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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4902 Introduced in House (IH)]

<DOC>

118th CONGRESS
  1st Session
                                H. R. 4902

   To amend the Food Security Act of 1985 to establish a groundwater 
         conservation easement program, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 26, 2023

  Ms. Caraveo (for herself and Mr. LaTurner) introduced the following 
        bill; which was referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL

 
   To amend the Food Security Act of 1985 to establish a groundwater 
         conservation easement program, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Voluntary Groundwater Conservation 
Act of 2023''.

SEC. 2. GROUNDWATER CONSERVATION EASEMENT PROGRAM.

    (a) Agricultural Conservation Easement Program Purposes.--Section 
1265(b) of the Food Security Act of 1985 (16 U.S.C. 3865(b)) is 
amended--
            (1) in paragraph (3), by striking ``and'' at the end;
            (2) in paragraph (4), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(5) facilitate reductions in groundwater consumption to 
        support local, regional, or State groundwater management.''.
    (b) Establishment.--Subtitle H of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3865 et seq.) is amended by adding at the end 
the following:

``SEC. 1265E. GROUNDWATER CONSERVATION EASEMENT PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Eligible entity.--The term `eligible entity' means--
                    ``(A) an agency of State or local government;
                    ``(B) an Indian Tribe; or
                    ``(C) an organization described in section 
                1265A(3)(B).
            ``(2) Eligible land.--The term `eligible land' means the 
        surface estate of land on which eligible water rights have been 
        historically used, as determined by governing State law, 
        including--
                    ``(A) cropland;
                    ``(B) grassland;
                    ``(C) rangeland;
                    ``(D) pasture land;
                    ``(E) nonindustrial private forest land; and
                    ``(F) other agricultural land.
            ``(3) Eligible water rights.--The term `eligible water 
        rights' means rights that are--
                    ``(A) owned or controlled by 1 or more private, 
                governmental, or Tribal landowners to groundwater that 
                has been used on eligible land; and
                    ``(B) subject to a pending offer for the purchase 
                of a groundwater conservation easement from an eligible 
                entity, the purchase of which would--
                            ``(i) promote reduced groundwater 
                        consumption and reduced reliance on 
                        groundwater; and
                            ``(ii) advance local, regional, or State 
                        groundwater management consistent with the 
                        purposes of the groundwater conservation 
                        easement program.
            ``(4) Groundwater conservation easement.--
                    ``(A) In general.--The term `groundwater 
                conservation easement' means an easement or other 
                interest in eligible water rights that--
                            ``(i) is conveyed for the purpose of 
                        supporting local, regional, or State 
                        groundwater management that reduces groundwater 
                        consumption while providing community and 
                        environmental benefits;
                            ``(ii) includes restrictions on the 
                        consumption of groundwater related to the 
                        historical withdrawals of the groundwater of 
                        the landowner associated with the entirety of 
                        the eligible land associated with the eligible 
                        water rights; and
                            ``(iii) expressly permits the landowner the 
                        right to continue agricultural production and 
                        other uses compatible with reduced groundwater 
                        consumption, consistent with the legally 
                        permissible use and administration of the water 
                        rights by the applicable State.
                    ``(B) Eligible land.--An easement or other interest 
                described in subparagraph (A) may include eligible land 
                associated with the eligible water rights described in 
                that subparagraph, subject to the choice of the owner 
                of the eligible land, consistent with applicable State 
                law.
    ``(b) Establishment.--The Secretary shall establish a groundwater 
conservation easement program for the conservation of groundwater 
resources associated with eligible water rights, which may include 
eligible land associated with those eligible water rights, through 
groundwater conservation easements.
    ``(c) Purposes.--The purposes of the groundwater conservation 
easement program are--
            ``(1) to promote the conservation and reduction in 
        consumption of groundwater resources, including the recharging 
        of declining aquifers, while allowing for continued 
        agricultural production and other uses;
            ``(2) to support landowners in the adaptation to, and 
        reduction in reliance on, declining groundwater resources; and
            ``(3) to protect agricultural use, community vitality, and 
        economic well-being, including through the development of 
        renewable energy, in the face of long-term declines in 
        groundwater availability.
    ``(d) Availability of Assistance.--The Secretary shall facilitate 
and provide funding for--
            ``(1) the purchase by eligible entities of groundwater 
        conservation easements; and
            ``(2) technical assistance to implement the groundwater 
        conservation easement program.
    ``(e) Cost-Share Assistance.--
            ``(1) In general.--The Secretary shall encourage 
        conservation of groundwater resources through cost-share 
        assistance to eligible entities for purchasing groundwater 
        conservation easements.
            ``(2) Scope of assistance available.--
                    ``(A) In general.--An agreement described in 
                paragraph (4) shall provide for--
                            ``(i) subject to subparagraph (D), a 
                        Federal share determined by the Secretary of an 
                        amount not to exceed 65 percent of the fair 
                        market value of the groundwater conservation 
                        easement, as determined under subparagraph (B); 
                        and
                            ``(ii) an additional payment in an amount 
                        not to exceed 5 percent of the Federal share 
                        determined under clause (i) for costs 
                        associated with securing a deed to the 
                        groundwater conservation easement, including 
                        the costs of valuation, survey, inspection, and 
                        title.
                    ``(B) Fair market value.--The fair market value of 
