I 
114TH CONGRESS 
1ST SESSION 
H. R. 291 
To establish a WaterSense program, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 13, 2015 
Mrs. NAPOLITANO (for herself, Mrs. CAPPS, Ms. CHU of California, Mr. CON-
YERS, Mr. DOGGETT, Ms. ESHOO, Mr. GARAMENDI, Mr. GRIJALVA, Ms. 
HAHN, Mr. HASTINGS, Mr. HINOJOSA, Mr. HONDA, Mr. HUFFMAN, Ms. 
EDDIE BERNICE JOHNSON of Texas, Mrs. KIRKPATRICK, Ms. NORTON, 
Ms. LEE, Mr. LOWENTHAL, Mr. BEN RAY LUJA´N of New Mexico, Mr. 
PETERS, Ms. ROYBAL-ALLARD, Mr. RUIZ, Mr. SHERMAN, Ms. SLAUGH-
TER, Mrs. TORRES, and Mr. VARGAS) introduced the following bill; which 
was referred to the Committee on Natural Resources, and in addition to 
the Committees on Transportation and Infrastructure, Energy and Com-
merce, and Science, Space, and Technology, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To establish a WaterSense program, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives 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: 
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Sec. 1. Short title; table of contents. 
Sec. 2. Definition of Administrator. 
TITLE I—CONSERVATION AND EFFICIENCY 
Sec. 101. Water efficiency, conservation, and adaptation. 
TITLE II—RECYCLING, STORAGE, AND INTEGRATED WATER 
MANAGEMENT 
Sec. 201. Definitions. 
Subtitle A—Innovative Financing 
Sec. 211. Purposes. 
Sec. 212. Authority to provide assistance. 
Sec. 213. Applications. 
Sec. 214. Eligibility for assistance. 
Sec. 215. Determination of eligibility and project selection. 
Sec. 216. Secured loans. 
Sec. 217. Program administration. 
Sec. 218. State and local permits. 
Sec. 219. Regulations. 
Sec. 220. Funding. 
Sec. 221. Report to Congress. 
Subtitle B—Integrated Regional Water Management, Reclamation, and 
Recycling Projects 
Sec. 231. Water storage projects. 
Sec. 232. Authorization of appropriations. 
Subtitle C—Title Transfers 
Sec. 241. Authorization to transfer title. 
TITLE III—INNOVATION THROUGH RESEARCH, DATA, AND 
TECHNOLOGY 
Sec. 301. Open water data system. 
Sec. 302. Water Resources Research Act amendments. 
Sec. 303. Reauthorization of Water Desalination Act of 1996. 
Sec. 304. Review of reservoir operations. 
TITLE IV—DROUGHT PREPAREDNESS AND RESILIENCE 
Sec. 401. National drought resilience guidelines. 
Sec. 402. Drought preparedness for fisheries. 
SEC. 2. DEFINITION OF ADMINISTRATOR. 
In this Act, the term ‘‘Administrator’’ means the Ad-
ministrator of the Environmental Protection Agency. 
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TITLE I—CONSERVATION AND 
EFFICIENCY 
SEC. 101. WATER EFFICIENCY, CONSERVATION, AND ADAP-
TATION. 
(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, waste-
water, 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 
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(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 per-
formance; 
(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 per-
formance criteria so that products, build-
ings, landscapes, facilities, processes, and 
services labeled with the WaterSense label 
perform as well or better than less water- 
efficient counterparts; 
(ii) overseeing WaterSense certifi-
cations made by third parties; 
(iii) conducting reviews of the use of 
the WaterSense label in the marketplace 
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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 ap-
propriate; 
(E) regularly review and, if appropriate, 
update WaterSense criteria for categories of 
products, buildings, landscapes, facilities, proc-
esses, 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 storm-
water infrastructure attributable to the use of 
WaterSense-labeled products, buildings, land-
scapes, facilities, processes, and services, at 
least annually; 
(G) solicit comments from interested par-
ties and the public prior to establishing or re-
vising a WaterSense category, specification, in-
stallation 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 re-
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vised category, specification, installation cri-
terion, or other criterion, along with— 
(i) an explanation of the changes; and 
(ii) as appropriate, responses to com-
ments submitted by interested parties and 
the public; 
(I) provide appropriate lead time (as deter-
mined by the Administrator) prior to the appli-
cable effective date for a new or significant revi-
sion to a category, specification, installation cri-
terion, 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, insti-
tutional, residential, industrial, and municipal 
sectors to encourage recycling and reuse tech-
nologies to improve water efficiency or lower 
water use; and 
(K) if appropriate, authorize the Water-
Sense label for use on products that are labeled 
by the Energy Star program implemented by 
the Administrator and the Secretary of Energy. 
