I 
114TH CONGRESS 
1ST SESSION H. R. 2983 
To provide drought assistance and improved water supply reliability to the 
State of California, other western States, and the Nation. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 8, 2015 
Mr. HUFFMAN (for himself, Mr. FARR, Mr. MCNERNEY, Mr. DESAULNIER, 
Mr. THOMPSON of California, Mr. HONDA, Mr. LOWENTHAL, Ms. ESHOO, 
Mr. GARAMENDI, Mr. TAKAI, Mr. DEFAZIO, Mr. CA´RDENAS, Mrs. CAPPS, 
Mr. PETERS, Mr. SWALWELL of California, Ms. LOFGREN, Ms. SPEIER, 
Mr. O’ROURKE, Ms. LEE, Mr. BERA, Mrs. TORRES, Ms. LINDA T. 
SA´NCHEZ of California, Mr. GRIJALVA, Ms. LORETTA SANCHEZ of Cali-
fornia, Mr. BLUMENAUER, Ms. PINGREE, Mr. PERLMUTTER, Ms. TITUS, 
Ms. MATSUI, Mrs. NAPOLITANO, Mr. RUIZ, Mrs. DAVIS of California, and 
Ms. BROWNLEY of California) introduced the following bill; which was re-
ferred to the Committee on Natural Resources, and in addition to the 
Committees on the Budget, Science, Space, and Technology, Transpor-
tation and Infrastructure, Energy and Commerce, the Judiciary, Ways 
and Means, and Armed Services, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To provide drought assistance and improved water supply 
reliability to the State of California, other western 
States, and the Nation. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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Sec. 243. Compliance with environmental and historic preservation laws. 
Sec. 244. Eligibility criteria. 
Sec. 245. Liability. 
Sec. 246. Benefits. 
Sec. 247. Compliance with other laws. 
Sec. 248. Authorization of appropriations. 
Sec. 249. Termination of authority. 
Subtitle C—Innovative Stormwater Capture Program 
Sec. 251. Short title. 
Sec. 252. Purposes and findings. 
Sec. 253. Definitions. 
Sec. 254. Centers of Excellence for innovative stormwater control infrastruc-
ture. 
Sec. 255. Innovative stormwater control infrastructure project grants. 
Sec. 256. Environmental Protection Agency innovative stormwater control in-
frastructure promotion. 
Sec. 257. Report to Congress. 
Sec. 258. Authorization of appropriations. 
TITLE III—IMPROVED INFRASTRUCTURE AND WATER 
MANAGEMENT 
Subtitle A—Restoring America’s Watersheds and Increasing Water Yields 
Sec. 301. Short title. 
Sec. 302. Findings. 
Sec. 303. Water Source Protection Program. 
Sec. 304. Watershed Condition Framework. 
Sec. 305. Forest Service Legacy Roads and Trails Remediation Program. 
Sec. 306. Reauthorization of the Collaborative Forest Landscape Restoration 
Fund. 
Subtitle B—Reservoir Operation Improvement 
Sec. 311. Short title. 
Sec. 312. Projects, plans, and reports. 
Subtitle C—Reclamation Projects for Renewable Energy To Reduce 
Evaporation Loss 
Sec. 320. Findings and purpose. 
Sec. 321. Definitions. 
Sec. 322. Evaluation and report. 
Sec. 323. Development of solar and wind energy on covered land. 
Sec. 324. Royalties. 
Sec. 325. Disposition of royalty revenue. 
Subtitle D—Improved Reclamation Crop Data 
Sec. 331. Definitions. 
Sec. 332. Determination of planting of water-intense permanent crops. 
Sec. 333. Report related to water-intense permanent crops. 
Subtitle E—Improved Oversight of State Injection Wells 
Sec. 341. Amendment to the Safe Drinking Water Act. 
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Subtitle F—Combating Water Theft for Illegal Marijuana Cultivation 
Sec. 351. Policy directive on illegal water diversion for marijuana cultivation. 
Sec. 352. Environmental reporting requirements for Domestic Cannabis Eradi-
cation program. 
Sec. 353. Trespass marijuana location registry. 
Sec. 354. Funding for remediation of trespass marijuana sites. 
Sec. 355. Voluntary guidelines. 
Sec. 356. Research program. 
Subtitle G—SECURE Water Amendments 
Sec. 361. Authorized activities; eligibility; authorization of appropriations. 
Sec. 362. Authorization of appropriations for national water availability and 
use assessment program. 
Subtitle H—Refundable Tax Credit for Water-Harvesting Systems 
Sec. 371. Refundable tax credit for water-harvesting systems. 
Subtitle I—Funding for Construction for Additional Project Benefits 
Sec. 381. Funding for construction for additional project benefits. 
TITLE IV—PLANNING FOR THE FUTURE 
Subtitle A—X–Prize for Desalination Breakthroughs 
Sec. 401. Short title. 
Sec. 402. Water technology award program. 
Subtitle B—Drought Planning Assistance Through NRCS and Reclamation 
Sec. 411. Drought Planning Assistance through NRCS and Reclamation. 
Subtitle C—Drought Preparedness for Fisheries 
Sec. 421. Drought Preparedness for Fisheries. 
Subtitle D—National Emergency Planning Response 
Sec. 431. National Emergency Planning Response. 
Subtitle E—Military Preparedness for Desalination 
Sec. 441. Report on desalinization technology. 
(c) FINDINGS.—Congress finds the following: 
(1) That, as expressed in the Water Supply Act 
of 1958, Congress has recognized the primary re-
sponsibilities of the States and local interests in de-
veloping water supplies for domestic, municipal, in-
dustrial, and other purposes, and that the Federal 
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Government should participate and cooperate in 
these projects. 
(2) That there is a long and robust legal prece-
dent of Federal deference to State primacy in water 
law and the legal system that States establish for re-
solving disputes over water use, with the Supreme 
Court finding in Kansas v. Colorado that ‘‘Congress 
cannot enforce either rule upon any state’’ in mat-
ters of the right regulation of water rights. 
