CONFERENCE REPORT ON S. 1316, SAFE DRINKING WATER ACT AMENDMENTS OF 1996
(House of Representatives - August 01, 1996)

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  CONFERENCE REPORT ON S. 1316, SAFE DRINKING WATER ACT AMENDMENTS OF 
                                  1996

  Mr. BLILEY submitted the following conference report and statement on 
the

[[Page H9680]]

Senate bill (S. 1316) to reauthorize and amend title XIV of the Public 
Health Service Act (commonly known as the ``Safe Drinking Water Act''), 
and for other purposes:

                  Conference Report (H. Rept. 104-741)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the House to the bill (S. 
     1316), to reauthorize and amend title XIV of the Public 
     Health Service Act (commonly known as the ``Safe Drinking 
     Water Act''), and for other purposes, having met, after full 
     and free conference, have agreed to recommend and do 
     recommend to their respective Houses as follows:
       That the Senate recede from its disagreement to the 
     amendment of the House and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the House 
     amendment, insert the following:
       

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) 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.
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) 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) 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. 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;
       (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
       (B) 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

[[Page H9681]]

     ``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

       ``(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) 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 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) General authority.--The Administrator shall, in 
     accordance with the procedures established by this 
     subsection, publish a maximum contaminant level goal and 
     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) 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).
       ``(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. 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) 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. The 
     Administrator, by notice in the 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) 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

[[Page H9682]]

     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) 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) 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).
       (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) 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 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) 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 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) 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--
       ``(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);


[[Page H9683]]


     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 and shall not be 
     set aside by the court under that section unless the court 
     finds that the determination is arbitrary and capricious.''.
       (b) 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 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) 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).''.

     SEC. 107. 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, 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

[[Page H9684]]

     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.
       ``(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) 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) 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.
       ``(F) 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. 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 modified 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. 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) 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, 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.

[[Page H9685]]

       ``(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 
     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'' 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 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
       (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
       (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--

[[Page H9686]]

       (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.
       ``(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) 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--

       ``(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). 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) Distribution.--The State shall publish and 
     distribute summaries of the report and indicate where the 
     full report is available for review.
       ``(B) 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 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) 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).
       ``(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.

[[Page H9687]]

     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) 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) 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) 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.''.
       (b) 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.

       (a) Small System 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;
       ``(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) 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;
       ``(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) 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 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 
     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. 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 modification to the variance 
     to resolve the concerns of the Administrator. The State shall 
     make the recommended

[[Page H9688]]

     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 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) 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,
     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) 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. 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 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:


                         ``CAPACITY DEVELOPMENT

       ``Sec. 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--

[[Page H9689]]

       ``(A) the methods or criteria that the State will use to 
     identify and prioritize the public water systems most 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) 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.
       ``(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) 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.
       ``(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) 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.''.

       (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. 300j91) 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. 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. 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

[[Page H9690]]

     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.''.

     SEC. 123. OPERATOR CERTIFICATION.

       Part B (42 U.S.C. 300g et seq.) is amended by adding the 
     following after section 1418:


                        ``operator certification

       ``Sec. 1419. (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 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:
       ``(1)(A) 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) 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):


                      ``MONITORING OF CONTAMINANTS

       ``Sec. 1418. (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
       ``(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

[[Page H9691]]

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

[[Page H9692]]

     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) (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 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. 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. 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 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:

[[Page H9693]]

                      ``STATE REVOLVING LOAN FUNDS

       ``Sec. 1452. (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 
     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 
     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 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;
       ``(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) 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

[[Page H9694]]

     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.
       ``(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 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) 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 pursuant to this section in accordance with procedures 
     established by the Comptroller General.
       ``(h) 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:
       ``(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

[[Page H9695]]

     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.
       ``(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 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. 300j et seq.) is amended by adding at the 
     end the following:


                 ``STATE GROUND WATER PROTECTION GRANTS

       ``Sec. 1429. (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.
       ``(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:


