SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Clean Water Trust Fund Act 
of 2000''.

SEC. 2. NATIONAL CLEAN WATER TRUST FUND.

    Section 309 of the Federal Water Pollution Control Act (33 U.S.C. 
1319) is amended by adding at the end the following:
    ``(h) National Clean Water Trust Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        a National Clean Water Trust Fund (referred to in this 
        subsection as the `Fund') consisting of amounts transferred to 
        the Fund under paragraph (2) and amounts credited to the Fund 
        under paragraph (3).
            ``(2) Transfer of amounts.--For fiscal year 2001, and each 
        fiscal year thereafter, the Secretary of the Treasury shall 
        transfer to the Fund an amount determined by the Secretary to 
        be equal to the total amount deposited in the general fund of 
        the Treasury in the preceding fiscal year from fines, 
        penalties, and other funds obtained through judgments from 
        courts of the United States for enforcement actions conducted 
        under this section and section 505(a)(1), excluding any amounts 
        ordered to be used to carry out mitigation projects under this 
        section or section 505(a).
            ``(3) Investment of amounts.--
                    ``(A) In general.--The Secretary of the Treasury 
                shall invest in interest-bearing obligations of the 
                United States such portion of the Fund as is not, in 
                the Secretary's judgment, required to meet current 
                withdrawals.
                    ``(B) Administration.--The obligations shall be 
                acquired and sold and interest on, and the proceeds 
                from the sale or redemption of, the obligations shall 
                be credited to the Fund in accordance with section 9602 
                of the Internal Revenue Code of 1986.
            ``(4) Use of amounts for remedial projects.--
                    ``(A) In general.--Subject to subparagraph (B), 
                amounts in the Fund shall be available, as provided in 
                appropriations Acts, to the Administrator to carry out 
                projects to restore and recover waters of the United 
                States from damage resulting from violations of this 
                Act that are subject to enforcement actions under this 
                section or from the discharge of pollutants into the 
                waters of the United States, including--
                            ``(i) soil and water conservation projects;
                            ``(ii) wetland restoration projects; and
                            ``(iii) such other similar projects as the 
                        Administrator determines to be appropriate.
                    ``(B) Condition for use of funds.--Amounts in the 
                Fund shall be available under subparagraph (A) only for 
                a project conducted in the watershed, or in a watershed 
                adjacent to the watershed, in which a violation of this 
                Act described in subparagraph (A) results in the 
                institution of an enforcement action.
            ``(5) Selection of projects.--
                    ``(A) Priority.--In selecting projects to carry out 
                under this subsection, the Administrator shall give 
                priority to a project described in paragraph (4) that 
                is located in the watershed, or in a watershed adjacent 
                to the watershed, in which there occurred a violation 
                under this Act for which an enforcement action was 
                brought that resulted in the payment of any amount into 
                the general fund of the Treasury.
                    ``(B) Consultation with states.--In selecting a 
                project to carry out under this section, the 
                Administrator shall consult with the State in which the 
                Administrator is considering carrying out the project.
                    ``(C) Allocation of amounts.--In determining an 
                amount to allocate to carry out a project to restore 
                and recover waters of the United States from damage 
                described in paragraph (4), the Administrator shall, in 
                the case of a priority project described in 
                subparagraph (A), take into account the total amount 
                deposited in the general fund of the Treasury as a 
                result of enforcement actions conducted with respect to 
                the violation under this section or section 505(a)(1).
            ``(6) Implementation.--The Administrator may carry out a 
        project under this subsection directly or by making grants to, 
        or entering into contracts with, another Federal agency, a 
        State agency, a political subdivision of a State, or any other 
        public or private entity.
            ``(7) Report to congress.--Not later than 1 year after the 
        date of the enactment of this subsection, and every 2 years 
        thereafter, the Administrator shall submit to Congress a report 
        on implementation of this subsection.''.

SEC. 3. USE OF CIVIL PENALTIES FOR MITIGATION PROJECTS.

    (a) In General.--Section 309(d) of the Federal Water Pollution 
Control Act (33 U.S.C. 1319(d)) is amended by inserting after the 
second sentence the following: ``The court may order that a civil 
penalty be used for carrying out mitigation, restoration, or other 
projects that are consistent with the purposes of this Act and that 
enhance public health or the environment.''.
    (b) Conforming Amendment.--Section 505(a) of the Federal Water 
Pollution Control Act (33 U.S.C. 1365(a)) is amended in the last 
sentence by inserting before the period at the end the following: ``, 
including ordering the use of a civil penalty for carrying out 
mitigation, restoration, or other projects in accordance with section 
309(d)''.
Authorizes the use of civil penalties obtained under such Act for mitigation or restoration projects or other projects that enhance public health or the environment.
National Clean Water Trust Fund Act of 2000