I 
114TH CONGRESS 
2D SESSION 
H. R. 6022 
To authorize a pilot project for an innovative water project financing program, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 14, 2016 
Mr. DENHAM introduced the following bill; which was referred to the 
Committee on Natural Resources 
A BILL 
To authorize a pilot project for an innovative water project 
financing 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 
‘‘New Water Available To Every Reclamation State Act’’ 
or the ‘‘New WATER Act’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Purposes. 
Sec. 3. Authority to provide assistance. 
Sec. 4. Applications. 
Sec. 5. Eligibility for assistance. 
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Sec. 6. Selection criteria. 
Sec. 7. Federal requirements. 
Sec. 8. Secured loans. 
Sec. 9. Program administration. 
Sec. 10. State, tribal, and local permits. 
Sec. 11. Regulations. 
Sec. 12. Funding. 
Sec. 13. Report to Congress on pilot project implementation. 
Sec. 14. Definitions. 
SEC. 2. PURPOSES. 
The purposes of this Act 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; and 
(3) to leverage private investment in water re-
sources infrastructure. 
SEC. 3. AUTHORITY TO PROVIDE ASSISTANCE. 
(a) IN GENERAL.—For 15 years after the date of the 
enactment of this Act, the Secretary may provide financial 
assistance under this Act to carry eligible projects with-
in— 
(1) any Reclamation State; 
(2) any other State in which the Bureau of 
Reclamation is authorized to provide project assist-
ance; and 
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(3) the States of Alaska and Hawaii. 
(b) SELECTION.—In selecting projects to receive fi-
nancial assistance under subsection (a), the Secretary 
shall ensure diversity with respect to— 
(1) project types; and 
(2) geographical locations. 
SEC. 4. APPLICATIONS. 
To be eligible to receive assistance under this Act, 
an eligible entity shall submit to the Secretary an applica-
tion at such time, in such manner, and containing such 
information as the Secretary may require. 
SEC. 5. ELIGIBILITY FOR ASSISTANCE. 
(a) ELIGIBLE PROJECTS.—The following projects 
may be carried out using assistance made available under 
this Act: 
(1) Any non-Federal water infrastructure 
project 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, agricul-
tural, environmental, or municipal and indus-
trial use; and 
(B) is otherwise eligible for assistance 
under this Act. 
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(2) A project for enhanced energy efficiency in 
the operation of a water system. 
(3) A project for accelerated repair and replace-
ment of an aging water distribution facility. 
(4) A brackish or sea water desalination 
project. 
(5) Acquisition of real property or an interest 
in real property for water storage, reclaimed or recy-
cled water, or wastewater, if the acquisition is inte-
gral to a project described in paragraphs (1) 
through (5). 
(6) A combination of projects, each of which is 
eligible under paragraphs (1) through (6), for which 
an eligible entity or group of eligible entities submits 
a single application. 
(b) ELIGIBLE COSTS.—Assistance made available 
under this Act (as paid by or for the account of an obligor) 
may be used to cover the following costs with respect to 
an eligible project: 
(1) 
Development-phase 
activities, 
including 
planning, feasibility analysis, revenue forecasting, 
environmental review, permitting, preliminary engi-
neering and design work, and other preconstruction 
activities. 
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(2) Construction, reconstruction, rehabilitation, 
and replacement activities. 
(3) Acquisition of real property (including water 
rights, land relating to the project, and improve-
ments to land), environmental mitigation, construc-
tion contingencies, and acquisition of equipment. 
(4) Capitalized interest necessary to meet mar-
ket requirements, reasonably required reserve funds, 
capital issuance expenses, and other carrying costs 
during construction. 
(5) Refinancing interim construction funding, 
existing long-term project obligations, or a secured 
loan or loan guarantee made under this Act. 
(c) ADDITIONAL ELIGIBILITY REQUIREMENTS.—To 
be eligible to receive financial assistance under this Act, 
a project shall meet the following criteria, as determined 
by the Secretary: 
(1) CREDITWORTHINESS.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B), the project shall be creditworthy, as 
determined by the Secretary, who shall ensure 
that any financing for the project has appro-
priate security features, such as a rate cov-
enant, if applicable, and adequate coverage re-
quirements, to ensure repayment. 
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(B) OPINION LETTER.— 
(i) PRELIMINARY
RATING
OPINION 
LETTER.—The Secretary shall require each 
applicant to provide a preliminary rating 
opinion letter from at least one rating 
agency indicating that the senior obliga-
tions of the project (which may be the 
Federal credit instrument) have the poten-
tial to achieve an investment-grade rating. 
(ii) FINAL
RATING
OPINION
LET-
TERS.—The Secretary or the Adminis-
trator, as applicable, shall require each 
project applicant to provide, prior to final 
acceptance and financing of the project, 
final rating opinion letters from at least 
one rating agency indicating that the sen-
ior obligations of the project have an in-
vestment-grade rating. 
(2) ELIGIBLE
PROJECT
COSTS.—The eligible 
project costs of a project shall be reasonably antici-
pated to be not less than $20,000,000. 
(3) DEDICATED REVENUE SOURCES.—The Fed-
eral credit instrument for the project shall be repay-
able, in whole or in part, from dedicated revenue 
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