[House Report 108-675]
[From the U.S. Government Publishing Office]
108th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 108-675
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WATER QUALITY INVESTMENT ACT
_______
September 13, 2004.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Young of Alaska, from the Committee on Transportation and
Infrastructure, submitted the following
R E P O R T
[To accompany H.R. 784]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 784) to amend the Federal Water
Pollution Control Act to authorize appropriations for sewer
overflow control grants, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SEWER OVERFLOW CONTROL GRANTS.
(a) Administrative Requirements.--Section 221(e) of the Federal Water
Pollution Control Act (33 U.S.C. 1301(e)) is amended to read as
follows:
``(e) Administrative Requirements.--A project that receives
assistance under this section shall be carried out subject to the same
requirements as a project that receives assistance from a State water
pollution control revolving fund under title VI, except to the extent
that the Governor of the State in which the project is located
determines that a requirement of title VI is inconsistent with the
purposes of this section.''.
(b) Authorization of Appropriations.--The first sentence of section
221(f) of such Act (33 U.S.C. 1301(f)) is amended by striking
``$750,000,000'' and all that follows before the period and inserting
``$250,000,000 for each of fiscal years 2005 through 2010''.
(c) Allocation of Funds.--Section 221(g) of such Act (33 U.S.C.
1301(g)) is amended to read as follows:
``(g) Allocation of Funds.--
``(1) Fiscal year 2005.--Subject to subsection (h), the
Administrator shall use the amounts appropriated to carry out
this section for fiscal year 2005 for making grants to
municipalities and municipal entities under subsection (a)(2)
in accordance with the criteria set forth in subsection (b).
``(2) Fiscal year 2006 and thereafter.--Subject to subsection
(h), the Administrator shall use the amounts appropriated to
carry out this section for fiscal year 2006 and each fiscal
year thereafter for making grants to States under subsection
(a)(1) in accordance with a formula to be established by the
Administrator, after providing notice and an opportunity for
public comment, that allocates to each State a proportional
share of such amounts based on the total needs of the State for
municipal combined sewer overflow controls and sanitary sewer
overflow controls identified in the most recent survey
conducted pursuant to section 516.''.
(d) Reports.--The first sentence of section 221(i) of such Act (33
U.S.C. 1301(i)) is amended by striking ``2003'' and inserting ``2008''.
Purpose of the Legislation
The purpose of H.R. 784, the ``Water Quality Investment Act
of 2003,'' is to amend section 221 of the Federal Water
Pollution Control Act (the Clean Water Act) to reauthorize
appropriations for grants to municipalities and States to
control combined sewer overflows and sanitary sewer overflows.
Background and Need for Legislation
Combined sewer systems, which carry both storm water and
sanitary (sewage) flows, and separate sanitary sewer systems
can overflow with untreated waste during wet weather episodes
such as rainfall or snow melts. These combined sewer overflows
(CSOs) and sanitary sewer overflows (SSOs) may also occur
outside of precipitation events because of insufficient system
capacity, poor system design, inadequate maintenance, inflow
from improper connections to the system, and infiltration from
groundwater into deteriorated pipes, among other factors.
CSOs and SSOs present significant public health and safety
concerns because raw sewage can overflow into rivers, lakes,
streets, parks, basements, and other areas of potential human
exposure, adversely impacting public health and the
environment. These discharges are among the major sources
responsible for beach closures, shellfish restrictions, and
exceedances of water quality standards.
According to a December 2001 U.S. Environmental Protection
Agency (EPA) Report to Congress, there are 772 communities
across the United States that have combined sewer systems.
These combined sewer systems have 9,471 built-in relief outlets
designed to prevent wastewater flows in excess of system
capacity from damaging the systems' treatment works, by
allowing wastewater discharges (``overflows'') directly into
nearby streams, rivers, lakes, or estuaries, instead of going
to the treatment works. CSOs are found in 31 States and the
District of Columbia, typically in older communities. EPA also
has estimated that more than 40,000 SSOs per year occur from
the nation's 19,500 separate sanitary sewer systems. SSOs can
occur in streets, parks, basements, and other areas.
