§ 1281. — Congressional declaration of purpose.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 33USC1281]
TITLE 33--NAVIGATION AND NAVIGABLE WATERS
CHAPTER 26--WATER POLLUTION PREVENTION AND CONTROL
SUBCHAPTER II--GRANTS FOR CONSTRUCTION OF TREATMENT WORKS
Sec. 1281. Congressional declaration of purpose
(a) Development and implementation of waste treatment management plans
and practices
It is the purpose of this subchapter to require and to assist the
development and implementation of waste treatment management plans and
practices which will achieve the goals of this chapter.
(b) Application of technology: confined disposal of pollutants;
consideration of advanced techniques
Waste treatment management plans and practices shall provide for the
application of the best practicable waste treatment technology before
any discharge into receiving waters, including reclaiming and recycling
of water, and confined disposal of pollutants so they will not migrate
to cause water or other environmental pollution and shall provide for
consideration of advanced waste treatment techniques.
(c) Waste treatment management area and scope
To the extent practicable, waste treatment management shall be on an
areawide basis and provide control or treatment of all point and
nonpoint sources of pollution, including in place or accumulated
pollution sources.
(d) Waste treatment management construction of revenue producing
facilities
The Administrator shall encourage waste treatment management which
results in the construction of revenue producing facilities providing
for--
(1) the recycling of potential sewage pollutants through the
production of agriculture, silviculture, or aquaculture products, or
any combination thereof;
(2) the confined and contained disposal of pollutants not
recycled;
(3) the reclamation of wastewater; and
(4) the ultimate disposal of sludge in a manner that will not
result in environmental hazards.
(e) Waste treatment management integration of facilities
The Administrator shall encourage waste treatment management which
results in integrating facilities for sewage treatment and recycling
with facilities to treat, dispose of, or utilize other industrial and
municipal wastes, including but not limited to solid waste and waste
heat and thermal discharges. Such integrated facilities shall be
designed and operated to produce revenues in excess of capital and
operation and maintenance costs and such revenues shall be used by the
designated regional management agency to aid in financing other
environmental improvement programs.
(f) Waste treatment management ``open space'' and recreational
considerations
The Administrator shall encourage waste treatment management which
combines ``open space'' and recreational considerations with such
management.
(g) Grants to construct publicly owned treatment works
(1) The Administrator is authorized to make grants to any State,
municipality, or intermunicipal or interstate agency for the
construction of publicly owned treatment works. On and after October 1,
1984, grants under this subchapter shall be made only for projects for
secondary treatment or more stringent treatment, or any cost effective
alternative thereto, new interceptors and appurtenances, and
infiltration-in-flow correction. Notwithstanding the preceding
sentences, the Administrator may make grants on and after October 1,
1984, for (A) any project within the definition set forth in section
1292(2) of this title, other than for a project referred to in the
preceding sentence, and (B) any purpose for which a grant may be made
under sections \1\ 1329(h) and (i) of this title (including any
innovative and alternative approaches for the control of nonpoint
sources of pollution), except that not more than 20 per centum (as
determined by the Governor of the State) of the amount allotted to a
State under section 1285 of this title for any fiscal year shall be
obligated in such State under authority of this sentence.
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\1\ So in original. Probably should be ``section''.
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(2) The Administrator shall not make grants from funds authorized
for any fiscal year beginning after June 30, 1974, to any State,
municipality, or intermunicipal or interstate agency for the erection,
building, acquisition, alteration, remodeling, improvement, or extension
of treatment works unless the grant applicant has satisfactorily
demonstrated to the Administrator that--
(A) alternative waste management techniques have been studied
and evaluated and the works proposed for grant assistance will
provide for the application of the best practicable waste treatment
technology over the life of the works consistent with the purposes
of this subchapter; and
(B) as appropriate, the works proposed for grant assistance will
take into account and allow to the extent practicable the
application of technology at a later date which will provide for the
reclaiming or recycling of water or otherwise eliminate the
discharge of pollutants.
(3) The Administrator shall not approve any grant after July 1,
1973, for treatment works under this section unless the applicant shows
to the satisfaction of the Administrator that each sewer collection
system discharging into such treatment works is not subject to excessive
infiltration.