                a groundwater conservation easement shall be determined 
                by the Secretary using--
                            ``(i) the Uniform Standards of Professional 
                        Appraisal Practice;
                            ``(ii) an areawide market analysis or 
                        survey;
                            ``(iii) another industry-approved method;
                            ``(iv) a methodology used by another 
                        Federal agency;
                            ``(v) a model for valuation developed by a 
                        research institution; or
                            ``(vi) a method of valuing ecosystem 
                        services associated with protected water 
                        rights.
                    ``(C) Reimbursable costs.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the Secretary shall provide a 
                        payment under subparagraph (A)(ii) to an 
                        eligible entity as a reimbursement after the 
                        costs described in that subparagraph are 
                        incurred by the eligible entity.
                            ``(ii) Limited resource landowners.--In the 
                        case of eligible water rights or eligible land 
                        owned by a limited-resource landowner, as 
                        determined by the Secretary, the Secretary 
                        shall provide a payment under subparagraph 
                        (A)(ii) in advance as part of an agreement 
                        described in paragraph (4).
                    ``(D) Lower federal share option.--
                            ``(i) In general.--An eligible entity may 
                        elect to enter into an agreement described in 
                        paragraph (4) under which the Federal share 
                        does not exceed 25 percent of the fair market 
                        value of the groundwater conservation easement, 
                        as determined under subparagraph (B).
                            ``(ii) No right of enforcement.--
                        Notwithstanding paragraph (4)(C)(iii), an 
                        agreement with respect to which an eligible 
                        entity makes the election under clause (i) 
                        shall not include a right of enforcement for 
                        the Secretary.
                    ``(E) Permissible forms.--The non-Federal share 
                provided by an eligible entity under this paragraph may 
                comprise--
                            ``(i) cash resources;
                            ``(ii) a charitable donation or qualified 
                        conservation contribution (as defined in 
                        section 170(h) of the Internal Revenue Code of 
                        1986) from the landowner from which the 
                        groundwater conservation easement will be 
                        purchased;
                            ``(iii) costs associated with securing a 
                        deed to the groundwater conservation easement, 
                        including the cost of appraisal, survey, 
                        inspection, and title; and
                            ``(iv) other costs, as determined by the 
                        Secretary.
            ``(3) Evaluation and ranking of applications.--
                    ``(A) Criteria.--The Secretary shall establish 
                evaluation and ranking criteria to maximize the benefit 
                of Federal investment under the groundwater 
                conservation easement program.
                    ``(B) Considerations.--In establishing the criteria 
                under subparagraph (A), the Secretary shall emphasize 
                support for--
                            ``(i) maintaining or enhancing groundwater-
                        dependent ecosystems; and
                            ``(ii) advancing long-term groundwater 
                        sustainability consistent with existing State 
                        or local groundwater management initiatives.
                    ``(C) Bidding down.--If the Secretary determines 
                that 2 or more applications for cost-share assistance 
                under this subsection are comparable in achieving the 
                purpose of the groundwater conservation easement 
                program, the Secretary shall not assign a higher 
                priority to any of those applications solely on the 
                basis of lesser cost to the groundwater conservation 
                easement program.
            ``(4) Agreements with eligible entities.--
                    ``(A) In general.--The Secretary shall enter into 
                agreements with eligible entities to stipulate the 
                terms and conditions under which the eligible entity is 
                permitted to use cost-share assistance provided under 
                this subsection.
                    ``(B) Length of agreements.--An agreement under 
                this paragraph shall be for a term that is--
                            ``(i) in the case of an eligible entity 
                        certified under the process described in 
                        paragraph (5), a minimum of 5 years; and
                            ``(ii) for all other eligible entities, not 
                        less than 3, but not more than 5, years.
                    ``(C) Minimum terms and conditions.--An eligible 
                entity shall be authorized to use such terms and 
                conditions for groundwater conservation easements as 
                the eligible entity may establish, subject to the 
                condition that the Secretary shall determine that those 
                terms and conditions--
                            ``(i) are consistent with the purposes of 
                        the groundwater conservation easement program;
                            ``(ii) permit effective enforcement of the 
                        conservation purposes of the groundwater 
                        conservation easements, including--
                                    ``(I) a mechanism for the 
                                measurement of groundwater pumping 
                                reductions; and
                                    ``(II) the ability to enforce those 
                                reductions under relevant State law;
                            ``(iii) except as provided in paragraph 
                        (2)(D)(ii), include a right of enforcement for 
                        the Secretary, which may be used only if the 
                        terms of the groundwater conservation easement 
                        are not enforced by the holder of the 
                        groundwater conservation easement; and
                            ``(iv) subject the eligible water rights 
                        and eligible land, if applicable, in which an 
                        interest is purchased to a groundwater 
                        conservation easement plan that includes--
                                    ``(I) a description of the 
                                activities that demonstrate protection 
                                of soil resources and reduced 
