS-RL32503 ------------------------------------------------------------------------------ Order Code RL32503 CRS Report for Congress Received through the CRS Web Water Infrastructure Financing Legislation: Comparison of S. 2550 and H.R. 1560 July 27, 2004 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. 2550 and H.R. 1560 Summary This report provides a side-by-side comparison of two major bills in the 108th Congress concerning water infrastructure project financing. It compares provisions of S. 2550, the Water Infrastructure Financing Act, which would amend the Clean Water Act (CWA) and the Safe Drinking Water Act (SDWA), and H.R. 1560, the Water Quality Financing Act of 2003, which would amend only the CWA. H.R. 1560 was approved by a House Transportation and Infrastructure subcommittee on July 17, 2003; S. 2550 was approved by the Senate Environment and Public Works Committee on June 23, 2004. The CWA and SDWA provisions in these two bills principally involve 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. 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 loan programs. Communities repay loans to the state, providing a source of capital for future loans and other 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. 2550 authorizes $35 billion for FY2005-FY2009 for capitalization grants ($20 billion for the CWA SRF, $15 billion for the SDWA SRF). H.R. 1560 authorizes $20 billion for CWA SRF capitalization grants for FY2004-FY2008. In addition, both would conform the two laws in several respects. For example, the SDWA currently allows states to offer additional subsidization to disadvantaged communities and longer loan repayment periods, and both bills would add similar 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 CWA SRF capitalization grants. S. 2550 includes provisions that would apply prevailing wage requirements of the Davis-Bacon Act to projects that receive SRF funding, and it includes a new grant program to assist small community drinking water projects, as well as grant programs to address lead contamination in schools and in the District of Columbia. H.R. 1560 includes provisions requiring communities to plan for capital replacement needs and to implement an asset management plan for the repair and maintenance of infrastructure. Future prospects for the legislation are uncertain for several reasons, including controversies over application of the Davis-Bacon Act, Administration opposition to funding levels in the bills, limited legislative time remaining in the 108th Congress, and the lack of House consideration of a counterpart to the SDWA provisions of S. 2550. This report will be updated as warranted. Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Table 1. Comparison of Water Infrastructure Legislation . . . . . . . . . . . . . . . . . . 5 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Recipients Eligible for Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Projects Eligible for Assistance, Types of Assistance . . . . . . . . . . . . . . 6 SRF Grants Set-Aside Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Fund Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Extension of Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Additional Subsidization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Financial Assistance to Small Systems from the SRF . . . . . . . . . . . . . 10 Technical Assistance to Small Systems from the SRF . . . . . . . . . . . . 11 Technical Assistance Grants for Rural and Small Treatment Works . 11 State Administrative Costs Set-Aside . . . . . . . . . . . . . . . . . . . . . . . . . 12 Reservation of Funds for Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Cross-Cutting Requirements; Labor Standards . . . . . . . . . . . . . . . . . . 13 Requirements for Receipt of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Priority System Requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Allotment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 SRF Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Cross-Collateralization between CWA and SDWA SRFs . . . . . . . . . 18 SRF Set-Aside for Indian Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 SRF Review Process -- Assistance for Accessing the SRF . . . . . . . . 19 Reports: Needs Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Removal of Lead from Drinking Water in Schools . . . . . . . . . . . . . . . 20 Lead Contamination in Drinking Water in the District of Columbia . 21 Small Public Water System Grant Program . . . . . . . . . . . . . . . . . . . . . 22 Pilot Program for Alternative Water Source Projects . . . . . . . . . . . . . 25 Sewer Overflow Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Watershed Pilot Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 National Estuary Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Sewage Control Technology Grant Program . . . . . . . . . . . . . . . . . . . . 27 Demonstration Program for Water Quality Enhancement and Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Southeast Colorado Safe Drinking Water Supply . . . . . . . . . . . . . . . . 28 Environmental Finance Centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Cost of Service Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Assessment of Perchlorate Contamination . . . . . . . . . . . . . . . . . . . . . 31 Special Water Resources Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Water Infrastructure Financing Legislation: Comparison of S. 2550 and H.R. 1560 Introduction This report provides a side-by-side comparison of two major bills in the 108th Congress concerning water infrastructure project financing. It compares provisions of S. 2550, the Water Infrastructure Financing Act, which would amend both the Clean Water Act (CWA, 33 U.S.C. 1251 et seq.) and the Safe Drinking Water Act (SDWA, 42 U.S.C. 300f et seq.), and H.R. 1560, the Water Quality Financing Act of 2003, which would amend only the CWA. While a number of bills that address water infrastructure project financing have been introduced, these two measures are the focus of legislative activity in the 108th Congress. This report 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, respectively. At the federal level, the SRF programs in the laws are administered by the Environmental Protection Agency (EPA). Under the programs in both laws, federal capitalization grants are provided as seed money for state-administered loan programs. Recipients repay loans to the state, enabling the state to build up a source of capital for future loans and other investments. Thus, monies in the SRF consist of federal capitalization grants from congressional appropriations, required state matching funds (20% of a capitalization grant), and loan repayments. 