(4) The Administrator is authorized to make grants to applicants for
treatment works grants under this section for such sewer system
evaluation studies as may be necessary to carry out the requirements of
paragraph (3) of this subsection. Such grants shall be made in
accordance with rules and regulations promulgated by the Administrator.
Initial rules and regulations shall be promulgated under this paragraph
not later than 120 days after October 18, 1972.
(5) The Administrator shall not make grants from funds authorized
for any fiscal year beginning after September 30, 1978, to any State,
municipality, or intermunicipal or interstate agency for the erection,
building, acquisition, alteration, remodeling, improvement, or extension
of treatment works unless the grant applicant has satisfactorily
demonstrated to the Administrator that innovative and alternative
wastewater treatment processes and techniques which provide for the
reclaiming and reuse of water, otherwise eliminate the discharge of
pollutants, and utilize recycling techniques, land treatment, new or
improved methods of waste treatment management for municipal and
industrial waste (discharged into municipal systems) and the confined
disposal of pollutants, so that pollutants will not migrate to cause
water or other environmental pollution, have been fully studied and
evaluated by the applicant taking into account subsection (d) of this
section and taking into account and allowing to the extent practicable
the more efficient use of energy and resources.
(6) The Administrator shall not make grants from funds authorized
for any fiscal year beginning after September 30, 1978, to any State,
municipality, or intermunicipal or interstate agency for the erection,
building, acquisition, alteration, remodeling, improvement, or extension
of treatment works unless the grant applicant has satisfactorily
demonstrated to the Administrator that the applicant has analyzed the
potential recreation and open space opportunities in the planning of the
proposed treatment works.
(h) Grants to construct privately owned treatment works
A grant may be made under this section to construct a privately
owned treatment works serving one or more principal residences or small
commercial establishments constructed prior to, and inhabited on,
December 27, 1977, where the Administrator finds that--
(1) a public body otherwise eligible for a grant under
subsection (g) of this section has applied on behalf of a number of
such units and certified that public ownership of such works is not
feasible;
(2) such public body has entered into an agreement with the
Administrator which guarantees that such treatment works will be
properly operated and maintained and will comply with all other
requirements of section 1284 of this title and includes a system of
charges to assure that each recipient of waste treatment services
under such a grant will pay its proportionate share of the cost of
operation and maintenance (including replacement); and
(3) the total cost and environmental impact of providing waste
treatment services to such residences or commercial establishments
will be less than the cost of providing a system of collection and
central treatment of such wastes.
(i) Waste treatment management methods, processes, and techniques to
reduce energy requirements
The Administrator shall encourage waste treatment management
methods, processes, and techniques which will reduce total energy
requirements.
(j) Grants for treatment works utilizing processes and techniques of
guidelines under section 1314(d)(3) of this title
The Administrator is authorized to make a grant for any treatment
works utilizing processes and techniques meeting the guidelines
promulgated under section 1314(d)(3) of this title, if the Administrator
determines it is in the public interest and if in the cost effectiveness
study made of the construction grant application for the purpose of
evaluating alternative treatment works, the life cycle cost of the
treatment works for which the grant is to be made does not exceed the
life cycle cost of the most cost effective alternative by more than 15
per centum.
(k) Limitation on use of grants for publicly owned treatment works
No grant made after November 15, 1981, for a publicly owned
treatment works, other than for facility planning and the preparation of
construction plans and specifications, shall be used to treat, store, or
convey the flow of any industrial user into such treatment works in
excess of a flow per day equivalent to fifty thousand gallons per day of
sanitary waste. This subsection shall not apply to any project proposed
by a grantee which is carrying out an approved project to prepare
construction plans and specifications for a facility to treat
wastewater, which received its grant approval before May 15, 1980. This
subsection shall not be in effect after November 15, 1981.
(l) Grants for facility plans, or plans, specifications, and estimates
for proposed project for construction of treatment works;
limitations, allotments, advances, etc.
(1) After December 29, 1981, Federal grants shall not be made for
the purpose of providing assistance solely for facility plans, or plans,
specifications, and estimates for any proposed project for the
construction of treatment works. In the event that the proposed project
receives a grant under this section for construction, the Administrator
shall make an allowance in such grant for non-Federal funds expended
during the facility planning and advanced engineering and design phase
at the prevailing Federal share under section 1282(a) of this title,
based on the percentage of total project costs which the Administrator
determines is the general experience for such projects.
