I 

114TH CONGRESS 

1ST SESSION H. R. 291 

To establish a WaterSense program, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 13, 2015 

Mrs. NAPOLITANO (for herself, Mrs. CAPPS, Ms. CHU of California, Mr. CONYERS, Mr. DOGGETT, Ms. ESHOO, Mr. GARAMENDI, Mr. GRIJALVA, Ms. 

HAHN, Mr. HASTINGS, Mr. HINOJOSA, Mr. HONDA, Mr. HUFFMAN, Ms. 

EDDIE BERNICE JOHNSON of Texas, Mrs. KIRKPATRICK, Ms. NORTON, 

Ms. LEE, Mr. LOWENTHAL, Mr. BEN RAY LUJA ́N of New Mexico, Mr. 

PETERS, Ms. ROYBAL-ALLARD, Mr. RUIZ, Mr. SHERMAN, Ms. SLAUGHTER, Mrs. TORRES, and Mr. VARGAS) introduced the following bill; which 

was referred to the Committee on Natural Resources, and in addition to 

the Committees on Transportation and Infrastructure, Energy and Commerce, and Science, Space, and Technology, 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 establish a WaterSense program, 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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Water in the 21st Century Act’’ or ‘‘W21’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 


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Sec. 1. Short title; table of contents. 

Sec. 2. Definition of Administrator. 

TITLE I—CONSERVATION AND EFFICIENCY 

Sec. 101. Water efficiency, conservation, and adaptation. 

TITLE II—RECYCLING, STORAGE, AND INTEGRATED WATER 

MANAGEMENT 

Sec. 201. Definitions. 

Subtitle A—Innovative Financing 

Sec. 211. Purposes. 

Sec. 212. Authority to provide assistance. 

Sec. 213. Applications. 

Sec. 214. Eligibility for assistance. 

Sec. 215. Determination of eligibility and project selection. 

Sec. 216. Secured loans. 

Sec. 217. Program administration. 

Sec. 218. State and local permits. 

Sec. 219. Regulations. 

Sec. 220. Funding. 

Sec. 221. Report to Congress. 

Subtitle B—Integrated Regional Water Management, Reclamation, and 

Recycling Projects 

Sec. 231. Water storage projects. 

Sec. 232. Authorization of appropriations. 

Subtitle C—Title Transfers 

Sec. 241. Authorization to transfer title. 

TITLE III—INNOVATION THROUGH RESEARCH, DATA, AND 

TECHNOLOGY 

Sec. 301. Open water data system. 

Sec. 302. Water Resources Research Act amendments. 

Sec. 303. Reauthorization of Water Desalination Act of 1996. 

Sec. 304. Review of reservoir operations. 

TITLE IV—DROUGHT PREPAREDNESS AND RESILIENCE 

Sec. 401. National drought resilience guidelines. 

Sec. 402. Drought preparedness for fisheries. 

1 SEC. 2. DEFINITION OF ADMINISTRATOR. 

2 In this Act, the term ‘‘Administrator’’ means the Ad3 ministrator of the Environmental Protection Agency. 


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1 TITLE I—CONSERVATION AND 

2 EFFICIENCY 

3 SEC. 101. WATER EFFICIENCY, CONSERVATION, AND ADAP4 TATION. 

5 (a) WATERSENSE.— 

6 (1) IN GENERAL.—There is established within 

7 the Environmental Protection Agency a WaterSense 

8 program to identify and promote water efficient 

9 products, buildings, landscapes, facilities, processes, 

10 and services so as— 

11 (A) to reduce water use; 

12 (B) to reduce the strain on water, waste13 water, and stormwater infrastructure; 

14 (C) to conserve energy used to pump, heat, 

15 transport, and treat water; and 

16 (D) to preserve water resources for future 

17 generations, through voluntary labeling of, or 

18 other forms of communications about, products, 

19 buildings, landscapes, facilities, processes, and 

20 services that meet the highest water efficiency 

21 and performance criteria. 

22 (2) DUTIES.—The Administrator shall— 

23 (A) establish— 

24 (i) a WaterSense label to be used for 

25 certain items; and 


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1 (ii) the procedure by which an item 

2 may be certified to display the WaterSense 

3 label; 

4 (B) promote WaterSense-labeled products, 

5 buildings, landscapes, facilities, processes, and 

6 services in the marketplace as the preferred 

7 technologies and services for— 

8 (i) reducing water use; and 

9 (ii) ensuring product and service per10 formance; 

11 (C) work to enhance public awareness of 

12 the WaterSense label through public outreach, 

13 education, and other means; 

14 (D) preserve the integrity of the 

15 WaterSense label by— 

16 (i) establishing and maintaining per17 formance criteria so that products, build18 ings, landscapes, facilities, processes, and 

19 services labeled with the WaterSense label 

20 perform as well or better than less water21 efficient counterparts; 

22 (ii) overseeing WaterSense certifi23 cations made by third parties; 

24 (iii) conducting reviews of the use of 

25 the WaterSense label in the marketplace 


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1 and taking corrective action in any case in 

2 which misuse of the label is identified; and 

3 (iv) carrying out such other measures 

4 as the Administrator determines to be ap5 propriate; 

6 (E) regularly review and, if appropriate, 

7 update WaterSense criteria for categories of 

8 products, buildings, landscapes, facilities, proc9 esses, and services, at least once every 6 years; 

10 (F) to the maximum extent practicable, 

11 regularly estimate and make available to the 

12 public the production and relative market 

13 shares of, and the savings of water, energy, and 

14 capital costs of water, wastewater, and storm15 water infrastructure attributable to the use of 

16 WaterSense-labeled products, buildings, land17 scapes, facilities, processes, and services, at 

18 least annually; 

19 (G) solicit comments from interested par20 ties and the public prior to establishing or re21 vising a WaterSense category, specification, in22 stallation criterion, or other criterion; 

23 (H) provide reasonable notice to interested 

24 parties and the public of any changes (including 

25 effective dates), on the adoption of a new or reVerDate Sep 11 2014 00:41 Jan 24, 2015 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H291.IH H291

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1 vised category, specification, installation cri2 terion, or other criterion, along with— 

3 (i) an explanation of the changes; and 

4 (ii) as appropriate, responses to com5 ments submitted by interested parties and 

6 the public; 

7 (I) provide appropriate lead time (as deter8 mined by the Administrator) prior to the appli9 cable effective date for a new or significant revi10 sion to a category, specification, installation cri11 terion, or other criterion, taking into account 

12 the timing requirements of the manufacturing, 

13 marketing, training, and distribution process 

14 for the specific product, building and landscape, 

15 or service category addressed; 

16 (J) identify and, if appropriate, implement 

17 other voluntary approaches in commercial, insti18 tutional, residential, industrial, and municipal 

19 sectors to encourage recycling and reuse tech20 nologies to improve water efficiency or lower 

21 water use; and 

22 (K) if appropriate, authorize the Water23 Sense label for use on products that are labeled 

24 by the Energy Star program implemented by 

25 the Administrator and the Secretary of Energy. 


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1 (3) AUTHORIZATION OF APPROPRIATIONS.— 

2 There are authorized to be appropriated to carry out 

3 this section— 

4 (A) $5,000,000 for fiscal year 2015; 

5 (B) $10,000,000 for fiscal year 2016; 

6 (C) $15,000,000 for fiscal year 2017; 

7 (D) $20,000,000 for fiscal year 2018; and 

8 (E) for each subsequent fiscal year, the ap9 plicable amount for the preceding fiscal year, as 

10 adjusted to reflect changes for the 12-month 

11 period ending the preceding November 30 in 

12 the Consumer Price Index for All Urban Con13 sumers published by the Bureau of Labor Sta14 tistics of the Department of Labor. 

15 (b) STATE WATER EFFICIENCY AND CONSERVATION

16 INCENTIVES PROGRAM.— 

17 (1) DEFINITIONS.—In this subsection: 

18 (A) ELIGIBLE ENTITY.—The term ‘‘eligible 

19 entity’’ means a State government, local or 

20 county government, tribal government, waste21 water or sewerage utility, municipal water au22 thority, energy utility, water utility, or non23 profit organization that meets the requirements 

24 of paragraph (2). 


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1 (B) INCENTIVE PROGRAM.—The term ‘‘in2 centive program’’ means a program for admin3 istering financial incentives for consumer pur4 chase and installation of water-efficient prod5 ucts, buildings (including new water-efficient 

6 homes), landscapes, processes, or services de7 scribed in paragraph (2)(A). 

8 (C) WATER-EFFICIENT PRODUCT, BUILD9 ING, LANDSCAPE, PROCESS, OR SERVICE.— 

10 (i) IN GENERAL.—The term ‘‘water11 efficient product, building, landscape, proc12 ess, or service’’ means a product, building, 

13 landscape, process, or service for a resi14 dence or a commercial or institutional 

15 building, or the landscape of a residence or 

16 commercial or institutional building, that 

17 is rated for water efficiency and perform18 ance— 

19 (I) by the WaterSense program; 

20 or 

21 (II) if a WaterSense specification 

22 does not exist, by the Energy Star 

23 program or an incentive program ap24 proved by the Administrator. 


