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. Until recently, much of 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 hydroelectric power interest groups. The dispute between states and industry groups was a legislative issue in the 104th Congress through an amendment to a House-passed Clean Water Act re-authorization bill; the Senate did not act on that bill.

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The President signed P.L. 104-205, the Department of Transportation and Related Agencies Appropriations Act, 1997, (FY1997 Act) on September 30, 1996. This action completes work on Department of Transportation (DOT) and related agencies appropriations for the year.