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1996 Amendments to the Safe Drinking Water Act -
Public Law 104-182 104th Congress

[DOCID: f:publ182.104]





[[Page 110 STAT. 1613]]





                                                                     


Public Law 104-182


104th Congress





                                 An Act








 


  To reauthorize and amend title XIV of the Public Health Service Act 


   (commonly known as the ``Safe Drinking Water Act''), and for other 


             purposes. <<NOTE:  Aug. 6, 1996 -  [S. 1316]>> 





    Be it enacted by the Senate and House of Representatives of the 


United States of America in Congress <<NOTE: Safe Drinking Water Act 


Amendments of 1996. Inter-governmental relations. Environmental 


protection.>> assembled,





SECTION 1. SHORT TITLE; TABLE OF CONTENTS.





    (a) <<NOTE: 42 USC 201 note.>> Short Title.--This Act may be cited 


as the ``Safe Drinking Water Act Amendments of 1996''.





    (b) Table of Contents.--





Sec. 1. Short title; table of contents.


Sec. 2. References; effective date; disclaimer.


Sec. 3. Findings.





             TITLE I--AMENDMENTS TO SAFE DRINKING WATER ACT





Sec. 101. Definitions.


Sec. 102. General authority.


Sec. 103. Risk assessment, management, and communication.


Sec. 104. Standard-setting.


Sec. 105. Treatment technologies for small systems.


Sec. 106. Limited alternative to filtration.


Sec. 107. Ground water disinfection.


Sec. 108. Effective date for regulations.


Sec. 109. Arsenic, sulfate, and radon.


Sec. 110. Recycling of filter backwash.


Sec. 111. Technology and treatment techniques.


Sec. 112. State primacy.


Sec. 113. Enforcement; judicial review.


Sec. 114. Public notification.


Sec. 115. Variances.


Sec. 116. Small systems variances.


Sec. 117. Exemptions.


Sec. 118. Lead plumbing and pipes.


Sec. 119. Capacity development.


Sec. 120. Authorization of appropriations for certain ground water 


           programs.


Sec. 121. Amendments to section 1442.


Sec. 122. Technical assistance.


Sec. 123. Operator certification.


Sec. 124. Public water system supervision program.


Sec. 125. Monitoring and information gathering.


Sec. 126. Occurrence data base.


Sec. 127. Drinking Water Advisory Council.


Sec. 128. New York City watershed protection program.


Sec. 129. Federal agencies.


Sec. 130. State revolving loan funds.


Sec. 131. State ground water protection grants.


Sec. 132. Source water assessment.


Sec. 133. Source water petition program.


Sec. 134. Water conservation plan.


Sec. 135. Drinking water assistance to colonias.


Sec. 136. Estrogenic substances screening program.


Sec. 137. Drinking water studies.





                    TITLE II--DRINKING WATER RESEARCH





Sec. 201. Drinking water research authorization.





[[Page 110 STAT. 1614]]





Sec. 202. Scientific research review.


Sec. 203. National center for ground water research.





                   TITLE III--MISCELLANEOUS PROVISIONS





Sec. 301. Water return flows.


Sec. 302  Transfer of funds.


Sec. 303. Grants to Alaska to improve sanitation in rural and Native 


           villages.


Sec. 304. Sense of the Congress.


Sec. 305. Bottled drinking water standards.


Sec. 306. Washington Aqueduct.


Sec. 307. Wastewater assistance to colonias.


Sec. 308. Prevention and control of zebra mussel infestation of Lake 


           Champlain.





 TITLE IV--ADDITIONAL ASSISTANCE FOR WATER INFRASTRUCTURE AND WATERSHEDS





Sec. 401. National program.





                      TITLE V--CLERICAL AMENDMENTS





Sec. 501. Clerical amendments.





SEC. 2. REFERENCES; EFFECTIVE DATE; DISCLAIMER.





    (a) References to Safe Drinking Water Act.--Except as otherwise 


expressly provided, whenever in this Act an amendment or repeal is 


expressed in terms of an amendment to, or repeal of, a section or other 


provision, the reference shall be considered to be made to that section 


or other provision of title XIV of the Public Health Service Act 


(commonly known as the ``Safe Drinking Water Act'') (42 U.S.C. 300f et 


seq.).


    (b) <<NOTE: 42 USC 300f note.>> Effective Date.--Except as otherwise 


specified in this Act or in the amendments made by this Act, this Act 


and the amendments made by this Act shall take effect on the date of 


enactment of this Act.





    (c) <<NOTE: 42 USC 300f note.>> Disclaimer.--Except for the 


provisions of section 302 (relating to transfers of funds), nothing in 


this Act or in any amendments made by this Act to title XIV of the 


Public Health Service Act (commonly known as the ``Safe Drinking Water 


Act'') or any other law shall be construed by the Administrator of the 


Environmental Protection Agency or the courts as affecting, modifying, 


expanding, changing, or altering--


            (1) the provisions of the Federal Water Pollution Control 


        Act;


            (2) the duties and responsibilities of the Administrator 


        under that Act; or


            (3) the regulation or control of point or nonpoint sources 


        of pollution discharged into waters covered by that Act.





The Administrator shall identify in the agency's annual budget all 


funding and full-time equivalents administering such title XIV 


separately from funding and staffing for the Federal Water Pollution 


Control Act.





SEC. 3. <<NOTE: 42 USC 300f note.>> FINDINGS.





    The Congress finds that--


            (1) safe drinking water is essential to the protection of 


        public health;


            (2) because the requirements of the Safe Drinking Water Act 


        (42 U.S.C. 300f et seq.) now exceed the financial and technical 


        capacity of some public water systems, especially many small 


        public water systems, the Federal Government needs to provide 


        assistance to communities to help the communities meet Federal 


        drinking water requirements;





[[Page 110 STAT. 1615]]





            (3) the Federal Government commits to maintaining and 


        improving its partnership with the States in the administration 


        and implementation of the Safe Drinking Water Act;


            (4) States play a central role in the implementation of safe 


        drinking water programs, and States need increased financial 


        resources and appropriate flexibility to ensure the prompt and 


        effective development and implementation of drinking water 


        programs;


            (5) the existing process for the assessment and selection of 


        additional drinking water contaminants needs to be revised and 


        improved to ensure that there is a sound scientific basis for 


        setting priorities in establishing drinking water regulations;


            (6) procedures for assessing the health effects of 


        contaminants establishing drinking water standards should be 


        revised to provide greater opportunity for public education and 


        participation;


            (7) in considering the appropriate level of regulation for 


        contaminants in drinking water, risk assessment, based on sound 


        and objective science, and benefit-cost analysis are important 


        analytical tools for improving the efficiency and effectiveness 


        of drinking water regulations to protect human health;


            (8) more effective protection of public health requires--


                    (A) a Federal commitment to set priorities that will 


                allow scarce Federal, State, and local resources to be 


                targeted toward the drinking water problems of greatest 


                public health concern;


                    (B) maximizing the value of the different and 


                complementary strengths and responsibilities of the 


                Federal and State governments in those States that have 


                primary enforcement responsibility for the Safe Drinking 


                Water Act; and


                    (C) prevention of drinking water contamination 


                through well-trained system operators, water systems 


                with adequate managerial, technical, and financial 


                capacity, and enhanced protection of source waters of 


                public water systems;


            (9) compliance with the requirements of the Safe Drinking 


        Water Act continues to be a concern at public water systems 


        experiencing technical and financial limitations, and Federal, 


        State, and local governments need more resources and more 


        effective authority to attain the objectives of the Safe 


        Drinking Water Act; and


            (10) consumers served by public water systems should be 


        provided with information on the source of the water they are 


        drinking and its quality and safety, as well as prompt 


        notification of any violation of drinking water regulations.





             TITLE I--AMENDMENTS TO SAFE DRINKING WATER ACT





SEC. 101. DEFINITIONS.





    (a) In General.--Section 1401 (42 U.S.C. 300f) is amended as 


follows:


            (1) In paragraph (1)--


                    (A) in subparagraph (D), by inserting ``accepted 


                methods for'' before ``quality control''; and





[[Page 110 STAT. 1616]]





                    (B) <<NOTE: Federal Register, publication.>> by 


                adding at the end the following: ``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) In paragraph (13)--


                    (A) by striking ``The'' and inserting ``(A) Except 


                as provided in subparagraph (B), the''; and


                    (B) by adding at the end the following:


            ``(B) For purposes of section 1452, the term `State' means 


        each of the 50 States, the District of Columbia, and the 


        Commonwealth of Puerto Rico.''.


            (3) In paragraph (14), by adding at the end the following: 


        ``For purposes of section 1452, 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))).''.


            (4) By adding at the end the following:


            ``(15) Community water system.--The term `community water 


        system' means a public water system that--


                    ``(A) serves at least 15 service connections used by 


                year-round residents of the area served by the system; 


                or


                    ``(B) regularly serves at least 25 year-round 


                residents.


            ``(16) Noncommunity water system.--The term `noncommunity 


        water system' means a public water system that is not a 


        community water system.''.





    (b) Public Water System.--


            (1) In general.--Section 1401(4) (42 U.S.C. 300f(4)) is 


        amended as follows:


                    (A) In the first sentence, by striking ``piped water 


                for human consumption'' and inserting ``water for human 


                consumption through pipes or other constructed 


                conveyances''.


                    (B) By redesignating subparagraphs (A) and (B) as 


                clauses (i) and (ii), respectively.


                    (C) By striking ``(4) The'' and inserting the 


                following:


            ``(4) Public water system.--


                    ``(A) In general.--The''; and


                    (D) by adding at the end the following:


                    ``(B) Connections.--


                          ``(i) In general.--For purposes of 


                      subparagraph (A), a connection to a system that 


                      delivers water by a constructed conveyance other 


                      than a pipe shall not be considered a connection, 


                      if--


                                    ``(I) the water is used exclusively 


                                for purposes other than residential uses 


                                (consisting of drinking, bathing, and 


                                cooking, or other similar uses);


                                    ``(II) the Administrator or the 


                                State (in the case of a State exercising 


                                primary enforcement responsibility for 


                                public water systems) determines that 


                                alternative water to achieve the 


                                equivalent level of public health 


                                protection provided by the applicable 


                                national primary drinking water 


                                regulation is provided for residential 


                                or similar uses for drinking and 


                                cooking; or





[[Page 110 STAT. 1617]]





                                    ``(III) the Administrator or the 


                                State (in the case of a State exercising 


                                primary enforcement responsibility for 


                                public water systems) determines that 


                                the water provided for residential or 


                                similar uses for drinking, cooking, and 


                                bathing is centrally treated or treated 


                                at the point of entry by the provider, a 


                                pass-through entity, or the user to 


                                achieve the equivalent level of 


                                protection provided by the applicable 


                                national primary drinking water 


                                regulations.


                          ``(ii) Irrigation districts.--An irrigation 


                      district in existence prior to May 18, 1994, that 


                      provides primarily agricultural service through a 


                      piped water system with only incidental 


                      residential or similar use shall not be considered 


                      to be a public water system if the system or the 


                      residential or similar users of the system comply 


                      with subclause (II) or (III) of clause (i).


                    ``(C) Transition period.--A water supplier that 


                would be a public water system only as a result of 


                modifications made to this paragraph by the Safe 


                Drinking Water Act Amendments of 1996 shall not be 


                considered a public water system for purposes of the Act 


                until the date that is two years after the date of 


                enactment of this subparagraph. If a water supplier does 


                not serve 15 service connections (as defined in 


                subparagraphs (A) and (B)) or 25 people at any time 


                after the conclusion of the 2-year period, the water 


                supplier shall not be considered a public water 


                system.''.


            (2) <<NOTE: 42 USC 300f note.>> GAO study.--The Comptroller 


        General of the United States shall undertake a study to--


                    (A) ascertain the numbers and locations of 


                individuals and households relying for their residential 


                water needs, including drinking, bathing, and cooking 


                (or other similar uses) on irrigation water systems, 


                mining water systems, industrial water systems, or other 


                water systems covered by section 1401(4)(B) of the Safe 


                Drinking Water Act that are not public water systems 


                subject to the Safe Drinking Water Act;


                    (B) determine the sources and costs and 


                affordability (to users and systems) of water used by 


                such populations for their residential water needs; and


                    (C) review State and water system compliance with 


                the exclusion provisions of section 1401(4)(B) of such 


                Act.


        The <<NOTE: Reports.>> Comptroller General shall submit a report 


        to the Congress within 3 years after the date of enactment of 


        this Act containing the results of such study.





SEC. 102. GENERAL AUTHORITY.





    (a) Standards.--Section 1412(b) (42 U.S.C. 300g-1(b)) is amended by 


striking ``(b)(1)'' and all that follows through the end of paragraph 


(3) and inserting the following:


    ``(b) Standards.--


            ``(1) Identification of contaminants for listing.--


                    ``(A) <<NOTE: Publication. Regulations.>> General 


                authority.--The Administrator shall, in accordance with 


                the procedures established by this subsection, publish a 


                maximum contaminant level goal and





[[Page 110 STAT. 1618]]





                promulgate a national primary drinking water regulation 


                for a contaminant (other than a contaminant referred to 


                in paragraph (2) for which a national primary drinking 


                water regulation has been promulgated as of the date of 


                enactment of the Safe Drinking Water Act Amendments of 


                1996) if the Administrator determines that--


                          ``(i) the contaminant may have an adverse 


                      effect on the health of persons;


                          ``(ii) the contaminant is known to occur or 


                      there is a substantial likelihood that the 


                      contaminant will occur in public water systems 


                      with a frequency and at levels of public health 


                      concern; and


                          ``(iii) in the sole judgment of the 


                      Administrator, regulation of such contaminant 


                      presents a meaningful opportunity for health risk 


                      reduction for persons served by public water 


                      systems.


                    ``(B) Regulation of unregulated contaminants.--


                          ``(i) <<NOTE: Publication.>> Listing of 


                      contaminants for consideration.--(I) Not later 


                      than 18 months after the date of enactment of the 


                      Safe Drinking Water Act Amendments of 1996 and 


                      every 5 years thereafter, the Administrator, after 


                      consultation with the scientific community, 


                      including the Science Advisory Board, after notice 


                      and opportunity for public comment, and after 


                      considering the occurrence data base established 


                      under section 1445(g), shall publish a list of 


                      contaminants which, at the time of publication, 


                      are not subject to any proposed or promulgated 


                      national primary drinking water regulation, which 


                      are known or anticipated to occur in public water 


                      systems, and which may require regulation under 


                      this title.


                          ``(II) The unregulated contaminants considered 


                      under subclause (I) shall include, but not be 


                      limited to, substances referred to in section 


                      101(14) of the Comprehensive Environmental 


                      Response, Compensation, and Liability Act of 1980, 


                      and substances registered as pesticides under the 


                      Federal Insecticide, Fungicide, and Rodenticide 


                      Act.


                          ``(III) The Administrator's decision whether 


                      or not to select an unregulated contaminant for a 


                      list under this clause shall not be subject to 


                      judicial review.


                          ``(ii) Determination to regulate.--(I) Not 


                      later than 5 years after the date of enactment of 


                      the Safe Drinking Water Act Amendments of 1996, 


                      and every 5 years thereafter, the Administrator 


                      shall, after notice of the preliminary 


                      determination and opportunity for public comment, 


                      for not fewer than 5 contaminants included on the 


                      list published under clause (i), make 


                      determinations of whether or not to regulate such 


                      contaminants.


                          ``(II) A determination to regulate a 


                      contaminant shall be based on findings that the 


                      criteria of clauses (i), (ii), and (iii) of 


                      subparagraph (A) are satisfied. Such findings 


                      shall be based on the best available public health 


                      information, including the occurrence data base 


                      established under section 1445(g).





[[Page 110 STAT. 1619]]





                          ``(III) The Administrator may make a 


                      determination to regulate a contaminant that does 


                      not appear on a list under clause (i) if the 


                      determination to regulate is made pursuant to 


                      subclause (II).


                          ``(IV) A determination under this clause not 


                      to regulate a contaminant shall be considered 


                      final agency action and subject to judicial 


                      review.


                          ``(iii) Review.--Each document setting forth 


                      the determination for a contaminant under clause 


                      (ii) shall be available for public comment at such 


                      time as the determination is published.


                    ``(C) Priorities.--In selecting unregulated 


                contaminants for consideration under subparagraph (B), 


                the Administrator shall select contaminants that present 


                the greatest public health concern. The Administrator, 


                in making such selection, shall take into consideration, 


                among other factors of public health concern, the effect 


                of such contaminants upon subgroups that comprise a 


                meaningful portion of the general population (such as 


                infants, children, pregnant women, the elderly, 


                individuals with a history of serious illness, or other 


                subpopulations) that are identifiable as being at 


                greater risk of adverse health effects due to exposure 


                to contaminants in drinking water than the general 


                population.


                    ``(D) Urgent threats to public health.--The 


                Administrator may promulgate an interim national primary 


                drinking water regulation for a contaminant without 


                making a determination for the contaminant under 


                paragraph (4)(C), or completing the analysis under 


                paragraph (3)(C), to address an urgent threat to public 


                health as determined by the Administrator after 


                consultation with and written response to any comments 


                provided by the Secretary of Health and Human Services, 


                acting through the director of the Centers for Disease 


                Control and Prevention or the director of the National 


                Institutes of Health. <<NOTE: Publication.>> A 


                determination for any contaminant in accordance with 


                paragraph (4)(C) subject to an interim regulation under 


                this subparagraph shall be issued, and a completed 


                analysis meeting the requirements of paragraph (3)(C) 


                shall be published, not later than 3 years after the 


                date on which the regulation is promulgated and the 


                regulation shall be repromulgated, or revised if 


                appropriate, not later than 5 years after that date.


                    ``(E) <<NOTE: Publication.>> Regulation.--For each 


                contaminant that the Administrator determines to 


                regulate under subparagraph (B), the Administrator shall 


                publish maximum contaminant level goals and promulgate, 


                by rule, national primary drinking water regulations 


                under this subsection. The Administrator shall propose 


                the maximum contaminant level goal and national primary 


                drinking water regulation for a contaminant not later 


                than 24 months after the determination to regulate under 


                subparagraph (B), and may publish such proposed 


                regulation concurrent with the determination to 


                regulate. The Administrator shall publish a maximum 


                contaminant level goal and promulgate a national primary 


                drinking water regulation within 18 months after the 


                proposal thereof. <<NOTE: Federal Register, 


                publication.>> The Administrator, by notice in the





[[Page 110 STAT. 1620]]





                Federal Register, may extend the deadline for such 


                promulgation for up to 9 months.


                    ``(F) Health advisories and other actions.--The 


                Administrator may publish health advisories (which are 


                not regulations) or take other appropriate actions for 


                contaminants not subject to any national primary 


                drinking water regulation.


            ``(2) Schedules and deadlines.--


                    ``(A) <<NOTE: Publication. Regulations.>> In 


                general.--In the case of the contaminants listed in the 


                Advance Notice of Proposed Rulemaking published in 


                volume 47, Federal Register, page 9352, and in volume 


                48, Federal Register, page 45502, the Administrator 


                shall publish maximum contaminant level goals and 


                promulgate national primary drinking water regulations--


                          ``(i) not later than 1 year after June 19, 


                      1986, for not fewer than 9 of the listed 


                      contaminants;


                          ``(ii) not later than 2 years after June 19, 


                      1986, for not fewer than 40 of the listed 


                      contaminants; and


                          ``(iii) not later than 3 years after June 19, 


                      1986, for the remainder of the listed 


                      contaminants.


                    ``(B) Substitution of contaminants.--If the 


                Administrator identifies a drinking water contaminant 


                the regulation of which, in the judgment of the 


                Administrator, is more likely to be protective of public 


                health (taking into account the schedule for regulation 


                under subparagraph (A)) than a contaminant referred to 


                in subparagraph (A), the Administrator may publish a 


                maximum contaminant level goal and promulgate a national 


                primary drinking water regulation for the identified 


                contaminant in lieu of regulating the contaminant 


                referred to in subparagraph (A). Substitutions may be 


                made for not more than 7 contaminants referred to in 


                subparagraph (A). Regulation of a contaminant identified 


                under this subparagraph shall be in accordance with the 


                schedule applicable to the contaminant for which the 


                substitution is made.


                    ``(C) <<NOTE: Rules.>> Disinfectants and 


                disinfection byproducts.--The Administrator shall 


                promulgate an Interim Enhanced Surface Water Treatment 


                Rule, a Final Enhanced Surface Water Treatment Rule, a 


                Stage I Disinfectants and Disinfection Byproducts Rule, 


                and a Stage II Disinfectants and Disinfection Byproducts 


                Rule in accordance with the schedule published in volume 


                59, Federal Register, page 6361 (February 10, 1994), in 


                table III.13 of the proposed Information Collection 


                Rule. If a delay occurs with respect to the promulgation 


                of any rule in the schedule referred to in this 


                subparagraph, all subsequent rules shall be completed as 


                expeditiously as practicable but no later than a revised 


                date that reflects the interval or intervals for the 


                rules in the schedule.''.





    (b) <<NOTE: 42 USC 300g-1 note.>> Applicability of Prior 


Requirements.--The requirements of subparagraphs (C) and (D) of section 


1412(b)(3) of the Safe Drinking Water Act as in effect before the date 


of enactment of this Act, and any obligation to promulgate regulations 


pursuant to such subparagraphs not promulgated as of the date of 


enactment of this Act, are superseded by the amendments made by 


subsection (a).





[[Page 110 STAT. 1621]]





    (c) Conforming Amendments.--(1) Section 1415(d) (42 U.S.C. 300g-


4(d)) is amended by striking ``1412(b)(3)'' and inserting ``1412(b)''.


    (2) Section 1412(a)(3) (42 U.S.C. 300g-1(a)(3)) is amended by 


striking ``paragraph (1), (2), or (3) of'' in each place it appears.





SEC. 103. RISK ASSESSMENT, MANAGEMENT, AND COMMUNICATION.





    Section 1412(b) (42 U.S.C. 300g-1(b)) is amended by inserting after 


paragraph (2) the following:


            ``(3) Risk assessment, management, and communication.--


                    ``(A) Use of science in decisionmaking.--In carrying 


                out this section, and, to the degree that an Agency 


                action is based on science, the Administrator shall 


                use--


                          ``(i) the best available, peer-reviewed 


                      science and supporting studies conducted in 


                      accordance with sound and objective scientific 


                      practices; and


                          ``(ii) data collected by accepted methods or 


                      best available methods (if the reliability of the 


                      method and the nature of the decision justifies 


                      use of the data).


                    ``(B) Public information.--In carrying out this 


                section, the Administrator shall ensure that the 


                presentation of information on public health effects is 


                comprehensive, informative, and understandable. The 


                Administrator shall, in a document made available to the 


                public in support of a regulation promulgated under this 


                section, specify, to the extent practicable--


                          ``(i) each population addressed by any 


                      estimate of public health effects;


                          ``(ii) the expected risk or central estimate 


                      of risk for the specific populations;


                          ``(iii) each appropriate upper-bound or lower-


                      bound estimate of risk;


                          ``(iv) each significant uncertainty identified 


                      in the process of the assessment of public health 


                      effects and studies that would assist in resolving 


                      the uncertainty; and


                          ``(v) peer-reviewed studies known to the 


                      Administrator that support, are directly relevant 


                      to, or fail to support any estimate of public 


                      health effects and the methodology used to 


                      reconcile inconsistencies in the scientific data.


                    ``(C) Health risk reduction and cost analysis.--


                          ``(i) <<NOTE: Publication.>> Maximum 


                      contaminant levels.--When proposing any national 


                      primary drinking water regulation that includes a 


                      maximum contaminant level, the Administrator 


                      shall, with respect to a maximum contaminant level 


                      that is being considered in accordance with 


                      paragraph (4) and each alternative maximum 


                      contaminant level that is being considered 


                      pursuant to paragraph (5) or (6)(A), publish, seek 


                      public comment on, and use for the purposes of 


                      paragraphs (4), (5), and (6) an analysis of each 


                      of the following:


                                    ``(I) Quantifiable and 


                                nonquantifiable health risk reduction 


                                benefits for which there is a factual 


                                basis in the rulemaking record to 


                                conclude that





[[Page 110 STAT. 1622]]





                                such benefits are likely to occur as the 


                                result of treatment to comply with each 


                                level.


                                    ``(II) Quantifiable and 


                                nonquantifiable health risk reduction 


                                benefits for which there is a factual 


                                basis in the rulemaking record to 


                                conclude that such benefits are likely 


                                to occur from reductions in co-occurring 


                                contaminants that may be attributed 


                                solely to compliance with the maximum 


                                contaminant level, excluding benefits 


                                resulting from compliance with other 


                                proposed or promulgated regulations.


                                    ``(III) Quantifiable and 


                                nonquantifiable costs for which there is 


                                a factual basis in the rulemaking record 


                                to conclude that such costs are likely 


                                to occur solely as a result of 


                                compliance with the maximum contaminant 


                                level, including monitoring, treatment, 


                                and other costs and excluding costs 


                                resulting from compliance with other 


                                proposed or promulgated regulations.


                                    ``(IV) The incremental costs and 


                                benefits associated with each 


                                alternative maximum contaminant level 


                                considered.


                                    ``(V) The effects of the contaminant 


                                on the general population and on groups 


                                within the general population such as 


                                infants, children, pregnant women, the 


                                elderly, individuals with a history of 


                                serious illness, or other subpopulations 


                                that are identified as likely to be at 


                                greater risk of adverse health effects 


                                due to exposure to contaminants in 


                                drinking water than the general 


                                population.


                                    ``(VI) Any increased health risk 


                                that may occur as the result of 


                                compliance, including risks associated 


                                with co-occurring contaminants.


                                    ``(VII) Other relevant factors, 


                                including the quality and extent of the 


                                information, the uncertainties in the 


                                analysis supporting subclauses (I) 


                                through (VI), and factors with respect 


                                to the degree and nature of the risk.


                          ``(ii) <<NOTE: Publication.>> Treatment 


                      techniques.--When proposing a national primary 


                      drinking water regulation that includes a 


                      treatment technique in accordance with paragraph 


                      (7)(A), the Administrator shall publish and seek 


                      public comment on an analysis of the health risk 


                      reduction benefits and costs likely to be 


                      experienced as the result of compliance with the 


                      treatment technique and alternative treatment 


                      techniques that are being considered, taking into 


                      account, as appropriate, the factors described in 


                      clause (i).


                          ``(iii) Approaches to measure and value 


                      benefits.--The Administrator may identify valid 


                      approaches for the measurement and valuation of 


                      benefits under this subparagraph, including 


                      approaches to identify consumer willingness to pay 


                      for reductions in health risks from drinking water 


                      contaminants.