                   ``SOURCE WATER QUALITY ASSESSMENT

       ``Sec. 1453. (a) Source Water Assessment.--
       ``(1) 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

[[Page H9696]]

     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 assessment 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 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:


                    ``SOURCE WATER PETITION PROGRAM

       ``Sec. 1454. (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).
       ``(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;

       ``(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.);

[[Page H9697]]

       ``(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;
       ``(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) 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) 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 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:


                       ``WATER CONSERVATION PLAN

       ``Sec. 1455. (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:


                        ``ASSISTANCE TO COLONIAS

       ``Sec. 1456. (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
       ``(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:


               ``ESTROGENIC SUBSTANCES SCREENING PROGRAM

       ``Sec. 1457. 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:


                        ``drinking water studies

       ``Sec. 1458. (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 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.

[[Page H9698]]

       ``(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--
       ``(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) 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. 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--
                  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. 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. 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.
       (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 130 (relating to New York City 
     watershed), section 137 (relating to colonias), and section 
     303 (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. 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 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) 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) 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. 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

[[Page H9699]]

     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;
       (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 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.
       (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) 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. 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.
       (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.

[[Page H9700]]

     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''.
TITLE IV--ADDITIONAL ASSISTANCE FOR WATER INFRASTRUCTURE AND WATERSHEDS

     SEC. 401. 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 
     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), 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), 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), strike ``number or 
     States'' and inserting ``number of States''.
       (2) In section 1427(k), 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 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:


                             ``SHORT TITLE

       ``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:


          ``PROHIBITION ON USE OF LEAD PIPES, SOLDER, AND FLUX

       ``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:


                     ``REGULATION OF STATE PROGRAMS

       ``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:


              ``SOLE SOURCE AQUIFER DEMONSTRATION PROGRAM

       ``Sec. 1427. (a)''.
       (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:


        ``STATE PROGRAMS TO ESTABLISH WELLHEAD PROTECTION AREAS

       ``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:


                 ``TAMPERING WITH PUBLIC WATER SYSTEMS

       ``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:


                            ``INDIAN TRIBES

       ``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:


                             ``DEFINITIONS

       ``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:


        ``RECALL OF DRINKING WATER COOLERS WITH LEAD-LINED TANKS

       ``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:


                ``DRINKING WATER COOLERS CONTAINING LEAD

       ``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:


             ``LEAD CONTAMINATION IN SCHOOL DRINKING WATER

       ``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:


``FEDERAL ASSISTANCE FOR STATE PROGRAMS REGARDING LEAD CONTAMINATION IN 
                         SCHOOL DRINKING WATER

       ``Sec. 1465. (a)''.
       And the House agree to the same.
     From the Committee on Commerce, for consideration of the 
     Senate bill (except for secs. 28(a) and 28(e)) and the House 
     amendment (except for title V), and modifications committed 
     to conference:
     Tom Bliley,
     Mike Bilirakis,
     Mike Crapo,
     Brian P. Bilbray,
     From the Committee on Commerce, for consideration of secs. 
     28(a) and 28(e) of the Senate bill, and modifications 
     committed to conference:
     Tom Bliley,
     Mike Bilirakis,
     As additional conferees from the Committee on Science, for 
     the consideration of that portion of section 3 that adds a 
     new sec. 1478 and secs. 23, 25(f), and 28(f) of the Senate 
     bill, and that portion of sec. 308 that adds a new sec. 
     1452(n) and sec. 402 and title VI of the House amendment, and 
     modifications committed to conference:
     Robert S. Walker,
     Dana Rohrabacher,
     Tim Roemer,
     As additional conferees from the Committee on Transportation 
     and Infrastructure, for the consideration of that portion of 
     sec. 3 that adds a new sec. 1471(c) and secs. 9, 17, 22(d), 
     25(a), 25(g), 28(a), 28(e), 28(h), and 28(i) of the Senate 
     bill, and title V of the House amendment and modifications 
     committed to conference:
     Bud Shuster,
     Sherwood Boehlert,
     Zach Wamp,
     Robert A. Borski,
     Robert Menendez,
     Provided, Mr. Blute is appointed in lieu of Mr. Wamp for 
     consideration of title V of the House amendment:
     Peter Blute,
                                Managers on the Part of the House.

