and FEMP designated products shall be clearly identified 
and prominently displayed in any inventory or listing of 
products by the General Services Administration or the 
Defense Logistics Agency. The General Services Adminis-
tration and the Defense Logistics Agency shall supply only 
WaterSense products or FEMP designated products for 
all product categories covered by the WaterSense program 
or the Federal Energy Management Program, except in 
cases where the agency ordering a product specifies in 
writing that no WaterSense product or FEMP designated 
product is available to meet the buyer’s functional require-
ments, or that no WaterSense product or FEMP des-
ignated product is cost-effective for the intended applica-
tion over the life of the product, taking energy, water, and 
wastewater cost savings into account. 
(d) REGULATIONS.—Not later than 180 days after 
the date of enactment of this Act, the Administrator of 
the Environmental Protection Agency shall issue regula-
tions to carry out this section. 
SEC. 4. EARLY ADOPTER WATER EFFICIENT PRODUCTS IN-
CENTIVE PROGRAMS. 
(a) DEFINITIONS.—In this section: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency. 
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(2) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means a State government, local or county gov-
ernment, tribal government, wastewater or sewage 
utility, municipal water authority, energy utility, 
water utility, or nonprofit organization that meets 
the requirements of subsection (b). 
(3) INCENTIVE PROGRAM.—The term ‘‘incentive 
program’’ means a program for administering finan-
cial incentives for consumer purchase and installa-
tion of residential water efficient products and serv-
ices as described in subsection (b)(1). 
(4) RESIDENTIAL WATER EFFICIENT PRODUCT 
OR SERVICE.— 
(A) IN GENERAL.—The term ‘‘residential 
water efficient product or service’’ means a 
product or service for a single-family or multi-
family residence or its landscape that is rated 
for water efficiency and performance— 
(i) by the WaterSense program; or 
(ii) by an incentive program and ap-
proved by the Administrator. 
Categories of water efficient products and serv-
ices may include faucets, irrigation technologies 
and services, point-of-use water treatment de-
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vices, reuse, reclamation, and recycling tech-
nologies, toilets, and showerheads. 
(B) 
THIRD-PARTY
CERTIFICATION.—A 
product shall not be treated as a residential 
water efficient product until after the product— 
(i) is tested by an accredited third- 
party certifying body or laboratory in ac-
cordance with the WaterSense program; 
(ii) is certified by such body or labora-
tory as meeting the performance and effi-
ciency requirements of such program; and 
(iii) is authorized by such program to 
use its label. 
(5) STATE.—The term ‘‘State’’ means each of 
the several States of the United States, the District 
of Columbia, Puerto Rico, the United States Virgin 
Islands, Guam, American Samoa, and the Common-
wealth of the Northern Mariana Islands. 
(6) 
WATERSENSE
PROGRAM.—The 
term 
‘‘WaterSense program’’ means the program estab-
lished by section 2 of this Act. 
(b) ELIGIBLE ENTITIES.—An entity shall be eligible 
to receive an allocation under subsection (c) if the entity— 
(1) establishes (or has established) an incentive 
program to provide rebates, vouchers, other financial 
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incentives, or direct installs to consumers for the 
purchase and installation of residential water effi-
cient products or services; 
(2) submits an application for the allocation at 
such time, in such form, and containing such infor-
mation as the Administrator may require; and 
(3) provides assurances satisfactory to the Ad-
ministrator that the entity will use the allocation to 
supplement, but not supplant, funds made available 
to carry out the incentive program. 
(c) AMOUNT OF ALLOCATIONS.—For each fiscal year, 
the Administrator shall determine the amount to allocate 
to each eligible entity to carry out subsection (d) taking 
into consideration— 
(1) the population served by the eligible entity 
in the most recent calendar year for which data are 
available; 
(2) the targeted population of the eligible enti-
ty’s incentive program, such as general households, 
low-income households, or first-time homeowners, 
and the probable effectiveness of the incentive pro-
gram for that population; 
(3) for existing programs, the effectiveness of 
the incentive program in encouraging the adoption 
of water efficient products and services; and 
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(4) any prior year’s allocation to the eligible en-
tity that remains unused. 
(d) USE OF ALLOCATED FUNDS.—Funds allocated to 
an entity under subsection (c) may be used to pay up to 
50 percent of the cost of establishing and carrying out 
an incentive program. 
(e) FIXTURE RECYCLING.—Entities are encouraged 
to promote or implement fixture recycling programs to 
manage the disposal of older fixtures replaced due to the 
incentive program under this section. 
(f) ISSUANCE
OF REBATES.—Financial incentives 
may be provided to consumers that meet the requirements 
of the incentive program. The entity may issue all finan-
cial incentives directly to consumers or, with approval of 
the Administrator, delegate some or all financial incentive 
administration to other organizations including, but not 
limited to, local governments, municipal water authorities, 
and water utilities. The amount of a financial incentive 
shall be determined by the entity, taking into consider-
ation— 
(1) the amount of the allocation to the entity 
under subsection (c); 
(2) the amount of any Federal, State, or other 
organization’s tax or financial incentive available for 
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