(2)(A) Each State shall use a portion of the funds allotted to such
State each fiscal year, but not to exceed 10 per centum of such funds,
to advance to potential grant applicants under this subchapter the costs
of facility planning or the preparation of plans, specifications, and
estimates.
(B) Such an advance shall be limited to the allowance for such costs
which the Administrator establishes under paragraph (1) of this
subsection, and shall be provided only to a potential grant applicant
which is a small community and which in the judgment of the State would
otherwise be unable to prepare a request for a grant for construction
costs under this section.
(C) In the event a grant for construction costs is made under this
section for a project for which an advance has been made under this
paragraph, the Administrator shall reduce the amount of such grant by
the allowance established under paragraph (1) of this subsection. In the
event no such grant is made, the State is authorized to seek repayment
of such advance on such terms and conditions as it may determine.
(m) Grants for State of California projects
(1) Notwithstanding any other provisions of this subchapter, the
Administrator is authorized to make a grant from any funds otherwise
allotted to the State of California under section 1285 of this title to
the project (and in the amount) specified in Order WQG 81-1 of the
California State Water Resources Control Board.
(2) Notwithstanding any other provision of this chapter, the
Administrator shall make a grant from any funds otherwise allotted to
the State of California to the city of Eureka, California, in connection
with project numbered C-06-2772, for the purchase of one hundred and
thirty-nine acres of property as environmental mitigation for siting of
the proposed treatment plant.
(3) Notwithstanding any other provision of this chapter, the
Administrator shall make a grant from any funds otherwise allotted to
the State of California to the city of San Diego, California, in
connection with that city's aquaculture sewage process (total resources
recovery system) as an innovative and alternative waste treatment
process.
(n) Water quality problems; funds, scope, etc.
(1) On and after October 1, 1984, upon the request of the Governor
of an affected State, the Administrator is authorized to use funds
available to such State under section 1285 of this title to address
water quality problems due to the impacts of discharges from combined
storm water and sanitary sewer overflows, which are not otherwise
eligible under this subsection, where correction of such discharges is a
major priority for such State.
(2) Beginning fiscal year 1983, the Administrator shall have
available $200,000,000 per fiscal year in addition to those funds
authorized in section 1287 of this title to be utilized to address water
quality problems of marine bays and estuaries subject to lower levels of
water quality due to the impacts of discharges from combined storm water
and sanitary sewer overflows from adjacent urban complexes, not
otherwise eligible under this subsection. Such sums may be used as
deemed appropriate by the Administrator as provided in paragraphs (1)
and (2) of this subsection, upon the request of and demonstration of
water quality benefits by the Governor of an affected State.
(o) Capital financing plan
The Administrator shall encourage and assist applicants for grant
assistance under this subchapter to develop and file with the
Administrator a capital financing plan which, at a minimum--
(1) projects the future requirements for waste treatment
services within the applicant's jurisdiction for a period of no less
than ten years;
(2) projects the nature, extent, timing, and costs of future
expansion and reconstruction of treatment works which will be
necessary to satisfy the applicant's projected future requirements
for waste treatment services; and
(3) sets forth with specificity the manner in which the
applicant intends to finance such future expansion and
reconstruction.
(p) Time limit on resolving certain disputes
In any case in which a dispute arises with respect to the awarding
of a contract for construction of treatment works by a grantee of funds
under this subchapter and a party to such dispute files an appeal with
the Administrator under this subchapter for resolution of such dispute,
the Administrator shall make a final decision on such appeal within 90
days of the filing of such appeal.
(June 30, 1948, ch. 758, title II, Sec. 201, as added Pub. L. 92-500,
Sec. 2, Oct. 18, 1972, 86 Stat. 833; amended Pub. L. 95-217, Secs. 12-
16, Dec. 27, 1977, 91 Stat. 1569, 1570; Pub. L. 96-483, Secs. 2(d), 3,
Oct. 21, 1980, 94 Stat. 2361; Pub. L. 97-117, Secs. 2(a), 3(a), 4-6,
10(c), Dec. 29, 1981, 95 Stat. 1623-1626; Pub. L. 100-4, title II,
Sec. 201, title III, Sec. 316(c), Feb. 4, 1987, 101 Stat. 15, 60.)
