PUBLIC LAW 104-182—AUG. 6, 1996 110 STAT. 1647 manufacturer to dispense water for humem ingestion, that contains more than 4 percent lead by dry weight.". SEC. 119. CAPACITY DEVELOPMENT. Part B (42 U.S.C. 300g et seq.) is amended by adding after section 1419 the following: "CAPACITY DEVELOPMENT " SEC. 1420. (a) STATE AUTHORITY FOR NEW SYSTEMS. —^A State 42 USC 300g-9. shall receive only 80 percent of the allotment that the State is otherwise entitled to receive under section 1452 (relating to State loan funds) unless the State has obtained the legal authority or other means to ensure that all new community water systems and new nontransient, noncommunity water systems commencing operation after October 1, 1999, demonstrate technical, managerial, and financial capacity with respect to each national primary drinking water regulation in effect, or likely to be in effect, on the date of commencement of operations. "(b) SYSTEMS IN SIGNIFICANT NONCOMPLIANCE.— "(1) LIST.— Beginning not later than 1 year after the date of enactment of this section, each State shall prepare, periodically update, and submit to the Administrator a list of community water systems and nontransient, noncommunity water systems that have a history of significant noncompliance with this title (as defined in guidelines issued prior to the date of enactment of this section or any revisions of the guidelines that have been made in consultation with the States) and, to the extent practicable, the reasons for noncompliance. "(2) REPORT. —Not later than 5 years after the date of enactment of this section and as part of the capacity development strategy of the State, each State shall report to the Administrator on the success of enforcement mechanisms and initial capacity development efforts in assisting the public water systems listed under paragraph (1) to improve technical, managerial, and financial capacity. "(3) WITHHOLDING. — The list and report under this subsection shall be considered part of the capacity development strategy of the State required under subsection (c) of this section for purposes of the withholding requirements of section 1452(a)(l)(G)(i) (relating to State loan funds). "(c) CAPACITY DEVELOPMENT STRATEGY. — "(1) IN GENERAL,—Beginning 4 years after the date of enactment of this section, a State shall receive only— "(A) 90 percent in fiscal year 2001; "(B) 85 percent in fiscal year 2002; and "(C) 80 percent in each subsequent fiscal year, of the allotment that the State is otherwise entitled to receive under section 1452 (relating to State loan funds), unless the State is developing and implementing a strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity. "(2) CONTENT.— In preparing the capacity development strategy, the State shall consider, solicit public comment on, and include as appropriate— "(A) the methods or criteria that the State will use to identify and prioritize the public water systems most
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