To amend the Federal Water Pollution Control Act to authorize grants for construction of publicly owned treatment works which discharge pollutants into coastal waters, and for other purposes.

Amends the Federal Water Pollution Control Act to authorize the Administrator of the Environmental Protection Agency to make grants to any State, municipality, or intermunicipal or interstate agency for: (1) the construction of publicly owned treatment works which will discharge pollutants into coastal waters; (2) repairs and upgrades to wastewater treatment plants which discharge pollutants into such waters; (3) efforts to reduce and abate combined sewer overflows which result in such discharges; and (4) additional pollution abatement efforts to address pollution resulting from municipal sewage discharges into such waters.

Gives priority in the awarding of grants to: (1) applications for construction of treatment works which will discharge into an estuary of national significance for which a conference has been convened; (2) applications from municipalities and intermunicipal agencies for application of low-cost, low-maintenance sewage treatment technologies; and (3) applications from municipalities and intermunicipal agencies which are making expenditures for purposes for which such grants are made to the limit of their financial capability.

Limits the Federal share of the cost of construction of a publicly owned treatment works and the total amount of grants for construction in any State.

Authorizes appropriations.