                          ``(iv) Authorization.--There are authorized to 


                      be appropriated to the Administrator, acting 


                      through the Office of Ground Water and Drinking 


                      Water, to conduct





[[Page 110 STAT. 1623]]





                      studies, assessments, and analyses in support of 


                      regulations or the development of methods, 


                      $35,000,000 for each of fiscal years 1996 through 


                      2003.''.





SEC. 104. STANDARD-SETTING.





    (a) In General.--Section 1412(b) (42 U.S.C. 300g-1(b)) is amended as 


follows:


            (1) In paragraph (4)--


                    (A) by striking ``(4) Each'' and inserting the 


                following:


            ``(4) Goals and standards.--


                    ``(A) Maximum contaminant level goals.--Each'';


                    (B) in the last sentence--


                          (i) by striking ``Each national'' and 


                      inserting the following:


                    ``(B) Maximum contaminant levels.-- Except as 


                provided in paragraphs (5) and (6), each national''; and


                          (ii) by striking ``maximum level'' and 


                      inserting ``maximum contaminant level''; and


                    (C) by adding at the end the following:


                    ``(C) <<NOTE: Publication.>> Determination.--At the 


                time the Administrator proposes a national primary 


                drinking water regulation under this paragraph, the 


                Administrator shall publish a determination as to 


                whether the benefits of the maximum contaminant level 


                justify, or do not justify, the costs based on the 


                analysis conducted under paragraph (3)(C).''.


            (2) By striking ``(5) For the'' and inserting the following:


                    ``(D) Definition of feasible.--For the''.


            (3) In the second sentence of paragraph (4)(D) (as so 


        designated), by striking ``paragraph (4)'' and inserting ``this 


        paragraph''.


            (4) By striking ``(6) Each national'' and inserting the 


        following:


                    ``(E) Feasible technologies.--


                          ``(i) In general.--Each national''.


            (5) In paragraph (4)(E)(i) (as so designated), by striking 


        ``this paragraph'' and inserting ``this subsection''.


            (6) By inserting after paragraph (4) (as so amended) the 


        following:


            ``(5) Additional health risk considerations.--


                    ``(A) In general.--Notwithstanding paragraph (4), 


                the Administrator may establish a maximum contaminant 


                level for a contaminant at a level other than the 


                feasible level, if the technology, treatment techniques, 


                and other means used to determine the feasible level 


                would result in an increase in the health risk from 


                drinking water by--


                          ``(i) increasing the concentration of other 


                      contaminants in drinking water; or


                          ``(ii) interfering with the efficacy of 


                      drinking water treatment techniques or processes 


                      that are used to comply with other national 


                      primary drinking water regulations.


                    ``(B) Establishment of level.--If the Administrator 


                establishes a maximum contaminant level or levels or 


                requires the use of treatment techniques for any 


                contaminant or contaminants pursuant to the authority of 


                this paragraph--





[[Page 110 STAT. 1624]]





                          ``(i) the level or levels or treatment 


                      techniques shall minimize the overall risk of 


                      adverse health effects by balancing the risk from 


                      the contaminant and the risk from other 


                      contaminants the concentrations of which may be 


                      affected by the use of a treatment technique or 


                      process that would be employed to attain the 


                      maximum contaminant level or levels; and


                          ``(ii) the combination of technology, 


                      treatment techniques, or other means required to 


                      meet the level or levels shall not be more 


                      stringent than is feasible (as defined in 


                      paragraph (4)(D)).


            ``(6) Additional health risk reduction and cost 


        considerations.--


                    ``(A) In general.--Notwithstanding paragraph (4), if 


                the Administrator determines based on an analysis 


                conducted under paragraph (3)(C) that the benefits of a 


                maximum contaminant level promulgated in accordance with 


                paragraph (4) would not justify the costs of complying 


                with the level, the Administrator may, after notice and 


                opportunity for public comment, promulgate a maximum 


                contaminant level for the contaminant that maximizes 


                health risk reduction benefits at a cost that is 


                justified by the benefits.


                    ``(B) Exception.--The Administrator shall not use 


                the authority of this paragraph to promulgate a maximum 


                contaminant level for a contaminant, if the benefits of 


                compliance with a national primary drinking water 


                regulation for the contaminant that would be promulgated 


                in accordance with paragraph (4) experienced by--


                          ``(i) persons served by large public water 


                      systems; and


                          ``(ii) persons served by such other systems as 


                      are unlikely, based on information provided by the 


                      States, to receive a variance under section 


                      1415(e) (relating to small system variances);


                would justify the costs to the systems of complying with 


                the regulation. This subparagraph shall not apply if the 


                contaminant is found almost exclusively in small systems 


                eligible under section 1415(e) for a small system 


                variance.


                    ``(C) Disinfectants and disinfection byproducts.--


                The Administrator may not use the authority of this 


                paragraph to establish a maximum contaminant level in a 


                Stage I or Stage II national primary drinking water 


                regulation (as described in paragraph (2)(C)) for 


                contaminants that are disinfectants or disinfection 


                byproducts, or to establish a maximum contaminant level 


                or treatment technique requirement for the control of 


                cryptosporidium. The authority of this paragraph may be 


                used to establish regulations for the use of 


                disinfection by systems relying on ground water sources 


                as required by paragraph (8).


                    ``(D) Judicial review.--A determination by the 


                Administrator that the benefits of a maximum contaminant 


                level or treatment requirement justify or do not justify 


                the costs of complying with the level shall be reviewed 


                by the court pursuant to section 1448 only as part of a 


                review of a final national primary drinking water 


                regulation that has been promulgated based on the 


                determination





[[Page 110 STAT. 1625]]





                and shall not be set aside by the court under that 


                section unless the court finds that the determination is 


                arbitrary and capricious.''.





    (b) <<NOTE: 42 USC 300g-1 note.>> Disinfectants and Disinfection 


Byproducts.--The Administrator of the Environmental Protection Agency 


may use the authority of section 1412(b)(5) of the Safe Drinking Water 


Act (as amended by this Act) to promulgate the Stage I and Stage II 


Disinfectants and Disinfection Byproducts Rules as proposed in volume 


59, Federal Register, page 38668 (July 29, 1994). The considerations 


used in the development of the July 29, 1994, proposed national primary 


drinking water regulation on disinfectants and disinfection byproducts 


shall be treated as consistent with such section 1412(b)(5) for purposes 


of such Stage I and Stage II rules.





    (c) Review of Standards.--Section 1412(b)(9) (42 U.S.C. 300g-


1(b)(9)) is amended to read as follows:


            ``(9) Review and revision.--The Administrator shall, not 


        less often than every 6 years, review and revise, as 


        appropriate, each national primary drinking water regulation 


        promulgated under this title. Any revision of a national primary 


        drinking water regulation shall be promulgated in accordance 


        with this section, except that each revision shall maintain, or 


        provide for greater, protection of the health of persons.''.





SEC. 105. TREATMENT TECHNOLOGIES FOR SMALL SYSTEMS.





    Section 1412(b)(4)(E) (42 U.S.C. 300g-1(b)(4)(E)) is amended by 


adding at the end the following:


                          ``(ii) List of technologies for small 


                      systems.--The Administrator shall include in the 


                      list any technology, treatment technique, or other 


                      means that is affordable, as determined by the 


                      Administrator in consultation with the States, for 


                      small public water systems serving--


                                    ``(I) a population of 10,000 or 


                                fewer but more than 3,300;


                                    ``(II) a population of 3,300 or 


                                fewer but more than 500; and


                                    ``(III) a population of 500 or fewer 


                                but more than 25;


                      and that achieves compliance with the maximum 


                      contaminant level or treatment technique, 


                      including packaged or modular systems and point-


                      of-entry or point-of-use treatment units. Point-


                      of-entry and point-of-use treatment units shall be 


                      owned, controlled and maintained by the public 


                      water system or by a person under contract with 


                      the public water system to ensure proper operation 


                      and maintenance and compliance with the maximum 


                      contaminant level or treatment technique and 


                      equipped with mechanical warnings to ensure that 


                      customers are automatically notified of 


                      operational problems. The Administrator shall not 


                      include in the list any point-of-use treatment 


                      technology, treatment technique, or other means to 


                      achieve compliance with a maximum contaminant 


                      level or treatment technique requirement for a 


                      microbial contaminant (or an indicator of a 


                      microbial contaminant). If the American National 


                      Standards Institute





[[Page 110 STAT. 1626]]





                      has issued product standards applicable to a 


                      specific type of point-of-entry or point-of-use 


                      treatment unit, individual units of that type 


                      shall not be accepted for compliance with a 


                      maximum contaminant level or treatment technique 


                      requirement unless they are independently 


                      certified in accordance with such standards. In 


                      listing any technology, treatment technique, or 


                      other means pursuant to this clause, the 


                      Administrator shall consider the quality of the 


                      source water to be treated.


                          ``(iii) List of technologies that achieve 


                      compliance.--Except as provided in clause (v), not 


                      later than 2 years after the date of enactment of 


                      this clause and after consultation with the 


                      States, the Administrator shall issue a list of 


                      technologies that achieve compliance with the 


                      maximum contaminant level or treatment technique 


                      for each category of public water systems 


                      described in subclauses (I), (II), and (III) of 


                      clause (ii) for each national primary drinking 


                      water regulation promulgated prior to the date of 


                      enactment of this paragraph.


                          ``(iv) Additional technologies.--The 


                      Administrator may, at any time after a national 


                      primary drinking water regulation has been 


                      promulgated, supplement the list of technologies 


                      describing additional or new or innovative 


                      treatment technologies that meet the requirements 


                      of this paragraph for categories of small public 


                      water systems described in subclauses (I), (II), 


                      and (III) of clause (ii) that are subject to the 


                      regulation.


                          ``(v) <<NOTE: Records.>> Technologies that 


                      meet surface water treatment rule.--Within one 


                      year after the date of enactment of this clause, 


                      the Administrator shall list technologies that 


                      meet the Surface Water Treatment Rule for each 


                      category of public water systems described in 


                      subclauses (I), (II), and (III) of clause (ii).''.





SEC. 106. LIMITED ALTERNATIVE TO FILTRATION.





    Section 1412(b)(7)(C) (42 U.S.C. 300g-1(b)(7)(C)) is amended by 


adding the following after clause (iv):


    ``(v) As an additional alternative to the regulations promulgated 


pursuant to clauses (i) and (iii), including the criteria for avoiding 


filtration contained in 40 CFR 141.71, a State exercising primary 


enforcement responsibility for public water systems may, on a case-by-


case basis, and after notice and opportunity for public comment, 


establish treatment requirements as an alternative to filtration in the 


case of systems having uninhabited, undeveloped watersheds in 


consolidated ownership, and having control over access to, and 


activities in, those watersheds, if the State determines (and the 


Administrator concurs) that the quality of the source water and the 


alternative treatment requirements established by the State ensure 


greater removal or inactivation efficiencies of pathogenic organisms for 


which national primary drinking water regulations have been promulgated 


or that are of public health concern than would be achieved by the 


combination of filtration and chlorine disinfection (in compliance with 


this section).''.





[[Page 110 STAT. 1627]]





SEC. 107. <<NOTE: Regulations.>> GROUND WATER DISINFECTION.





    Paragraph (8) of section 1412(b) (42 U.S.C. 300g-1(b)(8)) is amended 


by moving the margins of such paragraph 2 ems to the right and by 


striking the first sentence and inserting the following: 


``Disinfection.--At any time after the end of the 3-year period that 


begins on the date of enactment of the Safe Drinking Water Act 


Amendments of 1996, but not later than the date on which the 


Administrator promulgates a Stage II rulemaking for disinfectants and 


disinfection byproducts (as described in paragraph (2)(C)), the 


Administrator shall also promulgate national primary drinking water 


regulations requiring disinfection as a treatment technique for all 


public water systems, including surface water systems and, as necessary, 


ground water systems. After consultation with the States, the 


Administrator shall (as part of the regulations) promulgate criteria 


that the Administrator, or a State that has primary enforcement 


responsibility under section 1413, shall apply to determine whether 


disinfection shall be required as a treatment technique for any public 


water system served by ground water.''.





SEC. 108. EFFECTIVE DATE FOR REGULATIONS.





    Section 1412(b)(10) (42 U.S.C. 300g-1(b)(10)) is amended to read as 


follows:


            ``(10) Effective date.--A national primary drinking water 


        regulation promulgated under this section (and any amendment 


        thereto) shall take effect on the date that is 3 years after the 


        date on which the regulation is promulgated unless the 


        Administrator determines that an earlier date is practicable, 


        except that the Administrator, or a State (in the case of an 


        individual system), may allow up to 2 additional years to comply 


        with a maximum contaminant level or treatment technique if the 


        Administrator or State (in the case of an individual system) 


        determines that additional time is necessary for capital 


        improvements.''.





SEC. 109. ARSENIC, SULFATE, AND RADON.





    (a) Arsenic and Sulfate.--Section 1412(b) (42 U.S.C. 300g-1(b)) is 


amended by inserting after paragraph (11) the following:


            ``(12) Certain contaminants.--


                    ``(A) Arsenic.--


                          ``(i) Schedule and standard.--Notwithstanding 


                      the deadlines set forth in paragraph (1), the 


                      Administrator shall promulgate a national primary 


                      drinking water regulation for arsenic pursuant to 


                      this subsection, in accordance with the schedule 


                      established by this paragraph.


                          ``(ii) Study plan.--Not later than 180 days 


                      after the date of enactment of this paragraph, the 


                      Administrator shall develop a comprehensive plan 


                      for study in support of drinking water rulemaking 


                      to reduce the uncertainty in assessing health 


                      risks associated with exposure to low levels of 


                      arsenic. In conducting such study, the 


                      Administrator shall consult with the National 


                      Academy of Sciences, other Federal agencies, and 


                      interested public and private entities.


                          ``(iii) Cooperative agreements.--In carrying 


                      out the study plan, the Administrator may enter 


                      into cooperative agreements with other Federal 


                      agencies,





[[Page 110 STAT. 1628]]





                      State and local governments, and other interested 


                      public and private entities.


                          ``(iv) Proposed regulations.--The 


                      Administrator shall propose a national primary 


                      drinking water regulation for arsenic not later 


                      than January 1, 2000.


                          ``(v) Final regulations.--Not later than 


                      January 1, 2001, after notice and opportunity for 


                      public comment, the Administrator shall promulgate 


                      a national primary drinking water regulation for 


                      arsenic.


                          ``(vi) Authorization.--There are authorized to 


                      be appropriated $2,500,000 for each of fiscal 


                      years 1997 through 2000 for the studies required 


                      by this paragraph.


                    ``(B) Sulfate.--


                          ``(i) Additional study.--Prior to promulgating 


                      a national primary drinking water regulation for 


                      sulfate, the Administrator and the Director of the 


                      Centers for Disease Control and Prevention shall 


                      jointly conduct an additional study to establish a 


                      reliable dose-response relationship for the 


                      adverse human health effects that may result from 


                      exposure to sulfate in drinking water, including 


                      the health effects that may be experienced by 


                      groups within the general population (including 


                      infants and travelers) that are potentially at 


                      greater risk of adverse health effects as the 


                      result of such exposure. The study shall be 


                      conducted in consultation with interested States, 


                      shall be based on the best available, peer-


                      reviewed science and supporting studies conducted 


                      in accordance with sound and objective scientific 


                      practices, and shall be completed not later than 


                      30 months after the date of enactment of the Safe 


                      Drinking Water Act Amendments of 1996.


                    ``(ii) Determination.--The Administrator shall 


                include sulfate among the 5 or more contaminants for 


                which a determination is made pursuant to paragraph 


                (3)(B) not later than 5 years after the date of 


                enactment of the Safe Drinking Water Act Amendments of 


                1996.


                    ``(iii) Proposed and final rule.--Notwithstanding 


                the deadlines set forth in paragraph (2), the 


                Administrator may, pursuant to the authorities of this 


                subsection and after notice and opportunity for public 


                comment, promulgate a final national primary drinking 


                water regulation for sulfate. Any such regulation shall 


                include requirements for public notification and options 


                for the provision of alternative water supplies to 


                populations at risk as a means of complying with the 


                regulation in lieu of a best available treatment 


                technology or other means.''.





    (b) Radon.--Section 1412(b) (42 U.S.C. 300g-1(b)) is amended by 


inserting after paragraph (12) the following:


            ``(13) Radon in drinking water.--


                    ``(A) National primary drinking water regulation.--


                Notwithstanding paragraph (2), the Administrator shall 


                withdraw any national primary drinking water regulation 


                for radon proposed prior to the date of enactment of 


                this paragraph and shall propose and promulgate a 


                regulation for radon under this section, as amended by 


                the Safe Drinking Water Act Amendments of 1996.





[[Page 110 STAT. 1629]]





                    ``(B) Risk assessment and studies.--


                          ``(i) Assessment by nas.--Prior to proposing a 


                      national primary drinking water regulation for 


                      radon, the Administrator shall arrange for the 


                      National Academy of Sciences to prepare a risk 


                      assessment for radon in drinking water using the 


                      best available science in accordance with the 


                      requirements of paragraph (3). The risk assessment 


                      shall consider each of the risks associated with 


                      exposure to radon from drinking water and consider 


                      studies on the health effects of radon at levels 


                      and under conditions likely to be experienced 


                      through residential exposure. The risk assessment 


                      shall be peer-reviewed.


                          ``(ii) Study of other measures.--The 


                      Administrator shall arrange for the National 


                      Academy of Sciences to prepare an assessment of 


                      the health risk reduction benefits associated with 


                      various mitigation measures to reduce radon levels 


                      in indoor air. The assessment may be conducted as 


                      part of the risk assessment authorized by clause 


                      (i) and shall be used by the Administrator to 


                      prepare the guidance and approve State programs 


                      under subparagraph (G).


                          ``(iii) <<NOTE: Contracts.>> Other 


                      organization.--If the National Academy of Sciences 


                      declines to prepare the risk assessment or studies 


                      required by this subparagraph, the Administrator 


                      shall enter into a contract or cooperative 


                      agreement with another independent, scientific 


                      organization to prepare such assessments or 


                      studies.


                    ``(C) <<NOTE: Publication.>> Health risk reduction 


                and cost analysis.--Not later than 30 months after the 


                date of enactment of this paragraph, the Administrator 


                shall publish, and seek public comment on, a health risk 


                reduction and cost analysis meeting the requirements of 


                paragraph (3)(C) for potential maximum contaminant 


                levels that are being considered for radon in drinking 


                water. The Administrator shall include a response to all 


                significant public comments received on the analysis 


                with the preamble for the proposed rule published under 


                subparagraph (D).


                    ``(D) Proposed regulation.--Not later than 36 months 


                after the date of enactment of this paragraph, the 


                Administrator shall propose a maximum contaminant level 


                goal and a national primary drinking water regulation 


                for radon pursuant to this section.


                    ``(E) Final regulation.--Not later than 12 months 


                after the date of the proposal under subparagraph (D), 


                the Administrator shall publish a maximum contaminant 


                level goal and promulgate a national primary drinking 


                water regulation for radon pursuant to this section 


                based on the risk assessment prepared pursuant to 


                subparagraph (B) and the health risk reduction and cost 


                analysis published pursuant to subparagraph (C). In 


                considering the risk assessment and the health risk 


                reduction and cost analysis in connection with the 


                promulgation of such a standard, the Administrator shall 


                take into account the costs and benefits of control 


                programs for radon from other sources.





[[Page 110 STAT. 1630]]





                    ``(F) <<NOTE: Regulations.>> Alternative maximum 


                contaminant level.--If the maximum contaminant level for 


                radon in drinking water promulgated pursuant to 


                subparagraph (E) is more stringent than necessary to 


                reduce the contribution to radon in indoor air from 


                drinking water to a concentration that is equivalent to 


                the national average concentration of radon in outdoor 


                air, the Administrator shall, simultaneously with the 


                promulgation of such level, promulgate an alternative 


                maximum contaminant level for radon that would result in 


                a contribution of radon from drinking water to radon 


                levels in indoor air equivalent to the national average 


                concentration of radon in outdoor 


                air. <<NOTE: Publication. Guidelines.>> If the 


                Administrator promulgates an alternative maximum 


                contaminant level under this subparagraph, the 


                Administrator shall, after notice and opportunity for 


                public comment and in consultation with the States, 


                publish guidelines for State programs, including 


                criteria for multimedia measures to mitigate radon 


                levels in indoor air, to be used by the States in 


                preparing programs under subparagraph (G). The 


                guidelines shall take into account data from existing 


                radon mitigation programs and the assessment of 


                mitigation measures prepared under subparagraph (B).


                    ``(G) Multimedia radon mitigation programs.--


                          ``(i) In general.--A State may develop and 


                      submit a multimedia program to mitigate radon 


                      levels in indoor air for approval by the 


                      Administrator under this subparagraph. If, after 


                      notice and the opportunity for public comment, 


                      such program is approved by the Administrator, 


                      public water systems in the State may comply with 


                      the alternative maximum contaminant level 


                      promulgated under subparagraph (F) in lieu of the 


                      maximum contaminant level in the national primary 


                      drinking water regulation promulgated under 


                      subparagraph (E).


                          ``(ii) Elements of programs.--State programs 


                      may rely on a variety of mitigation measures 


                      including public education, testing, training, 


                      technical assistance, remediation grant and loan 


                      or incentive programs, or other regulatory or 


                      nonregulatory measures. The effectiveness of 


                      elements in State programs shall be evaluated by 


                      the Administrator based on the assessment prepared 


                      by the National Academy of Sciences under 


                      subparagraph (B) and the guidelines published by 


                      the Administrator under subparagraph (F).


                          ``(iii) Approval.--The Administrator shall 


                      approve a State program submitted under this 


                      paragraph if the health risk reduction benefits 


                      expected to be achieved by the program are equal 


                      to or greater than the health risk reduction 


                      benefits that would be achieved if each public 


                      water system in the State complied with the 


                      maximum contaminant level promulgated under 


                      subparagraph (E). The Administrator shall approve 


                      or disapprove a program submitted under this 


                      paragraph within 180 days of receipt. A program 


                      that is not disapproved during such period shall 


                      be deemed approved. A program that is disapproved 


                      may be modi





[[Page 110 STAT. 1631]]





                      fied to address the objections of the 


                      Administrator and be resubmitted for approval.


                          ``(iv) Review.--The Administrator shall 


                      periodically, but not less often than every 5 


                      years, review each multimedia mitigation program 


                      approved under this subparagraph to determine 


                      whether it continues to meet the requirements of 


                      clause (iii) and shall, after written notice to 


                      the State and an opportunity for the State to 


                      correct any deficiency in the program, withdraw 


                      approval of programs that no longer comply with 


                      such requirements.


                          ``(v) Extension.--If, within 90 days after the 


                      promulgation of an alternative maximum contaminant 


                      level under subparagraph (F), the Governor of a 


                      State submits a letter to the Administrator 


                      committing to develop a multimedia mitigation 


                      program under this subparagraph, the effective 


                      date of the national primary drinking water 


                      regulation for radon in the State that would be 


                      applicable under paragraph (10) shall be extended 


                      for a period of 18 months.


                          ``(vi) Local programs.--In the event that a 


                      State chooses not to submit a multimedia 


                      mitigation program for approval under this 


                      subparagraph or has submitted a program that has 


                      been disapproved, any public water system in the 


                      State may submit a program for approval by the 


                      Administrator according to the same criteria, 


                      conditions, and approval process that would apply 


                      to a State program. The Administrator shall 


                      approve a multimedia mitigation program if the 


                      health risk reduction benefits expected to be 


                      achieved by the program are equal to or greater 


                      than the health risk reduction benefits that would 


                      result from compliance by the public water system 


                      with the maximum contaminant level for radon 


                      promulgated under subparagraph (E).''.





SEC. 110. <<NOTE: Regulations.>> RECYCLING OF FILTER BACKWASH.





    Section 1412(b) (42 U.S.C. 300g-1(b)) is amended by adding the 


following new paragraph after paragraph (13):


            ``(14) Recycling of filter backwash.--The Administrator 


        shall promulgate a regulation to govern the recycling of filter 


        backwash water within the treatment process of a public water 


        system. The Administrator shall promulgate such regulation not 


        later than 4 years after the date of enactment of the Safe 


        Drinking Water Act Amendments of 1996 unless such recycling has 


        been addressed by the Administrator's Enhanced Surface Water 


        Treatment Rule prior to such date.''.





SEC. 111. TECHNOLOGY AND TREATMENT TECHNIQUES.





    (a) Variance Technologies.--Section 1412(b) (42 U.S.C. 300g-1(b)) is 


amended by adding the following new paragraph after paragraph (14):


            ``(15) <<NOTE: Regulations.>> Variance technologies.--


                    ``(A) In general.--At the same time as the 


                Administrator promulgates a national primary drinking 


                water regulation for a contaminant pursuant to this 


                section, the Administrator shall issue guidance or 


                regulations describing the best treatment technologies, 


                treatment techniques,





[[Page 110 STAT. 1632]]





                or other means (referred to in this paragraph as 


                `variance technology') for the contaminant that the 


                Administrator finds, after examination for efficacy 


                under field conditions and not solely under laboratory 


                conditions, are available and affordable, as determined 


                by the Administrator in consultation with the States, 


                for public water systems of varying size, considering 


                the quality of the source water to be treated. The 


                Administrator shall identify such variance technologies 


                for public water systems serving--


                          ``(i) a population of 10,000 or fewer but more 


                      than 3,300;


                          ``(ii) a population of 3,300 or fewer but more 


                      than 500; and


                          ``(iii) a population of 500 or fewer but more 


                      than 25,


                if, considering the quality of the source water to be 


                treated, no treatment technology is listed for public 


                water systems of that size under paragraph (4)(E). 


                Variance technologies identified by the Administrator 


                pursuant to this paragraph may not achieve compliance 


                with the maximum contaminant level or treatment 


                technique requirement of such regulation, but shall 


                achieve the maximum reduction or inactivation efficiency 


                that is affordable considering the size of the system 


                and the quality of the source water. The guidance or 


                regulations shall not require the use of a technology 


                from a specific manufacturer or brand.


                    ``(B) Limitation.--The Administrator shall not 


                identify any variance technology under this paragraph, 


                unless the Administrator has determined, considering the 


                quality of the source water to be treated and the 


                expected useful life of the technology, that the 


                variance technology is protective of public health.


                    ``(C) Additional information.--The Administrator 


                shall include in the guidance or regulations identifying 


                variance technologies under this paragraph any 


                assumptions supporting the public health determination 


                referred to in subparagraph (B), where such assumptions 


                concern the public water system to which the technology 


                may be applied, or its source waters. The Administrator 


                shall provide any assumptions used in determining 


                affordability, taking into consideration the number of 


                persons served by such systems. The Administrator shall 


                provide as much reliable information as practicable on 


                performance, effectiveness, limitations, costs, and 


                other relevant factors including the applicability of 


                variance technology to waters from surface and 


                underground sources.