Amendments
1987--Subsec. (g)(1). Pub. L. 100-4, Sec. 316(c), substituted
``sentences, the Administrator'' for ``sentence, the Administrator'' and
inserted ``(A)'' after ``October 1, 1984, for'' and ``and (B) any
purpose for which a grant may be made under sections 1329(h) and (i) of
this title (including any innovative and alternative approaches for the
control of nonpoint sources of pollution),'' before ``except that''.
Subsec. (p). Pub. L. 100-4, Sec. 201, added subsec. (p).
1981--Subsec. (g)(1). Pub. L. 97-117, Sec. 2(a), inserted provisions
restricting, on or after Oct. 1, 1984, the categories of projects
eligible for grants under this subchapter and providing an exception to
the restriction for projects, other than specified projects, within the
definition set forth in section 1292(2) of this title, but limiting such
exception to not more than 20 per centum, as determined by the Governor
of the State, of the amount allotted to a State under section 1285 of
this title for any fiscal year.
Subsec. (k). Pub. L. 97-117, Sec. 10(c), inserted provision that
subsection not be in effect after Nov. 15, 1981.
Subsec. (l). Pub. L. 97-117, Sec. 3(a), added subsec. (l).
Subsec. (m). Pub. L. 97-117, Sec. 4, added subsec. (m).
Subsec. (n). Pub. L. 97-117, Sec. 5, added subsec. (n).
Subsec. (o). Pub. L. 97-117, Sec. 6, added subsec. (o).
1980--Subsec. (h). Pub. L. 96-483, Sec. 2(d), struck out text
following par. (3), relating to payment to the United States by
commercial users of that portion of the cost of construction applicable
to treatment of commercial wastes to the extent attributable to the
Federal share of the cost of construction.
Subsec. (k). Pub. L. 96-483, Sec. 3, added subsec. (k).
1977--Subsec. (g)(5). Pub. L. 95-217, Sec. 12, added par. (5).
Subsec. (g)(6). Pub. L. 95-217, Sec. 13, added par. (6).
Subsec. (h). Pub. L. 95-217, Sec. 14, added subsec. (h).
Subsec. (i). Pub. L. 95-217, Sec. 15, added subsec. (i).
Subsec. (j). Pub. L. 95-217, Sec. 16, added subsec. (j).
Effective Date of 1980 Amendment
Section 2(g) of Pub. L. 96-483 provided that: ``The amendments made
by this section [amending sections 1281, 1284, and 1293 of this title,
enacting provisions set out as notes under section 1284 of this title,
and amending provisions set out as a note under section 1284 of this
title] shall take effect on December 27, 1977.''
Environmental Protection Agency State and Tribal Assistance Grants
Pub. L. 105-174, title III, May 1, 1998, 112 Stat. 92, provided
that: ``Notwithstanding any other provision of law, eligible recipients
of the funds appropriated to the Environmental Protection Agency in the
State and Tribal Assistance Grants account since fiscal year 1997 and
hereafter for multi-media or single media grants, other than Performance
Partnership Grants authorized pursuant to Public Law 104-134 and Public
Law 105-65 [see Grants to Indian Tribes for Pollution Prevention,
Control, and Abatement notes set out below], for pollution prevention,
control, and abatement and related activities have been and shall be
those entities eligible for grants under the Agency's organic
statutes.''
Privatization of Infrastructure Assets
Pub. L. 104-303, title V, Sec. 586, Oct. 12, 1996, 110 Stat. 3791,
provided that:
``(a) In General.--Notwithstanding the provisions of title II of the
Federal Water Pollution Control Act (33 U.S.C. 1281 et seq.), Executive
Order 12803 [5 U.S.C. 601 note], or any other law or authority, an
entity that received Federal grant assistance for an infrastructure
asset under the Federal Water Pollution Control Act [33 U.S.C. 1251 et
seq.] shall not be required to repay any portion of the grant upon the
lease or concession of the asset only if--
``(1) ownership of the asset remains with the entity that
received the grant; and
``(2) the Administrator of the Environmental Protection Agency
determines that the lease or concession furthers the purposes of
such Act and approves the lease or concession.
``(b) Limitation.--The Administrator shall not approve a total of
more than 5 leases and concessions under this section.''
