To establish a water supply enhancement demonstration program, including the demonstration of desalination, and for other purposes.

Summary: Quality Water Supply Enhancement Act - Directs the Secretary of the Interior, in coordination with specified Federal agencies (Water Resource Agencies or WRAs) and the lead facility described in the National Water Supply Technology Program White Paper (Program Coordinator), to establish and carry out a desalination and advanced water supply enhancement demonstration program and fund demonstration projects.

Directs the Program Coordinator to: (1) construct a facility for administering the program; (2) conduct peer review of proposals and research results; (3) create a roadmap to identify the best projects and make determinations about which would most substantially improve the use of existing supplies; (4) coordinate budgets for projects at, and provide funding to, Regional Centers; (5) establish a transfer program to identify and facilitate full commercialization of promising projects; (6) implement crosscutting research to develop sensor and monitoring systems for water and energy efficiency and management; (7) establish a Water Supply Advisory Panel; and (8) provide competitive funding mechanisms to eligible institutions and individuals for projects.

Designates the Utton Center at the University of New Mexico Law School as the National Water Policy Institute.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Quality Water Supply Enhancement 
Act''.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to provide for the development of economically viable 
        advanced water supply enhancement demonstration projects, 
        including desalination, that would--
                    (A) substantially improve access to existing water 
                supplies; and
                    (B) provide access to untapped water sources;
            (2) to facilitate the widespread commercialization of newly 
        developed water supply for use in real-world applications;
            (3) to provide objective analyses of water supply policies; 
        and
            (4) to facilitate collaboration among Federal agencies in 
        the development of advanced water supply demonstration 
        projects, including desalination.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Advisory panel.--The term ``Advisory Panel'' means the 
        Water Supply Advisory Panel established under section 5(a).
            (2) Regional center.--The term ``Regional Center'' means 
        the Regional Center referenced in the National Water Supply 
        Technology Program White Paper, with a specific region of the 
        nation and a specific water theme as designated under section 
        6(b).
            (3) Institute.--The term ``Institute'' means the Water 
        Supply Policy Institute designated by section 8(a).
            (4) Program.--The term ``program'' means the water supply 
        program established under section 4(a).
            (5) Program coordinator.--The term ``Program Coordinator'' 
        means the lead Facility as described in the National Water 
        Supply Technology Program White Paper.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (7) Water resource agencies.--Federal agencies, as 
        identified in the Interagency Consortium, developed by the 
        Bureau of Reclamation, for Desalination and Membrane 
        Separation.
            (8) Water supply enhancement.--
                    (A) In general.--The term ``water supply 
                enhancement'' means a demonstration project, including 
                desalination, designed to improve water quality or make 
                more efficient use of existing water sources.
                    (B) Inclusions.--The term ``water supply 
                enhancement'' includes demonstration projects for--
                            (i) reducing water consumption in the 
                        production or generation of energy;
                            (ii) desalination and related concentrate 
                        disposal;
                            (iii) water reuse;
                            (iv) contaminant removal;
                            (v) agriculture, industrial, and municipal 
                        efficiency; and
                            (vi) water monitoring and systems analysis.

SEC. 4. DESALINATION AND WATER SUPPLY ENHANCEMENT DEMONSTRATION 
              PROGRAM.