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 experiences gained during the 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 of the current bills is to extend and increase SRF authorizations, because estimates by states and EPA of funding needed by wastewater and water utilities to comply with the two acts exceed $330 billion. Needs estimates by other groups are even higher. In the case of the CWA program, authorizations under the 1987 law expired at the end of FY1994, while authorizations for the SDWA SRF program expired at the end of FY2003. However, Congress has continued to appropriate monies for capitalization grants each year for both since their authorizations expired. CRS-2 More recently, legislative activity concerning water infrastructure issues has been undertaken in the 107th and 108th Congresses. House and Senate committees held oversight hearings on water infrastructure financing issues during the first session of the 107th Congress, and in the second session, the House Transportation and Infrastructure Committee approved H.R. 3930. No committee report was filed. The Senate Environment and Public Works Committee approved and reported infrastructure financing legislation (S. 1961, S.Rept. 107-228).1 No further action occurred on either bill, in large part due to controversies over provisions in both bills to apply requirements of the Davis-Bacon Act to SRF-funded water infrastructure projects2 and also over grant allocation formulas in the two measures. In the 108th Congress, the House Transportation and Infrastructure Subcommittee on Water Resources and Environment approved H.R. 1560, legislation similar to H.R. 3930 from the 107th Congress, in July 2003. H.R. 1560 would authorize $20 billion for the clean water SRF program for FY2004-FY2008. It contains several provisions intended to benefit economically disadvantaged and small communities, such as allowing extended loan repayments (30 years) and additional subsidies, including forgiveness of the loan principal and negative interest loans, for communities that meet a state's affordability criteria. It includes provisions to require communities to plan for capital replacement needs and to develop and implement an asset management plan for the repair and maintenance of infrastructure that is being financed. The full committee has not acted on the subcommittee- approved bill. On June 23, 2004, the Senate Environment and Public Works Committee approved S. 2550. It authorizes $41.25 billion over five years for wastewater and drinking water infrastructure programs, including $20 billion for the clean water SRF program and $15 billion for the drinking water SRF program. The bill includes a new formula for state-by-state allocation of clean water SRF grants, expansion of the types of projects and activities eligible for SRF funding, and renewal of several Clean Water Act grant programs (for sewer overflow control projects, alternative water source pilot projects, and the National Estuary Program). It includes several provisions to conform administrative elements of the two laws' SRF programs (such as amounts reserved for state administrative costs). The Senate bill directs states to reserve a portion of their annual clean water and drinking water SRF capitalization grants for making grants to eligible communities, and further requires EPA to establish a small drinking water system grant program to help small water systems 1 For information, see CRS Report RL31344, Water Infrastructure Financing Legislation: Comparison of S. 1961 and H.R. 3930. 2 The Davis-Bacon Act requires, among other things, that not less than the locally prevailing wage be paid to workers employed, under contract, on federal construction work "to which the United States or the District of Columbia is a party." Critics say that it unnecessarily increases public construction costs and hampers competition. Supporters say that the law helps stabilize the local construction industry by preventing competition that could undercut local wages and working conditions. Congress has added Davis-Bacon prevailing wage provisions to more than 50 separate program statutes, including the Clean Water Act. For background, see CRS Report RL31491, Davis-Bacon Act Coverage and the State Revolving Fund Program Under the Clean Water Act. CRS-3 comply with drinking water regulations.3 Among other provisions, the bill authorizes funds to address lead contamination in schools and in the District of Columbia, and directs the U.S. Geological Survey to assess perchlorate contamination nationwide. S. 2550 also amends the Water Resources Planning Act to require the Water Resources Council to conduct a special water resources study. The House and Senate bills differ in a number of respects. In some cases, they take different approaches to an issue, such as how to revise the formula for state-by- state allotment of CWA SRF capitalization grants. They differ in other ways as well. ! S. 2550, but not H.R. 1560, includes provisions modeled on the current SDWA that would allow private utilities to receive CWA SRF assistance. ! Both bills would permit states to make longer-term SRF loans. H.R. 1560 generally would permit loans to be made for up to 30 years, while S. 2550 (adopting the current SDWA approach) extends clean water SRF loans made to disadvantaged communities from 20 years to up to 30 years. ! The House bill addresses several issues not included in the Senate measure. It would, for example, authorize states to use the clean water SRF to provide technical assistance to small treatment works; require aid recipients to conduct additional project evaluations, including of the cost and effectiveness of innovative and alternative processes and techniques; and reauthorize the existing Sewer Overflow Grant program in Section 121 of the Clean Water Act. ! The Senate bill also has several provisions not contained in H.R. 1560, including a cost of service study by the National Academy of Sciences, a nationwide demonstration program for innovations in water quality management or water supply, and a study of lead in drinking water by the National Academy of Sciences. ! Unlike the House bill, S. 2550 includes language that would apply prevailing wage requirements of the Davis-Bacon Act to projects that receive funding in whole or in part from a CWA or SDWA SRF. Future prospects for H.R. 1560 and S. 2550 are uncertain for several reasons. First, the Administration opposes the higher SRF funding levels contained in both bills. Second, strong disagreement exists in both houses of Congress over including provisions to apply requirements of the Davis-Bacon Act to SRF-funded projects, as well as over the state-by-state allotment formula in S. 2550 for Clean Water Act capitalization grants. Similar disagreements were largely responsible for the lack of final action on water infrastructure legislation in the 107th Congress. Third, only a limited number of legislative days remain in the 108th Congress. Fourth, the House 3 During markup of S. 2550, the Senate Environment and Public Works Committee approved two similar amendments to establish a small drinking water system grant program. Although the programs contain many similarities, they would authorize grant funding at significantly different levels. See discussion of "Small Public Water System Grant Program" in this report. CRS-4 Energy and Commerce Committee, which has jurisdiction over the Safe Drinking Water Act, has not yet considered counterpart legislation to the SDWA provisions in S. 2550. Several other legislative proposals dealing with water infrastructure financing programs administered by EPA, not described in this report, also have been introduced in the 108th Congress. 