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1 (ii) INCLUSIONS.—The term ‘‘water2 efficient product, building, landscape, proc3 ess, or service’’ includes— 

4 (I) faucets; 

5 (II) irrigation technologies and 

6 services; 

7 (III) point-of-use water treat8 ment devices; 

9 (IV) reuse and recycling tech10 nologies; 

11 (V) toilets; 

12 (VI) clothes washers; 

13 (VII) dishwashers; 

14 (VIII) showerheads; 

15 (IX) xeriscaping and other land16 scape conversions that replace irri17 gated turf; 

18 (X) new water efficient homes 

19 certified under the WaterSense pro20 gram; 

21 (XI) green stormwater installa22 tions such as permeable pavement, 

23 rain gardens, rain barrels, and green 

24 roofs; 


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1 (XII) composting solutions com2 plementary to water use and water 

3 quality; and 

4 (XIII) other water-efficient prod5 ucts, services, processes, or behavioral 

6 water efficiency solutions that address 

7 the objectives of the WaterSense pro8 gram. 

9 (D) WATERSENSE PROGRAM.—The term 

10 ‘‘WaterSense program’’ means the program es11 tablished by subsection (a). 

12 (2) ELIGIBLE ENTITIES.—An entity shall be eli13 gible to receive an allocation under paragraph (3) if 

14 the entity— 

15 (A) establishes (or has established) an in16 centive program to provide financial incentives 

17 to residential, commercial, and institutional 

18 consumers for the purchase of water-efficient 

19 products, buildings, landscapes, processes, or 

20 services; 

21 (B) submits an application for the alloca22 tion at such time, in such form, and containing 

23 such information as the Administrator may re24 quire; and 


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1 (C) provides assurances satisfactory to the 

2 Administrator that the entity will use the allo3 cation to supplement, but not supplant, non4 Federal funds made available to carry out the 

5 incentive program. 

6 (3) AMOUNT OF ALLOCATIONS.—For each fiscal 

7 year, the Administrator shall determine the amount 

8 to allocate to each eligible entity to carry out para9 graph (4), taking into consideration— 

10 (A) the population served by the eligible 

11 entity during the most recent calendar year for 

12 which data are available; 

13 (B) the targeted population of the incen14 tive program of the eligible entity, such as gen15 eral households, low-income households, or first16 time homeowners, and the probable effective17 ness of the incentive program for that popu18 lation; 

19 (C) for existing programs, the effectiveness 

20 of the program in encouraging the adoption of 

21 water-efficient products, buildings, landscapes, 

22 facilities, processes, and services; 

23 (D) any allocation to the eligible entity for 

24 a preceding fiscal year that remains unused; 

25 and 


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1 (E) the per capita water demand of the 

2 population served by the eligible entity during 

3 the most recent calendar year for which data 

4 are available and the availability or reliability of 

5 water supplies to the eligible entity. 

6 (4) USE OF ALLOCATED FUNDS.—Funds allo7 cated to an eligible entity under paragraph (3) may 

8 be used to pay up to 50 percent of the cost of estab9 lishing and carrying out an incentive program. 

10 (5) ISSUANCE OF INCENTIVES.— 

11 (A) IN GENERAL.—Financial incentives 

12 may be provided to residential, commercial, and 

13 institutional consumers that meet the require14 ments of the applicable incentive program. 

15 (B) MANNER OF ISSUANCE.—An eligible 

16 entity may— 

17 (i) issue all financial incentives di18 rectly to residential, commercial, and insti19 tutional consumers; or 

20 (ii) with approval of the Adminis21 trator, delegate all or part of financial in22 centive administration to other organiza23 tions, including local governments, munic24 ipal water authorities, water utilities, and 

25 nonprofit organizations. 


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1 (C) AMOUNT.—The amount of a financial 

2 incentive shall be determined by the eligible en3 tity, taking into consideration— 

4 (i) the amount of any Federal or 

5 State tax incentive available for the pur6 chase of the water-efficient product or 

7 service; 

8 (ii) the amount necessary to change 

9 consumer behavior to purchase water-effi10 cient products and services; and 

11 (iii) the consumer expenditures for on12 site preparation, assembly, and original in13 stallation of the product. 

14 (6) AUTHORIZATION OF APPROPRIATIONS.— 

15 There are authorized to be appropriated to the Ad16 ministrator to carry out this subsection— 

17 (A) $100,000,000 for fiscal year 2015; 

18 (B) $150,000,000 for fiscal year 2016; 

19 (C) $200,000,000 for fiscal year 2017; 

20 (D) $150,000,000 for fiscal year 2018; 

21 (E) $100,000,000 for fiscal year 2019; and 

22 (F) for each subsequent fiscal year, the ap23 plicable amount for the preceding fiscal year, as 

24 adjusted to reflect changes for the 12-month 

25 period ending the preceding November 30 in 


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1 the Consumer Price Index for All Urban Con2 sumers published by the Bureau of Labor Sta3 tistics of the Department of Labor. 

4 (c) WATER SYSTEM MITIGATION AND ADAPTATION

5 GRANTS.— 

6 (1) DEFINITIONS.—In this subsection: 

7 (A) OWNER OR OPERATOR.— 

8 (i) IN GENERAL.—The term ‘‘owner 

9 or operator’’ means a person (including a 

10 regional, State, local, municipal, or private 

11 entity) that owns or operates a water sys12 tem. 

13 (ii) INCLUSION.—The term ‘‘owner or 

14 operator’’ includes a non-Federal entity 

15 that has operational responsibilities for a 

16 federally owned water system. 

17 (B) WATER SYSTEM.—The term ‘‘water 

18 system’’ means— 

19 (i) a community water system (as de20 fined in section 1401 of the Safe Drinking 

21 Water Act (42 U.S.C. 300f)); 

22 (ii) a publicly owned treatment works 

23 (as defined in section 212 of the Federal 

24 Water Pollution Control Act (33 U.S.C. 


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1 1292)), including a municipal separate 

2 storm sewer system; 

3 (iii) a decentralized wastewater treat4 ment system for domestic sewage; 

5 (iv) a groundwater storage and re6 plenishment system; or 

7 (v) a system for transport and deliv8 ery of water for irrigation or conservation. 

9 (2) GRANTS.—Beginning in fiscal year 2015, 

10 the Administrator shall make grants to owners or 

11 operators of water systems to address any ongoing 

12 or forecasted (based on the best available research 

13 and data) climate-related impact on the water qual14 ity or quantity of a region of the United States, for 

15 the purposes of mitigating or adapting to the im16 pacts of climate change. 

17 (3) ELIGIBLE USES.—In carrying out this sub18 section, the Administrator shall make grants to as19 sist in the planning, design, construction, implemen20 tation, or maintenance of any program or project to 

21 increase the resilience of a water system to climate 

22 change by— 

23 (A) conserving water or enhancing water 

24 use efficiency, including through the use of 


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1 water metering to measure the effectiveness of 

2 a water efficiency program; 

3 (B) modifying or relocating existing water 

4 system infrastructure made or projected to be 

5 made inoperable by climate change impacts; 

6 (C) preserving or improving water quality, 

7 including through measures to manage, reduce, 

8 treat, or reuse municipal stormwater, waste9 water, or drinking water; 

10 (D) investigating, designing, or con11 structing groundwater remediation, recycled 

12 water, or desalination facilities or systems; 

13 (E) enhancing water management by in14 creasing watershed preservation and protection, 

15 such as through the use of natural or engi16 neered green infrastructure in the management, 

17 conveyance, or treatment of water, wastewater, 

18 or stormwater; 

19 (F) enhancing energy efficiency or the use 

20 and generation of renewable energy in the man21 agement, conveyance, or treatment of water, 

22 wastewater, or stormwater; 

23 (G) supporting the adoption and use of ad24 vanced water treatment, water supply manage25 ment (such as reservoir reoperation), or water 


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1 demand management technologies, projects, or 

2 processes (such as water reuse and recycling or 

3 adaptive conservation pricing) that maintain or 

4 increase water supply or improve water quality; 

5 (H) modifying or replacing existing sys6 tems or constructing new systems for existing 

7 communities or land currently in agricultural 

8 production to improve water availability, stor9 age, or conveyance in a manner that— 

10 (i) promotes more efficient use of 

11 available water supplies; and 

12 (ii) does not further exacerbate 

13 stresses on ecosystems; 

14 (I) supporting practices and projects, such 

15 as improved irrigation systems, water banking 

16 and other forms of water transactions, ground17 water recharge, stormwater capture, and reuse 

18 or recycling of drainage water, to improve water 

19 quality or promote more efficient water use, in20 cluding on land currently in agricultural pro21 duction; 

22 (J) conducting and completing studies or 

23 assessments to project how climate change may 

24 impact the future operations and sustainability 

25 of water systems; 


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1 (K) developing and implementing mitiga2 tion measures to rapidly address impacts on 

3 water systems most susceptible to abrupt cli4 mate change, including those in the Colorado 

5 River Basin and coastal regions at risk from 

6 rising sea levels; or 

7 (L) funding of transactions costs and cred8 it enhancement for pay-for-performance-based 

9 public-private initiatives intended to advance 

10 the eligible uses of the program or project. 