                                groundwater use and meet any other 
                                conservation purposes for which the 
                                groundwater conservation easement was 
                                acquired;
                                    ``(II) a groundwater conservation 
                                plan, where appropriate, that includes, 
                                at the option of the Secretary, 
                                activities that will help maintain or 
                                enhance groundwater-dependent 
                                ecosystems; and
                                    ``(III) any other provisions that 
                                the Secretary determines to be 
                                necessary to accomplish the purposes of 
                                the groundwater conservation easement 
                                program.
                    ``(D) Substitution of qualified projects.--An 
                agreement under this paragraph shall allow, on mutual 
                agreement of the parties, substitution of qualified 
                projects that are identified at the time of the 
                proposed substitution.
                    ``(E) Effect of violation.--If a violation of a 
                term or condition of an agreement under this paragraph 
                occurs, the Secretary may--
                            ``(i) terminate the agreement; and
                            ``(ii) require the eligible entity to 
                        refund all, or part of, any payments received 
                        by the eligible entity under the groundwater 
                        conservation easement program, with interest on 
                        the payments, as determined appropriate by the 
                        Secretary.
            ``(5) Certification of eligible entities.--
                    ``(A) Certification process.--The Secretary shall 
                establish a process under which the Secretary may--
                            ``(i) directly certify eligible entities 
                        that meet established criteria;
                            ``(ii) enter into long-term agreements with 
                        certified eligible entities; and
                            ``(iii) accept proposals for cost-share 
                        assistance for the purchase of groundwater 
                        conservation easements throughout the duration 
                        of those agreements.
                    ``(B) Certification criteria.--To be certified 
                under subparagraph (A), an eligible entity shall 
                demonstrate to the Secretary that the eligible entity 
                will maintain, at a minimum, for the duration of the 
                agreement--
                            ``(i) a plan for administering groundwater 
                        conservation easements that is consistent with 
                        the purposes of the groundwater conservation 
                        easement program;
                            ``(ii) the capacity and resources to 
                        monitor and enforce groundwater conservation 
                        easements; and
                            ``(iii) policies and procedures to ensure--
                                    ``(I) the long-term integrity of 
                                groundwater conservation easements;
                                    ``(II) timely completion of 
                                acquisitions of groundwater 
                                conservation easements; and
                                    ``(III) timely and complete 
                                evaluation and reporting to the 
                                Secretary with respect to the use of 
                                funds provided under the groundwater 
                                conservation easement program.
                    ``(C) Review and revision.--
                            ``(i) Review.--The Secretary shall conduct 
                        a review of eligible entities certified under 
                        subparagraph (A) not less frequently than once 
                        every 3 years to ensure that the eligible 
                        entities are meeting the criteria established 
                        under subparagraph (B).
                            ``(ii) Revocation.--If the Secretary finds 
                        that a certified eligible entity no longer 
                        meets the criteria established under 
                        subparagraph (B), the Secretary may--
                                    ``(I) allow the certified eligible 
                                entity a specified period of time, but 
                                not less than 180 days, during which to 
                                take such actions as may be necessary 
                                to meet the criteria; and
                                    ``(II) revoke the certification of 
                                the eligible entity, if, after that 
                                specified period of time, the certified 
                                eligible entity does not meet the 
                                criteria.
    ``(f) Geographic Scope.--The Secretary may only enroll eligible 
water rights or eligible land under this section in regions--
            ``(1) experiencing significant groundwater depletion, as 
        determined by the Secretary consistent with data of the United 
        States Geological Survey; and
            ``(2) where groundwater monitoring and permitting exists 
        through the State, a local government, or a groundwater 
        management district.
    ``(g) Method of Enrollment.--The Secretary shall enroll eligible 
water rights and eligible land under this section through the use of--
            ``(1) permanent easements; or
            ``(2) easements for the maximum duration allowed under 
        applicable State laws.
    ``(h) Technical Assistance.--The Secretary may provide technical 
assistance, if requested, to assist in--
            ``(1) compliance with the terms and conditions of 
        groundwater conservation easements; and
            ``(2) implementation of an approved groundwater 
        conservation easement plan described in subsection 
        (e)(4)(C)(iv).''.

SEC. 3. ADJUSTED GROSS INCOME LIMITATION.

    Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308-3a) 
is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``In this'' and inserting the 
                following:
                    ``(A) In general.--In this''; and
                    (B) by adding at the end the following:
                    ``(B) Exclusion.--In this section, the term 
                `average adjusted gross income' does not include any 
                income received by a person or legal entity that is a 
                landowner of eligible land (as defined in section 
                1265A) as compensation for the purchase of an 
                agricultural land easement under subtitle H.''; and
            (2) in subsection (b)(3), by inserting ``, or aquifer 
        recovery or a permanent reduction in consumptive use of water 
        would be achieved,'' after ``protected''.
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