Water Infrastructure Financing Act

(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)

Water Infrastructure Financing Act - Title I: Water Pollution Infrastructure - (Sec. 101) Amends the Federal Water Pollution Control Act (commonly known as the Clean Water Act) to authorize the Administrator of the Environmental Protection Agency (EPA) to make grants to qualified nonprofit technical assistance providers to: (1) assist owners and operators of small (serving not more than 10,000 individuals) and medium (serving more than 10,000 but fewer than 100,000 individuals) treatment works on wastewater and stormwater approaches to plan, develop, and obtain financing for eligible water pollution control revolving loan funds projects; (2) provide financial assistance to such owners and operators for predevelopment costs associated with stormwater or wastewater infrastructure projects or short-term costs incurred for equipment replacement that is not part of regular operation and maintenance activities for existing stormwater or wastewater systems if the amount of assistance for any single project does not exceed $50,000; (3) provide technical assistance and training for such owners and operators to enable such treatment works and systems to protect water quality and achieve and maintain compliance with such Act; and (4) disseminate information to such owners and operators with respect to planning, design, construction, and operation of treatment works, small municipal separate storm sewer systems, and decentralized wastewater treatment systems.

Requires the Administrator to ensure that technical assistance is made available in each state.

Sets forth reporting requirements for nonprofits that receive grants.

Authorizes appropriations for FY2009-FY2013.

Requires the Administrator to assist states in establishing simplified procedures for small systems to obtain assistance.

(Sec. 102) Requires funds in each state water pollution control revolving loan fund (commonly known as the Clean Water State Revolving Fund or CWSRF) to be used only by a municipality, an intermunicipal, interstate, or state agency, or a private treatment works or decentralized wastewater system that principally treats municipal wastewater or domestic sewage: (1) to provide financial assistance for construction activities to control, manage, reduce, treat, infiltrate, or reuse municipal stormwater, the primary purpose of which is the protection, preservation, or enhancement of water quality to support public purposes; (2) to implement a nonpoint source management program; (3) to develop and implement a conservation and management plan under the national estuary program; (4) to increase the security of wastewater treatment works; (5) to implement water conservation or efficiency projects or water and wastewater reuse, reclamation, and recycling projects, the primary purpose of which is the protection, preservation, or enhancement of water quality to support public purposes; (6) to implement measures to integrate water resource management planning and implementation; and (7) for capital costs associated with monitoring equipment for combined or sanitary sewer overflows.

(Sec. 103) Extends the terms of CWSRF loans to the lesser of 30 (currently, 20) years or the design life of the project. Requires loans to be amortized upon expiration of the term of the loan (currently, loans must be amortized no later than 20 years after project completion). Limits the amount of CWSRF funds that may be used to administer the CWSRF to no more than 6% (currently 4%) of all grant awards.

Authorizes: (1) a state to provide additional assistance, including loan forgiveness and a negative interest rate on the loan, to disadvantaged communities; and (2) the Administrator to publish information to assist states in establishing affordability criteria.

Authorizes states to forgive repayment of up to 5% of loans for the percentage of a project that treats or minimizes sewage or urban stormwater discharges using: (1) decentralized or distributed stormwater controls; (2) decentralized wastewater treatment; (3) low-impact development technologies and nonstructural approaches; (4) stream buffers; (5) wetland restoration and enhancement; (6) actions to minimize the quantity of and direct connections to impervious surfaces; (7) soil and vegetation or other permeable materials; and (8) actions that increase efficient water use, water conservation, or water reuse.

(Sec. 104) Requires: (1) each state to establish a priority system for providing financial assistance from the CWSRF; and (2) such systems to give greater weights to applications that include specified factors.

(Sec. 105) Authorizes state governors to transfer capitalization grants between revolving loan funds for water pollution control and safe drinking water treatment.

(Sec. 106) Prohibits assistance from being provided to the owner or operator of a treatment works that has been in significant noncompliance with such Act for any four quarters during the preceding eight quarters, unless the treatment works is in compliance with an enforceable administrative order to effect compliance. Sets forth an exception to such a prohibition when the Administrator and the state determine that the enforcement entity has determined that the use of assistance would enable the owner or operator to take corrective action toward resolving the violations or would assist the owner or operator in making progress toward compliance.

(Sec. 107) Sets forth provisions concerning negotiations of contracts that will be carried out with funds from a capitalization grant.

(Sec. 108) Authorizes each state to reserve the greater of 2% or $100,000 from its fiscal year allotment for planning purposes.

(Sec. 109) Extends through FY2012 the authorization of appropriations for CWSRF. Authorizes the Administrator to reserve no more than $1,000,000 for the fiscal year to pay the costs of conducting needs surveys.

(Sec. 110) Authorizes the Administrator to make grants to states for grants to a municipality or a municipal entity for planning, design, and construction of treatment works to intercept, transport, control, or treat municipal combined sewer overflows and sanitary sewer overflows. Authorizes appropriations for such grants for FY2008-FY2012. Requires the Administrator for FY2010 and thereafter to provide grants to states in accordance with a formula that allocates to each state a proportional share of the appropriations based on its need for municipal combined sewer overflow controls.

Requires the Administrator, no later than December 31, 2010, to report to Congress on recommended funding levels for grants to ensure the continued expeditious implementation of municipal combined sewer overflow and sanitary sewer overflow controls nationwide.

(Sec. 111) Revises provisions concerning state eligibility for capitalization grant agreements.

(Sec. 112) Directs the Administrator to establish a grant program for watershed restoration through the protection or improvement of water quality. Authorizes a watershed restoration project to include a project that is in a state's intended use plan. Sets forth provisions concerning cost-sharing requirements.

Authorizes appropriations for FY2008-FY2012.

