‘‘(1) ESTABLISHMENT.—Not later than 2 years 
after the date of enactment of this section, the Ad-
ministrator shall establish and maintain a publicly 
accessible website with a national data clearinghouse 
on reported water main breaks and associated repair 
activity. 
‘‘(2) CONTENTS.—The website established pur-
suant to paragraph (1) shall present— 
‘‘(A) information submitted to the Admin-
istrator by a public water system under this 
section with respect to reported water main 
breaks; 
‘‘(B) aggregate State and national data on 
reported water main breaks; and 
‘‘(C) trends in such information and data 
over time. 
‘‘(3) UPDATES.—The website established pursu-
ant to paragraph (1) shall be updated at least twice 
per year. 
‘‘(b) DEFINITION.—In this section, the term ‘re-
ported water main break’ means the unplanned rupture 
or breach of a pipe 6 inches in diameter or more in service 
as part of a public water system resulting in water escap-
ing and being reported to the public water system by an 
employee or other person. 
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‘‘(c) RULE.—Not later than one year after the date 
of enactment of this section, the Administrator shall issue 
a rule requiring each public water system serving more 
than 10,000 persons to submit to the Administrator infor-
mation on each reported water main break in, and the re-
pair activity for such break to be provided by, the public 
water system with respect to a calendar year. Such rule 
shall— 
‘‘(1) specify the format, content, quality assur-
ance procedure, and method of submission of infor-
mation; 
‘‘(2) apply to reported water main breaks that 
occur in the calendar year following the date of en-
actment of this section and each calendar year 
thereafter; 
‘‘(3) allow for the submission, storage, and dis-
play of information in electronic format; 
‘‘(4) allow for the submission of information by 
a public water system serving 10,000 or fewer per-
sons submitted on a voluntary basis; 
‘‘(5) allow for submission of any additional in-
formation that may be required of a public water 
system by a State regarding reported water main 
breaks and repair activity; and 
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‘‘(6) require that a summary of the information 
submitted be included in a public water system’s an-
nual consumer confidence report required under sec-
tion 1414(c)(4). 
‘‘(d) REPORTED WATER MAIN BREAK AND REPAIR 
INFORMATION.—The rule issued under subsection (c) 
shall require each public water system serving more than 
10,000 persons to submit to the Administrator the fol-
lowing information with respect to each reported water 
main break in the public water system: 
‘‘(1) To the extent practicable, the time and 
date the reported water main break was reported to 
the public water system. 
‘‘(2) The specific location of the reported water 
main break. 
‘‘(3) The size, type, age, and bedding material 
of the broken water main. 
‘‘(4) The elapsed time from the initial report of 
the water main break to the public water system to 
the completion of repairs. 
‘‘(5) The amount of water escaping from the 
public water system between the time of the report 
and the repair, estimated in accordance with ‘Water 
Audits and Loss Control Programs, Manual—36’ 
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(2016) published by the American Water Works As-
sociation or any successor manual. 
‘‘(6) The estimated cost of repairing the re-
ported water main break and associated public infra-
structure, including pavement restoration, and the 
cost of any damage to other public or private prop-
erty. 
‘‘(e) ANNUAL REPORT.—Not later than 4 years after 
the date of enactment of this section, and annually there-
after, the Administrator shall prepare and make available 
to the public a report summarizing and evaluating submis-
sions by public water systems pursuant to this section. 
Such report shall include information and recommenda-
tions concerning the methods and resources needed by 
public water systems to reduce the frequency, duration, 
and cost of water main breaks.’’. 
SEC. 3003. SUSTAINABLE WATER LOSS CONTROL PROGRAM. 
