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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2771 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2771

       To establish a WaterSense program, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 31, 2014

 Mrs. Boxer (for herself and Mrs. Feinstein) introduced the following 
bill; which was read twice and referred to the Committee on Environment 
                            and Public Works

_______________________________________________________________________

                                 A BILL

 
       To establish a WaterSense 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Water in the 21st 
Century Act'' or ``W21''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

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.

SEC. 2. DEFINITION OF ADMINISTRATOR.

    In this Act, the term ``Administrator'' means the Administrator of 
the Environmental Protection Agency.

                  TITLE I--CONSERVATION AND EFFICIENCY

SEC. 101. WATER EFFICIENCY, CONSERVATION, AND ADAPTATION.

    (a) WaterSense.--
            (1) In general.--There is established within the 
        Environmental Protection Agency a WaterSense program to 
        identify and promote water efficient products, buildings, 
        landscapes, facilities, processes, and services so as--
                    (A) to reduce water use;
                    (B) to reduce the strain on water, wastewater, and 
                stormwater infrastructure;
                    (C) to conserve energy used to pump, heat, 
                transport, and treat water; and
                    (D) to preserve water resources for future 
                generations, through voluntary labeling of, or other 
                forms of communications about, products, buildings, 
                landscapes, facilities, processes, and services that 
                meet the highest water efficiency and performance 
                criteria.
            (2) Duties.--The Administrator shall--
                    (A) establish--
                            (i) a WaterSense label to be used for 
                        certain items; and
                            (ii) the procedure by which an item may be 
                        certified to display the WaterSense label;
                    (B) promote WaterSense-labeled products, buildings, 
                landscapes, facilities, processes, and services in the 
                marketplace as the preferred technologies and services 
                for--
                            (i) reducing water use; and
                            (ii) ensuring product and service 
                        performance;
                    (C) work to enhance public awareness of the 
                WaterSense label through public outreach, education, 
                and other means;
                    (D) preserve the integrity of the WaterSense label 
                by--
                            (i) establishing and maintaining 
                        performance criteria so that products, 
                        buildings, landscapes, facilities, processes, 
                        and services labeled with the WaterSense label 
                        perform as well or better than less water-
                        efficient counterparts;
                            (ii) overseeing WaterSense certifications 
                        made by third parties;
                            (iii) conducting reviews of the use of the 
                        WaterSense label in the marketplace and taking 
                        corrective action in any case in which misuse 
                        of the label is identified; and
                            (iv) carrying out such other measures as 
                        the Administrator determines to be appropriate;
                    (E) regularly review and, if appropriate, update 
                WaterSense criteria for categories of products, 
                buildings, landscapes, facilities, processes, and 
                services, at least once every 6 years;
                    (F) to the maximum extent practicable, regularly 
                estimate and make available to the public the 
                production and relative market shares of, and the 
                savings of water, energy, and capital costs of water, 
                wastewater, and stormwater infrastructure attributable 
                to the use of WaterSense-labeled products, buildings, 
                landscapes, facilities, processes, and services, at 
                least annually;
                    (G) solicit comments from interested parties and 
                the public prior to establishing or revising a 
                WaterSense category, specification, installation 
                criterion, or other criterion;
                    (H) provide reasonable notice to interested parties 
                and the public of any changes (including effective 
                dates), on the adoption of a new or revised category, 
                specification, installation criterion, or other 
                criterion, along with--
                            (i) an explanation of the changes; and
                            (ii) as appropriate, responses to comments 
                        submitted by interested parties and the public;
                    (I) provide appropriate lead time (as determined by 
                the Administrator) prior to the applicable effective 
                date for a new or significant revision to a category, 
                specification, installation criterion, or other 
                criterion, taking into account the timing requirements 
                of the manufacturing, marketing, training, and 
                distribution process for the specific product, building 
                and landscape, or service category addressed;
                    (J) identify and, if appropriate, implement other 
                voluntary approaches in commercial, institutional, 
                residential, industrial, and municipal sectors to 
                encourage recycling and reuse technologies to improve 
                water efficiency or lower water use; and
                    (K) if appropriate, authorize the WaterSense label 
                for use on products that are labeled by the Energy Star 
                program implemented by the Administrator and the 
                Secretary of Energy.
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this section--
                    (A) $5,000,000 for fiscal year 2015;
                    (B) $10,000,000 for fiscal year 2016;
                    (C) $15,000,000 for fiscal year 2017;
                    (D) $20,000,000 for fiscal year 2018; and
                    (E) for each subsequent fiscal year, the applicable 
                amount for the preceding fiscal year, as adjusted to 
                reflect changes for the 12-month period ending the 
                preceding November 30 in the Consumer Price Index for 
                All Urban Consumers published by the Bureau of Labor 
                Statistics of the Department of Labor.
    (b) State Residential Water Efficiency and Conservation Incentives 
Program.--
            (1) Definitions.--In this subsection:
                    (A) Eligible entity.--The term ``eligible entity'' 
                means a State government, local or county government, 
                tribal government, wastewater or sewerage utility, 
                municipal water authority, energy utility, water 
                utility, or nonprofit organization that meets the 
                requirements of paragraph (2).
                    (B) Incentive program.--The term ``incentive 
                program'' means a program for administering financial 
                incentives for consumer purchase and installation of 
                water-efficient products, buildings (including new 
                water-efficient homes), landscapes, processes, or 
                services described in paragraph (2)(A).
                    (C) Residential water-efficient product, building, 
                landscape, process, or service.--
                            (i) In general.--The term ``residential 
                        water-efficient product, building, landscape, 
                        process, or service'' means a product, 
                        building, landscape, process, or service for a 
                        residence or its landscape that is rated for 
                        water efficiency and performance--
                                    (I) by the WaterSense program; or
                                    (II) if a WaterSense specification 
                                does not exist, by the Energy Star 
                                program or an incentive program 
                                approved by the Administrator.
                            (ii) Inclusions.--The term ``residential 
                        water-efficient product, building, landscape, 
                        process, or service'' includes--
                                    (I) faucets;
                                    (II) irrigation technologies and 
                                services;
                                    (III) point-of-use water treatment 
                                devices;
                                    (IV) reuse and recycling 
                                technologies;
                                    (V) toilets;
                                    (VI) clothes washers;
                                    (VII) dishwashers;
                                    (VIII) showerheads;
                                    (IX) xeriscaping and other 
                                landscape conversions that replace 
                                irrigated turf;
                                    (X) new water efficient homes 
                                certified under the WaterSense program;
                                    (XI) green stormwater installations 
                                such as permeable pavement, rain 
                                gardens, rain barrels, and green roofs;
                                    (XII) composting solutions 
                                complementary to water use and water 
                                quality; and
                                    (XIII) other water-efficient 
                                products, services, processes, or 
                                behavioral water efficiency solutions 
                                that address the objectives of the 
                                WaterSense program.
                    (D) Watersense program.--The term ``WaterSense 
                program'' means the program established by subsection 
                (a).
            (2) Eligible entities.--An entity shall be eligible to 
