[Senate Report 110-475]
[From the U.S. Government Publishing Office]
Calendar No. 1036
110th Congress Report
SENATE
2d Session 110-475
======================================================================
AMENDING THE SAFE DRINKING WATER ACT TO PROVIDE GRANTS TO SMALL PUBLIC
DRINKING WATER SYSTEMS
_______
September 22 (legislative day, September 17), 2008.--Ordered to be
printed
_______
Mrs. Boxer, from the Committee on Environment and Public Works,
submitted the following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany S. 1933]
[Including cost estimate of the Congressional Budget Office]
The Committee on Environment and Public Works, to which was
referred the bill (S. 1933) to amend the Safe Drinking Water
Act to provide grants to small public drinking water systems,
having considered the same reports favorably thereon and
recommends that the bill do pass.
General Statement and Background
SUMMARY AND NEED FOR LEGISLATION
This Committee, the U.S. Environmental Protection Agency
(EPA), state officials, health experts, and water utilities
recognize that there are special challenges for many small
drinking water systems seeking to provide the highest quality
drinking water. EPA defines a small system as one serving fewer
than 3,300 people. According to EPA's assessment of drinking
water needs in 2003 (published in 2005), 45,000 of the nation's
54,000 community water systems are small systems serving fewer
than 3,300 people, with needs exceeding $34 billion over the
next 20 years.\1\ EPA's review concluded:
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\1\Environmental Protection Agency, ``Drinking Water Infrastructure
Needs Survey and Assessment; Third Report to Congress,'' page 7 (2005).
In addition, systems serving between 3,301 and 10,000 people also have
substantial needs not separately estimated in EPA's report.
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Small water systems face many unique challenges in
providing safe drinking water to consumers. The substantial
capital investments required to rehabilitate, upgrade, or
install infrastructure, without the economies of scale
available to larger systems, represent one challenge. Although
the total small system need is modest compared to the need of
larger systems, the costs borne on a per-household basis by
small systems are significantly higher than those of larger
systems.\2\
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\2\Ibid at 11.
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As noted by the National Academy of Sciences' National
Research Council (NRC) in its 1997 review of small system
drinking water challenges, ``meeting drinking water standards
is most difficult for water systems in small communities. Small
communities often cannot afford the equipment and qualified
operators necessary to ensure compliance with safe drinking
water standards.''
Many of the Academies' findings and recommendations
continue to be relevant today. The Academy panel noted that
increases in both the number of drinking water regulations and
the number of small community water systems over the past three
decades have made the problem of providing safe drinking water
to small communities even more challenging. The panel suggested
that ``the solution to the problem of providing safe drinking
water to small communities has three elements, each equally
important: (1) providing affordable water treatment
technologies, (2) creating the institutional structure
necessary to ensure the financial stability of water systems,
and (3) improving programs to train small system operators in
all aspects of water system maintenance and management.'' Thus,
the panel highlighted the importance of adequate funding for
efforts to assist small system operators with affordable water
treatment technologies and to offer technical assistance.
Objectives and Overview of the Legislation
The goal of the legislation is to amend the Safe Drinking
Water Act to provide grants to small public drinking water
systems. It includes a program for Indian tribes, and numerous
measures to assist small water systems in complying with
national primary drinking water regulations.
Section-by-Section Analysis
Section 1. Short title
This section provides that the Act may be cited as the
``Small Community Drinking Water Funding Act.''
Sec. 2. Findings and purpose
This section finds that drinking water standards can place
financial burdens on public water systems, especially systems
that serve fewer than a few thousand people, and that some
small public water systems have experienced water contamination
problems that may pose a significant risk to the health of
water consumers. It makes numerous other findings respecting
the special needs of small water systems, including the need
for scientific, technical, and professional resources, and for
support for capital investments. This section establishes that
the purpose of this Act is to establish a program to provide
grants to small public water systems to meet applicable
national primary drinking water regulations under the Safe
Drinking Water Act (42 U.S.C. 300f et seq.), maintain water
costs at a reasonable level for the communities served by small
public water systems, and obtain technical assistance to
develop the capacity to sustain operations over the long term.
Sec. 3. Small public water system assistance program
This section refines the definitions in the Act including
the definition of Indian Tribe in section 1401(14) of the Safe
Drinking Water Act to ensure that they are eligible for
assistance under the new small public water system assistance
program. This section establishes the small public water system
assistance program, defining eligible activity, eligible
entity, and eligible state. Small system is defined to include
public water systems serving up to 10,000 people for the
purposes of this Act.