Grants to States To Administer Completion and Closeout of Construction
Grants Program
Pub. L. 104-204, title III, Sept. 26, 1996, 110 Stat. 2912, provided
in part: ``That notwithstanding any other provision of law, beginning in
fiscal year 1997 the Administrator may make grants to States, from funds
available for obligation in the State under title II of the Federal
Water Pollution Control Act [33 U.S.C. 1281 et seq.], as amended, for
administering the completion and closeout of the State's construction
grants program, based on a budget annually negotiated with the State''.
Wastewater Assistance to Colonias
Pub. L. 104-182, title III, Sec. 307, Aug. 6, 1996, 110 Stat. 1688,
provided that:
``(a) Definitions.--As used in this section:
``(1) Border state.--The term `border State' means Arizona,
California, New Mexico, and Texas.
``(2) Eligible community.--The term `eligible community' means a
low-income community with economic hardship that--
``(A) is commonly referred to as a colonia;
``(B) is located along the United States-Mexico border
(generally in an unincorporated area); and
``(C) lacks basic sanitation facilities such as household
plumbing or a proper sewage disposal system.
``(3) Treatment works.--The term `treatment works' has the
meaning provided in section 212(2) of the Federal Water Pollution
Control Act (33 U.S.C. 1292(2)).
``(b) Grants for Wastewater Assistance.--The Administrator of the
Environmental Protection Agency and the heads of other appropriate
Federal agencies are authorized to award grants to a border State to
provide assistance to eligible communities for the planning, design, and
construction or improvement of sewers, treatment works, and appropriate
connections for wastewater treatment.
``(c) Use of Funds.--Each grant awarded pursuant to subsection (b)
shall be used to provide assistance to one or more eligible communities
with respect to which the residents are subject to a significant health
risk (as determined by the Administrator or the head of the Federal
agency making the grant) attributable to the lack of access to an
adequate and affordable treatment works for wastewater.
``(d) Cost Sharing.--The amount of a grant awarded pursuant to this
section shall not exceed 50 percent of the costs of carrying out the
project that is the subject of the grant.
``(e) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $25,000,000 for each of the
fiscal years 1997 through 1999.''
Grants to Indian Tribes for Pollution Prevention, Control and Abatement
Pub. L. 105-65, title III, Oct. 27, 1997, 111 Stat. 1373, provided
in part that: ``$745,000,000 for grants to States, federally recognized
tribes, and air pollution control agencies for multi-media or single
media pollution prevention, control and abatement and related activities
pursuant to the provisions set forth under this heading in Public Law
104-134 [see below], provided that eligible recipients of these funds
and the funds made available for this purpose since fiscal year 1996 and
hereafter include States, federally recognized tribes, interstate
agencies, tribal consortia, and air pollution control agencies, as
provided in authorizing statutes, subject to such terms and conditions
as the Administrator shall establish, and for making grants under
section 103 of the Clean Air Act [42 U.S.C. 7403] for particulate matter
monitoring and data collection activities''.
Pub. L. 105-65, title III, Oct. 27, 1997, 111 Stat. 1374, provided
in part: ``That, hereafter from funds appropriated under this heading
[``Environmental Protection Agency'' and ``state and tribal assistance
grants''], the Administrator is authorized to make grants to federally
recognized Indian governments for the development of multi-media
environmental programs: Provided further, That, hereafter, the funds
available under this heading for grants to States, federally recognized
tribes, and air pollution control agencies for multi-media or single
media pollution prevention, control and abatement and related activities
may also be used for the direct implementation by the Federal Government
of a program required by law in the absence of an acceptable State or
tribal program''.
Similar provisions were contained in the following prior
appropriation acts:
Pub. L. 104-204, title III, Sept. 26, 1996, 110 Stat. 2912.
Pub. L. 104-134, title I, Sec. 101(e) [title III], Apr. 26, 1996,
110 Stat. 1321-257, 1321-299, renumbered title I, Pub. L. 104-140,
Sec. 1(a), May 2, 1996, 110 Stat. 1327.
Pub. L. 103-327, title III, Sept. 28, 1994, 108 Stat. 2320.
Pub. L. 103-124, title III, Oct. 28, 1993, 107 Stat. 1293.
Pub. L. 102-389, title III, Oct. 6, 1992, 106 Stat. 1597.
