Sec. 2. Integrated planning process
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Section 402 of the Federal Water Pollution Control Act ( 33 U.S.C. 1342 ) is amended by adding at the end the following: The Administrator shall establish a comprehensive and flexible integrated planning process and permitting process for municipal wastewater and stormwater management that will help municipalities comply with the requirements of this Act by enabling municipalities to identify the most cost-effective and protective approaches to comply with such requirements, and prioritize their investments in addressing such requirements.
The Administrator shall ensure that, under the planning and permitting process established under paragraph (1)— actions taken by the municipality to comply with the requirements of this Act are implemented in a manner that— considers alternative approaches and actions for the municipality to comply with such requirements; takes into consideration the technical feasibility and economic affordability of the alternative approaches and actions considered; accounts for the financial capability of the municipality to comply with such requirements; prioritizes such requirements in order to provide the greatest environmental and public health benefits for the resources expended; accounts for both the municipality’s preexisting and reasonably anticipated future compliance requirements related to, as applicable— a combined sewer overflow; a sanitary sewer overflow; a capacity, management, operation, and maintenance program for sanitary sewer collection systems; a municipal stormwater discharge; a municipal wastewater discharge; a water quality-based effluent limitation to implement an applicable wasteload allocation in a total maximum daily load; source water protection efforts that protect surface water supplies; and nonpoint source controls through proposed trading approaches or other mechanisms; allows a municipality to develop a schedule of compliance that sequences the implementation of effluent limitations and other control measures based on the priorities established under clause (iv), in accordance with paragraph (4); enables the municipality to implement innovative or sustainable technologies, approaches, and practices to comply with such requirements, including through the use of green infrastructure measures as set forth in the memorandum issued by the Administrator on April 20, 2011, entitled Protecting Water Quality with Green Infrastructure in EPA Water Permitting and Enforcement Programs ; provides for meeting the requirements of this Act by using the existing flexibilities in this Act and its implementing regulations, policies, and guidance; and reflects State requirements and planning efforts and incorporates State input on priority setting and other key implementation issues; a municipality may develop an integrated plan, in consultation with the Administrator (or an authorized State, in the case of a permit program approved under subsection (b)), that— identifies the compliance requirements of the municipality under this Act, including effluent limitations and other control measures to be implemented by the municipality; includes, as applicable, a schedule developed under subparagraph (A)(vi) for complying with such requirements; and includes documentation of the integrated planning and permitting process of the municipality under this section, including data and other information on which the integrated plan is based; such an integrated plan (including as applicable, the schedule of compliance included in the plan) may be incorporated in whole or in part into a permit issued to the municipality under this section; progress in implementing the integrated plan is tracked and evaluated; a process for revising the integrated plan, using adaptive management processes, to account for adjustments and further actions that may be needed to comply with the requirements of this Act is incorporated into the integrated plan and the municipality’s permit issued under this section; with respect to any permit issued under this subsection that includes effluent limitations and other control measures that are established as part of a schedule of compliance included in such an integrated plan, such effluent limitations and other control measures included in that permit shall be based on water quality and other requirements under this Act that are technically feasible and economically affordable, as described in paragraphs
(6)and (7); and an authorized State, in the case of a permit program approved under subsection (b), may implement the integrated planning process under this subsection. An integrated plan developed under this subsection shall include the elements described in Part III of the Integrated Municipal Stormwater and Wastewater Planning Approach Framework, issued by the Environmental Protection Agency and dated May 2012. The Administrator shall— inform municipalities of the opportunity to develop an integrated plan; and at the request of a municipality or a State, provide information and technical assistance to the municipality or State regarding developing an integrated plan. A schedule of compliance developed under paragraph (2)(A)(vi) and incorporated into a permit under this section may be implemented over more than 1 permit term. A schedule of compliance under this subsection may allow a municipality to sequence the implementation of effluent limitations and other control measures that allow the municipality to implement, and assess the effectiveness of, the highest priority effluent limitations and other control measures before requiring implementation of other effluent limitations or control measures, if the schedule, once completed, would result in compliance with all requirements of this Act. A schedule of compliance under this subsection shall provide for reasonable progress, including interim dates and milestones, as appropriate, to be made towards meeting the permit requirements subject to such schedule. Approved effluent limitations and other control measures to be implemented by the municipality pursuant to this subsection— during the term of the current permit shall be identified as such in the schedule of compliance and the current permit, and shall be requirements of the current permit; and subsequent to the term of the current permit shall be identified as such in the schedule of compliance and the current permit, and shall become requirements of an appropriate subsequent permit, but shall not be requirements of the current permit. Nothing in section 301(b)(1)(C) shall preclude a State from authorizing in its water quality standards the issuance of a schedule of compliance to meet water quality-based effluent limitations in permits that incorporate provisions of an integrated plan pursuant to this subsection. In any case in which a discharge is subject to a judicial order or consent decree, as of the date of enactment of this subsection, resolving an enforcement action under this Act, any schedule of compliance issued pursuant to an authorization in a State water quality standard shall not revise or otherwise affect a schedule of compliance in that order or decree, unless the order or decree is modified by agreement of the parties and the court. Integrated plans and permits incorporating such a plan developed under this subsection are subject to the approval of the Administrator (or an authorized State, in the case of a permit program approved under subsection (b)), which shall not be unreasonably withheld. At the time of renewal of a municipality’s integrated permit issued pursuant to this subsection, the Administrator (or an authorized State, in the case of a permit program approved under subsection (b)) shall review the schedule of compliance and other requirements included in the existing permit to determine whether the requirements should be continued or modified. The permit review shall assess whether changed circumstances warrant adjusting the actions to be taken by the municipality, including whether— the effluent limitations and other control measures in the current permit are expected to result in the municipality complying with the requirements of this Act within the timeframes provided in the schedule of compliance; the effluent limitations and other control measures continue to be technically feasible and economically affordable under paragraphs