This section allocates funds for grants to small public
water systems, and for State and Indian Tribe programs to
assist them. It also authorizes $750 million per year to carry
out this program.
Legislative History
Senator Reid introduced S. 1933 on August 1, 2007 with
Senators Ensign, Boxer, Baucus, Murray, Clinton, Sanders, and
Conrad. Senator Klobuchar later joined as a cosponsor. The bill
was referred to the Committee on Environment and Public Works,
and was ordered reported favorably out of the Committee without
amendment on July 31, 2008.
Rollcall Votes
S. 1933 passed the Committee by voice vote on July 31,
2008, with Senator Inhofe requesting that he be recorded as
voting aye.
Regulatory Impact Statement
In compliance with section 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes evaluation of
the regulatory impact of the reported bill.
The bill does not create any additional regulatory burdens,
nor will it cause any adverse impact on the personal privacy of
individuals.
Mandates Assessment
In compliance with the Unfunded Mandates Reform Act of 1995
(Pub. L. 104-4), the Committee finds that S. 1933 would impose
no Federal intergovernmental unfunded mandates on State, local,
or tribal governments.
Congressional Budget Office Cost Estimate
August 19, 2008.
Hon. Barbara Boxer,
Chairman, Committee on Environment and Public Works,
U.S. Senate, Washington, DC.
Dear Madam Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 1933, the Small
Community Drinking Water Funding Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susanne S.
Mehlman.
Sincerely,
Peter R. Orszag.
Enclosure.
S. 1933--Small Community Drinking Water Funding Act
Summary: S. 1933 would require the Environmental Protection
Agency (EPA) to establish a Small Public Water System
Assistance Program. This legislation would authorize the
appropriation of $750 million for each of fiscal years 2009
through 2014 for EPA to administer this new program and to
provide grants to small public drinking water systems located
in states or areas governed by Indian tribes. Assuming
appropriation of the authorized amounts, CBO estimates that
implementing S. 1933 would cost $3.1 billion over the 2009-2013
period and $1.4 billion after 2013. Enacting S. 1933 would not
affect direct spending or revenues.
S. 1933 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 1933 is shown in the following table.
The costs of this legislation fall within budget function 300
(natural resources and environment). For this estimate, CBO
assumes that S. 1933 will be enacted near the start of fiscal
year 2009 and that the amounts authorized by the bill will be
appropriated each year. Estimated outlays are based on
historical spending patterns for similar programs.
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------
2009 2010 2011 2012 2013 2009-2013
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CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Authorization Level........................... 750 750 750 750 750 3,750
Estimated Outlays............................. 300 600 690 735 750 3,075
----------------------------------------------------------------------------------------------------------------
Intergovernmental and private-sector impact: S. 1933
contains no intergovernmental or private-sector mandates as
defined in UMRA, and state, local, and tribal governments would
benefit from the funds authorized by this bill. The bill would
establish grant programs to support small public water systems.
The grant programs would be voluntary, and the associated
requirements for participation would not be mandates under
UMRA.
Estimate prepared by: Federal Costs: Susanne S. Mehlman;
Impact on State, Local, and Tribal Governments: Burke Doherty;
Impact on the Private Sector: Amy Petz.
Estimate approved by: Peter H. Fontaine, Assistant Director
for Budget Analysis.
ADDITIONAL VIEWS
I have spent much of my political career advocating for
rural communities who lack the financial capability to comply
with oftentimes expensive drinking water regulations. S. 1933,
the Small Community Drinking Water Funding Act, takes a step in
the right direction by providing much needed financial
assistance to small public water systems struggling to keep up
with new regulations and escalating construction costs.
However, Congress should go further by requiring the
Environmental Protection Agency (EPA) to develop a lower, more
reasonable affordability threshold that will lead to new
variance technologies, ultimately driving down the
disproportionate cost of compliance to rural communities while
still adequately protecting human health. For that reason, I
filed amendments, but still support the underlying bill.
The purpose of my amendments is to ensure that small towns
across the country have safe, reliable and affordable drinking
water. I introduced the Small Systems Safe Drinking Water Act
that helps communities achieve these ends through several
means. First, my legislation provides technical assistance to
communities that lack the scientific and technical backgrounds
to achieve compliance and operate complicated treatment
facilities.