        receive an allocation under paragraph (3) if the entity--
                    (A) establishes (or has established) an incentive 
                program to provide financial incentives to residential 
                consumers for the purchase of residential water-
                efficient products, buildings, landscapes, processes, 
                or services;
                    (B) submits an application for the allocation at 
                such time, in such form, and containing such 
                information as the Administrator may require; and
                    (C) provides assurances satisfactory to the 
                Administrator that the entity will use the allocation 
                to supplement, but not supplant, non-Federal funds made 
                available to carry out the incentive program.
            (3) Amount of allocations.--For each fiscal year, the 
        Administrator shall determine the amount to allocate to each 
        eligible entity to carry out paragraph (4), taking into 
        consideration--
                    (A) the population served by the eligible entity 
                during the most recent calendar year for which data are 
                available;
                    (B) the targeted population of the incentive 
                program of the eligible entity, such as general 
                households, low-income households, or first-time 
                homeowners, and the probable effectiveness of the 
                incentive program for that population;
                    (C) for existing programs, the effectiveness of the 
                program in encouraging the adoption of water-efficient 
                products, buildings, landscapes, facilities, processes, 
                and services;
                    (D) any allocation to the eligible entity for a 
                preceding fiscal year that remains unused; and
                    (E) the per capita water demand of the population 
                served by the eligible entity during the most recent 
                calendar year for which data are available and the 
                availability or reliability of water supplies to the 
                eligible entity.
            (4) Use of allocated funds.--Funds allocated to an eligible 
        entity under paragraph (3) may be used to pay up to 50 percent 
        of the cost of establishing and carrying out an incentive 
        program.
            (5) Issuance of incentives.--
                    (A) In general.--Financial incentives may be 
                provided to residential consumers that meet the 
                requirements of the applicable incentive program.
                    (B) Manner of issuance.--An eligible entity may--
                            (i) issue all financial incentives directly 
                        to residential consumers; or
                            (ii) with approval of the Administrator, 
                        delegate all or part of financial incentive 
                        administration to other organizations, 
                        including local governments, municipal water 
                        authorities, water utilities, and nonprofit 
                        organizations.
                    (C) Amount.--The amount of a financial incentive 
                shall be determined by the eligible entity, taking into 
                consideration--
                            (i) the amount of any Federal or State tax 
                        incentive available for the purchase of the 
                        residential water-efficient product or service;
                            (ii) the amount necessary to change 
                        consumer behavior to purchase water-efficient 
                        products and services; and
                            (iii) the consumer expenditures for onsite 
                        preparation, assembly, and original 
                        installation of the product.
            (6) Authorization of appropriations.--There are authorized 
        to be appropriated to the Administrator to carry out this 
        subsection--
                    (A) $100,000,000 for fiscal year 2015;
                    (B) $150,000,000 for fiscal year 2016;
                    (C) $200,000,000 for fiscal year 2017;
                    (D) $150,000,000 for fiscal year 2018;
                    (E) $100,000,000 for fiscal year 2019; and
                    (F) for each subsequent fiscal year, the applicable 
                amount for the preceding fiscal year, as adjusted to 
                reflect changes for the 12-month period ending the 
                preceding November 30 in the Consumer Price Index for 
                All Urban Consumers published by the Bureau of Labor 
                Statistics of the Department of Labor.
    (c) Water System Mitigation and Adaptation Grants.--
            (1) Definitions.--In this subsection:
                    (A) Owner or operator.--
                            (i) In general.--The term ``owner or 
                        operator'' means a person (including a 
                        regional, State, local, municipal, or private 
                        entity) that owns or operates a water system.
                            (ii) Inclusion.--The term ``owner or 
                        operator'' includes a non-Federal entity that 
                        has operational responsibilities for a 
                        federally owned water system.
                    (B) Water system.--The term ``water system'' 
                means--
                            (i) a community water system (as defined in 
                        section 1401 of the Safe Drinking Water Act (42 
                        U.S.C. 300f));
                            (ii) a publicly owned treatment works (as 
                        defined in section 212 of the Federal Water 
                        Pollution Control Act (33 U.S.C. 1292)), 
                        including a municipal separate storm sewer 
                        system;
                            (iii) a decentralized wastewater treatment 
                        system for domestic sewage;
                            (iv) a groundwater storage and 
                        replenishment system; or
                            (v) a system for transport and delivery of 
                        water for irrigation or conservation.
            (2) Grants.--Beginning in fiscal year 2015, the 
        Administrator shall make grants to owners or operators of water 
        systems to address any ongoing or forecasted (based on the best 
        available research and data) climate-related impact on the 
        water quality or quantity of a region of the United States, for 
        the purposes of mitigating or adapting to the impacts of 
        climate change.
            (3) Eligible uses.--In carrying out this subsection, the 
        Administrator shall make grants to assist in the planning, 
        design, construction, implementation, or maintenance of any 
        program or project to increase the resilience of a water system 
        to climate change by--
                    (A) conserving water or enhancing water use 
                efficiency, including through the use of water metering 
                to measure the effectiveness of a water efficiency 
                program;
                    (B) modifying or relocating existing water system 
                infrastructure made or projected to be made inoperable 
                by climate change impacts;
                    (C) preserving or improving water quality, 
                including through measures to manage, reduce, treat, or 
                reuse municipal stormwater, wastewater, or drinking 
                water;
                    (D) investigating, designing, or constructing 
                groundwater remediation, recycled water, or 
                desalination facilities or systems;
                    (E) enhancing water management by increasing 
                watershed preservation and protection, such as through 
                the use of natural or engineered green infrastructure 
                in the management, conveyance, or treatment of water, 
                wastewater, or stormwater;
                    (F) enhancing energy efficiency or the use and 
                generation of renewable energy in the management, 
                conveyance, or treatment of water, wastewater, or 
                stormwater;
                    (G) supporting the adoption and use of advanced 
                water treatment, water supply management (such as 
                reservoir reoperation), or water demand management 
                technologies, projects, or processes (such as water 
                reuse and recycling or adaptive conservation pricing) 
                that maintain or increase water supply or improve water 
                quality;
                    (H) modifying or replacing existing systems or 
                constructing new systems for existing communities or 
                land currently in agricultural production to improve 
                water availability, storage, or conveyance in a manner 
                that--
                            (i) promotes more efficient use of 
                        available water supplies; and
                            (ii) does not further exacerbate stresses 
                        on ecosystems;
                    (I) supporting practices and projects, such as 
                improved irrigation systems, water banking and other 
                forms of water transactions, groundwater recharge, 
                stormwater capture, and reuse or recycling of drainage 
                water, to improve water quality or promote more 
                efficient water use, including on land currently in 
                agricultural production;
                    (J) conducting and completing studies or 
                assessments to project how climate change may impact 
                the future operations and sustainability of water 
                systems;
                    (K) developing and implementing mitigation measures 
                to rapidly address impacts on water systems most 
                susceptible to abrupt climate change, including those 
                in the Colorado River Basin and coastal regions at risk 
                from rising sea levels; or
                    (L) funding of transactions costs and credit 
                enhancement for pay-for-performance-based public-
                private initiatives intended to advance the eligible 
                uses of the program or project.
            (4) Application.--To be eligible to receive a grant from 
        the Administrator under paragraph (2), the owner or operator of 
        a water system shall submit to the Administrator an application 
        that--
