A bill relating to the financing of certain publicly owned treatment works, and for other purposes.

Amends the Clean Water Act to authorize the owner of a publicly owned treatment works that has received financial assistance of any kind under such Act to issue debt with respect to such works and to pledge, as security for repayment of such debt obligation, revenues realized from the operation of such works, subject to the prior payment of the costs of proper operation and maintenance.

Conditions such authorization on at least 95 percent of the proceeds of the debt issuance being used for: (1) the construction portion of a program for the rehabilitation or expansion of the works; (2) the establishment of dedicated funds, trust accounts, or other financial mechanisms to subsidize or stabilize rates to provide for equipment repair or replacement or such other uses as may have demonstrable benefit to the rate payers of the works or to any municipality or public authority directly concerned in the construction or operation of the works; or (3) the financing or securing of the financing of other environmentally designated projects.

Prohibits such debt issuance unless the owner of the works obtains, from a specified State official, a prior determination that such issuance will be in compliance with the requirements of this Act.

Authorizes State water pollution control revolving funds to be used to guarantee, or purchase insurance or letters of credit for, local obligations for equipment, facilities, or plants to be used in conjunction with, or in proximity to, treatment works in operation at the time such a guarantee is made.

States that nothing in the Clean Water Act shall prohibit the owner of a publicly owned treatment works from granting a security interest in any equipment facilities or plants procured pursuant to obligations which have been guaranteed or insured under the authority of this Act.