                    ``(D) Regulations and guidance.--Not later than 2 


                years after the date of enactment of this paragraph and 


                after consultation with the States, the Administrator 


                shall issue guidance or regulations under subparagraph 


                (A) for each national primary drinking water regulation 


                promulgated prior to the date of enactment of this 


                paragraph for which a variance may be granted under 


                section 1415(e). The Administrator may, at any time 


                after a national primary drinking water regulation has 


                been promulgated, issue guidance or regulations 


                describing additional variance technologies. The 


                Administrator shall, not less often than





[[Page 110 STAT. 1633]]





                every 7 years, or upon receipt of a petition supported 


                by substantial information, review variance technologies 


                identified under this paragraph. The Administrator shall 


                issue revised guidance or regulations if new or 


                innovative variance technologies become available that 


                meet the requirements of this paragraph and achieve an 


                equal or greater reduction or inactivation efficiency 


                than the variance technologies previously identified 


                under this subparagraph. No public water system shall be 


                required to replace a variance technology during the 


                useful life of the technology for the sole reason that a 


                more efficient variance technology has been listed under 


                this subparagraph.''.





    (b) Availability of Information on Small System Technologies.--


Section 1445 (42 U.S.C. 300j-4) is amended by adding the following new 


subsection after subsection (g):


    ``(h) Availability of Information on Small System Technologies.--For 


purposes of sections 1412(b)(4)(E) and 1415(e) (relating to small system 


variance program), the Administrator may request information on the 


characteristics of commercially available treatment systems and 


technologies, including the effectiveness and performance of the systems 


and technologies under various operating conditions. The Administrator 


may specify the form, content, and submission date of information to be 


submitted by manufacturers, States, and other interested persons for the 


purpose of considering the systems and technologies in the development 


of regulations or guidance under sections 1412(b)(4)(E) and 1415(e).''.





SEC. 112. STATE PRIMACY.





    (a) State Primary Enforcement Responsibility.--Section 1413 (42 


U.S.C. 300g-2) is amended as follows:


            (1) In subsection (a), by amending paragraph (1) to read as 


        follows:


            ``(1) has adopted drinking water regulations that are no 


        less stringent than the national primary drinking water 


        regulations promulgated by the Administrator under subsections 


        (a) and (b) of section 1412 not later than 2 years after the 


        date on which the regulations are promulgated by the 


        Administrator, except that the Administrator may provide for an 


        extension of not more than 2 years if, after submission and 


        review of appropriate, adequate documentation from the State, 


        the Administrator determines that the extension is necessary and 


        justified;''.


            (2) By adding at the end the following subsection:





    ``(c) Interim Primary Enforcement Authority.--A State that has 


primary enforcement authority under this section with respect to each 


existing national primary drinking water regulation shall be considered 


to have primary enforcement authority with respect to each new or 


revised national primary drinking water regulation during the period 


beginning on the effective date of a regulation adopted and submitted by 


the State with respect to the new or revised national primary drinking 


water regulation in accordance with subsection (b)(1) and ending at such 


time as the Administrator makes a determination under subsection 


(b)(2)(B) with respect to the regulation.''.


    (b) Emergency Plans.--Section 1413(a)(5) (42 U.S.C. 300g-2(a)(5)) is 


amended by inserting after ``emergency circumstances''





[[Page 110 STAT. 1634]]





the following: ``including earthquakes, floods, hurricanes, and other 


natural disasters, as appropriate''.





SEC. 113. ENFORCEMENT; JUDICIAL REVIEW.





    (a) In General.--Section 1414 (42 U.S.C. 300g-3) is amended as 


follows:


            (1) In subsection (a)--


                    (A) in paragraph (1)--


                          (i) in subparagraph (A)--


                                    (I) in clause (i), by striking ``any 


                                national primary drinking water 


                                regulation in effect under section 


                                1412'' and inserting ``any applicable 


                                requirement''; and


                                    (II) by striking ``with such 


                                regulation or requirement'' and 


                                inserting ``with the requirement''; and


                          (ii) in subparagraph (B), by striking 


                      ``regulation or'' and inserting ``applicable''; 


                      and


                    (B) by striking paragraph (2) and inserting the 


                following:


            ``(2) Enforcement in nonprimacy states.--


                    ``(A) In general.--If, on the basis of information 


                available to the Administrator, the Administrator finds, 


                with respect to a period in which a State does not have 


                primary enforcement responsibility for public water 


                systems, that a public water system in the State--


                          ``(i) for which a variance under section 1415 


                      or an exemption under section 1416 is not in 


                      effect, does not comply with any applicable 


                      requirement; or


                          ``(ii) for which a variance under section 1415 


                      or an exemption under section 1416 is in effect, 


                      does not comply with any schedule or other 


                      requirement imposed pursuant to the variance or 


                      exemption;


                the <<NOTE: Orders.>> Administrator shall issue an order 


                under subsection (g) requiring the public water system 


                to comply with the requirement, or commence a civil 


                action under subsection (b).


                    ``(B) Notice.--If the Administrator takes any action 


                pursuant to this paragraph, the Administrator shall 


                notify an appropriate local elected official, if any, 


                with jurisdiction over the public water system of the 


                action prior to the time that the action is taken.''.


            (2) In the first sentence of subsection (b), by striking ``a 


        national primary drinking water regulation'' and inserting ``any 


        applicable requirement''.


            (3) In subsection (g)--


                    (A) in paragraph (1), by striking ``regulation, 


                schedule, or other'' each place it appears and inserting 


                ``applicable'';


                    (B) in paragraph (2)--


                          (i) in the first sentence--


                                    (I) by striking ``effect until after 


                                notice and opportunity for public 


                                hearing and,'' and inserting 


                                ``effect,''; and


                                    (II) by striking ``proposed order'' 


                                and inserting ``order''; and


                          (ii) in the second sentence, by striking 


                      ``proposed to be''; and





[[Page 110 STAT. 1635]]





                    (C) in paragraph (3)--


                          (i) by striking subparagraph (B) and inserting 


                      the following:





    ``(B) In a case in which a civil penalty sought by the Administrator 


under this paragraph does not exceed $5,000, the penalty shall be 


assessed by the Administrator after notice and opportunity for a public 


hearing (unless the person against whom the penalty is assessed requests 


a hearing on the record in accordance with section 554 of title 5, 


United States Code). In a case in which a civil penalty sought by the 


Administrator under this paragraph exceeds $5,000, but does not exceed 


$25,000, the penalty shall be assessed by the Administrator after notice 


and opportunity for a hearing on the record in accordance with section 


554 of title 5, United States Code.''; and


                          (ii) in subparagraph (C), by striking 


                      ``paragraph exceeds $5,000'' and inserting 


                      ``subsection for a violation of an applicable 


                      requirement exceeds $25,000''.


            (4) By adding at the end the following:





    ``(h) Consolidation Incentive.--


            ``(1) In general.--An owner or operator of a public water 


        system may submit to the State in which the system is located 


        (if the State has primary enforcement responsibility under 


        section 1413) or to the Administrator (if the State does not 


        have primary enforcement responsibility) a plan (including 


        specific measures and schedules) for--


                    ``(A) the physical consolidation of the system with 


                1 or more other systems;


                    ``(B) the consolidation of significant management 


                and administrative functions of the system with 1 or 


                more other systems; or


                    ``(C) the transfer of ownership of the system that 


                may reasonably be expected to improve drinking water 


                quality.


            ``(2) Consequences of approval.--If the State or the 


        Administrator approves a plan pursuant to paragraph (1), no 


        enforcement action shall be taken pursuant to this part with 


        respect to a specific violation identified in the approved plan 


        prior to the date that is the earlier of the date on which 


        consolidation is completed according to the plan or the date 


        that is 2 years after the plan is approved.





    ``(i) Definition of Applicable Requirement.--In this section, the 


term `applicable requirement' means--


            ``(1) a requirement of section 1412, 1414, 1415, 1416, 1417, 


        1441, or 1445;


            ``(2) a regulation promulgated pursuant to a section 


        referred to in paragraph (1);


            ``(3) a schedule or requirement imposed pursuant to a 


        section referred to in paragraph (1); and


            ``(4) a requirement of, or permit issued under, an 


        applicable State program for which the Administrator has made a 


        determination that the requirements of section 1413 have been 


        satisfied, or an applicable State program approved pursuant to 


        this part.''.





    (b) State Authority for Administrative Penalties.--Section 1413(a) 


(42 U.S.C. 300g-2(a)) is amended--


            (1) by striking ``and'' at the end of paragraph (4);


            (2) by striking the period at the end of paragraph (5) and 


        inserting ``; and''; and





[[Page 110 STAT. 1636]]





            (3) by adding at the end the following:


            ``(6) has adopted authority for administrative penalties 


        (unless the constitution of the State prohibits the adoption of 


        the authority) in a maximum amount--


                    ``(A) in the case of a system serving a population 


                of more than 10,000, that is not less than $1,000 per 


                day per violation; and


                    ``(B) in the case of any other system, that is 


                adequate to ensure compliance (as determined by the 


                State);


        except that a State may establish a maximum limitation on the 


        total amount of administrative penalties that may be imposed on 


        a public water system per violation.''.





    (c) Judicial Review.--Section 1448(a) (42 U.S.C. 300j-7(a)) is 


amended--


            (1) in paragraph (2) of the first sentence, by inserting 


        ``final'' after ``any other'';


            (2) in the second sentence, by striking ``or issuance of the 


        order'' and inserting ``or any other final Agency action''; and


            (3) by adding at the end the following ``In any petition 


        concerning the assessment of a civil penalty pursuant to section 


        1414(g)(3)(B), the petitioner shall simultaneously send a copy 


        of the complaint by certified mail to the Administrator and the 


        Attorney General. The court shall set aside and remand the 


        penalty order if the court finds that there is not substantial 


        evidence in the record to support the finding of a violation or 


        that the assessment of the penalty by the Administrator 


        constitutes an abuse of discretion.''.





    (d) Emergency Powers.--Section 1431(b) (42 U.S.C. 300i(b)) is 


amended by striking ``$5,000'' and inserting ``$15,000''.





SEC. 114. PUBLIC NOTIFICATION.





    (a) Public Water Systems.--Section 1414(c) (42 U.S.C. 300g-3(c)) is 


amended to read as follows:


    ``(c) Notice to Persons Served.--


            ``(1) In general.--Each owner or operator of a public water 


        system shall give notice of each of the following to the persons 


        served by the system:


                    ``(A) Notice of any failure on the part of the 


                public water system to--


                          ``(i) comply with an applicable maximum 


                      contaminant level or treatment technique 


                      requirement of, or a testing procedure prescribed 


                      by, a national primary drinking water regulation; 


                      or


                          ``(ii) perform monitoring required by section 


                      1445(a).


                    ``(B) If the public water system is subject to a 


                variance granted under subsection (a)(1)(A), (a)(2), or 


                (e) of section 1415 for an inability to meet a maximum 


                contaminant level requirement or is subject to an 


                exemption granted under section 1416, notice of--


                          ``(i) the existence of the variance or 


                      exemption; and


                          ``(ii) any failure to comply with the 


                      requirements of any schedule prescribed pursuant 


                      to the variance or exemption.





[[Page 110 STAT. 1637]]





                    ``(C) Notice of the concentration level of any 


                unregulated contaminant for which the Administrator has 


                required public notice pursuant to paragraph (2)(E).


            ``(2) Form, manner, and frequency of notice.--


                    ``(A) <<NOTE: Regulations.>> In general.--The 


                Administrator shall, by regulation, and after 


                consultation with the States, prescribe the manner, 


                frequency, form, and content for giving notice under 


                this subsection. The regulations shall--


                          ``(i) provide for different frequencies of 


                      notice based on the differences between violations 


                      that are intermittent or infrequent and violations 


                      that are continuous or frequent; and


                          ``(ii) take into account the seriousness of 


                      any potential adverse health effects that may be 


                      involved.


                    ``(B) State requirements.--


                          ``(i) In general.--A State may, by rule, 


                      establish alternative notification requirements--


                                    ``(I) with respect to the form and 


                                content of notice given under and in a 


                                manner in accordance with subparagraph 


                                (C); and


                                    ``(II) with respect to the form and 


                                content of notice given under 


                                subparagraph (D).


                          ``(ii) Contents.--The alternative requirements 


                      shall provide the same type and amount of 


                      information as required pursuant to this 


                      subsection and regulations issued under 


                      subparagraph (A).


                          ``(iii) Relationship to section 1413.--Nothing 


                      in this subparagraph shall be construed or applied 


                      to modify the requirements of section 1413.


                    ``(C) Violations with potential to have serious 


                adverse effects on human health.--Regulations issued 


                under subparagraph (A) shall specify notification 


                procedures for each violation by a public water system 


                that has the potential to have serious adverse effects 


                on human health as a result of short-term exposure. Each 


                notice of violation provided under this subparagraph 


                shall--


                          ``(i) be distributed as soon as practicable 


                      after the occurrence of the violation, but not 


                      later than 24 hours after the occurrence of the 


                      violation;


                          ``(ii) provide a clear and readily 


                      understandable explanation of--


                                    ``(I) the violation;


                                    ``(II) the potential adverse effects 


                                on human health;


                                    ``(III) the steps that the public 


                                water system is taking to correct the 


                                violation; and


                                    ``(IV) the necessity of seeking 


                                alternative water supplies until the 


                                violation is corrected;


                          ``(iii) be provided to the Administrator or 


                      the head of the State agency that has primary 


                      enforcement responsibility under section 1413 as 


                      soon as practicable, but not later than 24 hours 


                      after the occurrence of the violation; and


                          ``(iv) as required by the State agency in 


                      general regulations of the State agency, or on a 


                      case-by-case basis after the consultation referred 


                      to in clause (iii), considering the health risks 


                      involved--





[[Page 110 STAT. 1638]]





                                    ``(I) be provided to appropriate 


                                broadcast media;


                                    ``(II) be prominently published in a 


                                newspaper of general circulation serving 


                                the area not later than 1 day after 


                                distribution of a notice pursuant to 


                                clause (i) or the date of publication of 


                                the next issue of the newspaper; or


                                    ``(III) be provided by posting or 


                                door-to-door notification in lieu of 


                                notification by means of broadcast media 


                                or newspaper.


                    ``(D) Written notice.--


                          ``(i) In general.--Regulations issued under 


                      subparagraph (A) shall specify notification 


                      procedures for violations other than the 


                      violations covered by subparagraph 


                      (C). <<NOTE: Reports.>> The procedures shall 


                      specify that a public water system shall provide 


                      written notice to each person served by the system 


                      by notice (I) in the first bill (if any) prepared 


                      after the date of occurrence of the violation, 


                      (II) in an annual report issued not later than 1 


                      year after the date of occurrence of the 


                      violation, or (III) by mail or direct delivery as 


                      soon as practicable, but not later than 1 year 


                      after the date of occurrence of the violation.


                          ``(ii) Form and manner of notice.--The 


                      Administrator shall prescribe the form and manner 


                      of the notice to provide a clear and readily 


                      understandable explanation of the violation, any 


                      potential adverse health effects, and the steps 


                      that the system is taking to seek alternative 


                      water supplies, if any, until the violation is 


                      corrected.


                    ``(E) Unregulated contaminants.--The Administrator 


                may require the owner or operator of a public water 


                system to give notice to the persons served by the 


                system of the concentration levels of an unregulated 


                contaminant required to be monitored under section 


                1445(a).


            ``(3) Reports.--


                    ``(A) Annual report by state.--


                          ``(i) In general.--Not later than January 1, 


                      1998, and annually thereafter, each State that has 


                      primary enforcement responsibility under section 


                      1413 shall prepare, make readily available to the 


                      public, and submit to the Administrator an annual 


                      report on violations of national primary drinking 


                      water regulations by public water systems in the 


                      State, including violations with respect to (I) 


                      maximum contaminant levels, (II) treatment 


                      requirements, (III) variances and exemptions, and 


                      (IV) monitoring requirements determined to be 


                      significant by the Administrator after 


                      consultation with the States.


                          ``(ii) <<NOTE: Publication.>> Distribution.--


                      The State shall publish and distribute summaries 


                      of the report and indicate where the full report 


                      is available for review.


                    ``(B) <<NOTE: Native Americans.>> Annual report by 


                administrator.--Not later than July 1, 1998, and 


                annually thereafter, the Administrator shall prepare and 


                make available to the public an annual report 


                summarizing and evaluating reports submitted by States 


                pursuant to subparagraph (A) and notices





[[Page 110 STAT. 1639]]





                submitted by public water systems serving Indian Tribes 


                provided to the Administrator pursuant to subparagraph 


                (C) or (D) of paragraph (2) and making recommendations 


                concerning the resources needed to improve compliance 


                with this title. The report shall include information 


                about public water system compliance on Indian 


                reservations and about enforcement activities undertaken 


                and financial assistance provided by the Administrator 


                on Indian reservations, and shall make specific 


                recommendations concerning the resources needed to 


                improve compliance with this title on Indian 


                reservations.


            ``(4) Consumer confidence reports by community water 


        systems.--


                    ``(A) <<NOTE: Regulations.>> Annual reports to 


                consumers.--The Administrator, in consultation with 


                public water systems, environmental groups, public 


                interest groups, risk communication experts, and the 


                States, and other interested parties, shall issue 


                regulations within 24 months after the date of enactment 


                of this paragraph to require each community water system 


                to mail to each customer of the system at least once 


                annually a report on the level of contaminants in the 


                drinking water purveyed by that system (referred to in 


                this paragraph as a `consumer confidence report'). Such 


                regulations shall provide a brief and plainly worded 


                definition of the terms `maximum contaminant level 


                goal', `maximum contaminant level', `variances', and 


                `exemptions' and brief statements in plain language 


                regarding the health concerns that resulted in 


                regulation of each regulated contaminant. The 


                regulations shall also include a brief and plainly 


                worded explanation regarding contaminants that may 


                reasonably be expected to be present in drinking water, 


                including bottled water. The regulations shall also 


                provide for an Environmental Protection Agency toll-free 


                hotline that consumers can call for more information and 


                explanation.


                    ``(B) Contents of report.--The consumer confidence 


                reports under this paragraph shall include, but not be 


                limited to, each of the following:


                          ``(i) Information on the source of the water 


                      purveyed.


                          ``(ii) A brief and plainly worded definition 


                      of the terms `maximum contaminant level goal', 


                      `maximum contaminant level', `variances', and 


                      `exemptions' as provided in the regulations of the 


                      Administrator.


                          ``(iii) If any regulated contaminant is 


                      detected in the water purveyed by the public water 


                      system, a statement setting forth (I) the maximum 


                      contaminant level goal, (II) the maximum 


                      contaminant level, (III) the level of such 


                      contaminant in such water system, and (IV) for any 


                      regulated contaminant for which there has been a 


                      violation of the maximum contaminant level during 


                      the year concerned, the brief statement in plain 


                      language regarding the health concerns that 


                      resulted in regulation of such contaminant, as 


                      provided by the Administrator in regulations under 


                      subparagraph (A).





[[Page 110 STAT. 1640]]





                          ``(iv) Information on compliance with national 


                      primary drinking water regulations, as required by 


                      the Administrator, and notice if the system is 


                      operating under a variance or exemption and the 


                      basis on which the variance or exemption was 


                      granted.


                          ``(v) Information on the levels of unregulated 


                      contaminants for which monitoring is required 


                      under section 1445(a)(2) (including levels of 


                      cryptosporidium and radon where States determine 


                      they may be found).


                          ``(vi) A statement that the presence of 


                      contaminants in drinking water does not 


                      necessarily indicate that the drinking water poses 


                      a health risk and that more information about 


                      contaminants and potential health effects can be 


                      obtained by calling the Environmental Protection 


                      Agency hotline.


                A public water system may include such additional 


                information as it deems appropriate for public 


                education. The Administrator may, for not more than 3 


                regulated contaminants other than those referred to in 


                subclause (IV) of clause (iii), require a consumer 


                confidence report under this paragraph to include the 


                brief statement in plain language regarding the health 


                concerns that resulted in regulation of the contaminant 


                or contaminants concerned, as provided by the 


                Administrator in regulations under subparagraph (A).


                    ``(C) Coverage.--The Governor of a State may 


                determine not to apply the mailing requirement of 


                subparagraph (A) to a community water system serving 


                fewer than 10,000 persons. Any such system shall--


                          ``(i) <<NOTE: Newspapers.>> inform, in the 


                      newspaper notice required by clause (iii) or by 


                      other means, its customers that the system will 


                      not be mailing the report as required by 


                      subparagraph (A);


                          ``(ii) make the consumer confidence report 


                      available upon request to the public; and


                          ``(iii) <<NOTE: Publication.>> publish the 


                      report referred to in subparagraph (A) annually in 


                      one or more local newspapers serving the area in 


                      which customers of the system are located.


                    ``(D) Alternative to publication.--For any community 


                water system which, pursuant to subparagraph (C), is not 


                required to meet the mailing requirement of subparagraph 


                (A) and which serves 500 persons or fewer, the community 


                water system may elect not to comply with clause (i) or 


                (iii) of subparagraph (C). If the community water system 


                so elects, the system shall, at a minimum--


                          ``(i) <<NOTE: Reports.>> prepare an annual 


                      consumer confidence report pursuant to 


                      subparagraph (B); and


                          ``(ii) provide notice at least once per year 


                      to each of its customers by mail, by door-to-door 


                      delivery, by posting or by other means authorized 


                      by the regulations of the Administrator that the 


                      consumer confidence report is available upon 


                      request.


                    ``(E) Alternative form and content.--A State 


                exercising primary enforcement responsibility may 


                establish, by rule, after notice and public comment, 


                alternative requirements with respect to the form and 


                content of consumer confidence reports under this 


                paragraph.''.





[[Page 110 STAT. 1641]]





    (b) <<NOTE: Publication. 21 USC 349 note.>> Bottled Water Study.--


Not later than 18 months after the date of enactment of this Act, the 


Administrator of the Food and Drug Administration, in consultation with 


the Administrator of the Environmental Protection Agency, shall publish 


for public notice and comment a draft study on the feasibility of 


appropriate methods, if any, of informing customers of the contents of 


bottled water. The Administrator of the Food and Drug Administration 


shall publish a final study not later than 30 months after the date of 


enactment of this Act.





SEC. 115. VARIANCES.





    The second sentence of section 1415(a)(1)(A) (42 U.S.C. 300g-


4(a)(1)(A)) is amended--


            (1) by striking ``only be issued to a system after the 


        system's application of'' and inserting ``be issued to a system 


        on condition that the system install''; and


            (2) by inserting before the period at the end the following: 


        ``, and based upon an evaluation satisfactory to the State that 


        indicates that alternative sources of water are not reasonably 


        available to the system''.





SEC. 116. SMALL SYSTEMS VARIANCES.





    Section 1415 (42 U.S.C. 300g-4) is amended by adding at the end the 


following:


    ``(e) Small System Variances.--


            ``(1) In general.--A State exercising primary enforcement 


        responsibility for public water systems under section 1413 (or 


        the Administrator in nonprimacy States) may grant a variance 


        under this subsection for compliance with a requirement 


        specifying a maximum contaminant level or treatment technique 


        contained in a national primary drinking water regulation to--


                    ``(A) public water systems serving 3,300 or fewer 


                persons; and


                    ``(B) with the approval of the Administrator 


                pursuant to paragraph (9), public water systems serving 


                more than 3,300 persons but fewer than 10,000 persons,


        if the variance meets each requirement of this subsection.


            ``(2) Availability of variances.--A public water system may 


        receive a variance pursuant to paragraph (1), if--


                    ``(A) the Administrator has identified a variance 


                technology under section 1412(b)(15) that is applicable 


                to the size and source water quality conditions of the 


                public water system;


                    ``(B) the public water system installs, operates, 


                and maintains, in accordance with guidance or 


                regulations issued by the Administrator, such treatment 


                technology, treatment technique, or other means; and


                    ``(C) the State in which the system is located 


                determines that the conditions of paragraph (3) are met.


            ``(3) Conditions for granting variances.--A variance under 


        this subsection shall be available only to a system--


                    ``(A) that cannot afford to comply, in accordance 


                with affordability criteria established by the 


                Administrator (or the State in the case of a State that 


                has primary enforcement responsibility under section 


                1413), with a national primary drinking water 


                regulation, including compliance through--


                          ``(i) treatment;





[[Page 110 STAT. 1642]]





                          ``(ii) alternative source of water supply; or


                          ``(iii) restructuring or consolidation (unless 


                      the Administrator (or the State in the case of a 


                      State that has primary enforcement responsibility 


                      under section 1413) makes a written determination 


                      that restructuring or consolidation is not 


                      practicable); and


                    ``(B) for which the Administrator (or the State in 


                the case of a State that has primary enforcement 


                responsibility under section 1413) determines that the 


                terms of the variance ensure adequate protection of 


                human health, considering the quality of the source 


                water for the system and the removal efficiencies and 


                expected useful life of the treatment technology 


                required by the variance.


            ``(4) Compliance schedules.--A variance granted under this 


        subsection shall require compliance with the conditions of the 


        variance not later than 3 years after the date on which the 


        variance is granted, except that the Administrator (or the State 


        in the case of a State that has primary enforcement 


        responsibility under section 1413) may allow up to 2 additional 


        years to comply with a variance technology, secure an 


        alternative source of water, restructure or consolidate if the 


        Administrator (or the State) determines that additional time is 


        necessary for capital improvements, or to allow for financial 


        assistance provided pursuant to section 1452 or any other 


        Federal or State program.


            ``(5) <<NOTE: Review.>> Duration of variances.--The 


        Administrator (or the State in the case of a State that has 


        primary enforcement responsibility under section 1413) shall 


        review each variance granted under this subsection not less 


        often than every 5 years after the compliance date established 


        in the variance to determine whether the system remains eligible 


        for the variance and is conforming to each condition of the 


        variance.


            ``(6) Ineligibility for variances.--A variance shall not be 


        available under this subsection for--


                    ``(A) any maximum contaminant level or treatment 


                technique for a contaminant with respect to which a 


                national primary drinking water regulation was 


                promulgated prior to January 1, 1986; or


                    ``(B) a national primary drinking water regulation 


                for a microbial contaminant (including a bacterium, 


                virus, or other organism) or an indicator or treatment 


                technique for a microbial contaminant.