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(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 ap-
plicable 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 Con-
sumers published by the Bureau of Labor Sta-
tistics of the Department of Labor. 
(b) STATE 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, waste-
water or sewerage utility, municipal water au-
thority, energy utility, water utility, or non-
profit organization that meets the requirements 
of paragraph (2). 
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(B) INCENTIVE PROGRAM.—The term ‘‘in-
centive program’’ means a program for admin-
istering financial incentives for consumer pur-
chase and installation of water-efficient prod-
ucts, buildings (including new water-efficient 
homes), landscapes, processes, or services de-
scribed in paragraph (2)(A). 
(C) WATER-EFFICIENT PRODUCT, BUILD-
ING, LANDSCAPE, PROCESS, OR SERVICE.— 
(i) IN GENERAL.—The term ‘‘water- 
efficient product, building, landscape, proc-
ess, or service’’ means a product, building, 
landscape, process, or service for a resi-
dence or a commercial or institutional 
building, or the landscape of a residence or 
commercial or institutional building, that 
is rated for water efficiency and perform-
ance— 
(I) by the WaterSense program; 
or 
(II) if a WaterSense specification 
does not exist, by the Energy Star 
program or an incentive program ap-
proved by the Administrator. 
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(ii) INCLUSIONS.—The term ‘‘water- 
efficient product, building, landscape, proc-
ess, or service’’ includes— 
(I) faucets; 
(II) irrigation technologies and 
services; 
(III) point-of-use water treat-
ment devices; 
(IV) reuse and recycling tech-
nologies; 
(V) toilets; 
(VI) clothes washers; 
(VII) dishwashers; 
(VIII) showerheads; 
(IX) xeriscaping and other land-
scape conversions that replace irri-
gated turf; 
(X) new water efficient homes 
certified under the WaterSense pro-
gram; 
(XI) green stormwater installa-
tions such as permeable pavement, 
rain gardens, rain barrels, and green 
roofs; 
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(XII) composting solutions com-
plementary to water use and water 
quality; and 
(XIII) other water-efficient prod-
ucts, services, processes, or behavioral 
water efficiency solutions that address 
the objectives of the WaterSense pro-
gram. 
(D) WATERSENSE
PROGRAM.—The term 
‘‘WaterSense program’’ means the program es-
tablished by subsection (a). 
(2) ELIGIBLE ENTITIES.—An entity shall be eli-
gible to receive an allocation under paragraph (3) if 
the entity— 
(A) establishes (or has established) an in-
centive program to provide financial incentives 
to residential, commercial, and institutional 
consumers for the purchase of water-efficient 
products, buildings, landscapes, processes, or 
services; 
(B) submits an application for the alloca-
tion at such time, in such form, and containing 
such information as the Administrator may re-
quire; and 
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(C) provides assurances satisfactory to the 
Administrator that the entity will use the allo-
cation 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 para-
graph (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 incen-
tive program of the eligible entity, such as gen-
eral households, low-income households, or first- 
time homeowners, and the probable effective-
ness of the incentive program for that popu-
lation; 
(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 
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(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 allo-
cated to an eligible entity under paragraph (3) may 
be used to pay up to 50 percent of the cost of estab-
lishing and carrying out an incentive program. 
(5) ISSUANCE OF INCENTIVES.— 
(A) IN
GENERAL.—Financial incentives 
may be provided to residential, commercial, and 
institutional consumers that meet the require-
ments of the applicable incentive program. 