My legislation also requires the Environmental Protection
Agency to revise their affordability criteria. According to
EPA, families can afford water rates of 2.5 percent of their
annual median household income, or $1,000 per household. For
some families, paying $83 a month for water is not a hardship
but for so many more, it is a near impossibility. Therefore,
there must be some flexibility in the calculation that
incorporates the ability of the truly disadvantaged to pay
these costs. Forcing systems to raise rates beyond what their
ratepayers can afford may cause far more damage than
intentioned. EPA needs to closely examine how it determines
affordability and must identify variance technologies to assist
the many hardship communities across the country.
Additionally, this bill directs EPA to take additional
steps when making this affordability determination. For rules
that are governed by the new affordability standard, EPA must
identify a variance technology for rules found unaffordable.
Without such a technology, the EPA cannot take an enforcement
action against a system serving less than 10,000 people.
Most importantly, this bill requires the Federal Government
to pay for these unfunded mandates. In 1995, Congress passed
the Unfunded Mandates Reform Act to ensure that the Federal
Government pays the costs incurred by state and local
governments in complying with the certain requirements under
Federal statutes and regulations. The current problem is two-
fold; our communities operate under too many regulations and
not enough money to pay for them. Funding legislation is
important but until that money becomes available, it is
unreasonable to penalize and fine local communities because
they cannot afford to pay for regulations the federal
government imposed on them.
Drinking water and treatment works are obvious necessities
for functioning and healthy communities that can be vulnerable
to natural disasters and terrorist attacks. For this reason, I
offered an amendment in relation to my Water Security Act of
2007. My amendment creates a partnership with local communities
to secure their drinking and wastewater treatment works
facilities. The language authorizes grants for communities to
conduct vulnerability assessments, implement security measures,
develop emergency response plan, and for needed technical
assistance. Many communities have finished vulnerability
assessments on their drinking water facilities, but lack the
resources and technical assistance to go the next step and
implement security plans and upgrade security features. It is
imperative that Congress not ignore vulnerabilities and needs
at community drinking water and treatment works facilities.
James M. Inhofe.
Changes in Existing Law
In compliance with section 12 of rule XXVI of the Standing
Rules of the Senate, changes in existing law made by the bill
as reported are shown as follows: Existing law proposed to be
omitted is enclosed in [black brackets], new matter is printed
in italic, existing law in which no change is proposed is shown
in roman:
* * * * * * *
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TITLE XIV OF THE PUBLIC HEALTH SERVICE ACT (THE SAFE DRINKING WATER
ACT)1
[As Amended Through P.L. 109-58, Enacted August 8, 2005]
TITLE XIV--SAFETY OF PUBLIC WATER SYSTEMS
SHORT TITLE
Sec. 1400. This title may be cited as the ``Safe Drinking
Water Act''.
Part A--Definitions
DEFINITIONS
Sec. 1401. For purposes of this title:
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\1\This title, the ``Safe Drinking Water Act'', consists of title
XIV of the Public Health Service Act (42 U.S.C. 300f-300j-9) as added
by Public Law 93-523 (Dec. 16, 1974) and the amendments made by
subsequent enactments.
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(1) The term ``primary drinking water regulation''
means a regulation which--
(A) applies to public water systems;
(B) specifies contaminants which, in the
judgment of the Administrator, may have any
adverse effect on the health of persons;
(C) specifies for each such contaminant
either--
(i) a maximum contaminant level, if,
in the judgment of the Administrator,
it is economically and technologically
feasible to ascertain the level of such
contaminant in water in public water
systems, or
(ii) if, in the judgment of the
Administrator, it is not economically
or technologically feasible to so
ascertain the level of such
contaminant, each treatment technique
known to the Administrator which leads
to a reduction in the level of such
contaminant sufficient to satisfy the
requirements of section 1412; and
(D) contains criteria and procedures to
assure a supply of drinking water which
dependably complies with such maximum
contaminant levels; including accepted methods
for quality control and testing procedures to
insure compliance with such levels and to
insure proper operation and maintenance of the
system, and requirements as to (i) the minimum
quality of water which may be taken into the
system and (ii) siting for new facilities for
public water systems. At any time after
promulgation of a regulation referred to in
this paragraph, the Administrator may add
equally effective quality control and testing
procedures by guidance published in the Federal
Register. Such procedures shall be treated as
an alternative for public water systems to the
quality control and testing procedures listed
in the regulation.