                    (A) includes a proposal of the program, strategy, 
                or infrastructure improvement to be planned, designed, 
                constructed, implemented, or maintained by the water 
                system;
                    (B) cites the best available research or data that 
                demonstrates--
                            (i) the risk to the water resources or 
                        infrastructure of the water system as a result 
                        of ongoing or forecasted changes to the 
                        hydrological system brought about by factors 
                        arising from climate change, including rising 
                        sea levels and changes in precipitation levels; 
                        and
                            (ii) how the proposed program, strategy, or 
                        infrastructure improvement would perform under 
                        the anticipated climate conditions;
                    (C) explains how the proposed program, strategy, or 
                infrastructure improvement is expected to enhance the 
                resiliency of the water system, including source water 
                protection for community water systems, to these risks 
                or reduce the direct or indirect greenhouse gas 
                emissions of the water system; and
                    (D) demonstrates that the program, strategy, or 
                infrastructure improvement is--
                            (i) consistent with any approved State and 
                        tribal climate adaptation plan; and
                            (ii) not inconsistent with any approved 
                        natural resources plan.
            (5) Competitive process.--
                    (A) In general.--Each calendar year, the 
                Administrator shall conduct a competitive process to 
                select and fund applications under this subsection.
                    (B) Priority requirements and weighting.--In 
                carrying out the process, the Administrator shall--
                            (i) prioritize funding of applications that 
                        are submitted by the owners or operators of 
                        water systems that are, based on the best 
                        available research and data, at the greatest 
                        and most immediate risk of facing significant 
                        climate-related negative impacts on water 
                        quality or quantity;
                            (ii) in selecting among the priority 
                        applications determined under clause (i), 
                        ensure that the final list of applications 
                        funded for each year includes a substantial 
                        number that, to the maximum extent practicable, 
                        includes each eligible use described in 
                        paragraph (3);
                            (iii) solicit applications from water 
                        systems that are--
                                    (I) located in all regions of the 
                                United States; and
                                    (II) facing varying risks as a 
                                result of climate change; and
                            (iv) provide for solicitation and 
                        consideration of public input in the 
                        development of criteria used in evaluating 
                        applications.
            (6) Cost sharing.--
                    (A) Federal share.--The Federal share of the cost 
                of any program, strategy, or infrastructure improvement 
                that is the subject of a grant awarded by the 
                Administrator to a water system under paragraph (2) 
                shall not exceed 50 percent of the cost of the program, 
                strategy, and infrastructure improvement.
                    (B) Calculation of non-federal share.--In 
                calculating the non-Federal share of the cost of a 
                program, strategy, or infrastructure improvement 
                proposed by a water system through an application 
                submitted by the water system under paragraph (4), the 
                Administrator shall--
                            (i) include the value of any in-kind 
                        services that are integral to the completion of 
                        the program, strategy, or infrastructure 
                        improvement, as determined by the 
                        Administrator; and
                            (ii) not include any other amount that the 
                        water system receives from a Federal agency.
            (7) Labor standards.--
                    (A) In general.--All laborers and mechanics 
                employed on infrastructure improvements funded directly 
                by or assisted in whole or in part by this subsection 
                shall be paid wages at rates not less than those 
                prevailing for the same type of work on similar 
                construction in the immediate locality, as determined 
                by the Secretary of Labor in accordance with subchapter 
                IV of chapter 31 of part A of subtitle II of title 40, 
                United States Code.
                    (B) Authority and functions.--With respect to the 
                labor standards in this paragraph, the Secretary of 
                Labor shall have the authority and functions set forth 
                in Reorganization Plan Numbered 14 of 1950 (64 Stat. 
                1267; 5 U.S.C. App.) and section 3145 of title 40, 
                United States Code.
            (8) Local hiring.--
                    (A) In general.--The recipient of assistance may 
                advertise and award a contract for construction 
                containing requirements for the employment of 
                individuals residing in or adjacent to any of the areas 
                in which the work is to be performed under the 
                contract, if--
                            (i) all or part of the construction work 
                        performed under the contract occurs in an area 
                        that has--
                                    (I) a per capita income of 80 
                                percent or less of the national average 
                                per capita income; or
                                    (II) an unemployment rate that is, 
                                for the most recent 24-month period for 
                                which data are available, at least 1 
                                percent greater than the national 
                                average unemployment rate;
                            (ii) the estimated cost of the project of 
                        which the contract is a part is greater than 
                        $1,000,000; and
                            (iii) the recipient does not hire 
                        individuals who do not have the necessary 
                        skills to perform work in the applicable craft 
                        or trade, except for individuals who are 
                        subject to an apprenticeship program or other 
                        training program meeting, as determined by the 
                        Secretary.
                    (B) Advertisement.--In advertising and awarding a 
                contract under this subsection, the Secretary or 
                recipient of assistance shall ensure that the 
                requirements contained in the advertisement would not--
                            (i) compromise the quality of the project;
                            (ii) unreasonably delay the completion of 
                        the project; or
                            (iii) unreasonably increase the cost of the 
                        project.
            (9) Efficient, integrated procurement for programs jointly 
        funded with the department of housing and urban development.--
                    (A) Definition of eligible project.--In this 
                paragraph, the term ``eligible project'' means a 
                project for which the amount of funding provided by the 
                Department of Housing and Urban Development is 10 
                percent or more of the amount of funding provided under 
                this subsection.
                    (B) Preferences.--Notwithstanding the competitive 
                bidding requirements of this section (including 
                regulations), in the case of an eligible project funded 
                jointly with funding provided by the Department of 
                Housing and Urban Development that is covered by 
                section 3 of the Housing and Urban Development Act of 
                1968 (82 Stat. 846; 12 U.S.C. 1701u), a contracting 
                agency may apply the preferences required for the 
                funding by the Department of Housing and Urban 
                Development under section 3 of that Act (including 
                regulations) with respect to the funding, to the 
                elements of the project funded in any part under this 
                subsection.
                    (C) Permissible restrictions.--A State or local law 
                governing contracting practices that prohibits the 
                awarding of contracts to businesses that have solicited 
                or made contributions to political candidates, 
                political parties, and holders of public office shall 
                not be considered a violation of this section.
            (10) Regulations.--
                    (A) In general.--Not later than 1 year after the 
                date of enactment of this Act, the Administrator shall 
                promulgate final regulations to carry out this 
                subsection.
                    (B) Special rule for the construction of treatment 
                works.--In carrying out this paragraph, the 
                Administrator shall incorporate all relevant and 
                appropriate requirements of title VI of the Federal 
                Water Pollution Control Act (33 U.S.C. 1381 et seq.) 
                applicable to the construction of treatment works that 
                are carried out under this subsection.
            (11) Report to congress.--Not later than 3 years after the 
        date of enactment of this Act, and every 3 years thereafter, 
        the Administrator shall submit to Congress a report on progress 
        in implementing this subsection, including information on 
        project applications received and funded annually.
            (12) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this subsection such sums as 
        are necessary.