Pub. L. 102-139, title III, Oct. 28, 1991, 105 Stat. 762.
Pub. L. 101-507, title III, Nov. 5, 1990, 104 Stat. 1372.
Pub. L. 104-134, title I, Sec. 101(e) [title III], Apr. 26, 1996,
110 Stat. 1321-257, 1321-299; renumbered title I, Pub. L. 104-140,
Sec. 1(a), May 2, 1996, 110 Stat. 1327, provided in part: ``That
beginning in fiscal year 1996 and each fiscal year thereafter, and
notwithstanding any other provision of law, the Administrator is
authorized to make grants annually from funds appropriated under this
heading [``Environmental Protection Agency'' and ``state and tribal
assistance grants''], subject to such terms and conditions as the
Administrator shall establish, to any State or federally recognized
Indian tribe for multimedia or single media pollution prevention,
control and abatement and related environmental activities at the
request of the Governor or other appropriate State official or the
tribe''.
State Management of Construction Grant Activities
Pub. L. 104-134, title I, Sec. 101(e) [title III], Apr. 26, 1996,
110 Stat. 1321-257, 1321-299; renumbered title I, Pub. L. 104-140,
Sec. 1(a), May 2, 1996, 110 Stat. 1327, provided in part: ``That of the
funds appropriated in the Construction Grants and Water Infrastructure/
State Revolving Funds accounts since the appropriation for the fiscal
year ending September 30, 1992, and hereafter, for making grants for
wastewater treatment works construction projects, portions may be
provided by the recipients to States for managing construction grant
activities, on condition that the States agree to reimburse the
recipients from State funding sources''.
Grants to Trust Territory of the Pacific Islands, American Samoa, Guam,
Northern Mariana Islands, and Virgin Islands; Waiver of Collector Sewers
Limitation
Pub. L. 99-396, Sec. 12(b), Aug. 27, 1986, 100 Stat. 841, provided
that: ``In awarding grants to the Trust Territory of the Pacific
Islands, American Samoa, Guam, the Northern Mariana Islands and the
Virgin Islands under section 201(g)(1) of the Clean Water Act (33 U.S.C.
1251 et seq.) [subsec. (g)(1) of this section], the Administrator of the
Environmental Protection Agency may waive limitations regarding grant
eligibility for sewerage facilities and related appurtenances, insofar
as such limitations relate to collector sewers, based upon a
determination that applying such limitations could hinder the
alleviation of threats to public health and water quality. In making
such a determination, the Administrator shall take into consideration
the public health and water quality benefits to be derived and the
availability of alternate funding sources. The Administrator shall not
award grants under this section for the operation and maintenance of
sewerage facilities, for construction of facilities which are not an
essential component of the sewerage facilities, or any other activities
or facilities which are not concerned with the management of wastewater
to alleviate threats to public health and water quality.'' [For
termination of Trust Territory of the Pacific Islands, see note set out
preceding section 1681 of Title 48, Territories and Insular
Possessions.]
Environmental Financing Authority
Section 12 of Pub. L. 92-500, as amended by Pub. L. 97-258,
Sec. 4(b), Sept. 13, 1982, 96 Stat. 1067, provided that:
``(a) [Short Title] This section may be cited as the Environmental
Financing Act of 1972.
``(b) [Establishment] There is hereby created a body corporate to be
known as the Environmental Financing Authority, which shall have
succession until dissolved by Act of Congress. The Authority shall be
subject to the general supervision and direction of the Secretary of the
Treasury. The Authority shall be an instrumentality of the United States
Government and shall maintain such offices as may be necessary or
appropriate in the conduct of its business.
``(c) [Congressional Declaration of Purpose] The purpose of this
section is to assure that inability to borrow necessary funds on
reasonable terms does not prevent any State or local public body from
carrying out any project for construction of waste treatment works
determined eligible for assistance pursuant to subsection (e) of this
section.
``(d) [Board of Directors] (1) The Authority shall have a Board of
Directors consisting of five persons, one of whom shall be the Secretary
of the Treasury or his designee as Chairman of the Board, and four of
whom shall be appointed by the President from among the officers or
employees of the Authority or of any department or agency of the United
States Government.
``(2) The Board of Directors shall meet at the call of its Chairman.