CSOs are point source discharges regulated under the Clean
Water Act, and are subject to permitting under the National
Pollutant Discharge Elimination System (NPDES) by EPA or
authorized States. Permits include technology-based standards
determined on a case-by-case basis (rather than categorical
standards) and any appropriate water quality standards. Under
the CSO Control Policy issued by EPA in 1994, communities must
adopt nine minimum controls and must develop long-term control
plans. The CSO Control Policy requires these controls and plans
to be incorporated into an NPDES permit or other enforceable
mechanism that will ensure implementation by the CSO community.
Section 402(q) of the Clean Water Act requires each permit,
order, or decree issued after December 21, 2000, for a
discharge from a municipal combined storm and sanitary sewer to
conform to the 1994 CSO Control Policy.
Correcting these problems is expensive. In its 2000 Clean
Water Needs Survey, EPA estimated the cost to communities of
addressing CSOs to be $50.6 billion, and the cost of addressing
SSOs $88.5 billion.
The vast majority of these costs will be borne by local
communities and local ratepayers. Federal assistance has been
small relative to the overall needs to address CSOs and SSOs.
Through 2003, States have made approximately $3.4 billion in
loans for CSOs from State Revolving Loan Funds (SRFs) and have
made approximately $1.45 billion in loans to address the
infiltration and inflow into sewer pipes that can cause SSOs.
In addition, Congress earmarked over $600 million in EPA grants
for 32 CSO communities between 1992 and 2001.
To provide additional Federal assistance, in 2000, in P.L.
106-554, Congress amended the Clean Water Act to add section
221. Section 221 authorized appropriations of $750 million for
each of fiscal years 2002 and 2003 for EPA to make grants to
States and municipalities for controlling CSOs and SSOs. This
authorization was conditioned upon the receipt of at least
$1.35 billion in appropriations for the Clean Water State
Revolving Loan Funds. No funds were appropriated for sewer
overflow control grants in either fiscal year 2002 or 2003 and
this authorization has expired.
Summary of the Legislation
Section 1. Sewer overflow control grants
Subsection (a) amends section 221(e) of the Clean Water Act
to require that a project that receives assistance under this
section is to be carried out in accordance with the
requirements for projects receiving assistance from State
Revolving Loan Funds under title VI of the Clean Water Act,
except to the extent that the Governor of the State in which
the project is located determines that a requirement of title
VI is inconsistent with the purposes of this section. This
section allows States to implement grants under section 221 in
conjunction with a State's Revolving Loan Fund program.
Subsection (b) amends section 221(f) of the Clean Water Act
to authorize $1.5 billion in authority over six years,
providing $250 million for each of fiscal years 2005 through
2010.
Subsection (c) amends section 221(g) of the Clean Water Act
to update the provision for allocation of funds to reflect the
new dates of authorization and reauthorized amounts.
Specifically, consistent with section 221 as originally
enacted, funding in the first year of authorization is to be
used for direct grants by the Administrator to municipalities.
For subsequent years, the Administrator is to allocate funds to
States, in accordance with a needs-based formula established by
the Administrator, and such funds are to be used by States to
make grants to municipalities. This amendment also eliminates
the set-aside of $250 million for the Administrator to make
direct grants in the second year of authorization, because, as
amended, $250 million is the total amount authorized in each
fiscal year.
Subsection (d) amends section 221(i) of the Clean Water Act
to change the date the Administrator is required to transmit to
Congress an initial report containing recommended funding
levels for grants under this section from December 31, 2003, to
December 31, 2008.
Legislative History and Committee Consideration
The Water Resources and Environment Subcommittee held a
hearing on H.R. 784 and other pending legislation on July 8,
2004. Testimony was presented by Representative Camp and a
representative of the Association of Metropolitan Sewerage
Agencies.
