Water Quality Financing Act of 2002

Water Quality Financing Act of 2002 - Amends the Federal Water Pollution Control Act (FWPCA) to authorize the Administrator of the Environmental Protection Agency to make grants to nonprofit organizations to provide technical and information assistance for rural and small treatment works. Requires establishment of procedures for the competitive award of grants.

Extends funding for State- and interstate-managed pollution control programs.

Revises State water pollution control revolving fund provisions concerning: (1) agreements for treatment works capitalization grants; (2) project eligibility; (3) loan payments, subsidization, and administrative expenses; (4) technical and planning assistance for small treatment works; (5) funding allotments; (6) priorities and intended use plans; and (7) Federal oversight review procedures.

Increases the limit on amounts authorized for grants for development of management plans and construction of publicly owned treatment works to serve Indians.

Waives application of the Federal Reports Elimination and Sunset Act to various water pollution-related reporting requirements, thereby leaving them in place.

Amends the Internal Revenue Code to exempt from the private activity bond volume cap bonds issued as part of an issue whose proceeds are to be used to provide water or sewage facilities.

Revises arbitrage bond rules to exclude from consideration as proceeds of an issue any amounts derived from a Federal grant or related State contribution made in connection with a FWPCA or Safe Drinking Water Act State revolving loan fund.