This bill amends the Federal Water Pollution Control Act to mandate that states dedicate a portion of federal capitalization grants to environmentally beneficial projects. Specifically, it requires states to use not less than 20 percent of these funds for certain "green projects." These green projects encompass green infrastructure , water or energy efficiency improvements , or other environmentally innovative activities . This requirement is contingent upon the availability of sufficient eligible project applications within the state and applies to funds made available through appropriations acts.