The Water Resources and Environment Subcommittee met on
July 15, 2004, to consider H.R. 784 and other legislation. The
Subcommittee adopted by voice vote an amendment in the nature
of a substitute. The amendment extended the authorization of
appropriations of $1.5 billion for sewer overflow control
grants to six years instead of two years, authorizing $250
million for each of fiscal years 2005 through 2010. The
amendment also made other changes to section 221 to update the
authority and to ensure that States may administer these grants
in the same way that they administer loans from the State
Revolving Loan Funds. The Subcommittee reported the bill, as
amended, favorably to the Committee on Transportation and
Infrastructure, by voice vote.
The Committee on Transportation and Infrastructure met in
open session on July 21, 2004, and ordered the bill, as amended
by the Subcommittee, reported to the House by voice vote.
Rollcall Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires each committee report to include the
total number of votes cast for and against on each rollcall
vote on a motion to report and on any amendment offered to the
measure or matter, and the names of those members voting for
and against. There were no recorded votes taken in connection
with ordering H.R. 784 reported. A motion to order H.R. 784
reported to the House was agreed to by voice vote.
Committee Oversight Findings
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
Cost of Legislation
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
Compliance With House Rule XIII
1. With respect to the requirement of clause 3(c)(2) of
rule XIII of the Rules of the House of Representatives, and
308(a) of the Congressional Budget Act of 1974, the Committee
references the report of the Congressional Budget Office
included below.
2. With respect to the requirement of clause 3(c)(4) of
rule XIII of the Rules of the House of Representatives, the
performance goals and objectives of this legislation are to
control combined sewer overflows and sanitary sewer overflows
through additional planning, design, and construction of
treatment works to intercept, transport, control, or treat CSOs
and SSOs.
3. With respect to the requirement of clause 3(c)(3) of
rule XIII of the Rules of the House of Representatives and
section 402 of the Congressional Budget Act of 1974, the
Committee has received the following cost estimate for H.R. 784
from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 23, 2004.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 784, a bill to
amend the Federal Water Pollution Control Act to authorize
appropriations for sewer overflow grants.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Susanne S.
Mehlman (for federal costs) and Gregory Waring (for the state
and local impact).
Sincerely,
Elizabeth Robinson
(For Douglas Holtz-Eakin, Director).
Enclosure.
H.R. 784--A bill to amend the Federal Water Pollution Control Act to
authorize appropriations for sewer overflow control grants
Summary: H.R. 784 would authorize appropriations of $250
million annually over the 2005-2009 period for the
Environmental Protection Agency (EPA) to provide grants to
municipalities and states to control overflows of untreated
waste that can occur during episodes of wet weather. Such
overflows of sewage can pose a health and safety risk if they
flow into rivers, lakes, and streets. This legislation also
would permit states and municipalities to use the grant money
to provide loans for eligible projects. CBO estimates that
implementing this legislation would cost about $1.1 billion
over the next five years, assuming appropriation of the
authorized amounts. Enacting the bill would not affect direct
spending or receipts.
H.R. 784 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. The bill would benefit publicly owned wastewater
plants by reauthorizing grants to build, expand, or improve
facilities to control sewer overflows. Any costs incurred by
publicly owned water works would result from conditions of
federal assistance.
Estimated cost to the Federal Government: For this
estimate, CBO assumes that the bill will be enacted near the
end of fiscal year 2004 and that the amounts authorized will be
appropriated for each fiscal year. Estimated outlays are based
on historical spending patterns of similar grant programs. The
estimated budgetary impact of H.R. 784 is shown in the
following table. The costs of this legislation fall within
budget function 300 (natural resources and the environment).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------
2005 2006 2007 2008 2009
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CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Authorization level........................................... 250 250 250 250 250
Estimated outlays............................................. 125 200 238 250 250
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Intergovernmental and private-sector impact: H.R. 784
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments. The bill would benefit publicly owned
wastewater plants by reauthorizing grants to build, expand, or
improve facilities to control sewer overflows. Any costs
incurred by publicly owned water works would result from
conditions of federal assistance.