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; ! H.R. 768/S. 567, to authorize appropriations for the sewer overflow grant program in CWA Section 221 (the House Transportation and Infrastructure Committee approved an amended version of H.R. 768 on July 21, 2004); ! H.R. 2804, to authorize a supplemental appropriation of $85 million for the SDWA SRF and to require that state source water assessment programs address specified pesticides; ! H.R. 3328/S. 1432, to authorize $1.9 billion for each of FY2004- FY2009 for grants to assist small communities and certain other communities in complying with drinking water regulations; ! H.R. 3792, to authorize $25 billion in appropriations for CWA SRFs and expand the types of eligible projects; ! H.R. 4268/S. 2377, to authorize $200 million for each of FY2005- FY2009 to replace lead service lines in public water systems, and to strengthen the regulation of lead in drinking water; ! H.R. 568/S. 827, to provide CWA assistance through grants to states in the Chesapeake Bay watershed for installing nutrient removal technologies at wastewater treatment plants; and ! S. 1413, to authorize appropriations for the drinking water SRF for FY2004 at $2 billion, and to authorize feasibility studies for specific water quality and supply projects. CRS-5 Table 1. Comparison of Water Infrastructure Legislation Current Law S. 2550 H.R. 1560 Definitions Clean Water Act (CWA) general No new general definitions. Defines "small treatment works" as definitions are provided in §502. those serving a population of 20,000 or fewer. (Section 307 of H.R. 1560) CWA §212 defines "treatment works" Adds definition of "treatment works" to and other terms for Title II construction CWA §502 (references the §212 grants program. definition). (Section 401) Amends §212 definition of "treatment works" to include land acquisition and interest in lands necessary for construction. (Section 202) Safe Drinking Water Act (SDWA) No new general definitions. No provision. definitions generally are provided in §1401. Recipients Eligible for Assistance CWA §603(c) provides that eligible Amends §603(c) to add private utilities No comparable provision. assistance recipients include any that principally treat municipal municipality, intermunicipal, interstate, wastewater or domestic sewage as or state agency. eligible recipients for CWA State Revolving Fund (SRF) assistance. (Section 102 of S. 2550) SDWA §1452(a) and (f) provide that No additional provisions. No provision. eligible assistance recipients include privately or publicly owned community water systems and nonprofit noncommunity water systems, other than systems owned by federal agencies. CRS-6 Current Law S. 2550 H.R. 1560 Projects Eligible for Assistance, Types of Assistance CWA §603(c) describes types of Modifies §603(c) to clarify that costs for No comparable language for costs of projects eligible for financial assistance planning, design, associated planning, design, and preconstruction (construction of publicly owned preconstruction, and necessary siting activities. treatment works, implementation of a activities are eligible for assistance. §319 nonpoint pollution management program, and development and Adds water conservation projects or Adds lake protection projects (CWA implementation of a §320 estuary activities for eligibility. §314), repair and replacement of conservation and management plan). decentralized wastewater treatment Also adds water reuse, reclamation or systems, municipal stormwater runoff recycling projects; projects to increase measures, water conservation, treatment facility security; and measures to control works security measures, watershed municipal stormwater to list of types of development and implementation eligible projects, but private utilities may projects (CWA §121) to list of eligible not use SRF funds for such projects. projects. (Section 303(a)) (Section 102) CWA §603(d) defines types of Amends §603(d) to add projects for No comparable provision. assistance that SRF may be used for, implementation of nonpoint source e.g., making loans, providing loan pollution management or estuarine guarantees, buying or refinancing debt conservation management and allows obligations of municipalities. loans for such projects to have 30-year amortization period. (Section 103) SDWA §1452(a)(2) states that funds Expands §1452(a)(2) to allow water No provision. may be used only for expenditures that systems to use funds for planning, the Administrator has determined will design, and associated preconstruction facilitate compliance with SDWA expenditures and recovery of facility regulations or significantly further siting costs, and for projects to replace or SDWA's health protection objectives. rehabilitate aging water infrastructure (including reservoirs). Funds may also §1452(k) authorizes states to use up to be used for capital projects to upgrade 15% of the capitalization grant (not the security of public water systems. more than 10% for any 1 activity) to (Section 203) provide loans to public water systems for acquiring conservation easements Amends §1452(k)(2) to broaden other or land for source water protection; to eligible uses of SRF funds to include CRS-7 Current Law S. 2550 H.R. 1560 provide loans to community water implementation of source water systems for voluntary source water protection plans. protection measures; to provide (Section 207) capacity development assistance; and to establish and implement wellhead protection programs. SDWA §1452(f) prescribes types of No additional provision. No provision. assistance that SRF may be used for, e.g., making loans, providing loan guarantees, buying or refinancing debt obligations of municipalities. SRF Grants Set-Aside Program CWA -- No existing provision. CWA Adds a new §603(k) providing that in No comparable provision. Title II previously authorized a federal years when SRF appropriations do not construction grants program for exceed $3 billion, states shall set aside wastewater treatment works, with a 10% of a federal capitalization grant for 55% federal share. Authorizations grants to eligible users for not more than expired in FY1990, and the Title II 55% of the total cost of a project for grants program was replaced by the which a grant is made. State may waive Title VI SRF program. this requirement if the average time for processing loan applications is less than 90 days. In years when SRF appropriations exceed $3 billion, states shall set aside not more than 10% nor less than 5% of its SRF. (Section 107) SDWA -- No existing provision. Adds new §1452(s) providing that in §1452(d) authorizes states to use up to years when SRF appropriations do not 305 of their capitalization grant to exceed $2.5 billion, states shall set aside subsidize loans (including forgiveness 10% of a capitalization grant for grants of principal) for communities that are to eligible projects for not more than disadvantaged or may become 55% of the total cost of a project for disadvantaged as a result of a proposed which a grant is made. State may waive project. this requirement if the average time for processing loan applications during the CRS-8 Current Law S. 2550 H.R. 1560 preceding 12 months is less than 90 days. If an annual appropriation exceeds $2.5 billion, states shall set aside not more than 5% nor less than 2.5% of its SRF. (Section 206) Fund Management CWA §603(c) requires that CWA SRFs No additional provisions. Requires that CWA SRFs be maintained be maintained and credited with loan and credited with loan repayments and repayments and be maintained in be maintained in perpetuity. Fees shall perpetuity. be used solely for administering the fund. (Section 302(b)) CWA §602(b)(9) requires that as part Extends requirement for generally of capitalization grant agreement, state accepted government accounting will use generally accepted government standards to the reporting of accounting standards. infrastructure assets. (Section 302(a)) SDWA §1452(c) requires that SDWA No additional provisions. No provision. SRFs be maintained and credited with loan repayments and interest, and be maintained in perpetuity. Amounts not needed for current obligation or expenditure must be invested in interest bearing obligations. Extension of Loans CWA §603(d) provides that a water Adds new §603(e) to permit state to Modifies §603(d) to permit state to pollution control revolving fund may provide an extended term for a CWA provide an extended term for a CWA make loans at terms not to exceed 20 SRF loan to a disadvantaged community SRF loan (up to 30 years, so long as that years. (up to 30 years, so long as that period period does not exceed the project's does not exceed the project's design design life). (Section 303(b)) life). (Section 104) SDWA §1452(f) provides that a No additional provisions. No provision. SDWA SRF may make loans at terms not to