(1) investment in water infrastructure is critical 
to protecting property and personal safety through 
flood, hurricane, and storm damage reduction activi-
ties; 
(2) investment in infrastructure on the inland 
waterways of the United States is critical to the 
economy of the United States through the mainte-
nance of safe, reliable, and efficient navigation for 
recreation and the movement of billions of dollars in 
goods each year; 
(3) fiscal challenges facing Federal, State, local, 
and tribal governments require new and innovative 
financing structures to continue robust investment 
in public water infrastructure; 
(4) under existing fiscal restraints and project 
delivery processes, large-scale water infrastructure 
projects like the lock and dam modernization on the 
upper Mississippi River and Illinois River will take 
decades to complete, with benefits for the lock mod-
ernization not expected to be realized until 2047; 
(5) the Corps of Engineers has an estimated 
backlog of more than $60,000,000,000 in out-
standing projects; and 
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(6) in developing innovative financing options 
for water infrastructure projects, any prior public in-
vestment in projects must be protected. 
SEC. 3. WATER INFRASTRUCTURE NOW PILOT PROGRAM. 
(a) IN GENERAL.—The Secretary of the Army, acting 
through the Chief of Engineers, shall establish a pilot pro-
gram to evaluate the cost-effectiveness and project delivery 
efficiency of allowing non-Federal interests to carry out 
authorized flood damage reduction, hurricane and storm 
damage reduction, and navigation projects. 
(b) PURPOSES.—The purposes of the pilot program 
are— 
(1) to identify project delivery and cost-saving 
alternatives that reduce the backlog of authorized 
Corps of Engineers projects; 
(2) to evaluate the technical, financial, and or-
ganizational efficiencies of a non-Federal interest 
carrying out the design, execution, management, and 
construction of 1 or more projects; and 
(3) to evaluate alternatives for the decentraliza-
tion of the project planning, management, and oper-
ational decisionmaking processes of the Corps of En-
gineers. 
(c) ADMINISTRATION.— 
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(1) IN
GENERAL.—In carrying out the pilot 
program, the Secretary shall— 
(A) identify a total of not more than 15 
flood damage reduction, hurricane and storm 
damage reduction, and navigation projects, in-
cluding levees, floodwalls, flood control chan-
nels, water control structures, and navigation 
locks and channels, authorized for construction; 
(B) notify the Committee on Environment 
and Public Works of the Senate and the Com-
mittee on Transportation and Infrastructure of 
the House of Representatives upon the identi-
fication of each project under the pilot pro-
gram; 
(C) in consultation with the non-Federal 
interest, develop a detailed project management 
plan for each identified project that outlines the 
scope, budget, design, and construction resource 
requirements necessary for the non-Federal in-
terest to execute the project, or a separable ele-
ment of the project; 
(D) on the request of the non-Federal in-
terest, enter into a project partnership agree-
ment with the non-Federal interest for the non- 
Federal interest to provide full project manage-
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ment control for construction of the project, or 
a separable element of the project, in accord-
ance with plans approved by the Secretary; 
(E) following execution of the project part-
nership agreement, transfer to the non-Federal 
interest to carry out construction of the project, 
or a separable element of the project— 
(i) if applicable, the balance of the un-
obligated amounts appropriated for the 
project, except that the Secretary shall re-
tain sufficient amounts for the Corps of 
Engineers to carry out any responsibilities 
of the Corps of Engineers relating to the 
project and pilot program; and 
(ii) additional amounts, as determined 
by the Secretary, from amounts made 
available under section 5, except that the 
total amount transferred to the non-Fed-
eral interest shall not exceed the estimate 
of the Federal share of the cost of con-
struction, including any required design; 
and 
(F) regularly monitor and audit each 
project being constructed by a non-Federal in-
terest under this section to ensure that the con-
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struction activities are carried out in compli-
ance with the plans approved by the Secretary 
and that the construction costs are reasonable. 