            ``(7) Regulations and guidance.--


                    ``(A) In general.--Not later than 2 years after the 


                date of enactment of this subsection and in consultation 


                with the States, the Administrator shall promulgate 


                regulations for variances to be granted under this 


                subsection. The regulations shall, at a minimum, 


                specify--


                          ``(i) procedures to be used by the 


                      Administrator or a State to grant or deny 


                      variances, including requirements for notifying 


                      the Administrator and consumers of the public 


                      water system that a variance is proposed to be 


                      granted (including information regarding the 


                      contaminant and variance) and requirements for a 


                      public hearing on the variance before the variance 


                      is granted;





[[Page 110 STAT. 1643]]





                          ``(ii) requirements for the installation and 


                      proper operation of variance technology that is 


                      identified (pursuant to section 1412(b)(15)) for 


                      small systems and the financial and technical 


                      capability to operate the treatment system, 


                      including operator training and certification;


                          ``(iii) eligibility criteria for a variance 


                      for each national primary drinking water 


                      regulation, including requirements for the quality 


                      of the source water (pursuant to section 


                      1412(b)(15)(A)); and


                          ``(iv) information requirements for variance 


                      applications.


                    ``(B)  <<NOTE: Publication.>> Affordability 


                criteria.--Not later than 18 months after the date of 


                enactment of the Safe Drinking Water Act Amendments of 


                1996, the Administrator, in consultation with the States 


                and the Rural Utilities Service of the Department of 


                Agriculture, shall publish information to assist the 


                States in developing affordability criteria. The 


                affordability <<NOTE: Review.>> criteria shall be 


                reviewed by the States not less often than every 5 years 


                to determine if changes are needed to the criteria.


            ``(8) Review by the administrator.--


                    ``(A) In general.--The Administrator shall 


                periodically review the program of each State that has 


                primary enforcement responsibility for public water 


                systems under section 1413 with respect to variances to 


                determine whether the variances granted by the State 


                comply with the requirements of this subsection. With 


                respect to affordability, the determination of the 


                Administrator shall be limited to whether the variances 


                granted by the State comply with the affordability 


                criteria developed by the State.


                    ``(B) Notice and publication.--If the Administrator 


                determines that variances granted by a State are not in 


                compliance with affordability criteria developed by the 


                State and the requirements of this subsection, the 


                Administrator shall notify the State in writing of the 


                deficiencies and make public the determination.


            ``(9) Approval of variances.--A State proposing to grant a 


        variance under this subsection to a public water system serving 


        more than 3,300 and fewer than 10,000 persons shall submit the 


        variance to the Administrator for review and approval prior to 


        the issuance of the variance. The Administrator shall approve 


        the variance if it meets each of the requirements of this 


        subsection. The Administrator shall approve or disapprove the 


        variance within 90 days. If 


        the <<NOTE: Notification.>> Administrator disapproves a variance 


        under this paragraph, the Administrator shall notify the State 


        in writing of the reasons for disapproval and the variance may 


        be resubmitted with modifications to address the objections 


        stated by the Administrator.


            ``(10) Objections to variances.--


                    ``(A) By the administrator.--The Administrator may 


                review and object to any variance proposed to be granted 


                by a State, if the objection is communicated to the 


                State not later than 90 days after the State proposes to 


                grant the variance. <<NOTE: Notification.>> If the 


                Administrator objects to the granting of a variance, the 


                Administrator shall notify the State in writing of each 


                basis for the objection and propose a





[[Page 110 STAT. 1644]]





                modification to the variance to resolve the concerns of 


                the Administrator. The State shall make the recommended 


                modification or respond in writing to each objection. If 


                the State issues the variance without resolving the 


                concerns of the Administrator, the Administrator may 


                overturn the State decision to grant the variance if the 


                Administrator determines that the State decision does 


                not comply with this subsection.


                    ``(B) Petition by consumers.--Not later than 30 days 


                after a State exercising primary enforcement 


                responsibility for public water systems under section 


                1413 proposes to grant a variance for a public water 


                system, any person served by the system may petition the 


                Administrator to object to the granting of a variance. 


                The Administrator shall respond to the petition and 


                determine whether to object to the variance under 


                subparagraph (A) not later than 60 days after the 


                receipt of the petition.


                    ``(C) Timing.--No variance shall be granted by a 


                State until the later of the following:


                          ``(i) 90 days after the State proposes to 


                      grant a variance.


                          ``(ii) If the Administrator objects to the 


                      variance, the date on which the State makes the 


                      recommended modifications or responds in writing 


                      to each objection.''.





SEC. 117. EXEMPTIONS.





    (a) In General.--Section 1416 (42 U.S.C. 300g-5) is amended as 


follows:


            (1) In subsection (a)(1)--


                    (A) by inserting after ``(which may include economic 


                factors'' the following: ``, including qualification of 


                the public water system as a system serving a 


                disadvantaged community pursuant to section 1452(d)''; 


                and


                    (B) by inserting after ``treatment technique 


                requirement,'' the following: ``or to implement measures 


                to develop an alternative source of water supply,''.


            (2) In subsection (a), by striking ``and'' at the end of 


        paragraph (2), striking the period at the end of paragraph (3) 


        and inserting ``; and'' and by adding the following at the end 


        thereof:


            ``(4) management or restructuring changes (or both) cannot 


        reasonably be made that will result in compliance with this 


        title or, if compliance cannot be achieved, improve the quality 


        of the drinking water.''.


            (3) In subsection (b)(1)(A)--


                    (A) by striking ``(including increments of 


                progress)'' and inserting ``(including increments of 


                progress or measures to develop an alternative source of 


                water supply)''; and


                    (B) by striking ``requirement and treatment'' and 


                inserting ``requirement or treatment''.


            (4) In subsection (b)(2)--


                    (A) by striking ``(except as provided in 


                subparagraph (B))'' in subparagraph (A) and all that 


                follows through ``3 years after the date of the issuance 


                of the exemption if'' in subparagraph (B) and inserting 


                the following: ``not





[[Page 110 STAT. 1645]]





                later than 3 years after the otherwise applicable 


                compliance date established in section 1412(b)(10).





    ``(B) No exemption shall be granted unless'';


                    (B) in subparagraph (B)(i), by striking ``within the 


                period of such exemption'' and inserting ``prior to the 


                date established pursuant to section 1412(b)(10)'';


                    (C) in subparagraph (B)(ii), by inserting after 


                ``such financial assistance'' the following: ``or 


                assistance pursuant to section 1452, or any other 


                Federal or State program is reasonably likely to be 


                available within the period of the exemption'';


                    (D) in subparagraph (C)--


                          (i) by striking ``500 service connections'' 


                      and inserting ``a population of 3,300''; and


                          (ii) by inserting ``, but not to exceed a 


                      total of 6 years,'' after ``for one or more 


                      additional 2-year periods''; and


                    (E) by adding at the end the following:





    ``(D) Limitation.--A public water system may not receive an 


exemption under this section if the system was granted a variance under 


section 1415(e).''.


    (b) Limited Additional Compliance Period.--(1) The State of New 


York, on a case-by-case basis and after notice and an opportunity of at 


least 60 days for public comment, may allow an additional period for 


compliance with the Surface Water Treatment Rule established pursuant to 


section 1412(b)(7)(C) of the Safe Drinking Water Act in the case of 


unfiltered systems in Essex, Columbia, Greene, Dutchess, Rensselaer, 


Schoharie, Saratoga, Washington, and Warren Counties serving a 


population of less than 5,000, which meet appropriate disinfection 


requirements and have adequate watershed protections, so long as the 


State determines that the public health will be protected during the 


duration of the additional compliance period and the system agrees to 


implement appropriate control measures as determined by the State.


    (2) <<NOTE: Expiration.>> The additional compliance period referred 


to in paragraph (1) shall expire on the earlier of the date 3 years 


after the date on which the Administrator identifies appropriate control 


technology for the Surface Water Treatment Rule for public water systems 


in the category that includes such system pursuant to section 


1412(b)(4)(E) of the Safe Drinking Water Act or 5 years after the date 


of enactment of the Safe Drinking Water Act Amendments of 1996.





SEC. 118. LEAD PLUMBING AND PIPES.





    Section 1417 (42 U.S.C. 300g-6) is amended as follows:


            (1) In subsection (a), by striking paragraph (1) and 


        inserting the following:


            ``(1) Prohibitions.--


                    ``(A) In general.--No person may use any pipe, any 


                pipe or plumbing fitting or fixture, any solder, or any 


                flux, after June 19, 1986, in the installation or repair 


                of--


                          ``(i) any public water system; or


                          ``(ii) any plumbing in a residential or 


                      nonresidential facility providing water for human 


                      consumption,





[[Page 110 STAT. 1646]]





                that is not lead free (within the meaning of subsection 


                (d)).


                    ``(B) Leaded joints.--Subparagraph (A) shall not 


                apply to leaded joints necessary for the repair of cast 


                iron pipes.''.


            (2) In subsection (a)(2)(A), by inserting ``owner or 


        operator of a'' after ``Each''.


            (3) By adding at the end of subsection (a) the following:


            ``(3) <<NOTE: Effective date.>> Unlawful acts.--Effective 2 


        years after the date of enactment of this paragraph, it shall be 


        unlawful--


                    ``(A) for any person to introduce into commerce any 


                pipe, or any pipe or plumbing fitting or fixture, that 


                is not lead free, except for a pipe that is used in 


                manufacturing or industrial processing;


                    ``(B) for any person engaged in the business of 


                selling plumbing supplies, except manufacturers, to sell 


                solder or flux that is not lead free; or


                    ``(C) for any person to introduce into commerce any 


                solder or flux that is not lead free unless the solder 


                or flux bears a prominent label stating that it is 


                illegal to use the solder or flux in the installation or 


                repair of any plumbing providing water for human 


                consumption.''.


            (4) In subsection (d)--


                    (A) by striking ``lead, and'' in paragraph (1) and 


                inserting ``lead;'';


                    (B) by striking ``lead.'' in paragraph (2) and 


                inserting ``lead; and''; and


                    (C) by adding at the end the following:


            ``(3) when used with respect to plumbing fittings and 


        fixtures, refers to plumbing fittings and fixtures in compliance 


        with standards established in accordance with subsection (e).''.


            (5) By adding at the end the following:





    ``(e) Plumbing Fittings and Fixtures.--


            ``(1) In general.--The Administrator shall provide accurate 


        and timely technical information and assistance to qualified 


        third-party certifiers in the development of voluntary standards 


        and testing protocols for the leaching of lead from new plumbing 


        fittings and fixtures that are intended by the manufacturer to 


        dispense water for human ingestion.


            ``(2) Standards.--


                    ``(A) In general.--If a voluntary standard for the 


                leaching of lead is not established by the date that is 


                1 year after the date of enactment of this subsection, 


                the Administrator shall, not later than 2 years after 


                the date of enactment of this subsection, promulgate 


                regulations setting a health-effects-based performance 


                standard establishing maximum leaching levels from new 


                plumbing fittings and fixtures that are intended by the 


                manufacturer to dispense water for human 


                ingestion. <<NOTE: Effective date.>> The standard shall 


                become effective on the date that is 5 years after the 


                date of promulgation of the standard.


                    ``(B) Alternative requirement.--If regulations are 


                required to be promulgated under subparagraph (A) and 


                have not been promulgated by the date that is 5 years 


                after the date of enactment of this subsection, no 


                person may import, manufacture, process, or distribute 


                in commerce a new plumbing fitting or fixture, intended 


                by the





[[Page 110 STAT. 1647]]





                manufacturer to dispense water for human ingestion, that 


                contains more than 4 percent lead by dry weight.''.





SEC. 119. CAPACITY DEVELOPMENT.





    Part B (42 U.S.C. 300g et seq.) is amended by adding after section 


                           1419 the following:





    ``Sec. <<NOTE: 42 USC 300g-9.>> 1420. (a) State Authority for New 


Systems.--A State shall receive only 80 percent of the allotment that 


the State is otherwise entitled to receive under section 1452 (relating 


to State loan funds) unless the State has obtained the legal authority 


or other means to ensure that all new community water systems and new 


nontransient, noncommunity water systems commencing operation after 


October 1, 1999, demonstrate technical, managerial, and financial 


capacity with respect to each national primary drinking water regulation 


in effect, or likely to be in effect, on the date of commencement of 


operations.





    ``(b) Systems in Significant Noncompliance.--


            ``(1) List.--Beginning not later than 1 year after the date 


        of enactment of this section, each State shall prepare, 


        periodically update, and submit to the Administrator a list of 


        community water systems and nontransient, noncommunity water 


        systems that have a history of significant noncompliance with 


        this title (as defined in guidelines issued prior to the date of 


        enactment of this section or any revisions of the guidelines 


        that have been made in consultation with the States) and, to the 


        extent practicable, the reasons for noncompliance.


            ``(2) Report.--Not later than 5 years after the date of 


        enactment of this section and as part of the capacity 


        development strategy of the State, each State shall report to 


        the Administrator on the success of enforcement mechanisms and 


        initial capacity development efforts in assisting the public 


        water systems listed under paragraph (1) to improve technical, 


        managerial, and financial capacity.


            ``(3) Withholding.--The list and report under this 


        subsection shall be considered part of the capacity development 


        strategy of the State required under subsection (c) of this 


        section for purposes of the withholding requirements of section 


        1452(a)(1)(G)(i) (relating to State loan funds).





    ``(c) Capacity Development Strategy.--


            ``(1) In general.--Beginning 4 years after the date of 


        enactment of this section, a State shall receive only--


                    ``(A) 90 percent in fiscal year 2001;


                    ``(B) 85 percent in fiscal year 2002; and


                    ``(C) 80 percent in each subsequent fiscal year,


        of the allotment that the State is otherwise entitled to receive 


        under section 1452 (relating to State loan funds), unless the 


        State is developing and implementing a strategy to assist public 


        water systems in acquiring and maintaining technical, 


        managerial, and financial capacity.


            ``(2) Content.--In preparing the capacity development 


        strategy, the State shall consider, solicit public comment on, 


        and include as appropriate--


                    ``(A) the methods or criteria that the State will 


                use to identify and prioritize the public water systems 


                most





[[Page 110 STAT. 1648]]





                in need of improving technical, managerial, and 


                financial capacity;


                    ``(B) a description of the institutional, 


                regulatory, financial, tax, or legal factors at the 


                Federal, State, or local level that encourage or impair 


                capacity development;


                    ``(C) a description of how the State will use the 


                authorities and resources of this title or other means 


                to--


                          ``(i) assist public water systems in complying 


                      with national primary drinking water regulations;


                          ``(ii) encourage the development of 


                      partnerships between public water systems to 


                      enhance the technical, managerial, and financial 


                      capacity of the systems; and


                          ``(iii) assist public water systems in the 


                      training and certification of operators;


                    ``(D) a description of how the State will establish 


                a baseline and measure improvements in capacity with 


                respect to national primary drinking water regulations 


                and State drinking water law; and


                    ``(E) an identification of the persons that have an 


                interest in and are involved in the development and 


                implementation of the capacity development strategy 


                (including all appropriate agencies of Federal, State, 


                and local governments, private and nonprofit public 


                water systems, and public water system customers).


            ``(3) Report.--Not later than 2 years after the date on 


        which a State first adopts a capacity development strategy under 


        this subsection, and every 3 years thereafter, the head of the 


        State agency that has primary responsibility to carry out this 


        title in the State shall submit to the Governor a report that 


        shall also be available to the public on the efficacy of the 


        strategy and progress made toward improving the technical, 


        managerial, and financial capacity of public water systems in 


        the State.


            ``(4) Review.--The decisions of the State under this section 


        regarding any particular public water system are not subject to 


        review by the Administrator and may not serve as the basis for 


        withholding funds under section 1452.





    ``(d) Federal Assistance.--


            ``(1) In general.--The Administrator shall support the 


        States in developing capacity development strategies.


            ``(2) Informational assistance.--


                    ``(A) In general.--Not later than 180 days after the 


                date of enactment of this section, the Administrator 


                shall--


                          ``(i) <<NOTE: Review. Publication.>> conduct a 


                      review of State capacity development efforts in 


                      existence on the date of enactment of this section 


                      and publish information to assist States and 


                      public water systems in capacity development 


                      efforts; and


                          ``(ii) initiate a partnership with States, 


                      public water systems, and the public to develop 


                      information for States on recommended operator 


                      certification requirements.


                    ``(B) Publication of information.--The Administrator 


                shall publish the information developed through the 


                partnership under subparagraph (A)(ii) not later than 18 


                months after the date of enactment of this section.





[[Page 110 STAT. 1649]]





            ``(3) Promulgation of drinking water regulations.--In 


        promulgating a national primary drinking water regulation, the 


        Administrator shall include an analysis of the likely effect of 


        compliance with the regulation on the technical, financial, and 


        managerial capacity of public water systems.


            ``(4) <<NOTE: Publication.>> Guidance for new systems.--Not 


        later than 2 years after the date of enactment of this section, 


        the Administrator shall publish guidance developed in 


        consultation with the States describing legal authorities and 


        other means to ensure that all new community water systems and 


        new nontransient, noncommunity water systems demonstrate 


        technical, managerial, and financial capacity with respect to 


        national primary drinking water regulations.





    ``(e) Variances and Exemptions.--Based on information obtained under 


subsection (c)(3), the Administrator shall, as appropriate, modify 


regulations concerning variances and exemptions for small public water 


systems to ensure flexibility in the use of the variances and 


exemptions. Nothing in this subsection shall be interpreted, construed, 


or applied to affect or alter the requirements of section 1415 or 1416.


    ``(f) Small Public Water Systems Technology Assistance Centers.--


            ``(1) Grant program.--The Administrator is authorized to 


        make grants to institutions of higher learning to establish and 


        operate small public water system technology assistance centers 


        in the United States.


            ``(2) Responsibilities of the centers.--The responsibilities 


        of the small public water system technology assistance centers 


        established under this subsection shall include the conduct of 


        training and technical assistance relating to the information, 


        performance, and technical needs of small public water systems 


        or public water systems that serve Indian Tribes.


            ``(3) Applications.--Any institution of higher learning 


        interested in receiving a grant under this subsection shall 


        submit to the Administrator an application in such form and 


        containing such information as the Administrator may require by 


        regulation.


            ``(4) Selection criteria.--The Administrator shall select 


        recipients of grants under this subsection on the basis of the 


        following criteria:


                    ``(A) The small public water system technology 


                assistance center shall be located in a State that is 


                representative of the needs of the region in which the 


                State is located for addressing the drinking water needs 


                of small and rural communities or Indian Tribes.


                    ``(B) The grant recipient shall be located in a 


                region that has experienced problems, or may reasonably 


                be foreseen to experience problems, with small and rural 


                public water systems.


                    ``(C) The grant recipient shall have access to 


                expertise in small public water system technology 


                management.


                    ``(D) The grant recipient shall have the capability 


                to disseminate the results of small public water system 


                technology and training programs.


                    ``(E) The projects that the grant recipient proposes 


                to carry out under the grant are necessary and 


                appropriate.





[[Page 110 STAT. 1650]]





                    ``(F) The grant recipient has regional support 


                beyond the host institution.


            ``(5) Consortia of states.--At least 2 of the grants under 


        this subsection shall be made to consortia of States with low 


        population densities.


            ``(6) Authorization of appropriations.--There are authorized 


        to be appropriated to make grants under this subsection 


        $2,000,000 for each of the fiscal years 1997 through 1999, and 


        $5,000,000 for each of the fiscal years 2000 through 2003.





    ``(g) Environmental Finance Centers.--


            ``(1) In general.--The Administrator shall provide initial 


        funding for one or more university-based environmental finance 


        centers for activities that provide technical assistance to 


        State and local officials in developing the capacity of public 


        water systems. Any such funds shall be used only for activities 


        that are directly related to this title.


            ``(2) <<NOTE: Establishment.>> National capacity development 


        clearinghouse.--The Administrator shall establish a national 


        public water system capacity development clearinghouse to 


        receive and disseminate information with respect to developing, 


        improving, and maintaining financial and managerial capacity at 


        public water systems. The Administrator shall ensure that the 


        clearinghouse does not duplicate other federally supported 


        clearinghouse activities.


            ``(3) Capacity development techniques.--The Administrator 


        may request an environmental finance center funded under 


        paragraph (1) to develop and test managerial, financial, and 


        institutional techniques for capacity development. The 


        techniques may include capacity assessment methodologies, manual 


        and computer based public water system rate models and capital 


        planning models, public water system consolidation procedures, 


        and regionalization models.


            ``(4) Authorization of appropriations.--There are authorized 


        to be appropriated to carry out this subsection $1,500,000 for 


        each of the fiscal years 1997 through 2003.


            ``(5) Limitation.--No portion of any funds made available 


        under this subsection may be used for lobbying expenses.''.





SEC. 120. AUTHORIZATION OF APPROPRIATIONS FOR CERTAIN GROUND WATER 


            PROGRAMS.





    (a) Critical Aquifer Protection.--Section 1427 (42 U.S.C. 300h-6) is 


amended as follows:


            (1) Subsection (b)(1) is amended by striking ``not later 


        than 24 months after the enactment of the Safe Drinking Water 


        Act Amendments of 1986''.


            (2) The table in subsection (m) is amended by adding at the 


        end the following:





        ``1992-2003.......................................15,000,000.''.





    (b) Wellhead Protection Areas.--The table in section 1428(k) (42 


U.S.C. 300h-7(k)) is amended by adding at the end the following:





        ``1992-2003.......................................30,000,000.''.








[[Page 110 STAT. 1651]]











    (c) Underground Injection Control Grant.--The table in section 


1443(b)(5) (42 U.S.C. 300j-2(b)(5)) is amended by adding at the end the 


following:





        ``1992-2003.......................................15,000,000.''.





SEC. 121. AMENDMENTS TO SECTION 1442.





    Section 1442 (42 U.S.C. 300j-1) is amended--


            (1) by redesignating paragraph (3) of subsection (b) as 


        paragraph (3) of subsection (d) and moving such paragraph to 


        appear after paragraph (2) of subsection (d);


            (2) by striking subsection (b) (as so amended);


            (3) by redesignating subparagraph (B) of subsection (a)(2) 


        as subsection (b) and moving such subsection to appear after 


        subsection (a);


            (4) in subsection (a)--


                    (A) by striking paragraph (2) (as so amended) and 


                inserting the following:


            ``(2) Information and research facilities.--In carrying out 


        this title, the Administrator is authorized to--


                    ``(A) collect and make available information 


                pertaining to research, investigations, and 


                demonstrations with respect to providing a dependably 


                safe supply of drinking water, together with appropriate 


                recommendations in connection with the information; and


                    ``(B) make available research facilities of the 


                Agency to appropriate public authorities, institutions, 


                and individuals engaged in studies and research relating 


                to this title.'';


                    (B) by striking paragraph (3); and


                    (C) by redesignating paragraph (11) as paragraph (3) 


                and moving such paragraph to appear before paragraph 


                (4).





SEC. 122. TECHNICAL ASSISTANCE.





    Section 1442(e) (42 U.S.C. 300j-1(e)) is amended to read as follows:


    ``(e) Technical Assistance.--The Administrator may provide technical 


assistance to small public water systems to enable such systems to 


achieve and maintain compliance with applicable national primary 


drinking water regulations. Such assistance may include circuit-rider 


and multi-State regional technical assistance programs, training, and 


preliminary engineering evaluations. The Administrator shall ensure that 


technical assistance pursuant to this subsection is available in each 


State. <<NOTE: Nonprofit organizations.>> Each nonprofit organization 


receiving assistance under this subsection shall consult with the State 


in which the assistance is to be expended or otherwise made available 


before using assistance to undertake activities to carry out this 


subsection. <<NOTE: Appropriation authorization.>> There are authorized 


to be appropriated to the Administrator to be used for such technical 


assistance $15,000,000 for each of the fiscal years 1997 through 2003. 


No portion of any State loan fund established under section 1452 


(relating to State loan funds) and no portion of any funds made 


available under this subsection may be used for lobbying expenses. Of 


the total amount appropriated under this subsection, 3 percent shall be 


used for technical assistance to public water systems owned or operated 


by Indian Tribes.''.





[[Page 110 STAT. 1652]]





SEC. 123. OPERATOR CERTIFICATION.





    Part B (42 U.S.C. 300g et seq.) is amended by adding the following 


                           after section 1418:





    ``Sec. 1419. <<NOTE: Federal Register, publication. 42 USC 300g-


8.>> (a) Guidelines.--Not later than 30 months after the date of 


enactment of the Safe Drinking Water Act Amendments of 1996 and in 


cooperation with the States, the Administrator shall publish guidelines 


in the Federal Register, after notice and opportunity for comment from 


interested persons, including States and public water systems, 


specifying minimum standards for certification (and recertification) of 


the operators of community and nontransient noncommunity public water 


systems. Such guidelines shall take into account existing State 


programs, the complexity of the system, and other factors aimed at 


providing an effective program at reasonable cost to States and public 


water systems, taking into account the size of the system.





    ``(b) State Programs.--Beginning 2 years after the date on which the 


Administrator publishes guidelines under subsection (a), the 


Administrator shall withhold 20 percent of the funds a State is 


otherwise entitled to receive under section 1452 unless the State has 


adopted and is implementing a program for the certification of operators 


of community and nontransient noncommunity public water systems that 


meets the requirements of the guidelines published pursuant to 


subsection (a) or that has been submitted in compliance with subsection 


(c) and that has not been disapproved.


    ``(c) Existing Programs.--For any State exercising primary 


enforcement responsibility for public water systems or any other State 


which has an operator certification program, the guidelines under 


subsection (a) shall allow the State to enforce such program in lieu of 


the guidelines under subsection (a) if the State submits the program to 


the Administrator within 18 months after the publication of the 


guidelines unless the Administrator determines (within 9 months after 


the State submits the program to the Administrator) that such program is 


not substantially equivalent to such guidelines. In making this 


determination, an existing State program shall be presumed to be 


substantially equivalent to the guidelines, notwithstanding program 


differences, based on the size of systems or the quality of source 


water, providing the State program meets the overall public health 


objectives of the guidelines. If disapproved, the program may be 


resubmitted within 6 months after receipt of notice of disapproval.


    ``(d) Expense Reimbursement.--


            ``(1) In general.--The Administrator shall provide 


        reimbursement for the costs of training, including an 


        appropriate per diem for unsalaried operators, and certification 


        for persons operating systems serving 3,300 persons or fewer 


        that are required to undergo training pursuant to this section.


            ``(2) State grants.--The reimbursement shall be provided 


        through grants to States with each State receiving an amount 


        sufficient to cover the reasonable costs for training all such 


        operators in the State, as determined by the Administrator, to 


        the extent required by this section. Grants received by a State 


        pursuant to this paragraph shall first be used to provide 


        reimbursement for training and certification costs of persons 


        operating systems serving 3,300 persons or fewer. If a State





[[Page 110 STAT. 1653]]





        has reimbursed all such costs, the State may, after notice to 


        the Administrator, use any remaining funds from the grant for 


        any of the other purposes authorized for grants under section 


        1452.