(3) That, as established in the Proclamation of 
a State of Emergency issued by the Governor of the 
State of California on January 17, 2014, California 
is experiencing record dry conditions, all regions of 
the State are impacted by the drought, and these ex-
tremely dry conditions have persisted since 2012 and 
are likely to persist beyond this year and more regu-
larly into the future. 
(4) That the State of California is not alone in 
the prospects for long-term drought, and that the 
entire American West and Southwest are facing 
forecasts of prolonged droughts that will leave States 
facing major water shortages and catastrophic 
wildfires. 
(5) That the prolonged period of drought in the 
American West has also occurred with higher tem-
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peratures throughout the State of California, reduc-
ing snowpack and leading to what climate scientists 
conclude may be the most severe drought in over 
1,200 years. 
(6) That the Colorado River has been under 
drought conditions since 2000, and that the chances 
of a ‘‘megadrought’’ striking the Southwest and cen-
tral Great Plains are on the rise according to fore-
casts from climate scientists. 
(7) That the United States should utilize all ex-
isting authorities and resources made available by 
the Agricultural Act of 2014, that over $500 million 
in assistance has already been dedicated to assisting 
agricultural users and rural communities in Cali-
fornia and other drought-impacted areas, and that 
the United States Department of Agriculture should 
continue to prioritize such assistance to bring relief 
to drought-impacted areas. 
(8) That this drought emergency requires an 
immediate and credible response that respects State, 
local, and tribal law, and that the policies that re-
spond to the drought should not pit State against 
State, region against region, or stakeholders against 
one another. 
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(9) That Federal agencies should continue to 
operate the Bureau of Reclamation’s Central Valley 
Project in California in compliance with all Federal 
and State laws, including biological opinions, while 
working with the State to maximize operational 
flexibility in order to deliver as much water as rea-
sonably possible to drought-impacted areas and min-
imize the harm suffered by fish and wildlife as a re-
sult of the drought. 
(10) That Congress recognizes the range of sep-
arate, distinct Federal agencies with authorities and 
resources that play a role in water supply, including 
treatment and remediation of groundwater, surface 
water storage, water recycling and reuse, and other 
clean water infrastructure, and that to avoid dupli-
cation and ensure the efficiency and effectiveness of 
these various Federal roles, there is a need for im-
proved coordination, streamlining, and collaboration, 
both among Federal agencies and with drought-im-
pacted States and localities. 
(11) That it is the policy of the United States 
to respect California’s coequal goals, established by 
the Delta Reform Act of 2009, of providing a more 
reliable water supply for California and protecting, 
restoring, and enhancing the Delta ecosystem, and 
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that these coequal goals shall be achieved in a man-
ner that protects and enhances the unique cultural, 
recreational, natural resource, and agricultural val-
ues of the Delta as an evolving place. 
(12) That the State of California, in CA Water 
Code Section 85021, has established a policy to re-
duce reliance on the Delta in meeting California’s 
future water supply needs through a statewide strat-
egy of investing in improved regional supplies, con-
servation, and water use efficiency, that California 
law directs each region that depends on water from 
the Delta watershed to improve its regional self-reli-
ance for water through investment in water use effi-
ciency, water recycling, advanced water technologies, 
local and regional water supply projects, and im-
proved regional coordination of local and regional 
water supply efforts, and that it is the intent of 
Congress to ensure that Federal programs, policies, 
and investments respect and compliment, and do not 
undermine or conflict with, California’s policy of re-
ducing reliance on Delta diversions. 
(13) That the Reclamation Fund was estab-
lished in 1902 with the expressed purpose of pro-
viding for the construction and maintenance of 
water infrastructure for the economic development of 
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the western States and territories, with revenues de-
posited into the fund out of public land sales within 
these western States and territories. 
(14) That since 1902, the Reclamation Fund 
has been supplemented with additional revenues 
from Federal water resources development and min-
eral and natural resource leases on Federal lands, 
such that the surplus within the Reclamation Fund 
now exceeds $10 billion. 
(15) That the Reclamation Fund represents a 
transfer of a portion of receipts from Federal lands 
and Federal natural resources in the West back to 
the West for water development, and that in this 
time of drought the Reclamation Fund’s surplus 
should be used to assist the West in meeting its 
water needs for public health and safety, for expand-
ing water recycling, reuse, and reclamation, for 
meeting the emergency needs of communities im-
pacted by the drought, and for developing long term 
solutions to meet the impacts of climate change on 
this already arid region of the country. 
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TITLE I—EMERGENCY DROUGHT 
RESPONSE APPROPRIATIONS 
FROM RECLAMATION FUND 
SEC. 101. APPROPRIATIONS TO BE DERIVED FROM REC-
LAMATION FUND. 
Amounts made available under this title shall be de-
rived from the reclamation fund established by section 1 
of the Act of June 17, 1902 (42 U.S.C. 391; popularly 
known as the ‘‘Reclamation Act’’), and shall remain avail-
able until expended. 
SEC. 
102. 
SUPPLEMENTAL 
APPROPRIATIONS 
FOR 
DROUGHT RELIEF. 
(a) IN GENERAL.—Subject to subsection (b), the fol-
lowing sums are appropriated, out of any money in the 
Treasury not otherwise appropriated, for fiscal year 2015: 
(1) WATER
AND
RELATED
RESOURCES.—For 
an additional amount for ‘‘Department of the Inte-
rior—Bureau of Reclamation—Water and Related 
Resources’’, $300,000,000, of which not less than 
$100,000,000 shall be for water reclamation and 
reuse projects authorized under title XVI of Public 
Law 102–575; of which not less than $100,000,000 
shall be for WaterSMART for assistance under the 
Reclamation States Emergency Drought Relief Act 
of 1991 (43 U.S.C. 2201 et seq.); and of which not 
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less than $50,000,000 shall be for water acquisition, 
water conveyance, and facilities construction under 
the Refuge Water Supply Program: Provided, That 
funds provided under this heading may be used for 
recycled water projects without regard to whether 
such projects are otherwise authorized under law: 
Provided further, That sufficient funds are spent on 
the completion of CALFED feasibility studies de-
scribed in section 103(d)(1)(A) of Public Law 108– 
361 (118 Stat. 1684) that have the financing and 
feasibility to be under construction within 10 years, 
and that for the purposes of this Act the Federal 
cost share of such feasibility studies shall be no less 
than 75% and that the cost share waiver for such 
feasibility studies shall extend to December 31, 
2017. 