(B) MANNER
OF
ISSUANCE.—An eligible 
entity may— 
(i) issue all financial incentives di-
rectly to residential, commercial, and insti-
tutional consumers; or 
(ii) with approval of the Adminis-
trator, delegate all or part of financial in-
centive administration to other organiza-
tions, including local governments, munic-
ipal water authorities, water utilities, and 
nonprofit organizations. 
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(C) AMOUNT.—The amount of a financial 
incentive shall be determined by the eligible en-
tity, taking into consideration— 
(i) the amount of any Federal or 
State tax incentive available for the pur-
chase of the water-efficient product or 
service; 
(ii) the amount necessary to change 
consumer behavior to purchase water-effi-
cient products and services; and 
(iii) the consumer expenditures for on-
site preparation, assembly, and original in-
stallation of the product. 
(6) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to the Ad-
ministrator 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 ap-
plicable amount for the preceding fiscal year, as 
adjusted to reflect changes for the 12-month 
period ending the preceding November 30 in 
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the Consumer Price Index for All Urban Con-
sumers published by the Bureau of Labor Sta-
tistics 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 sys-
tem. 
(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 de-
fined 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. 
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1292)), including a municipal separate 
storm sewer system; 
(iii) a decentralized wastewater treat-
ment system for domestic sewage; 
(iv) a groundwater storage and re-
plenishment system; or 
(v) a system for transport and deliv-
ery 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 qual-
ity or quantity of a region of the United States, for 
the purposes of mitigating or adapting to the im-
pacts of climate change. 
(3) ELIGIBLE USES.—In carrying out this sub-
section, the Administrator shall make grants to as-
sist in the planning, design, construction, implemen-
tation, 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 
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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, waste-
water, or drinking water; 
(D) 
investigating, 
designing, 
or 
con-
structing groundwater remediation, recycled 
water, or desalination facilities or systems; 
(E) enhancing water management by in-
creasing watershed preservation and protection, 
such as through the use of natural or engi-
neered 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 man-
agement, conveyance, or treatment of water, 
wastewater, or stormwater; 
(G) supporting the adoption and use of ad-
vanced water treatment, water supply manage-
ment (such as reservoir reoperation), or water 
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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 sys-
tems or constructing new systems for existing 
communities or land currently in agricultural 
production to improve water availability, stor-
age, 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, ground-
water recharge, stormwater capture, and reuse 
or recycling of drainage water, to improve water 
quality or promote more efficient water use, in-
cluding on land currently in agricultural pro-
duction; 
(J) conducting and completing studies or 
assessments to project how climate change may 
impact the future operations and sustainability 
of water systems; 
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(K) developing and implementing mitiga-
tion measures to rapidly address impacts on 
water systems most susceptible to abrupt cli-
mate change, including those in the Colorado 
River Basin and coastal regions at risk from 
rising sea levels; or 
(L) funding of transactions costs and cred-
it 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 re-
sult of ongoing or forecasted changes to 
the hydrological system brought about by 
factors arising from climate change, in-
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cluding rising sea levels and changes in 
precipitation levels; and 
(ii) how the proposed program, strat-
egy, or infrastructure improvement would 
perform under the anticipated climate con-
ditions; 
(C) explains how the proposed program, 
strategy, or infrastructure improvement is ex-
pected to enhance the resiliency of the water 
system, including source water protection for 
community water systems, to these risks or re-
duce the direct or indirect greenhouse gas emis-
sions of the water system; and 
(D) demonstrates that the program, strat-
egy, or infrastructure improvement is— 
(i) consistent with any approved State 
and tribal climate adaptation plan; and 
(ii) not inconsistent with any ap-
proved natural resources plan. 
(5) COMPETITIVE PROCESS.— 
(A) IN GENERAL.—Each calendar year, the 
Administrator shall conduct a competitive proc-
ess to select and fund applications under this 
subsection. 
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(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 opera-
tors 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 ap-
plications determined under clause (i), en-
sure that the final list of applications fund-
ed for each year includes a substantial 
number that, to the maximum extent prac-
ticable, 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 re-
sult of climate change; and 
(iv) provide for solicitation and con-
sideration of public input in the develop-
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ment of criteria used in evaluating applica-
tions. 
