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1 (October 5, 2006)

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                                                                    Order Code 97-488
                                                              Updated October 5, 2006



 CRS Report for Congress

               Received through the CRS Web




               Clean Water Act Section 401:
                   Background and Issues

                             Claudia Copeland
            Specialist in Resources and Environmental Policy
                Resources, Science, and Industry Division


Summary


     Section 401 of the Clean Water Act requires that an applicant for a federal license
 or permit provide a certification that any discharges from the facility will comply with
 the act, including water quality standard requirements. Disputes have arisen over the
 states' exercise of authority under Section 401. For the most part, the debate over the
 Section 401 certification issue has been between states and hydropower interests. A
 1994 Supreme Court decision which upheld the states' authority in this area dismayed
 development and hydropower interest groups. The Court revisited these issues in a 2006
 ruling that unanimously upheld the states' authority to condition hydropower licenses.
 The dispute between states and industry groups about Section 401 authority has been a
 legislative issue on several occasions, but Congress has not responded by modifying the
 provision's scope. In addition, there has been interest in clarifying whether Section 401
 certification applies to nonpoint source discharges, such as rainfall runoff, as well as
 point source discharges from pipes or ditches. This question was raised in an Oregon
 lawsuit; while a federal court ruled that Section 401 does not apply to nonpoint source
 discharges, some interests continue to favor a broad reading of 401 that would apply to
 both nonpoint and point sources of pollutant discharges.


 Background

    Under the Clean Water Act (CWA), an applicant for a federal license or permit to
conduct any activity that may result in a discharge to waters of the United States must
provide the federal agency with a Section 401 certification. The certification, made by
the state in which the discharge originates, declares that the discharge will comply with
applicable provisions of the act, including water quality standards requirements.

    Section 401 provides states with two distinct powers: one, the power indirectly to
deny federal permits or licenses by withholding certification; and two, the power to impose
conditions upon federal permits by placing limitations on certification. Generally, Section
401 certification has been applied to hydropower projects seeking a license from the


       Congressional Research Service +. The Library of Congress

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