(2) HAZARDOUS SUBSTANCE SUPERFUND.—For 
an additional amount for ‘‘Environmental Protection 
Agency—Hazardous 
Substance 
Superfund’’, 
$300,000,000 for the cleanup of polluted ground-
water supplies. 
(3) RURAL WATER AND WASTE DISPOSAL PRO-
GRAM
ACCOUNT.—For an additional amount for 
‘‘Department of Agriculture—Rural Utilities Serv-
ice—Rural Water and Waste Disposal Program Ac-
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count’’, $5,000,000 for the cost of direct and guar-
anteed loans and grants for the rural water, waste-
water, and waste disposal programs authorized by 
sections 306 and 310B or described in section 
381E(d)(2) of the Consolidated Farm and Rural De-
velopment Act. 
(4) DRUG ENFORCEMENT ADMINISTRATION.— 
For an additional amount for ‘‘Department of Jus-
tice—Drug 
Enforcement 
Administration’’, 
$3,000,000 for the Domestic Cannabis Eradication 
and Suppression Program to assist State or local 
law enforcement agencies in the suppression of can-
nabis operations that are conducted on public lands 
or that intentionally trespass on the property of an-
other that also divert, redirect, obstruct, drain, or 
impound water supply. 
(5) ARMY CORPS OF ENGINEERS.—For an addi-
tional amount for the Army Corps of Engineers, 
$40,000,000 to carry out section 5039 of the Water 
Resources and Development Act of 2007 (33 U.S.C. 
2201 et seq.). 
(6) LAND AND WATER CONSERVATION FUND.— 
For an additional amount for ‘‘Land and Water 
Conservation Fund’’, $100,000,000 for the imple-
mentation of projects under the Land and Water 
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Conservation Fund Act of 1965 in drought-affected 
States that reduce fire risk, improve water quality or 
downstream water quantity, or expand ground water 
recharge capacity. 
(7) LOW-INCOME
MIGRANT
AND
SEASONAL 
FARMWORKERS.—For an additional amount for the 
Department of Agriculture, $25,000,000 for emer-
gency grants to assist low-income migrant and sea-
sonal farmworkers under section 2281 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 
(42 U.S.C. 5177a) to address impacts of drought 
upon declaration of a natural disaster under section 
321(a) of the Consolidated Farm and Rural Devel-
opment Act (7 U.S.C. 1961(a)) or for the same pur-
poses in counties that are contiguous to a designated 
natural disaster area. 
(b) DROUGHT PRIORITIZATION.—Each amount ap-
propriated under subsection (a) shall be used in States 
impacted by drought, with an emphasis on projects that 
will provide additional water supplies most expeditiously 
to areas at risk of having an inadequate supply of water 
for public health and safety purposes or to improve resil-
iency to drought, or projects that provide relief to drought- 
affected communities facing unemployment and economic 
dislocation. 
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(c) EMERGENCY DESIGNATION.—Each amount ap-
propriated under subsection (a) is designated by the Con-
gress as being for an emergency requirement pursuant to 
section 251(b)(2)(A)(i) of the Balanced Budget and 
Emergency Deficit Control Act of 1985. 
(d) GAO STUDY.— 
(1) IN
GENERAL.—The Comptroller General 
shall conduct a comprehensive study on Federal in-
vestments in clean water and wastewater infrastruc-
ture, addressing duplicative and fragmented pro-
grams. The report shall include— 
(A) a description of how Federal agencies, 
including the Army Corps of Engineers, the En-
vironmental Protection Agency, the Bureau of 
Reclamation, the Rural Utilities Service, and 
other relevant agencies, coordinate their efforts 
to address nationally, regionally, or locally iden-
tified needs or priorities in an efficient and ef-
fective manner; and 
(B) an evaluation of the adequacy of Fed-
eral coordination in meeting the needs of tribal 
lands. 
(2) REPORT TO CONGRESS.— Not later than 1 
year after the date of the enactment of this Act, the 
Comptroller General shall submit to Congress a re-
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port containing the results of the study required 
under paragraph (1) and any recommendations 
based on such study. 
SEC. 103. SUPPLEMENTAL APPROPRIATIONS FOR THE EN-
VIRONMENTAL PROTECTION AGENCY. 
The following sums are appropriated, out of any 
money in the Treasury not otherwise appropriated, for fis-
cal year 2015: 
ENVIRONMENTAL PROTECTION AGENCY 
STATE AND TRIBAL ASSISTANCE GRANTS 
For an additional amount for ‘‘State and Tribal As-
sistance Grants’’, $500,000,000, of which $400,000,000 
shall be for making capitalization grants for the State 
water pollution control revolving funds under title VI of 
the Federal Water Pollution Control Act; and of which 
$100,000,000 shall be for making capitalization grants for 
the State drinking water treatment revolving loan funds 
under section 1452 of the Safe Drinking Water Act: Pro-
vided, That notwithstanding the time period specified in 
section 603(d) (1)(A) of the Federal Water Pollution Con-
trol Act and section 1452(f)(1)(B)(i) of the Safe Drinking 
Water Act, loans made by such funds shall be authorized 
for 40-year terms: Provided further, That notwithstanding 
the formula or allotments set forth in section 604 of the 
Federal Water Pollution Control Act and section 
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1452(a)(1)(D) of the Safe Drinking Water Act, loans 
made by such funds shall be distributed based on an as-
sessment of the immediate need in States impacted by 
drought, with an emphasis on projects that will provide 
additional water supplies most expeditiously to areas that 
are at risk of having an inadequate supply of water for 
public health and safety purposes or to improve resiliency 
to drought, including projects to increase efficiency and 
conservation by end users: Provided further, That to the 
maximum extent practicable, highest priority to the loans 
made with such funds shall be given to projects that have 
been approved by, and have previously received funding 
from, State and local water agencies: Provided further, 
That such amount is designated by the Congress as being 
for an emergency requirement pursuant to section 
251(b)(2)(A)(i) of the Balanced Budget and Emergency 
Deficit Control Act of 1985. 
