A bill to amend the Federal Water Pollution Control Act.

Amends the Federal Water Pollution Control Act to prohibit the Administrator of the Environmental Protection Agency from making grants to States or municipalities for treatment works unless the grant applicant has demonstrated to the Administrator that it has studied and evaluated new waste water treatment processes and methods of joint treatment systems for municipal and industrial waste.

Increases the Federal share of grants for certain treatment works.

Directs the Administrator to publish guidelines for identifying and evaluating new wastewater treatment processes.

Limits the amount of funds which may be expended by States for increasing grants for construction of treatment works.