(6)and (7); new innovative treatment approaches are available that provide greater environmental and public health benefits or have fewer adverse environmental impacts for the resources expended; the municipality is subject to additional regulatory requirements; the municipality’s financial capability has changed; and reasonable progress has been achieved, as provided for under paragraph (4)(C), including meeting interim dates and milestones, and if not, the reasons for such failure to achieve reasonable progress. The permit requirements in an existing permit shall be incorporated into the renewed permit, unless the Administrator (or the authorized State, in the case of a permit program approved under subsection (b)) determines that a requirement should be modified or removed to help the municipality comply with the requirements of this Act through the implementation of technically feasible and economically affordable effluent limitations and other control measures. Prior to approving a plan developed under this subsection and issuing or renewing a permit incorporating such a plan pursuant to this subsection, or denying a request from a municipality for approval of a plan and issuance or renewal of a permit incorporating such a plan under this subsection, the Administrator (or an authorized State, in the case of a permit program approved under subsection (b)) shall— prepare a report explaining the rationale for the proposed decision; and make the report publicly available for review and comment by the municipality and other interested parties. When the Administrator provides his or her views to a State concerning a proposed integrated plan or permit incorporating such a plan that is to be issued by the State pursuant to this subsection, the Administrator shall make those views available in a written document that is publicly available for review and comment by the municipality and other interested parties. In making a determination of technical feasibility under this subsection, the Administrator (or the State) shall consider— naturally occurring pollutant concentrations; natural, ephemeral, intermittent, or low flow conditions or water levels; human-caused conditions or sources of pollution that cannot be remedied or would cause more environmental damage to correct than to leave in place; dams, diversions, or other types of hydrologic modifications that make it not feasible to restore the water body to its original condition or to operate such modification in a way that would comply with the requirements of this Act; and physical conditions related to the natural features of the water body, such as the lack of a proper substrate, cover, flow, depth, pools, riffles, and the like, unrelated to water quality, that may preclude compliance with the requirements of this Act. In making a determination of economic affordability under this subsection, the Administrator (or the authorized State, in the case of a permit program approved under subsection (b)) shall consider preexisting and potential future costs, including of debt service, to the municipality for implementing effluent limitations and other control measures necessary to comply with the requirements of this Act would result in substantial and widespread economic and social impact in the service area of the municipality. In determining whether the economic and social impacts of preexisting and potential future costs under subparagraph
(A)are substantial and widespread, the Administrator (or the State) shall consider the financial condition both of the municipality and of persons in the service area of the municipality, taking into consideration factors including— socioeconomic indicators, including income and unemployment data for the service area of the municipality; population trends in the service area of the municipality; impacts on low-income households in the service area, including the ability of such households to pay basic shelter costs; whether there is a local industry that is failing or relocating out of the service area of the municipality, or if a local industry might fail or relocate if higher taxes or fees are imposed on it; the municipality’s capital improvement plan and whether the municipality would, in order to finance improvements to comply with the requirements of this Act, have to divert resources that would otherwise be used for investment in essential capital projects that provide core public services to the community; the ability of the municipality to incur more debt, including its ability to issue, and find a market for, additional municipal bonds; whether the debt incurred to implement the effluent limitations and other control measures has or will result in a lowering of the municipality’s bond rating; whether the municipality has limited legal authority to pass increased costs through to ratepayers and increased costs of water quality programs must be paid from its general fund; the legally adopted rate structure for provision of water- and wastewater-related services in the service area in effect at the time that a determination of economic affordability is made; the cumulative costs paid by persons in the service area to an entity for provision of water- and wastewater-related services; and other information determined to be relevant by the Administrator (or the authorized State, in the case of a permit program approved under subsection (b)), including whether the municipality is located in an area eligible for assistance under section 201 or 209 of the Public Works and Development Act of 1965 ( 42 U.S.C. 3141 , 3149), as described in section 301 of that Act ( 42 U.S.C. 3161 ). Cumulative costs for the provision of water- and wastewater-related services to be considered under subparagraph (B)(xi) shall include the municipality’s preexisting and reasonably anticipated future costs paid by a person, including through taxes and fees, for the municipality’s cost of— compliance with Federal and State water- and wastewater-related and other regulatory requirements; operation and maintenance of water and wastewater systems; asset management; and servicing any debt incurred or to be incurred to finance the other costs referred to in this clause. In making a determination of economic impact under subparagraph (B), the Administrator (or the State) shall consider the impact on a person to be substantial if the cumulative costs paid by the person exceeds, or is projected to exceed, 2 percent of the person’s annual household income. In making a determination of economic impact under subparagraph (B), the Administrator (or the State) shall consider the impact to be widespread if 20 percent or more of persons in the service area of the municipality face a substantial impact described in clause (ii). In making a determination of economic affordability under this subsection, the Administrator (or the State) shall not base the determination on— median household income in the service area of the municipality; or an expected minimum level of expenditure on the provision of water and wastewater services by a municipality. Nothing in this subsection reduces or eliminates any flexibility available under this Act, including the authority of a State to— revise a water quality standard after a use attainability analysis under section 131.10(g) of title 40, Code of Federal Regulations (as in effect on the date of enactment of this subsection); or adopt a water quality standards variance under section 131.14 of title 40, Code of Federal Regulations (as in effect on the date of enactment of this subsection). Such a revision of a standard or adoption of a variance by a State under subparagraph (A)(i) is subject to the approval of the Administrator under section 303(c), which shall not be unreasonably withheld. .
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