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1 (March 20, 2008)

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                                                                             Order Code 97-488
                                                                        Updated March 20, 2008





SCRS Report for Congress



                      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 modified 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 a lawsuit in Oregon; while
         a federal court ruled in the case 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. A state's water quality
        standards specify the designated use of a stream or lake (e.g., for water supply or
        recreation) and pollutant limits necessary to protect the designated use.

             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


                   Congressional Research Service , The Library of Congress
                         Prepared for Members and Committees of Congress

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