     TITLE II--RECYCLING, STORAGE, AND INTEGRATED WATER MANAGEMENT

SEC. 201. DEFINITIONS.

    In this title:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) a corporation;
                    (B) a partnership;
                    (C) a joint venture;
                    (D) a trust;
                    (E) a Federal, State, or local governmental entity, 
                agency, or instrumentality; and
                    (F) a conservancy district, irrigation district, 
                canal company, mutual water company, water users' 
                association, Indian tribe, agency created by interstate 
                compact, or any other entity that has the capacity to 
                contract with the United States under Federal 
                reclamation law.
            (2) Federal credit instrument.--The term ``Federal credit 
        instrument'' means a secured loan, loan guarantee, or other 
        credit enhancement authorized to be made available under this 
        title with respect to a project.
            (3) Investment-grade rating.--The term ``investment-grade 
        rating'' means a rating of BBB minus, Baa3, bbb minus, BBB 
        (low), or higher as assigned by a rating agency to project 
        obligations.
            (4) Lender.--
                    (A) In general.--The term ``lender'' means any non-
                Federal qualified institutional buyer (as defined in 
                section 230.144A(a) of title 17, Code of Federal 
                Regulations (or a successor regulation) (commonly known 
                as ``Rule 144A(a) of the Securities and Exchange 
                Commission'' and issued under the Securities Act of 
                1933 (15 U.S.C. 77a et seq.))).
                    (B) Inclusions.--The term ``lender'' includes--
                            (i) a qualified retirement plan (as defined 
                        in section 4974 of the Internal Revenue Code of 
                        1986) that is a qualified institutional buyer; 
                        and
                            (ii) a governmental plan (as defined in 
                        section 414 of the Internal Revenue Code of 
                        1986) that is a qualified institutional buyer.
            (5) Loan guarantee.--The term ``loan guarantee'' means any 
        guarantee or other pledge by the Secretary to pay all or part 
        of the principal of, and interest on, a loan or other debt 
        obligation issued by an obligor and funded by a lender.
            (6) Obligor.--The term ``obligor'' means an eligible entity 
        that is primarily liable for payment of the principal of, or 
        interest on, a Federal credit instrument.
            (7) Project obligation.--
                    (A) In general.--The term ``project obligation'' 
                means any note, bond, debenture, or other debt 
                obligation issued by an obligor in connection with the 
                financing of a project.
                    (B) Exclusion.--The term ``project obligation'' 
                does not include a Federal credit instrument.
            (8) Rating agency.--The term ``rating agency'' means a 
        credit rating agency registered with the Securities and 
        Exchange Commission as a nationally recognized statistical 
        rating organization (as defined in section 3(a) of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).
            (9) Reclamation state.--The term ``Reclamation State'' 
        means any of the States of--
                    (A) Arizona;
                    (B) California;
                    (C) Colorado;
                    (D) Idaho;
                    (E) Kansas;
                    (F) Montana;
                    (G) Nebraska;
                    (H) Nevada;
                    (I) New Mexico;
                    (J) North Dakota;
                    (K) Oklahoma;
                    (L) Oregon;
                    (M) South Dakota;
                    (N) Texas;
                    (O) Utah;
                    (P) Washington; and
                    (Q) Wyoming.
            (10) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (11) Secured loan.--The term ``secured loan'' means a 
        direct loan or other debt obligation issued by an obligor and 
        funded by the Secretary in connection with the financing of a 
        project under subtitle A.
            (12) Subsidy amount.--The term ``subsidy amount'' means the 
        amount of budget authority sufficient to cover the estimated 
        long-term cost to the Federal Government of a Federal credit 
        instrument, as calculated on a net present value basis, 
        excluding administrative costs and any incidental effects on 
        Governmental receipts or outlays in accordance with the Federal 
        Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).
            (13) Substantial completion.--The term ``substantial 
        completion'', with respect to a project, means the earliest 
        date on which a project is considered to perform the functions 
        for which the project is designed.

                    Subtitle A--Innovative Financing

SEC. 211. PURPOSES.

    The purposes of this subtitle are--
            (1) to promote increased development of critical water 
        resources infrastructure by establishing additional 
        opportunities for financing water resources projects;
            (2) to attract new investment capital to infrastructure 
        projects that are capable of generating revenue streams through 
        user fees or other dedicated funding sources;
            (3) to complement existing Federal funding sources and 
        address budgetary constraints on Bureau of Reclamation 
        programs; and
            (4) to leverage private investment in water resources 
        infrastructure.

SEC. 212. AUTHORITY TO PROVIDE ASSISTANCE.

    (a) In General.--The Secretary may provide financial assistance 
under this subtitle to carry out projects within--
            (1) any Reclamation State;
            (2) any other State in which the Bureau of Reclamation is 
        authorized to provide project assistance; and
            (3) the States of Alaska and Hawaii.
    (b) Selection.--In selecting projects to receive financial 
assistance under subsection (a), the Secretary shall ensure diversity 
with respect to--
            (1) project types; and
            (2) geographical locations.

SEC. 213. APPLICATIONS.

    To be eligible to receive assistance under this subtitle, an 
eligible entity shall submit to the Secretary an application at such 
time, in such manner, and containing such information as the Secretary 
may require.

SEC. 214. ELIGIBILITY FOR ASSISTANCE.

    (a) Eligible Projects.--The following projects may be carried out 
using assistance made available under this subtitle:
            (1) A project for the reclamation and reuse of municipal, 
        industrial, domestic, and agricultural wastewater, and 
        naturally impaired ground and surface waters, which the 
        Secretary, acting through the Commissioner of Reclamation, is 
        authorized to undertake.
            (2) Any water infrastructure project not specifically 
        authorized by law that--
                    (A) the Secretary determines, through the 
                completion of an appraisal investigation and 
                feasibility study, would contribute to a safe, adequate 
                water supply for domestic, agricultural, environmental, 
                or municipal and industrial use; and
                    (B) is otherwise eligible for assistance under this 
                title.
            (3) A project for enhanced energy efficiency in the 
        operation of a water system.
            (4) A project for accelerated repair and replacement of an 
        aging water distribution facility.
            (5) A brackish or sea water desalination project.
            (6) Acquisition of real property or an interest in real 
        property for water storage, reclaimed or recycled water, or 
        wastewater, if the acquisition is integral to a project 
        described in paragraphs (1) through (5).
            (7) A combination of projects, each of which is eligible 
        under paragraphs (1) through (6), for which an eligible entity 
        submits a single application.
    (b) Activities Eligible for Assistance.--For purposes of this 
subtitle, an eligible activity with respect to an eligible project 
under subsection (a) includes the cost of--
            (1) development-phase activities, including planning, 
        feasibility analysis, revenue forecasting, environmental 
        review, permitting, transaction costs, preliminary engineering 
        and design work, and other preconstruction activities;
            (2) construction, reconstruction, rehabilitation, and 
        replacement activities;
            (3) the acquisition of real property (including water 
        rights, land relating to the project, and improvements to 
        land), environmental mitigation, construction contingencies, 
        and acquisition of equipment;
            (4) capitalized interest necessary to meet market 
        requirements, reasonably required reserve funds, capital 
        issuance expenses, and other carrying costs during 
        construction;
            (5) refinancing interim construction funding, long-term 
        project obligations, or a secured loan, loan guarantee, or 
        other credit enhancement made under this subtitle;
            (6) reimbursement or success payments to any public or 
        private entity that achieves predetermined outcomes on a pay-
        for-performance or pay-for-success basis; and
            (7) grants, loans, or credit enhancement for community 
        development financial institutions, green banks, and other 
        financial intermediaries providing ongoing finance for projects 
        that meet the purposes of this subtitle.

SEC. 215. DETERMINATION OF ELIGIBILITY AND PROJECT SELECTION.