SEC. 104. SUPPLEMENTAL APPROPRIATIONS FOR THE 
WATER INFRASTRUCTURE FINANCE AND IN-
NOVATION ACT PROGRAM. 
The following sums are appropriated, out of any 
money in the Treasury not otherwise appropriated, for fis-
cal year 2015: 
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ENVIRONMENTAL PROTECTION AGENCY 
STATE AND TRIBAL ASSISTANCE GRANTS 
For an additional amount for ‘‘State and Tribal As-
sistance Grants’’, $20,000,000 to carry out the Water In-
frastructure Finance and Innovation Act of 2014: Pro-
vided, That loans made by such funds shall be distributed 
based on an assessment of the immediate need in States 
impacted by drought, with an emphasis on projects that 
will provide additional water supplies most expeditiously 
to areas that are at risk of having an inadequate supply 
of water for public health and safety purposes or to im-
prove resiliency to drought, including projects to increase 
efficiency and conservation by end users: Provided further, 
That the limitations imposed by sections 5028(a)(5) and 
5029(b)(2)(A) of the Water Resources Reform and Devel-
opment Act of 2014 shall not apply with respect to a 
project receiving such funds in any State with a drought 
declaration: Provided further, That notwithstanding sec-
tion 5029(b)(4) of the Water Resources Reform and De-
velopment Act of 2014, the interest rate for 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 execu-
tion of the loan agreement: Provided further, That not-
withstanding section 5028(a)(2)(A) of the Water Re-
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sources Reform and Development Act of 2014, the eligible 
project costs of a project shall be reasonably anticipated 
to be not less than $10,000,000: Provided further, That 
such amount is designated by the Congress as being for 
an 
emergency 
requirement 
pursuant 
to 
section 
251(b)(2)(A)(i) of the Balanced Budget and Emergency 
Deficit Control Act of 1985. 
TITLE II—NEW WATER INFRA-
STRUCTURE 
PROGRAM 
AU-
THORIZATIONS 
Subtitle A—New Water Recycling 
and 
Reclamation 
Program 
Through EPA 
SEC. 201. SHORT TITLE; FINDINGS; PURPOSES. 
(a) SHORT TITLE.—This subtitle may be cited as the 
‘‘National Water Recycling and Reclamation Act of 
2015’’. 
(b) FINDINGS.—Congress finds that— 
(1) water supply, wastewater, sanitation, and 
sewage agencies across the Nation are developing 
and investing in water reuse and recycling projects; 
(2) almost 900,000 acre-feet of annual water 
supply are in development through these projects 
and could be expeditiously constructed with in-
creased Federal investment; and 
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(3) in California alone, there are water reuse 
and recycling projects that could add over 500,000 
acre-feet of annual water supply. 
(c) PURPOSES.—It is the purpose of this subtitle to 
expand investments in water reuse and recycling projects 
nationwide. 
SEC. 202. NATIONAL WATER RECYCLING AND RECLAMA-
TION PROGRAM. 
(a) ESTABLISHMENT.—The Administrator of the En-
vironmental Protection Agency shall establish and carry 
out a National Water Recycling and Reclamation Program 
to provide grants to eligible entities for water recycling 
and reclamation projects. 
(b) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) ELIGIBLE
COSTS.—The term ‘‘eligible 
costs’’ means amounts substantially all of which are 
paid by, or for the account of, an eligible entity in 
connection with a project, including the cost of— 
(A) development phase activities, including 
planning, feasibility analysis, revenue fore-
casting, environmental review, permitting, pre-
liminary engineering and design work, and 
other preconstruction activities; 
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(B) construction, reconstruction, rehabili-
tation, replacement, and acquisition of real 
property (including land related to the project 
and improvements to land), environment miti-
gation, construction contingencies, and acquisi-
tion of equipment; 
(C) capitalized interest necessary to meet 
market requirements, reasonably required re-
serve funds, capital issuance expenses, and 
other carrying costs during construction; and 
(D) reimbursement for costs described in 
subparagraphs (A) through (C) incurred prior 
to the date of enactment of this Act. 
(2) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means a corporation, partnership, joint venture, 
trust, public or investor-owned utility, private entity, 
government entity, agency, or instrumentality, tribal 
government, or any other reclamation and reuse en-
tity, as determined by the Administrator. 
(3) PROGRAM.—The term ‘‘program’’ means 
the National Water Recycling and Reclamation Pro-
gram established under this section. 
(c) ELIGIBILITY.— 
(1) PROJECT COSTS.—To be eligible for assist-
ance under the program, a water recycling and rec-
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lamation project shall have total eligible costs that 
are reasonably anticipated to exceed $1,000,000. 
(2) PROJECT SPONSOR.—To be eligible for as-
sistance under the program, a water recycling and 
reclamation project shall have a project sponsor 
that— 
(A) is an eligible entity; 
(B) submits to the Administrator an appli-
cation for the project; and 
(C) demonstrates a source for non-Federal 
revenues that is sufficient to satisfy the non- 
Federal share of the cost of the project. 