Estimate prepared by: Federal Costs: Susanne S. Mehlman;
Impact on State, Local, and Tribal Government: Gregory Waring;
and Impact on the Private Sector: Jean Talarico.
Estimate approved by: Peter H. Fontaine; Deputy Assistant
Director for Budget Analysis.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, committee reports on a bill or joint
resolution of a public character shall include a statement
citing the specific powers granted to the Congress in the
Constitution to enact the measure. The Committee on
Transportation and Infrastructure finds that Congress has the
authority to enact this measure pursuant to its powers granted
under article I, section 8 of the Constitution.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (Public Law 104-4).
Preemption Clarification
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local,
or tribal law. The Committee states that H.R. 784 does not
preempt any state, local, or tribal law.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act are created by this
legislation.
Applicability to the Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, 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):
SECTION 221 OF THE FEDERAL WATER POLLUTION CONTROL ACT
SEC. 221. SEWER OVERFLOW CONTROL GRANTS.
(a) * * *
* * * * * * *
[(e) Administrative Reporting Requirements.--If a project
receives grant assistance under subsection (a) and loan
assistance from a State water pollution control revolving fund
and the loan assistance is for 15 percent or more of the cost
of the project, the project may be administered in accordance
with State water pollution control revolving fund
administrative reporting requirements for the purposes of
streamlining such requirements.]
(e) Administrative Requirements.--A project that receives
assistance under this section shall be carried out subject to
the same requirements as a project that receives assistance
from a State water pollution control revolving fund under title
VI, except to the extent that the Governor of the State in
which the project is located determines that a requirement of
title VI is inconsistent with the purposes of this section.
(f ) Authorization of Appropriations.--There is authorized to
be appropriated to carry out this section [$750,000,000 for
each of fiscal years 2002 and 2003] $250,000,000 for each of
fiscal years 2005 through 2010. Such sums shall remain
available until expended.
[(g) Allocation of Funds.--
[(1) Fiscal year 2002.--Subject to subsection (h),
the Administrator shall use the amounts appropriated to
carry out this section for fiscal year 2002 for making
grants to municipalities and municipal entities under
subsection (a)(2), in accordance with the criteria set
forth in subsection (b).
[(2) Fiscal year 2003.--Subject to subsection (h),
the Administrator shall use the amounts appropriated to
carry out this section for fiscal year 2003 as follows:
[(A) Not to exceed $250,000,000 for making
grants to municipalities and municipal entities
under subsection (a)(2), in accordance with the
criteria set forth in subsection (b).
[(B) All remaining amounts for making grants
to States under subsection (a)(1), in
accordance with a formula to be established by
the Administrator, after providing notice and
an opportunity for public comment, that
allocates to each State a proportional share of
such amounts based on the total needs of the
State for municipal combined sewer overflow
controls and sanitary sewer overflow controls
identified in the most recent survey conducted
pursuant to section 516(b)(1).]
(g) Allocation of Funds.--
(1) Fiscal year 2005.--Subject to subsection (h), the
Administrator shall use the amounts appropriated to
carry out this section for fiscal year 2005 for making
grants to municipalities and municipal entities under
subsection (a)(2) in accordance with the criteria set
forth in subsection (b).
(2) Fiscal year 2006 and thereafter.--Subject to
subsection (h), the Administrator shall use the amounts
appropriated to carry out this section for fiscal year
2006 and each fiscal year thereafter for making grants
to States under subsection (a)(1) in accordance with a
formula to be established by the Administrator, after
providing notice and an opportunity for public comment,
that allocates to each State a proportional share of
such amounts based on the total needs of the State for
municipal combined sewer overflow controls and sanitary
sewer overflow controls identified in the most recent
survey conducted pursuant to section 516.
* * * * * * *
(i) Reports.--Not later than December 31, [2003] 2008, and
periodically thereafter, the Administrator shall transmit to
Congress a report containing recommended funding levels for
grants under this section. The recommended funding levels shall
be sufficient to ensure the continued expeditious
implementation of municipal combined sewer overflow and
sanitary sewer overflow controls nationwide.