(a) TECHNICAL
ASSISTANCE
AND
GRANT
PRO-
GRAM.—The Administrator of the Environmental Protec-
tion Agency shall establish and carry out a program to— 
(1) make grants to public water systems to vol-
untarily undergo an audit of the public water system 
that is— 
(A) conducted in accordance with the pro-
cedures contained in ‘‘Water Audits and Loss 
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Control Programs, Manual—36’’, 4th edition, 
published by the American Water Works Asso-
ciation; and 
(B) validated under such criteria as may 
be specified by the Administrator; and 
(2) provide technical assistance to public water 
systems to— 
(A) address any findings of audits con-
ducted in accordance with the procedures and 
criteria described in paragraph (1), including 
audits conducted pursuant to a grant under 
paragraph (1); and 
(B) help such public water systems estab-
lish sustainable water loss control programs. 
(b) CRITERIA.—In selecting public water systems to 
make grants and provide technical assistance to pursuant 
to subsection (a), the Administrator shall consider— 
(1) the relative share of the customer base of 
the public water system made up of customers from 
disadvantaged communities (as defined in section 
2008); and 
(2) the ability of the public water system to 
successfully sustain a water loss control program 
upon completion of the audit. 
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(c) FEDERAL SHARE.—The Federal share of the cost 
of any audit for which a grant is awarded by the Adminis-
trator under subsection (a) shall not exceed 50 percent 
of the cost of the audit. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$10,000,000 for each of fiscal years 2018 through 2022. 
SEC. 3004. TAX-EXEMPT FACILITY BONDS. 
(a) VOLUME CAP EXCEPTION.—Section 146 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new subsection: 
‘‘(o) EXCEPTION FOR BONDS FOR WATER INFRA-
STRUCTURE IN AREAS WITH DROUGHT OR DISASTER.— 
‘‘(1) IN GENERAL.—Only for purposes of this 
section, the term ‘private activity bond’ shall not in-
clude any exempt facility bond issued as part of an 
issue described in paragraph (4) or (5) of section 
142(a) if not less than 95 percent of the net pro-
ceeds of such bond are used to provide property lo-
cated— 
‘‘(A) in an area that is, at any time during 
the 5-year period ending on the date of enact-
ment of this subsection, rated by the U.S. 
Drought Monitor as having at least a D2 inten-
sity, and 
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‘‘(B) in a State that is under a guber-
natorial drought declaration. 
‘‘(2) TERMINATION.—Paragraph (1) shall not 
apply to any bond issued more than 10 years after 
the date of the enactment of this subsection.’’. 
(b) RECYCLED WATER FACILITIES.—Section 142(e) 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following flush sentence: 
‘‘For purposes of this subsection, the term ‘water’ includes 
recycled water.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this subsection shall apply with respect to bonds issued 
after the date of the enactment of this Act. 
SEC. 3005. IMPROVING GREEN INFRASTRUCTURE AND COM-
MUNITY WATER SYSTEMS THROUGH STATE 
REVOLVING LOAN FUNDS. 
(a) WATER POLLUTION CONTROL STATE REVOLVING 
LOAN FUNDS.—Section 603 of the Federal Water Pollu-
tion Control Act (33 U.S.C. 1383) is amended by adding 
at the end the following: 
‘‘(j) GREEN PROJECT RESERVE.—Each State that 
has entered into a capitalization agreement pursuant to 
this title shall prioritize and, unless this funding is needed 
to protect public health, for each fiscal year, ensure that 
not less than 20 percent of funds used to provide assist-
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ance under this title is used for, projects to address green 
infrastructure, water or energy efficiency improvements, 
or other environmentally innovative activities, including 
activities related to— 
‘‘(1) improving the sustainability of community 
water systems (as defined in section 1401 of the 
Safe Drinking Water Act); 
‘‘(2) water efficiency or conservation, including 
the rehabilitation or replacement of existing leaking 
pipes; 
‘‘(3) stormwater harvesting and use of re-
claimed and recycled water, and investment in pipes 
used for the purposes of transporting recycled water; 
‘‘(4) increasing energy efficiency in public water 
systems (as defined in section 1401 of the Safe 
Drinking Water Act), including public water systems 
that use pump or hydraulic systems; and 
‘‘(5) implementation of source water protection 
plans under the Safe Drinking Water Act.’’. 
(b) DRINKING WATER STATE REVOLVING FUNDS.— 
Section 1452 of the Safe Drinking Water Act (42 U.S.C. 