Title II: Safe Drinking Water Infrastructure - (Sec. 201) Amends the Safe Drinking Water Act to require the Administrator to develop, implement, and report to Congress on an implementation plan for contaminant prevention, detection, and response. Extends through FY2012 funding for such activities.

(Sec. 202) Establishes a priority system for providing assistance to enable small public water systems to achieve and maintain compliance with national primary drinking water regulation.

Requires the Administrator to give grants to nonprofit organizations to provide technical assistance to communities and individuals regarding the design, operation, construction, and maintenance of household wells and small shared well-systems that provide drinking water.

Expands the list of projects eligible for state drinking water treatment revolving loan funds (commonly known as the Drinking Water State Revolving Fund or DWSRF) to include training and education, operation of a hotline, and other activities relating to the design and construction of household, shared, and small water well systems in rural areas. Authorizes funding for FY2009-FY2013 for such wells. Extends through FY2013 the authorization of appropriations for drinking water technical assistance for communities.

(Sec. 203) Requires the Administrator to ensure that each laborer and mechanic employed by a contractor or subcontractor of a construction project financed by a grant, loan, loan guarantee, refinancing, or other form of financial assistance provided under the Safe Drinking Water Act is paid the prevailing wage.

(Sec. 204) Authorizes the DWSRF to be used by a public water system for expenditures for: (1) planning, design, and associated preconstruction activities, including expenditures for siting of the facility; and (2) replacing or rehabilitating aging treatment, storage, or distribution facilities of public water systems or providing for capital projects to upgrade system security.

Authorizes funds to be used by a public water system to increase security at such system, as a source of revenue (restricted solely to interest earnings of the applicable state loan fund), or as security for payment of the principal and interest on revenue or general obligation bonds issued by the state to provide matching funds if the proceeds of the sale of the bonds will be deposited in the state loan fund.

(Sec. 205) Requires an intended use plan to provide that priority for the use of funds shall be given to projects that: (1) address the most serious risk to human health; (2) are necessary to ensure compliance with drinking water infrastructure requirements; and (3) assist systems most in need on a per-household basis.

(Sec. 206) Expands the definition of a "disadvantaged community" to include a portion of a service area of a public water system that meets affordability criteria.

(Sec. 207) Revises provisions concerning the cost of administering the DWSRF.

(Sec. 208) Authorizes funding for implementation of source water protection plans. Limits such funding to no more than 15% of the amount of the capitalization grant received by a state.

(Sec. 209) Extends through FY2012 funding for the DWSRF.

(Sec. 210) Sets forth provisions concerning negotiations of contracts to be carried out with funds from a capitalization grant.

(Sec. 211) Directs the Administrator to establish a grant program to assist community water systems in meeting the requirements of the Safe Drinking Water Act. Provides for project selection under such grant program. Authorizes appropriations for FY2008-FY2012.

(Sec. 212) Requires the galvanic effects from replacing lead service lines in the District of Columbia to be addressed prior to replacement. Authorizes appropriations for such replacement in the District of Columbia for FY2008-FY2012. Authorizes a specified amount of such funds to be allocated for line replacement grants to provide assistance to low-income residents to replace the privately-owned portion of lead service lines.

Title III: Miscellaneous -- (Sec. 302) Requires the Administrator to establish a grant program to research and develop the use of innovative and alternative technologies to improve water quality or drinking water supply. Authorizes the Administrator to select projects relating to such matters as innovative or alternative technologies, approaches, practices, or methods to: (1) increase the effectiveness and efficiency of water and wastewater infrastructure through the use of integrated water resource management; (2) increase the effectiveness and efficiency of public water systems, municipal separate storm sewer systems, and combined sewer systems; (3) encourage the use of innovative or alternative technologies or approaches relating to water supply or availability; (4) increase the effectiveness and efficiency of new and existing treatment works; (5) promote new water treatment technologies and management approaches; or (6) maintain a clearinghouse of technologies and management approaches developed at a research consortium or institute. Requires the Administrator to publish a report on the findings of each grant recipient with respect to the identification of any potential new technologies or management approaches developed.

Requires the Administrator to establish a nationwide demonstration grant program to: (1) promote such innovations in technology and alternative approaches to water quality management or water supply; and (2) reduce costs to municipalities incurred in complying with the Clean Water Act and the Safe Drinking Water Act through such approaches and technologies. Sets forth provisions concerning the selection of municipalities for participation in such grant program.

Requires the Administrator to report biannually to the Senate Committee on Environment and Public Works and the House Committee on Transportation and Infrastructure and the House Committee on Energy and Commerce on the status and results of the grant programs.

Authorizes appropriations for FY2008-FY2012.

(Sec. 303) Requires the Administrator to provide capitalization grants to states for agricultural pollution control technology revolving funds. Sets forth eligibility requirements. Authorizes appropriations.

(Sec. 304) Requires the Administrator to identify ways to improve the state revolving fund review process.

(Sec. 305) Requires the Administrator to enter into an arrangement with the National Academy of Sciences (NAS) for a study of the means by which public water systems and treatment works meet the costs associated with operations, maintenance, capital replacement, and regulatory requirements. Sets forth required elements. Requires the Administrator to submit the study to Congress, report on the results of the study, and make the results available for use by publicly owned treatment works and public water systems in determining whether new approaches may be implemented. Authorizes appropriations for FY2008-FY2009.

(Sec. 306) Requires the Administrator to enter into an arrangement with NAS for a study on innovative, effective, and systematic approaches for the management of water supply, wastewater, and stormwater in urban areas and surrounding communities in the United States and other countries. Authorizes appropriations for FY2009-FY2012.

(Sec. 307) Reduces amounts authorized to be appropriated under this Act by 2%.