I 

118TH CONGRESS 

2D SESSION H. R. 9650 

To provide incentives for the purchase of water-efficient products, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 18, 2024 

Mr. CARTWRIGHT (for himself, Ms. BROWNLEY, Mr. KHANNA, Ms. 

VELA ́ZQUEZ, Ms. BONAMICI, Mr. CONNOLLY, Mr. GALLEGO, Mr. 

HUFFMAN, Ms. PINGREE, Ms. ESHOO, Mr. TAKANO, Mr. COHEN, Ms. 

NORTON, Mr. GRIJALVA, Mr. EVANS, Mr. PETERS, Ms. TOKUDA, and 

Mr. GARCI ́A of Illinois) introduced the following bill; which was referred 

to the Committee on Ways and Means, and in addition to the Committees 

on Energy and Commerce, and Oversight and Accountability, for a period 

to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL 

To provide incentives for the purchase of water-efficient 

products, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Water Advanced Tech5 nologies for Efficient Resource Use Act of 2024’’. 


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1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) ADMINISTRATOR.—The term ‘‘Adminis4 trator’’ means the Administrator of the Environ5 mental Protection Agency. 

6 (2) AGENCY.—The term ‘‘agency’’ has the 

7 meaning given such term in section 7902(a) of title 

8 5, United States Code. 

9 (3) COVERED CONSUMER.—The term ‘‘covered 

10 consumer’’ means an individual served by an eligible 

11 entity. 

12 (4) ELIGIBLE ENTITY.—The term ‘‘eligible enti13 ty’’ means— 

14 (A) a State, local, or Tribal government; 

15 (B) a drinking water utility or wastewater 

16 utility; 

17 (C) a municipal water authority or a re18 gional water authority; or 

19 (D) a nonprofit organization. 

20 (5) INCENTIVE.—The term ‘‘incentive’’ in21 cludes— 

22 (A) rebates, vouchers, and other financial 

23 incentives; and 

24 (B) the direct installation of a WaterSense 

25 product. 


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1 (6) NONPROFIT ORGANIZATION.—The term 

2 ‘‘nonprofit organization’’ means an organization 

3 that— 

4 (A) is described in section 501(c)(3) of the 

5 Internal Revenue Code of 1986 (26 U.S.C. 

6 501(c)(3)); and 

7 (B) is exempt from taxation under section 

8 501(a) of such Code. 

9 (7) PRODUCT.—The term ‘‘product’’ means a 

10 product, building, landscape, facility, process, or 

11 service. 

12 (8) STATE.—The term ‘‘State’’ means each of 

13 the several States of the United States, the District 

14 of Columbia, Puerto Rico, the United States Virgin 

15 Islands, Guam, American Samoa, and the Common16 wealth of the Northern Mariana Islands. 

17 (9) WATERSENSE PRODUCT.—The term 

18 ‘‘WaterSense product’’ means a product that is cer19 tified to display the WaterSense label under the 

20 WaterSense program established under section 324B 

21 of the Energy Policy and Conservation Act (42 

22 U.S.C. 6294b). 

23 SEC. 3. FEDERAL PROCUREMENT OF WATERSENSE PROD24 UCTS. 

25 (a) PROCUREMENT.— 


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1 (1) IN GENERAL.—Except as provided in para2 graph (2), in procuring any water-consuming prod3 uct, the head of an agency shall procure a 

4 WaterSense product. 

5 (2) EXCEPTIONS.—Paragraph (1) does not 

6 apply if— 

7 (A) with respect to the type of water-con8 suming product being procured, the head of an 

9 agency finds, in writing, that— 

10 (i) no WaterSense product is cost-ef11 fective over the life of such type of prod12 uct, taking current and future water and 

13 wastewater cost savings into account; or 

14 (ii) no WaterSense product of such 

15 type is reasonably available to meet the 

16 functional requirements of the agency; or 

17 (B) the water-consuming product being 

18 procured is designed for use in combat or com19 bat-related missions. 

20 (b) INSTALLATION AND MAINTENANCE.—As applica21 ble, the head of an agency that procures a WaterSense 

22 product under subsection (a)(1) shall use a certified pro23 fessional (including a licensed plumber or a licensed me24 chanical contractor, as appropriate) to install and main25 tain such product. 


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1 (c) MEASURES TO REDUCE WATER CONSUMP2 TION.—The head of each agency shall consider adopting 

3 measures to reduce agency water consumption, including 

4 such measures as the use of— 

5 (1) water reuse, reclamation, or recycling tech6 nology; 

7 (2) water leak detection technology; and 

8 (3) products that— 

9 (A) do not consume water; and 

10 (B) perform similar functions as com11 parable water-consuming products. 

12 (d) PUBLICATION OF LIST.—Section 324B(b)(2) of 

13 the Energy Policy and Conservation Act (42 U.S.C. 

