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DEFINITIONS AND AUTHORIZATIONS

SEC. 13. (a) Section 19 of the Federal Water Pollution Control Act is redesignated as section 112.

(b) Section 112, as redesignated, is further amended (1) by striking 5 "Secretary" wherever it appears and inserting "Administrator"; and (2) by striking "16" and "19" in subsections (1) and (2) and inserting "109" and "112" respectively.

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ALASKA VILLAGE DEMONSTRATION PROJECTS

SEC. 14. (a) Section 20 of the Federal Water Pollution Control Act 10 is redesignated as section 113.

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(b) Section 113, as redesignated, is further amended by striking 12 "Secretary" wherever it appears and inserting "Administrator”.

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Sec. 209-Regional waste treatment management.

Sec. 210-Definitions.

SEC. 15. (a) The Federal Water Pollution Control Act is amended to add a new title II.

(b) Section 8 of the Federal Water Pollution Control Act is redesig26 nated as section 201.

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(c) Section 201, as redesignated, is further amended to read as follows:

"PURPOSE

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"SEC. 201. Beginning in fiscal year 1972, the Administrator, in accordance with the provisions of this title, is authorized to make grants to any State, municipality, or intermunicipal or interstate agency for the construction of treatment works to provide for the treatment of sewage and other wastes of any kind or description prior 34 to the discharge thereof into any waters or otherwise, for the purpose of 35 achieving water quality standards or recycling or reusing water at the 36 most economical cost over the estimated reasonable life of the works, 37 and for the purpose of reports, plans, and specifications made in 38 connection therewith."

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(d) Title II of the Federal Water Pollution Control Act as added 40 by this section is further amended to add nine new sections as follows:

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"FEDERAL SHARE

"SEC. 202. The amount of any grant for approved treatment works under this Title shall be 60 per centum of the estimated reasonable cost (as determined by the Administrator) thereof; except, that the amount of such grant shall be increased to 75 per centum of such 45 estimated reasonable cost if the State agrees to pay, by grant, not 46 less than 15 per centum of the cost of any treatment works constructed 47 in such State.

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"PLANS, SPECIFICATIONS, AND ESTIMATES

"SEC. 203. Each State shall submit to the Administrator for his 3 approval, plans, specifications, and estimates for each proposed project 4 included in, or to be included in, an approved implementation plan 5 under Sec. 303. The Administrator shall act upon such plans, specifica6 tions, and estimates as soon as practicable after the same have been 7 submitted, and his approval of any such project shall be deemed a 8 contractual obligation of the Federal Government for the payment of 9 its proportional contribution. In taking such action, the Administrator 10 shall be guided by the provisions of section 204 of this title.

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"LIMITATIONS AND CONDITIONS

"SEC. 204. (a) Before approving grants for any treatment works under section 202 the Administrator shall determine

"(1) that such works are included in any applicable comprehensive river basin plan developed under section 304 of this Act; "(2) that such works are, or will be, in conformity with the State implementation plan approved under section 303 of this Act;

"(3) that such works (A) have been certified by the appropriate State water pollution control agency as entitled to priority over such other works in the State in accordance with State implementation plan, approved, or to be approved, under section 303 of this Act, and (B) have, or will qualify for a permit under section 402 of this Act;

"(4) that the applicant proposing to construct such works agrees to pay the remaining non-Federal costs of such works and has made adequate provisions satisfactory to the Administrator for assuring proper and efficient operation, including the employment of trained management and operations personnel, and the maintenance of such works in accordance with a plan of operation approved by the State water pollution control agency or, as appropriate, the interstate agency, after construction thereof; and "(5) that such works will provide effective treatment of wastes prior to discharge there of including the use of new or improved treatment systems, processes, and procedures, at the most economic cost, over the estimated reasonable life of the project. "(b) Notwithstanding any other provision of this title, before 38 approving grants for any treatment works under section 202, the Ad39 ministrator shall determine that the applicant (1) has imposed, or will 40 impose, a system of charges to assure that each user of any treat41 ment works participates equitably in the operation, maintenance, 42 depreciation and replacement costs of such works; and (2) has legal, in43 stitutional, managerial, and financial capability to assure adequate 44 operation, maintenance, expansion and replacement of treatment 45 works throughout the applicant's jurisdiction, as determined by the 46 Administrator. The amount of project costs recovered from each 47 industrial user shall be based on the proportion which the volume and

