110 STAT. 1662 PUBLIC LAW 104-182—AUG. 6, 1996 violation that is subject to the order unless the court finds that the assessment constitutes an abuse of discretion by the Administrator. "(c) LIMITATION ON STATE USE OF FUNDS COLLECTED FROM FEDERAL GTOVERNMENT. —Unless a State law in effect on the date of enactment of the Safe Drinking Water Act Amendments of 1996 or a State constitution requires the funds to be used in a different manner, all funds collected by a State from the Federal Government from penalties and fines imposed for violation of any substantive or procedural requirement referred to in subsection (a) shall be used by the State only for projects designed to improve or protect the environment or to defray the costs of environmental protection or enforcement.". (b) CITIZEN ENFORCEMENT.—(1) The first sentence of section 1449(a) (42 U.S.C. 300j-8(a)) is amended— (A) in paragraph (1), by striking ", or" and inserting a semicolon; (B) in paragraph (2), by striking the period at the end and inserting "; or"; and (C) by adding at the end the following: "(3) for the collection of a penalty by the United States Government (and associated costs and interest) against any Federal agency that fails, by the date that is 18 months after the effective aate of a final order to pay a penalty assessed by the Administrator under section 1429(b), to pay the penalty.". (2) Subsection (b) of section 1449 (42 U.S.C. 300j-8(b)) is amended by striking the period at the end of paragraph (2) and inserting "; or" and by adding the following new paragraph after paragraph (2): "(3) under subsection (a)(3) prior to 60 days after the plaintiff has given notice of such action to the Attorney General and to the Federal agency.". (c) WASHINGTON AQUEDUCT.— Section 1447 (42 U.S.C. 300j- 6) is amended by adding at the end the following: "(e) WASHINGTON AQUEDUCT. — The Secretary of the Army shall not pass the cost of any penalty assessed under this title on to any customer, user, or other purchaser of drinking water from the Washington Aqueduct system, including finished water from the Dalecarlia or McMillan treatment plant.". SEC. 130. STATE REVOLVING LOAN FUNDS. Part E (42 U.S.C. 300j et seq.) is amended by adding the following new section after section 1451: "STATE REVOLVING LOAN FUNDS 42 USC 30()j-i2. "SEC. 1452. (a) GENERAL AUTHORITY.— "(1) GRANTS TO STATES TO ESTABLISH STATE LOAN FUNDS. — "(A) IN GENERAL.— The Administrator shall offer to enter into agreements with eligible States to make capitalization grants, including letters of credit, to the States under this subsection to further the health protection objectives of this title, promote the efficient use of fund resources, and for other purposes as are specified in this title. "(B) ESTABLISHMENT OF FUND.— To be eligible to receive a capitalization grant under this section, a State shall
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