11 (4) APPLICATION.—To be eligible to receive a 

12 grant from the Administrator under paragraph (2), 

13 the owner or operator of a water system shall submit 

14 to the Administrator an application that— 

15 (A) includes a proposal of the program, 

16 strategy, or infrastructure improvement to be 

17 planned, designed, constructed, implemented, or 

18 maintained by the water system; 

19 (B) cites the best available research or 

20 data that demonstrates— 

21 (i) the risk to the water resources or 

22 infrastructure of the water system as a re23 sult of ongoing or forecasted changes to 

24 the hydrological system brought about by 

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1 cluding rising sea levels and changes in 

2 precipitation levels; and 

3 (ii) how the proposed program, strat4 egy, or infrastructure improvement would 

5 perform under the anticipated climate con6 ditions; 

7 (C) explains how the proposed program, 

8 strategy, or infrastructure improvement is ex9 pected to enhance the resiliency of the water 

10 system, including source water protection for 

11 community water systems, to these risks or re12 duce the direct or indirect greenhouse gas emis13 sions of the water system; and 

14 (D) demonstrates that the program, strat15 egy, or infrastructure improvement is— 

16 (i) consistent with any approved State 

17 and tribal climate adaptation plan; and 

18 (ii) not inconsistent with any ap19 proved natural resources plan. 

20 (5) COMPETITIVE PROCESS.— 

21 (A) IN GENERAL.—Each calendar year, the 

22 Administrator shall conduct a competitive proc23 ess to select and fund applications under this 

24 subsection. 


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1 (B) PRIORITY REQUIREMENTS AND

2 WEIGHTING.—In carrying out the process, the 

3 Administrator shall— 

4 (i) prioritize funding of applications 

5 that are submitted by the owners or opera6 tors of water systems that are, based on 

7 the best available research and data, at the 

8 greatest and most immediate risk of facing 

9 significant climate-related negative impacts 

10 on water quality or quantity; 

11 (ii) in selecting among the priority ap12 plications determined under clause (i), en13 sure that the final list of applications fund14 ed for each year includes a substantial 

15 number that, to the maximum extent prac16 ticable, includes each eligible use described 

17 in paragraph (3); 

18 (iii) solicit applications from water 

19 systems that are— 

20 (I) located in all regions of the 

21 United States; and 

22 (II) facing varying risks as a re23 sult of climate change; and 

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1 ment of criteria used in evaluating applica2 tions. 

3 (6) COST SHARING.— 

4 (A) FEDERAL SHARE.—The Federal share 

5 of the cost of any program, strategy, or infra6 structure improvement that is the subject of a 

7 grant awarded by the Administrator to a water 

8 system under paragraph (2) shall not exceed 50 

9 percent of the cost of the program, strategy, 

10 and infrastructure improvement. 

11 (B) CALCULATION OF NON-FEDERAL

12 SHARE.—In calculating the non-Federal share 

13 of the cost of a program, strategy, or infra14 structure improvement proposed by a water sys15 tem through an application submitted by the 

16 water system under paragraph (4), the Admin17 istrator shall— 

18 (i) include the value of any in-kind 

19 services that are integral to the completion 

20 of the program, strategy, or infrastructure 

21 improvement, as determined by the Admin22 istrator; and 

23 (ii) not include any other amount that 

24 the water system receives from a Federal 

25 agency. 


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1 (7) LABOR STANDARDS.— 

2 (A) IN GENERAL.—All laborers and me3 chanics employed on infrastructure improve4 ments funded directly by or assisted in whole or 

5 in part by this subsection shall be paid wages 

6 at rates not less than those prevailing for the 

7 same type of work on similar construction in 

8 the immediate locality, as determined by the 

9 Secretary of Labor in accordance with sub10 chapter IV of chapter 31 of part A of subtitle 

11 II of title 40, United States Code. 

12 (B) AUTHORITY AND FUNCTIONS.—With 

13 respect to the labor standards in this para14 graph, the Secretary of Labor shall have the 

15 authority and functions set forth in Reorganiza16 tion Plan Numbered 14 of 1950 (64 Stat. 

17 1267; 5 U.S.C. App.) and section 3145 of title 

18 40, United States Code. 

19 (8) LOCAL HIRING.— 

20 (A) IN GENERAL.—The recipient of assist21 ance may advertise and award a contract for 

22 construction containing requirements for the 

23 employment of individuals residing in or adja24 cent to any of the areas in which the work is 

25 to be performed under the contract, if— 


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1 (i) all or part of the construction work 

2 performed under the contract occurs in an 

3 area that has— 

4 (I) a per capita income of 80 per5 cent or less of the national average 

6 per capita income; or 

7 (II) an unemployment rate that 

8 is, for the most recent 24-month pe9 riod for which data are available, at 

10 least 1 percent greater than the na11 tional average unemployment rate; 

12 (ii) the estimated cost of the project 

13 of which the contract is a part is greater 

14 than $1,000,000; and 

15 (iii) the recipient does not hire indi16 viduals who do not have the necessary 

17 skills to perform work in the applicable 

18 craft or trade, except for individuals who 

19 are subject to an apprenticeship program 

20 or other training program meeting, as de21 termined by the Secretary. 

22 (B) ADVERTISEMENT.—In advertising and 

23 awarding a contract under this subsection, the 

24 Secretary or recipient of assistance shall ensure 


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1 that the requirements contained in the adver2 tisement would not— 

3 (i) compromise the quality of the 

4 project; 

5 (ii) unreasonably delay the completion 

6 of the project; or 

7 (iii) unreasonably increase the cost of 

8 the project. 

9 (9) EFFICIENT, INTEGRATED PROCUREMENT

10 FOR PROGRAMS JOINTLY FUNDED WITH THE DE11 PARTMENT OF HOUSING AND URBAN DEVELOP12 MENT.— 

13 (A) DEFINITION OF ELIGIBLE PROJECT.— 

14 In this paragraph, the term ‘‘eligible project’’ 

15 means a project for which the amount of fund16 ing provided by the Department of Housing and 

17 Urban Development is 10 percent or more of 

18 the amount of funding provided under this sub19 section. 

20 (B) PREFERENCES.—Notwithstanding the 

21 competitive bidding requirements of this section 

22 (including regulations), in the case of an eligible 

23 project funded jointly with funding provided by 

24 the Department of Housing and Urban Devel25 opment that is covered by section 3 of the 


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1 Housing and Urban Development Act of 1968 

2 (82 Stat. 846; 12 U.S.C. 1701u), a contracting 

3 agency may apply the preferences required for 

4 the funding by the Department of Housing and 

5 Urban Development under section 3 of that Act 

6 (including regulations) with respect to the fund7 ing, to the elements of the project funded in 

8 any part under this subsection. 

9 (C) PERMISSIBLE RESTRICTIONS.—A State 

10 or local law governing contracting practices that 

11 prohibits the awarding of contracts to busi12 nesses that have solicited or made contributions 

13 to political candidates, political parties, and 

14 holders of public office shall not be considered 

15 a violation of this section. 

16 (10) REGULATIONS.— 

17 (A) IN GENERAL.—Not later than 1 year 

18 after the date of enactment of this Act, the Ad19 ministrator shall promulgate final regulations to 

20 carry out this subsection. 

21 (B) SPECIAL RULE FOR THE CONSTRUC22 TION OF TREATMENT WORKS.—In carrying out 

23 this paragraph, the Administrator shall incor24 porate all relevant and appropriate require25 ments of title VI of the Federal Water Pollution 


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1 Control Act (33 U.S.C. 1381 et seq.) applicable 

2 to the construction of treatment works that are 

3 carried out under this subsection. 

4 (11) REPORT TO CONGRESS.—Not later than 3 

5 years after the date of enactment of this Act, and 

6 every 3 years thereafter, the Administrator shall 

7 submit to Congress a report on progress in imple8 menting this subsection, including information on 

9 project applications received and funded annually. 

10 (12) AUTHORIZATION OF APPROPRIATIONS.— 

11 There are authorized to be appropriated to carry out 

12 this subsection such sums as are necessary. 