exceed 20 years. Exception: a CRS-9 Current Law S. 2550 H.R. 1560 state may extend the term of a loan to as much as 30 years for disadvantaged communities, provided the term does not exceed the project's design life. Additional Subsidization CWA §603(d) permits states to make Adds new §603(e) authorizing states to Adds new §603(i) authorizing states to loans at or below market interest rates, provide additional subsidization, provide additional subsidization from a including interest-free loans. CWA including forgiveness of principal, for CWA SRF, including forgiveness of has no existing provisions for projects in disadvantaged communities principal and negative interest loans, to additional subsidization or forgiveness or communities expected to become projects to benefit a municipality that of loans. disadvantaged. meets the state's affordability criteria. Also may provide subsidization to implement alternative processes or techniques that may result in cost savings or increased environmental benefits. Additional subsidization under this Total amount of subsidization provided provision may not exceed 30% of the by a state may not exceed 30% of its state's capitalization grant in that year. capitalization grant. (Section 104(a)) State also may provide additional subsidization to municipalities that do not meet affordability criteria if the municipality seeks to benefit individual ratepayers in the residential user rate class and ensures that this subsidization will be directed through a user charge rate system to such ratepayers. New §603(e) defines "disadvantaged Directs states to establish affordability community" to mean the service area, or criteria by Sept. 30, 2004. EPA may portion of a service area, of a treatment provide information to assist states in works that meets affordability criteria establishing criteria. (Section 303(f)) established by the state. (Section 104(a)) CRS-10 Current Law S. 2550 H.R. 1560 No 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 for projects that meet affordability criteria. (Section 303(f)) SDWA §1452(d) authorizes states to No additional provisions. No provision. provide additional loan subsidization, including forgiveness of principal, for projects in disadvantaged communities. The total amount of loan subsidies may not exceed 30% of the state's capitalization grant for that year. §1452(d)(3) defines `disadvantaged Amends definition of `disadvantaged No provision. community' as the service area of a community' in §1452(d)(3) to include system that meets affordability criteria the service area, or portion of a service set by the state. EPA may publish area, of a water system that meets information to assist states in affordability criteria. establishing these criteria. (Section 204) Financial Assistance to Small Systems from the SRF CWA -- No existing provision. No provision. Directs states, beginning in FY2005, to use at least 15% of CWA capitalization grants to assist municipalities with population less than 20,000, if there are sufficient applications for assistance. (Section 122(c)) SDWA §1452(a)(2) requires that 15% No additional provision. (For related No provision. of the amount credited to a state provisions see SRF grants set-aside SDWA SRF in any fiscal year must be program and small public water system available for providing loan assistance grant program) to systems serving fewer than 10,000 CRS-11 Current Law S. 2550 H.R. 1560 persons, to the extent such funds can be obligated for eligible projects. Technical Assistance to Small Systems from the SRF CWA -- No existing provision. No provision. Authorizes states to provide CWA SRF assistance to small treatment works for technical and planning assistance and assistance with financial management, user fee analysis, capital improvement planning, facility operation and maintenance, repair schedules to improve treatment plant management and operations. Amounts shall not exceed 2% of capitalization grant awards to the fund. (Section 303(e)) SDWA §1452(g)(2) authorizes states to No additional provision. No provision. use 2% of their SRF grant to provide technical assistance to water systems serving 10,000 or fewer persons. SDWA §1452(q) authorizes EPA to reserve up to 2% of the SRF appropriation to provide technical assistance to small systems (not to exceed the amount authorized under §1442(e) (regarding small systems technical assistance). Technical Assistance Grants for Rural and Small Treatment Works CWA -- No existing provision, but Adds new Section 222 to authorize EPA Similar provision. Modifies CWA §104(b) generally authorizes EPA to to make grants to qualified nonprofit §104(b) to authorize EPA to make support or conduct various types of providers for technical assistance to grants to nonprofit organizations research, investigations, and training. treatment works located in rural areas concerning assistance to rural and small and serving fewer than 10,000 users in municipalities, publicly owned planning, developing, and obtaining treatment works and decentralized CRS-12 Current Law S. 2550 H.R. 1560 financing for eligible projects. wastewater treatment systems Authorizes grants to nonprofits to concerning planning, design, financing, capitalize revolving loan funds for construction and operation of predevelopment costs of wastewater wastewater treatment works. projects or certain equipment Authorizes grants to nonprofits to replacement costs. Loans to small capitalize revolving loan funds for systems may not exceed $100,000 and predevelopment costs of wastewater the loan term may not exceed 10 years. projects or certain equipment Defines "qualified nonprofit technical replacement costs. Authorizes not to assistance provider." To the maximum exceed $75 million per year for extent possible, all states should get a FY2004-2008. Grants to nonprofits grant under this provision. Requires shall be awarded competitively to the grantees to consult with states, to submit extent practicable. (Section 101) annual reports. Authorizes $25 million per year for FY2005-2009. (Section 101) SDWA §1442(e) authorizes EPA to Amends §1442(e) to authorize EPA to No provision. provide technical assistance to small make grants to private, nonprofit entities systems through circuit-rider and to capitalize revolving funds to provide regional technical assistance programs. financing to systems serving 10,000 or Assistance may go to nonprofit fewer persons for predevelopment costs, organizations. Authorizes $15 million short-term costs incurred for for each of FY1997-FY2003. replacement equipment, and small capital projects. Loans to small systems may not exceed $100,000 and the loan term may not exceed 10 years. Grant recipients must submit annual activity reports to EPA Authorizes $25 million for each of FY2005-FY2009 for this program. (Section 208) State Administrative Costs Set-Aside CWA §603(d) allows a state to reserve Increases allowed CWA reservation for Increases allowed reservation for up to 4% of a federal capitalization administrative costs to 6%. (Section 108) administrative costs to $400,000, or 1/5 grant to cover the reasonable costs of percent per year of the current valuation administering the SRF. of the state's SRF, whichever is greater. (Section 303(d)) CRS-13 Current Law S. 2550 H.R. 1560 SDWA §1452(g)(2) allows a state to Increases allowed SDWA reservation for No provision. use up to 4% of a federal capitalization administrative costs to 6%. (Section grant to cover the reasonable costs of 205(a)) administering programs under §1452 and to provide technical assistance to public water systems. §1452(g)(2) also authorizes states to Repeals requirement that states match use up to another 10% of a federal funds reserved for these purposes. capitalization grant to administer public (Section 205(a)) water system supervision programs, to administer or provide technical assistance through source water protection programs, to develop and implement capacity development strategies, and for operator certification programs. For these purposes, states must provide a dollar-for-dollar match of funds. Reservation of Funds for Planning CWA §604(b) directs states to reserve Increases reservation of funds for Increases reservation of funds for 1% of sums allotted under Title VI, or planning to 2% of allotted sums or planning to 2% of allotted sums, or $100,000, whichever is greater, to carry $100,000. (Section 109(3)) $100,000, whichever is greater. (Section out specified planning activities. 