(2) * * *
* * * * * * *
(14) The term ``Indian Tribe'' means any Indian tribe
having a Federally recognized governing body carrying
out substantial governmental duties and powers over any
area. For purposes of section [1452]1452 and part G,
the term includes any Native village (as defined in
section 3(c) of the Alaska Native Claims Settlement Act
(43 U.S.C. 1602(c))).
* * * * * * *
Sec. 1465. (a) School Drinking Water Programs.--* * *
* * * * * * *
Part G--Small Public Water System Assistance
SEC. 1471. DEFINITIONS.
In this part:
(1) Eligible activity.--
(A) In general.--The term ``eligible
activity'' means an activity concerning a small
public water system (including obtaining
technical assistance) that is carried out by an
eligible entity for a purpose consistent with
section 1473(c)(1) or 1474(c)(1), as
appropriate.
(B) Exclusion.--The term ``eligible
activity'' does not include any activity to
increase the population served by a small
public water system, except to the extent that
the State under section 1473(b)(1) or the
Administrator under section 1474(b)(1)
determines an activity to be necessary to--
(i) achieve compliance with a
national primary drinking water
regulation; and
(ii) provide a water supply to a
population that, as of the date of
enactment of this part, is not served
by a safe public water system.
(2) Eligible entity.--The term ``eligible entity''
means a small public water system that--
(A) is located in a State or an area governed
by an Indian Tribe; and
(B)(i) if located in a State, serves a
community that, under affordability criteria
established by the State under section
1452(d)(3), is determined by the State to be--
(I) a disadvantaged community; or
(II) a community the State expects to
become a disadvantaged community as a
result of carrying out an eligible
activity; or
(ii) if located in an area governed by an
Indian Tribe, serves a community that is
determined by the Administrator, under criteria
published by the Administrator under section
1452(d)(3) and in consultation with the
Secretary, to be--
(I) a disadvantaged community; or
(II) a community the Administrator
expects to become a disadvantaged
community as a result of carrying out
an eligible activity.
(3) Eligible state.--The term ``eligible State''
means a State that has--
(A) adopted, and is implementing, an approved
operator certification program under section
1419; and
(B) established affordability criteria under
section 1452(d)(3) for use in identifying
disadvantaged communities.
(4) Program.--The term ``Program'' means the Small
Public Water System Assistance Program established
under section 1472(a).
(5) Secretary.--The term ``Secretary'' means the
Secretary of Health and Human Services, acting through
the Director of the Indian Health Service.
(6) Small public water system.--The term ``small
public water system'' means a public water system
(including a community water system and a noncommunity
water system) that serves a population of 10,000 or
fewer.
SEC. 1472. SMALL PUBLIC WATER SYSTEM ASSISTANCE PROGRAM.
(a) Establishment.--Not later than July 1, 2008, the
Administrator shall establish within the Environmental
Protection Agency a Small Public Water System Assistance
Program.
(b) Duties.--The head of the Program shall--
(1) in accordance with section 1474, establish and
administer a small public water system assistance
program for, and provide grants to, eligible entities
located in areas governed by Indian Tribes, for use in
carrying out eligible activities;
(2) identify, and prepare annual prioritized lists
of, activities for eligible entities located in areas
governed by Indian Tribes that are eligible for grants
under section 1474;
(3) provide funds to States for use in establishing
small public water system assistance programs under
section 1473 that award grants to eligible entities to
carry out eligible activities; and
(4) prepare, and submit to the Administrator, the
reports required under subsection (d).
(c) Allocation of Funds.--
(1) States.--
(A) In general.--Subject to subparagraphs (B)
through (D) and paragraph (2)(A), for each
fiscal year, the Administrator, through the
head of the Program, using the most recent
available needs survey conducted by the
Administrator under section 1452(h), shall
allocate the funds made available to carry out
the Program for the fiscal year among eligible
States based on the ratio that--
(i) the financial need associated
with treatment projects for small
public water systems in the State;
bears to
(ii) the total financial need
associated with treatment projects for
all small public water systems in all
States.
(B) Additional requirements.--Any additional
financial needs of small public water systems
associated with the cost of treatment projects
needed to comply with a national primary
drinking water regulation that is promulgated
after the most recent needs survey conducted
under section 1452(h) shall be factored into
the determination of financial need under
clauses (i) and (ii) of subparagraph (A) for
each fiscal year.
(C) Minimum allocation.--An allocation of
funds to a State for a fiscal year under
subparagraph (A), taking into consideration any
additional financial needs described in
subparagraph (B), shall be in an amount that is
at least 1 percent of the amount of funds
available for that fiscal year.