13 TITLE II—RECYCLING, STORAGE, 

14 AND INTEGRATED WATER 

15 MANAGEMENT 

16 SEC. 201. DEFINITIONS. 

17 In this title: 

18 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti19 ty’’ means— 

20 (A) a corporation; 

21 (B) a partnership; 

22 (C) a joint venture; 

23 (D) a trust; 

24 (E) a Federal, State, or local governmental 

25 entity, agency, or instrumentality; and 


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1 (F) a conservancy district, irrigation dis2 trict, canal company, mutual water company, 

3 water users’ association, Indian tribe, agency 

4 created by interstate compact, or any other en5 tity that has the capacity to contract with the 

6 United States under Federal reclamation law. 

7 (2) FEDERAL CREDIT INSTRUMENT.—The term 

8 ‘‘Federal credit instrument’’ means a secured loan, 

9 loan guarantee, or other credit enhancement author10 ized to be made available under this title with re11 spect to a project. 

12 (3) INVESTMENT-GRADE RATING.—The term 

13 ‘‘investment-grade rating’’ means a rating of BBB 

14 minus, Baa3, bbb minus, BBB (low), or higher as 

15 assigned by a rating agency to project obligations. 

16 (4) LENDER.— 

17 (A) IN GENERAL.—The term ‘‘lender’’ 

18 means any non-Federal qualified institutional 

19 buyer (as defined in section 230.144A(a) of 

20 title 17, Code of Federal Regulations (or a suc21 cessor regulation) (commonly known as ‘‘Rule 

22 144A(a) of the Securities and Exchange Com23 mission’’ and issued under the Securities Act of 

24 1933 (15 U.S.C. 77a et seq.))). 


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1 (B) INCLUSIONS.—The term ‘‘lender’’ in2 cludes— 

3 (i) a qualified retirement plan (as de4 fined in section 4974 of the Internal Rev5 enue Code of 1986) that is a qualified in6 stitutional buyer; and 

7 (ii) a governmental plan (as defined in 

8 section 414 of the Internal Revenue Code 

9 of 1986) that is a qualified institutional 

10 buyer. 

11 (5) LOAN GUARANTEE.—The term ‘‘loan guar12 antee’’ means any guarantee or other pledge by the 

13 Secretary to pay all or part of the principal of, and 

14 interest on, a loan or other debt obligation issued by 

15 an obligor and funded by a lender. 

16 (6) OBLIGOR.—The term ‘‘obligor’’ means an 

17 eligible entity that is primarily liable for payment of 

18 the principal of, or interest on, a Federal credit in19 strument. 

20 (7) PROJECT OBLIGATION.— 

21 (A) IN GENERAL.—The term ‘‘project obli22 gation’’ means any note, bond, debenture, or 

23 other debt obligation issued by an obligor in 

24 connection with the financing of a project. 


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1 (B) EXCLUSION.—The term ‘‘project obli2 gation’’ does not include a Federal credit in3 strument. 

4 (8) RATING AGENCY.—The term ‘‘rating agen5 cy’’ means a credit rating agency registered with the 

6 Securities and Exchange Commission as a nationally 

7 recognized statistical rating organization (as defined 

8 in section 3(a) of the Securities Exchange Act of 

9 1934 (15 U.S.C. 78c(a)). 

10 (9) RECLAMATION STATE.—The term ‘‘Rec11 lamation State’’ means any of the States of— 

12 (A) Arizona; 

13 (B) California; 

14 (C) Colorado; 

15 (D) Idaho; 

16 (E) Kansas; 

17 (F) Montana; 

18 (G) Nebraska; 

19 (H) Nevada; 

20 (I) New Mexico; 

21 (J) North Dakota; 

22 (K) Oklahoma; 

23 (L) Oregon; 

24 (M) South Dakota; 

25 (N) Texas; 


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1 (O) Utah; 

2 (P) Washington; and 

3 (Q) Wyoming. 

4 (10) SECRETARY.—The term ‘‘Secretary’’ 

5 means the Secretary of the Interior. 

6 (11) SECURED LOAN.—The term ‘‘secured 

7 loan’’ means a direct loan or other debt obligation 

8 issued by an obligor and funded by the Secretary in 

9 connection with the financing of a project under sub10 title A. 

11 (12) SUBSIDY AMOUNT.—The term ‘‘subsidy 

12 amount’’ means the amount of budget authority suf13 ficient to cover the estimated long-term cost to the 

14 Federal Government of a Federal credit instrument, 

15 as calculated on a net present value basis, excluding 

16 administrative costs and any incidental effects on 

17 Governmental receipts or outlays in accordance with 

18 the Federal Credit Reform Act of 1990 (2 U.S.C. 

19 661 et seq.). 

20 (13) SUBSTANTIAL COMPLETION.—The term 

21 ‘‘substantial completion’’, with respect to a project, 

22 means the earliest date on which a project is consid23 ered to perform the functions for which the project 

24 is designed. 


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1 Subtitle A—Innovative Financing 

2 SEC. 211. PURPOSES. 

3 The purposes of this subtitle are— 

4 (1) to promote increased development of critical 

5 water resources infrastructure by establishing addi6 tional opportunities for financing water resources 

7 projects; 

8 (2) to attract new investment capital to infra9 structure projects that are capable of generating rev10 enue streams through user fees or other dedicated 

11 funding sources; 

12 (3) to complement existing Federal funding 

13 sources and address budgetary constraints on Bu14 reau of Reclamation programs; and 

15 (4) to leverage private investment in water re16 sources infrastructure. 

17 SEC. 212. AUTHORITY TO PROVIDE ASSISTANCE. 

18 (a) IN GENERAL.—The Secretary may provide finan19 cial assistance under this subtitle to carry out projects 

20 within— 

21 (1) any Reclamation State; 

22 (2) any other State in which the Bureau of 

23 Reclamation is authorized to provide project assist24 ance; and 

25 (3) the States of Alaska and Hawaii. 


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1 (b) SELECTION.—In selecting projects to receive fi2 nancial assistance under subsection (a), the Secretary 

3 shall ensure diversity with respect to— 

4 (1) project types; and 

5 (2) geographical locations. 

6 SEC. 213. APPLICATIONS. 

7 To be eligible to receive assistance under this subtitle, 

8 an eligible entity shall submit to the Secretary an applica9 tion at such time, in such manner, and containing such 

10 information as the Secretary may require. 

11 SEC. 214. ELIGIBILITY FOR ASSISTANCE. 

12 (a) ELIGIBLE PROJECTS.—The following projects 

13 may be carried out using assistance made available under 

14 this subtitle: 

15 (1) A project for the reclamation and reuse of 

16 municipal, industrial, domestic, and agricultural 

17 wastewater, and naturally impaired ground and sur18 face waters, which the Secretary, acting through the 

19 Commissioner of Reclamation, is authorized to un20 dertake. 

21 (2) Any water infrastructure project not specifi22 cally authorized by law that— 

23 (A) the Secretary determines, through the 

24 completion of an appraisal investigation and 

25 feasibility study, would contribute to a safe, 


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1 adequate water supply for domestic, agricul2 tural, environmental, or municipal and indus3 trial use; and 

4 (B) is otherwise eligible for assistance 

5 under this title. 

6 (3) A new water infrastructure facility project, 

7 including a water conduit, pipeline, canal, pumping, 

8 power, and associated facilities. 

9 (4) A project for enhanced energy efficiency in 

10 the operation of a water system. 

11 (5) A project for accelerated repair and replace12 ment of an aging water distribution facility. 

13 (6) A brackish or sea water desalination 

14 project. 

15 (7) Acquisition of real property or an interest 

16 in real property for water storage, reclaimed or recy17 cled water, or wastewater, if the acquisition is inte18 gral to a project described in paragraphs (1) 

19 through (6). 

20 (8) A combination of projects, each of which is 

21 eligible under paragraphs (1) through (7), for which 

22 an eligible entity submits a single application. 

23 (b) ACTIVITIES ELIGIBLE FOR ASSISTANCE.—For 

24 purposes of this subtitle, an eligible activity with respect 


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1 to an eligible project under subsection (a) includes the cost 

2 of— 

3 (1) development-phase activities, including plan4 ning, feasibility analysis, revenue forecasting, envi5 ronmental review, permitting, transaction costs, pre6 liminary engineering and design work, and other 

7 preconstruction activities; 

8 (2) construction, reconstruction, rehabilitation, 

9 and replacement activities; 

10 (3) the acquisition of real property (including 

11 water rights, land relating to the project, and im12 provements to land), environmental mitigation, con13 struction contingencies, and acquisition of equip14 ment; 

15 (4) capitalized interest necessary to meet mar16 ket requirements, reasonably required reserve funds, 

17 capital issuance expenses, and other carrying costs 

18 during construction; 

19 (5) refinancing interim construction funding, 

20 long-term project obligations, or a secured loan, loan 

21 guarantee, or other credit enhancement made under 

22 this subtitle; 

23 (6) reimbursement or success payments to any 

24 public or private entity that achieves predetermined 


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1 outcomes on a pay-for-performance or pay-for-suc2 cess basis; and 

3 (7) grants, loans, or credit enhancement for 

4 community development financial institutions, green 

5 banks, and other financial intermediaries providing 

6 ongoing finance for projects that meet the purposes 

7 of this subtitle. 