     John H. Chafee,
     Dirk Kempthorne,
     Craig Thomas,
     John Warner,
     Max Baucus,
     Harry Reid,
     Frank Lautenberg,
                               Managers on the Part of the Senate.

       Joint Explanatory Statement of the Committee on Conference

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendments of the House to the bill S. 1316, to reauthorize 
     and amend Title XIV of the Public Health Service Act 
     (commonly known as the ``Safe Drinking Water Act''), and for 
     other purposes, submit the following joint statement to the 
     House and the Senate in explanation of the effect of the 
     action agreed upon

[[Page H9701]]

     by the managers and recommended in the accompanying 
     conference report:
       The House amendment to the text of the Senate bill struck 
     all of the Senate bill after the enacting clause and inserted 
     a substitute text.
       The Senate recedes from its disagreement to the amendment 
     of the House with an amendment that is a substitute for the 
     Senate bill and the House amendment.
       The conference agreement on S. 1316, the Safe Drinking 
     Water Act Amendments of 1996, provides (1) revisions to the 
     procedures, process, and criteria for regulating contaminants 
     in drinking water to protect the public health; (2) special 
     programs to help small public water systems meet the 
     requirements of the Act; (3) provisions to promote cost-
     effectiveness in new drinking water regulations; (4) 
     increased flexibility for water suppliers where consistent 
     with public health; (5) new programs to promote the proper 
     operation of public water systems; (6) substantial new 
     Federal financial and technical assistance to help water 
     suppliers meet the requirements of the Act and to help States 
     in carrying out programs under the Act; (7) refinements and 
     new programs to improve protection of public health from 
     drinking water contamination; and (8) consumers with 
     information on the source of the water they are drinking and 
     its quality and safety.
       Certain matters agreed to in conference are noted below.