304(b)) SDWA -- No provision. No provision. No provision. Cross-Cutting Requirements; Labor Standards CWA §602(b)(6) attaches 16 specific Davis-Bacon prevailing wage Treatment works constructed in whole statutory requirements to projects requirements (CWA §513) shall apply to or in part with funds directly made funded with a capitalization grant (but projects that receive funding, in whole or available by Title VI capitalization not to SRF activity made from loan in part, from a state water pollution grants and CWA §205(m) shall comply repayments or other state monies). All control revolving fund. (Section 102) with the following CWA provisions: but two are CWA-specific carryover implementing a user charge system and ("equivalency") requirements from the having adequate legal and financial previous CWA Title II construction capability to construct, operate and CRS-14 Current Law S. 2550 H.R. 1560 grant program. Other cross-cutting maintain the treatment works (CWA federal requirements are: applicability §204(b)(1)); restrictions on funding of the National Environmental Policy sewer collector systems (CWA §211); Act and Davis-Bacon prevailing wage cost-effectiveness and value provisions for treatment works engineering review (CWA §218); and construction. The requirements applied applicability of NEPA (CWA §511(c)) to funds provided through FY1994. (Section 302(b)) (Does not extend Davis-Bacon requirements.) SDWA SRF provisions (§1452) do not Revises SDWA §1450(e) to expressly No provision. specify federal cross-cutting apply Davis-Bacon to all construction requirements, but, as with CWA projects financed in whole or in part, and assistance, a number of federal laws, by any form of assistance provided executive orders, and government-wide under SDWA (including assistance policies apply by their own terms to provided from state drinking water projects and activities receiving federal SRFs). (Section 202) financial assistance, regardless of whether a statute authorizing assistance specifies that they apply. Several apply only to the state as a grant recipient. All projects for which the state provides SDWA SRF assistance in amounts up to the amount of the capitalization grant must comply with cross-cutting laws and requirements; amounts greater than this are not subject to cross-cutting requirements. §1450(e) directs EPA to take such action as may be needed to assure compliance with the Davis-Bacon Act. Requirements for Receipt of Funds CWA §602(b) specifies a number of No additional provision. Amends §602(b) to add a requirement conditions for receipt of SRF that, beginning in FY2005, states shall assistance. (See discussion above on require as a condition of receiving cross-cutting requirements.) CWA SRF assistance that recipients evaluate the cost and effectiveness of CRS-15 Current Law S. 2550 H.R. 1560 innovative and alternative processes and techniques and select projects accordingly; and consider the cost and effectiveness of alternative management and financing approaches (including rate structures, consolidation, public- private partnerships). Requires use of a qualification-based selection method in the awarding of contracts and subcontracts for funds directly made available from Title VI capitalization grants. (Section 302(b)) Adds new §603(d)(1)(E) to require that recipient of loan assistance develop and implement a fiscal sustainability plan that includes an inventory and evaluation of critical assets of the portion of the treatment works and plan for maintenance and repair of the portion of the facility funded by the SRF. (Section 303(c)) SDWA §1452, like the CWA No additional provision. No provision. provisions, imposes various requirements on recipients of SRF assistance. §1452(f) further requires that a loan recipient establish a dedicated source of revenue (or for privately owned system, demonstrate adequate security) to repay loan. Priority System Requirement CWA §216 authorizes states to Adds new §603(h) to update the priority Revises §603(g) to update the CWA determine the priority of specific list requirement. Requires each state to priority list requirement. Requires projects to be funded. Identifies establish a system for providing states to establish or update a list of categories of eligible treatment works financial assistance from the SRF. In it, projects and activities for which SRF CRS-16 Current Law S. 2550 H.R. 1560 projects that states may include on state shall give more weight to assistance is sought, using a listing priority list. applications that include inventory of methodology each state shall establish. assets, financing plan, review of options The list may include categories of for restructuring the treatment works, nonpoint source activities. States shall review of options other than traditional seek to achieve the greatest degree of wastewater approach for the facility, and water quality improvement and consider other appropriate information. Defines whether improvements would be "restructuring" and "traditional realized without SRF assistance. approach." State shall biennially publish (Section 305(a)) a summary of projects eligible for assistance (i.e., treatment works and If the state does not fund projects and other projects), including a project's activities in the order on the priority list, priority and anticipated funding it must provide an explanation of the schedule. (Section 105) change. (Section 305(b)) SDWA §1452(b)(3) requires states to Expands §1452(b)(3) to direct states to No provision. develop Intended Use Plans for SRF give more weight to applications by funds, giving priority to using funds for community water systems that include projects that: address the most serious an inventory of assets, a schedule for risks; are needed to ensure compliance, asset replacement, a financing plan, a and assist systems most in need on a review of options for restructuring the per household basis. Requires states to water system, a review of options other publish periodically their list of than traditional approach, and other projects eligible for assistance. information the state may require. Defines "restructuring" and "traditional approach." Requires states to publish at least biennially a list of projects eligible for assistance. (Section 205(b)) Allotment CWA §205(c)(3) provides a state-by- Revises CWA allotment for SRF Current CWA allotment formula shall state formula for annual allotment of capitalization grants for FY2005-2009 apply to SRF capitalization grant available funds. This formula, in effect Moves towards a target allotment based distribution in FY2003 and FY2004. since 1987, combines population and on needs (meaning, allotment in Beginning in FY2005, appropriated need factors. No state currently accordance with each state's amounts up to $1.35 billion shall be receives less than 0.4971% of available proportional share of total needs) and no allotted under the current allotment funds (except for territories, which state receiving less than 1.0% of total formula. Amounts that exceed $1.35 CRS-17 Current Law S. 2550 H.R. 1560 generally