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                                                      Calendar No. 125
116th Congress      }                                   {       Report
                                 SENATE
 1st Session        }                                   {       116-63

======================================================================

 
    TO PERMIT STATES TO TRANSFER CERTAIN FUNDS FROM THE CLEAN WATER 
 REVOLVING FUND OF A STATE TO THE DRINKING WATER REVOLVING FUND OF THE 
         STATE IN CERTAIN CIRCUMSTANCES, AND FOR OTHER PURPOSES

                                _______
                                

                 July 23, 2019.--Ordered to be printed

                                _______
                                

   Mr. Barrasso, from the Committee on Environment and Public Works, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1689]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, to which was 
referred the bill (S. 1689) to permit States to transfer 
certain funds from the clean water revolving fund of a State to 
the drinking water revolving fund of the State in certain 
circumstances, and for other purposes, having considered the 
same, reports favorably thereon without amendment and 
recommends that the bill do pass.

                    GENERAL STATEMENT AND BACKGROUND

    Lead is a toxic chemical that causes serious health 
problems. Excessive and harmful levels of lead have been found 
in water systems across all fifty states. Those water systems 
serve drinking water to millions of people in the United 
States. States have access to both clean water state revolving 
funds (CWSRF) and drinking water state revolving funds (DWSRF). 
Not all states have sufficient funds in their DWSRF to address 
the threat to public health from heightened exposure to lead in 
drinking water. However, some states have available funds in 
their CWSRF that could be used to provide additional resources 
to help address lead in drinking water.
    Currently states have the ability to transfer up to 33 
percent of the annual capitalization grants they are awarded 
from one state revolving fund to the other, if the state 
decides to do so, in consultation with the Administrator of the 
Environmental Protection Agency (EPA). However, some states 
have already transferred the maximum allowable amount from 
their annual CWSRF grants to the DWSRF, but have additional 
available funds in their CWSRF that could be used immediately 
to address a threat to public health from lead in drinking 
water. This bill allows a state to transfer an additional 5 
percent of its CWSRF's total cumulative dollars to its DWSRF in 
order to address a threat to public health caused by elevated 
exposure to lead in drinking water. This decision is up to the 
states' discretion; it is not mandatory. This authority expires 
one year after enactment.

                     OBJECTIVES OF THE LEGISLATION

    The objective of this bill is to permit a state to transfer 
additional funds from its CWSRF to its DWSRF in order to 
address the threat to public health from heightened exposure to 
lead in drinking water.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Transfer authority

    Establishes congressional findings that lead is a toxic 
chemical which is harmful to human health and specifically to 
young children; that some states do not have sufficient funds 
to cover the costs of lead abatement; and that some states have 
funds remaining in their CWSRFs that could be used to assist in 
addressing lead in drinking water.
    Authorizes any state, in consultation with the EPA, to 
transfer an additional 5 percent of the total cumulative 
dollars of its CWSRF to its DWSRF in order to address the 
threat of lead in drinking water. Funds may be used in the form 
of a grant, forgiveness of principal, negative interest, loan, 
or a combination of these mechanisms. Limits the authorization 
to one year.

                          LEGISLATIVE HISTORY

    On May 23, 2019, Senator Booker introduced S. 1689, a bill 
to permit states to transfer certain funds from the clean water 
revolving fund of a state to the drinking water revolving fund 
of the state in certain circumstances, and for other purposes, 
also known as the Water Infrastructure Funding Transfer Bill. 
The bill was referred to the Committee on Environment and 
Public Works. The EPW Committee reported S. 1689 by voice vote 
on June 19, 2019.

                                HEARINGS

    No hearing was held on S. 1689.

                             ROLLCALL VOTES

    On June 19, 2019, the Committee on Environment and Public 
Works met to consider S. 1689. The bill was ordered favorably 
reported without amendment by voice vote. No roll call votes 
were taken.

                      REGULATORY IMPACT STATEMENT

    In compliance with section 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee finds that S. 1689 
does not create any additional regulatory burdens, nor will it 
cause any adverse impact on the personal privacy of 
individuals.

                          MANDATES ASSESSMENT

    In compliance with the Unfunded Mandates Reform Act of 1995 
(Public Law 104-4), the Committee notes that the Congressional 
Budget Office found that S. 1689 contains no intergovernmental 
or private-sector mandates.

                          COST OF LEGISLATION

    Section 403 of the Congressional Budget and Impoundment 
Control Act requires that a statement of the cost of the 
reported bill, prepared by the Congressional Budget Office, be 
included in the report. That statement follows:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 28, 2019.
Hon. John Barrasso,
Chairman, Committee on Environment and Public Works,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1689, a bill to 
permit States to transfer certain funds from the clean water 
revolving fund of a State to the drinking water revolving fund 
of the State in certain circumstances, and for other purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Stephen 
Rabent.
            Sincerely,
                                                 Phillip L. Swagel.
    Enclosure.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    

    Under current law, the Environmental Protection Agency 
(EPA) provides capitalization grants under the Clean Water 
State Revolving Loan Fund (CWSRF) and Drinking Water State 
Revolving Loan Fund (DWSRF) programs to the CWSRFs and DWSRFs 
operated by states. Those grant funds, along with states own 
funds, are used to provide loans and other assistance to water 
infrastructure projects. States are currently authorized to 
transfer up to 33 percent of the capitalization grants they are 
awarded from one fund to the other. S. 1689 would authorize 
states, in consultation with EPA, to transfer up to 5 percent 
more of the federal grant funds in their CWSRF to their DWSRF 
for projects to address public health threats related to lead 
exposure in drinking water. That authority would expire one 
year after enactment.
    Using information from EPA, CBO estimates that implementing 
S. 1689 would require the agency to update program guidance and 
would cost less than $500,000 over the 2019-2024 period. 
Implementing the bill also would have a negligible net effect 
on EPA's spending on capitalization grants as any decreases in 
spending on CWSRF grants would have a corresponding increase in 
spending on DWSRF grants. Any spending would be subject to the 
availability of appropriated funds.
    The CBO staff contact for this estimate is Stephen Rabent. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

                        CHANGES IN EXISTING LAW

    Section 12 of rule XXVI of the Standing Rules of the Senate 
requires the committee to publish changes in existing law made 
by the bill as reported. Passage of this bill will make no 
changes to existing law.

                                  [all]