(D) Redistribution if nonuse.--If a State
does not qualify for, or fails to request,
funds allocated to the State under subparagraph
(A) in any fiscal year, the Administrator shall
redistribute the funds among the States that--
(i) request funds for that fiscal
year; and
(ii) are eligible to receive the
funds under subparagraph (A) for that
fiscal year.
(2) Indian tribes.--
(A) In general.--For each fiscal year, in
accordance with subparagraph (B), 3 percent of
the total amount of funds made available to
carry out the Program for the fiscal year shall
be allocated by the Administrator to provide
grants to eligible entities that are located in
areas governed by Indian Tribes through the
program established under section 1474(a).
(B) Use of funds.--
(i) In general.--For each fiscal
year, the Administrator shall award, on
a competitive basis, not less than 1.5
percent of the funds allocated under
subparagraph (A) to nonprofit technical
assistance organizations, to be used
for the purposes of--
(I) assisting the
Administrator in preparing the
list required under section
1474(b) (including assisting
the Administrator in
identifying the highest
priority eligible activities
for eligible entities located
in areas governed by Indian
Tribes for which a grant under
section 1474 may be used);
(II) assisting eligible
entities located in areas
governed by Indian Tribes in--
(aa) assessing needs
relating to eligible
activities; and
(bb) identifying
available sources of
funding to meet the
cost-sharing
requirement of section
1474(f)(1); and
(III) assisting eligible
entities located in areas
governed by Indian Tribes that
receive funding under section
1474 in--
(aa) planning,
implementing, and
maintaining eligible
activities that are
funded under that
section; and
(bb) preparing
reports required under
section 1474(h).
(ii) Consultation.--Each nonprofit
technical assistance organization that
receives funds under clause (i) shall
consult with the Administrator, through
the head of the program, before
carrying out any activity for the
purposes described in subclauses
(II)(aa) and (III)(aa) of that clause.
(iii) No funds for lobbying
expenses.--None of the funds made
available to a nonprofit technical
assistance organization under clause
(i) shall be used to pay lobbying
expenses.
(3) Program.--For each fiscal year, the Administrator
may use not more than 0.1 percent of the funds made
available to carry out the Program to pay reasonable
costs incurred in the administration of the Program.
(d) Reports.--Not later than January 1, 2009, and annually
thereafter through January 1, 2014, the Administrator shall--
(1) submit, to the Committee on Energy and Commerce
of the House of Representatives and the Committee on
Environment and Public Works of the Senate, a report
that, for the preceding fiscal year--
(A) lists the eligible activities for
eligible entities, as prepared under sections
1473(b)(1) and 1474(b)(1), located in areas
governed by Indian Tribes and in each State
receiving funds under this part;
(B) identifies the number of grants awarded
by each State, and by the Administrator to
eligible entities located in areas governed by
Indian Tribes, under this part;
(C) identifies each eligible entity that
received a grant to carry out an eligible
activity;
(D) identifies the amount of each grant
provided to an eligible entity to carry out an
eligible activity; and
(E) describes each eligible activity funded
by such a grant (including the status of the
eligible activity); and
(2) make the report under paragraph (1) available to
the public.
SEC. 1473. STATE SMALL PUBLIC WATER SYSTEM ASSISTANCE PROGRAMS.
(a) In General.--To be eligible to receive funding under this
part, a State shall--
(1) be an eligible State;
(2) not later than July 1, 2008 (if funding is sought
for fiscal year 2008) or not later than September 30 of
any of fiscal years 2008 through 2014 (if funding is
sought for the following fiscal year), establish a
small public water system assistance program--
(A) under which the requirements of
subsection (b), oversight, and related
activities (other than financial
administration) with respect to the program are
administered--
(i) in the case of a State that is
exercising primary enforcement
responsibility for public water
systems, by the State agency having
primary responsibility for
administration of the State program
under section 1413; and
(ii) in the case of a State that is
not exercising primary enforcement
authority for public water systems, by
a State agency selected by the Governor
of the State; and
(B) that meets the requirements of this
section; and
(3) for each fiscal year for which funding is sought
under this section--
(A) in preparing an intended use plan under
section 1452(b), after providing for public
review and comment, prepare an annual list of
eligible activities for eligible entities in
the State in accordance with subsection (b);
and
(B) prepare and submit to the Administrator a
request for the funding, by such date and in
such form as the Administrator shall prescribe.