            ``(3) Authorization.--There are authorized to be 


        appropriated to the Administrator to provide grants for 


        reimbursement under this section $30,000,000 for each of fiscal 


        years 1997 through 2003.


            ``(4) Reservation.--If the appropriation made pursuant to 


        paragraph (3) for any fiscal year is not sufficient to satisfy 


        the requirements of paragraph (1), the Administrator shall, 


        prior to any other allocation or reservation, reserve such sums 


        as necessary from the funds appropriated pursuant to section 


        1452(m) to provide reimbursement for the training and 


        certification costs mandated by this subsection.''.





SEC. 124. PUBLIC WATER SYSTEM SUPERVISION PROGRAM.





    Section 1443(a) (42 U.S.C. 300j-2(a)) is amended as follows:


            (1) Paragraph (7) is amended to read as follows:


            ``(7) Authorization.--For the purpose of making grants under 


        paragraph (1), there are authorized to be appropriated 


        $100,000,000 for each of fiscal years 1997 through 2003.''.


            (2) By adding at the end the following:


            ``(8) Reservation of funds by the administrator.--If the 


        Administrator assumes the primary enforcement responsibility of 


        a State public water system supervision program, the 


        Administrator may reserve from funds made available pursuant to 


        this subsection an amount equal to the amount that would 


        otherwise have been provided to the State pursuant to this 


        subsection. The Administrator shall use the funds reserved 


        pursuant to this paragraph to ensure the full and effective 


        administration of a public water system supervision program in 


        the State.


            ``(9) State loan funds.--


                    ``(A) Reservation of funds.--For any fiscal year for 


                which the amount made available to the Administrator by 


                appropriations to carry out this subsection is less than 


                the amount that the Administrator determines is 


                necessary to supplement funds made available pursuant to 


                paragraph (8) to ensure the full and effective 


                administration of a public water system supervision 


                program in a State, the Administrator may reserve from 


                the funds made available to the State under section 1452 


                (relating to State loan funds) an amount that is equal 


                to the amount of the shortfall. This paragraph shall not 


                apply to any State not exercising primary enforcement 


                responsibility for public water systems as of the date 


                of enactment of the Safe Drinking Water Act Amendments 


                of 1996.


                    ``(B) Duty of administrator.--If the Administrator 


                reserves funds from the allocation of a State under 


                subparagraph (A), the Administrator shall carry out in 


                the State each of the activities that would be required 


                of the State if the State had primary enforcement 


                authority under section 1413.''.





SEC. 125. MONITORING AND INFORMATION GATHERING.





    (a) Review of Existing Requirements.--Paragraph (1) of section 


1445(a) (42 U.S.C. 300j-4(a)(1)) is amended to read as follows:





[[Page 110 STAT. 1654]]





    ``(1)(A) <<NOTE: Records.>> Every person who is subject to any 


requirement of this title or who is a grantee, shall establish and 


maintain such records, make such reports, conduct such monitoring, and 


provide such information as the Administrator may reasonably require by 


regulation to assist the Administrator in establishing regulations under 


this title, in determining whether such person has acted or is acting in 


compliance with this title, in administering any program of financial 


assistance under this title, in evaluating the health risks of 


unregulated contaminants, or in advising the public of such risks. In 


requiring a public water system to monitor under this subsection, the 


Administrator may take into consideration the system size and the 


contaminants likely to be found in the system's drinking water.





    ``(B) Every person who is subject to a national primary drinking 


water regulation under section 1412 shall provide such information as 


the Administrator may reasonably require, after consultation with the 


State in which such person is located if such State has primary 


enforcement responsibility for public water systems, on a case-by-case 


basis, to determine whether such person has acted or is acting in 


compliance with this title.


    ``(C) Every person who is subject to a national primary drinking 


water regulation under section 1412 shall provide such information as 


the Administrator may reasonably require to assist the Administrator in 


establishing regulations under section 1412 of this title, after 


consultation with States and suppliers of water. The Administrator may 


not require under this subparagraph the installation of treatment 


equipment or process changes, the testing of treatment technology, or 


the analysis or processing of monitoring samples, except where the 


Administrator provides the funding for such activities. Before 


exercising this authority, the Administrator shall first seek to obtain 


the information by voluntary submission.


    ``(D) <<NOTE: Regulations.>> The Administrator shall not later than 


2 years after the date of enactment of this subparagraph, after 


consultation with public health experts, representatives of the general 


public, and officials of State and local governments, review the 


monitoring requirements for not fewer than 12 contaminants identified by 


the Administrator, and promulgate any necessary modifications.''.





    (b) Monitoring Relief.--Part B is amended by adding the following 


           new section after section 1417 (42 U.S.C. 300g-6):





    ``Sec. 1418. <<NOTE: 42 USC 300g-7.>> (a) Interim Monitoring Relief 


Authority.--


            ``(1) In general.--A State exercising primary enforcement 


        responsibility for public water systems may modify the 


        monitoring requirements for any regulated or unregulated 


        contaminants for which monitoring is required other than 


        microbial contaminants (or indicators thereof), disinfectants 


        and disinfection byproducts or corrosion byproducts for an 


        interim period to provide that any public water system serving 


        10,000 persons or fewer shall not be required to conduct 


        additional quarterly monitoring during an interim relief period 


        for such contaminants if--


                    ``(A) monitoring, conducted at the beginning of the 


                period for the contaminant concerned and certified to 


                the State by the public water system, fails to detect 


                the presence of the contaminant in the ground or surface 


                water supplying the public water system; and





[[Page 110 STAT. 1655]]





                    ``(B) the State, considering the hydrogeology of the 


                area and other relevant factors, determines in writing 


                that the contaminant is unlikely to be detected by 


                further monitoring during such period.


            ``(2) Termination; timing of monitoring.--The interim relief 


        period referred to in paragraph (1) shall terminate when 


        permanent monitoring relief is adopted and approved for such 


        State, or at the end of 36 months after the date of enactment of 


        the Safe Drinking Water Act Amendments of 1996, whichever comes 


        first. In order to serve as a basis for interim relief, the 


        monitoring conducted at the beginning of the period must occur 


        at the time determined by the State to be the time of the public 


        water system's greatest vulnerability to the contaminant 


        concerned in the relevant ground or surface water, taking into 


        account in the case of pesticides the time of application of the 


        pesticide for the source water area and the travel time for the 


        pesticide to reach such waters and taking into account, in the 


        case of other contaminants, seasonality of precipitation and 


        contaminant travel time.





    ``(b) Permanent Monitoring Relief Authority.--


            ``(1) In general.--Each State exercising primary enforcement 


        responsibility for public water systems under this title and 


        having an approved source water assessment program may adopt, in 


        accordance with guidance published by the Administrator, 


        tailored alternative monitoring requirements for public water 


        systems in such State (as an alternative to the monitoring 


        requirements for chemical contaminants set forth in the 


        applicable national primary drinking water regulations) where 


        the State concludes that (based on data available at the time of 


        adoption concerning susceptibility, use, occurrence, or wellhead 


        protection, or from the State's drinking water source water 


        assessment program) such alternative monitoring would provide 


        assurance that it complies with the Administrator's guidelines. 


        The State program must be adequate to assure compliance with, 


        and enforcement of, applicable national primary drinking water 


        regulations. Alternative monitoring shall not apply to regulated 


        microbiological contaminants (or indicators thereof), 


        disinfectants and disinfection byproducts, or corrosion 


        byproducts. The preceding sentence is not intended to limit 


        other authority of the Administrator under other provisions of 


        this title to grant monitoring flexibility.


            ``(2) Guidelines.--


                    ``(A) In general.--The Administrator shall issue, 


                after notice and comment and at the same time as 


                guidelines are issued for source water assessment under 


                section 1453, guidelines for States to follow in 


                proposing alternative monitoring requirements under 


                paragraph (1) for chemical contaminants. <<NOTE: Federal 


                Register, publication.>> The Administrator shall publish 


                such guidelines in the Federal Register. The guidelines 


                shall assure that the public health will be protected 


                from drinking water contamination. The guidelines shall 


                require that a State alternative monitoring program 


                apply on a contaminant-by-contaminant basis and that, to 


                be eligible for such alternative monitoring program, a 


                public water system must show the State that the 


                contaminant is not present in the drinking water supply 


                or, if present, it is reliably and consistently below 


                the maximum contaminant level.





[[Page 110 STAT. 1656]]





                    ``(B) Definition.--For purposes of subparagraph (A), 


                the phrase `reliably and consistently below the maximum 


                contaminant level' means that, although contaminants 


                have been detected in a water supply, the State has 


                sufficient knowledge of the contamination source and 


                extent of contamination to predict that the maximum 


                contaminant level will not be exceeded. In determining 


                that a contaminant is reliably and consistently below 


                the maximum contaminant level, States shall consider the 


                quality and completeness of data, the length of time 


                covered and the volatility or stability of monitoring 


                results during that time, and the proximity of such 


                results to the maximum contaminant level. Wide 


                variations in the analytical results, or analytical 


                results close to the maximum contaminant level, shall 


                not be considered to be reliably and consistently below 


                the maximum contaminant level.


            ``(3) Effect of detection of contaminants.--The guidelines 


        issued by the Administrator under paragraph (2) shall require 


        that if, after the monitoring program is in effect and 


        operating, a contaminant covered by the alternative monitoring 


        program is detected at levels at or above the maximum 


        contaminant level or is no longer reliably or consistently below 


        the maximum contaminant level, the public water system must 


        either--


                    ``(A) demonstrate that the contamination source has 


                been removed or that other action has been taken to 


                eliminate the contamination problem; or


                    ``(B) test for the detected contaminant pursuant to 


                the applicable national primary drinking water 


                regulation.


            ``(4) States not exercising primary enforcement 


        responsibility.--The Governor of any State not exercising 


        primary enforcement responsibility under section 1413 on the 


        date of enactment of this section may submit to the 


        Administrator a request that the Administrator modify the 


        monitoring requirements established by the Administrator and 


        applicable to public water systems in that State. After 


        consultation with the Governor, the Administrator shall modify 


        the requirements for public water systems in that State if the 


        request of the Governor is in accordance with each of the 


        requirements of this subsection that apply to alternative 


        monitoring requirements established by States that have primary 


        enforcement responsibility. A decision by the Administrator to 


        approve a request under this clause shall be for a period of 3 


        years and may subsequently be extended for periods of 5 years.





    ``(c) Treatment as NPDWR.--All monitoring relief granted by a State 


to a public water system for a regulated contaminant under subsection 


(a) or (b) shall be treated as part of the national primary drinking 


water regulation for that contaminant.


    ``(d) Other Monitoring Relief.--Nothing in this section shall be 


construed to affect the authority of the States under applicable 


national primary drinking water regulations to alter monitoring 


requirements through waivers or other existing authorities. The 


Administrator shall periodically review and, as appropriate, revise such 


authorities.''.


    (c) Unregulated Contaminants.--Section 1445(a) (42 U.S.C. 300j-4(a)) 


is amended by striking paragraphs (2) through (8) and inserting the 


following:





[[Page 110 STAT. 1657]]





            ``(2) Monitoring program for unregulated contaminants.--


                    ``(A) <<NOTE: Regulations.>> Establishment.--The 


                Administrator shall promulgate regulations establishing 


                the criteria for a monitoring program for unregulated 


                contaminants. The regulations shall require monitoring 


                of drinking water supplied by public water systems and 


                shall vary the frequency and schedule for monitoring 


                requirements for systems based on the number of persons 


                served by the system, the source of supply, and the 


                contaminants likely to be found, ensuring that only a 


                representative sample of systems serving 10,000 persons 


                or fewer are required to monitor.


                    ``(B) Monitoring program for certain unregulated 


                contaminants.--


                          ``(i) <<NOTE: Records.>> Initial list.--Not 


                      later than 3 years after the date of enactment of 


                      the Safe Drinking Water Act Amendments of 1996 and 


                      every 5 years thereafter, the Administrator shall 


                      issue a list pursuant to subparagraph (A) of not 


                      more than 30 unregulated contaminants to be 


                      monitored by public water systems and to be 


                      included in the national drinking water occurrence 


                      data base maintained pursuant to subsection (g).


                          ``(ii) Governors' petition.--The Administrator 


                      shall include among the list of contaminants for 


                      which monitoring is required under this paragraph 


                      each contaminant recommended in a petition signed 


                      by the Governor of each of 7 or more States, 


                      unless the Administrator determines that the 


                      action would prevent the listing of other 


                      contaminants of a higher public health concern.


                    ``(C) Monitoring plan for small and medium 


                systems.--


                          ``(i) In general.--Based on the regulations 


                      promulgated by the Administrator, each State may 


                      develop a representative monitoring plan to assess 


                      the occurrence of unregulated contaminants in 


                      public water systems that serve a population of 


                      10,000 or fewer in that State. The plan shall 


                      require monitoring for systems representative of 


                      different sizes, types, and geographic locations 


                      in the State.


                          ``(ii) Grants for small system costs.--From 


                      funds reserved under section 1452(o) or 


                      appropriated under subparagraph (H), the 


                      Administrator shall pay the reasonable cost of 


                      such testing and laboratory analysis as are 


                      necessary to carry out monitoring under the plan.


                    ``(D) Monitoring results.--Each public water system 


                that conducts monitoring of unregulated contaminants 


                pursuant to this paragraph shall provide the results of 


                the monitoring to the primary enforcement authority for 


                the system.


                    ``(E) Notification.--Notification of the 


                availability of the results of monitoring programs 


                required under paragraph (2)(A) shall be given to the 


                persons served by the system.





[[Page 110 STAT. 1658]]





                    ``(F) Waiver of monitoring requirement.--The 


                Administrator shall waive the requirement for monitoring 


                for a contaminant under this paragraph in a State, if 


                the State demonstrates that the criteria for listing the 


                contaminant do not apply in that State.


                    ``(G) Analytical methods.--The State may use 


                screening methods approved by the Administrator under 


                subsection (i) in lieu of monitoring for particular 


                contaminants under this paragraph.


                    ``(H) Authorization of appropriations.--There are 


                authorized to be appropriated to carry out this 


                paragraph $10,000,000 for each of the fiscal years 1997 


                through 2003.''.





    (d) Screening Methods.--Section 1445 (42 U.S.C. 300j-4) is amended 


by adding the following after subsection (h):


    ``(i) Screening Methods.--The Administrator shall review new 


analytical methods to screen for regulated contaminants and may approve 


such methods as are more accurate or cost-effective than established 


reference methods for use in compliance monitoring.''.





SEC. 126. OCCURRENCE DATA BASE.





    Section 1445 (42 U.S.C. 300j-4) is amended by adding the following 


new subsection after subsection (f):


    ``(g) Occurrence Data Base.--


            ``(1) In general.--Not later than 3 years after the date of 


        enactment of the Safe Drinking Water Act Amendments of 1996, the 


        Administrator shall assemble and maintain a national drinking 


        water contaminant occurrence data base, using information on the 


        occurrence of both regulated and unregulated contaminants in 


        public water systems obtained under subsection (a)(1)(A) or 


        subsection (a)(2) and reliable information from other public and 


        private sources.


            ``(2) Public input.--In establishing the occurrence data 


        base, the Administrator shall solicit recommendations from the 


        Science Advisory Board, the States, and other interested parties 


        concerning the development and maintenance of a national 


        drinking water contaminant occurrence data base, including such 


        issues as the structure and design of the data base, data input 


        parameters and requirements, and the use and interpretation of 


        data.


            ``(3) Use.--The data shall be used by the Administrator in 


        making determinations under section 1412(b)(1) with respect to 


        the occurrence of a contaminant in drinking water at a level of 


        public health concern.


            ``(4) Public recommendations.--The Administrator shall 


        periodically solicit recommendations from the appropriate 


        officials of the National Academy of Sciences and the States, 


        and any person may submit recommendations to the Administrator, 


        with respect to contaminants that should be included in the 


        national drinking water contaminant occurrence data base, 


        including recommendations with respect to additional unregulated 


        contaminants that should be listed under subsection (a)(2). Any 


        recommendation submitted under this clause shall be accompanied 


        by reasonable documentation that--


                    ``(A) the contaminant occurs or is likely to occur 


                in drinking water; and


                    ``(B) the contaminant poses a risk to public health.





[[Page 110 STAT. 1659]]





            ``(5) Public availability.--The information from the data 


        base shall be available to the public in readily accessible 


        form.


            ``(6) Regulated contaminants.--With respect to each 


        contaminant for which a national primary drinking water 


        regulation has been established, the data base shall include 


        information on the detection of the contaminant at a 


        quantifiable level in public water systems (including detection 


        of the contaminant at levels not constituting a violation of the 


        maximum contaminant level for the contaminant).


            ``(7) Unregulated contaminants.--With respect to 


        contaminants for which a national primary drinking water 


        regulation has not been established, the data base shall 


        include--


                    ``(A) monitoring information collected by public 


                water systems that serve a population of more than 


                10,000, as required by the Administrator under 


                subsection (a);


                    ``(B) monitoring information collected from a 


                representative sampling of public water systems that 


                serve a population of 10,000 or fewer; and


                    ``(C) other reliable and appropriate monitoring 


                information on the occurrence of the contaminants in 


                public water systems that is available to the 


                Administrator.''.





SEC. 127. DRINKING WATER ADVISORY COUNCIL.





    The second sentence of section 1446(a) <<NOTE: 42 USC 300j-5.>> (42 


U.S.C. 300j-6(a)) is amended by inserting before the period at the end 


the following: ``, of which two such members shall be associated with 


small, rural public water systems''.





SEC. 128. NEW YORK CITY WATERSHED PROTECTION PROGRAM.





    Section 1443 (42 U.S.C. 300j-2) is amended by adding at the end the 


following:


    ``(d) New York City Watershed Protection Program.--


            ``(1) In general.--The Administrator is authorized to 


        provide financial assistance to the State of New York for 


        demonstration projects implemented as part of the watershed 


        program for the protection and enhancement of the quality of 


        source waters of the New York City water supply system, 


        including projects that demonstrate, assess, or provide for 


        comprehensive monitoring and surveillance and projects necessary 


        to comply with the criteria for avoiding filtration contained in 


        40 CFR 141.71. Demonstration projects which shall be eligible 


        for financial assistance shall be certified to the Administrator 


        by the State of New York as satisfying the purposes of this 


        subsection. In certifying projects to the Administrator, the 


        State of New York shall give priority to monitoring projects 


        that have undergone peer review.


            ``(2) Report.--Not later than 5 years after the date on 


        which the Administrator first provides assistance pursuant to 


        this paragraph, the Governor of the State of New York shall 


        submit a report to the Administrator on the results of projects 


        assisted.


            ``(3) Matching requirements.--Federal assistance provided 


        under this subsection shall not exceed 50 percent of the total 


        cost of the protection program being carried out for any 


        particular watershed or ground water recharge area.


            ``(4) Authorization.--There are authorized to be 


        appropriated to the Administrator to carry out this subsection 


        for





[[Page 110 STAT. 1660]]





        each of fiscal years 1997 through 2003, $15,000,000 for the 


        purpose of providing assistance to the State of New York to 


        carry out paragraph (1).''.





SEC. 129. FEDERAL AGENCIES.





    (a) In General.--Section 1447 (42 U.S.C. 300j-6) is amended by 


redesignating subsection (c) as subsection (d) and by striking 


subsections (a) and (b) and inserting the following:


    ``(a) In General.--Each department, agency, and instrumentality of 


the executive, legislative, and judicial branches of the Federal 


Government--


            ``(1) owning or operating any facility in a wellhead 


        protection area;


            ``(2) engaged in any activity at such facility resulting, or 


        which may result, in the contamination of water supplies in any 


        such area;


            ``(3) owning or operating any public water system; or


            ``(4) engaged in any activity resulting, or which may result 


        in, underground injection which endangers drinking water (within 


        the meaning of section 1421(d)(2)),





shall be subject to, and comply with, all Federal, State, interstate, 


and local requirements, both substantive and procedural (including any 


requirement for permits or reporting or any provisions for injunctive 


relief and such sanctions as may be imposed by a court to enforce such 


relief), respecting the protection of such wellhead areas, respecting 


such public water systems, and respecting any underground injection in 


the same manner and to the same extent as any person is subject to such 


requirements, including the payment of reasonable service charges. The 


Federal, State, interstate, and local substantive and procedural 


requirements referred to in this subsection include, but are not limited 


to, all administrative orders and all civil and administrative penalties 


and fines, regardless of whether such penalties or fines are punitive or 


coercive in nature or are imposed for isolated, intermittent, or 


continuing violations. The United States hereby expressly waives any 


immunity otherwise applicable to the United States with respect to any 


such substantive or procedural requirement (including, but not limited 


to, any injunctive relief, administrative order or civil or 


administrative penalty or fine referred to in the preceding sentence, or 


reasonable service charge). The reasonable service charges referred to 


in this subsection include, but are not limited to, fees or charges 


assessed in connection with the processing and issuance of permits, 


renewal of permits, amendments to permits, review of plans, studies, and 


other documents, and inspection and monitoring of facilities, as well as 


any other nondiscriminatory charges that are assessed in connection with 


a Federal, State, interstate, or local regulatory program respecting the 


protection of wellhead areas or public water systems or respecting any 


underground injection. Neither the United States, nor any agent, 


employee, or officer thereof, shall be immune or exempt from any process 


or sanction of any State or Federal Court with respect to the 


enforcement of any such injunctive relief. No agent, employee, or 


officer of the United States shall be personally liable for any civil 


penalty under any Federal, State, interstate, or local law concerning 


the protection of wellhead areas or public water systems or concerning 


underground injection with respect to any act or omission within the 


scope of the official duties of the agent, employee, or officer.





[[Page 110 STAT. 1661]]





An agent, employee, or officer of the United States shall be subject to 


any criminal sanction (including, but not limited to, any fine or 


imprisonment) under any Federal or State requirement adopted pursuant to 


this title, but no department, agency, or instrumentality of the 


executive, legislative, or judicial branch of the Federal Government 


shall be subject to any such sanction. The President may exempt any 


facility of any department, agency, or instrumentality in the executive 


branch from compliance with such a requirement if he determines it to be 


in the paramount interest of the United States to do so. No such 


exemption shall be granted due to lack of appropriation unless the 


President shall have specifically requested such appropriation as a part 


of the budgetary process and the Congress shall have failed to make 


available such requested appropriation. Any exemption shall be for a 


period not in excess of 1 year, but additional exemptions may be granted 


for periods not to exceed 1 year upon the President's making a new 


determination. <<NOTE: President. Reports.>> The President shall report 


each January to the Congress all exemptions from the requirements of 


this section granted during the preceding calendar year, together with 


his reason for granting each such exemption.





    ``(b) Administrative Penalty Orders.--


            ``(1) In general.--If the Administrator finds that a Federal 


        agency has violated an applicable requirement under this title, 


        the Administrator may issue a penalty order assessing a penalty 


        against the Federal agency.


            ``(2) Penalties.--The Administrator may, after notice to the 


        agency, assess a civil penalty against the agency in an amount 


        not to exceed $25,000 per day per violation.


            ``(3) Procedure.--Before an administrative penalty order 


        issued under this subsection becomes final, the Administrator 


        shall provide the agency an opportunity to confer with the 


        Administrator and shall provide the agency notice and an 


        opportunity for a hearing on the record in accordance with 


        chapters 5 and 7 of title 5, United States Code.


            ``(4) Public review.--


                    ``(A) In general.--Any interested person may obtain 


                review of an administrative penalty order issued under 


                this subsection. The review may be obtained in the 


                United States District Court for the District of 


                Columbia or in the United States District Court for the 


                district in which the violation is alleged to have 


                occurred by the filing of a complaint with the court 


                within the 30-day period beginning on the date the 


                penalty order becomes final. The person filing the 


                complaint shall simultaneously send a copy of the 


                complaint by certified mail to the Administrator and the 


                Attorney General.


                    ``(B) Record.--The Administrator shall promptly file 


                in the court a certified copy of the record on which the 


                order was issued.


                    ``(C) Standard of review.--The court shall not set 


                aside or remand the order unless the court finds that 


                there is not substantial evidence in the record, taken 


                as a whole, to support the finding of a violation or 


                that the assessment of the penalty by the Administrator 


                constitutes an abuse of discretion.


                    ``(D) Prohibition on additional penalties.--The 


                court may not impose an additional civil penalty for a





[[Page 110 STAT. 1662]]





                violation that is subject to the order unless the court 


                finds that the assessment constitutes an abuse of 


                discretion by the Administrator.





    ``(c) Limitation on State Use of Funds Collected From Federal 


Government.--Unless a State law in effect on the date of enactment of 


the Safe Drinking Water Act Amendments of 1996 or a State constitution 


requires the funds to be used in a different manner, all funds collected 


by a State from the Federal Government from penalties and fines imposed 


for violation of any substantive or procedural requirement referred to 


in subsection (a) shall be used by the State only for projects designed 


to improve or protect the environment or to defray the costs of 


environmental protection or enforcement.''.


    (b) Citizen Enforcement.--(1) The first sentence of section 1449(a) 


(42 U.S.C. 300j-8(a)) is amended--


            (A) in paragraph (1), by striking ``, or'' and inserting a 


        semicolon;


            (B) in paragraph (2), by striking the period at the end and 


        inserting ``; or''; and


            (C) by adding at the end the following:


            ``(3) for the collection of a penalty by the United States 


        Government (and associated costs and interest) against any 


        Federal agency that fails, by the date that is 18 months after 


        the effective date of a final order to pay a penalty assessed by 


        the Administrator under section 1429(b), to pay the penalty.''.





    (2) Subsection (b) of section 1449 (42 U.S.C. 300j-8(b)) is amended 


by striking the period at the end of paragraph (2) and inserting ``; 


or'' and by adding the following new paragraph after paragraph (2):


            ``(3) under subsection (a)(3) prior to 60 days after the 


        plaintiff has given notice of such action to the Attorney 


        General and to the Federal agency.''.





    (c) Washington Aqueduct.--Section 1447 (42 U.S.C. 300j-6) is amended 


by adding at the end the following:


    ``(e) Washington Aqueduct.--The Secretary of the Army shall not pass 


the cost of any penalty assessed under this title on to any customer, 


user, or other purchaser of drinking water from the Washington Aqueduct 


system, including finished water from the Dalecarlia or McMillan 


treatment plant.''.





SEC. 130. STATE REVOLVING LOAN FUNDS.