14 6294b(b)(2)) is amended by striking ‘‘outreach and public 

15 education’’ and inserting ‘‘outreach, public education, and 

16 publication (on the website of the Environmental Protec17 tion Agency) of a list of WaterSense-labeled products’’. 

18 (e) REGULATIONS.—Not later than 180 days after 

19 the date of enactment of this section, the Administrator 

20 of the Environmental Protection Agency and the Director 

21 of the Office of Management and Budget shall issue regu22 lations to carry out this section. 


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1 SEC. 4. INCENTIVES FOR THE PURCHASE OF WATERSENSE 

2 PRODUCTS. 

3 (a) ESTABLISHMENT.—The Administrator shall es4 tablish a program to provide grants to eligible entities to 

5 provide incentives to covered consumers for the purchase 

6 of a WaterSense product. 

7 (b) ELIGIBILITY.—To be eligible to receive a grant 

8 under this section, an eligible entity shall— 

9 (1) submit an application to the Administrator 

10 at such time, in such form, and containing such in11 formation as the Administrator may require; and 

12 (2) provide assurances, which the Administrator 

13 determines are satisfactory, that the eligible entity 

14 will use such grant to supplement, but not supplant, 

15 other incentives that are available to a covered con16 sumer for the purchase of a WaterSense product. 

17 (c) EVALUATION CRITERIA FOR APPLICATIONS.— 

18 (1) IN GENERAL.—In evaluating an application 

19 submitted under subsection (b)(1), the Adminis20 trator shall consider— 

21 (A) the estimated effect of providing incen22 tives; 

23 (B) if the eligible entity previously received 

24 a grant under this section— 


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1 (i) the degree to which the use of such 

2 grant encouraged the purchase of 

3 WaterSense products; and 

4 (ii) whether there are amounts of such 

5 grant that remain unused; and 

6 (C) whether the eligible entity promotes or 

7 implements a program to recycle or manage the 

8 disposal of any products that are replaced as a 

9 result of the provision of incentives under this 

10 section. 

11 (2) PRIORITY.—The Administrator shall 

12 prioritize providing grants under this section to eligi13 ble entities that will provide incentives to low- and 

14 middle-income households. 

15 (d) USE OF GRANT.— 

16 (1) IN GENERAL.—An eligible entity that re17 ceives a grant under this section shall— 

18 (A) use such grant to provide incentives to 

19 covered consumers that purchase a WaterSense 

20 product; or 

21 (B) with approval from the Administrator, 

22 provide some, or all, of such grant to another 

23 eligible entity for use in accordance with sub24 paragraph (A). 


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1 (2) ADMINISTRATIVE COSTS.—Not more than 

2 50 percent of each grant provided under this section 

3 may be used to pay for the administrative cost of 

4 providing incentives in accordance with paragraph 

5 (1). 

6 (3) INCENTIVE AMOUNTS.—With respect to re7 bates, vouchers, and other such financial incentives, 

8 an eligible entity shall determine the amount to pro9 vide based on the following: 

10 (A) The amount of the grant provided to 

11 the eligible entity under this section. 

12 (B) The amount of any other incentives 

13 that are available to a covered consumer for the 

14 purchase of a WaterSense product. 

15 (C) The estimated amount necessary to en16 courage a covered consumer to purchase a 

17 WaterSense product. 

18 (D) As applicable, the costs to a covered 

19 consumer for onsite preparation, assembly, and 

20 installation of a WaterSense product. 

21 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

22 are authorized to be appropriated to carry out this sec23 tion— 

24 (1) $50,000,000 for fiscal year 2024; 

25 (2) $100,000,000 for fiscal year 2025; 


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1 (3) $150,000,000 for fiscal year 2026; 

2 (4) $100,000,000 for fiscal year 2027; and 

3 (5) $50,000,000 for fiscal year 2028. 

4 SEC. 5. EXCLUSION FROM GROSS INCOME OF AMOUNTS RE5 CEIVED AS INCENTIVES FOR THE PURCHASE 

6 OF WATERSENSE PRODUCTS. 

7 (a) IN GENERAL.—Part III of subchapter B of chap8 ter 1 of the Internal Revenue Code of 1986 is amended 

9 by inserting before section 140 the following new section: 

10 ‘‘SEC. 139I. INCENTIVES FOR THE PURCHASE OF 

11 WATERSENSE PRODUCTS. 

12 ‘‘(a) IN GENERAL.—In the case of an individual, 

13 gross income does not include any amount received as an 

14 incentive under section 3 of the Water Advanced Tech15 nologies for Efficient Resource Use Act of 2024. 

16 ‘‘(b) DENIAL OF DOUBLE BENEFIT.— 

17 ‘‘(1) DEDUCTIONS AND CREDITS.—No deduc18 tion or credit under this subtitle shall be allowed for 

19 any expenditure with respect to which any amount 

20 excluded under subsection (a) was provided. 

21 ‘‘(2) BASIS ADJUSTMENT.—The adjusted basis 

22 of any property with respect to which an amount ex23 cluded under subsection (a) is provided shall be re24 duced by the amount so excluded.’’. 