(2) RESTRICTIONS.—Of the projects identified 
by the Secretary— 
(A) not more than 12 projects shall— 
(i) have received Federal funds and 
experienced delays or missed scheduled 
deadlines in the 5 fiscal years prior to the 
date of enactment of this Act; or 
(ii) for more than 2 consecutive fiscal 
years, have an unobligated funding balance 
for that project in the Corps of Engineers 
construction account; and 
(B) not more than 3 projects shall— 
(i) have not received Federal funding 
for recapitalization and modernization in 
the period beginning on the date on which 
the project was authorized and ending on 
the date of enactment of this Act; and 
(ii) be, in the determination of the 
Secretary, significant to the national econ-
omy as a result of the impact the project 
would have on the national transportation 
of goods. 
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(3) TECHNICAL ASSISTANCE.—On the request 
of a non-Federal interest, the Secretary may provide 
technical assistance to the non-Federal interest, if 
the non-Federal interest contracts with the Sec-
retary for the technical assistance and compensates 
the Secretary for the technical assistance, relating 
to— 
(A) any study, engineering activity, and 
design activity for construction carried out by 
the non-Federal interest under this section; and 
(B) obtaining any permits necessary for 
the project. 
(4) WAIVERS.— 
(A) IN
GENERAL.—For any project in-
cluded in the pilot program, the Secretary may 
waive or modify any applicable Federal regula-
tions for that project if the Secretary deter-
mines that such a waiver would provide public 
and financial benefits, including expediting 
project delivery and enhancing efficiency while 
maintaining safety. 
(B) NOTIFICATION.—The Secretary shall 
notify the Committee on Environment and Pub-
lic Works of the Senate and the Committee on 
Transportation and Infrastructure of the House 
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of Representatives each time the Secretary 
issues a waiver or modification under subpara-
graph (A). 
(d) PUBLIC BENEFIT STUDY.— 
(1) IN
GENERAL.—Before entering into a 
project partnership agreement under this section, 
the Secretary shall enter into an arrangement with 
an independent third party to conduct an assess-
ment of whether, and provide justification that, the 
proposed partnership agreement would represent a 
better public and financial benefit than a similar 
transaction using public funding or financing. 
(2) CONTENTS.—The study under paragraph 
(1) shall— 
(A) be completed by the third party in a 
timely manner and in a period of not more than 
90 days; 
(B) take into consideration any supporting 
materials and data submitted by the Secretary, 
the nongovernmental party to the proposed 
project partnership agreement, and other stake-
holders; and 
(C) recommend whether the project part-
nership agreement will be in the public interest 
by determining whether the agreement will pro-
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vide public and financial benefits, including ex-
pedited project delivery and savings to tax-
payers. 
(e) COST SHARE.—Nothing in this Act affects the 
cost-sharing requirement applicable on the day before the 
date of enactment of this Act to a project carried out 
under this Act. 
(f) REPORT.— 
(1) IN GENERAL.—Not later than 2 years after 
the date of enactment of this Act, the Secretary 
shall submit to the Committee on Environment and 
Public Works of the Senate and the Committee on 
Transportation and Infrastructure of the House of 
Representatives a report detailing the results of the 
pilot program carried out under this section, includ-
ing any recommendations of the Secretary con-
cerning whether the program or any component of 
the program should be implemented on a national 
basis. 
(2) UPDATE.—Not later than 5 years after the 
date of enactment of this Act, the Secretary shall 
submit to the Committee on Environment and Pub-
lic Works of the Senate and the Committee on 
Transportation and Infrastructure of the House of 
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Representatives an update of the report described in 
paragraph (1). 
(g) ADMINISTRATION.—All laws (including regula-
tions) that would apply to the Secretary if the Secretary 
were carrying out the project shall apply to a non-Federal 
interest carrying out a project under this Act. 
(h) TERMINATION OF AUTHORITY.—The authority to 
commence a project under this Act terminates on the date 
that is 5 years after the date of enactment of this Act. 
SEC. 4. APPLICABILITY. 
Nothing in this Act authorizes or permits the privat-
ization of any Federal asset. 
SEC. 5. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Sec-
retary to carry out this Act such sums as are necessary. 
Æ 
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