    (a) Eligibility Requirements.--To be eligible to receive financial 
assistance under this subtitle, a project shall meet the following 
criteria, as determined by the Secretary:
            (1) Creditworthiness.--
                    (A) In general.--Subject to subparagraph (B), the 
                project shall be creditworthy, as determined by the 
                Secretary, who shall ensure that any financing for the 
                project has appropriate security features, such as a 
                rate covenant, to ensure repayment.
                    (B) Preliminary rating opinion letter.--The 
                Secretary shall require each applicant to provide a 
                preliminary rating opinion letter from at least 1 
                rating agency indicating that the senior obligations of 
                the project (which may be the Federal credit 
                instrument) have the potential to achieve an 
                investment-grade rating.
            (2) Eligible project costs.--The eligible project costs of 
        a project and other projects in a watershed shall be reasonably 
        anticipated to be not less than $10,000,000.
            (3) Dedicated revenue sources.--The Federal credit 
        instrument for the project shall be repayable, in whole or in 
        part, from dedicated revenue sources that also secure the 
        project obligations.
            (4) Public sponsorship of private entities.--In the case of 
        a project carried out by an entity that is not a State or local 
        government or an agency or instrumentality of a State or local 
        government, the project shall be publicly sponsored.
    (b) Selection Criteria.--
            (1) Establishment.--The Secretary shall establish criteria 
        for the selection of projects that meet the eligibility 
        requirements of subsection (a), in accordance with paragraph 
        (2).
            (2) Criteria.--The selection criteria shall include the 
        following:
                    (A) The extent to which the project is nationally 
                or regionally significant.
                    (B) The extent to which assistance under this 
                section would foster innovative public-private 
                partnerships and attract private debt or equity 
                investment.
                    (C) The likelihood that assistance under this 
                section would enable the project to proceed at an 
                earlier date than the project would otherwise be able 
                to proceed.
                    (D) The extent to which the project uses new or 
                innovative approaches.
                    (E) The extent to which projects track evidence 
                about the effectiveness of the 1 or more projects 
                financed and the availability of the evidence and 
                project information to the public to facilitate 
                replication.
                    (F) The amount of budget authority required to fund 
                the Federal credit instrument made available under this 
                subtitle.
                    (G) The extent to which the project helps maintain 
                or protect the environment.
                    (H) The extent to which the project supports the 
                local economy and provides local jobs.
    (c) Receipt of Other Federal Funding.--Receipt of a Federal grant 
or contract or other Federal funding to support an eligible project 
shall not preclude the project from being eligible for assistance under 
this subtitle.
    (d) Federal Requirements.--
            (1) Effect of section.--Nothing in this section supersedes 
        the applicability of other requirements of Federal law 
        (including regulations).
            (2) NEPA.--A Federal action carried out regarding a loan or 
        loan guarantee provided under this subtitle shall not be 
        considered to be a Federal action for purposes of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

SEC. 216. SECURED LOANS.

    (a) Agreements.--
            (1) In general.--Subject to paragraphs (2) through (4), the 
        Secretary may enter into agreements with 1 or more obligors to 
        make secured loans, the proceeds of which shall be used--
                    (A) to finance eligible project costs of any 
                project selected under section 206;
                    (B) to refinance interim construction financing of 
                eligible project costs of any project selected under 
                section 206; or
                    (C) to refinance long-term project obligations or 
                Federal credit instruments, if that refinancing 
                provides additional funding capacity for the 
                completion, enhancement, or expansion of any project 
                that--
                            (i) is selected under section 206; or
                            (ii) otherwise meets the requirements of 
                        section 206.
            (2) Limitation on refinancing of interim construction 
        financing.--A secured loan under paragraph (1) shall not be 
        used to refinance interim construction financing under 
        paragraph (1)(B) later than 1 year after the date of 
        substantial completion of the applicable project.
            (3) Risk assessment.--Before entering into an agreement 
        under this subsection for a secured loan, the Secretary, in 
        consultation with the Director of the Office of Management and 
        Budget and each rating agency providing a preliminary rating 
        opinion letter under section 206(a)(1)(B), shall determine an 
        appropriate capital reserve subsidy amount for the secured 
        loan, taking into account each such preliminary rating opinion 
        letter.
            (4) Investment-grade rating requirement.--The execution of 
        a secured loan under this section shall be contingent on 
        receipt by the senior obligations of the project of an 
        investment-grade rating.
    (b) Terms and Limitations.--
            (1) In general.--A secured loan provided for a project 
        under this section shall be subject to such terms and 
        conditions, and contain such covenants, representations, 
        warranties, and requirements (including requirements for 
        audits), as the Secretary determines to be appropriate.
            (2) Maximum amount.--The amount of a secured loan under 
        this section shall not exceed the lesser of--
                    (A) an amount equal to 100 percent of the 
                reasonably anticipated eligible project costs; and
                    (B) if the secured loan does not receive an 
                investment-grade rating, the amount of the senior 
                project obligations of the project.
            (3) Payment.--A secured loan under this section--
                    (A) shall be payable, in whole or in part, from 
                State or local taxes, user fees, or other dedicated 
                revenue sources that also secure the senior project 
                obligations of the relevant project;
                    (B) shall include a rate covenant, coverage 
                requirement, or similar security feature supporting the 
                project obligations; and
                    (C) may have a lien on revenues described in 
                subparagraph (A), subject to any lien securing project 
                obligations.
            (4) Interest rate.--The interest rate on a secured loan 
        under this section shall be not more than the yield on United 
        States Treasury securities of a similar maturity to the 
        maturity of the secured loan on the date of execution of the 
        loan agreement, as determined by the Secretary.
            (5) Maturity date.--The final maturity date of a secured 
        loan under this section shall be not later than 35 years after 
        the date of substantial completion of the relevant project.
            (6) Nonsubordination.--A secured loan under this section 
        shall not be subordinated to the claims of any holder of 
        project obligations in the event of bankruptcy, insolvency, or 
        liquidation of the obligor of the project.
            (7) Fees.--The Secretary may establish fees at a level 
        sufficient to cover all or a portion of the costs to the 
        Federal Government of making a secured loan under this section.
            (8) Non-federal share.--The proceeds of a secured loan 
        under this section may be used to pay any non-Federal share of 
        project costs required if the loan is repayable from non-
        Federal funds.
    (c) Repayment.--
            (1) Schedule.--The Secretary shall establish a repayment 
        schedule for each secured loan provided under this section, 
        based on the projected cash flow from project revenues and 
        other repayment sources.
            (2) Commencement.--Scheduled loan repayment of principal or 
        interest on a secured loan under this section shall commence 
        not later than 5 years after the date of substantial completion 
        of the project.
            (3) Deferred payments.--
                    (A) Authorization.--If, at any time after the date 
                of substantial completion of a project for which a 
                secured loan is provided under this section, the 
                project is unable to generate sufficient revenues to 
                pay the scheduled loan repayments of principal and 
                interest on the secured loan, the Secretary may allow 
                the obligor, subject to subparagraph (C), to add unpaid 
                principal and interest to the outstanding balance of 
                the secured loan.
                    (B) Interest.--Any payment deferred under 
                subparagraph (A) shall--
                            (i) continue to accrue interest in 
                        accordance with subsection (b)(4) until fully 
                        repaid; and
                            (ii) be scheduled to be amortized over the 
                        remaining term of the secured loan.
                    (C) Criteria.--
                            (i) In general.--Any payment deferral under 
                        subparagraph (A) shall be contingent on the 
                        project meeting such criteria as the Secretary 
                        may establish.
                            (ii) Repayment standards.--The criteria 
                        established under clause (i) shall include 
                        standards for reasonable assurance of 
                        repayment.
            (4) Prepayment.--
                    (A) Use of excess revenues.--Any excess revenues 
                that remain after satisfying scheduled debt service 
                requirements on the project obligations and secured 
                loan and all deposit requirements under the terms of 
                any trust agreement, bond resolution, or similar 
                agreement securing project obligations may be applied 
                annually to prepay a secured loan under this section 
                without penalty.
                    (B) Use of proceeds of refinancing.--A secured loan 
                under this section may be prepaid at any time without 
                penalty from the proceeds of refinancing from non-
                Federal funding sources.
    (d) Sale of Secured Loans.--
            (1) In general.--Subject to paragraph (2), as soon as 
        practicable after the date of substantial completion of a 
        project and after providing a notice to the obligor, the 
        Secretary may sell to another entity or reoffer into the 
        capital markets a secured loan for a project under this 
        section, if the Secretary determines that the sale or 
        reoffering can be made on favorable terms.
            (2) Consent of obligor.--In making a sale or reoffering 
        under paragraph (1), the Secretary may not change the original 
        terms and conditions of the secured loan without the written 
        consent of the obligor.
    (e) Loan Guarantees.--
            (1) In general.--The Secretary may provide a loan guarantee 
        to a lender in lieu of making a secured loan under this 
        section, if the Secretary determines that the budgetary cost of 
        the loan guarantee is substantially the same as that of a 
        secured loan.
            (2) Terms.--The terms of a loan guarantee provided under 
        this subsection shall be consistent with the terms established 
        in this section for a secured loan, except that the rate on the 
        guaranteed loan and any prepayment features shall be negotiated 
        between the obligor and the lender, with the consent of the 
        Secretary.