receive smaller shares). funds. Includes complex factors to billion shall be allotted according to a moderate potential for substantial loss or needs-based formula to be developed by gain of funds under the target, compared EPA; no minimum state share specified. with current allotment formula. The (Section 304(a)) result, in general, is that small states would receive somewhat larger EPA is directed to publish an allotment percentages under the revised formula formula based on water quality needs by than under the current formula, while, in Sept. 30, 2004. (Section 304(c)) general, most (but not all) of the states with large needs would have the same percentage allotment under the revised formula as under current law. Also includes language that would adjust the states' percentage allotments if the appropriated amounts were to increase above current $1.35 billion annual appropriations. At higher appropriated levels (above $3.15 billion), adjustments would enable the small states to reach the 1% target minimum, while dollar amounts received by the larger states would still be larger than amounts that they receive today under the current allotment. Allocates a total of 0.25% of available funds among Guam, Virgin Islands, American Samoa, Commonwealth of Northern Mariana Islands, Micronesia, Marshall Islands, Palau to be allotted by EPA. (Section 109) SDWA §1452(a)(D) requires that funds No additional provisions. No provision. are allotted to the states based on a formula that reflects the proportional share of each state's needs identified in the most recent needs survey CRS-18 Current Law S. 2550 H.R. 1560 (conducted every four years). The minimum share for each state and District of Columbia is 1% of available funds; territories receive up to 0.33%. SRF Authorization CWA §607 authorizes $8.4 billion in Authorizes CWA SRF capitalization Authorizes CWA SRF capitalization capitalization grants for state revolving grants as follows: $3.2 billion in each of grants as follows: $2 billion in FY2004, funds for FY1989-94. (Congress has FY2005 and FY2006, $3.6 billion in $3 billion in FY2005, $4 billion in continued to appropriate SRF FY2007, $4 billion in FY2008; and $6 FY2006, $5 billion in FY2007, and $6 capitalization grants since FY1994. billion in FY2009, totaling $20 billion. billion in FY2008, totaling $20 billion. Appropriations for the last five years Reserves $1 million per year for EPA to (Section 308) have been $1.35 billion per year.) pay the costs of conducting needs surveys. (Section 110) SDWA §1452(m) authorizes SRF Authorizes SDWA SRF capitalization No provision. capitalization grants: $599 million for grants as follows: $1.5 billion in FY1994, and $1 billion for each of FY2005; $2 billion in each of FY2006 FY1995-FY2003, totaling $9.59 and FY2007; $3.5 billion in FY2008; billion. and $6 billion in FY2009, totaling $15 billion. Reserves $1 million per year to pay the costs of conducting needs surveys. (Section 209) Cross-Collateralization between CWA and SDWA SRFs CWA -- No existing provision, but Adds new §603(j) to permit a state to No comparable provision. FY1998 and FY1999 EPA transfer up to 33% of a CWA appropriation laws allow states to capitalization grant to its SDWA SRF combine assets of CWA and SDWA and vice versa. (Section 106) SRFs as security for bond issues to enhance the lending capacity of one or both SRFs. §302 of the SDWA Amendments of Incorporates this authority into SDWA No provision. 1996 (P.L. 104-182) authorized a state, under new §1452(g)(5). prior to FY2002, to transfer as much as (Section 205(a)) 33% of the SDWA SRF capitalization CRS-19 Current Law S. 2550 H.R. 1560 grant to the CWA SRF or an equivalent amount from the CWA SRF to the SDWA SRF. SRF Set-Aside for Indian Programs CWA §518 authorizes the EPA Increases CWA funds reserved for Increases CWA funds reserved for Administrator to reserve 0.5% of funds Indian Tribes to 1.5% of funds available Indian Tribes to not less than 0.5% or appropriated under §207 for developing under Title VI. (Section 108) more than 1.5% of funds available waste treatment management plans and under §207. Funds are to be used for construction of sewage treatment works projects to assist Indian tribes, former to serve Indian tribes. Appropriations Indian reservations in Oklahoma, and laws since FY2001 have reserved 1.5% Alaska Native villages. (Section 402) of CWA SRF appropriated funds for Indian tribes. SDWA §1452(i) authorizes EPA to No additional provisions. No provision. reserve 1.5% of the SRF appropriation for grants to Indian Tribes and Alaska Native villages. SRF Review Process -- Assistance for Accessing the SRF CWA -- No existing provision. Directs the EPA Administrator to Adds new §607 that directs EPA to SDWA -- No existing provision. identify ways to streamline and improve assist states in establishing simplified the application and review process for procedures for treatment works to CWA SRF and SDWA SRF assistance obtain CWA SRF assistance and shall and to submit a report to Congress. publish a manual to assist systems in (Section 304) obtaining assistance. (Section 307) Reports: Needs Surveys CWA §516(b)(1) directs EPA to Modifies needs survey to every four No comparable provision. conduct a survey of needed publicly years. (Section 111) owned treatment works every two years. SDWA §1452(h) directs EPA to No additional provisions. No provision. conduct a survey of water system CRS-20 Current Law S. 2550 H.R. 1560 capital improvement needs survey and report to Congress every four years. On the same schedule, §1452(i) directs EPA to conduct needs surveys of drinking water facilities to serve Indian Tribes. Removal of Lead from Drinking Water in Schools SDWA §1464(d) directs states to Inserts new §1464(d) requiring the No comparable provision, but see H.R. establish programs to assist local Administrator to establish a program to 4268. educational agencies to test for and provide grants to states to assist in remedy lead contamination in drinking paying, or to provide reimbursement for, water at schools, and requires schools the costs incurred by local educational to make test results available and to agencies in testing for, remediating , and notify parents, teachers and others of informing students, parents, teachers, the availability of test results. and employees about lead contamination in drinking water at schools within their (In 1996, the U.S. Court of Appeals for jurisdiction. the Fifth Circuit ruled that the requirements in §1464(d) that states establish programs violate the 10th Amendment and are unconstitutional. ACORN v. Edwards, 81 F .3d 1387 (5th Cir. 1996).) §1465(a) directs EPA to make grants to states to carry out §1464 and §1465(b) requires states to use grants to test for, and remediate, lead contamination in school drinking water. §1465(a) authorizes EPA to use up to New §1464(d) authorizes EPA to use up 5% to pay administrative expenses. to 5% to pay administrative expenses. §1465(c) authorized $30 million for New §1464(d) authorizes $40 million for each of FY1989-FY1991 for grants to each of FY2005-FY2008; states. (Section 210(a)) CRS-21 Current Law S. 2550 H.R. 1560 Lead Contamination in Drinking Water in the District of Columbia SDWA -- §1465(a) directs the New §1465(a) authorizes the No comparable provision. Administrator to make grants to states Administrator to provide a $20 million to carry out §1464 (see above). grant to the District of Columbia to address lead contamination in the local water supply. Funds may be used to assess infrastructure, test water supplies distribute filters, evaluate chemical additive, replace pipes, and evaluate and improve public communication. Authorizes to be appropriated to carry out this section $20 million. §1465(b) requires that grants be used New §1465(b) directs the Administrator by states to test for, and remediate, lead to contract with the National Academy contamination in school drinking water. of Sciences (NAS) to conduct a study Authorized EPA to use up to 5% to pay that (1) evaluates compliance by the administrative expenses. District of Columbia Water and Sewer Authority with lead in drinking waster regulations, and the potential causes of lead in the local water supply; and (2) assess, from a cross-section of cities with lead service lines, the extent to which those cities exceeded the lead action level, and the potential causes of the exceedences. Not later than one year after enactment, the NAS must submit a report to the House Energy and Commerce Committee and the Senate Environment and Public Works Committee. Authorizes $2 million for the study. (Section 210(b)) CRS-22 Current Law S. 2550 H.R. 1560 Small Public Water System Grant Program 1. Establishment of Small System Grant (Sections 211 and 212 of S. 2550 each No comparable provision. Program add new SDWA Part G and contain nearly identical provisions) CWA -- Not applicable. Amends SDWA to establish within EPA SDWA -- No provision. a small public water system assistance program for eligible entities within states and areas governed by Indian Tribes. (Section 211 and Section 212) 2. Definitions New SDWA §1471 defines for Part G: No comparable provision. "eligible activity" to mean an activity needed to ensure compliance with drinking water regulations, including source water protection and excluding any activity to increase the population served by a system (unless needed for compliance or to serve a population not served by a safe public water system); "eligible entity" means a small public water system that, based on affordability criteria, serves a disadvantaged community or a community that would otherwise become disadvantaged as a result of carrying out an eligible activity, and a system that would incur more than $3 million in costs in complying with regulations and is, or would become, a disadvantaged community; "small public water system" includes community and non-community water systems that serve populations of 15,000 or fewer persons. (Section 211 and Section 212) 3. Program establishment §1472(a) directs EPA to establish a No comparable provision. small system grant program by July 1, 2006. (Section 211 and Section 212) CRS-23 Current Law S. 2550 H.R. 1560 4. Program priorities §1472(b) directs EPA to provide grants No comparable provision. to eligible 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, §1472(e)(2) requires EPA and the Indian Health Service to develop an annual list of eligible activities based on the above priorities. (Section 211 and Section 212) 5. Technical assistance §1472(d) requires EPA to use at least No comparable provision. 1.5% of the available 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; and planning, implementing and maintaining activities that receive funding. Entities may use no more than 5% of their grant for such technical assistance; §1472(e)(4) imposes a similar 5% limit for entities governed by Indian Tribes. (Section 211 and Section 212) 6. Grants for Indian Tribes §1472(e) Requires EPA to use at least No comparable provision. 3% of funds available each year to provide grants to eligible entities located in areas governed by Indian Tribes. (Section 211 and Section 212) CRS-24 Current Law S. 2550 H.R. 1560 7. Limitations on receipt of funds (Sections 211 and 212 of S. 2550 No comparable provision. contain different provisions.) As provided in Section 211: §1472(f) provides that eligible entities may receive grants only: 1) if EPA determines that the grant will aid compliance; 2) to restructure or consolidate to achieve compliance; or if restructuring is not feasible, EPA determines that the entity has made a good faith effort to comply and is adhering to an enforceable compliance schedule; and 3) if EPA determines that an entity lacks the technical, managerial, operations, maintenance, or financial capacity to ensure compliance, and the entity agrees to make changes in operations, and EPA determines that the measures are needed to ensure compliance capacity over the long term. As provided in Section 212: §1472(f) generally provides that grant may not be provided to entities that lack the technical, managerial, operations, maintenance, or financial capacity to ensure compliance, or are in significant noncompliance with a drinking water regulation. The exception to this prohibition allows such entities to receive a grant if the conditions above are met. Before providing assistance to an entity that is in significant noncompliance, EPA must assess whether the entity has the capacity to comply with SDWA regulations. CRS-25 Current Law S. 2550 H.R. 1560 8. Cost share §1472(g) provides that the share of the No comparable provision. total cost of an activity funded by a grant generally may not exceed 80%; EPA may waive this requirement, partially or completely, as needed. (Section 211 and Section 212) 9. Reports §1473 requires EPA to report annually, No comparable provision. for FY2006-2010, 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 211 and Section 212) 10. Authorization of Appropriations (Sections 211 and 212 of S. 2550 No comparable provision. contain different provisions.) §1474 authorizes for this program $200 million for each of FY2005-FY2009. (Section 211) §1474 authorizes for this program $1 billion for each of FY2008-2011. (Section 212) Pilot Program for Alternative Water Source Projects CWA §220 authorizes EPA to establish Extends authorization at $25 million per Extends authorization without other a pilot program of grants for alternative year for FY2005-2007. (Section 112) modification through FY2008. (Section water source projects to meet critical 204) water supply needs. Authorizes appropriations of $75 million annually for FY2002-2004. CRS-26 Current Law S. 2550 H.R. 1560 Sewer Overflow Grants CWA §221 authorizes $750 million Revises §221, adding stormwater runoff Authorizes $250 million per year for annually in FY2002-2003 for grants for projects. Authorizes to be appropriated sewer overflow grants for FY2005-2008 municipal combined sewer overflow $250 million per year for FY2005-2009. and such sums as necessary for FY2004. and sanitary sewer overflow projects. (Section 113) Specifies allocation criteria for FY2004 Financially distressed communities are (same as for FY2002 in current to have priority. Grants are only provision) and FY2005 and beyond available in years in which Title VI (based on each state's proportional need (SRF) funds are at least $1.35 billion. for overflow control projects). Funded projects shall generally conform to requirements applicable to SRF-funded projects. (Section 205) (Also see H.R. 784, similar legislation approved by House Transportation and Infrastructure Committee July 21, 2004.) Watershed Pilot Projects CWA §121, Wet Weather Watershed Makes a technical correction to Reauthorizes existing grants program at Pilot Projects, authorized $45 million redesignate this provision as CWA §122. $20 million per year for FY2004-2008. for FY2002-2004 for technical (Section 114) Grants may be used for watershed assistance and grants to municipalities partnerships to address nonpoint sources for pilot projects to manage wet of pollution to reduce adverse impacts weather discharges and to demonstrate on water quality. Changes reporting stormwater management technologies. requirement from five years after (When enacted in P.L. 106-554, this enactment to seven years. Makes a provision was one of two that were technical correction to redesignate this designated as §121.) provision as CWA §122. (Section 103) National Estuary Program CWA §320 authorizes the National Reauthorizes grants at $35 million per No comparable provision, but see H.R. Estuary Program. Governors may year (no change) for FY2006-FY2010. 