8 SEC. 215. DETERMINATION OF ELIGIBILITY AND PROJECT 

9 SELECTION. 

10 (a) ELIGIBILITY REQUIREMENTS.—To be eligible to 

11 receive financial assistance under this subtitle, a project 

12 shall meet the following criteria, as determined by the Sec13 retary: 

14 (1) CREDITWORTHINESS.— 

15 (A) IN GENERAL.—Subject to subpara16 graph (B), the project shall be creditworthy, as 

17 determined by the Secretary, who shall ensure 

18 that any financing for the project has appro19 priate security features, such as a rate cov20 enant, to ensure repayment. 

21 (B) PRELIMINARY RATING OPINION LET22 TER.—The Secretary shall require each appli23 cant to provide a preliminary rating opinion let24 ter from at least 1 rating agency indicating that 

25 the senior obligations of the project (which may 


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1 be the Federal credit instrument) have the po2 tential to achieve an investment-grade rating. 

3 (2) ELIGIBLE PROJECT COSTS.—The eligible 

4 project costs of a project and other projects in a wa5 tershed shall be reasonably anticipated to be not less 

6 than $10,000,000. 

7 (3) DEDICATED REVENUE SOURCES.—The Fed8 eral credit instrument for the project shall be repay9 able, in whole or in part, from dedicated revenue 

10 sources that also secure the project obligations. 

11 (4) PUBLIC SPONSORSHIP OF PRIVATE ENTI12 TIES.—In the case of a project carried out by an en13 tity that is not a State or local government or an 

14 agency or instrumentality of a State or local govern15 ment, the project shall be publicly sponsored. 

16 (b) SELECTION CRITERIA.— 

17 (1) ESTABLISHMENT.—The Secretary shall es18 tablish criteria for the selection of projects that meet 

19 the eligibility requirements of subsection (a), in ac20 cordance with paragraph (2). 

21 (2) CRITERIA.—The selection criteria shall in22 clude the following: 

23 (A) The extent to which the project is na24 tionally or regionally significant. 


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1 (B) The extent to which assistance under 

2 this section would foster innovative public-pri3 vate partnerships and attract private debt or 

4 equity investment. 

5 (C) The likelihood that assistance under 

6 this section would enable the project to proceed 

7 at an earlier date than the project would other8 wise be able to proceed. 

9 (D) The extent to which the project uses 

10 new or innovative approaches. 

11 (E) The extent to which projects track evi12 dence about the effectiveness of the 1 or more 

13 projects financed and the availability of the evi14 dence and project information to the public to 

15 facilitate replication. 

16 (F) The amount of budget authority re17 quired to fund the Federal credit instrument 

18 made available under this subtitle. 

19 (G) The extent to which the project helps 

20 maintain or protect the environment. 

21 (H) The extent to which the project sup22 ports the local economy and provides local jobs. 

23 (c) RECEIPT OF OTHER FEDERAL FUNDING.—Re24 ceipt of a Federal grant or contract or other Federal fund25 ing to support an eligible project shall not preclude the 


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1 project from being eligible for assistance under this sub2 title. 

3 (d) FEDERAL REQUIREMENTS.— 

4 (1) EFFECT OF SECTION.—Nothing in this sec5 tion supersedes the applicability of other require6 ments of Federal law (including regulations). 

7 (2) NEPA.—A Federal action carried out re8 garding a loan or loan guarantee provided under this 

9 subtitle shall not be considered to be a Federal ac10 tion for purposes of the National Environmental 

11 Policy Act of 1969 (42 U.S.C. 4321 et seq.). 

12 SEC. 216. SECURED LOANS. 

13 (a) AGREEMENTS.— 

14 (1) IN GENERAL.—Subject to paragraphs (2) 

15 through (4), the Secretary may enter into agree16 ments with 1 or more obligors to make secured 

17 loans, the proceeds of which shall be used— 

18 (A) to finance eligible project costs of any 

19 project selected under section 206; 

20 (B) to refinance interim construction fi21 nancing of eligible project costs of any project 

22 selected under section 206; or 

23 (C) to refinance long-term project obliga24 tions or Federal credit instruments, if that refi25 nancing provides additional funding capacity for 


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1 the completion, enhancement, or expansion of 

2 any project that— 

3 (i) is selected under section 206; or 

4 (ii) otherwise meets the requirements 

5 of section 206. 

6 (2) LIMITATION ON REFINANCING OF INTERIM

7 CONSTRUCTION FINANCING.—A secured loan under 

8 paragraph (1) shall not be used to refinance interim 

9 construction financing under paragraph (1)(B) later 

10 than 1 year after the date of substantial completion 

11 of the applicable project. 

12 (3) RISK ASSESSMENT.—Before entering into 

13 an agreement under this subsection for a secured 

14 loan, the Secretary, in consultation with the Director 

15 of the Office of Management and Budget and each 

16 rating agency providing a preliminary rating opinion 

17 letter under section 206(a)(1)(B), shall determine an 

18 appropriate capital reserve subsidy amount for the 

19 secured loan, taking into account each such prelimi20 nary rating opinion letter. 

21 (4) INVESTMENT-GRADE RATING REQUIRE22 MENT.—The execution of a secured loan under this 

23 section shall be contingent on receipt by the senior 

24 obligations of the project of an investment-grade rat25 ing. 


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1 (b) TERMS AND LIMITATIONS.— 

2 (1) IN GENERAL.—A secured loan provided for 

3 a project under this section shall be subject to such 

4 terms and conditions, and contain such covenants, 

5 representations, warranties, and requirements (in6 cluding requirements for audits), as the Secretary 

7 determines to be appropriate. 

8 (2) MAXIMUM AMOUNT.—The amount of a se9 cured loan under this section shall not exceed the 

10 lesser of— 

11 (A) an amount equal to 100 percent of the 

12 reasonably anticipated eligible project costs; and 

13 (B) if the secured loan does not receive an 

14 investment-grade rating, the amount of the sen15 ior project obligations of the project. 

16 (3) PAYMENT.—A secured loan under this sec17 tion— 

18 (A) shall be payable, in whole or in part, 

19 from State or local taxes, user fees, or other 

20 dedicated revenue sources that also secure the 

21 senior project obligations of the relevant 

22 project; 

23 (B) shall include a rate covenant, coverage 

24 requirement, or similar security feature sup25 porting the project obligations; and 


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1 (C) may have a lien on revenues described 

2 in subparagraph (A), subject to any lien secur3 ing project obligations. 

4 (4) INTEREST RATE.—The interest rate on a 

5 secured loan under this section shall be not more 

6 than the yield on United States Treasury securities 

7 of a similar maturity to the maturity of the secured 

8 loan on the date of execution of the loan agreement, 

9 as determined by the Secretary. 

10 (5) MATURITY DATE.—The final maturity date 

11 of a secured loan under this section shall be not 

12 later than 35 years after the date of substantial 

13 completion of the relevant project. 

14 (6) NONSUBORDINATION.—A secured loan 

15 under this section shall not be subordinated to the 

16 claims of any holder of project obligations in the 

17 event of bankruptcy, insolvency, or liquidation of the 

18 obligor of the project. 

19 (7) FEES.—The Secretary may establish fees at 

20 a level sufficient to cover all or a portion of the costs 

21 to the Federal Government of making a secured loan 

22 under this section. 

23 (8) NON-FEDERAL SHARE.—The proceeds of a 

24 secured loan under this section may be used to pay 


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1 any non-Federal share of project costs required if 

2 the loan is repayable from non-Federal funds. 

3 (c) REPAYMENT.— 

4 (1) SCHEDULE.—The Secretary shall establish 

5 a repayment schedule for each secured loan provided 

6 under this section, based on the projected cash flow 

7 from project revenues and other repayment sources. 

8 (2) COMMENCEMENT.—Scheduled loan repay9 ment of principal or interest on a secured loan under 

10 this section shall commence not later than 5 years 

11 after the date of substantial completion of the 

12 project. 

13 (3) DEFERRED PAYMENTS.— 

14 (A) AUTHORIZATION.—If, at any time 

15 after the date of substantial completion of a 

16 project for which a secured loan is provided 

17 under this section, the project is unable to gen18 erate sufficient revenues to pay the scheduled 

19 loan repayments of principal and interest on the 

20 secured loan, the Secretary may allow the obli21 gor, subject to subparagraph (C), to add unpaid 

22 principal and interest to the outstanding bal23 ance of the secured loan. 

24 (B) INTEREST.—Any payment deferred 

25 under subparagraph (A) shall— 


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1 (i) continue to accrue interest in ac2 cordance with subsection (b)(4) until fully 

3 repaid; and 

4 (ii) be scheduled to be amortized over 

5 the remaining term of the secured loan. 