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1 strength of such user's wastes treated by the project bears to the 2 volume and strength of all wastes treated by the project and shall 3 include charges which shall be adequate to encourage reduction in 4 the quantity and character of such wastes. Revenues derived from such cost recovery, to the extent apportionable to the Federal share 6 of eligible project costs allocable to the treatment of industrial wastes, shall revert to the Treasury of the United States.

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"ALLOCATION"

"SEC. 205. (a) The first $100,000,000 authorized to be obligated pursuant to section 207 for each fiscal year shall be allotted on the first day 11 of such fiscal year by the Administrator in accordance with regu12 lations promulgated by him, as follows: (A) 50 per centum of such 13 sums in the ratio that the population of each State bears to the 14 population of all States, and (B) 50 per centum of such sums in the ratio that the quotient obtained by dividing the per capita income of the United States by the per capita income of each State bears to the sum of such quotients for all the States. Sums allotted to a 18 State under this paragraph, which are not obligated within six months from the date they were allotted because of a lack of treatment 20 works which have been approved by the State water pollution control 21 agency and certified as entitled to priority, shall be reallotted by the 22 Administrator on a basis of need, as he determines to be reasonable 23 and equitable and in accordance with regulations promulgated by 24 him, to States having treatment works approved under this section 25 for which grants have not been made because of lack of funds.

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"(b) All sums in excess of $100,000,000 authorized to be obligated 27 pursuant to section 207 for each fiscal year shall be allotted by the 28 Administrator, in accordance with regulations promulated by him, in 29 the ratio that the population of each State bears to the population of 30 all the States.

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"(c)(1) Sums allotted to a State under subsection (b) which are not 32 obligated (A) for fiscal year 1972, within 12 months following date of enactment, and (B) for fiscal years 1973 and following, within 34 six months following the date of such allotment, because of a lack of treatment works approved by the State water pollution control agency 36 and certified as entitled to priority, shall be reallotted by the Admin37 istrator, in accordance with regulations promulgated by him, with 38 priority in such reallotment to be given to States which pay, by grant, not less than 15 per centum of the costs of such works. Such reallotted sums shall remain available following the end of the fiscal year for which they were authorized for obligation.

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"(2) Any sum made available to a State by reallotment under this 43 subsection shall be in addition to any funds otherwise allotted to such 44 State for grants under this title during any fiscal year.

45 "(d) For the purpose of this section, (1) population shall be deter46 mined on the basis of the latest available figures, as certified by the 47 Secretary of Commerce, and (2) per capita income for each State and

1 for the United States shall be determined on the basis of the average 2 of the per capita incomes of the States and of the continental United 3 States for the three most recent consecutive years for which satisfac4 tory data are available from the Department of Commerce."

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"REIMBURSEMENT

"SEC. 206(a). Any treatment works on which construction was initi7 ated in a State after June 30, 1966, and which was approved by the 8 State water pollution control agency and which the Administrator 9 finds meets the requirements of section 8 of the Federal Water Pollu10 tion Control Act prior to the date of enactment of the National 11 Water Quality Standards Act of 1971, but which was constructed with12 out assistance under such section or which received such assistance in 13 an amount less than 50 per centum of the cost of the project or projects, 14 shall be eligible for payments in reimbursement of State or local 15 funds used for such works prior to July 1, 1971. Such funds shall be 16 allocated only for projects which have been approved for construction 17 under this Act or to retire indebtedness incurred to finance the local 18 share of projects previously approved under this Act. The total 19 amount of reimbursement to be received by a State, municipality or 20 intermunicipal or interstate agency under this section shall not exceed 21 the difference between the amount of such assistance, if any, received 22 for such prior project or projects and 50 per centum of the cost of such 23 project or projects.