300j–12) is amended by adding at the end the following: 
‘‘(s) PRIORITIZATION OF GREEN PROJECTS.—Each 
State that has entered into a capitalization agreement 
pursuant to this section may prioritize projects or activi-
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ties that maximize the potential for efficient water use, 
reuse, recapture, and conservation, and energy conserva-
tion, taking into account the cost of constructing the 
project or activity and the cost of operating and maintain-
ing the project or activity over the life of the project or 
activity.’’. 
(c) AUTHORIZATION OF APPROPRIATIONS.— 
(1) STATE
WATER
POLLUTION
CONTROL
RE-
VOLVING FUNDS.—Section 607 of the Federal Water 
Pollution Control Act (33 U.S.C. 1387) is amended 
to read as follows: 
‘‘SEC. 607. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated to carry out 
this title— 
‘‘(1) $2,000,000,000 for fiscal year 2018; and 
‘‘(2) $2,400,000,000 for fiscal year 2019.’’. 
(2) DRINKING WATER TREATMENT REVOLVING 
LOAN FUND.—Section 1452(m) of the Safe Drinking 
Water Act (42 U.S.C. 300j–12(m)) is amended to 
read as follows: 
‘‘(m) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this sec-
tion— 
‘‘(1) $1,186,000,000 for fiscal year 2018; and 
‘‘(2) $1,286,000,000 for fiscal year 2019.’’. 
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SEC. 3006. BEST PRACTICES FOR ADMINISTRATION OF 
STATE REVOLVING LOAN FUND PROGRAMS. 
Section 1452 of the Safe Drinking Water Act (42 
U.S.C. 300j–12), as amended, is further amended by add-
ing at the end the following: 
‘‘(t) BEST PRACTICES FOR PROGRAM ADMINISTRA-
TION.—The Administrator shall— 
‘‘(1) collect information from States on admin-
istration of State programs with respect to State 
loan funds, including— 
‘‘(A) efforts to streamline the process for 
applying for assistance through such programs; 
‘‘(B) programs in place to assist with the 
completion of application forms; 
‘‘(C) incentives provided to systems that 
partner with small public water systems for the 
application process; and 
‘‘(D) techniques to ensure that obligated 
balances are liquidated in a timely fashion; 
‘‘(2) not later than 3 years after the date of en-
actment of the Water and Energy Sustainability 
through Technology Act, disseminate to the States 
best practices for administration of such programs, 
based on the information collected pursuant to this 
subsection; and 
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‘‘(3) periodically update such best practices, as 
appropriate.’’. 
TITLE IV—REPEAL CERTAIN TAX 
PREFERENCES FOR ENERGY 
AND 
NATURAL 
RESOURCE- 
BASED INDUSTRIES 
SEC. 4001. NO EXPENSING FOR INTANGIBLE DRILLING AND 
DEVELOPMENT COSTS FOR OIL AND GAS 
WELLS. 
(a) IN GENERAL.—Section 263(c) of the Internal 
Revenue Code of 1986 is amended— 
(1) in the second sentence, by striking ‘‘are de-
ductible’’ and inserting ‘‘would, but for the last sen-
tence of this subsection, be deductible’’, and 
(2) by adding at the end the following new sen-
tence: ‘‘In the case of any taxable year beginning 
after December 31, 2017, this subsection shall not 
apply with respect to any oil or gas well.’’. 
(b) CONFORMING AMENDMENT.— 
(1) IN GENERAL.—Section 263(i) of such Code 
is amended by striking ‘‘an oil, gas, or geothermal’’ 
and inserting ‘‘a geothermal’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this section shall apply with respect to taxable 
years beginning after December 31, 2017. 
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SEC. 4002. REPEAL OF PERCENTAGE DEPLETION. 
(a) IN GENERAL.—Part I of subchapter I of chapter 
1 of the Internal Revenue Code of 1986 is amended by 
striking sections 613 and 613A (and by striking the items 
relating to such sections in the table of sections for such 
part). 