6 (C) CRITERIA.— 

7 (i) IN GENERAL.—Any payment defer8 ral under subparagraph (A) shall be con9 tingent on the project meeting such cri10 teria as the Secretary may establish. 

11 (ii) REPAYMENT STANDARDS.—The 

12 criteria established under clause (i) shall 

13 include standards for reasonable assurance 

14 of repayment. 

15 (4) PREPAYMENT.— 

16 (A) USE OF EXCESS REVENUES.—Any ex17 cess revenues that remain after satisfying 

18 scheduled debt service requirements on the 

19 project obligations and secured loan and all de20 posit requirements under the terms of any trust 

21 agreement, bond resolution, or similar agree22 ment securing project obligations may be ap23 plied annually to prepay a secured loan under 

24 this section without penalty. 


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1 (B) USE OF PROCEEDS OF REFI2 NANCING.—A secured loan under this section 

3 may be prepaid at any time without penalty 

4 from the proceeds of refinancing from non-Fed5 eral funding sources. 

6 (d) SALE OF SECURED LOANS.— 

7 (1) IN GENERAL.—Subject to paragraph (2), as 

8 soon as practicable after the date of substantial 

9 completion of a project and after providing a notice 

10 to the obligor, the Secretary may sell to another en11 tity or reoffer into the capital markets a secured 

12 loan for a project under this section, if the Secretary 

13 determines that the sale or reoffering can be made 

14 on favorable terms. 

15 (2) CONSENT OF OBLIGOR.—In making a sale 

16 or reoffering under paragraph (1), the Secretary 

17 may not change the original terms and conditions of 

18 the secured loan without the written consent of the 

19 obligor. 

20 (e) LOAN GUARANTEES.— 

21 (1) IN GENERAL.—The Secretary may provide a 

22 loan guarantee to a lender in lieu of making a se23 cured loan under this section, if the Secretary deter24 mines that the budgetary cost of the loan guarantee 

25 is substantially the same as that of a secured loan. 


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1 (2) TERMS.—The terms of a loan guarantee 

2 provided under this subsection shall be consistent 

3 with the terms established in this section for a se4 cured loan, except that the rate on the guaranteed 

5 loan and any prepayment features shall be nego6 tiated between the obligor and the lender, with the 

7 consent of the Secretary. 

8 SEC. 217. PROGRAM ADMINISTRATION. 

9 (a) REQUIREMENT.—The Secretary shall establish a 

10 uniform system to service the Federal credit instruments 

11 made available under this subtitle. 

12 (b) FEES.—The Secretary may collect and spend 

13 fees, contingent on authority being provided in appropria14 tions Acts, at a level that is sufficient to cover— 

15 (1) the costs of services of expert firms retained 

16 pursuant to subsection (d); and 

17 (2) all or a portion of the costs to the Federal 

18 Government of servicing the Federal credit instru19 ments provided under this subtitle. 

20 (c) SERVICER.— 

21 (1) IN GENERAL.—The Secretary may appoint 

22 a financial entity to assist the Secretary in servicing 

23 the Federal credit instruments provided under this 

24 subtitle. 


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1 (2) DUTIES.—A servicer appointed under para2 graph (1) shall act as the agent for the Secretary. 

3 (3) FEE.—A servicer appointed under para4 graph (1) shall receive a servicing fee, subject to ap5 proval by the Secretary. 

6 (d) ASSISTANCE FROM EXPERTS.—The Secretary 

7 may retain the services, including counsel, of any organi8 zation or entity with expertise in the field of municipal 

9 and project finance to assist in the underwriting and serv10 icing of Federal credit instruments provided under this 

11 subtitle. 

12 (e) LOAN COORDINATION; INTERAGENCY COOPERA13 TION.—The Secretary— 

14 (1) shall coordinate implementation of loan 

15 guarantees under this section with the Administrator 

16 to avoid duplication and enhance the effectiveness of 

17 implementation of the State revolving funds estab18 lished under the Federal Water Pollution Control 

19 Act (33 U.S.C. 1251 et seq.) and the Safe Drinking 

20 Water Act (42 U.S.C. 300f et seq.); 

21 (2) shall consult with the Secretary of Agri22 culture before promulgating criteria with respect to 

23 financial appraisal functions and loan guarantee ad24 ministration for activities carried out under this sub25 title; and 


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1 (3) may enter into a memorandum of agree2 ment providing for Department of Agriculture finan3 cial appraisal functions and loan guarantee adminis4 tration for activities carried out under this subtitle. 

5 SEC. 218. STATE AND LOCAL PERMITS. 

6 The provision of financial assistance for a project 

7 under this subtitle shall not— 

8 (1) relieve any recipient of the assistance of any 

9 obligation to obtain any required State or local per10 mit or approval with respect to the project; 

11 (2) limit the right of any unit of State or local 

12 government to approve or regulate any rate of re13 turn on private equity invested in the project; or 

14 (3) otherwise supersede any State or local law 

15 (including any regulation) applicable to the construc16 tion or operation of the project. 

17 SEC. 219. REGULATIONS. 

18 The Secretary may promulgate such regulations as 

19 the Secretary determines to be appropriate to carry out 

20 this subtitle. 

21 SEC. 220. FUNDING. 

22 (a) IN GENERAL.—There is authorized to be appro23 priated to the Secretary to carry out this subtitle 

24 $100,000,000 for each of fiscal years 2015 through 2019, 

25 to remain available until expended. 


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1 (b) ADMINISTRATIVE COSTS.—Of the funds made 

2 available to carry out this subtitle, the Secretary may use 

3 for the administration of this subtitle not more than 

4 $2,200,000 for each of fiscal years 2015 through 2019. 

5 SEC. 221. REPORT TO CONGRESS. 

6 Not later than 2 years after the date of enactment 

7 of this Act, and every 2 years thereafter, the Secretary 

8 shall submit to the Committee on Energy and Natural Re9 sources of the Senate and the Committee on Natural Re10 sources of the House of Representatives a report summa11 rizing the financial performance and on-the-ground out12 comes of the projects that are receiving, or have received, 

13 assistance under this subtitle, including an assessment of 

14 whether the objectives of this subtitle are being met. 

15 Subtitle B—Integrated Regional 

16 Water Management, Reclama17 tion, and Recycling Projects 

18 SEC. 231. WATER STORAGE PROJECTS. 

19 (a) AGREEMENTS.—The Secretary may enter into a 

20 cost-shared financial assistance agreement with any non21 Federal entity in a Reclamation State or the State of Ha22 waii to carry out the planning, design, and construction 

23 of any permanent water storage and conveyance facility 

24 used solely to regulate and maximize the water supply 


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1 arising from a project that is eligible for assistance under 

2 this title or any other provision of law— 

3 (1) to recycle wastewater, impaired surface 

4 water, and ground water; or 

5 (2) to use integrated and coordinated water 

6 management on a watershed or regional scale. 

7 (b) FINANCIAL ASSISTANCE.—In providing financial 

8 assistance under this section, the Secretary shall give pri9 ority to storage and conveyance components that— 

10 (1) ensure the efficient and beneficial use of 

11 water or reuse of the recycled water; 

12 (2) make maximum use of natural systems; 

13 (3) consistent with Secretarial Order No. 3297, 

14 dated February 22, 2010, support sustainable water 

15 management practices and the water sustainability 

16 objectives of 1 or more offices of the Department of 

17 the Interior or any other Federal agency; 

18 (4)(A) increase the availability of usable water 

19 supplies in a watershed or region to benefit people, 

20 the economy, and the environment; and 

21 (B) include adaptive measures needed to ad22 dress climate change and future demands; 

23 (5) where practicable— 

24 (A) provide flood control or recreation ben25 efits; and 


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1 (B) include the development of incremental 

2 hydroelectric power generation; 

3 (6) include partnerships that go beyond political 

4 and institutional jurisdictions to support the effi5 cient use of the limited water resources of the 

6 United States and the applicable region; 

7 (7) generate environmental benefits, such as 

8 benefits to fisheries, wildlife and habitat, and water 

9 quality and water-dependent ecological systems, as 

10 well as water supply benefits to agricultural and 

11 urban water users; and 

12 (8) the financing of which leverages private and 

13 other non-Federal resources. 

14 (c) FEDERAL SHARE.—The Federal share of the cost 

15 of a project carried out under subsection (a) shall be— 

16 (1) equal to the lesser of— 

17 (A) 50 percent of total cost of the project; 

18 and 

19 (B) $15,000,000, adjusted for inflation; 

20 and 

21 (2) nonreimbursable. 

22 (d) NON-FEDERAL SHARE.—The non-Federal share 

23 of the cost of a project carried out under subsection (a) 

24 may include in-kind contributions to the planning, design, 

25 and construction of a project. 


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1 (e) TITLE AND COSTS.—A non-Federal entity enter2 ing into a financial assistance agreement under this sec3 tion shall— 

4 (1) hold title to all facilities constructed under 

5 this section; and 

6 (2) be solely responsible for the costs of oper7 ating and maintaining those facilities. 