SEC. 217. PROGRAM ADMINISTRATION.

    (a) Requirement.--The Secretary shall establish a uniform system to 
service the Federal credit instruments made available under this 
subtitle.
    (b) Fees.--The Secretary may collect and spend fees, contingent on 
authority being provided in appropriations Acts, at a level that is 
sufficient to cover--
            (1) the costs of services of expert firms retained pursuant 
        to subsection (d); and
            (2) all or a portion of the costs to the Federal Government 
        of servicing the Federal credit instruments provided under this 
        subtitle.
    (c) Servicer.--
            (1) In general.--The Secretary may appoint a financial 
        entity to assist the Secretary in servicing the Federal credit 
        instruments provided under this subtitle.
            (2) Duties.--A servicer appointed under paragraph (1) shall 
        act as the agent for the Secretary.
            (3) Fee.--A servicer appointed under paragraph (1) shall 
        receive a servicing fee, subject to approval by the Secretary.
    (d) Assistance From Experts.--The Secretary may retain the 
services, including counsel, of any organization or entity with 
expertise in the field of municipal and project finance to assist in 
the underwriting and servicing of Federal credit instruments provided 
under this subtitle.
    (e) Loan Coordination; Interagency Cooperation.--The Secretary--
            (1) shall coordinate implementation of loan guarantees 
        under this section with the Administrator to avoid duplication 
        and enhance the effectiveness of implementation of the State 
        revolving funds established under the Federal Water Pollution 
        Control Act (33 U.S.C. 1251 et seq.) and the Safe Drinking 
        Water Act (42 U.S.C. 300f et seq.);
            (2) shall consult with the Secretary of Agriculture before 
        promulgating criteria with respect to financial appraisal 
        functions and loan guarantee administration for activities 
        carried out under this subtitle; and
            (3) may enter into a memorandum of agreement providing for 
        Department of Agriculture financial appraisal functions and 
        loan guarantee administration for activities carried out under 
        this subtitle.

SEC. 218. STATE AND LOCAL PERMITS.

    The provision of financial assistance for a project under this 
subtitle shall not--
            (1) relieve any recipient of the assistance of any 
        obligation to obtain any required State or local permit or 
        approval with respect to the project;
            (2) limit the right of any unit of State or local 
        government to approve or regulate any rate of return on private 
        equity invested in the project; or
            (3) otherwise supersede any State or local law (including 
        any regulation) applicable to the construction or operation of 
        the project.

SEC. 219. REGULATIONS.

    The Secretary may promulgate such regulations as the Secretary 
determines to be appropriate to carry out this subtitle.

SEC. 220. FUNDING.

    (a) In General.--There is authorized to be appropriated to the 
Secretary to carry out this subtitle $50,000,000 for each of fiscal 
years 2015 through 2019, to remain available until expended.
    (b) Administrative Costs.--Of the funds made available to carry out 
this subtitle, the Secretary may use for the administration of this 
subtitle not more than $2,200,000 for each of fiscal years 2015 through 
2019.

SEC. 221. REPORT TO CONGRESS.

    Not later than 2 years after the date of enactment of this Act, and 
every 2 years thereafter, the Secretary shall submit to the Committee 
on Energy and Natural Resources of the Senate and the Committee on 
Natural Resources of the House of Representatives a report summarizing 
the financial performance and on-the-ground outcomes of the projects 
that are receiving, or have received, assistance under this subtitle, 
including an assessment of whether the objectives of this subtitle are 
being met.

  Subtitle B--Integrated Regional Water Management, Reclamation, and 
                           Recycling Projects

SEC. 231. WATER STORAGE PROJECTS.

    (a) Agreements.--The Secretary may enter into a cost-shared 
financial assistance agreement with any non-Federal entity in a 
Reclamation State or the State of Hawaii to carry out the planning, 
design, and construction of any permanent water storage and conveyance 
facility used solely to regulate and maximize the water supply arising 
from a project that is eligible for assistance under this title or any 
other provision of law--
            (1) to recycle wastewater, impaired surface water, and 
        ground water; or
            (2) to use integrated and coordinated water management on a 
        watershed or regional scale.
    (b) Financial Assistance.--In providing financial assistance under 
this section, the Secretary shall give priority to storage and 
conveyance components that--
            (1) ensure the efficient and beneficial use of water or 
        reuse of the recycled water;
            (2) make maximum use of natural systems;
            (3) consistent with Secretarial Order No. 3297, dated 
        February 22, 2010, support sustainable water management 
        practices and the water sustainability objectives of 1 or more 
        offices of the Department of the Interior or any other Federal 
        agency;
            (4)(A) increase the availability of usable water supplies 
        in a watershed or region to benefit people, the economy, and 
        the environment; and
            (B) include adaptive measures needed to address climate 
        change and future demands;
            (5) where practicable--
                    (A) provide flood control or recreation benefits; 
                and
                    (B) include the development of incremental 
                hydroelectric power generation;
            (6) include partnerships that go beyond political and 
        institutional jurisdictions to support the efficient use of the 
        limited water resources of the United States and the applicable 
        region;
            (7) generate environmental benefits, such as benefits to 
        fisheries, wildlife and habitat, and water quality and water-
        dependent ecological systems, as well as water supply benefits 
        to agricultural and urban water users; and
            (8) the financing of which leverages private and other non-
        Federal resources.
    (c) Federal Share.--The Federal share of the cost of a project 
carried out under subsection (a) shall be--
            (1) equal to the lesser of--
                    (A) 50 percent of total cost of the project; and
                    (B) $15,000,000, adjusted for inflation; and
            (2) nonreimbursable.
    (d) Non-Federal Share.--The non-Federal share of the cost of a 
project carried out under subsection (a) may include in-kind 
contributions to the planning, design, and construction of a project.
    (e) Title and Costs.--A non-Federal entity entering into a 
financial assistance agreement under this section shall--
            (1) hold title to all facilities constructed under this 
        section; and
            (2) be solely responsible for the costs of operating and 
        maintaining those facilities.