(d) COMPETITIVE GRANT SELECTION.— 
(1) IN GENERAL.—The Administrator shall— 
(A) establish criteria for selecting among 
projects that meet the eligibility criteria speci-
fied in subsection (c); 
(B) conduct a national solicitation for ap-
plications; and 
(C) award grants on a competitive basis. 
(2) SELECTION CRITERIA.—The selection cri-
teria shall include the following: 
(A) The extent to which the project ad-
dresses near- and long-term water demand and 
supply, protects the environment, or otherwise 
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enhances the overall water reclamation and 
reuse system. 
(B) The extent to which the project en-
hances the return on the Federal investment 
through the production of new, highly renew-
able water supplies. 
(C) The likelihood that financial assistance 
under the program will 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 
measures that enhance the efficiency of the 
project. 
(3) DEADLINES.—The Administrator shall— 
(A) publish the selection criteria under 
paragraph (1) in the Federal Register not later 
than 90 days after the date of enactment of 
this Act; 
(B) require that applications seeking finan-
cial assistance under the program be submitted 
not later than 180 days after the date of publi-
cation of the selection criteria under subpara-
graph (A); and 
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(C) provide notice of approved project ap-
plications under the program not later than 1 
year after the date of enactment of this Act. 
(e) FEDERAL SHARE.—The Federal share of the cost 
of a project receiving financial assistance under the pro-
gram may not exceed 80 percent. 
(f) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There is authorized to be 
appropriated to carry out this section $500,000,000 
for each of fiscal years 2016 through 2020. Such 
sums shall remain available until expended. 
(2) ADMINISTRATIVE EXPENSES.—From funds 
made available to carry out this section for a fiscal 
year, the Administrator may use not to exceed 2 
percent of the funds for the costs of administering 
this section. 
(g) REPORTS TO CONGRESS.—Not later than October 
1, 2016, and every 2 years thereafter, the Administrator 
shall submit to Congress a report summarizing the finan-
cial performance of projects that are receiving, or have re-
ceived, assistance under the program. 
(h) REGULATIONS.—The Administrator may issue 
such regulations as the Administrator determines appro-
priate to carry out this section. 
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(i) FAILURE TO MEET DEADLINE.—If the Adminis-
trator does not meet a deadline under subsection (d)(3), 
the Administrator shall transfer all funds made available 
for the program so as to make such funds available for 
the purpose of making capitalization grants for water re-
cycling and reclamation projects under the State water 
pollution revolving loan fund program under title VI of 
the Federal Water Pollution Control Act (33 U.S.C. 1381 
et seq.) and the State drinking water treatment revolving 
loan fund program under section 1452 of the Safe Drink-
ing Water Act (42 U.S.C. 300j–12). 
Subtitle 
B—Reclamation 
Infra-
structure Finance and Innova-
tion Act (RIFIA) 
SEC. 210. SHORT TITLE; PURPOSES; DEFINITIONS. 
(a) SHORT TITLE.—This subtitle may be cited as the 
‘‘Reclamation Infrastructure Finance and Innovation Act’’ 
or ‘‘RIFIA’’. 
(b) 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-
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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, with the goal of every $100 
million in secured loans being leveraged for $1 bil-
lion in water in water infrastructure financing. 
(c) DEFINITIONS.—In this subtitle: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) a corporation; 
(B) a partnership; 
(C) a joint venture; 
(D) a trust; 
(E) a State or local governmental entity, 
agency, or instrumentality; and 
(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. 
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(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 subtitle 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.))). 
(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 
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(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. 
(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 
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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; 
(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 
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issued by an obligor and funded by the Secretary in 
connection with the financing of a project under 
chapter 1. 
(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. 
CHAPTER 1—INNOVATIVE FINANCING 
SEC. 211. PURPOSES. 
The purposes of this chapter are— 
(1) to promote increased development of critical 
water resources infrastructure by establishing addi-
tional opportunities for financing water resources 
projects; 
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(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 to an eligible entity under this chapter 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. 
(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. 
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SEC. 213. APPLICATIONS. 
To be eligible to receive assistance under this chapter, 
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. 214. ELIGIBILITY FOR ASSISTANCE. 
(a) ELIGIBLE PROJECTS.—The following projects 
may be carried out using assistance made available under 
this chapter: 
(1) A project for the reclamation and reuse of 
municipal, industrial, domestic, and agricultural 
wastewater, and naturally impaired ground, which 
the Secretary, acting through the Commissioner of 
Reclamation, is authorized to undertake. 
(2) Any water infrastructure project not specifi-
cally 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, agricul-
tural, environmental, or municipal and indus-
trial use; and 
(B) is otherwise eligible for assistance 
under this chapter. 
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(3) A new water infrastructure facility project, 
including a water conduit, pipeline, canal, pumping, 
power, and associated facilities. 
(4) A project for enhanced energy efficiency in 
the operation of a water system. 
(5) A project for accelerated repair and replace-
ment of an aging water distribution facility. 
(6) A brackish or sea water desalination 
project. 
(7) 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 (6). 
(8) A combination of projects, each of which is 
eligible under paragraphs (1) through (7), for which 
an eligible entity submits a single application. 
(b) ACTIVITIES ELIGIBLE
FOR ASSISTANCE.—For 
purposes of this chapter, an eligible activity with respect 
to an eligible project under subsection (a) includes the cost 
of— 
(1) development-phase activities, including plan-
ning, feasibility analysis, revenue forecasting, envi-
ronmental review, permitting, transaction costs, pre-
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liminary 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 im-
provements to land), environmental mitigation, con-
struction contingencies, and acquisition of equip-
ment; 
(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, 
long-term project obligations, or a secured loan, loan 
guarantee, or other credit enhancement made under 
this chapter; 
(6) reimbursement or success payments to any 
public or private entity that achieves predetermined 
outcomes on a pay-for-performance or pay-for-suc-
cess basis; and 
(7) grants, loans, or credit enhancement for 
community development financial institutions, green 
banks, and other financial intermediaries providing 
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ongoing finance for projects that meet the purposes 
of this chapter. 
