To amend the Federal Water Pollution Control Act to provide for a national estuary pollution prevention demonstration program.

Amends the Federal Water Pollution Control Act to direct the Administrator of the Environmental Protection Agency to establish a multimedia national estuary pollution prevention demonstration program to increase the use of modernizing industrial source reduction practices through demonstrations in estuaries. Requires the Administrator to maintain a registry of modernizing toxic use and waste reduction technologies requiring demonstration.

Authorizes persons with permits to discharge into estuaries with approved conservation and management plans to participate in the demonstration program through the institution of: (1) a source reduction practice from the registry if the plan identified the source to be reduced as a problem; or (2) any other innovative source reduction practice subject to a specified determination by the Administrator.

Exempts demonstration program participants from fees for the development of revised effluent guidelines. Grants participants an additional year to comply with new or revised effluent standards as necessary and appropriate.

Directs the Administrator to establish: (1) a pollution prevention extension service to provide an outreach effort to encourage pollution prevention by industrial discharges to estuaries with approved conservation and management plans; and (2) a national estuary pollution prevention clearinghouse.

Permits municipalities located within the watershed of an estuary with an approved plan to apply for technical and financial assistance for: (1) implementing source reduction of toxic pollutants in urban runoff, wastewater, and stormwater and to address problems resulting from failures of underground septic systems; or (2) studying the impacts of separating combined sanitary/stormwater systems in municipalities which have combined systems. Sets forth assistance eligibility requirements.

Authorizes the use of State revolving loan funds for such assistance. Authorizes appropriations.