    Part E (42 U.S.C. 300j et seq.) is amended by adding the following 


                     new section after section 1451:





    ``Sec. 1452. <<NOTE: 42 USC 300j-12.>> (a) General Authority.--


            ``(1) Grants to states to establish state loan funds.--


                    ``(A) In general.--The Administrator shall offer to 


                enter into agreements with eligible States to make 


                capitalization grants, including letters of credit, to 


                the States under this subsection to further the health 


                protection objectives of this title, promote the 


                efficient use of fund resources, and for other purposes 


                as are specified in this title.


                    ``(B) Establishment of fund.--To be eligible to 


                receive a capitalization grant under this section, a 


                State shall





[[Page 110 STAT. 1663]]





                establish a drinking water treatment revolving loan fund 


                (referred to in this section as a `State loan fund') and 


                comply with the other requirements of this section. Each 


                grant to a State under this section shall be deposited 


                in the State loan fund established by the State, except 


                as otherwise provided in this section and in other 


                provisions of this title. No funds authorized by other 


                provisions of this title to be used for other purposes 


                specified in this title shall be deposited in any State 


                loan fund.


                    ``(C) Extended period.--The grant to a State shall 


                be available to the State for obligation during the 


                fiscal year for which the funds are authorized and 


                during the following fiscal year, except that grants 


                made available from funds provided prior to fiscal year 


                1997 shall be available for obligation during each of 


                the fiscal years 1997 and 1998.


                    ``(D) Allotment formula.--Except as otherwise 


                provided in this section, funds made available to carry 


                out this section shall be allotted to States that have 


                entered into an agreement pursuant to this section 


                (other than the District of Columbia) in accordance 


                with--


                          ``(i) for each of fiscal years 1995 through 


                      1997, a formula that is the same as the formula 


                      used to distribute public water system supervision 


                      grant funds under section 1443 in fiscal year 


                      1995, except that the minimum proportionate share 


                      established in the formula shall be 1 percent of 


                      available funds and the formula shall be adjusted 


                      to include a minimum proportionate share for the 


                      State of Wyoming and the District of Columbia; and


                          ``(ii) for fiscal year 1998 and each 


                      subsequent fiscal year, a formula that allocates 


                      to each State the proportional share of the State 


                      needs identified in the most recent survey 


                      conducted pursuant to subsection (h), except that 


                      the minimum proportionate share provided to each 


                      State shall be the same as the minimum 


                      proportionate share provided under clause (i).


                    ``(E) Reallotment.--The grants not obligated by the 


                last day of the period for which the grants are 


                available shall be reallotted according to the 


                appropriate criteria set forth in subparagraph (D), 


                except that the Administrator may reserve and allocate 


                10 percent of the remaining amount for financial 


                assistance to Indian Tribes in addition to the amount 


                allotted under subsection (i) and none of the funds 


                reallotted by the Administrator shall be reallotted to 


                any State that has not obligated all sums allotted to 


                the State pursuant to this section during the period in 


                which the sums were available for obligation.


                    ``(F) Nonprimacy states.--The State allotment for a 


                State not exercising primary enforcement responsibility 


                for public water systems shall not be deposited in any 


                such fund but shall be allotted by the Administrator 


                under this subparagraph. Pursuant to section 


                1443(a)(9)(A) such sums allotted under this subparagraph 


                shall be reserved as needed by the Administrator to 


                exercise primary enforcement responsibility under this 


                title in such State and the remainder shall be 


                reallotted to States exercising primary





[[Page 110 STAT. 1664]]





                enforcement responsibility for public water systems for 


                deposit in such funds. Whenever the Administrator makes 


                a final determination pursuant to section 1413(b) that 


                the requirements of section 1413(a) are no longer being 


                met by a State, additional grants for such State under 


                this title shall be immediately terminated by the 


                Administrator. This subparagraph shall not apply to any 


                State not exercising primary enforcement responsibility 


                for public water systems as of the date of enactment of 


                the Safe Drinking Water Act Amendments of 1996.


                    ``(G) Other programs.--


                          ``(i) New system capacity.--Beginning in 


                      fiscal year 1999, the Administrator shall withhold 


                      20 percent of each capitalization grant made 


                      pursuant to this section to a State unless the 


                      State has met the requirements of section 1420(a) 


                      (relating to capacity development) and shall 


                      withhold 10 percent for fiscal year 2001, 15 


                      percent for fiscal year 2002, and 20 percent for 


                      fiscal year 2003 if the State has not complied 


                      with the provisions of section 1420(c) (relating 


                      to capacity development strategies). Not more than 


                      a total of 20 percent of the capitalization grants 


                      made to a State in any fiscal year may be withheld 


                      under the preceding provisions of this clause. All 


                      funds withheld by the Administrator pursuant to 


                      this clause shall be reallotted by the 


                      Administrator on the basis of the same ratio as is 


                      applicable to funds allotted under subparagraph 


                      (D). None of the funds reallotted by the 


                      Administrator pursuant to this paragraph shall be 


                      allotted to a State unless the State has met the 


                      requirements of section 1420 (relating to capacity 


                      development).


                          ``(ii) Operator certification.--The 


                      Administrator shall withhold 20 percent of each 


                      capitalization grant made pursuant to this section 


                      unless the State has met the requirements of 1419 


                      (relating to operator certification). All funds 


                      withheld by the Administrator pursuant to this 


                      clause shall be reallotted by the Administrator on 


                      the basis of the same ratio as applicable to funds 


                      allotted under subparagraph (D). None of the funds 


                      reallotted by the Administrator pursuant to this 


                      paragraph shall be allotted to a State unless the 


                      State has met the requirements of section 1419 


                      (relating to operator certification).


            ``(2) Use of funds.--Except as otherwise authorized by this 


        title, amounts deposited in a State loan fund, including loan 


        repayments and interest earned on such amounts, shall be used 


        only for providing loans or loan guarantees, or as a source of 


        reserve and security for leveraged loans, the proceeds of which 


        are deposited in a State loan fund established under paragraph 


        (1), or other financial assistance authorized under this section 


        to community water systems and nonprofit noncommunity water 


        systems, other than systems owned by Federal agencies. Financial 


        assistance under this section may be used by a public water 


        system only for expenditures (not including monitoring, 


        operation, and maintenance expenditures) of a type or category 


        which the Administrator has determined, through guidance, will 


        facilitate compliance with





[[Page 110 STAT. 1665]]





        national primary drinking water regulations applicable to the 


        system under section 1412 or otherwise significantly further the 


        health protection objectives of this title. The funds may also 


        be used to provide loans to a system referred to in section 


        1401(4)(B) for the purpose of providing the treatment described 


        in section 1401(4)(B)(i)(III). The funds shall not be used for 


        the acquisition of real property or interests therein, unless 


        the acquisition is integral to a project authorized by this 


        paragraph and the purchase is from a willing seller. Of the 


        amount credited to any State loan fund established under this 


        section in any fiscal year, 15 percent shall be available solely 


        for providing loan assistance to public water systems which 


        regularly serve fewer than 10,000 persons to the extent such 


        funds can be obligated for eligible projects of public water 


        systems.


            ``(3) Limitation.--


                    ``(A) In general.--Except as provided in 


                subparagraph (B), no assistance under this section shall 


                be provided to a public water system that--


                          ``(i) does not have the technical, managerial, 


                      and financial capability to ensure compliance with 


                      the requirements of this title; or


                          ``(ii) is in significant noncompliance with 


                      any requirement of a national primary drinking 


                      water regulation or variance.


                    ``(B) Restructuring.--A public water system 


                described in subparagraph (A) may receive assistance 


                under this section if--


                          ``(i) the use of the assistance will ensure 


                      compliance; and


                          ``(ii) if subparagraph (A)(i) applies to the 


                      system, the owner or operator of the system agrees 


                      to undertake feasible and appropriate changes in 


                      operations (including ownership, management, 


                      accounting, rates, maintenance, consolidation, 


                      alternative water supply, or other procedures) if 


                      the State determines that the measures are 


                      necessary to ensure that the system has the 


                      technical, managerial, and financial capability to 


                      comply with the requirements of this title over 


                      the long term.


                    ``(C) Review.--Prior to providing assistance under 


                this section to a public water system that is in 


                significant noncompliance with any requirement of a 


                national primary drinking water regulation or variance, 


                the State shall conduct a review to determine whether 


                subparagraph (A)(i) applies to the system.





    ``(b) Intended Use Plans.--


            ``(1) In general.--After providing for public review and 


        comment, each State that has entered into a capitalization 


        agreement pursuant to this section shall annually prepare a plan 


        that identifies the intended uses of the amounts available to 


        the State loan fund of the State.


            ``(2) Contents.--An intended use plan shall include--


                    ``(A) a list of the projects to be assisted in the 


                first fiscal year that begins after the date of the 


                plan, including a description of the project, the 


                expected terms of financial assistance, and the size of 


                the community served;





[[Page 110 STAT. 1666]]





                    ``(B) the criteria and methods established for the 


                distribution of funds; and


                    ``(C) a description of the financial status of the 


                State loan fund and the short-term and long-term goals 


                of the State loan fund.


            ``(3) Use of funds.--


                    ``(A) In general.--An intended use plan shall 


                provide, to the maximum extent practicable, that 


                priority for the use of funds be given to projects 


                that--


                          ``(i) address the most serious risk to human 


                      health;


                          ``(ii) are necessary to ensure compliance with 


                      the requirements of this title (including 


                      requirements for filtration); and


                          ``(iii) assist systems most in need on a per 


                      household basis according to State affordability 


                      criteria.


                    ``(B) <<NOTE: Publications. Records.>> List of 


                projects.--Each State shall, after notice and 


                opportunity for public comment, publish and periodically 


                update a list of projects in the State that are eligible 


                for assistance under this section, including the 


                priority assigned to each project and, to the extent 


                known, the expected funding schedule for each project.





    ``(c) Fund Management.--Each State loan fund under this section 


shall be established, maintained, and credited with repayments and 


interest. The fund corpus shall be available in perpetuity for providing 


financial assistance under this section. To the extent amounts in the 


fund are not required for current obligation or expenditure, such 


amounts shall be invested in interest bearing obligations.


    ``(d) Assistance for Disadvantaged Communities.--


            ``(1) Loan subsidy.--Notwithstanding any other provision of 


        this section, in any case in which the State makes a loan 


        pursuant to subsection (a)(2) to a disadvantaged community or to 


        a community that the State expects to become a disadvantaged 


        community as the result of a proposed project, the State may 


        provide additional subsidization (including forgiveness of 


        principal).


            ``(2) Total amount of subsidies.--For each fiscal year, the 


        total amount of loan subsidies made by a State pursuant to 


        paragraph (1) may not exceed 30 percent of the amount of the 


        capitalization grant received by the State for the year.


            ``(3) Definition of disadvantaged community.--In this 


        subsection, the term `disadvantaged community' means the service 


        area of a public water system that meets affordability criteria 


        established after public review and comment by the State in 


        which the public water system is located. The Administrator may 


        publish information to assist States in establishing 


        affordability criteria.





    ``(e) State Contribution.--Each agreement under subsection (a) shall 


require that the State deposit in the State loan fund from State moneys 


an amount equal to at least 20 percent of the total amount of the grant 


to be made to the State on or before the date on which the grant payment 


is made to the State, except that a State shall not be required to 


deposit such amount into the fund prior to the date on which each grant 


payment is made for fiscal years 1994, 1995, 1996, and 1997 if the State 


deposits the State contribution amount into the State loan fund prior to 


September 30, 1999.





[[Page 110 STAT. 1667]]





    ``(f) Types of Assistance.--Except as otherwise limited by State 


law, the amounts deposited into a State loan fund under this section may 


be used only--


            ``(1) to make loans, on the condition that--


                    ``(A) the interest rate for each loan is less than 


                or equal to the market interest rate, including an 


                interest free loan;


                    ``(B) principal and interest payments on each loan 


                will commence not later than 1 year after completion of 


                the project for which the loan was made, and each loan 


                will be fully amortized not later than 20 years after 


                the completion of the project, except that in the case 


                of a disadvantaged community (as defined in subsection 


                (d)(3)), a State may provide an extended term for a 


                loan, if the extended term--


                          ``(i) terminates not later than the date that 


                      is 30 years after the date of project completion; 


                      and


                          ``(ii) does not exceed the expected design 


                      life of the project;


                    ``(C) the recipient of each loan will establish a 


                dedicated source of revenue (or, in the case of a 


                privately owned system, demonstrate that there is 


                adequate security) for the repayment of the loan; and


                    ``(D) the State loan fund will be credited with all 


                payments of principal and interest on each loan;


            ``(2) to buy or refinance the debt obligation of a 


        municipality or an intermunicipal or interstate agency within 


        the State at an interest rate that is less than or equal to the 


        market interest rate in any case in which a debt obligation is 


        incurred after July 1, 1993;


            ``(3) to guarantee, or purchase insurance for, a local 


        obligation (all of the proceeds of which finance a project 


        eligible for assistance under this section) if the guarantee or 


        purchase would improve credit market access or reduce the 


        interest rate applicable to the obligation;


            ``(4) as a source of revenue or security for the payment of 


        principal and interest on revenue or general obligation bonds 


        issued by the State if the proceeds of the sale of the bonds 


        will be deposited into the State loan fund; and


            ``(5) to earn interest on the amounts deposited into the 


        State loan fund.





    ``(g) Administration of State Loan Funds.--


            ``(1) Combined financial administration.--Notwithstanding 


        subsection (c), a State may (as a convenience and to avoid 


        unnecessary administrative costs) combine, in accordance with 


        State law, the financial administration of a State loan fund 


        established under this section with the financial administration 


        of any other revolving fund established by the State if 


        otherwise not prohibited by the law under which the State loan 


        fund was established and if the Administrator determines that--


                    ``(A) the grants under this section, together with 


                loan repayments and interest, will be separately 


                accounted for and used solely for the purposes specified 


                in subsection (a); and


                    ``(B) the authority to establish assistance 


                priorities and carry out oversight and related 


                activities (other than financial administration) with 


                respect to assistance remains with





[[Page 110 STAT. 1668]]





                the State agency having primary responsibility for 


                administration of the State program under section 1413, 


                after consultation with other appropriate State agencies 


                (as determined by the State): Provided, That in 


                nonprimacy States eligible to receive assistance under 


                this section, the Governor shall determine which State 


                agency will have authority to establish priorities for 


                financial assistance from the State loan fund.


            ``(2) Cost of administering fund.--Each State may annually 


        use up to 4 percent of the funds allotted to the State under 


        this section to cover the reasonable costs of administration of 


        the programs under this section, including the recovery of 


        reasonable costs expended to establish a State loan fund which 


        are incurred after the date of enactment of this section, and to 


        provide technical assistance to public water systems within the 


        State. For fiscal year 1995 and each fiscal year thereafter, 


        each State may use up to an additional 10 percent of the funds 


        allotted to the State under this section--


                    ``(A) for public water system supervision programs 


                under section 1443(a);


                    ``(B) to administer or provide technical assistance 


                through source water protection programs;


                    ``(C) to develop and implement a capacity 


                development strategy under section 1420(c); and


                    ``(D) for an operator certification program for 


                purposes of meeting the requirements of section 1419,


        if the State matches the expenditures with at least an equal 


        amount of State funds. At least half of the match must be 


        additional to the amount expended by the State for public water 


        supervision in fiscal year 1993. An additional 2 percent of the 


        funds annually allotted to each State under this section may be 


        used by the State to provide technical assistance to public 


        water systems serving 10,000 or fewer persons in the State. 


        Funds utilized under subparagraph (B) shall not be used for 


        enforcement actions.


            ``(3) <<NOTE: Publication.>> Guidance and regulations.--The 


        Administrator shall publish guidance and promulgate regulations 


        as may be necessary to carry out the provisions of this section, 


        including--


                    ``(A) provisions to ensure that each State commits 


                and expends funds allotted to the State under this 


                section as efficiently as possible in accordance with 


                this title and applicable State laws;


                    ``(B) guidance to prevent waste, fraud, and abuse; 


                and


                    ``(C) guidance to avoid the use of funds made 


                available under this section to finance the expansion of 


                any public water system in anticipation of future 


                population growth.


        The guidance and regulations shall also ensure that the States, 


        and public water systems receiving assistance under this 


        section, use accounting, audit, and fiscal procedures that 


        conform to generally accepted accounting standards.


            ``(4) State report.--Each State administering a loan fund 


        and assistance program under this subsection shall publish and 


        submit to the Administrator a report every 2 years on its 


        activities under this section, including the findings of the 


        most recent audit of the fund and the entire State allotment. 


        The Administrator shall periodically audit all State loan funds 


        established by, and all other amounts allotted to, the States





[[Page 110 STAT. 1669]]





        pursuant to this section in accordance with procedures 


        established by the Comptroller General.





    ``(h) <<NOTE: Reports.>> Needs Survey.--The Administrator shall 


conduct an assessment of water system capital improvement needs of all 


eligible public water systems in the United States and submit a report 


to the Congress containing the results of the assessment within 180 days 


after the date of enactment of the Safe Drinking Water Act Amendments of 


1996 and every 4 years thereafter.





    ``(i) Indian Tribes.--


            ``(1) In general.--1\1/2\ percent of the amounts 


        appropriated annually to carry out this section may be used by 


        the Administrator to make grants to Indian Tribes and Alaska 


        Native villages that have not otherwise received either grants 


        from the Administrator under this section or assistance from 


        State loan funds established under this section. The grants may 


        only be used for expenditures by tribes and villages for public 


        water system expenditures referred to in subsection (a)(2).


            ``(2) Use of funds.--Funds reserved pursuant to paragraph 


        (1) shall be used to address the most significant threats to 


        public health associated with public water systems that serve 


        Indian Tribes, as determined by the Administrator in 


        consultation with the Director of the Indian Health Service and 


        Indian Tribes.


            ``(3) Alaska native villages.--In the case of a grant for a 


        project under this subsection in an Alaska Native village, the 


        Administrator is also authorized to make grants to the State of 


        Alaska for the benefit of Native villages. An amount not to 


        exceed 4 percent of the grant amount may be used by the State of 


        Alaska for project management.


            ``(4) Needs assessment.--The Administrator, in consultation 


        with the Director of the Indian Health Service and Indian 


        Tribes, shall, in accordance with a schedule that is consistent 


        with the needs surveys conducted pursuant to subsection (h), 


        prepare surveys and assess the needs of drinking water treatment 


        facilities to serve Indian Tribes, including an evaluation of 


        the public water systems that pose the most significant threats 


        to public health.





    ``(j) Other Areas.--Of the funds annually available under this 


section for grants to States, the Administrator shall make allotments in 


accordance with section 1443(a)(4) for the Virgin Islands, the 


Commonwealth of the Northern Mariana Islands, American Samoa, and Guam. 


The grants allotted as provided in this subsection may be provided by 


the Administrator to the governments of such areas, to public water 


systems in such areas, or to both, to be used for the public water 


system expenditures referred to in subsection (a)(2). The grants, and 


grants for the District of Columbia, shall not be deposited in State 


loan funds. The total allotment of grants under this section for all 


areas described in this subsection in any fiscal year shall not exceed 


0.33 percent of the aggregate amount made available to carry out this 


section in that fiscal year.


    ``(k) Other Authorized Activities.--


            ``(1) In general.--Notwithstanding subsection (a)(2), a 


        State may take each of the following actions:


                    ``(A) Provide assistance, only in the form of a 


                loan, to one or more of the following:





[[Page 110 STAT. 1670]]





                          ``(i) Any public water system described in 


                      subsection (a)(2) to acquire land or a 


                      conservation easement from a willing seller or 


                      grantor, if the purpose of the acquisition is to 


                      protect the source water of the system from 


                      contamination and to ensure compliance with 


                      national primary drinking water regulations.


                          ``(ii) Any community water system to implement 


                      local, voluntary source water protection measures 


                      to protect source water in areas delineated 


                      pursuant to section 1453, in order to facilitate 


                      compliance with national primary drinking water 


                      regulations applicable to the system under section 


                      1412 or otherwise significantly further the health 


                      protection objectives of this title. Funds 


                      authorized under this clause may be used to fund 


                      only voluntary, incentive-based mechanisms.


                          ``(iii) Any community water system to provide 


                      funding in accordance with section 


                      1454(a)(1)(B)(i).


                    ``(B) Provide assistance, including technical and 


                financial assistance, to any public water system as part 


                of a capacity development strategy developed and 


                implemented in accordance with section 1420(c).


                    ``(C) Make expenditures from the capitalization 


                grant of the State for fiscal years 1996 and 1997 to 


                delineate and assess source water protection areas in 


                accordance with section 1453, except that funds set 


                aside for such expenditure shall be obligated within 4 


                fiscal years.


                    ``(D) Make expenditures from the fund for the 


                establishment and implementation of wellhead protection 


                programs under section 1428.


            ``(2) Limitation.--For each fiscal year, the total amount of 


        assistance provided and expenditures made by a State under this 


        subsection may not exceed 15 percent of the amount of the 


        capitalization grant received by the State for that year and may 


        not exceed 10 percent of that amount for any one of the 


        following activities:


                    ``(A) To acquire land or conservation easements 


                pursuant to paragraph (1)(A)(i).


                    ``(B) To provide funding to implement voluntary, 


                incentive-based source water quality protection measures 


                pursuant to clauses (ii) and (iii) of paragraph (1)(A).


                    ``(C) To provide assistance through a capacity 


                development strategy pursuant to paragraph (1)(B).


                    ``(D) To make expenditures to delineate or assess 


                source water protection areas pursuant to paragraph 


                (1)(C).


                    ``(E) To make expenditures to establish and 


                implement wellhead protection programs pursuant to 


                paragraph (1)(D).


            ``(3) Statutory construction.--Nothing in this section 


        creates or conveys any new authority to a State, political 


        subdivision of a State, or community water system for any new 


        regulatory measure, or limits any authority of a State, 


        political subdivision of a State or community water system.





    ``(l) Savings.--The failure or inability of any public water system 


to receive funds under this section or any other loan or grant program, 


or any delay in obtaining the funds, shall not alter the obligation of 


the system to comply in a timely manner with all applicable drinking 


water standards and requirements of this title.





[[Page 110 STAT. 1671]]





    ``(m) Authorization of Appropriations.--There are authorized to be 


appropriated to carry out the purposes of this section $599,000,000 for 


the fiscal year 1994 and $1,000,000,000 for each of the fiscal years 


1995 through 2003. To the extent amounts authorized to be appropriated 


under this subsection in any fiscal year are not appropriated in that 


fiscal year, such amounts are authorized to be appropriated in a 


subsequent fiscal year (prior to the fiscal year 2004). Such sums shall 


remain available until expended.


    ``(n) Health Effects Studies.--From funds appropriated pursuant to 


this section for each fiscal year, the Administrator shall reserve 


$10,000,000 for health effects studies on drinking water contaminants 


authorized by the Safe Drinking Water Act Amendments of 1996. In 


allocating funds made available under this subsection, the Administrator 


shall give priority to studies concerning the health effects of 


cryptosporidium (as authorized by section 1458(c)), disinfection 


byproducts (as authorized by section 1458(c)), and arsenic (as 


authorized by section 1412(b)(12)(A)), and the implementation of a plan 


for studies of subpopulations at greater risk of adverse effects (as 


authorized by section 1458(a)).


    ``(o) Monitoring for Unregulated Contaminants.--From funds 


appropriated pursuant to this section for each fiscal year beginning 


with fiscal year 1998, the Administrator shall reserve $2,000,000 to pay 


the costs of monitoring for unregulated contaminants under section 


1445(a)(2)(C).


    ``(p) Demonstration Project for State of Virginia.--Notwithstanding 


the other provisions of this section limiting the use of funds deposited 


in a State loan fund from any State allotment, the State of Virginia 


may, as a single demonstration and with the approval of the Virginia 


General Assembly and the Administrator, conduct a program to demonstrate 


alternative approaches to intergovernmental coordination to assist in 


the financing of new drinking water facilities in the following rural 


communities in southwestern Virginia where none exists on the date of 


enactment of the Safe Drinking Water Act Amendments of 1996 and where 


such communities are experiencing economic hardship: Lee County, Wise 


County, Scott County, Dickenson County, Russell County, Buchanan County, 


Tazewell County, and the city of Norton, Virginia. The funds allotted to 


that State and deposited in the State loan fund may be loaned to a 


regional endowment fund for the purpose set forth in this subsection 


under a plan to be approved by the Administrator. The plan may include 


an advisory group that includes representatives of such counties.


    ``(q) Small System Technical Assistance.--The Administrator may 


reserve up to 2 percent of the total funds appropriated pursuant to 


subsection (m) for each of the fiscal years 1997 through 2003 to carry 


out the provisions of section 1442(e) (relating to technical assistance 


for small systems), except that the total amount of funds made available 


for such purpose in any fiscal year through appropriations (as 


authorized by section 1442(e)) and reservations made pursuant to this 


subsection shall not exceed the amount authorized by section 1442(e).


    ``(r) Evaluation.--The Administrator shall conduct an evaluation of 


the effectiveness of the State loan funds through fiscal year 2001. The 


evaluation shall be submitted to the Congress at the same time as the 


President submits to the Congress, pursuant to section 1108 of title 31, 


United States Code, an appropriations





[[Page 110 STAT. 1672]]





request for fiscal year 2003 relating to the budget of the Environmental 


Protection Agency.''.





SEC. 131. STATE GROUND WATER PROTECTION GRANTS.





    Part C (42 U.S.C. 300h et seq.) is amended by adding at the end the 


                               following:





    ``Sec. 1429. <<NOTE: Publication. Regulations. 42 USC 300h-8.>> (a) 


In General.--The Administrator may make a grant to a State for the 


development and implementation of a State program to ensure the 


coordinated and comprehensive protection of ground water resources 


within the State.





    ``(b) Guidance.--Not later than 1 year after the date of enactment 


of the Safe Drinking Water Act Amendments of 1996, and annually 


thereafter, the Administrator shall publish guidance that establishes 


procedures for application for State ground


water protection program assistance and that identifies key elements of 


State ground water protection programs.





    ``(c) Conditions of Grants.--


            ``(1) In general.--The Administrator shall award grants to 


        States that submit an application that is approved by the 


        Administrator. The Administrator shall determine the amount of a 


        grant awarded pursuant to this paragraph on the basis of an 


        assessment of the extent of ground water resources in the State 


        and the likelihood that awarding the grant will result in 


        sustained and reliable protection of ground water quality.


            ``(2) Innovative program grants.--The Administrator may also 


        award a grant pursuant to this subsection for innovative 


        programs proposed by a State for the prevention of ground water 


        contamination.


            ``(3) Allocation of funds.--The Administrator shall, at a 


        minimum, ensure that, for each fiscal year, not less than 1 


        percent of funds made available to the Administrator by 


        appropriations to carry out this section are allocated to each 


        State that submits an application that is approved by the 


        Administrator pursuant to this section.


