EXEMPTIONS.

SEC. 117. EXEMPTIONS. (a) In General.— Section 1416 (42 U.S.C. 300g-5) is amended as follows: (1) In subsection (a)(1)— (A) by inserting after “(which may include economic factors” the following: “, including qualification of the public water system as a system serving a disadvantaged community pursuant to section 1452(d)”; and (B) by inserting after “treatment technique requirement,” the following: “or to implement measures to develop an alternative source of water supply,”. (2) In subsection (a), by striking “and” at the end of paragraph (2), striking the period at the end of paragraph (3) and inserting “; and” and by adding the following at the end thereof: “(4) management or restructuring changes (or both) cannot reasonably be made that will result in compliance with this title or, if compliance cannot be achieved, improve the quality of the drinking water.”. (3) In subsection (b)(1)(A)— (A) by striking “(including increments of progress)” and inserting “(including increments of progress or measures to develop an alternative source of water supply)”; and (B) by striking “requirement and treatment” and inserting “requirement or treatment”. (4) In subsection (b)(2)— (A) by striking “(except as provided in subparagraph (B))” in subparagraph (A) and all that follows through “3 years after the date of the issuance of the exemption if” in subparagraph (B) and inserting the following: “not 110 STAT. 1645later than 3 years after the otherwise applicable compliance date established in section 1412(b)(10). “(B) No exemption shall be granted unless”; (B) in subparagraph (B)(i), by striking “within the period of such exemption” and inserting “prior to the date established pursuant to section 1412(b)(10)”; (C) in subparagraph (B)(ii), by inserting after “such financial assistance” the following: “or assistance pursuant to section 1452, or any other Federal or State program is reasonably likely to be available within the period of the exemption”; (D) in subparagraph (C)— (i) by striking “500 service connections” and inserting “a population of 3,300”; and (ii) by inserting “, but not to exceed a total of 6 years,” after “for one or more additional 2-year periods”; and (E) by adding at the end the following: “(D) Limitation.— A public water system may not receive an exemption under this section if the system was granted a variance under section 1415(e).”. (b) Limited Additional Compliance Period.— (1) The State of New York, on a case-by-case basis and after notice and an opportunity of at least 60 days for public comment, may allow an additional period for compliance with the Surface Water Treatment Rule established pursuant to section 1412(b)(7)(C) of the Safe Drinking Water Act in the case of unfiltered systems in Essex, Columbia, Greene, Dutchess, Rensselaer, Schoharie, Saratoga, Washington, and Warren Counties serving a population of less than 5,000, which meet appropriate disinfection requirements and have adequate watershed protections, so long as the State determines that the public health will be protected during the duration of the additional compliance period and the system agrees to implement appropriate control measures as determined by the State. (2) The additional compliance period referred to in paragraph (1) shall expire on the earlier of the date 3 years after the date on which the Administrator identifies appropriate control technology for the Surface Water Treatment Rule for public water systems in the category that includes such system pursuant to section 1412(b)(4)(E) of the Safe Drinking Water Act or 5 years after the date of enactment of the Safe Drinking Water Act Amendments of 1996.