8 SEC. 232. AUTHORIZATION OF APPROPRIATIONS. 

9 There is authorized to be appropriated $700,000,000 

10 to carry out this subtitle. 

11 Subtitle C—Title Transfers 

12 SEC. 241. AUTHORIZATION TO TRANSFER TITLE. 

13 The Secretary may transfer to any non-Federal oper14 ating entity title to any Reclamation project or facility, 

15 or any separable element of such a project or facility, that 

16 is authorized before the date of enactment of this Act, if— 

17 (1) all previous Federal construction contract 

18 obligations or other related repayment contracts or 

19 agreements associated with the project have been 

20 paid out by a non-Federal project beneficiary; 

21 (2)(A) a project facility or separable element of 

22 such a facility is in need of rehabilitation or im23 provement, as determined by the Secretary; and 

24 (B) the non-Federal operating entity is other25 wise eligible for a loan guarantee under this title; 


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1 (3) the title transfer meets all applicable Fed2 eral laws and regulations, as determined by the Sec3 retary; and 

4 (4)(A) the Secretary notifies each congressional 

5 committee of jurisdiction of the transfer by not later 

6 than 60 days before the date of the transfer; and 

7 (B) no objection to the transfer is raised by any 

8 such committee. 

9 TITLE III—INNOVATION 

10 THROUGH RESEARCH, DATA, 

11 AND TECHNOLOGY 

12 SEC. 301. OPEN WATER DATA SYSTEM. 

13 (a) DEFINITIONS.—In this section: 

14 (1) EDUCATIONAL INSTITUTION.—The term 

15 ‘‘educational institution’’ means— 

16 (A) a public or private elementary or sec17 ondary school; 

18 (B) an institution of vocational, profes19 sional, or higher education (including a junior 

20 college or teachers’ college); and 

21 (C) an association of schools or institutions 

22 described in subparagraphs (A) and (B). 

23 (2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

24 has the meaning given that term in section 4 of the 


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1 Indian Self-Determination and Education Assistance 

2 Act (25 U.S.C. 450b). 

3 (3) SECRETARY.—The term ‘‘Secretary’’ means 

4 the Secretary of the Interior, acting through the Di5 rector of the United States Geological Survey. 

6 (4) STATE.—The term ‘‘State’’ means— 

7 (A) a State; 

8 (B) the District of Columbia; 

9 (C) the Commonwealth of Puerto Rico; 

10 and 

11 (D) any other territory or possession of the 

12 United States. 

13 (5) SYSTEM.—The term ‘‘system’’ means the 

14 open water data system established under subsection 

15 (b). 

16 (b) SYSTEM.—The Secretary shall establish and 

17 maintain an open water data system within the United 

18 States Geological Survey to advance the availability, time19 ly distribution, and widespread use of water data and in20 formation for water management, education, research, as21 sessment, and monitoring purposes. 

22 (c) PURPOSES.—The purposes of the system are— 

23 (1) to advance the quantification of the avail24 ability, use of, and risks to, water resources through25 out the United States; 


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1 (2) to increase accessibility to, and expand the 

2 use of, water data and information in a standard, 

3 easy-to-use format by Federal, State, local, and trib4 al governments, communities, educational institu5 tions, and the private sector; and 

6 (3) to facilitate the open exchange of water in7 formation particularly in the face of climate change 

8 and unprecedented drought. 

9 (d) ACTIVITIES.—In carrying out this section, the 

10 Secretary shall— 

11 (1) integrate water data and information into a 

12 interoperable, national, geospatially referenced water 

13 data framework; 

14 (2) identify new water data and information 

15 needs, including data on surface and groundwater 

16 quality and quantity, sediment, erosion, transport, 

17 water chemistry, precipitation, reservoir storage, 

18 water cycle, landscape variables, hydrography, cli19 mate and weather impacts, soil moisture, and human 

20 use; 

21 (3) leverage existing shared databases, infra22 structure, and tools to provide a platform for water 

23 data and information innovation, modeling and data 

24 sharing, and solution development; 


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1 (4) support water data and information shar2 ing, applied research, and educational programs of 

3 State, local, and tribal governments, communities, 

4 educational institutions, and the private sector; and 

5 (5) promote cooperation and sharing of exper6 tise regarding water data and information among 

7 State, local, and tribal governments, communities, 

8 educational institutions, and the private sector. 

9 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

10 are authorized to be appropriated to carry out this section 

11 such sums as are necessary. 

12 SEC. 302. WATER RESOURCES RESEARCH ACT AMEND13 MENTS. 

14 (a) CONGRESSIONAL FINDINGS AND DECLARA15 TIONS.—Section 102 of the Water Resources Research 

16 Act of 1984 (42 U.S.C. 10301) is amended— 

17 (1) by redesignating paragraphs (7) through 

18 (9) as paragraphs (8) through (10), respectively; 

19 (2) in paragraph (8) (as so redesignated), by 

20 striking ‘‘and’’ at the end; and 

21 (3) by inserting after paragraph (6) the fol22 lowing: 

23 ‘‘(7) additional research is required to increase 

24 the effectiveness and efficiency of new and existing 


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1 treatment works through alternative approaches, in2 cluding— 

3 ‘‘(A) nonstructural alternatives; 

4 ‘‘(B) decentralized approaches; 

5 ‘‘(C) water use efficiency and conservation; 

6 and 

7 ‘‘(D) actions to reduce energy consumption 

8 or extract energy from wastewater;’’. 

9 (b) WATER RESOURCES RESEARCH AND TECH10 NOLOGY INSTITUTES.—Section 104 of the Water Re11 sources Research Act of 1984 (42 U.S.C. 10303) is 

12 amended— 

13 (1) in subsection (b)(1)— 

14 (A) in subparagraph (B)(ii), by striking 

15 ‘‘water-related phenomena’’ and inserting 

16 ‘‘water resources’’; and 

17 (B) in subparagraph (D), by striking the 

18 period at the end and inserting ‘‘; and’’; 

19 (2) in subsection (c)— 

20 (A) by striking ‘‘From the’’ and inserting 

21 ‘‘(1) IN GENERAL.—From the’’; and 

22 (B) by adding at the end the following: 

23 ‘‘(2) REPORT.—Not later than December 31 of 

24 each fiscal year, the Secretary shall submit to the 

25 Committee on Environment and Public Works of the 


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1 Senate, the Committee on the Budget of the Senate, 

2 the Committee on Transportation and Infrastructure 

3 of the House of Representatives, and the Committee 

4 on the Budget of the House of Representatives a re5 port regarding the compliance of each funding re6 cipient with this subsection for the immediately pre7 ceding fiscal year.’’; 

8 (3) by striking subsection (e) and inserting the 

9 following: 

10 ‘‘(e) EVALUATION OF WATER RESOURCES RESEARCH

11 PROGRAM.— 

12 ‘‘(1) IN GENERAL.—The Secretary shall con13 duct a careful and detailed evaluation of each insti14 tute at least once every 3 years to determine— 

15 ‘‘(A) the quality and relevance of the water 

16 resources research of the institute; 

17 ‘‘(B) the effectiveness of the institute at 

18 producing measured results and applied water 

19 supply research; and 

20 ‘‘(C) whether the effectiveness of the insti21 tute as an institution for planning, conducting, 

22 and arranging for research warrants continued 

23 support under this section. 

24 ‘‘(2) PROHIBITION ON FURTHER SUPPORT.—If, 

25 as a result of an evaluation under paragraph (1), the 


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1 Secretary determines that an institute does not qual2 ify for further support under this section, no further 

3 grants to the institute may be provided until the 

4 qualifications of the institute are reestablished to the 

5 satisfaction of the Secretary.’’; 

6 (4) in subsection (f)(1), by striking 

7 ‘‘$12,000,000 for each of fiscal years 2007 through 

8 2011’’ and inserting ‘‘$7,500,000 for each of fiscal 

9 years 2015 through 2020’’; and 

10 (5) in subsection (g)(1), in the first sentence, 

11 by striking ‘‘$6,000,000 for each of fiscal years 

12 2007 through 2011’’ and inserting ‘‘$1,500,000 for 

13 each of fiscal years 2015 through 2020’’. 

14 SEC. 303. REAUTHORIZATION OF WATER DESALINATION 

15 ACT OF 1996. 

16 Section 8 of the Water Desalination Act of 1996 (42 

17 U.S.C. 10301 note; Public Law 104–298) is amended— 

18 (1) in the first sentence of subsection (a)— 

19 (A) by striking ‘‘$5,000,000’’ and inserting 

20 ‘‘$8,000,000’’; and 

21 (B) by striking ‘‘2013’’ and inserting 

22 ‘‘2020’’; and 

23 (2) in subsection (b), by striking ‘‘for each of 

24 fiscal years 2012 through 2013’’ and inserting ‘‘for 

25 each of fiscal years 2015 through 2020’’. 