The Board shall determine the general policies which shall govern the
operations of the Authority. The Chairman of the Board shall select and
effect the appointment of qualified persons to fill the offices as may
be provided for in the bylaws, with such executive functions, powers,
and duties as may be prescribed by the bylaws or by the Board of
Directors, and such persons shall be the executive officers of the
Authority and shall discharge all such executive functions, powers, and
duties. The members of the Board, as such, shall not receive
compensation for their services.
``(e) [Purchase of State and Local Obligations] (1) Until July 1,
1975, the Authority is authorized to make commitments to purchase, and
to purchase on terms and conditions determined by the Authority, any
obligation or participation therein which is issued by a State or local
public body to finance the non-Federal share of the cost of any project
for the construction of waste treatment works which the Administrator of
the Environmental Protection Agency has determined to be eligible for
Federal financial assistance under the Federal Water Pollution Control
Act [this chapter].
``(2) No commitment shall be entered into, and no purchase shall be
made, unless the Administrator of the Environmental Protection Agency
(A) has certified that the public body is unable to obtain on reasonable
terms sufficient credit to finance its actual needs; (B) has approved
the project as eligible under the Federal Water Pollution Control Act
[this chapter], and (C) has agreed to guarantee timely payment of
principal and interest on the obligation. The Administrator is
authorized to guarantee such timely payments and to issue regulations as
he deems necessary and proper to protect such guarantees. Appropriations
are hereby authorized to be made to the Administrator in such sums as
are necessary to make payments under such guarantees, and such payments
are authorized to be made from such appropriations.
``(3) No purchase shall be made of obligations issued to finance
projects, the permanent financing of which occurred prior to the
enactment of this section [Oct. 18, 1972].
``(4) Any purchase by the Authority shall be upon such terms and
conditions as to yield a return at a rate determined by the Secretary of
the Treasury taking into consideration (A) the current average yield on
outstanding marketable obligations of the United States of comparable
maturity or in its stead whenever the Authority has sufficient of its
own long-term obligations outstanding, the current average yield on
outstanding obligations of the Authority of comparable maturity; and (B)
the market yields on municipal bonds.
``(5) The Authority is authorized to charge fees for its commitments
and other services adequate to cover all expenses and to provide for the
accumulation of reasonable contingency reserves and such fees shall be
included in the aggregate project costs.
``(f) [Initial Capital] To provide initial capital to the Authority
the Secretary of the Treasury is authorized to advance the funds
necessary for this purpose. Each such advance shall be upon such terms
and conditions as to yield a return at a rate not less than a rate
determined by the Secretary of the Treasury taking into consideration
the current average yield on outstanding marketable obligations of the
United States of comparable maturities. Interest payments on such
advances may be deferred, at the discretion of the Secretary, but any
such deferred payments shall themselves bear interest at the rate
specified in this section. There is authorized to be appropriated not to
exceed $100,000,000, which shall be available for the purposes of this
subsection.
``(g) [Issuance of Obligations] (1) The Authority is authorized,
with the approval of the Secretary of the Treasury, to issue and have
outstanding obligations having such maturities and bearing such rate or
rates of interest as may be determined by the Authority. Such
obligations may be redeemable at the option of the Authority before
maturity in such manner as may be stipulated therein.
``(2) As authorized in appropriation Acts, and such authorizations
may be without fiscal year limitations, the Secretary of the Treasury
may in his discretion purchase or agree to purchase any obligations
issued pursuant to paragraph (1) of this subsection, and for such
purpose the Secretary of the Treasury is authorized to use as a public
debt transaction the proceeds of the sale of any securities hereafter
issued under chapter 31 of title 31, as now or hereafter in force, and
the purposes for which securities may be issued under chapter 31 of
title 31, as now or hereafter in force, are extended to include such
purchases. Each purchase of obligations by the Secretary of the Treasury
under this subsection shall be upon such terms and conditions as to
yield a return at a rate not less than a rate determined by the
Secretary of the Treasury, taking into consideration the current average
yield on outstanding marketable obligations of the United States of
comparable maturities. The Secretary of the Treasury may sell, upon such
terms and conditions and at such price or prices as he shall determine,
any of the obligations acquired by him under this paragraph. All
purchases and sales by the Secretary of the Treasury of such obligations
under this paragraph shall be treated as public debt transactions of the
United States. (As amended Pub. L. 97-258, Sec. 4(b), Sept. 13, 1982, 96
Stat. 1067.)
