Water Advanced Technologies for Efficient Resource Use Act of 2015

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Water Advanced Technologies for 
Efficient Resource Use Act of 2015''.

SEC. 2. WATERSENSE.

    (a) In General.--There is established within the Environmental 
Protection Agency a WaterSense program to identify and promote water 
efficient products, buildings and landscapes, and services in order--
            (1) to reduce water use;
            (2) to reduce the strain on water, wastewater, and 
        stormwater infrastructure;
            (3) to conserve energy used to pump, heat, transport, and 
        treat water; and
            (4) to preserve water resources for future generations,
through voluntary labeling of, or other forms of communications about, 
products, buildings and landscapes, and services that meet the highest 
water efficiency and performance standards.
    (b) Duties.--The Administrator of the Environmental Protection 
Agency shall--
            (1) promote WaterSense labeled products, buildings and 
        landscapes, and services in the market place as the preferred 
        technologies and services for--
                    (A) reducing water use; and
                    (B) ensuring product and service performance;
            (2) work to enhance public awareness of the WaterSense 
        label through public outreach, education, water recycling and 
        reuse technology research and development, and other means;
            (3) establish and maintain performance standards so that 
        products, buildings and landscapes, and services labeled with 
        the WaterSense label perform as well or better than their less 
        efficient counterparts;
            (4) publicize the importance of proper installation of 
        WaterSense plumbing products by a WaterSense-certified or, if 
        WaterSense certification guidelines do not exist, licensed 
        plumber or mechanical contractor, and the installation, 
        maintenance, and audit of WaterSense irrigation systems by a 
        WaterSense-certified irrigation professional to ensure optimal 
        performance;
            (5) preserve the integrity of the WaterSense label;
            (6) regularly review and, when appropriate, update 
        WaterSense criteria for categories of products, buildings and 
        landscapes, and services, at least once every four years;
            (7) to the maximum extent practicable, regularly collect 
        and make available to the public summary data on the production 
        and relative market shares of WaterSense labeled products, 
        buildings and landscapes, and services, at least annually;
            (8) to the maximum extent practicable, regularly estimate 
        and make available to the public the water and energy savings 
        attributable to the use of WaterSense labeled products, 
        buildings and landscapes, and services, at least annually;
            (9) solicit comments from interested parties and the public 
        prior to establishing or revising a WaterSense category, 
        specification, installation criterion, or other criterion (or 
        prior to effective dates for any such category, specification, 
        installation criterion, or other criterion);
            (10) provide reasonable notice to interested parties and 
        the public of any changes (including effective dates), on the 
        adoption of a new or revised category, specification, 
        installation criterion, or other criterion, along with--
                    (A) an explanation of changes; and
                    (B) as appropriate, responses to comments submitted 
                by interested parties;
            (11) provide appropriate lead time (as determined by the 
        Administrator) prior to the applicable effective date for a new 
        or significant revision to a category, specification, 
        installation criterion, 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; and
            (12) identify and, where appropriate, implement other 
        voluntary approaches, such as labeling waterless devices that 
        perform the same function as a water consuming product or 
        encouraging reuse, reclamation, and recycling technologies, in 
        commercial, institutional, residential, municipal, and 
        industrial sectors to improve water efficiency or lower water 
        use while meeting the performance standards established under 
        paragraph (3).
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated $7,500,000 for fiscal year 2016, $10,000,000 for fiscal 
year 2017, $20,000,000 for fiscal year 2018, and $50,000,000 for fiscal 
year 2019 and each year thereafter, adjusted for inflation, to carry 
out this section.

SEC. 3. FEDERAL PROCUREMENT OF WATER EFFICIENT PRODUCTS.