SEC. 215. DETERMINATION OF ELIGIBILITY AND PROJECT 
SELECTION. 
(a) ELIGIBILITY REQUIREMENTS.—To be eligible to 
receive financial assistance under this chapter, a project 
shall meet the following criteria, as determined by the Sec-
retary: 
(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, to ensure repayment. 
(B) PRELIMINARY RATING OPINION LET-
TER.—The Secretary shall require each appli-
cant to provide a preliminary rating opinion let-
ter from at least 1 rating agency indicating that 
the senior obligations of the project (which may 
be the Federal credit instrument) have the po-
tential to achieve an investment-grade rating. 
(2) ELIGIBLE
PROJECT
COSTS.—The eligible 
project costs of a project and other projects in a wa-
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tershed shall be reasonably anticipated to be not less 
than $10,000,000. 
(3) DEDICATED REVENUE SOURCES.—The Fed-
eral credit instrument for the project shall be repay-
able from dedicated revenue sources that also secure 
the project obligations. 
(4) PUBLIC SPONSORSHIP OF PRIVATE ENTI-
TIES.—In the case of a project carried out by an en-
tity that is not a State or local government or an 
agency or instrumentality of a State or local govern-
ment, the project shall be publicly sponsored. 
(b) SELECTION CRITERIA.— 
(1) ESTABLISHMENT.—The Secretary shall es-
tablish criteria for the selection of projects that meet 
the eligibility requirements of subsection (a), in ac-
cordance with paragraph (2). 
(2) CRITERIA.—The selection criteria shall in-
clude the following: 
(A) The extent to which the project is na-
tionally or regionally significant. 
(B) The extent to which assistance under 
this section would foster innovative public-pri-
vate partnerships and attract private debt or 
equity investment. 
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(C) The likelihood that assistance under 
this section would enable the project to proceed 
at an earlier date than the project would other-
wise be able to proceed. 
(D) The extent to which the project uses 
new or innovative approaches. 
(E) The extent to which projects track evi-
dence about the effectiveness of the 1 or more 
projects financed and the availability of the evi-
dence and project information to the public to 
facilitate replication. 
(F) The amount of budget authority re-
quired to fund the Federal credit instrument 
made available under this chapter. 
(G) The extent to which the project helps 
maintain or protect the environment. 
(H) The extent to which the project sup-
ports the local economy and provides local jobs. 
(3) PRIORITY.—The Secretary shall prioritize 
projects that promote wastewater recycling, agricul-
tural or urban water conservation and efficiency, 
stormwater capture, or other innovative projects that 
reduce reliance on surface and groundwater supplies. 
(c) RECEIPT OF OTHER FEDERAL FUNDING.—Re-
ceipt of a Federal grant or contract or other Federal fund-
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ing to support an eligible project shall not preclude the 
project from being eligible for assistance under this chap-
ter. 
(d) FEDERAL REQUIREMENTS.—Nothing in this sec-
tion supersedes the applicability of other requirements of 
Federal law (including regulations). 
SEC. 216. SECURED LOANS. 
(a) AGREEMENTS.— 
(1) IN GENERAL.—Subject to paragraphs (2) 
through (4), the Secretary may enter into agree-
ments 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 215; 
(B) to refinance interim construction fi-
nancing of eligible project costs of any project 
selected under section 215; or 
(C) to refinance long-term project obliga-
tions or Federal credit instruments, if that refi-
nancing provides additional funding capacity for 
the completion, enhancement, or expansion of 
any project that— 
(i) is selected under section 215; or 
(ii) otherwise meets the requirements 
of section 215. 
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(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 215(a)(1)(B), shall determine an 
appropriate capital reserve subsidy amount for the 
secured loan, taking into account each such prelimi-
nary rating opinion letter. 
(4) 
INVESTMENT-GRADE
RATING
REQUIRE-
MENT.—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 rat-
ing. 
(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 (in-
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cluding requirements for audits), as the Secretary 
determines to be appropriate. 
(2) MAXIMUM AMOUNT.—The amount of a se-
cured 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 sen-
ior project obligations of the project. 
(3) PAYMENT.—A secured loan under this sec-
tion— 
(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 sup-
porting the project obligations; and 
(C) may have a lien on revenues described 
in subparagraph (A), subject to any lien secur-
ing project obligations. 
(4) INTEREST RATE.—The interest rate on a 
secured loan under this section shall be not more 
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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 expected date of sub-
stantial 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 
under section 217(b) 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 
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under this section, based on the projected cash flow 
from project revenues and other repayment sources. 
(2) COMMENCEMENT.—Scheduled loan repay-
ment 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 gen-
erate sufficient revenues to pay the scheduled 
loan repayments of principal and interest on the 
secured loan, the Secretary may allow the obli-
gor, subject to subparagraph (C), to add unpaid 
principal and interest to the outstanding bal-
ance of the secured loan. 
(B) INTEREST.—Any payment deferred 
under subparagraph (A) shall— 
(i) continue to accrue interest in ac-
cordance with subsection (b)(4) until fully 
repaid; and 
(ii) be scheduled to be amortized over 
the remaining term of the secured loan. 
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(C) CRITERIA.— 
(i) IN GENERAL.—Any payment defer-
ral under subparagraph (A) shall be con-
tingent on the project meeting such cri-
teria 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 ex-
cess revenues that remain after satisfying 
scheduled debt service requirements on the 
project obligations and secured loan and all de-
posit requirements under the terms of any trust 
agreement, bond resolution, or similar agree-
ment securing project obligations may be ap-
plied annually to prepay a secured loan under 
this section without penalty. 
(B) 
USE
OF
PROCEEDS
OF
REFI-
NANCING.—A secured loan under this section 
may be prepaid at any time without penalty 
from the proceeds of refinancing from non-Fed-
eral funding sources. 