            ``(4) Limitation on grants.--No grant awarded by the 


        Administrator may be used for a project to remediate ground 


        water contamination.





    ``(d) Amount of Grants.--The amount of a grant awarded pursuant to 


paragraph (1) shall not exceed 50 percent of the eligible costs of 


carrying out the ground water protection program that is the subject of 


the grant (as determined by the Administrator) for the 1-year period 


beginning on the date that the grant is awarded. The State shall pay a 


State share to cover the costs of the ground water protection program 


from State funds in an amount that is not less than 50 percent of the 


cost of conducting the program.


    ``(e) Evaluations and Reports.--Not later than 3 years after the 


date of enactment of the Safe Drinking Water Act Amendments of 1996, and 


every 3 years thereafter, the Administrator shall evaluate the State 


ground water protection programs that are the subject of grants awarded 


pursuant to this section and report to the Congress on the status of 


ground water quality in the United States and the effectiveness of State 


programs for ground water protection.





[[Page 110 STAT. 1673]]





    ``(f) Authorization of Appropriations.--There are authorized to be 


appropriated to carry out this section $15,000,000 for each of fiscal 


years 1997 through 2003.''.





SEC. 132. SOURCE WATER ASSESSMENT.





    (a) In General.--Part E (42 U.S.C. 300j et seq.) is amended by 


                    adding at the end the following:





    ``Sec. 1453. <<NOTE: 42 USC 300j-13.>> (a) Source Water 


Assessment.--


            ``(1) <<NOTE: Publication.>> Guidance.--Within 12 months 


        after the date of enactment of the Safe Drinking Water Act 


        Amendments of 1996, after notice and comment, the Administrator 


        shall publish guidance for States exercising primary enforcement 


        responsibility for public water systems to carry out directly or 


        through delegation (for the protection and benefit of public 


        water systems and for the support of monitoring flexibility) a 


        source water assessment program within the State's boundaries. 


        Each State adopting modifications to monitoring requirements 


        pursuant to section 1418(b) shall, prior to adopting such 


        modifications, have an approved source water assessment program 


        under this section and shall carry out the program either 


        directly or through delegation.


            ``(2) Program requirements.--A source water assessment 


        program under this subsection shall--


                    ``(A) delineate the boundaries of the assessment 


                areas in such State from which one or more public water 


                systems in the State receive supplies of drinking water, 


                using all reasonably available hydrogeologic information 


                on the sources of the supply of drinking water in the 


                State and the water flow, recharge, and discharge and 


                any other reliable information as the State deems 


                necessary to adequately determine such areas; and


                    ``(B) identify for contaminants regulated under this 


                title for which monitoring is required under this title 


                (or any unregulated contaminants selected by the State, 


                in its discretion, which the State, for the purposes of 


                this subsection, has determined may present a threat to 


                public health), to the extent practical, the origins 


                within each delineated area of such contaminants to 


                determine the susceptibility of the public water systems 


                in the delineated area to such contaminants.


            ``(3) Approval, implementation, and monitoring relief.--A 


        State source water assessment program under this subsection 


        shall be submitted to the Administrator within 18 months after 


        the Administrator's guidance is issued under this subsection and 


        shall be deemed approved 9 months after the date of such 


        submittal unless the Administrator disapproves the program as 


        provided in section 1428(c). States shall begin implementation 


        of the program immediately after its approval. The 


        Administrator's approval of a State program under this 


        subsection shall include a timetable, established in 


        consultation with the State, allowing not more than 2 years for 


        completion after approval of the program. Public water systems 


        seeking monitoring relief in addition to the interim relief 


        provided under section 1418(a) shall be eligible for monitoring 


        relief, consistent with section 1418(b), upon completion of the 


        assess





[[Page 110 STAT. 1674]]





        ment in the delineated source water assessment area or areas 


        concerned.


            ``(4) Timetable.--The timetable referred to in paragraph (3) 


        shall take into consideration the availability to the State of 


        funds under section 1452 (relating to State loan funds) for 


        assessments and other relevant factors. The Administrator may 


        extend any timetable included in a State program approved under 


        paragraph (3) to extend the period for completion by an 


        additional 18 months.


            ``(5) Demonstration project.--The Administrator shall, as 


        soon as practicable, conduct a demonstration project, in 


        consultation with other Federal agencies, to demonstrate the 


        most effective and protective means of assessing and protecting 


        source waters serving large metropolitan areas and located on 


        Federal lands.


            ``(6) Use of other programs.--To avoid duplication and to 


        encourage efficiency, the program under this section may make 


        use of any of the following:


                    ``(A) Vulnerability assessments, sanitary surveys, 


                and monitoring programs.


                    ``(B) Delineations or assessments of ground water 


                sources under a State wellhead protection program 


                developed pursuant to this section.


                    ``(C) Delineations or assessments of surface or 


                ground water sources under a State pesticide management 


                plan developed pursuant to the Pesticide and Ground 


                Water State Management Plan Regulation (subparts I and J 


                of part 152 of title 40, Code of Federal Regulations), 


                promulgated under section 3(d) of the Federal 


                Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 


                136a(d)).


                    ``(D) Delineations or assessments of surface water 


                sources under a State watershed initiative or to satisfy 


                the watershed criterion for determining if filtration is 


                required under the Surface Water Treatment Rule (section 


                141.70 of title 40, Code of Federal Regulations).


                    ``(E) Delineations or assessments of surface or 


                ground water sources under programs or plans pursuant to 


                the Federal Water Pollution Control Act.


            ``(7) Public availability.--The State shall make the results 


        of the source water assessments conducted under this subsection 


        available to the public.





    ``(b) Approval and Disapproval.--For provisions relating to program 


approval and disapproval, see section 1428(c).''.


    (b) Approval and Disapproval of State Programs.--Section 1428 (42 


U.S.C. 300h-7) is amended as follows:


            (1) Amend the first sentence of subsection (c)(1) to read as 


        follows: ``If, in the judgment of the Administrator, a State 


        program or portion thereof under subsection (a) is not adequate 


        to protect public water systems as required by subsection (a) or 


        a State program under section 1453 or section 1418(b) does not 


        meet the applicable requirements of section 1453 or section 


        1418(b), the Administrator shall disapprove such program or 


        portion thereof.''.


            (2) Add after the second sentence of subsection (c)(1) the 


        following: ``A State program developed pursuant to section 1453 


        or section 1418(b) shall be deemed to meet the applicable 


        requirements of section 1453 or section 1418(b) unless the





[[Page 110 STAT. 1675]]





        Administrator determines within 9 months of the receipt of the 


        program that such program (or portion thereof) does not meet 


        such requirements.''.


            (3) In the third sentence of subsection (c)(1) and in 


        subsection (c)(2), strike ``is inadequate'' and insert ``is 


        disapproved''.


            (4) In subsection (b), add the following before the period 


        at the end of the first sentence: ``and source water assessment 


        programs under section 1453''.





SEC. 133. SOURCE WATER PETITION PROGRAM.





    (a) In General.--Part E (42 U.S.C. 300j et seq.) is amended by 


                    adding at the end the following:





    ``Sec. 1454. <<NOTE: 42 USC 300j-14.>> (a) Petition Program.--


            ``(1) In general.--


                    ``(A) Establishment.--A State may establish a 


                program under which an owner or operator of a community 


                water system in the State, or a municipal or local 


                government or political subdivision of a State, may 


                submit a source water quality protection partnership 


                petition to the State requesting that the State assist 


                in the local development of a voluntary, incentive-based 


                partnership, among the owner, operator, or government 


                and other persons likely to be affected by the 


                recommendations of the partnership, to--


                          ``(i) reduce the presence in drinking water of 


                      contaminants that may be addressed by a petition 


                      by considering the origins of the contaminants, 


                      including to the maximum extent practicable the 


                      specific activities that affect the drinking water 


                      supply of a community;


                          ``(ii) obtain financial or technical 


                      assistance necessary to facilitate establishment 


                      of a partnership, or to develop and implement 


                      recommendations of a partnership for the 


                      protection of source water to assist in the 


                      provision of drinking water that complies with 


                      national primary drinking water regulations with 


                      respect to contaminants addressed by a petition; 


                      and


                          ``(iii) develop recommendations regarding 


                      voluntary and incentive-based strategies for the 


                      long-term protection of the source water of 


                      community water systems.


                    ``(B) Funding.--Each State may--


                          ``(i) use funds set aside pursuant to section 


                      1452(k)(1)(A)(iii) by the State to carry out a 


                      program described in subparagraph (A), including 


                      assistance to voluntary local partnerships for the 


                      development and implementation of partnership 


                      recommendations for the protection of source water 


                      such as source water quality assessment, 


                      contingency plans, and demonstration projects for 


                      partners within a source water area delineated 


                      under section 1453(a); and


                          ``(ii) provide assistance in response to a 


                      petition submitted under this subsection using 


                      funds referred to in subsection (b)(2)(B).





[[Page 110 STAT. 1676]]





            ``(2) Objectives.--The objectives of a petition submitted 


        under this subsection shall be to--


                    ``(A) facilitate the local development of voluntary, 


                incentive-based partnerships among owners and operators 


                of community water systems, governments, and other 


                persons in source water areas; and


                    ``(B) obtain assistance from the State in 


                identifying resources which are available to implement 


                the recommendations of the partnerships to address the 


                origins of drinking water contaminants that may be 


                addressed by a petition (including to the maximum extent 


                practicable the specific activities contributing to the 


                presence of the contaminants) that affect the drinking 


                water supply of a community.


            ``(3) Contaminants addressed by a petition.--A petition 


        submitted to a State under this subsection may address only 


        those contaminants--


                    ``(A) that are pathogenic organisms for which a 


                national primary drinking water regulation has been 


                established or is required under section 1412; or


                    ``(B) for which a national primary drinking water 


                regulation has been promulgated or proposed and that are 


                detected by adequate monitoring methods in the source 


                water at the intake structure or in any collection, 


                treatment, storage, or distribution facilities by the 


                community water systems at levels--


                          ``(i) above the maximum contaminant level; or


                          ``(ii) that are not reliably and consistently 


                      below the maximum contaminant level.


            ``(4) Contents.--A petition submitted under this subsection 


        shall, at a minimum--


                    ``(A) include a delineation of the source water area 


                in the State that is the subject of the petition;


                    ``(B) identify, to the maximum extent practicable, 


                the origins of the drinking water contaminants that may 


                be addressed by a petition (including to the maximum 


                extent practicable the specific activities contributing 


                to the presence of the contaminants) in the source water 


                area delineated under section 1453;


                    ``(C) identify any deficiencies in information that 


                will impair the development of recommendations by the 


                voluntary local partnership to address drinking water 


                contaminants that may be addressed by a petition;


                    ``(D) specify the efforts made to establish the 


                voluntary local partnership and obtain the participation 


                of--


                          ``(i) the municipal or local government or 


                      other political subdivision of the State with 


                      jurisdiction over the source water area delineated 


                      under section 1453; and


                          ``(ii) each person in the source water area 


                      delineated under section 1453--


                                    ``(I) who is likely to be affected 


                                by recommendations of the voluntary 


                                local partnership; and


                                    ``(II) whose participation is 


                                essential to the success of the 


                                partnership;





[[Page 110 STAT. 1677]]





                    ``(E) outline how the voluntary local partnership 


                has or will, during development and implementation of 


                recommendations of the voluntary local partnership, 


                identify, recognize and take into account any voluntary 


                or other activities already being undertaken by persons 


                in the source water area delineated under section 1453 


                under Federal or State law to reduce the likelihood that 


                contaminants will occur in drinking water at levels of 


                public health concern; and


                    ``(F) specify the technical, financial, or other 


                assistance that the voluntary local partnership requests 


                of the State to develop the partnership or to implement 


                recommendations of the partnership.





    ``(b) Approval or Disapproval of Petitions.--


            ``(1) In general.--After providing notice and an opportunity 


        for public comment on a petition submitted under subsection (a), 


        the State shall approve or disapprove the petition, in whole or 


        in part, not later than 120 days after the date of submission of 


        the petition.


            ``(2) Approval.--The State may approve a petition if the 


        petition meets the requirements established under subsection 


        (a). The notice of approval shall, at a minimum, include for 


        informational purposes--


                    ``(A) an identification of technical, financial, or 


                other assistance that the State will provide to assist 


                in addressing the drinking water contaminants that may 


                be addressed by a petition based on--


                          ``(i) the relative priority of the public 


                      health concern identified in the petition with 


                      respect to the other water quality needs 


                      identified by the State;


                          ``(ii) any necessary coordination that the 


                      State will perform of the program established 


                      under this section with programs implemented or 


                      planned by other States under this section; and


                          ``(iii) funds available (including funds 


                      available from a State revolving loan fund 


                      established under title VI of the Federal Water 


                      Pollution Control Act (33 U.S.C. 1381 et seq.)) or 


                      section 1452;


                    ``(B) a description of technical or financial 


                assistance pursuant to Federal and State programs that 


                is available to assist in implementing recommendations 


                of the partnership in the petition, including--


                          ``(i) any program established under the 


                      Federal Water Pollution Control Act (33 U.S.C. 


                      1251 et seq.);


                          ``(ii) the program established under section 


                      6217 of the Coastal Zone Act Reauthorization 


                      Amendments of 1990 (16 U.S.C. 1455b);


                          ``(iii) the agricultural water quality 


                      protection program established under chapter 2 of 


                      subtitle D of title XII of the Food Security Act 


                      of 1985 (16 U.S.C. 3838 et seq.);


                          ``(iv) the sole source aquifer protection 


                      program established under section 1427;


                          ``(v) the community wellhead protection 


                      program established under section 1428;


                          ``(vi) any pesticide or ground water 


                      management plan;





[[Page 110 STAT. 1678]]





                          ``(vii) any voluntary agricultural resource 


                      management plan or voluntary whole farm or whole 


                      ranch management plan developed and implemented 


                      under a process established by the Secretary of 


                      Agriculture; and


                          ``(viii) any abandoned well closure program; 


                      and


                    ``(C) a description of activities that will be 


                undertaken to coordinate Federal and State programs to 


                respond to the petition.


            ``(3) <<NOTE: Notification.>> Disapproval.--If the State 


        disapproves a petition submitted under subsection (a), the State 


        shall notify the entity submitting the petition in writing of 


        the reasons for disapproval. A petition may be resubmitted at 


        any time if--


                    ``(A) new information becomes available;


                    ``(B) conditions affecting the source water that is 


                the subject of the petition change; or


                    ``(C) modifications are made in the type of 


                assistance being requested.





    ``(c) Grants to Support State Programs.--


            ``(1) In general.--The Administrator may make a grant to 


        each State that establishes a program under this section that is 


        approved under paragraph (2). The amount of each grant shall not 


        exceed 50 percent of the cost of administering the program for 


        the year in which the grant is available.


            ``(2) Approval.--In order to receive grant assistance under 


        this subsection, a State shall submit to the Administrator for 


        approval a plan for a source water quality protection 


        partnership program that is consistent with the guidance 


        published under subsection (d). The Administrator shall approve 


        the plan if the plan is consistent with the guidance published 


        under subsection (d).





    ``(d) Guidance.--


            ``(1) <<NOTE: Publication.>> In general.--Not later than 1 


        year after the date of enactment of this section, the 


        Administrator, in consultation with the States, shall publish 


        guidance to assist--


                    ``(A) States in the development of a source water 


                quality protection partnership program; and


                    ``(B) municipal or local governments or political 


                subdivisions of a State and community water systems in 


                the development of source water quality protection 


                partnerships and in the assessment of source water 


                quality.


            ``(2) Contents of the guidance.--The guidance shall, at a 


        minimum--


                    ``(A) recommend procedures for the approval or 


                disapproval by a State of a petition submitted under 


                subsection (a);


                    ``(B) recommend procedures for the submission of 


                petitions developed under subsection (a);


                    ``(C) recommend criteria for the assessment of 


                source water areas within a State; and


                    ``(D) describe technical or financial assistance 


                pursuant to Federal and State programs that is available 


                to address the contamination of sources of drinking 


                water and to develop and respond to petitions submitted 


                under subsection (a).





    ``(e) Authorization of Appropriations.--There are authorized to be 


appropriated to carry out this section $5,000,000 for each





[[Page 110 STAT. 1679]]





of the fiscal years 1997 through 2003. Each State with a plan for a 


program approved under subsection (b) shall receive an equitable portion 


of the funds available for any fiscal year.


    ``(f) Statutory Construction.--Nothing in this section--


            ``(1)(A) creates or conveys new authority to a State, 


        political subdivision of a State, or community water system for 


        any new regulatory measure; or


            ``(B) limits any authority of a State, political 


        subdivision, or community water system; or


            ``(2) precludes a community water system, municipal or local 


        government, or political subdivision of a government from 


        locally developing and carrying out a voluntary, incentive-


        based, source water quality protection partnership to address 


        the origins of drinking water contaminants of public health 


        concern.''.





    (b) Sense of the Congress.--It is the sense of the Congress that 


each State in establishing priorities under section 606(c)(1) of the 


Federal Water Pollution Control Act should give special consideration to 


projects that are eligible for funding under that Act and have been 


recommended pursuant to a petition submitted under section 1454 of the 


Safe Drinking Water Act.





SEC. 134. WATER CONSERVATION PLAN.





    Part E (42 U.S.C. 300j et seq.) is amended by adding at the end the 


                               following:





    ``Sec. 1455. <<NOTE: Federal Register, publication. 42 USC 300j-


15.>> (a) Guidelines.--Not later than 2 years after the date of 


enactment of the Safe Drinking Water Act Amendments of 1996, the 


Administrator shall publish in the Federal Register guidelines for water 


conservation plans for public water systems serving fewer than 3,300 


persons, public water systems serving between 3,300 and 10,000 persons, 


and public water systems serving more than 10,000 persons, taking into 


consideration such factors as water availability and climate.





    ``(b) Loans or Grants.--Within 1 year after publication of the 


guidelines under subsection (a), a State exercising primary enforcement 


responsibility for public water systems may require a public water 


system, as a condition of receiving a loan or grant from a State loan 


fund under section 1452, to submit with its application for such loan or 


grant a water conservation plan consistent with such guidelines.''.





SEC. 135. DRINKING WATER ASSISTANCE TO COLONIAS.





    Part E (42 U.S.C. 300j et seq.) is amended by adding the following 


                     new section at the end thereof:





    ``Sec. 1456. <<NOTE: 42 USC 300j-16.>> (a) Definitions.--As used in 


this section:


            ``(1) Border state.--The term `border State' means Arizona, 


        California, New Mexico, and Texas.


            ``(2) Eligible community.--The term `eligible community' 


        means a low-income community with economic hardship that--


                    ``(A) is commonly referred to as a colonia;


                    ``(B) is located along the United States-Mexico 


                border (generally in an unincorporated area); and





[[Page 110 STAT. 1680]]





                    ``(C) lacks a safe drinking water supply or adequate 


                facilities for the provision of safe drinking water for 


                human consumption.





    ``(b) Grants To Alleviate Health Risks.--The Administrator of the 


Environmental Protection Agency and the heads of other appropriate 


Federal agencies are authorized to award grants to a border State to 


provide assistance to eligible communities to facilitate compliance with 


national primary drinking water regulations or otherwise significantly 


further the health protection objectives of this title.


    ``(c) Use of Funds.--Each grant awarded pursuant to subsection (b) 


shall be used to provide assistance to one or more eligible communities 


with respect to which the residents are subject to a significant health 


risk (as determined by the Administrator or the head of the Federal 


agency making the grant) attributable to the lack of access to an 


adequate and affordable drinking water supply system.


    ``(d) Cost Sharing.--The amount of a grant awarded pursuant to this 


section shall not exceed 50 percent of the costs of carrying out the 


project that is the subject of the grant.


    ``(e) Authorization of Appropriations.--There are authorized to be 


appropriated to carry out this section $25,000,000 for each of the 


fiscal years 1997 through 1999.''.





SEC. 136. ESTROGENIC SUBSTANCES SCREENING PROGRAM.





    Part E (42 U.S.C. 300j et seq.) is amended by adding at the end the 


                               following:





    ``Sec. 1457. <<NOTE: 42 USC 300j-17.>> In addition to the substances 


referred to in section 408(p)(3)(B) of the Federal Food, Drug, and 


Cosmetic Act (21 U.S.C. 346a(p)(3)(B)) the Administrator may provide for 


testing under the screening program authorized by section 408(p) of such 


Act, in accordance with the provisions of section 408(p) of such Act, of 


any other substance that may be found in sources of drinking water if 


the Administrator determines that a substantial population may be 


exposed to such substance.''.





SEC. 137. DRINKING WATER STUDIES.





    Part E (42 U.S.C. 300j et seq.) is amended by adding after section 


                           1457 the following:





    ``Sec. 1458. <<NOTE: 42 USC 300j-18.>> (a) Subpopulations at Greater 


Risk.--


            ``(1) In general.--The Administrator shall conduct a 


        continuing program of studies to identify groups within the 


        general population that may be at greater risk than the general 


        population of adverse health effects from exposure to 


        contaminants in drinking water. The study shall examine whether 


        and to what degree infants, children, pregnant women, the 


        elderly, individuals with a history of serious illness, or other 


        subpopulations that can be identified and characterized are 


        likely to experience elevated health risks, including risks of 


        cancer, from contaminants in drinking water.


            ``(2) Report.--Not later than 4 years after the date of 


        enactment of this subsection and periodically thereafter as new





[[Page 110 STAT. 1681]]





        and significant information becomes available, the Administrator 


        shall report to the Congress on the results of the studies.





    ``(b) Biological Mechanisms.--The Administrator shall conduct 


biomedical studies to--


            ``(1) understand the mechanisms by which chemical 


        contaminants are absorbed, distributed, metabolized, and 


        eliminated from the human body, so as to develop more accurate 


        physiologically based models of the phenomena;


            ``(2) understand the effects of contaminants and the 


        mechanisms by which the contaminants cause adverse effects 


        (especially noncancer and infectious effects) and the variations 


        in the effects among humans, especially subpopulations at 


        greater risk of adverse effects, and between test animals and 


        humans; and


            ``(3) develop new approaches to the study of complex 


        mixtures, such as mixtures found in drinking water, especially 


        to determine the prospects for synergistic or antagonistic 


        interactions that may affect the shape of the dose-response 


        relationship of the individual chemicals and microbes, and to 


        examine noncancer endpoints and infectious diseases, and 


        susceptible individuals and subpopulations.





    ``(c) Studies on Harmful Substances in Drinking Water.--


            ``(1) Development of studies.--The Administrator shall, not 


        later than 180 days after the date of enactment of this section 


        and after consultation with the Secretary of Health and Human 


        Services, the Secretary of Agriculture, and, as appropriate, the 


        heads of other Federal agencies, conduct the studies described 


        in paragraph (2) to support the development and implementation 


        of the most current version of each of the following:


                    ``(A) Enhanced Surface Water Treatment Rule (59 Fed. 


                Reg. 38832 (July 29, 1994)).


                    ``(B) Disinfectant and Disinfection Byproducts Rule 


                (59 Fed. Reg. 38668 (July 29, 1994)).


                    ``(C) Ground Water Disinfection Rule (availability 


                of draft summary announced at (57 Fed. Reg. 33960; July 


                31, 1992)).


            ``(2) Contents of studies.--The studies required by 


        paragraph (1) shall include, at a minimum, each of the 


        following:


                    ``(A) Toxicological studies and, if warranted, 


                epidemiological studies to determine what levels of 


                exposure from disinfectants and disinfection byproducts, 


                if any, may be associated with developmental and birth 


                defects and other potential toxic end points.


                    ``(B) Toxicological studies and, if warranted, 


                epidemiological studies to quantify the carcinogenic 


                potential from exposure to disinfection byproducts 


                resulting from different disinfectants.


                    ``(C) The development of dose-response curves for 


                pathogens, including cryptosporidium and the Norwalk 


                virus.


            ``(3) Authorization of appropriations.--There are authorized 


        to be appropriated to carry out this subsection $12,500,000 for 


        each of fiscal years 1997 through 2003.





    ``(d) Waterborne Disease Occurrence Study.--


            ``(1) System.--The Director of the Centers for Disease 


        Control and Prevention, and the Administrator shall jointly--





[[Page 110 STAT. 1682]]





                    ``(A) within 2 years after the date of enactment of 


                this section, conduct pilot waterborne disease 


                occurrence studies for at least 5 major United States 


                communities or public water systems; and


                    ``(B) <<NOTE: Reports.>> within 5 years after the 


                date of enactment of this section, prepare a report on 


                the findings of the pilot studies, and a national 


                estimate of waterborne disease occurrence.


            ``(2) Training and education.--The Director and 


        Administrator shall jointly establish a national health care 


        provider training and public education campaign to inform both 


        the professional health care provider community and the general 


        public about waterborne disease and the symptoms that may be 


        caused by infectious agents, including microbial contaminants. 


        In developing such a campaign, they shall seek comment from 


        interested groups and individuals, including scientists, 


        physicians, State and local governments, environmental groups, 


        public water systems, and vulnerable populations.


            ``(3) Funding.--There are authorized to be appropriated for 


        each of the fiscal years 1997 through 2001, $3,000,000 to carry 


        out this subsection. To the extent funds under this subsection 


        are not fully appropriated, the Administrator may use not more 


        than $2,000,000 of the funds from amounts reserved under section 


        1452(n) for health effects studies for purposes of this 


        subsection. The Administrator may transfer a portion of such 


        funds to the Centers for Disease Control and Prevention for such 


        purposes.''.





                    TITLE II--DRINKING WATER RESEARCH





SEC. 201. DRINKING WATER RESEARCH AUTHORIZATION.





    Other than amounts authorized to be appropriated to the 


Administrator of the Environmental Protection Agency under other titles 


of this Act, there are authorized to be appropriated such additional 


sums as may be necessary for drinking water research for fiscal years 


1997 through 2003. The annual total of such additional sums authorized 


to be appropriated under this section shall not exceed $26,593,000.





SEC. 202. <<NOTE: 42 USC 300j-1 note.>> SCIENTIFIC RESEARCH REVIEW.





    (a) In General.--The Administrator shall--


            (1) develop a strategic plan for drinking water research 


        activities throughout the Environmental Protection Agency (in 


        this section referred to as the ``Agency'');


            (2) integrate that strategic plan into ongoing Agency 


        planning activities; and


            (3) review all Agency drinking water research to ensure the 


        research--


                    (A) is of high quality; and


                    (B) does not duplicate any other research being 


                conducted by the Agency.





    (b) <<NOTE: Public information.>> Plan.--The Administrator shall 


transmit the plan to the Committees on Commerce and Science of the House 


of Representatives and the Committee on Environment and Public Works of 


the Senate and the plan shall be made available to the public.