SEC. 232. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated $150,000,000 to carry out 
this subtitle.

                      Subtitle C--Title Transfers

SEC. 241. AUTHORIZATION TO TRANSFER TITLE.

    The Secretary may transfer to any non-Federal operating entity 
title to any Reclamation project or facility, or any separable element 
of such a project or facility, that is authorized before the date of 
enactment of this Act, if--
            (1) all previous Federal construction contract obligations 
        or other related repayment contracts or agreements associated 
        with the project have been paid out by a non-Federal project 
        beneficiary;
            (2)(A) a project facility or separable element of such a 
        facility is in need of rehabilitation or improvement, as 
        determined by the Secretary; and
            (B) the non-Federal operating entity is otherwise eligible 
        for a loan guarantee under this title;
            (3) the title transfer meets all applicable Federal laws 
        and regulations, as determined by the Secretary; and
            (4)(A) the Secretary notifies each congressional committee 
        of jurisdiction of the transfer by not later than 60 days 
        before the date of the transfer; and
            (B) no objection to the transfer is raised by any such 
        committee.

      TITLE III--INNOVATION THROUGH RESEARCH, DATA, AND TECHNOLOGY

SEC. 301. OPEN WATER DATA SYSTEM.

    (a) Definitions.--In this section:
            (1) Educational institution.--The term ``educational 
        institution'' means--
                    (A) a public or private elementary or secondary 
                school;
                    (B) an institution of vocational, professional, or 
                higher education (including a junior college or 
                teachers' college); and
                    (C) an association of schools or institutions 
                described in subparagraphs (A) and (B).
            (2) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given that term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior, acting through the Director of the United 
        States Geological Survey.
            (4) State.--The term ``State'' means--
                    (A) a State;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico; and
                    (D) any other territory or possession of the United 
                States.
            (5) System.--The term ``system'' means the open water data 
        system established under subsection (b).
    (b) System.--The Secretary shall establish and maintain an open 
water data system within the United States Geological Survey to advance 
the availability, timely distribution, and widespread use of water data 
and information for water management, education, research, assessment, 
and monitoring purposes.
    (c) Purposes.--The purposes of the system are--
            (1) to advance the quantification of the availability, use 
        of, and risks to, water resources throughout the United States;
            (2) to increase accessibility to, and expand the use of, 
        water data and information in a standard, easy-to-use format by 
        Federal, State, local, and tribal governments, communities, 
        educational institutions, and the private sector; and
            (3) to facilitate the open exchange of water information 
        particularly in the face of climate change and unprecedented 
        drought.
    (d) Activities.--In carrying out this section, the Secretary 
shall--
            (1) integrate water data and information into a 
        interoperable, national, geospatially referenced water data 
        framework;
            (2) identify new water data and information needs, 
        including data on surface and groundwater quality and quantity, 
        sediment, erosion, transport, water chemistry, precipitation, 
        reservoir storage, water cycle, landscape variables, 
        hydrography, climate and weather impacts, soil moisture, and 
        human use;
            (3) leverage existing shared databases, infrastructure, and 
        tools to provide a platform for water data and information 
        innovation, modeling and data sharing, and solution 
        development;
            (4) support water data and information sharing, applied 
        research, and educational programs of State, local, and tribal 
        governments, communities, educational institutions, and the 
        private sector; and
            (5) promote cooperation and sharing of expertise regarding 
        water data and information among State, local, and tribal 
        governments, communities, educational institutions, and the 
        private sector.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary.

SEC. 302. WATER RESOURCES RESEARCH ACT AMENDMENTS.

    (a) Congressional Findings and Declarations.--Section 102 of the 
Water Resources Research Act of 1984 (42 U.S.C. 10301) is amended--
            (1) by redesignating paragraphs (7) through (9) as 
        paragraphs (8) through (10), respectively;
            (2) in paragraph (8) (as so redesignated), by striking 
        ``and'' at the end; and
            (3) by inserting after paragraph (6) the following:
            ``(7) additional research is required to increase the 
        effectiveness and efficiency of new and existing treatment 
        works through alternative approaches, including--
                    ``(A) nonstructural alternatives;
                    ``(B) decentralized approaches;
                    ``(C) water use efficiency and conservation; and
                    ``(D) actions to reduce energy consumption or 
                extract energy from wastewater;''.
    (b) Water Resources Research and Technology Institutes.--Section 
104 of the Water Resources Research Act of 1984 (42 U.S.C. 10303) is 
amended--
            (1) in subsection (b)(1)--
                    (A) in subparagraph (B)(ii), by striking ``water-
                related phenomena'' and inserting ``water resources''; 
                and
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting ``; and'';
            (2) in subsection (c)--
                    (A) by striking ``From the'' and inserting ``(1) In 
                general.--From the''; and
                    (B) by adding at the end the following:
            ``(2) Report.--Not later than December 31 of each fiscal 
        year, the Secretary shall submit to the Committee on 
        Environment and Public Works of the Senate, the Committee on 
        the Budget of the Senate, the Committee on Transportation and 
        Infrastructure of the House of Representatives, and the 
        Committee on the Budget of the House of Representatives a 
        report regarding the compliance of each funding recipient with 
        this subsection for the immediately preceding fiscal year.'';
            (3) by striking subsection (e) and inserting the following:
    ``(e) Evaluation of Water Resources Research Program.--
            ``(1) In general.--The Secretary shall conduct a careful 
        and detailed evaluation of each institute at least once every 3 
        years to determine--
                    ``(A) the quality and relevance of the water 
                resources research of the institute;
                    ``(B) the effectiveness of the institute at 
                producing measured results and applied water supply 
                research; and
                    ``(C) whether the effectiveness of the institute as 
                an institution for planning, conducting, and arranging 
                for research warrants continued support under this 
                section.
            ``(2) Prohibition on further support.--If, as a result of 
        an evaluation under paragraph (1), the Secretary determines 
        that an institute does not qualify for further support under 
        this section, no further grants to the institute may be 
        provided until the qualifications of the institute are 
        reestablished to the satisfaction of the Secretary.'';
            (4) in subsection (f)(1), by striking ``$12,000,000 for 
        each of fiscal years 2007 through 2011'' and inserting 
        ``$7,500,000 for each of fiscal years 2015 through 2020''; and
            (5) in subsection (g)(1), in the first sentence, by 
        striking ``$6,000,000 for each of fiscal years 2007 through 
        2011'' and inserting ``$1,500,000 for each of fiscal years 2015 
        through 2020''.

SEC. 303. REAUTHORIZATION OF WATER DESALINATION ACT OF 1996.

    Section 8 of the Water Desalination Act of 1996 (42 U.S.C. 10301 
note; Public Law 104-298) is amended--
            (1) in the first sentence of subsection (a), by striking 
        ``2013'' and inserting ``2020''; and
            (2) in subsection (b), by striking ``for each of fiscal 
        years 2012 through 2013'' and inserting ``for each of fiscal 
        years 2015 through 2020''.

SEC. 304. REVIEW OF RESERVOIR OPERATIONS.