4731, similar legislation approved by nominate estuaries and request a (Section 307) House Transportation and Infrastructure management conference to develop a Committee July 21, 2004. comprehensive conservation and management plan (CCMP) for the CRS-27 Current Law S. 2550 H.R. 1560 estuary. Authorizes grants for development and implementation of CCMPs. Sewage Control Technology Grant Program CWA -- No existing provision. Adds new §701 to the CWA. Directs No comparable provision. EPA to establish a competitive program of grants to states and 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 and are located in the Chesapeake Bay watershed. Federal share of project costs shall not exceed 55%. Authorizes $100 million annually for FY2005-2009. (Section 308) (Also see S. 827/H.R. 568, similar legislation.) Demonstration Program for Water Quality Enhancement and Management CWA -- No existing provision. Directs EPA to establish a nationwide No comparable provision. SDWA -- No existing provision. demonstration program of 10 projects per year to promote innovations in technology and alternative approaches to water quality management or water 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 excessive nutrient growth, lack of alternative water supply, nonpoint source pollution, sewer overflows, problems with naturally occurring constituents, or new approaches to water treatment, distribution and collection systems, and CRS-28 Current Law S. 2550 H.R. 1560 others. Municipalities applying for grants shall submit a plan that meet specified criteria. Non-federal share of project costs shall be at least 20%. Authorizes $20 million per year for FY2005-2009. 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 FY2005-2009. (Section 302) Southeast Colorado Safe Drinking Water Supply SDWA -- No existing provision. Directs the EPA Administrator to make a No provision. grant to the Southeast Colorado Water Activity Enterprise to construct a water transmission line from the Pueblo Reservoir to the city of Lamar, CO. Authorizes for this purpose $85 million for the period of FY2005-FY2010. (Section 305) Environmental Finance Centers CWA -- No existing provision. No provision. No provision. SDWA §1420(g) requires EPA to Authorizes $2 million for each of No provision. provide initial funding for university- FY2005-FY2009 to implement this based environmental finance centers to program. provide technical assistance to state (Section 201) and local officials in developing the financial and managerial capacity of public water systems. Directs EPA to establish a national public water system CRS-29 Current Law S. 2550 H.R. 1560 capacity development clearinghouse. Authorizes $1.5 million for each of FY1997-FY2003 for this program. Miscellaneous 1. State management assistance No additional provision. Authorizes $250 million per year for FY2003-2008 for CWA §106. (Section CWA §106 authorizes grants to states 102) to assist management of state water pollution control programs. SDWA §1443 authorizes $100 million No additional provision. No provision. for each of FY1997-FY2003 for grants to states to administer public water system supervision programs. 2. Annual report and federal oversight No additional provision. Requires that the annual report include identification of the eligible purpose for CWA §606(d) requires states to which SRF assistance was provided. provide an annual report on achieving (Section 306(a)) the goals and objectives of its Intended Use Plan. CWA §606(e) requires EPA to conduct Authorizes EPA to allow a state to annual oversight review of a state's certify its compliance with CWA Title Intended Use Plan. VI for purposes of this review. (Section 306(b)) SDWA §1452(g) requires states to No additional provision. No provision. submit a report every two years to EPA on its SRF activities and related audits; requires EPA to periodically audit all state loan funds. SDWA §1452(r) directs EPA to assess the effectiveness of SRFs through FY2001 and report to Congress. CRS-30 Current Law S. 2550 H.R. 1560 3. Sewage collection systems No additional provision. Amends §211. Updates limits on sewer collector systems to those in systems or CWA §211 limits Title II assistance for communities in existence as of Jan. 1, replacement or major rehabilitation of 2003. Projects are to address adverse existing sewage collection systems or environmental conditions existing on for new collector systems in an existing the date of enactment of this provision. community. (Section 201) 4. Cost-effectiveness No provision. Modifies §218 to delete specification of devices and systems selected for an CWA §218 expresses the policy of overall treatment system. (Section 203) Congress regarding financial assistance for waste treatment and management systems that are the most economical and cost-effective combination of treatment works to meet requirements of the act, including water conservation measures. 5. Regulatory authority not provided No provision. Nothing in this act may be construed as providing EPA with authority to issue CWA -- No existing provision. regulations. (Section 403) SDWA -- No existing provision. Cost of Service Study CWA -- No existing provision. Directs the National Academy of No comparable provision. SDWA -- No existing provision. Sciences to prepare a study of the means by which public water systems and treatment works meet costs associated with operation, maintenance, capital replacement, and regulatory requirements. The study shall address issues including affordability and identification and characterization of disadvantaged communities. The study shall be completed within two years. (Section 303) CRS-31 Current Law S. 2550 H.R. 1560 Assessment of Perchlorate Contamination CWA -- No existing provision. Requires the U.S. Geological Survey, no No comparable provision. SDWA -- No existing provision. later than one year after enactment, to conduct a nationwide assessment of sites contaminated with perchlorate and the geological conditions at those sites, and to report the results to Congress. (Section 306) Special Water Resources Study Water Resources Planning Act of 1965 Amends §101 of the Water Resources No comparable provision. established a Cabinet-level Water Planning Act to add the Secretary of Resources Council and also established Homeland Security to the Water River Basin Commissions. The Resources Council. Directs the Council Council was empowered to maintain a to carry out a Special Water Resources continuing assessment of the adequacy Study to project future water supply and of water supplies in each region of the demand, to develop recommendations U.S. In addition, the Council was for a comprehensive water strategy, to mandated to establish principles and evaluate federal water programs and standards for federal participants in the submit recommendations to eliminate preparation of river basin plans and in discrepancies and duplication among evaluating federal water projects. programs, and develop and make Authorization for the Council still available water planning models to exists (42 U.S.C. §1962a), but reduce water resource conflicts. Calls President Reagan disbanded the for interim reports and a final report not Council in 1983, and there have been later than three years after the first no appropriations since then. meeting of the Council following enactment. Authorizes $9 million for CWA -- No existing provision. FY2005 to carry out this study. (Section SDWA -- No existing provision. 309) ------------------------------------------------------------------------------ For other versions of this document, see http://wikileaks.org/wiki/CRS-RL32503