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"(b) There is authorized to be appropriated $- to carry out the 25 provisions of this section.

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"AUTHORIZATION

"SEC. 207. To finance the programs and activities under this title, 28 the Administrator is authorized to incur obligations in the form of 29 grant contracts in amounts aggregating (a) in fiscal year 1972 not to 30 exceed $3,000,000,000; (b) in fiscal year 1973 not to exceed, $3,000,000,31 000; (c) in fiscal year 1974 not to exceed $3,000,000,000; (d) in 32 fiscal year 1975 not to exceed $3,000,000,000; and (e) in fiscal year 33 1976 not to exceed $3,000,000,000. These amounts shall become 34 available for obligation upon the first day of each such fiscal year and 35 shall remain available until obligated. There are authorized to be 36 appropriated for liquidation of obligations incurred under this sub37 section not to exceed $3,000,000,000 prior to July 1, 1972, which 38

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amount may be increased to not to exceed an aggregate of $6,000,000,000 prior to July 1, 1973, not to exceed an aggregate of $9,000,000,000 40 prior to July 1, 1974, not to exceed an aggregate of $12,000,000,000 prior to July 1, 1975, and not to exceed an aggregate of $15,000,000,42 000 prior to July 1, 1976. Sums so appropriated shall remain available until expended.

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"DISBURSEMENT

"SEC. 208. The Administrator shall make payments under this title through the disbursing facilities of the Department of the Treasury. Funds so paid shall be used exclusively to meet the cost of construction of the treatment works for which the amount was paid.

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"REGIONAL WASTE TREATMENT MANAGEMENT

"SEC. 209. (a) For purposes of developing and carrying out the waste treatment works requirements identified pursuant to implementation 4 plans under section 303

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"(1) The Administrator shall (A) within 180 days after the date of enactment of the National Water Quality Standards Act of 1971, and after consultations with appropriate Federal, State, and local authorities, identify and describe any area of a river basin based on jurisdictional boundaries, urban-industrial concentrations and other factors which he deems necessary and appropriate for the regional management of waste treatment. The Administrator shall immediately notify the governors of the affected states of any identification made under this subsection. "(2) For the purpose of carrying out regional waste treatment management, the Governor of each state, in consultation with local government officials shall, at least sixty days prior to submission by him to the Administrator of any implementation under 303 of this Act, designate one or more waste treatment management regions in such state and submit such designation to the Administrator for approval. Such designation shall include the identification of the operating agency or agencies for such region or regions.

“(b) (1) The Administrator shall approve any such designation within sixty days after approval by him of any implementation plan 25 applicable to such region or regions if he finds that

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"(A) It is one of the geographic areas identified by him under subsection (a) of this section, or an area of sufficient size and continuity to insure effective waste treatment management in accordance with such approved plan;

"(B) The identified operating agency (or agencies) is authorized

"(i) and empowered to manage effectively all waste treatment works and related facilities serving such area; "(ii) directly or by contract, to plan, construct, opera te, and maintain existing works;

"(iii) to accept and utilize grants, or other funds from any source, for waste treatment management purposes;

"(iv) to raise revenues, including the assessment of waste treatment charges;

"(v) to incur short and long term indebtedness; and "(vi) to refuse to receive any wastes from any municipality, or subdivision thereof, which does not comply with any applicable comprehensive plan for such area under section 304. "(2) The Administrator shall approve any revision of any desig45 nated region, at any time, in the same manner as required for the 46 initial designation.

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"(c) (1) If any State fails to submit a designation of any region 48 identified by the Administrator under subsection (a) of this section, 49 within the time prescribed, or if any designated region submitted for

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