    (a) In General.--Not later than 1 year after receiving a request of 
a non-Federal sponsor of a reservoir, the Secretary of the Army, in 
consultation with the Administrator of the National Oceanic and 
Atmospheric Administration, shall review the operation of the 
reservoir, including the water control manual and rule curves, using 
improved weather forecasts and run-off forecasting methods, including 
the Advanced Hydrologic Prediction System of the National Weather 
Service and the Hydrometeorology Testbed program of the National 
Oceanic and Atmospheric Administration.
    (b) Description of Benefits.--In conducting the review under 
subsection (a), the Secretary of the Army shall determine if a change 
in operations, including the use of improved weather forecasts and run-
off forecasting methods, will improve 1 or more of the core functions 
of the Corps of Engineers, including--
            (1) reducing risks to human life, public safety, and 
        property;
            (2) reducing the need for future disaster relief;
            (3) improving local water storage capability and 
        reliability in coordination with the non-Federal sponsor and 
        other water users;
            (4) restoring, protecting, or mitigating the impacts of a 
        water resources development project on the environment; and
            (5) improving fish species habitat or population within the 
        boundaries and downstream of a water resources project.
    (c) Results Reported.--Not later than 90 days after completion of a 
review under this section, the Secretary shall submit a report to 
Congress regarding the results of the review.
    (d) Manual Update.--As soon as practicable, but not later than 3 
years after the date on which a report under subsection (c) is 
submitted to Congress, pursuant to the procedures required under 
existing authorities, if the Secretary of the Army determines based on 
that report that using improved weather and run-off forecasting methods 
improves 1 or more core functions of the Corps of Engineers at a 
reservoir, the Secretary of the Army shall--
            (1) incorporate those methods in the operation of the 
        reservoir; and
            (2) update the water control manual.

             TITLE IV--DROUGHT PREPAREDNESS AND RESILIENCE

SEC. 401. NATIONAL DROUGHT RESILIENCE GUIDELINES.

    (a) In General.--The Administrator, in conjunction with the 
Secretary of the Interior, the Secretary of Agriculture, the Director 
of the National Oceanic and Atmospheric Administration, and other 
appropriate Federal agency heads along with State and local 
governments, shall develop nonregulatory national drought resilience 
guidelines relating to drought preparedness planning and investments 
for communities, water utilities, and other water users and providers.
    (b) Consultation.--In developing the national drought resilience 
guidelines, the Administrator and other Federal agency heads referred 
to in subsection (a) shall consult with--
            (1) State and local governments;
            (2) water utilities;
            (3) scientists;
            (4) institutions of higher education;
            (5) relevant private entities; and
            (6) other stakeholders.
    (c) Contents.--The national drought resilience guidelines developed 
under this section shall, to the maximum extent practicable, provide 
recommendations for a period of 10 years that--
            (1) address a broad range of potential actions, including--
                    (A) analysis of the impacts of climate change and 
                drought on the future effectiveness of water management 
                tools;
                    (B) the identification of drought-related water 
                management challenges in a broad range of fields, 
                including--
                            (i) public health and safety;
                            (ii) municipal and industrial water supply;
                            (iii) agricultural water supply;
                            (iv) water quality;
                            (v) ecosystem health; and
                            (vi) water supply planning;
                    (C) water management tools to reduce drought-
                related impacts, including--
                            (i) water use efficiency through gallons 
                        per capita reduction goals, appliance 
                        efficiency standards, water pricing incentives, 
                        and other measures;
                            (ii) water recycling;
                            (iii) groundwater clean-up and storage;
                            (iv) new technologies, such as behavioral 
                        water efficiency; and
                            (v) stormwater capture and reuse;
                    (D) water-related energy and greenhouse gas 
                reduction strategies; and
                    (E) public education and engagement; and
            (2) include recommendations relating to the processes that 
        Federal, State, and local governments and water utilities 
        should consider when developing drought resilience preparedness 
        and plans, including--
                    (A) the establishment of planning goals;
                    (B) the evaluation of institutional capacity;
                    (C) the assessment of drought-related risks and 
                vulnerabilities, including the integration of climate-
                related impacts;
                    (D) the establishment of a development process, 
                including an evaluation of the cost-effectiveness of 
                potential strategies;
                    (E) the inclusion of private entities, technical 
                advisors, and other stakeholders in the development 
                process;
                    (F) implementation and financing issues; and
                    (G) evaluation of the plan, including any updates 
                to the plan.

SEC. 402. DROUGHT PREPAREDNESS FOR FISHERIES.

    (a) Definitions.--In this section:
            (1) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (2) Qualified tribal government.--The term ``qualified 
        tribal government'' means a governmental body of an Indian 
        tribe that the Secretary of the Interior determines--
                    (A) is involved in salmon management and recovery 
                activities under the Endangered Species Act of 1973 (16 
                U.S.C. 1531 et seq.); and
                    (B) has the management and organizational 
                capability to maximize the benefits of assistance 
                provided under this section.
    (b) Salmon Drought Plan.--
            (1) In general.--Not later than January 1, 2016, the 
        Director of the United States Fish and Wildlife Service shall, 
        in consultation with the Director of the National Marine 
        Fisheries Service, the Commissioner of Reclamation, the Chief 
        of Engineers, and the head of the California Department of Fish 
        and Wildlife, prepare a salmon drought plan for the State of 
        California.
            (2) Contents.--The plan developed under paragraph (1) 
        shall--
                    (A) contribute--
                            (i) to the recovery of populations listed 
                        as threatened or endangered under the 
                        Endangered Species Act of 1973 (16 U.S.C. 1531 
                        et seq.); and
                            (ii) to the goals of the Central Valley 
                        Project Improvement Act (title XXXIV of Public 
                        Law 102-575; 106 Stat. 4706); and
                    (B) include options to protect salmon populations 
                originating in the State of California, with a 
                particular focus on actions that can be taken to aid 
                salmon populations in the State of California during 
                the driest 12 years, such as--
                            (i) relocating the release location and 
                        timing of hatchery fish to avoid predation and 
                        temperature impacts;
                            (ii) barging hatchery release fish to 
                        improve survival and reduce straying;
                            (iii) coordinating with water users, the 
                        Commissioner of Reclamation, and the head of 
                        the California Department of Water Resources 
                        regarding voluntary water transfers to 
                        determine if water released upstream to meet 
                        the needs of downstream or South-of-Delta water 
                        users can be managed in a way that provides 
                        additional benefits for salmon;
                            (iv) hatchery management modifications, 
                        such as expanding hatchery production during 
                        the driest years of fish listed as endangered 
                        or threatened under the Endangered Species Act 
                        of 1973 (16 U.S.C. 1531 et seq.), if 
                        appropriate; and
                            (v) increasing rescue operations of 
                        upstream migrating fish.
    (c) Funding.--
            (1) In general.--Out of any funds in the Treasury not 
        otherwise appropriated, the Secretary of the Treasury shall 
        transfer to the Director of the United States Fish and Wildlife 
        Service to carry out this section $3,000,000, to remain 
        available until expended, for urgent fish, stream, and hatchery 
        activities relating to extreme drought conditions, including 
        work carried out in conjunction with the Director of the 
        National Marine Fisheries Service, the Commissioner of 
        Reclamation, the Chief of Engineers, the head of the California 
        Department of Fish and Wildlife, or a qualified tribal 
        government.
            (2) Receipt and acceptance.--The Director of the United 
        States Fish and Wildlife Service shall be entitled to receive, 
        shall accept, and shall use to carry out this section the funds 
        transferred under paragraph (1), without further appropriation. 

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