(b) Program Priority Requirement.--
(1) List of eligible activities.--A small public
water system assistance program established under
subsection (a) shall, for each fiscal year for which
funding is sought, identify, and, using the priority
criteria described in paragraph (2) and considering the
additional criteria described in paragraph (3), list in
descending order of priority, eligible activities for
eligible entities in the State for which funds provided
from a grant under this part may be used.
(2) Priority criteria.--In preparing the list under
paragraph (1), a small public water system assistance
program shall give priority for the use of grants to
eligible activities that--
(A) address the most serious risk to human
health;
(B) are necessary to ensure compliance with
national primary water regulations applicable
to eligible entities under section 1412; and
(C) assist systems most in need, as
calculated on the basis of median household
income, under affordability criteria
established by the State under section
1452(d)(3).
(3) Additional criteria.--In addition to the priority
criteria described in paragraph (2), a small public
water system assistance program shall, in preparing a
list under paragraph (1), consider giving additional
priority to any listed eligible activities that are to
be carried out by communities that form management
cooperatives (including management cooperatives between
systems that do not have connections).
(c) Use of Funds.--Using any funds received by a State under
this section for a fiscal year, in accordance with the list
prepared under subsection (b), a small public water system
assistance program established by the State under subsection
(a)--
(1) shall provide to an eligible entity, on a cost-
shared basis, a grant to be used for an eligible
activity (including source water protection) the
purpose of which is compliance with national primary
drinking water regulations applicable to the eligible
entity under section 1412;
(2) shall--
(A) award, on a competitive basis, not less
than 1.5 percent of the funds to nonprofit
technical assistance organizations to be used
for the purposes of--
(i) assisting the State in preparing
the list required under subsection (b)
(including assisting the State in
identifying the highest priority
eligible activities for eligible
entities located in the State for which
a grant under this section may be
used); and
(ii) assisting eligible entities in--
(I) assessing needs relating
to eligible activities;
(II) identifying available
sources of funding to meet the
cost-sharing requirement of
subsection (f); and
(III) planning, implementing,
and maintaining any eligible
activities of the eligible
entities that receive funding
under this section;
(B) require each nonprofit technical
assistance organization that receives funds
under subparagraph (A) to consult with the
State, through the head of the small public
water assistance program, before carrying out
any activity for the purposes described in
subclauses (I) and (III) of subparagraph
(A)(ii); and
(C) require that none of the funds made
available to a nonprofit technical assistance
organization under subparagraph (A) be used to
pay lobbying expenses; and
(3) may use not to exceed 1 percent of the funds
allocated to the State to pay reasonable costs incurred
in the administration of the small public water system
assistance program.
(d) Limitation on Use of Funds.--For each fiscal year, not
more than 5 percent of the funds received by an eligible entity
under this section may be used to obtain technical assistance
in planning, implementing, and maintaining eligible activities
that are funded under this section.
(e) Limitation on Receipt of Funds.--
(1) In general.--Except as provided in paragraph (2),
a grant under this section shall not be provided to an
eligible entity that, as determined by the State--
(A) does not have the technical, managerial,
and financial capability to ensure compliance
with national primary drinking water
regulations applicable to the eligible entity
under section 1412; or
(B) is in significant noncompliance with any
applicable national primary drinking water
regulation.
(2) Exception for receipt of grant.--An eligible
entity described in paragraph (1) may receive a grant
under this section only--
(A) if the State determines that use of the
grant will ensure compliance with national
primary drinking water regulations applicable
to the eligible entity under section 1412;
(B)(i) to restructure or consolidate the
facility to achieve compliance with applicable
national primary drinking water regulations; or
(ii) in a case in which restructuring or
consolidation of the facility is not
practicable, if the State determines that--
(I) the eligible entity has made a
good faith effort to achieve compliance
with applicable national primary
drinking water regulations; and
(II) the eligible entity is adhering
to an enforceable schedule for
achieving those regulations; and
(C) in a case in which paragraph (1)(A)
applies to an eligible entity, and the eligible
entity agrees to undertake feasible and
appropriate changes in operations (including
changes in ownership, management, accounting,
rates, maintenance, consolidation, provision of
an alternative water supply, or other
procedures), if the State determines that the
measures are necessary to ensure that the
eligible entity has the technical, managerial,
and financial capability to comply with
applicable national primary drinking water
regulations over the long term.