    (a) Establishment.--The Secretary shall, in coordination with the 
Water Resource Agencies, and the Program Coordinator, establish a 
desalination and advanced water supply enhancement demonstration 
program and fund demonstration projects for the development and 
commercialization of, advanced water supply demonstration projects, 
including desalination. The Secretary shall be responsible for 
coordinating the Water Resource Agencies activities authorized under 
this Act.
    (b) Program Coordinator.--
            (1) In general.--The program shall be carried out by the 
        Secretary, in coordination with the Water Resources Agencies 
        and the Program Coordinator.
            (2) Duties.--In carrying out the program, the Program 
        Coordinator, in consultation with the Secretary and Water 
        Resource Agencies, shall--
                    (A) construct a facility at the office of the 
                Program Coordinator for administering the program;
                    (B) establish budgetary and contracting procedures 
                for the program;
                    (C) perform any administrative duties relating to 
                the program;
                    (D) administer funds under section 7;
                    (E) conduct peer review of water supply enhancement 
                demonstration proposals and research results;
                    (F) create a water supply enhancement demonstration 
                roadmap to--
                            (i) identify the best water supply 
                        demonstration projects; and
                            (ii) make determinations about which water 
                        supply demonstration projects would most 
                        substantially improve the use of existing water 
                        supplies;
                    (G) coordinate budgets for demonstration projects 
                at Regional Centers;
                    (H) coordinate research carried out under the 
                program;
                    (I) perform annual evaluations of demonstration 
                projects and the progress made by Regional Centers;
                    (J) establish a water supply demonstration transfer 
                program--
                            (i) to identify commercially promising 
                        water supply demonstration projects; and
                            (ii) to facilitate prototyping of, business 
                        planning for, regulatory acceptance of, and 
                        full commercialization of promising water 
                        supply demonstration projects through--
                                    (I) project facilities;
                                    (II) industry consortia; and
                                    (III) collaboration with commercial 
                                financing organizations;
                    (K) establish procedures and criteria to 
                periodically assess Regional Centers under section 
                6(f)(2);
                    (L) establish procedures for providing information 
                to the public on the results of demonstration projects 
                conducted under the program; and
                    (M) implement cross-cutting research to develop 
                sensor and monitoring systems for water and energy 
                efficiency and management.

SEC. 5. WATER SUPPLY ADVISORY PANEL.

    (a) Establishment.--The Program Coordinator, in consultation with 
the Secretary, shall establish an advisory panel, to be known as the 
``Water Supply Advisory Panel'', to advise the Program with respect 
to--
            (1) the direction of the program;
            (2) reviewing the performance of any demonstration project 
        carried out using amounts made available under the program;
            (3) facilitating the commercialization of the water supply 
        demonstration successes developed under the program; and
            (4) evaluating water policy.
    (b) Membership.--The Advisory Panel shall include members, with 
interest and expertise in water supply demonstration projects, that 
represent--
            (1) industry;
            (2) educational institutions;
            (3) the Federal Government;
            (4) nongovernmental organizations;
            (5) international water technology institutions; and
            (6) the Regional Centers.

SEC. 6. REGIONAL CENTERS IN WATER SUPPLY ENHANCEMENT.

