Directs the Administrator of the Environmental Protection Agency to assist States in establishing simplified procedures for small water systems to obtain assistance under the Act.
Requires revolving funds to be used only for providing assistance for activities which have as a principal benefit the improvement or protection of water quality of navigable waters.
Provides for an extended repayment period and additional subsidization with respect to loans made to financially distressed communities from revolving funds.
Reauthorizes appropriations for FY 2002 through 2006 for the revolving fund program.