To amend the Federal Water Pollution Control Act to establish a National Clean and Safe Water Fund and to authorize the Administrator of the Environmental Protection Agency to use amounts in the Fund to carry out projects to promote the recovery of waters of the United States from damage resulting from violations of that Act and the Safe Drinking Water Act, and for other purposes.

July 31 (legislative day, JULY 21), 2003

Mr. REED (for himself, Mr. VOINOVICH, Mr. SARBANES, Ms. SNOWE, Mr. JEFFORDS, Mr. LEVIN, and Mr. HARKIN) introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works

To amend the Federal Water Pollution Control Act to establish a National Clean and Safe Water Fund and to authorize the Administrator of the Environmental Protection Agency to use amounts in the Fund to carry out projects to promote the recovery of waters of the United States from damage resulting from violations of that Act and the Safe Drinking Water Act, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `National Clean and Safe Water Fund Act of 2003'.

SEC. 2. FINDINGS.

Congress finds that--

(1) the Administrator of the Environmental Protection Agency has determined that more than 40 percent of the assessed water of the United States does not meet applicable water quality standards established by States, territories, and Indian tribes;

(2) the water described in paragraph (1) includes approximately 300,000 miles of rivers and shorelines, and approximately 5,000,000 acres of lakes, that are polluted by sediments, excess nutrients, and harmful microorganisms;

(3) Congress enacted--

(A) the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) to maintain the chemical, physical, and biological integrity of water of the United States; and

(B) the Safe Drinking Water Act (42 U.S.C. 300f et seq.) to protect public health by regulating the public drinking water supply of the United States;

(4) because criminal, civil, and administrative penalties assessed under the Acts referred to in paragraph (3) are returned to the Treasury, those amounts are not available to protect, preserve, or enhance the quality of water in watersheds in which violations of those Acts occur; and

(5) the establishment of a national clean and safe water fund would help States in achieving the goals described in paragraph (1) by providing funding to protect and improve watersheds and aquifers.

SEC. 3. NATIONAL CLEAN AND SAFE WATER FUND.

Section 309 of the Federal Water Pollution Control Act (33 U.S.C. 1319) is amended by adding at the end the following:

`(h) NATIONAL CLEAN AND SAFE WATER FUND-

`(1) ESTABLISHMENT- There is established in the Treasury a fund to be known as the `National Clean and Safe Water Fund' (referred to in this subsection as the `Fund') consisting of amounts transferred to the Fund under paragraph (2) and amounts credited to the Fund under paragraph (3).

`(2) TRANSFER OF AMOUNTS- Notwithstanding any other provision of law, for fiscal year 2003 and each fiscal year thereafter, the Secretary of the Treasury shall transfer to the Fund an amount determined by the Secretary to be equal to the total amount deposited in the general fund of the Treasury in the preceding fiscal year from fines, penalties, and other funds collected as a result of enforcement actions brought under this section, section 505(a)(1), or the Safe Drinking Water Act (42 U.S.C. 300f et seq.), excluding any amounts ordered to be used to carry out projects in accordance with subsection (d).

`(3) INVESTMENT OF AMOUNTS-

`(A) IN GENERAL- The Secretary of the Treasury shall invest in interest-bearing obligations of the United States such portion of the Fund as is not, in the judgment of the Secretary, required to meet current withdrawals.

`(B) ADMINISTRATION- The obligations shall be acquired and sold and interest on, and the proceeds from the sale or redemption of, the obligations shall be credited to the Fund in accordance with section 9602 of the Internal Revenue Code of 1986.

`(4) USE OF AMOUNTS FOR WATER QUALITY PROJECTS-

`(A) IN GENERAL- Amounts in the Fund shall be available to the Administrator, subject to appropriation, to carry out projects the primary purpose of which is water quality maintenance or improvement, including--

`(i) water conservation projects;

`(ii) wetland protection and restoration projects;

`(iii) contaminated sediment projects;

`(iv) drinking water source protection projects;

`(v) projects consisting of best management practices that reduce pollutant loads in an impaired or threatened body of water;

`(vi) decentralized stormwater or wastewater treatment projects, including low-impact development practices;

`(vii) projects consisting of conservation easements or land acquisition for water quality protection;

`(viii) projects consisting of construction or maintenance of stream buffers;

`(ix) projects for planning, design, and construction of treatment works to remediate or control combined or sanitary sewer overflows; and

`(x) such other similar projects as the Administrator determines to be appropriate.

