SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Combined Sewer Overflow Control and 
Partnership Act of 1998''.

SEC. 2. COMBINED SEWER OVERFLOWS.

    Section 402 of the Federal Water Pollution Control Act (33 U.S.C. 
1342) is amended by adding at the end the following:
    ``(q) Combined Sewer Overflows.--
            ``(1) Requirement for permits, orders, and decrees.--Each 
        permit, order, or decree issued pursuant to this Act for a 
        discharge from a combined storm and sanitary sewer shall 
        conform to the Combined Sewer Overflow Control Policy signed by 
        the Administrator on April 11, 1994.
            ``(2) Term of permit, order, or decree.--
                    ``(A) Authority to issue.--Notwithstanding any 
                schedule for compliance authorized by section 301(b), 
                or any permit limitation authorized by subsection 
                (b)(1)(B) of this section, the Administrator or the 
                State (in the case of a State with a program approved 
                under subsection (b)) may issue or execute a permit, 
                order, or decree consistent with this section for a 
                discharge from a combined storm and sanitary sewer.
                    ``(B) Schedule for compliance.--
                            ``(i) In general.--A permit, order, or 
                        decree issued pursuant to subparagraph (A) 
                        shall include a schedule for compliance, within 
                        a period of not to exceed 15 years, with a 
                        long-term control plan under the Control Policy 
                        referred to in paragraph (1).
                            ``(ii) Exception.--Notwithstanding clause 
                        (i), a compliance schedule of longer than 15 
                        years may be granted if the owner or operator 
                        demonstrates to the satisfaction of the 
                        Administrator or the State, as appropriate, 
                        reasonable further progress towards compliance 
                        with a long-term plan under the Control Policy 
                        and if the Administrator or the State, as 
                        appropriate, determines--
                                    ``(I) that compliance within 15 
                                years is not within the economic 
                                capability of the owner or operator; or
                                    ``(II) that a longer period is 
                                otherwise appropriate.
            ``(3) Savings clause.--Any administrative or judicial 
        decree or order issued before the date of enactment of this 
        subsection establishing any deadline, schedule, or timetable 
        for the construction of treatment works for control of any 
        discharge from a municipal combined sewer system may, at the 
        request of the municipal owner or operator, be modified to 
        extend any such deadline, schedule, or timetable to conform 
        with the requirements of paragraph (2).
            ``(4) Water quality standards-designated use review.--No 
        permit, order, or decree issued pursuant to this Act shall 
        require compliance with water quality based requirements 
        contained in a long-term control plan under the Control Policy 
        referred to in paragraph (1) unless the Administrator or the 
        State, as appropriate, has completed the water quality 
        standards-designated use review process called for in the 
        Control Policy, including the adoption of any refinements 
        needed to reflect the site-specific wet weather impacts of 
        combined sewer overflows and to ensure that the long-term 
        control plan provides for cost-effective compliance with water 
        quality standards. Consideration shall be given to conducting 
        these reviews on a watershed basis where appropriate. Nothing 
        in this subsection may be construed to affect either the 
        authority to conduct or scheduling of water quality standard 
        reviews required under section 303(c).
            ``(5) Grants.--
                    ``(A) In general.--The Administrator may make 
                grants to any municipality or municipal entity for 
                planning, design, and construction of facilities to 
                intercept, transport, control, or treat combined storm 
                and sanitary sewer flows.
                    ``(B) Federal share.--The Federal share of the cost 
                of activities carried out using amounts from a grant 
                made under subparagraph (A) shall be at least 55 
                percent of the cost. The non-Federal share of the cost 
                may include, in any amount, public and private funds 
                and in-kind services.
                    ``(C) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph $500,000,000 for fiscal year 1999, 
                $750,000,000 for fiscal year 2000, and $1,000,000,000 
                for fiscal year 2001. Such sums shall remain available 
                until expended.
                    ``(D) Reports.--On or before January 1, 2001, and 
                once every 2 years thereafter, the Administrator shall 
                transmit to Congress a report containing recommended 
                funding levels for the 2 fiscal years following the 
                date of the report for activities relating to combined 
                storm and sanitary sewer flows described in 
                subparagraph (A).''.
Combined Sewer Overflow Control and Partnership Act of 1998 - Amends the Federal Water Pollution Control Act to require each permit, order, or decree issued pursuant to such Act for a discharge from a combined storm and sanitary sewer to conform to the Combined Sewer Overflow Control Policy signed by the Administrator of the Environmental Protection Agency on April 11, 1994.  Authorizes the Administrator, notwithstanding specified compliance schedules and permit limitations, to issue or execute a permit, order, or decree for discharges from such sewers that includes a schedule for compliance with a long-term control plan for a term of up to 15 years.  Provides for extensions of such term, as appropriate. 
Modifies any administrative or judicial decree or order issued before this Act's enactment date that establishes any deadline or schedule for the construction of treatment works for control of any discharge from a municipal combined sewer system to extend such deadlines or schedules to conform with this Act, at the request of the municipal owner or operator. 
Prohibits any permit, order, or decree issued pursuant to the Act from requiring compliance with water quality based requirements contained in a long-term control plan under the Control Policy unless the Administrator has completed the water quality standards-designated use review process called for in the Control Policy. 
Authorizes the Administrator to make grants to municipalities for planning, design, and construction of facilities to intercept, transport, control, or treat combined storm and sanitary sewer flows. 
Authorizes appropriations for FY 1999 through 2001. 
Directs the Administrator to report biennially to the Congress on recommended funding levels for the two fiscal years following the date of a report on activities relating to combined storm and sanitary sewer flows.
Combined Sewer Overflow Control and Partnership Act of 1998