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1 SEC. 304. REVIEW OF RESERVOIR OPERATIONS. 

2 (a) IN GENERAL.—Not later than 1 year after receiv3 ing a request of a non-Federal sponsor of a reservoir, the 

4 Secretary of the Army, in consultation with the Adminis5 trator of the National Oceanic and Atmospheric Adminis6 tration, shall review the operation of the reservoir, includ7 ing the water control manual and rule curves, using im8 proved weather forecasts and run-off forecasting methods, 

9 including the Advanced Hydrologic Prediction System of 

10 the National Weather Service and the Hydrometeorology 

11 Testbed program of the National Oceanic and Atmos12 pheric Administration. 

13 (b) DESCRIPTION OF BENEFITS.—In conducting the 

14 review under subsection (a), the Secretary of the Army 

15 shall determine if a change in operations, including the 

16 use of improved weather forecasts and run-off forecasting 

17 methods, will improve 1 or more of the core functions of 

18 the Corps of Engineers, including— 

19 (1) reducing risks to human life, public safety, 

20 and property; 

21 (2) reducing the need for future disaster relief; 

22 (3) improving local water storage capability and 

23 reliability in coordination with the non-Federal spon24 sor and other water users; 


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1 (4) restoring, protecting, or mitigating the im2 pacts of a water resources development project on 

3 the environment; and 

4 (5) improving fish species habitat or population 

5 within the boundaries and downstream of a water 

6 resources project. 

7 (c) RESULTS REPORTED.—Not later than 90 days 

8 after completion of a review under this section, the Sec9 retary shall submit a report to Congress regarding the re10 sults of the review. 

11 (d) MANUAL UPDATE.—As soon as practicable, but 

12 not later than 3 years after the date on which a report 

13 under subsection (c) is submitted to Congress, pursuant 

14 to the procedures required under existing authorities, if 

15 the Secretary of the Army determines based on that report 

16 that using improved weather and run-off forecasting meth17 ods improves 1 or more core functions of the Corps of 

18 Engineers at a reservoir, the Secretary of the Army 

19 shall— 

20 (1) incorporate those methods in the operation 

21 of the reservoir; and 

22 (2) update the water control manual. 


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1 TITLE IV—DROUGHT PREPARED2 NESS AND RESILIENCE 

3 SEC. 401. NATIONAL DROUGHT RESILIENCE GUIDELINES. 

4 (a) IN GENERAL.—The Administrator, in conjunction 

5 with the Secretary of the Interior, the Secretary of Agri6 culture, the Director of the National Oceanic and Atmos7 pheric Administration, and other appropriate Federal 

8 agency heads along with State and local governments, 

9 shall develop nonregulatory national drought resilience 

10 guidelines relating to drought preparedness planning and 

11 investments for communities, water utilities, and other 

12 water users and providers. 

13 (b) CONSULTATION.—In developing the national 

14 drought resilience guidelines, the Administrator and other 

15 Federal agency heads referred to in subsection (a) shall 

16 consult with— 

17 (1) State and local governments; 

18 (2) water utilities; 

19 (3) scientists; 

20 (4) institutions of higher education; 

21 (5) relevant private entities; and 

22 (6) other stakeholders. 

23 (c) CONTENTS.—The national drought resilience 

24 guidelines developed under this section shall, to the maxVerDate Sep 11 2014 00:41 Jan 24, 2015 Jkt 049200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6201 E:\BILLS\H291.IH H291

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1 imum extent practicable, provide recommendations for a 

2 period of 10 years that— 

3 (1) address a broad range of potential actions, 

4 including— 

5 (A) analysis of the impacts of climate 

6 change and drought on the future effectiveness 

7 of water management tools; 

8 (B) the identification of drought-related 

9 water management challenges in a broad range 

10 of fields, including— 

11 (i) public health and safety; 

12 (ii) municipal and industrial water 

13 supply; 

14 (iii) agricultural water supply; 

15 (iv) water quality; 

16 (v) ecosystem health; and 

17 (vi) water supply planning; 

18 (C) water management tools to reduce 

19 drought-related impacts, including— 

20 (i) water use efficiency through gal21 lons per capita reduction goals, appliance 

22 efficiency standards, water pricing incen23 tives, and other measures; 

24 (ii) water recycling; 


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1 (iii) groundwater clean-up and stor2 age; 

3 (iv) new technologies, such as behav4 ioral water efficiency; and 

5 (v) stormwater capture and reuse; 

6 (D) water-related energy and greenhouse 

7 gas reduction strategies; and 

8 (E) public education and engagement; and 

9 (2) include recommendations relating to the 

10 processes that Federal, State, and local governments 

11 and water utilities should consider when developing 

12 drought resilience preparedness and plans, includ13 ing— 

14 (A) the establishment of planning goals; 

15 (B) the evaluation of institutional capacity; 

16 (C) the assessment of drought-related risks 

17 and vulnerabilities, including the integration of 

18 climate-related impacts; 

19 (D) the establishment of a development 

20 process, including an evaluation of the cost-ef21 fectiveness of potential strategies; 

22 (E) the inclusion of private entities, tech23 nical advisors, and other stakeholders in the de24 velopment process; 


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1 (F) implementation and financing issues; 

2 and 

3 (G) evaluation of the plan, including any 

4 updates to the plan. 

5 SEC. 402. DROUGHT PREPAREDNESS FOR FISHERIES. 

6 (a) DEFINITIONS.—In this section: 

7 (1) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

8 has the meaning given the term in section 4 of the 

9 Indian Self-Determination and Education Assistance 

10 Act (25 U.S.C. 450b). 

11 (2) QUALIFIED TRIBAL GOVERNMENT.—The 

12 term ‘‘qualified tribal government’’ means a govern13 mental body of an Indian tribe that the Secretary of 

14 the Interior determines— 

15 (A) is involved in salmon management and 

16 recovery activities under the Endangered Spe17 cies Act of 1973 (16 U.S.C. 1531 et seq.); and 

18 (B) has the management and organiza19 tional capability to maximize the benefits of as20 sistance provided under this section. 

21 (b) SALMON DROUGHT PLAN.— 

22 (1) IN GENERAL.—Not later than January 1, 

23 2016, the Director of the United States Fish and 

24 Wildlife Service shall, in consultation with the Direc25 tor of the National Marine Fisheries Service, the 


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1 Commissioner of Reclamation, the Chief of Engi2 neers, and the head of the California Department of 

3 Fish and Wildlife, prepare a salmon drought plan 

4 for the State of California. 

5 (2) CONTENTS.—The plan developed under 

6 paragraph (1) shall— 

7 (A) contribute— 

8 (i) to the recovery of populations list9 ed as threatened or endangered under the 

10 Endangered Species Act of 1973 (16 

11 U.S.C. 1531 et seq.); and 

12 (ii) to the goals of the Central Valley 

13 Project Improvement Act (title XXXIV of 

14 Public Law 102–575; 106 Stat. 4706); and 

15 (B) include options to protect salmon pop16 ulations originating in the State of California, 

17 with a particular focus on actions that can be 

18 taken to aid salmon populations in the State of 

19 California during the driest 12 years, such as— 

20 (i) relocating the release location and 

21 timing of hatchery fish to avoid predation 

22 and temperature impacts; 

23 (ii) barging fish to improve survival 

24 and reduce straying; 


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1 (iii) coordinating with water users, the 

2 Commissioner of Reclamation, and the 

3 head of the California Department of 

4 Water Resources regarding voluntary 

5 water transfers to determine if water re6 leased upstream to meet the needs of 

7 downstream or South-of-Delta water users 

8 can be managed in a way that provides ad9 ditional benefits for salmon; 

10 (iv) hatchery management modifica11 tions, such as expanding hatchery produc12 tion during the driest years of fish listed 

13 as endangered or threatened under the En14 dangered Species Act of 1973 (16 U.S.C. 

15 1531 et seq.), if appropriate; and 

16 (v) increasing rescue operations of up17 stream migrating fish. 

18 (c) FUNDING.— 

19 (1) IN GENERAL.—Out of any funds in the 

20 Treasury not otherwise appropriated, the Secretary 

21 of the Treasury shall transfer to the Director of the 

22 United States Fish and Wildlife Service to carry out 

23 this section $3,000,000, to remain available until ex24 pended, for urgent fish, stream, and hatchery activi25 ties relating to extreme drought conditions, including 


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1 work carried out in conjunction with the Director of 

2 the National Marine Fisheries Service, the Commis3 sioner of Reclamation, the Chief of Engineers, the 

4 head of the California Department of Fish and 

5 Wildlife, or a qualified tribal government. 

6 (2) RECEIPT AND ACCEPTANCE.—The Director 

7 of the United States Fish and Wildlife Service shall 

8 be entitled to receive, shall accept, and shall use to 

9 carry out this section the funds transferred under 

10 paragraph (1), without further appropriation. 

Æ 


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