(b) CONFORMING AMENDMENTS.— 
(1)(A) Such part is amended by redesignating 
section 614 as section 613 (and, in the table of sec-
tions for such part, by redesignating the item relat-
ing to section 614 as an item relating to section 
613). 
(B) Clauses (iv) and (v) of section 465(c)(2)(A) 
are each amended by striking ‘‘section 614’’ and in-
serting ‘‘section 613’’. 
(C) Section 1016(e) is amended by striking 
‘‘section 614’’ and inserting ‘‘section 613’’. 
(D) Section 1254(a)(3) is amended by striking 
‘‘section 614’’ and inserting ‘‘section 613’’. 
(2) Section 45(c)(4) is amended to read as fol-
lows: 
‘‘(4) GEOTHERMAL ENERGY.— 
‘‘(A) IN GENERAL.—The term ‘geothermal 
energy’ means energy derived from a geo-
thermal deposit. 
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(11) Section 705(a) is amended— 
(A) in paragraph (1), by adding ‘‘and’’ at 
the end of subparagraph (A), by striking ‘‘, 
and’’ at the end of subparagraph (B) and in-
serting a period, and by striking subparagraph 
(C), 
(B) in paragraph (2), by striking ‘‘; and’’ 
at the end of subparagraph (B) and inserting a 
period, and 
(C) by striking paragraph (3). 
(12) Section 901(e)(1)(A) is amended by strik-
ing ‘‘(or, if smaller’’ and all that follows through 
‘‘under section 613)’’. 
(13) Section 993(c)(2)(C) is amended by insert-
ing ‘‘(as each such section was in effect before its 
repeal by the Tax Reform Act of 2014)’’ after ‘‘sec-
tion 613 or 613A’’. 
(14) Section 1202(e)(3)(D) is amended by in-
serting ‘‘(as each such section was in effect before 
its repeal by the Tax Reform Act of 2014)’’ after 
‘‘section 613 or 613A’’. 
(15) Section 1367(a) is amended— 
(A) in paragraph (1), by adding ‘‘and’’ at 
the end of subparagraph (A), by striking ‘‘, 
and’’ at the end of subparagraph (B) and in-
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serting a period, and by striking subparagraph 
(C), and 
(B) in paragraph (2), by adding ‘‘and’’ at 
the end of subparagraph (C), by striking ‘‘, 
and’’ at the end of subparagraph (D) and in-
serting a period, and by striking subparagraph 
(E). 
(16) Section 1446(c) is amended by striking 
paragraph (2) and by redesignating paragraph (3) 
as paragraph (2). 
(17) Section 4612(a)(7) is amended by insert-
ing ‘‘(as in effect before its repeal by the Tax Re-
form Act of 2014)’’ after ‘‘section 613’’. 
(18) Section 4940(c)(3)(B) is amended— 
(A) by striking clause (ii), and 
(B) by striking all that precedes ‘‘The de-
duction provided’’ and inserting the following: 
‘‘(B) MODIFICATIONS.—For purposes of 
subparagraph (A), the deduction provided’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
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TITLE V—SAVINGS CLAUSE 
SEC. 5001. SAVINGS CLAUSE. 
This Act shall not be interpreted or implemented in 
a manner that— 
(1) preempts or modifies any obligation of the 
United States to act in conformance with applicable 
State law, including applicable State water law; 
(2) affects or modifies any obligation under the 
Central Valley Project Improvement Act (Public 
Law 102–575; 106 Stat. 4706); 
(3) overrides, modifies, or amends the applica-
bility of the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.), the Endangered Spe-
cies Act of 1973 (16 U.S.C. 1531 et seq.), or the 
Federal Water Pollution Control Act of 1948 (33 
U.S.C. 1251 et seq.); or 
(4) authorizes the expenditure of funds for par-
ticipation in the construction or use of any facility 
first put into service after January 1, 2015, that 
conveys water directly from the Sacramento River to 
pumping facilities in the south Sacramento-San Joa-
quin Delta that are part of the California State 
Water Project or the Central Valley Project. 
Æ 
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