    (a) In General.--A Regional Center shall partner with one or more 
universities from the region, that shall be eligible for funding under 
section 7(a) to conduct demonstration projects on specific advanced 
water supply enhancement projects.
    (b) Initial Regional Centers.--The Regional Centers as identified 
in the National Water Supply Technology Program White Paper, shall be 
grouped by region and theme, including, but not limited to the 
following:
            (1) Northeast region.--Reducing water quality impacts from 
        power plant outfall and decentralized water treatment.
            (2) Central atlantic region.--Produced water purification 
        and use for power production and water reuse for mega-cities.
            (3) Southeast region.--Shallow aquifer conjunctive water 
        use; energy reduction for sea water desalination and membrane 
        demonstration project development.
            (4) Midwest region.--Water efficiency in manufacturing and 
        energy reduction in wastewater treatment.
            (5) Central region.--Cogeneration of nuclear power and 
        water, energy systems for pumping irrigation and mining water 
        reuse.
            (6) West region.--Conjunctive management of hydropower and 
        water; and watershed management.
            (7) Southwest region.--Water for power production in arid 
        environments; energy reduction and waste disposal for brackish 
        desalination; high water and energy efficiency in arid 
        agriculture; and transboundary water management.
            (8) Pacific region.--Point of use technology to reduce 
        water treatment and conveyance energy; co-located energy 
        production and water treatment; and water reuse for 
        agriculture.
    (c) Selection of University Partners.--In consultation with the 
Program Coordinator and the Advisory Panel, each Regional Center, 
within 6 months after the date of enactment of this Act, shall select a 
primary university partner and may nominate additional university 
partners.
    (d) Operational Procedures.--Not later than 1 year after the date 
of enactment of this Act, each Regional Center shall submit to the 
Program Coordinator operational procedures for such Regional Center.
    (e) Additional Regional Centers.--Subject to approval by the 
Advisory Panel, the Program Coordinator may, not sooner than 5 years 
after the date of enactment of this Act, designate not more than 4 
additional Regional Centers if the Program Coordinator determines that 
there are additional water supply technologies that need to be 
researched.
    (f) Period of Designation.--
            (1) In general.--A designation under subsection (b), 
        subsection (c), or subsection (d) shall be for a period of 5 
        years.
            (2) Assessment.--A Regional Center shall be subject to 
        periodic assessments in accordance with procedures and criteria 
        established under section 4(b)(2)(K).
            (3) Renewal.--After the initial period under paragraph (1), 
        a designation may be renewed for subsequent 5-year periods in 
        accordance with procedures and criteria established under 
        section 4(b)(2)(K).
            (4) Probation, termination, or nonrenewal.--
                    (A) In general.--Based on a periodic assessment 
                conducted under paragraph (2) and after review by the 
                Secretary and Water Resource Agencies, the Secretary 
                may determine not to renew the designation of a 
                Regional Center.
                    (B) Termination.--In coordination with the Water 
                Resources Agencies, the Secretary may terminate or 
                choose not to renew the designation of a Regional 
                Center.
    (g) Executive Director.--A Regional Center shall be administered by 
an executive director.
    (h) Publication of Research Results.--A Regional Center shall 
periodically publish the results of any research carried out under the 
program in appropriate peer-reviewed journals.

SEC. 7. PROGRAM FUNDING.

    (a) Funding to Regional Centers.--
            (1) In general.--The Program Coordinator, in coordination 
        with the Secretary, and Water Resource Agencies, shall provide 
        funding to the Regional Center subject to the provisions of 
        section 10(b) to carry out demonstration projects identified in 
        section 6(b) in coordination with other Regional Centers 
        without cost-share requirements.
            (2) Distribution.--Of the funds made available to each 
        Regional Center, 50 percent shall be distributed to regional 
        university partners. Funds distributed to university partners 
        within the region shall be distributed following a plan 
        developed and included in the Regional Center's operational 
        procedures developed under section 6(d) without cost-share 
        requirements.
    (b) Open-Call Funding.--
            (1) In general.--The Program Coordinator, in coordination 
        with the Secretary, and Water Resource Agencies, shall provide 
        competitive funding mechanisms to eligible institutions and 
        individuals for water supply demonstration projects.
            (2) Eligible collaborative institutions.--Each of the 
        following are eligible for funding under paragraph (1):
                    (A) Nongovernmental organizations.
                    (B) Department of Energy National Laboratories.
                    (C) Private corporations.
                    (D) Industry consortia.
                    (E) Universities or university consortia.
                    (F) Any other entity with expertise in the conduct 
                of research on water supply technologies.
                    (G) International research consortia.
            (3) Distribution of funds.--Of the funds allotted for the 
        program funding, the following percentages and restrictions 
        apply:
                    (A) Nongovernmental organizations.--No less than 15 
                percent and no more than 25 percent of the total funds 
                shall be provided as block funding to nongovernmental 
                organizations subject to a 50 percent nonprogram cost 
                share that then may be redistributed by the 
                nongovernmental organization along with non-program 
                matching funds for individual projects.
                    (B) National laboratories.--No less than 20 percent 
                and no more than 30 percent of the total funds shall be 
                provided to support individual projects from Department 
                of Energy National Laboratories without matching fund 
                requirements.
    (c) Federal Agencies.--No less than 15 percent and no more than 25 
percent of the total funds shall be provided to support individual 
projects that are recommended by at least one other Federal Agency that 
is providing at least a 50 percent funding match.
    (d) Other Entities.--The remainder of funds may be provided to 
support individual projects subject to a 25 percent nonprogram cost 
share.
    (e) Term of Grant.--
            (1) In general.--Except as provided in paragraph (2), funds 
        provided under this section shall be for a term of 2 years.
            (2) Renewal.--The Program Coordinator, in consultation with 
        the Secretary, and Water Resource Agencies, may renew 
        demonstration project financing for up to 2 additional years as 
        appropriate.
    (f) Reporting.--Organizations receiving funding under this section 
shall report on a bi-annual basis the results and status of research 
projects undertaken with funds from this Act.
    (g) Treatment of Funds.--Amounts received under funding provided to 
a non-Federal entity by this program shall be considered to be non-
Federal funds when used as matching funds by the non-Federal entity 
toward a Federal cost-shared project outside this program.
    (h) Criteria.--The Program Coordinator, in coordination with the 
Secretary, and Water Resource Agencies, shall establish criteria for 
the submission and review of grant applications and the provision of 
funds under this section.
    (i) Cost-Sharing Requirement.--A National Laboratory that receives 
funding under this section shall not be subject to a cost-sharing 
requirement.

