text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Clean Water Infrastructure Financing 
  Act of 2005''.
  
  SEC. 2. GENERAL AUTHORITY FOR CAPITALIZATION GRANTS.
  
      Section 601(a) of the Federal Water Pollution Control Act (33 
  U.S.C. 1381(a)) is amended by striking ``(1) for construction'' and all 
  that follows through the period at the end and inserting ``to 
  accomplish the purposes of this Act.''.
  
  SEC. 3. CAPITALIZATION GRANTS AGREEMENTS.
  
      (a) Requirements for Construction of Treatment Works.--Section 
  602(b)(6) of the Federal Water Pollution Control Act (33 U.S.C. 
  1382(b)(6)) is amended--
              (1) by striking ``before fiscal year 1995''; and
              (2) by striking ``201(b)'' and all that follows through 
          ``218,'' and inserting ``211,''.
      (b) Guidance for Small Systems.--Section 602 of the Federal Water 
  Pollution Control Act (33 U.S.C. 1382) is amended by adding at the end 
  the following:
      ``(c) Guidance for Small Systems.--
              ``(1) Simplified procedures.--Not later than 1 year after 
          the date of enactment of this subsection, the Administrator 
          shall assist the States in establishing simplified procedures 
          for small systems to obtain assistance under this title.
              ``(2) Publication of manual.--Not later than 1 year after 
          the date of enactment of this subsection, after providing 
          notice and opportunity for public comment, the Administrator 
          shall publish--
                      ``(A) a manual to assist small systems in obtaining 
                  assistance under this title; and
                      ``(B) in the Federal Register, notice of the 
                  availability of the manual.
              ``(3) Definition of small system.--In this title, the term 
          `small system' means a system for which a municipality or 
          intermunicipal, interstate, or State agency seeks assistance 
          under this title and that serves a population of 20,000 or 
          fewer inhabitants.''.
  
  SEC. 4. WATER POLLUTION CONTROL REVOLVING FUNDS.
  