             Title I--Amendments to Safe Drinking Water Act

     Maximum contaminant level goals (sec. 104(a))
       The Senate recedes from its legislative provision and 
     report language (found in Senate Report 104-169, pages 30-33) 
     with respect to maximum contaminant level goals for 
     carcinogens. The House recedes from all its report language 
     on the same subject (House Report 104-632, the first 
     paragraph on page 28). The Conferees agree that the Safe 
     Drinking Water Act Amendments of 1996 make no changes to the 
     provision or legislative history for maximum contaminant 
     level goals.
     Disinfectants and disinfection by-products (sec. 104(b))
       The conference agreement addresses the application of 
     amended section 1412(b)(5) to the Environmental protection 
     Agency's proposed Stage I and Stage II regulations for 
     disinfectants and disinfection byproducts. Public water 
     systems use disinfectants to kill harmful microbial 
     contaminants that can cause serious illness or even death. 
     However, disinfectants and their resulting byproducts also 
     may pose risks, including potential increases in cancer rates 
     and liver and kidney damage. The regulation of both risks 
     from microbial contaminants and risks from disinfectants and 
     disinfection byproducts presents the Environmental Protection 
     Agency (EPA) with a unique challenge. Nonetheless, controls 
     for cryptosporidium and disinfection byproducts are widely 
     considered to be a pressing and high priority for improving 
     drinking water safety.
       In November 1992, EPA convened a negotiated rulemaking to 
     examine both the proper strategy for combating 
     cryptosporidium and other microbial contaminants and to 
     consider threats to human health from the use of 
     disinfectants commonly employed to combat microbial 
     contaminants. EPA had determined to use the negotiated 
     rulemaking process because the Agency believed that ``the 
     available occurrence, treatment and health effects data were 
     inadequate to address EPA's concern about the tradeoff 
     between risks from disinfectants and disinfection byproducts 
     and microbial pathogen risk, and wanted all stakeholders to 
     participate in the decision-making on setting proposed 
     standards.'' (59 Fed. Reg. 38670, July 29, 1994).
       Representatives from EPA, State and local government, water 
     suppliers, public health organizations and environmental 
     groups, among others, worked for nearly two years to reach 
     agreement on a framework for regulating both microbial 
     contaminants and disinfection byproducts. The framework will 
     result in rules for controlling disinfection byproducts and 
     an Enhanced Surface Water Treatment Rule to address risks 
     posed from microbial organisms. The package of rules when 
     fully implemented is expected to minimize exposures to 
     harmful microbial contaminants while reducing exposure to 
     disinfection byproducts that present a health risk by 
     optimizing the use of disinfectants and other means of water 
     treatment.
       The negotiating committee agreed that a two-step process 
     was necessary to address the microbial and disinfectants and 
     disinfection by-products issues. The July 29, 1994 Federal 
     Register notice thus proposes both Stage I and Stage II 
     levels of control. The Stage I provisions set limits for two 
     principal classes of chlorination byproducts, as well as 
     limits for specific byproducts resulting from other 
     disinfection processes, at levels deemed appropriate as a 
     first step standard based on current information. More 
     stringent Stage II controls were also proposed for the two 
     classes of chlorination byproducts but a second round of 
     negotiations is envisioned. In the meantime, EPA is 
     conducting an agreed-upon regime of health effects research 
     and water quality monitoring which will be used both to 
     finalize the disinfection byproduct rule and the Enhanced 
     Surface Water Treatment Rule (as provided for by the parties' 
     agreement) and for the second round of negotiations. ``Based 
     on this information and new data generated through 
     research,'' EPA ``will reevaluate the Stage 2 regulations and 
     repropose, as appropriate, depending on criteria agreed on in 
     a second regulatory negotiation (or similar rule development 
     process)'' (59 Fed. Reg. 38743).
       The Conferees acknowledge the delicate balance that was 
     struck by the parties in structuring the settlement of these 
     complicated and difficult issues, and encourages the parties 
     to continue according to the negotiated agreement. The 
     negotiated agreement contains an over-arching set of 
     principles to guide the individual rulemakings which 
     incorporated consideration of various factors. The Conferees 
     intend that all additional negotiations weigh the same 
     factors that guided the development of the proposed rule. 
     Specifically, all further negotiations for the Stage II 