(3) Review.--Before providing assistance under this
section to an eligible entity that is in significant
noncompliance with any national primary drinking water
regulation applicable to the eligible entity under
section 1412, the State shall conduct a review to
determine whether paragraph (1)(A) applies to the
entity.
(f) Cost Sharing.--
(1) In general.--
(A) Limit.--Except as provided in paragraph
(2), the share of the total cost of an eligible
activity funded by a grant under this section
shall not exceed 80 percent.
(B) Use of other federal funds.--To pay the
portion of an eligible activity that may not be
funded by a grant under this section, an
eligible entity may use Federal financial
assistance other than assistance received under
this section.
(2) Waiver of cost-sharing requirement.--
(A) In general.--Subject to subparagraph (B),
a State may waive the requirement of an
eligible entity to pay all or a portion of the
share of an eligible activity that may not be
funded by a grant under this section, based on
a determination by the State that the eligible
entity is unable to pay any or all of the
share.
(B) Limitation.--For each fiscal year in
which a State receives funding under this
section, the total amount of cost-share waivers
provided by the State under subparagraph (A)
shall not exceed 30 percent of the amount of
funding received by the State for the fiscal
year under section 1472(c)(1).
(g) Unobligated Funds.--Any funds not obligated by the State
for a purpose consistent with subsection (c) within 1 year
after the date of the allocation of the funds by the
Administrator under section 1472(c) shall be returned to the
Administrator for reallocation under that section.
(h) Reports.--Not later than November 1 following each fiscal
year in which a State receives funding under this section, the
State shall--
(1) submit to the Administrator a report that, for
the preceding fiscal year--
(A) lists the eligible activities for
eligible entities, as prepared under subsection
(b);
(B) identifies the number of grants awarded
by the State small public water system
assistance program to eligible entities;
(C) identifies each eligible entity that
received a grant to carry out an eligible
activity;
(D) identifies the amount of each grant
provided to an eligible entity to carry out an
eligible activity; and
(E) describes each eligible activity funded
by such grants (including the status of the
eligible activity); and
(2) make the report under paragraph (1) available to
the public.
SEC. 1474. SMALL PUBLIC WATER SYSTEM ASSISTANCE PROGRAM FOR INDIAN
TRIBES.
(a) Establishment.--Not later than July 1, 2008, the
Administrator shall establish a small public water system
assistance program for Indian Tribes, through which eligible
entities located in areas governed by the Indian Tribe may
receive grants for eligible activities under this part.
(b) Program Priority Requirement.--
(1) List of eligible activities.--
(A) In general.--The Administrator, acting
through the head of the small public water
system assistance program for Indian Tribes, in
consultation with the Secretary, shall, for
each fiscal year, identify, and, using the
priority criteria described in paragraph (2)
and considering the additional criteria
described in paragraph (3), list in descending
order of priority, eligible activities for
eligible entities located in areas governed by
Indian Tribes for which funds provided from a
grant under this part may be used.
(B) Coordination.--
(i) In general.--To the maximum
extent practicable, the Administrator
shall ensure that the list under
subparagraph (A) is coordinated with
any needs assessment conducted under
section 1452(i)(4).
(ii) Additional consideration.--Any
additional financial needs of small
public water systems located in areas
governed by Indian Tribes that are
associated with the cost of complying
with a national primary drinking water
regulation that is promulgated after
the most recent needs survey conducted
under section 1452(i)(4) shall be
factored into the determination of
financial need for, and prioritization
of, eligible activities under this
section.
(2) Priority criteria.--In preparing the list under
paragraph (1), the Administrator shall give priority
for the use of grants to eligible activities that--
(A) address the most serious risk to human
health;
(B) are necessary to ensure compliance with
national primary water regulations applicable
to eligible entities under section 1412; and
(C) assist systems most in need, as
calculated on the basis of median household
income, under affordability criteria published
by the Administrator under section 1452(d)(3).
(3) Additional criteria.--In addition to the priority
criteria described in paragraph (2), the Administrator
shall, in preparing a list under paragraph (1),
consider giving additional priority to any listed
eligible activities that are to be carried out by
communities that form management cooperatives
(including management cooperatives between systems that
do not have connections).
(c) Use of Funds.--
(1) In general.--Using funds allocated under section
1472(c)(2)(A), the small public water system assistance
program established under subsection (a) shall provide
to an eligible entity located in an area governed by an
Indian Tribe, on a cost-shared basis, a grant to be
used for an eligible activity (including source water
protection) the purpose of which is compliance with
national primary drinking water regulations applicable
to the eligible entity under section 1412.