(d) SALE OF SECURED LOANS.— 
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(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 en-
tity 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 se-
cured loan under this section, if the Secretary deter-
mines 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 se-
cured loan, except that the rate on the guaranteed 
loan and any prepayment features shall be nego-
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tiated 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 chapter. 
(b) CAPITAL RESERVE FUND.— 
(1) IN GENERAL.—There is hereby established 
in the Treasury of the United States the Reclama-
tion Loan Finance Capital Reserve Fund, which 
shall be available for deposit of capital reserve fees 
provided for under this subsection. Amounts depos-
ited shall be credited as offsetting collections. 
(2) CAPITAL RESERVE FEES.—To the extent re-
quired by appropriations Acts, the Secretary may as-
sess, collect, and spend capital reserve fees at a level 
that is sufficient to cover— 
(A) the costs of services of expert firms re-
tained pursuant to subsection (d); and 
(B) all or a portion of the costs to the 
Federal Government of servicing the Federal 
credit instruments provided under this chapter, 
including all or a portion of the outlays associ-
ated with the provision of the Federal credit in-
struments under this chapter. 
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(3) DETERMINATION OF FEE AMOUNTS.—The 
capital reserve fees shall be established at amounts 
that will result in the collection, during each fiscal 
year, of an amount that can be reasonably expected 
to equal the outlays associated with the provision of 
the Federal credit instruments under this chapter. 
(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 
chapter. 
(2) DUTIES.—A servicer appointed under para-
graph (1) shall act as the agent for the Secretary. 
(3) FEE.—A servicer appointed under para-
graph (1) shall receive a servicing fee, subject to ap-
proval by the Secretary. 
(d) ASSISTANCE FROM EXPERTS.—The Secretary 
may retain the services, including counsel, of any organi-
zation or entity with expertise in the field of municipal 
and project finance to assist in the underwriting and serv-
icing of Federal credit instruments provided under this 
chapter. 
(e) LOAN COORDINATION; INTERAGENCY COOPERA-
TION.—The Secretary— 
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(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 estab-
lished 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 Agri-
culture before promulgating criteria with respect to 
financial appraisal functions and loan guarantee ad-
ministration for activities carried out under this 
chapter; and 
(3) may enter into a memorandum of agree-
ment providing for Department of Agriculture finan-
cial appraisal functions and loan guarantee adminis-
tration for activities carried out under this chapter. 
SEC. 218. STATE AND LOCAL PERMITS. 
The provision of financial assistance for a project 
under this chapter shall not— 
(1) relieve any recipient of the assistance of any 
obligation to obtain any required State or local per-
mit 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 re-
turn on private equity invested in the project; or 
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(3) otherwise supersede any State or local law 
(including any regulation) applicable to the construc-
tion 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 chapter. 
SEC. 220. FUNDING. 
(a) IN GENERAL.—There is authorized to be appro-
priated to the Secretary to carry out this chapter 
$100,000,000 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 chapter, the Secretary may use 
for the administration of this chapter 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 Re-
sources of the Senate and the Committee on Natural Re-
sources of the House of Representatives a report summa-
rizing the financial performance and on-the-ground out-
comes of the projects that are receiving, or have received, 
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assistance under this chapter, including an assessment of 
whether the objectives of this chapter are being met. 
CHAPTER 
2—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 Ha-
waii 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 chapter or any other provision of law, including recy-
cled water projects not congressionally authorized— 
(1) to recycle wastewater or 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 pri-
ority 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; 
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(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 ad-
dress climate change and future demands; 
(5) where practicable— 
(A) provide flood control or recreation ben-
efits; and 
(B) include the development of incremental 
hydroelectric power generation; 
(6) include partnerships that go beyond political 
and institutional jurisdictions to support the effi-
cient 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 
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(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 enter-
ing into a financial assistance agreement under this sec-
tion shall— 
(1) hold title to all facilities constructed under 
this section; and 
(2) be solely responsible for the costs of oper-
ating and maintaining those facilities. 
(f) APPROVAL.—The Secretary may enter into a fi-
nancial assistance agreement under this section, if— 
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(1) the Secretary notifies Congress of the pro-
posed agreement at least 90 days before the date on 
which the Secretary enters into the agreement; and 
(2) Congress does not pass a joint resolution 
disapproving the agreement before such date. 
SEC. 232. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated $700,000,000 
to carry out this chapter. 
CHAPTER 3—RECLAMATION TITLE 
TRANSFER PROGRAM 
SEC. 241. SHORT TITLE; DEFINITIONS. 
(a) SHORT TITLE.—This chapter may be cited as the 
‘‘Reclamation Title Transfer Act of 2015’’. 
(b) DEFINITIONS.—In this chapter: 
(1) CONVEYED
PROPERTY.—The term ‘‘con-
veyed property’’ means an eligible facility that has 
been conveyed to a qualifying entity under section 
242(b)(1). 
(2) ELIGIBLE FACILITY.— 
(A) IN GENERAL.—The term ‘‘eligible fa-
cility’’ means a reclamation project or facility, 
or a portion of a reclamation project or facility, 
for which the United States holds title and that 
meets the criteria for potential transfer estab-
lished under section 244(a). 
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(B) INCLUSIONS.—The term ‘‘eligible facil-
ity’’ includes dams and appurtenant works, in-
frastructure, recreational facilities, buildings, 
distribution and drainage works, and associated 
land or interests in land or water. 
(3) QUALIFYING
ENTITY.—The term ‘‘quali-
fying entity’’ means a State, unit of local govern-
ment, Indian tribe, municipal corporation, quasi-mu-
nicipal corporation, or other entity (such as a water 
district) that, as determined by the Secretary, has 
the capacity to continue to manage the conveyed 
property for the same purposes that the conveyed 
property has been managed for under the reclama-
tion laws. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior, acting through the 
Commissioner of the Bureau of Reclamation. 
SEC. 242. AUTHORIZATION OF TITLE TRANSFER PROGRAM. 