     regulations for the control of disinfection byproducts should 
     follow and be consistent with the considerations that led to 
     an agreement regarding the proposed rule for Stage I.
       In order to preserve the progress made, there has been 
     considerable care taken to ensure that the new provisions of 
     this conference agreement not conflict with the parties' 
     agreement nor disrupt the implementation of the regulatory 
     actions. To do otherwise would substantially disrupt, if not 
     destroy, the next round of negotiations and lead to 
     unnecessary delays in protecting public health. For this 
     reason, the conference agreement precludes the use of the new 
     authority in section 1412(b)(6) to establish maximum 
     contaminant levels for the Stage I and Stage II rulemakings 
     for disinfectants or disinfection byproducts or to establish 
     a national primary drinking water maximum contaminant level 
     or treatment technique for cryptosporidium.
       The Conferees recognize, however, that the development of 
     this regulatory package has required the negotiators to 
     consider complex issues of risk, costs, affordability, 
     feasible technology, and health benefits. It is the 
     Conferees' view that the proposed rule that has been produced 
     is consistent with the ``risk-risk'' provision set out in new 
     section 1412(b)(5). Therefore, Section 104(b) makes clear 
     that the Administrator may use the authority of section 
     1412(b)(5) to promulgate Stage I and Stage II rules. However, 
     it is also the Conferees' intent that no provision of Section 
     1412(b)(5) be interpreted to force an alteration of the 
     negotiated agreement.
       Finally, Section 104(b) of the conference agreement 
     provides that for the purpose of promulgating Stage I and 
     Stage II regulations for disinfection and disinfection 
     byproducts, the consideration that the Administrator used in 
     the development of the July 29, 1994 proposal for such 
     regulation are to be considered consistent with section 
     1412(b)(5). These considerations included risk, cost, 
     affordability, feasible technology, and health benefits. The 
     Conferees intend with this language to ensure that the 
     negotiators and ultimately the Administrator are authorized 
     to consider these factors in the same manner as these 
     considerations were used in developing the Stage I proposed 
     rule.
       In the convening process for both the negotiating and 
     technical advisory committees for Stage II of the 
     Disinfectant/Disinfection By-Products rulemaking, the 
     Administrator should consider for inclusion appropriate 
     representatives of all interested parties, including State 
     and local governments, public water systems, public interest 
     groups, public health organizations, and experts on chemical 
     disinfectants, their use and alternative disinfection process 
     and their technologies.
     Arsenic (sec. 109)
       The Conferees encourage EPA to work with the American Water 
     Works Association Research Foundation (AWWARF) to carry out 
     the study projects authorized by new section 1412(b)(12)(A) 
     if AWWARF contributes matching funds.
     Consumer confidence reports (sec. 114(a))
       The Administrator may, in regulations, permit the 
     notification requirement of subparagraph (A) to be satisfied 
     by a means other than postal delivery, such as personal 
     delivery or electronic mail, if the Administrator determines 
     that the alternative means will provide equivalent notice to 
     individual customers.
       EPA regulations should include a clear statement that all 
     drinking water, including bottled water, contains 
     contaminants, usually at levels below the threshold that 
     would present a health risk to humans. The presence of 
     contaminants in drinking water does not necessarily indicate 
     that the drinking water is unsafe for human consumption. If 
     consumers have any questions regarding the levels of 
     contaminants detected in their drinking water or the safety 
     of their drinking water, they should be directed to contact 
     either their drinking water supplier or EPA at the toll-free 
     hotline number.
     Bottled water study (sec. 114(b))
       The conference agreement provides that the Administrator of 
     the FDA shall provide a study of the feasibility of 
     appropriate methods, if any, of informing customers of the 
     contents of bottled water. The study is intended to provide 
     information on the feasibility of informing customers 
     concerning the contents of bottled water, and is not intended 
     to prejudge the question of whether such information 
     requirements are necessary.
     Exemptions (sec. 117)
       Management changes referred to in the conference agreement 
     may include rate increases, accounting changes, the hiring of 
     consultants, the appointment of a technician with expertise 
     in operating such systems, contractual arrangements for a 
     more efficient and capable system for joint operation,