[[Page 110 STAT. 1683]]





SEC. 203. <<NOTE: 42 USC 300j-1 note.>> NATIONAL CENTER FOR GROUND WATER 


            RESEARCH.





    The Administrator of the Environmental Protection Agency, acting 


through the Robert S. Kerr Environmental Research Laboratory, is 


authorized to reestablish a partnership between the Laboratory and the 


National Center for Ground Water Research, a university consortium, to 


conduct research, training, and technology transfer for ground water 


quality protection and restoration. No funds are authorized by this 


section.





                   TITLE III--MISCELLANEOUS PROVISIONS





SEC. 301. WATER RETURN FLOWS.





    Section 3013 of Public Law 102-486 (42 U.S.C. 13551) is repealed.





SEC. 302. <<NOTE: 42 USC 300j-12 note.>> TRANSFER OF FUNDS.





    (a) In General.--Notwithstanding any other provision of law, at any 


time after the date 1 year after a State establishes a State loan fund 


pursuant to section 1452 of the Safe Drinking Water Act but prior to 


fiscal year 2002, a Governor of the State may--


            (1) reserve up to 33 percent of a capitalization grant made 


        pursuant to such section 1452 and add the funds reserved to any 


        funds provided to the State pursuant to section 601 of the 


        Federal Water Pollution Control Act (33 U.S.C. 1381); and


            (2) reserve in any year a dollar amount up to the dollar 


        amount that may be reserved under paragraph (1) for that year 


        from capitalization grants made pursuant to section 601 of such 


        Act (33 U.S.C. 1381) and add the reserved funds to any funds 


        provided to the State pursuant to section 1452 of the Safe 


        Drinking Water Act.





    (b) Report.--Not later than 4 years after the date of enactment of 


this Act, the Administrator shall submit a report to the Congress 


regarding the implementation of this section, together with the 


Administrator's recommendations, if any, for modifications or 


improvement.


    (c) State Match.--Funds reserved pursuant to this section shall not 


be considered to be a State match of a capitalization grant required 


pursuant to section 1452 of the Safe Drinking Water Act or the Federal 


Water Pollution Control Act (33 U.S.C. 1251 et seq.).





SEC. 303. <<NOTE: 33 USC 1263a.>> GRANTS TO ALASKA TO IMPROVE SANITATION 


            IN RURAL AND NATIVE VILLAGES.





    (a) In General.--The Administrator of the Environmental Protection 


Agency may make grants to the State of Alaska for the benefit of rural 


and Native villages in Alaska to pay the Federal share of the cost of--


            (1) the development and construction of public water systems 


        and wastewater systems to improve the health and sanitation 


        conditions in the villages; and


            (2) training, technical assistance, and educational programs 


        relating to the operation and management of sanitation services 


        in rural and Native villages.





[[Page 110 STAT. 1684]]





    (b) Federal Share.--The Federal share of the cost of the activities 


described in subsection (a) shall be 50 percent.


    (c) Administrative Expenses.--The State of Alaska may use an amount 


not to exceed 4 percent of any grant made available under this 


subsection for administrative expenses necessary to carry out the 


activities described in subsection (a).


    (d) Consultation With the State of Alaska.--The Administrator shall 


consult with the State of Alaska on a method of prioritizing the 


allocation of grants under subsection (a) according to the needs of, and 


relative health and sanitation conditions in, each eligible village.


    (e) Authorization of Appropriations.--There are authorized to be 


appropriated $15,000,000 for each of the fiscal years 1997 through 2000 


to carry out this section.





SEC. 304. SENSE OF THE CONGRESS.





    It is the sense of the Congress that appropriations for grants under 


section 128 (relating to New York City watershed), section 135 (relating 


to colonias), and section 307 (relating to Alaska Native villages) 


should not be provided if such appropriations would prevent the adequate 


capitalization of State revolving loan funds.





SEC. 305. BOTTLED DRINKING WATER STANDARDS.





    Section 410 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 


349) is amended as follows:


            (1) By striking ``Whenever'' and inserting ``(a) Except as 


        provided in subsection (b), whenever''.


            (2) By adding at the end the following new subsection:





    ``(b)(1) Not later than 180 days before the effective date of a 


national primary drinking water regulation promulgated by the 


Administrator of the Environmental Protection Agency for a contaminant 


under section 1412 of the Safe Drinking Water Act (42 U.S.C. 300g-1), 


the Secretary shall promulgate a standard of quality regulation under 


this subsection for that contaminant in bottled water or make a finding 


that such a regulation is not necessary to protect the public health 


because the contaminant is contained in water in public water systems 


(as defined under section 1401(4) of such Act (42 U.S.C. 300f(4))) but 


not in water used for bottled drinking water. <<NOTE: Effective 


date.>> The effective date for any such standard of quality regulation 


shall be the same as the effective date for such national primary 


drinking water regulation, except for any standard of quality of 


regulation promulgated by the Secretary before the date of enactment of 


the Safe Drinking Water Act Amendments of 1996 for which (as of such 


date of enactment) an effective date had not been established. In the 


case of a standard of quality regulation to which such exception 


applies, the Secretary shall promulgate monitoring requirements for the 


contaminants covered by the regulation not later than 2 years after such 


date of enactment.





    ``(2) A regulation issued by the Secretary as provided in this 


subsection shall include any monitoring requirements that the Secretary 


determines appropriate for bottled water.


    ``(3) A regulation issued by the Secretary as provided in this 


subsection shall require the following:


            ``(A) In the case of contaminants for which a maximum 


        contaminant level is established in a national primary drinking 


        water regulation under section 1412 of the Safe Drinking Water 


        Act (42 U.S.C. 300g-1), the regulation under this subsection





[[Page 110 STAT. 1685]]





        shall establish a maximum contaminant level for the contaminant 


        in bottled water which is no less stringent than the maximum 


        contaminant level provided in the national primary drinking 


        water regulation.


            ``(B) In the case of contaminants for which a treatment 


        technique is established in a national primary drinking water 


        regulation under section 1412 of the Safe Drinking Water Act (42 


        U.S.C. 300g-1), the regulation under this subsection shall 


        require that bottled water be subject to requirements no less 


        protective of the public health than those applicable to water 


        provided by public water systems using the treatment technique 


        required by the national primary drinking water regulation.





    ``(4)(A) If the Secretary does not promulgate a regulation under 


this subsection within the period described in paragraph (1), the 


national primary drinking water regulation referred to in paragraph (1) 


shall be considered, as of the date on which the Secretary is required 


to establish a regulation under paragraph (1), as the regulation 


applicable under this subsection to bottled water.


    ``(B) <<NOTE: Federal Register, publication.>> In the case of a 


national primary drinking water regulation that pursuant to subparagraph 


(A) is considered to be a standard of quality regulation, the Secretary 


shall, not later than the applicable date referred to in such 


subparagraph, publish in the Federal Register a notice--


            ``(i) specifying the contents of such regulation, including 


        monitoring requirements; and


            ``(ii) <<NOTE: Effective date.>> providing that for purposes 


        of this paragraph the effective date for such regulation is the 


        same as the effective date for the regulation for purposes of 


        the Safe Drinking Water Act (or, if the exception under 


        paragraph (1) applies to the regulation, that the effective date 


        for the regulation is not later than 2 years and 180 days after 


        the date of enactment of the Safe Drinking Water Act Amendments 


        of 1996).''.





SEC. 306. <<NOTE: District of Columbia. Virginia. 40 USC 45 


            note.>> WASHINGTON AQUEDUCT.





    (a) Definitions.--In this section:


            (1) Non-federal public water supply customer.--The terms 


        ``non-Federal public water supply customer'' and ``customer'' 


        mean--


                    (A) the District of Columbia;


                    (B) Arlington County, Virginia; and


                    (C) the city of Falls Church, Virginia.


            (2) Secretary.--The term ``Secretary'' means the Secretary 


        of the Army, acting through the Chief of Engineers.


            (3) Value to the government.--The term ``value to the 


        Government'' means the net present value of a contract entered 


        into under subsection (e)(2), calculated in accordance with 


        subparagraphs (A) and (B) of section 502(5) of the Congressional 


        Budget Act of 1974 (2 U.S.C. 66la(5)), other than section 


        502(5)(B)(I) of the Act, as though the contract provided for 


        repayment of a direct loan to a customer.


            (4) Washington aqueduct.--The term ``Washington Aqueduct'' 


        means the Washington Aqueduct facilities and related facilities 


        owned by the Federal Government as of the date of enactment of 


        this Act, including--


                    (A) the dams, intake works, conduits, and pump 


                stations that capture and transport raw water from the 


                Potomac River to the Dalecarlia Reservoir;





[[Page 110 STAT. 1686]]





                    (B) the infrastructure and appurtenances used to 


                treat water taken from the Potomac River to potable 


                standards; and


                    (C) related water distribution facilities.





    (b) Regional Entity.--


            (1) In general.--The Congress encourages and grants consent 


        to the customers to establish a non-Federal public or private 


        entity, or to enter into an agreement with an existing non-


        Federal public or private entity, to--


                    (A) receive title to the Washington Aqueduct; and


                    (B) operate, maintain, and manage the Washington 


                Aqueduct in a manner that adequately represents all 


                interests of its customers.


            (2) Consideration.--If an entity receiving title to the 


        Washington Aqueduct is not composed entirely of non-Federal 


        public water supply customers, the entity shall consider the 


        customers' historical provision of equity for the Aqueduct.


            (3) Priority access.--The customers shall have priority 


        access to any water produced by the Washington Aqueduct.


            (4) Consent of the congress.--The Congress grants consent to 


        the customers to enter into any interstate agreement or compact 


        required to carry out this section.


            (5) Statutory construction.--This section shall not preclude 


        the customers from pursuing any option regarding ownership, 


        operation, maintenance, and management of the Washington 


        Aqueduct.





    (c) Progress Report and Plan.--Not later than 1 year after the date 


of enactment of this Act, the Secretary shall report to the Committee on 


Environment and Public Works of the Senate and the Committee on 


Transportation and Infrastructure of the House of Representatives on any 


progress in achieving the objectives of subsection (b)(1) and shall 


submit a plan for the transfer of ownership, operation, maintenance, and 


management of the Washington Aqueduct to a non-Federal public or private 


entity. Such plan shall include a detailed consideration of any proposal 


to transfer such ownership, maintenance, or management to a private 


entity.


    (d) Transfer.--


            (1) In general.--Subject to subsection (b)(2), the other 


        provisions of this subsection, and any other terms and 


        conditions the Secretary considers appropriate to protect the 


        interests of the United States, the Secretary shall, not later 


        than 3 years after the date of enactment of this Act and with 


        the consent of a majority of the customers and without 


        consideration to the Federal Government, transfer all right, 


        title, and interest of the United States in the Washington 


        Aqueduct, and its real property, facilities, and personalty, to 


        a non-Federal, public or private entity. Approval of such 


        transfer shall not be unreasonably withheld by the Secretary.


            (2) Adequate capabilities.--The Secretary shall transfer 


        ownership of the Washington Aqueduct under paragraph (1) only if 


        the Secretary determines, after opportunity for public input, 


        that the entity to receive ownership of the Aqueduct has the 


        technical, managerial, and financial capability to operate, 


        maintain, and manage the Aqueduct.


            (3) Responsibilities.--The Secretary shall not transfer 


        title under this subsection unless the entity to receive title





[[Page 110 STAT. 1687]]





        assumes full responsibility for performing and financing the 


        operation, maintenance, repair, replacement, rehabilitation, and 


        necessary capital improvements of the Washington Aqueduct so as 


        to ensure the continued operation of the Washington Aqueduct 


        consistent with the Aqueduct's intended purpose of providing an 


        uninterrupted supply of potable water sufficient to meet the 


        current and future needs of the Aqueduct's service area.





    (e) Borrowing Authority.--


            (1) Borrowing.--


                    (A) In general.--Subject to the other provisions of 


                this paragraph and paragraph (2), the Secretary is 


                authorized to borrow from the Treasury of the United 


                States such amounts for fiscal years 1997, 1998, and 


                1999 as are sufficient to cover any obligations that the 


                Army Corps of Engineers is required to incur in carrying 


                out capital improvements during fiscal years 1997, 1998, 


                and 1999 for the Washington Aqueduct to ensure continued 


                operation of the Aqueduct until such time as a transfer 


                of title to the Aqueduct has taken place.


                    (E) Limitation.--The amount borrowed by the 


                Secretary under subparagraph (A) may not exceed 


                $29,000,000 for fiscal year 1997, $24,000,000 for fiscal 


                year 1998, and $22,000,000 for fiscal year 1999.


                    (C) Agreement.--Amounts borrowed under subparagraph 


                (A) may only be used for capital improvements agreed to 


                by the Army Corps of Engineers and the customers.


                    (D) Terms of borrowing.--


                          (i) In general.--The Secretary of the Treasury 


                      shall provide the funds borrowed under 


                      subparagraph (A) under such terms and conditions 


                      as the Secretary of Treasury determines to be 


                      necessary and in the public interest and subject 


                      to the contracts required under paragraph (2).


                          (ii) Term.--The term of any loan made under 


                      subparagraph (A) shall be for a period of not less 


                      than 20 years.


                          (iii) Prepayment.--There shall be no penalty 


                      for the prepayment of any amounts borrowed under 


                      subparagraph (A).


            (2) Contracts with customers.--


                    (A) In general.--The borrowing authority under 


                paragraph (1)(A) shall be effective only after the Chief 


                of Engineers has entered into contracts with each 


                customer under which the customer commits to repay a pro 


                rata share (based on water purchase) of the principal 


                and interest owed by the Secretary to the Secretary of 


                the Treasury under paragraph (1).


                    (B) Prepayment.--Any customer may repay, at any 


                time, the pro rata share of the principal and interest 


                then owed by the customer and outstanding, or any 


                portion thereof, without penalty.


                    (C) Risk of default.--Under each of the contracts, 


                the customer that enters into the contract shall commit 


                to pay any additional amount necessary to fully offset 


                the risk of default on the contract.





[[Page 110 STAT. 1688]]





                    (D) Obligations.--Each contract under subparagraph 


                (A) shall include such terms and conditions as the 


                Secretary of the Treasury may require so that the value 


                to the Government of the contracts entered into under 


                subparagraph (A) is estimated to be equal to the 


                obligations of the Army Corps of Engineers for carrying 


                out capital improvements at the Washington Aqueduct at 


                the time that each series of contracts is entered into.


                    (E) Other conditions.--Each contract entered into 


                under subparagraph (A) shall--


                          (i) provide that the customer pledges future 


                      income only from fees assessed for principal and 


                      interest payments required by such contracts and 


                      costs to operate and maintain the Washington 


                      Aqueduct;


                          (ii) provide the United States priority in 


                      regard to income from fees assessed to operate and 


                      maintain the Washington Aqueduct; and


                          (iii) include other conditions consistent with 


                      this section that the Secretary of the Treasury 


                      determines to be appropriate.


            (3) Limitations.--


                    (A) Borrowing authority.--The Secretary's borrowing 


                authority for making capital improvements at the 


                Washington Aqueduct under paragraph (1) shall not extend 


                beyond fiscal year 1999.


                    (B) Obligation authority.--Upon expiration of the 


                borrowing authority exercised under paragraph (1), the 


                Secretary shall not obligate funds for making capital 


                improvements at the Washington Aqueduct except funds 


                which are provided in advance by the customers. This 


                limitation does not affect the Secretary's authority to 


                conduct normal operation and maintenance activities, 


                including minor repair and replacement work.


            (4) <<NOTE: Reports.>> Impact on improvement program.--Not 


        later than 180 days after the date of enactment of this Act, the 


        Secretary, in consultation with other Federal agencies, shall 


        transmit to the Committee on Environment and Public Works of the 


        Senate and the Committee on Transportation and Infrastructure of 


        the House of Representatives a report that assesses the impact 


        of the borrowing authority provided under this subsection on the 


        near-term improvement projects in the Washington Aqueduct 


        Improvement Program, work scheduled, and the financial liability 


        to be incurred.





    (f) Reissuance of NPDES Permit.--Prior to reissuing a National 


Pollutant Discharge Elimination System (NPDES) permit for the Washington 


Aqueduct, the Administrator of the Environmental Protection Agency shall 


consult with the customers and the Secretary regarding opportunities for 


more efficient water facility configurations that might be achieved 


through various possible transfers of the Washington Aqueduct. Such 


consultation shall include specific consideration of concerns regarding 


a proposed solids recovery facility, and may include a public hearing.





SEC. 307. <<NOTE: 33 USC 1281 note.>> WASTEWATER ASSISTANCE TO COLONIAS.





    (a) Definitions.--As used in this section:


            (1) Border state.--The term ``border State'' means Arizona, 


        California, New Mexico, and Texas.





[[Page 110 STAT. 1689]]





            (2) Eligible community.--The term ``eligible community'' 


        means a low-income community with economic hardship that--


                    (A) is commonly referred to as a colonia;


                    (B) is located along the United States-Mexico border 


                (generally in an unincorporated area); and


                    (C) lacks basic sanitation facilities such as 


                household plumbing or a proper sewage disposal system.


            (3) Treatment works.--The term ``treatment works'' has the 


        meaning provided in section 212(2) of the Federal Water 


        Pollution Control Act (33 U.S.C. 1292(2)).





    (b) Grants for Wastewater Assistance.--The Administrator of the 


Environmental Protection Agency and the heads of other appropriate 


Federal agencies are authorized to award grants to a border State to 


provide assistance to eligible communities for the planning, design, and 


construction or improvement of sewers, treatment works, and appropriate 


connections for wastewater treatment.


    (c) Use of Funds.--Each grant awarded pursuant to subsection (b) 


shall be used to provide assistance to one or more eligible communities 


with respect to which the residents are subject to a significant health 


risk (as determined by the Administrator or the head of the Federal 


agency making the grant) attributable to the lack of access to an 


adequate and affordable treatment works for wastewater.


    (d) Cost Sharing.--The amount of a grant awarded pursuant to this 


section shall not exceed 50 percent of the costs of carrying out the 


project that is the subject of the grant.


    (e) Authorization of Appropriations.--There are authorized to be 


appropriated to carry out this section $25,000,000 for each of the 


fiscal years 1997 through 1999.





SEC. 308. PREVENTION AND CONTROL OF ZEBRA MUSSEL INFESTATION OF LAKE 


            CHAMPLAIN.





    (a) Findings.--Section 1002(a) of the Nonindigenous Aquatic Nuisance 


Prevention and Control Act of 1990 (16 U.S.C. 4701(a)) is amended as 


follows:


            (1) By striking ``and'' at the end of paragraph (3).


            (2) By striking the period at the end of paragraph (4) and 


        inserting ``; and''.


            (3) By adding at the end the following new paragraph:


            ``(5) the zebra mussel was discovered on Lake Champlain 


        during 1993 and the opportunity exists to act quickly to 


        establish zebra mussel controls before Lake Champlain is further 


        infested and management costs escalate.''.





    (b) Ex Officio Members of Aquatic Nuisance Species Task Force.--


Section 1201(c) of such Act (16 U.S.C. 4721(c)) is amended by inserting 


``, the Lake Champlain Basin Program,'' after ``Great Lakes 


Commission''.





[[Page 110 STAT. 1690]]





 TITLE IV--ADDITIONAL ASSISTANCE FOR WATER INFRASTRUCTURE AND WATERSHEDS





SEC. 401. <<NOTE: 42 USC 300j-3c.>> NATIONAL PROGRAM.





    (a) Technical and Financial Assistance.--The Administrator of the 


Environmental Protection Agency may provide technical and financial 


assistance in the form of grants to States (1) for the construction, 


rehabilitation, and improvement of water supply systems, and (2) 


consistent with nonpoint source management programs established under 


section 319 of the Federal Water Pollution Control Act, for source water 


quality protection programs to address pollutants in navigable waters 


for the purpose of making such waters usable by water supply systems.


    (b) Limitation.--Not more than 30 percent of the amounts 


appropriated to carry out this section in a fiscal year may be used for 


source water quality protection programs described in subsection (a)(2).


    (c) Condition.--As a condition to receiving assistance under this 


section, a State shall ensure that such assistance is carried out in the 


most cost-effective manner, as determined by the State.


    (d) Authorization of Appropriations.--


            (1) Unconditional authorization.--There are authorized to be 


        appropriated to carry out this section $25,000,000 for each of 


        fiscal years 1997 through 2003. Such sums shall remain available 


        until expended.


            (2) Conditional authorization.--In addition to amounts 


        authorized under paragraph (1), there are authorized to be 


        appropriated to carry out this title $25,000,000 for each of 


        fiscal years 1997 through 2003, provided that such authorization 


        shall be in effect for a fiscal year only if at least 75 percent 


        of the total amount of funds authorized to be appropriated for 


        such fiscal year by section 1452(m) of the Safe Drinking Water 


        Act are appropriated.





    (e) Acquisition of Lands.--Assistance provided with funds made 


available under this title may be used for the acquisition of lands and 


other interests in lands; however, nothing in this title authorizes the 


acquisition of lands or other interests in lands from other than willing 


sellers.


    (f) Federal Share.--The Federal share of the cost of activities for 


which grants are made under this title shall be 50 percent.


    (g) Definitions.--In this section, the following definitions apply:


            (1) State.--The term ``State'' means a State, the District 


        of Columbia, the Commonwealth of Puerto Rico, the Virgin 


        Islands, Guam, American Samoa, and the Commonwealth of the 


        Northern Mariana Islands.


            (2) Water supply system.--The term ``water supply system'' 


        means a system for the provision to the public of piped water 


        for human consumption if such system has at least 15 service 


        connections or regularly serves at least 25 individuals and a 


        draw and fill system for the provision to the public of water 


        for human consumption. Such term does not include a system owned 


        by a Federal agency. Such term includes (A) any collection, 


        treatment, storage, and distribution facilities





[[Page 110 STAT. 1691]]





        under control of the operator of such system and used primarily 


        in connection with such system, and (B) any collection or 


        pretreatment facilities not under such control that are used 


        primarily in connection with such system.





                      TITLE V--CLERICAL AMENDMENTS





SEC. 501. CLERICAL AMENDMENTS.





    (a) Part B.--Part B (42 U.S.C. 300g et seq.) is amended as follows:


            (1) In section 1412(b), <<NOTE: 42 USC 300g-1.>> move the 


        margins of paragraph (11) 2 ems to the right.


            (2) In section 1412(b)(8), strike ``1442(g)'' and insert 


        ``1442(e)''.


            (3) In section 1415(a)(1)(A), <<NOTE: 42 USC 300g-


        4.>> insert ``the'' before ``time the variance is granted''.





    (b) Part C.--Part C (42 U.S.C. 300h et seq.) is amended as follows:


            (1) In section 1421(b)(3)(B)(i), <<NOTE: 42 USC 


        300h.>> strike ``number or States'' and inserting ``number of 


        States''.


            (2) In section 1427(k), <<NOTE: 42 USC 300h-6.>> strike 


        ``this subsection'' and inserting ``this section''.





    (c) Part E.--Section 1441(f) (42 U.S.C. 300j(f)) is amended by 


inserting a period at the end.


    (d) Section 1465(b).--Section 1465(b) (42 U.S.C. 300j-25(b)) is 


amended by striking ``as by'' and inserting ``by''.


    (e) Short Title.--Section 1 of Public Law 93-523 (88 Stat. 1600) 


is <<NOTE: 42 USC 201 note. ``SHORT TITLE>>  amended by inserting ``of 


1974'' after ``Act'' the second place it appears and title XIV of the 


Public Health Service Act is amended by inserting the following 


                       immediately before part A:





    ``Sec. 1400. This title may be cited as the `Safe Drinking Water 


Act'.''.


    (f) Technical Amendments to Section Headings.--


            (1) The section heading and subsection designation of 


        subsection (a) of section 1417 (42 U.S.C. 300g-6) are amended to 


                                read as follows:





    ``Sec. 1417. (a)''.


            (2) The section heading and subsection designation of 


        subsection (a) of section 1426 (42 U.S.C. 300h-5) are amended to 


                                read as follows:





    ``Sec. 1426. (a)''.


            (3) The section heading and subsection designation of 


        subsection (a) of section 1427 (42 U.S.C. 300h-6) are amended to 


                                read as follows:





    ``Sec. 1427. (a)''.





[[Page 110 STAT. 1692]]





            (4) The section heading and subsection designation of 


        subsection (a) of section 1428 (42 U.S.C. 300h-7) are amended to 


                                read as follows:





    ``Sec. 1428. (a)''.


            (5) The section heading and subsection designation of 


        subsection (a) of section 1432 (42 U.S.C. 300i-1) are amended to 


                                read as follows:





    ``Sec. 1432. (a)''.


            (6) The section heading and subsection designation of 


        subsection (a) of section 1451 (42 U.S.C. 300j-11) are amended 


                               to read as follows:





    ``Sec. 1451. (a)''.


            (7) The section heading and first word of section 1461 (42 


                 U.S.C. 300j-21) are amended to read as follows:





    ``Sec. 1461. As''.


            (8) The section heading and first word of section 1462 (42 


                 U.S.C. 300j-22) are amended to read as follows:





    ``Sec. 1462. For''.


            (9) The section heading and subsection designation of 


        subsection (a) of section 1463 (42 U.S.C. 300j-23) are amended 


                               to read as follows:





    ``Sec. 1463. (a)''.


            (10) The section heading and subsection designation of 


        subsection (a) of section 1464 (42 U.S.C. 300j-24) are amended 


                               to read as follows:





    ``Sec. 1464. (a)''.


            (11) The section heading and subsection designation of 


        subsection (a) of section 1465 (42 U.S.C. 300j-25) are amended 


        to read as follows:





[[Page 110 STAT. 1693]]





    ``Sec. 1465. (a)''.





    Approved August 6, 1996.





LEGISLATIVE HISTORY--S. 1316 (H.R. 3604):


---------------------------------------------------------------------------





HOUSE REPORTS: ?Nos. 104-632, Pt. 1 accompanying H.R. 3604 (Comm. on 


Commerce) and 104-741 (Comm. of Conference).


SENATE REPORTS: ?No. 104-169 (Comm. on Environment and Public Works).


CONGRESSIONAL RECORD:


                                                        Vol. 141 (1995):


                                    Nov. 29, considered and passed 


                                        Senate.


                                                        Vol. 142 (1996):


                                    June 25, H.R. 3604 considered and 


                                        passed House.


                                    July 17, S. 1316 considered and 


                                        passed House, amended, in lieu 


                                        of H.R. 3604.


                                    Aug. 2, House and Senate agreed to 


                                        conference report.


WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):


            Aug. 6, Presidential remarks and statement.





                                  <all>





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