`(B) LIMITATIONS ON USE OF FUNDS- Amounts in the Fund--

`(i)(I) shall be used only to carry out projects described in subparagraph (A); and

`(II) shall not be used by the Administrator to pay the cost of any legal or administrative expense incurred by the Administrator (except a legal or administrative expense relating to administration of the Fund); and

`(ii) shall be in addition to any amount made available to carry out projects described in subparagraph (A) under any other provision of law.

`(5) SELECTION OF PROJECTS-

`(A) PRIORITY- In selecting among projects eligible for assistance under this subsection, the Administrator shall give priority to a project described in paragraph (4) that is located in a watershed in a State in which there has occurred a violation under this Act or the Safe Drinking Water Act (42 U.S.C. 300f et seq.) for which an enforcement action was brought that resulted in the payment of an amount into the general fund of the Treasury.

`(B) SELECTION CRITERIA- The Administrator, in consultation with the United States Geological Survey and other appropriate agencies, shall establish criteria that maximize water quality improvement in watersheds and aquifers for use in selecting projects to carry out under this subsection.

`(C) COORDINATION WITH STATES- In selecting a project to carry out under this subsection, the Administrator shall coordinate with the State in which the Administrator is considering carrying out the project.

`(6) IMPLEMENTATION-

`(A) IN GENERAL- Subject to subparagraph (B), the Administrator may carry out a project under this subsection making grants to--

`(i) another Federal agency;

`(ii) a State agency;

`(iii) a political subdivision of a State;

`(iv) a publicly-owned treatment works;

`(v) a nonprofit entity;

`(vi) a public water system (as defined in section 1401 of the Safe Drinking Water Act (42 U.S.C. 300f));

`(vii) a Federal interstate water compact commission;

`(viii) an Indian tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)); or

`(ix) a Native Hawaiian (as defined in section 12 of the Native Hawaiian Health Care Improvement Act (42 U.S.C. 11710)).

`(B) EXCLUSION- Under subparagraph (A), the Administrator may not make any grant to or enter into any contract with any private entity that is subject to regulation under--

`(i) this Act; or

`(ii) the Safe Drinking Water Act (42 U.S.C. 300f et seq.).

`(7) REPORT TO CONGRESS- Not later than 1 year after the date of enactment of this subsection and biennially thereafter, the Administrator shall submit to Congress a report that--

`(A) identifies the projects selected for funding under this subsection during the period covered by the report;

`(B) details the selection criteria established under paragraph (5)(B) that were used to select those projects;

`(C) describes the ways in which the Administrator coordinated with States under paragraph (5)(C) in selecting those projects; and

`(D) describes the priorities for use of funds from the Fund in future years in order to achieve water quality goals in bodies of impaired or threatened water.

`(8) NO EFFECT ON OBLIGATION TO COMPLY- Nothing in this subsection affects the obligation of any person subject to this Act or the Safe Drinking Water Act (42 U.S.C. 300f et seq.) to comply with either of those Acts.'.

SEC. 4. USE OF CIVIL PENALTIES FOR REMEDIAL PROJECTS.

(a) IN GENERAL- Section 309(d) of the Federal Water Pollution Control Act (33 U.S.C. 1319(d)) is amended by inserting after the second sentence the following: `The court may order that a civil penalty assessed under this Act or the Safe Drinking Water Act (42 U.S.C. 300f et seq.) (other than a civil penalty that would otherwise be deposited in the Oil Spill Liability Trust Fund under section 9509 of the Internal Revenue Code of 1986) be used to carry out 1 or more projects in accordance with clauses (i) through (iv) of subsection (h)(4)(A).'.

(b) CONFORMING AMENDMENT- Section 505(a) of the Federal Water Pollution Control Act (33 U.S.C. 1365(a)) is amended in the last sentence by inserting before the period at the end the following: `, including ordering the use of a civil penalty for carrying out projects in accordance with section 309(d)'.

END