[[Page H9702]]

     or other reasonable strategies to improve capacity. 
     Restructuring changes referred in the conference agreement 
     may include ownership change, physical consolidation with 
     another system, or other measures to otherwise improve 
     customer base and gain economies of scale.
     Capacity development (sec. 119)
       The phrase ``legal authority or other means'' is intended 
     to require a State to have the actual authority to ensure 
     that all new community water systems demonstrate the 
     technical, managerial and financial capacity to comply with 
     the Safe Drinking Water Act. These could include regulations, 
     training, and bonding requirements.
       States are also to adopt and implement a capacity 
     development strategy. This is intended to encourage States to 
     continue to focus resources on capacity development 
     initiatives. States are required to consider, solicit public 
     comment on, and include as deemed appropriate by the State, a 
     number of elements and criteria.
       The Conferees do not expect that every State will adopt the 
     same capacity development strategy and do not expect States 
     to include elements in section 142(c) that the States 
     determine are not appropriate. It is not expected that every 
     State will give the same consideration to each of the 
     elements listed in section 1420(c). Rather, the Conferees 
     expect that, as suggested by existing State capacity 
     development programs, State capacity development strategies 
     developed under this section will very according to the 
     unique needs of the State. The Conferees encourage this 
     diversity and indicate that EPA should give deference to a 
     State's determination as to content and manner of 
     implementation of a State plan, so long as the State has 
     solicited and considered public comment on the listed 
     elements and has adopted a strategy that incorporates 
     appropriate provisions.
     Operator certification reimbursement (sec. 123)
       New subsection 1419(c) requires the Administrator to 
     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 section 1419. The Conferees do not consider the 
     term ``unsalaried operators'' to include the persons who 
     receive compensation at an hourly rate, professional 
     consultants, and employees of circuit-rider programs.
     State revolving loan funds (sec. 130)
       The administrator is to include, in the guidance for State 
     loan fund programs to avoid use of the funds to finance 
     expansion of any public water system in anticipation of 
     future population growth. The Administrator is not to 
     preclude the use of SRF financing for facilities with the 
     capacity necessary to meet the objectives of the Safe 
     Drinking Water Act for the population to be served by the 
     facility over its useful life.
       States are allowed to jointly manage the corpus of the new 
     drinking water State loan fund with other revolving loan 
     funds. The requirement that the funds be used solely for 
     purposes that meet the objectives of the Safe Drinking Water 
     Act does not preclude bond pooling arrangements, including 
     cross-collateralization, provided that revenues from the 
     bonds are allocated to the purposes of the Safe Drinking 
     Water Act in the same portion as the funds are used as 
     security for the bonds.
     Estrogenic substances screening program (sec. 136)
       Section 404 of H.R. 3604 as reported out of the House 
     Committee on Commerce formed the basis for section 
     408(p)(3)(B) of the Federal Food, Drug, and Cosmetic Act (21 
     U.S.C. 346a(p)(3) (an estrogenic substances screening 
     program). Section 136 of the Safe Drinking Water Act 
     Amendments of 1996 adds to the authority of the Administrator 
     to provide for testing of substances that may be found in 
     sources of drinking water if the Administrator determines 
     that a substantial population may be exposed to such 
     substances. The Conferees agree that the treatment of 
     substances addressed under this section shall be consistent 
     with the Report of the Commerce Committee (House Rep. 104-
     632, Part I, pp. 55-58).

                   Title II--Drinking Water Research

     Clarifications made in conference
       The House Committee on Commerce and the House Committee on 
     Science have the following understanding on clarifications 
     made in conference. This understanding has no impact on the 
     operation of law.

       In reconciling the text of H.R. 3604, the Safe Drinking 
     Water Act Amendments of 1996, with the text of S. 1316, the 
     Safe Drinking Water Act Amendments of 1995, the Conference 
     Committee agreed to minor word changes, such as from 
     ``research'' to ``study'', and citation changes and 
     deletions, including the deletion of references in the House 
     passed version of section 601. None of these minor changes 
     should be considered to lessen or enhance the House Committee 
     on Science's jurisdictional claim to environmental research 
     involving drinking water issues. None of these minor changes 
     should be considered to lessen or enhance the House Committee 
     on Commerce's jurisdictional claim to biomedical research 
     involving drinking water issues.

                  Title III--Miscellaneous Provisions

     Transfer of funds (sec. 302)
       The following represents an understanding between the House 
     Committee on Commerce and the House Committee on 
     Transportation and Infrastructure. This understanding has no 
     impact on the operation of law.