(6) COST SHARING.— 
(A) FEDERAL SHARE.—The Federal share 
of the cost of any program, strategy, or infra-
structure 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 infra-
structure improvement proposed by a water sys-
tem through an application submitted by the 
water system under paragraph (4), the Admin-
istrator 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 Admin-
istrator; and 
(ii) not include any other amount that 
the water system receives from a Federal 
agency. 
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(7) LABOR STANDARDS.— 
(A) IN GENERAL.—All laborers and me-
chanics employed on infrastructure improve-
ments 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 sub-
chapter 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 para-
graph, the Secretary of Labor shall have the 
authority and functions set forth in Reorganiza-
tion 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 assist-
ance may advertise and award a contract for 
construction containing requirements for the 
employment of individuals residing in or adja-
cent to any of the areas in which the work is 
to be performed under the contract, if— 
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(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 per-
cent or less of the national average 
per capita income; or 
(II) an unemployment rate that 
is, for the most recent 24-month pe-
riod for which data are available, at 
least 1 percent greater than the na-
tional 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 indi-
viduals 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 de-
termined by the Secretary. 
(B) ADVERTISEMENT.—In advertising and 
awarding a contract under this subsection, the 
Secretary or recipient of assistance shall ensure 
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that the requirements contained in the adver-
tisement 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 DE-
PARTMENT
OF
HOUSING
AND
URBAN
DEVELOP-
MENT.— 
(A) DEFINITION OF ELIGIBLE PROJECT.— 
In this paragraph, the term ‘‘eligible project’’ 
means a project for which the amount of fund-
ing provided by the Department of Housing and 
Urban Development is 10 percent or more of 
the amount of funding provided under this sub-
section. 
(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 Devel-
opment that is covered by section 3 of the 
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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 fund-
ing, 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 busi-
nesses 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 Ad-
ministrator shall promulgate final regulations to 
carry out this subsection. 
(B) SPECIAL RULE FOR THE CONSTRUC-
TION OF TREATMENT WORKS.—In carrying out 
this paragraph, the Administrator shall incor-
porate all relevant and appropriate require-
ments of title VI of the Federal Water Pollution 
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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 imple-
menting 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 enti-
ty’’ 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 
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(F) a conservancy district, irrigation dis-
trict, canal company, mutual water company, 
water users’ association, Indian tribe, agency 
created by interstate compact, or any other en-
tity 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 author-
ized to be made available under this title with re-
spect 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 suc-
cessor regulation) (commonly known as ‘‘Rule 
144A(a) of the Securities and Exchange Com-
mission’’ and issued under the Securities Act of 
1933 (15 U.S.C. 77a et seq.))). 
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(B) INCLUSIONS.—The term ‘‘lender’’ in-
cludes— 
(i) a qualified retirement plan (as de-
fined in section 4974 of the Internal Rev-
enue Code of 1986) that is a qualified in-
stitutional 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 guar-
antee’’ 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 in-
strument. 
(7) PROJECT OBLIGATION.— 
(A) IN GENERAL.—The term ‘‘project obli-
gation’’ means any note, bond, debenture, or 
other debt obligation issued by an obligor in 
connection with the financing of a project. 
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(B) EXCLUSION.—The term ‘‘project obli-
gation’’ does not include a Federal credit in-
strument. 
(8) RATING AGENCY.—The term ‘‘rating agen-
cy’’ 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 ‘‘Rec-
lamation 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; 
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(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 sub-
title A. 
(12) SUBSIDY
AMOUNT.—The term ‘‘subsidy 
amount’’ means the amount of budget authority suf-
ficient 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 consid-
ered to perform the functions for which the project 
is designed. 
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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 addi-
tional opportunities for financing water resources 
projects; 
(2) to attract new investment capital to infra-
structure projects that are capable of generating rev-
enue streams through user fees or other dedicated 
funding sources; 
(3) to complement existing Federal funding 
sources and address budgetary constraints on Bu-
reau of Reclamation programs; and 
(4) to leverage private investment in water re-
sources infrastructure. 
SEC. 212. AUTHORITY TO PROVIDE ASSISTANCE. 
(a) IN GENERAL.—The Secretary may provide finan-
cial 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 assist-
ance; and 
(3) the States of Alaska and Hawaii. 
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