SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Local Environmental Improvement 
Facilitation Act''.

SEC. 2. USE OF FEDERAL WATER POLLUTION CONTROL ACT CIVIL PENALTIES TO 
              FUND COMMUNITY ENVIRONMENTAL PROJECTS.

    Section 309 of the Federal Water Pollution Control Act (33 U.S.C. 
1319) is amended by adding at the end the following:
    ``(h) Use of Civil Penalties To Fund Community Environmental 
Projects.--
            ``(1) Election.--Notwithstanding any other provision of 
        this Act or any other law, in the case of a civil or 
        administrative penalty assessed against an individual, 
        corporation, partnership, or association (referred to in this 
        subsection as a `private person') under this Act, the private 
        person may elect to--
                    ``(A) pay the amount of the penalty to the Treasury 
                of the United States for deposit into the special 
                account described in section 3113(d) of title 31, 
                United States Code, for payment of public debt 
                obligations; or
                    ``(B)(i) pay an amount not to exceed $500,000 of 
                the penalty to carry out a community environmental 
                project through an agreement entered into in accordance 
                with paragraph (2); and
                    ``(ii) pay the remaining amount of the penalty in 
                accordance with subparagraph (A).
            ``(2) Agreements to carry out community environmental 
        projects.--
                    ``(A) In general.--If a private person makes the 
                election described in paragraph (1)(B), the private 
                person, after consultation with and obtaining the 
                concurrence of the State and each political subdivision 
                of the State within the jurisdiction of which the 
                violation that resulted in the penalty occurred, shall 
                enter into an agreement with the parties described in 
                subparagraph (B) to pay the amount described in 
                paragraph (1)(B)(i) to an appropriate person in order 
                that the person may carry out 1 or more environmental 
                projects described in subparagraph (C). A separate 
                agreement shall be entered into with respect to each 
                penalty for which an election is made as described in 
                paragraph (1)(B).
                    ``(B) Parties.--The parties to an agreement 
                referred to in subparagraph (A) shall be the private 
                person, the Administrator, and each person that is to 
                carry out the environmental project.
                    ``(C) Environmental projects.--An environmental 
                project referred to in subparagraph (A)--
                            ``(i) shall be described in the agreement, 
                        which description shall include the type and 
                        scope of the project and the time period in 
                        which the project is to be carried out;
                            ``(ii) shall be carried out within a city 
                        or county in which the violation occurred;
                            ``(iii) shall bear a relationship to the 
                        nature of the violation;
                            ``(iv) may not be inconsistent with any 
                        Federal or State law;
                            ``(v) may not duplicate an activity or 
                        project for which Congress has specifically 
                        appropriated funds; and
                            ``(vi) may not consist of--
                                    ``(I) a monetary contribution to 
                                environmental research conducted at a 
                                college or university;
                                    ``(II) a study or assessment 
                                (including a pollution prevention 
                                assessment, a site assessment, an 
                                environmental management system audit, 
                                or a compliance audit) without a 
                                commitment by a party to the agreement 
                                or by another person or Federal entity 
                                to implement the results of the study 
                                or assessment; or
                                    ``(III) a project that is being 
                                funded through a low-interest Federal 
                                loan, a Federal contract, or a Federal 
                                grant.
                    ``(D) Oversight.--
                            ``(i) In general.--The Administrator shall 
                        ensure that an environmental project that is 
                        the subject of an agreement entered into under 
                        this subsection is carried out in accordance 
                        with the terms of the agreement.
                            ``(ii) Enforcement.--If the Administrator 
                        determines that a private person that elected 
                        under paragraph (1)(B) to enter into an 
                        agreement fails to carry out the environmental 
                        project in accordance with the agreement, the 
                        Administrator may terminate the agreement and 
                        require the private person to pay all or part 
                        of the penalty amount described in paragraph 
                        (1)(B)(i) as if no election had been made.''.
Local Environmental Improvement Facilitation Act - Amends the Federal Water Pollution Control Act to provide that, in the case of a civil or administrative penalty assessed against an individual, corporation, partnership, or association (private person), the private person may elect to pay:  (1) the amount of the penalty to the Treasury for deposit into a special account for payment of public debt obligations; or (2) an amount not to exceed $500,000 of the penalty to carry out a community environmental project in accordance with this Act, with the remainder to be paid into the Treasury's special account. 
Requires a private person who makes the latter election, after consulting with and obtaining the concurrence of the State and each political subdivision of the State within which the violation occurred, to enter into an agreement to pay the prescribed amount to an appropriate person to carry out one or more environmental projects. Requires a separate agreement to be entered into with respect to each penalty for which an election is made. 
Sets forth provisions regarding:  (1) suitable environmental projects; and (2) oversight.
Local Environmental Improvement Facilitation Act