       The House Commerce Committee, which has jurisdiction over 
     the Safe Drinking Water Act, and the House Transportation and 
     Infrastructure Committee, which has jurisdiction over the 
     Federal Water Pollution Control Act, agree to share 
     jurisdiction over the free-standing provision in section 302 
     of the Safe Drinking Water Act Amendments of 1996 involving 
     transfer of revolving loan funds. This provision allows for 
     the transfer of funds, under specified terms and conditions, 
     between the Safe Drinking Water State Revolving Loan Fund 
     which is under the exclusive jurisdiction of the Commerce 
     Committee and the Clean Water State Revolving Fund which is 
     under the exclusive jurisdiction of the Transportation and 
     Infrastructure Committee.
       For matters directly amending section 302, the two 
     Committees agree that each should be given equal weight in 
     bill referrals, conference appointments, and other 
     jurisdictional assignments. For instance, a bill to amend 
     section 302 to increase the percentage amount that may be 
     transferred between the two revolving funds would be in the 
     joint jurisdiction of the two Committees. Likewise, a direct 
     or indirect amendment to the provisions of section 302 would 
     be in the committees' joint jurisdiction.
       Enactment of this freestanding section does not give the 
     Commerce Committee any jurisdiction over the Federal Water 
     Pollution Control Act, nor does it give the Transportation 
     and Infrastructure Committee any jurisdiction over the Safe 
     Drinking Water Act. Jurisdiction for changes that amend 
     provisions of the Federal Water Pollution Control Act or the 
     Safe Drinking Water Act should be determined without regard 
     to section 302. Thus, for example, a bill to change or impose 
     conditions or limitations on the criteria applicable to a 
     State for the receipt or expenditure of revolving funds under 
     the Safe Drinking Water Act or Federal Pollution Control Act 
     would be in the sole jurisdiction of the Committee on 
     Commerce or the Committee on Transportation and 
     Infrastructure respectively.
     Washington Aqueduct (sec. 306)
       The Senate bill authorized the Secretary of the Army acting 
     through the Chief of Engineers to borrow from the Secretary 
     of the Treasury funds necessary to make capital improvements 
     to the Washington Aqueduct. The Washington Aqueduct provides 
     drinking water to the three wholesale customers of the 
     District of Columbia and the Virginia jurisdictions of 
     Arlington County and the City of Falls Church. Amounts 
     borrowed from the Treasury are to be repaid by the customers.
       The Washington Aqueduct system consists of the Dalecarlia 
     and McMillan water treatment plants located in Washington, 
     D.C. The system was constructed in 1853 and is under the 
     control of the U.S. Army Corps of Engineers for appropriate 
     management and maintenance.
       The conference agreement modifies the Senate provision to 
     authorize for three years the Secretary of the Army to borrow 
     from the Secretary of the Treasury funds to finance capital 
     improvements necessary to assure continued operation of the 
     Washington Aqueduct.
       The conference agreement encourages and provides a process 
     for the establishment of a regional entity--or the use of an 
     existing entity--to own, operate, maintain and manage the 
     Washington Aqueduct in a manner that fully represents all 
     interests of the non-Federal public water supply customers. 
     The Secretary of the Army is directed to transfer within the 
     three year period all right, title, and interest in 
     Washington Aqueduct after receiving the consent of a majority 
     of the customers. The Conferees express a strong preference 
     for a consensus among all of the customers prior to any 
     transfer of the Washington Aqueduct under this section.

Title IV--Additional Assistance for Water Infrastructure and Watersheds

       The conference agreement includes the House provision 
     regarding the national grants program for water 
     infrastructure and watershed, with a modification to provide 
     that $25 million per year is conditioned on the appropriation 
     of 75 percent for the amounts authorized per year for the 
     drinking water state loan fund. Provisions on the New York 
     City Watershed and Alaska rural and Native villages are 
     contained in other titles of the conference agreement.
       As in the House bill, section 401(a) establishes a national 
     program for technical and financial assistance grants for 
     water supply systems and source water quality protection 
     programs. The Administrator is directed to provide priority 
     consideration to the following:
       (1) Drinking water infrastructure projects for areas 
     described in section 313 of the Water Resources Development 
     Act of 1992 (P.L. 102-580);
       (2) Construction of an alternative water supply system for 
     the area referred to in section 219(c)(5) of the Water 
     Resources Development Act of 1992 (P.L. 102-580);
       (3) Attleboro, Massachusetts, and Worcester, Massachusetts, 
     for ratepayer assistance relating to water infrastructure 
     facilities, in addition to other assistance in the form of 
     low interest loans and negative interest rates;
       (4) Buffalo, New York, for construction, rehabilitation, 
     and improvement of water treatment facilities;