``(h) [Interest Differential] The Secretary of the Treasury is
authorized and directed to make annual payments to the Authority in such
amounts as are necessary to equal the amount by which the dollar amount
of interest expense accrued by the Authority on account of its
obligations exceeds the dollar amount of interest income accrued by the
Authority on account of obligations purchased by it pursuant to
subsection (e) of this section.
``(i) [Powers] The Authority shall have power--
``(1) to sue and be sued, complain and defend, in its corporate
name;
``(2) to adopt, alter, and use a corporate seal, which shall be
judicially noticed;
``(3) to adopt, amend, and repeal bylaws, rules, and regulations
as may be necessary for the conduct of its business;
``(4) to conduct its business, carry on its operations, and have
offices and exercise the powers granted by this section in any State
without regard to any qualification or similar statute in any State;
``(5) to lease, purchase, or otherwise acquire, own, hold,
improve, use, or otherwise deal in and with any property, real,
personal, or mixed, or any interest therein, wherever situated;
``(6) to accept gifts or donations of services, or of property,
real, personal, or mixed, tangible or intangible, in aid of any of
the purposes of the Authority;
``(7) to sell, convey, mortgage, pledge, lease, exchange, and
otherwise dispose of its property and assets;
``(8) to appoint such officers, attorneys, employees, and agents
as may be required, to define their duties, to fix and to pay such
compensation for their services as may be determined, subject to the
civil service and classification laws, to require bonds for them and
pay the premium thereof; and
``(9) to enter into contracts, to execute instruments, to incur
liabilities, and to do all things as are necessary or incidental to
the proper management of its affairs and the proper conduct of its
business.
``(j) [Tax Exemption, Exemptions] The Authority, its property, its
franchise, capital, reserves, surplus, security holdings, and other
funds, and its income shall be exempt from all taxation now or hereafter
imposed by the United States or by any State or local taxing authority;
except that (A) any real property and any tangible personal property of
the Authority shall be subject to Federal, State, and local taxation to
the same extent according to its value as other such property is taxed,
and (B) any and all obligations issued by the Authority shall be subject
both as to principal and interest to Federal, State, and local taxation
to the same extent as the obligations of private corporations are taxed.
``(k) [Nature of Obligations] All obligations issued by the
Authority shall be lawful investments, and may be accepted as security
for all fiduciary, trust, and public funds, the investment or deposit of
which shall be under authority or control of the United States or of any
officer or officers thereof. All obligations issued by the Authority
pursuant to this section shall be deemed to be exempt securities within
the meaning of laws administered by the Securities and Exchange
Commission, to the same extent as securities which are issued by the
United States.
``(l) [Preparation of Obligations by Secretary of the Treasury] In
order to furnish obligations for delivery by the Authority, the
Secretary of the Treasury is authorized to prepare such obligations in
such form as the Authority may approve, such obligations when prepared
to be held in the Treasury subject to delivery upon order by the
Authority. The engraved plates, dies, bed pieces, and so forth, executed
in connection therewith, shall remain in the custody of the Secretary of
the Treasury. The Authority shall reimburse the Secretary of the
Treasury for any expenditures made in the preparation, custody, and
delivery of such obligations.
``(m) [Annual Report to Congress] The Authority shall, as soon as
practicable after the end of each fiscal year, transmit to the President
and the Congress an annual report of its operations and activities.
``(n) [Subsec. (n) amended section 24 of Title 12, Banks and
Banking, and is not set out herein.]
``(o) [Financial Controls] The budget and audit provisions of
chapter 91 of title 31 shall be applicable to the Environmental
Financing Authority in the same manner as they are applied to the wholly
owned Government corporations. (As amended Pub. L. 97-258, Sec. 4(b),
Sept. 13, 1982, 96 Stat. 1067.)
``(p) [Subsec. (p) amended section 711 of former Title 31, Money and
Finance, and is not set out herein.]''
Section Referred to in Other Sections
This section is referred to in sections 1254, 1281a, 1281b, 1282,
1283, 1284, 1285, 1286, 1288, 1291, 1292, 1297, 1298, 1311, 1314, 1371,
1375, 1382, 1383 of this title.