      (a) Activities Eligible for Assistance.--Section 603 of the Federal 
  Water Pollution Control Act (33 U.S.C. 1383) is amended by striking 
  subsection (c) and inserting the following:
      ``(c) Activities Eligible for Assistance.--
              ``(1) In general.--The water pollution control revolving 
          fund of a State shall be used only for providing financial 
          assistance for activities that have, as a principal benefit, 
          the improvement or protection of the water quality of navigable 
          waters to a municipality, intermunicipal, interstate, or State 
          agency, or other person, including activities such as--
                      ``(A) construction of a publicly owned treatment 
                  works;
                      ``(B) implementation of lake protection programs 
                  and projects under section 314;
                      ``(C) implementation of a nonpoint source 
                  management program under section 319;
                      ``(D) implementation of an estuary conservation and 
                  management plan under section 320;
                      ``(E) restoration or protection of publicly or 
                  privately owned riparian areas, including acquisition 
                  of property rights;
                      ``(F) implementation of measures to improve the 
                  efficiency of public water use;
                      ``(G) development and implementation of plans by a 
                  public recipient to prevent water pollution; and
                      ``(H) acquisition of land necessary to meet any 
                  mitigation requirements related to construction of a 
                  publicly owned treatment works.
              ``(2) Fund amounts.--
                      ``(A) Repayments.--The water pollution control 
                  revolving fund of a State shall be established, 
                  maintained, and credited with repayments.
                      ``(B) Availability.--The balance in the fund shall 
                  be available in perpetuity for providing financial 
                  assistance described in paragraph (1).
                      ``(C) Fees.--Fees charged by a State to recipients 
                  of the assistance may be deposited in the fund and may 
                  be used only to pay the cost of administering this 
                  title.''.
      (b) Extended Repayment Period for Financially Distressed 
  Communities.--Section 603(d)(1) of the Federal Water Pollution Control 
  Act (33 U.S.C. 1383(d)(1)) is amended--
              (1) in subparagraph (A), by inserting after ``20 years'' 
          the following: ``or, in the case of a financially distressed 
          community, the lesser of 40 years or the expected life of the 
          project to be financed with the proceeds of the loan''; and
              (2) in subparagraph (B), by striking ``not later than 20 
          years after project completion'' and inserting ``on the 
          expiration of the term of the loan''.
      (c) Loan Guarantees.--Section 603(d) of the Federal Water Pollution 
  Control Act (33 U.S.C. 1383(d)) is amended by striking paragraph (5) 
  and inserting the following:
              ``(5) to provide loan guarantees for--
                      ``(A) similar revolving funds established by 
                  municipalities or intermunicipal agencies; and
                      ``(B) developing and implementing innovative 
                  technologies;''.
      (d) Administrative Expenses.--Section 603(d)(7) of the Federal 
  Water Pollution Control Act (33 U.S.C. 1383(d)(7)) is amended by 
  inserting before the period at the end the following: ``or the greater 
  of $400,000 per year or an amount equal to \1/2\ percent per year of 
  the current valuation of the fund, plus the amount of any fees 
  collected by the State under subsection (c)(2)(C)''.
      (e) Technical and Planning Assistance for Small Systems.--Section 
  603(d) of the Federal Water Pollution Control Act (33 U.S.C. 1383(d)) 
  is amended--
              (1) in paragraph (6), by striking ``and'' at the end;
              (2) in paragraph (7), by striking the period at the end and 
          inserting ``; and''; and
              (3) by adding at the end the following:
              ``(8) to provide to small systems technical and planning 
          assistance and assistance in financial management, user fee 
          analysis, budgeting, capital improvement planning, facility 
          operation and maintenance, repair schedules, and other 
          activities to improve wastewater treatment plant operations, 
          except that the amounts used under this paragraph for a fiscal 
          year shall not exceed 2 percent of all grants provided to the 
          fund for the fiscal year under this title.''.
      (f) Consistency With Planning Requirements.--Section 603(f) of the 
  Federal Water Pollution Control Act (33 U.S.C. 1383(f)) is amended by 
  striking ``is consistent'' and inserting ``is not inconsistent''.
      (g) Construction Assistance.--Section 603 of the Federal Water 
  Pollution Control Act (33 U.S.C. 1383) is amended by striking 
  subsection (g) and inserting the following:
      ``(g) Construction Assistance.--
              ``(1) Priority list requirement.--The State may provide 
          financial assistance from the water pollution control revolving 
          fund of the State for a project for construction of a publicly 
          owned treatment works only if the project is on the priority 
          list of the State under section 216, without regard to the rank 
          of the project on the list.
              ``(2) Eligibility of certain treatment works.--A treatment 
          works shall be treated as a publicly owned treatment works for 
          purposes of subsection (c) if the treatment works, without 
          regard to ownership, would be considered a publicly owned 
          treatment works and is principally treating municipal waste 
          water or domestic sewage.''.
      (h) Principal Subsidization.--Section 603 of the Federal Water 
  Pollution Control Act (33 U.S.C. 1383) is amended by adding at the end 
  the following:
      ``(i) Principal Subsidization.--
              ``(1) In general.--Subject to paragraph (2), in a case in 
          which a State makes a loan under subsection (d)(1) to a 
          financially distressed community, the State may provide 
          additional subsidization to the loan recipient (including 
          forgiveness of principal).
              ``(2) Limitation.--For each fiscal year, the total amount 
          of loan subsidies made by a State under this subsection shall 
          not exceed 30 percent of the amount of the capitalization grant 
          received by the State for that fiscal year.
      ``(j) Information to Assist States.--The Administrator may publish 
  information to assist States in establishing the affordability criteria 
  referred to in subsection (l).
      ``(k) Priority.--In making a loan under this section, a State may 
  give priority to a financially distressed community.
      ``(l) Definition of Financially Distressed Community.--In this 
  section, the term `financially distressed community' means any 
  community that meets affordability criteria that are--
              ``(1) established by the State in which the community is 
          located; and
              ``(2) developed after public review and comment.''.
  
  SEC. 5. AUTHORIZATION OF APPROPRIATIONS.
  
      Section 607 of the Federal Water Pollution Control Act (33 U.S.C. 
  1387) is amended by striking ``the following sums:'' and all that 
  follows through the period at the end of paragraph (5) and inserting 
  ``$4,000,000,000 for each of fiscal years 2006 through 2010.''.
target: Clean Water Infrastructure Financing Act of 2005 - Amends the Federal Water Pollution Control Act to eliminate certain restrictions on capitalization grants to states under the water pollution control revolving fund program and to direct the Administrator of the Environmental Protection Agency (EPA) to make such grants to accomplish the purposes of the Act.
  
  Revises certain requirements for the construction of publicly-owned treatment works under capitalization grant agreements.
  
   Directs the Administrator to assist states in establishing simplified procedures for small water systems (serving populations of 20,000 or less) to obtain assistance under the Act. Requires state water pollution control revolving funds to be used only for providing assistance for activities which have as a principal benefit the improvement or protection of water quality of navigable waters. Makes revisions concerning uses of funds for: (1) innovative technologies; (2) administrative expenses; (3) small system technical, planning, and management assistance; (4) financially distressed communities; and (5) construction assistance. Authorizes states to give priority to financially distressed communities in making loans from revolving funds. Reauthorizes appropriations for FY2006-2010 for the water pollution control revolving fund program.
feat_title: A bill to amend the Federal Water Pollution Control Act to authorize appropriations for States water pollution control revolving funds, and for other purposes.