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       (5) Bad Axe, Michigan, for connection of its drinking water 
     system to the municipal system in Port Austin, Michigan;
       (6) Georgetown, Illinois, for construction and related 
     activities intended to increase the capacity of the City's 
     water supply reservoir and enhance source water quality 
     protection;
       (7) Morgan County, Tennessee, for water line extensions and 
     related infrastructure assistance;
       (8) Northwest Iowa, for water infrastructure facilities 
     that are either part of or separate from the proposed Lewis 
     and Clark Rural Water System;
       (9) Olney, Illinois for construction of new water tower and 
     Millstone Water District, Harrisburg, Illinois for completion 
     of Phase I of a water line extension project;
       (10) Philadelphia, Pennsylvania, acting through the 
     Fairmount Park Commission, for improvement and restoration of 
     aquatic systems at Pennypack Park;
       (11) San Bernardino County, California, for water 
     infrastructure assistance related to the Mojave River 
     Pipeline;
       (12) Springfield, Illinois, for financial and technical 
     assistance to complete the planning, design, and construction 
     of a water supply reservoir;
       (13) Tenino, Washington, for water supply infrastructure, 
     including work related to wells, hydrants, and water lines;
       (14) Madison, Ohio, for waterline replacement and booster 
     station needs;
       (15) Bridger Valley Joint Board, Wyoming, for the study and 
     construction of needed improvements in the water supply 
     system;
       (16) Treasure Valley Hydrologic Project, to study the 
     Treasure Valley aquifer system to develop a better 
     understanding of the regional hydraulic stresses and their 
     impacts on source waters in the Boise Basin;
       (17) Beuna Borough, New Jersey, to remediate mercury levels 
     in the water supply and to provide alternative drinking water 
     for residents;
       (18) Projects for areas described in section 219(c) (16) 
     and (17) of the Water Resources Development Act of 1992;
       (19) Berlin, New Hampshire, for a filtration plant and 
     associated facilities;
       (20) South Tahoe Public Utility District to replace the 
     export pipeline for reclaimed water;
       (21) Projects described in section 307 of the Water 
     Resources Development Act of 1992;
       (22) Cranston, Rhode Island, for a wastewater regional 
     connector system;
       (23) Funding for construction of filtration plants in 
     Connecticut; and
       (24) Perth Amboy, New Jersey, to protect the drinking water 
     supply through multimedia programs to remediate pollution in 
     the Runyon Watershed.

                      Title V--Clerical Amendments

       The conference agreement makes miscellaneous technical and 
     clerical changes.

     From the Committee on Commerce, for consideration of the 
     Senate bill (except for secs. 28(a) and 28(e)) and the House 
     amendment (except for title V), and modifications committed 
     to conference:
     Tom Bliley,
     Mike Bilirakis,
     Mike Crapo,
     Brian P. Bilbray,
     From the Committee on Commerce, for consideration of secs. 
     28(a) and 28(e) of the Senate bill, and modifications 
     committed to conference:
     Tom Bliley,
     Mike Bilirakis,
     As additional conferees from the Committee on Science, for 
     the consideration of that portion of section 3 that adds a 
     new sec. 1478 and secs. 23, 25(f), and 28(f) of the Senate 
     bill, and that portion of sec. 308 that adds a new sec. 
     1452(n) and sec. 402 and title VI of the House amendment, and 
     modifications committed to conference:
     Robert S. Walker,
     Dana Rohrabacher,
     Tim Roemer,
     As additional conferees from the Committee on Transportation 
     and Infrastructure, for the consideration of that portion of 
     sec. 3 that adds a new sec. 1471(c) and secs. 9, 17, 22(d), 
     25(a), 25(g), 28(a), 28(e), 28(h), and 28(i) of the Senate 
     bill, and title V of the House amendment and modifications 
     committed to conference:
     Bud Shuster,
     Sherwood Boehlert,
     Zack Wamp,
     Robert A. Borski,
     Robert Menendez,
     Provided, Mr. Blute is appointed in lieu of Mr. Wamp for 
     consideration of title V of the House amendment:
     Peter Blute,
                                Managers on the Part of the House.

     John H. Chafee,
     Dirk Kempthorne,
     Craig Thomas,
     John Warner,
     Max Baucus,
     Harry Reid,
     Frank Lautenberg,
     Managers on the Part of the Senate.

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