(2) Allocation of grant funding.--For each fiscal
year, taking into consideration the funding allocation
under section 1472(c)(2)(A) for the fiscal year, the
head of the small public water assistance program
established under subsection (a), in consultation with
the Secretary, shall provide grants under paragraph (1)
for the maximum number of eligible activities for which
the funding allocation makes assistance available,
based on the priority assigned by the Administrator to
eligible activities under subsection (b).
(d) Limitation on Use of Funds.--For each fiscal year, not
more than 5 percent of the funds received by an eligible entity
under this section may be used to obtain technical assistance
in planning, implementing, and maintaining eligible activities
that are funded under this section.
(e) Limitation on Receipt of Funds.--
(1) In general.--Except as provided in paragraph (2),
a grant under this section shall not be provided to an
eligible entity that, as determined by the
Administrator--
(A) does not have the technical, managerial,
and financial capability to ensure compliance
with national primary drinking water
regulations applicable to the eligible entity
under section 1412; or
(B) is in significant noncompliance with any
applicable national primary drinking water
regulation.
(2) Exception for receipt of grant.--An eligible
entity described in paragraph (1) may receive a grant
under this section only--
(A) if the Administrator determines that use
of the grant will ensure compliance with
national primary drinking water regulations
applicable to the eligible entity under section
1412;
(B)(i) to restructure or consolidate the
facility to achieve compliance with applicable
national primary drinking water regulations; or
(ii) in a case in which restructuring or
consolidation of the facility is not
practicable, if the Administrator determines
that--
(I) the eligible entity has made a
good faith effort to achieve compliance
with applicable national primary
drinking water regulations; and
(II) the eligible entity is adhering
to an enforceable schedule for
achieving those regulations; and
(C) in a case in which paragraph (1)(A)
applies to an eligible entity, and the eligible
entity agrees to undertake feasible and
appropriate changes in operations (including
changes in ownership, management, accounting,
rates, maintenance, consolidation, provision of
an alternative water supply, or other
procedures), if the Administrator determines
that the measures are necessary to ensure that
the eligible entity has the technical,
managerial, and financial capability to comply
with applicable national primary drinking water
regulations over the long term.
(3) Review.--Before providing assistance under this
section to an eligible entity that is in significant
noncompliance with any national primary drinking water
regulation applicable to the eligible entity under
section 1412, the Administrator shall conduct a review
to determine whether paragraph (1)(A) applies to the
entity.
(f) Cost Sharing.--
(1) In general.--
(A) Limit.--Except as provided in paragraph
(2), the share of the total cost of an eligible
activity funded by a grant under this section
shall not exceed 80 percent.
(B) Use of other federal funds.--To pay the
portion of an eligible activity that may not be
funded by a grant under this section, an
eligible entity may use Federal financial
assistance other than assistance received under
this section.
(2) Waiver of cost-sharing requirement.--
(A) In general.--The Administrator may waive
the requirement of an eligible entity to pay
all or a portion of the share of eligible
activity that may not be funded by a grant
under this section based on a determination by
the Administrator that the eligible entity is
unable to pay any or all of the share.
(B) Limitation.--For each fiscal year, the
total amount of cost-share waivers provided by
the Administrator under subparagraph (A) shall
not exceed 30 percent of the amount of funding
allocated to eligible entities located in areas
governed by Indian Tribes for the fiscal year
under section 1472(c)(2)(A).
(g) Unobligated Funds.--Any funds not obligated by the small
public water system assistance program established under
subsection (a) for a purpose consistent with section
1472(c)(2)(B) and subsection (c) within 1 year after the date
of allocation of the funds by the Administrator under section
1472(c)(2)(A) shall be returned to the Administrator for
reallocation under that section.
(h) Reports.--Not later than November 1 following each fiscal
year in which an Indian Tribe receives funding under this
section, the Indian Tribe shall submit to the Administrator a
report that, for the preceding fiscal year--
(1) identifies the number of grants awarded to
eligible entities located in areas governed by the
Indian Tribe;
(2) identifies each such eligible entity that
received a grant to carry out an eligible activity;
(3) identifies the amount of each grant provided to
such an eligible entity to carry out an eligible
activity; and
(4) describes each eligible activity funded by such
grants (including the status of the eligible activity).
SEC. 1475. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this part
$750,000,000 for each of fiscal years 2008 through 2014.
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