(a) ESTABLISHMENT
OF TITLE TRANSFER PRO-
GRAM.—The Secretary may establish a program that— 
(1) identifies and analyzes the potential for 
public benefits from the transfer out of Federal own-
ership of eligible facilities, including analyses of the 
financial, operational, and environmental character-
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istics of the eligible facilities proposed for transfer; 
and 
(2) facilitates the transfer to qualifying entities 
of the title to eligible facilities to promote more effi-
cient management of water and water-related facili-
ties. 
(b) AUTHORIZATION TO TRANSFER TITLE TO ELIGI-
BLE FACILITIES.— 
(1) IN GENERAL.—The Secretary may convey 
to a qualifying entity all right, title, and interest of 
the United States in and to any eligible facility, sub-
ject to paragraphs (2) through (6), if— 
(A) the Secretary notifies Congress in writ-
ing of the proposed conveyance at least 90 days 
before the date on which the Secretary makes 
the conveyance; and 
(B) Congress does not pass a joint resolu-
tion disapproving the conveyance before such 
date. 
(2) RIGHT OF FIRST REFUSAL.—If the entity 
that operates an eligible facility at the time that the 
Secretary attempts to facilitate the transfer of title 
under subsection (a)(2) is a qualifying entity, that 
entity shall have the right of first refusal to receive 
the conveyance under paragraph (1). 
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(3) RESERVATION
OF
EASEMENT.—The Sec-
retary may reserve an easement over a conveyed 
property if the Secretary determines that the ease-
ment is necessary for the management of any inter-
ests retained by the Federal Government under this 
chapter. 
(4) MINERAL INTERESTS.— 
(A) RETENTION.—The Secretary shall re-
tain any mineral interests associated with a 
conveyed property. 
(B) MANAGEMENT.—The mineral interests 
retained under subparagraph (A) shall be man-
aged— 
(i) consistent with Federal law; and 
(ii) in a manner that would not inter-
fere with the purposes for which the rec-
lamation project was authorized. 
(5) INTERESTS
IN
WATER.—No interests in 
water shall be conveyed under this chapter unless 
the conveyance is provided for in writing in an 
agreement between the Secretary and the qualifying 
entity. 
(6) ADDITIONAL
CRITERIA.—Title transfers 
under this section shall be carried out consistent 
with— 
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(A) this chapter; and 
(B) any additional criteria or procedures 
that the Secretary determines to be in the pub-
lic interest. 
(c) RESTRICTIONS ON USE.—As a condition of ob-
taining title to an eligible facility, the qualifying entity 
shall agree to use the eligible facility for substantially the 
same purposes the eligible facility is being used for during 
the period in which the eligible facility was under reclama-
tion ownership. 
SEC. 243. COMPLIANCE WITH ENVIRONMENTAL AND HIS-
TORIC PRESERVATION LAWS. 
(a) IN GENERAL.—Before conveying eligible facilities 
under this chapter, the Secretary shall complete all actions 
required under all applicable laws, including— 
(1) the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.); 
(2) the Endangered Species Act of 1973 (16 
U.S.C. 1531 et seq.); and 
(3) the National Historic Preservation Act (16 
U.S.C. 470 et seq.). 
(b) LIMITATION ON CONVEYANCES.—The Secretary 
may not convey an eligible facility under this chapter if 
the Secretary determines, as part of a review conducted 
under the National Environmental Policy Act of 1969 and 
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(1) shall not be a project cost assignable to a 
reclamation project; and 
(2) shall be nonreimbursable. 
SEC. 249. TERMINATION OF AUTHORITY. 
The authority of the Secretary to carry out convey-
ances under this chapter shall terminate 15 years after 
the date of enactment of this Act. 
Subtitle C—Innovative Stormwater 
Capture Program 
SEC. 251. SHORT TITLE. 
This subtitle may be cited as the ‘‘Innovative 
Stormwater Infrastructure Act of 2015’’. 
SEC. 252. PURPOSES AND FINDINGS. 
Congress finds that— 
(1) many water resources in the United States 
are declining, particularly in urban and agricultural 
areas; 
(2) the decline of water resources is the result 
of— 
(A) an increase in population, water con-
sumption, and impermeable surfaces; and 
(B) the negative effects of urbanization, 
commercial and industrial activities, and in-
creasing and persistent droughts; 
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102 
consistent with the royalty established 
under this Act. 
(C) BIDDER
QUALIFICATIONS.—The Sec-
retary shall— 
(i) before conducting any lease sale 
under this subsection, establish qualifica-
tion requirements for bidders on a site of-
fered for lease that ensure that such bid-
ders, with respect to wind or solar energy 
projects— 
(I) are able to expeditiously de-
velop such a project on the site; 
(II) possess the financial re-
sources necessary to complete such a 
project; 
(III) possess knowledge of the 
technology needed to complete such a 
project; 
(IV) meet eligibility requirements 
that are substantially similar to the 
eligibility requirements for leasing 
that apply under the first section of 
the Mineral Leasing Act (30 U.S.C. 
181 et seq.); and 
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117 
(2) 25 percent shall be paid by the Secretary of 
the Treasury to the counties within the boundaries 
of which the royalties or bonuses are derived, to be 
allocated among such counties based on the percent-
age of covered land from which such royalties or bo-
nuses are derived in each county. 
(3) 25 percent shall be deposited into the Fish 
and Wildlife Restoration Fund established by sub-
section (b) and used in accordance with that sub-
section. 
(4) For the period that begins on the date of 
the enactment of this Act and ending on the date 
that is 15 years after the date of the enactment of 
this Act, 15 percent shall be paid by the Secretary 
of the Treasury directly to the State offices of the 
Bureau of Reclamation with jurisdiction over the 
areas of which the royalties or bonuses are derived 
for purposes of reducing the number of renewable 
energy permits that have not been processed before 
the date of the enactment of this Act, to be allocated 
among such offices based on the percentage of cov-
ered land from which the royalties or bonuses are 
derived in each State. 
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