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1 (b) CONFORMING AMENDMENT.—The table of sec2 tions for part III of subchapter B of chapter 1 of such 

3 Code is amended by inserting before the item relating to 

4 section 140 the following new item: 

‘‘Sec. 139I. Incentives for the purchase of WaterSense products.’’. 

5 (c) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to taxable years beginning after 

7 the date of the enactment of this section. 

8 SEC. 6. MODIFICATIONS TO INCOME EXCLUSION FOR CON9 SERVATION SUBSIDIES. 

10 (a) IN GENERAL.—Subsection (a) of section 136 of 

11 the Internal Revenue Code of 1986 is amended— 

12 (1) by striking ‘‘any subsidy provided’’ and in13 serting ‘‘any subsidy— 

14 ‘‘(1) provided’’, 

15 (2) by striking the period at the end and insert16 ing a comma, and 

17 (3) by adding at the end the following new 

18 paragraphs: 

19 ‘‘(2) provided (directly or indirectly) by a public 

20 utility to a customer, or by a State or local govern21 ment to a resident of such State or locality, for the 

22 purchase or installation of any water conservation or 

23 efficiency measure, or 

24 ‘‘(3) provided (directly or indirectly) by a storm 

25 water management provider to a customer, or by a 


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1 State or local government to a resident of such State 

2 or locality, for the purchase or installation of any 

3 storm water management measure.’’. 

4 (b) CONFORMING AMENDMENTS.— 

5 (1) DEFINITION OF WATER CONSERVATION OR

6 EFFICIENCY MEASURE AND STORM WATER MANAGE7 MENT MEASURE.—Section 136(c) of the Internal 

8 Revenue Code of 1986 is amended— 

9 (A) by striking ‘‘ENERGY CONSERVATION

10 MEASURE’’ in the heading thereof and inserting 

11 ‘‘DEFINITIONS’’, 

12 (B) by striking ‘‘IN GENERAL’’ in the 

13 heading of paragraph (1) and inserting ‘‘EN14 ERGY CONSERVATION MEASURE’’, and 

15 (C) by redesignating paragraph (2) as 

16 paragraph (4) and by inserting after paragraph 

17 (1) the following: 

18 ‘‘(2) WATER CONSERVATION OR EFFICIENCY

19 MEASURE.—For purposes of this section, the term 

20 ‘water conservation or efficiency measure’ means any 

21 evaluation of water use, or any installation or modi22 fication of property, the primary purpose of which is 

23 to reduce consumption of water or to improve the 

24 management of water demand with respect to one or 

25 more dwelling units. 


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1 ‘‘(3) STORM WATER MANAGEMENT MEASURE.— 

2 For purposes of this section, the term ‘storm water 

3 management measure’ means any installation or 

4 modification of property primarily designed to re5 duce or manage amounts of storm water with re6 spect to one or more dwelling units.’’. 

7 (2) DEFINITION OF PUBLIC UTILITY.—Section 

8 136(c)(4) of such Code (as redesignated by para9 graph (1)(C)) is amended by striking subparagraph 

10 (B) and inserting the following: 

11 ‘‘(B) PUBLIC UTILITY.—The term ‘public 

12 utility’ means a person engaged in the sale of 

13 electricity, natural gas, or water to residential, 

14 commercial, or industrial customers for use by 

15 such customers. 

16 ‘‘(C) STORM WATER MANAGEMENT PRO17 VIDER.—The term ‘storm water management 

18 provider’ means a person engaged in the provi19 sion of storm water management measures to 

20 the public. 

21 ‘‘(D) PERSON.—For purposes of subpara22 graphs (B) and (C), the term ‘person’ includes 

23 the Federal Government, a State or local gov24 ernment or any political subdivision thereof, or 

25 any instrumentality of any of the foregoing.’’. 


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1 (3) CLERICAL AMENDMENTS.— 

2 (A) The heading of section 136 of such 

3 Code is amended— 

4 (i) by inserting ‘‘AND WATER’’ after 

5 ‘‘ENERGY’’, and 

6 (ii) by striking ‘‘PROVIDED BY PUB7 LIC UTILITIES’’. 

8 (B) The item relating to section 136 in the 

9 table of sections of part III of subchapter B of 

10 chapter 1 of such Code is amended— 

11 (i) by inserting ‘‘and water’’ after 

12 ‘‘energy’’, and 

13 (ii) by striking ‘‘provided by public 

14 utilities’’. 

15 (c) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to taxable years beginning after 

17 the date of enactment of this section. 

18 (d) NO INFERENCE.—Nothing in this section or the 

19 amendments made by this section shall be construed to 

20 create any inference with respect to the proper tax treat21 ment of any subsidy received directly or indirectly from 

22 a public utility, a storm water management provider, or 

23 a State or local government for any water conservation 


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1 measure or storm water management measure before the 

2 date of the enactment of this section. 

Æ 


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