SEC. 8. NATIONAL WATER SUPPLY POLICY INSTITUTE.

    (a) Designation.--The Utton Center at the University of New Mexico 
Law School is designated as the National Water Policy Institute.
    (b) Duties.--The Institute shall--
            (1) perform objective research on relevant water, 
        regulations, and policy pertinent to this Act;
            (2) provide policy alternatives to increase national and 
        international water supplies;
            (3) consult with the Regional Centers, industry, 
        municipalities, nongovernmental organizations, other 
        participants of the program, and any other interested persons, 
        with priority for consultation services to be given to 
        participants in the program; and
            (4) conduct an annual water policy seminar to provide 
        information on demonstration projects carried out or funded by 
        the Institute.
    (c) Partnerships.--The Institute may enter into partnerships with 
other institutions to assist in carrying out the duties of the 
Institute under subsection (b).
    (d) Executive Director.--The Institute shall be administered by an 
executive director, subject to approval by the Program Coordinator.

SEC. 9. REPORTS.

    (a) Reports to Program Coordinator.--Any Regional Center, or 
collaborative institution that receives funding under section 7 shall 
submit to the Program Coordinator an annual report on activities 
carried out using amounts made available under this Act during the 
preceding fiscal year.
    (b) Report to Congress.--Not later than 3 fiscal years after the 
date of enactment of this Act and every 5 years thereafter, the Program 
Coordinator shall submit to the Secretary, and other Water Resource 
Agencies, and Congress a report that describes the activities carried 
out under this Act.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to the 
Secretary, and Water Resource Agencies, for each of fiscal years 2005 
through 2009--
            (1) for the construction of a facility under section 
        4(b)(2)(A), $20,000,000;
            (2) for the administration of the program by the Program 
        Coordinator and for administration of the facility constructed 
        under section 4(b)(2)(A), $5,000,000;
            (3) for demonstration projects carried out under the 
        program, $200,000,000; and
            (4) for Regional Centers to administer funding and to 
        update, maintain, and operate the facilities, as necessary, 
        $7,500,000.
    (b) Allocation.--Of amounts made available under subsection (a)(3) 
for a fiscal year--
            (1) not more than the lesser of $10,000,000 or 5 percent 
        shall be made available to each Regional Center designated by 
        section 6(b) or under section 6(e) as block funding following 
        the funding procedures in section 7(a);
            (2) not more than the lesser of $10,000,000 or 5 percent 
        shall be made available for the Institute designated by section 
        8(a);
            (3) at least 15 percent shall be made available for 
        demonstration projects implemented under section 4(b)(2)(J); 
        and
            (4) at least 30 percent shall be made available for the 
        open-call funding program described in section 7(b).