Sludge Management Act

Sludge Management Act - Directs the Administrator of the Environmental Protection Agency to study the environmental, health, and economic effects of subsurface landfilling sludge on soils and ground water, and alternate methods of sludge disposal. Directs the Administrator to develop guidelines for sludge disposal and land-spreading in order to protect the public health and welfare.

Authorizes the Administrator to make grants to States and localities of up to 40 percent of the cost of removal of sludge from navigable waters of the United States or any adjacent shoreline. Directs the Administrator to establish an Environmental Protection Agency Task Force on sludge removal. Authorizes the establishment of programs of training, demonstration, and surveys relating to the restoration of water quality where degraded by sludge.

Directs the Administrator to establish criteria for regulating and controlling the transportation, storage, and disposal of hazardous sludge. Establishes a permit program for activities relating to hazardous sludge two years after the enactment of this Act.

Establishes procedures for adoption and approval of State hazardous sludge permit programs in accordance with criteria prescribed by the Administrator.

Amends the Federal Water Pollution Control Act to prohibit grants for treatment works, after September 30, 1976, unless the applicant demonstrates that adequate confined disposal methods will be provided.