    (a) Definitions.--In this section:
            (1) Agency.--The term ``agency'' has the meaning given that 
        term in section 7902(a) of title 5, United States Code.
            (2) Watersense product or service.--The term ``WaterSense 
        product or service'' means a product or service that is rated 
        for water efficiency under the WaterSense program.
            (3) Watersense program.--The term ``WaterSense program'' 
        means the program established by section 2 of this Act.
            (4) FEMP designated product.--The term ``FEMP designated 
        product'' means a product that is designated under the Federal 
        Energy Management Program of the Department of Energy as being 
        among the highest 25 percent of equivalent products for 
        efficiency.
            (5) Product and service.--The terms ``product'' and 
        ``service'' do not include any water consuming product or 
        service designed or procured for combat or combat-related 
        missions. The terms also exclude products or services already 
        covered by the Federal procurement regulations established 
        under section 553 of the National Energy Conservation Policy 
        Act (42 U.S.C. 8259b).
    (b) Procurement of Water Efficient Products.--
            (1) Requirement.--To meet the requirements of an agency for 
        a water consuming product or service, the head of the agency 
        shall, except as provided in paragraph (2), procure--
                    (A) a WaterSense product or service; or
                    (B) a FEMP designated product.
        A WaterSense plumbing product should preferably, when possible, 
        be installed by a WaterSense-certified or, if WaterSense 
        certification guidelines do not exist, licensed plumber or 
        mechanical contractor, and a WaterSense irrigation system 
        should preferably, when possible, be installed, maintained, and 
        audited by a WaterSense-certified irrigation professional to 
        ensure optimal performance.
            (2) Exceptions.--The head of an agency is not required to 
        procure a WaterSense product or service or FEMP designated 
        product under paragraph (1) if the head of the agency finds in 
        writing that--
                    (A) a WaterSense product or service or FEMP 
                designated product is not cost-effective over the life 
                of the product, taking current and future energy, 
                water, and wastewater cost savings into account; or
                    (B) no WaterSense product or service or FEMP 
                designated product is reasonably available that meets 
                the functional requirements of the agency.
            (3) Procurement planning.--The head of an agency shall 
        incorporate into the specifications for all procurements 
        involving water consuming products and systems, including guide 
        specifications, project specifications, and construction, 
        renovation, and services contracts that include provision of 
        water consuming products and systems, and into the factors for 
        the evaluation of offers received for the procurement, criteria 
        used for rating WaterSense products and services and FEMP 
        designated products. The head of an agency shall consider, to 
        the maximum extent practicable, additional measures for 
        reducing agency water consumption, including water reuse, 
        reclamation, and recycling technologies, leak detection and 
        repair, and use of waterless products that perform similar 
        functions to existing water-consuming products.
    (c) Listing of Water Efficient Products in Federal Catalogs.--
WaterSense products and services 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 Administration 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 requirements, or that no WaterSense product or FEMP 
designated product is cost-effective for the intended application 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 regulations to carry out this section.

SEC. 4. EARLY ADOPTER WATER EFFICIENT PRODUCTS INCENTIVE PROGRAMS.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Eligible entity.--The term ``eligible entity'' means a 
        State government, local or county government, 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 financial incentives for 
        consumer purchase and installation of residential water 
        efficient products and services 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 multifamily residence or 
                its landscape that is rated for water efficiency and 
                performance--
                            (i) by the WaterSense program; or
                            (ii) by an incentive program and approved 
                        by the Administrator.
                Categories of water efficient products and services may 
                include faucets, irrigation technologies and services, 
                point-of-use water treatment devices, reuse, 
                reclamation, and recycling technologies, 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 accordance 
                        with the WaterSense program;
                            (ii) is certified by such body or 
                        laboratory as meeting the performance and 
                        efficiency 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 Commonwealth of the Northern Mariana Islands.
            (6) Watersense program.--The term ``WaterSense program'' 
        means the program established 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 incentives, or 
        direct installs to consumers for the purchase and installation 
        of residential water efficient products or services;
            (2) submits an application for the allocation at such time, 
        in such form, and containing such information as the 
        Administrator may require; and
            (3) provides assurances satisfactory to the Administrator 
        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 entity's 
        incentive program, such as general households, low-income 
        households, or first-time homeowners, and the probable 
        effectiveness of the incentive program for that population;
            (3) for existing programs, the effectiveness of the 
        incentive program in encouraging the adoption of water 
        efficient products and services; and
            (4) any prior year's allocation to the eligible entity 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 financial 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 consideration--
            (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 the 
        purchase of the residential water efficient product or service;
            (3) the amount necessary to change consumer behavior to 
        purchase water efficient products and services; and
            (4) the consumer expenditures for onsite preparation, 
        assembly, and original installation of the product.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator to carry out this section $50,000,000 
for fiscal year 2016, $100,000,000 for fiscal year 2017, $150,000,000 
for fiscal year 2018, $100,000,000 for fiscal year 2019, and 
$50,000,000 for fiscal year 2020.

SEC. 5. EARLY ADOPTER WATER EFFICIENT PRODUCTS INCENTIVE PROGRAMS.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting before section 
140 the following new section:

``SEC. 139F. EARLY ADOPTER WATER EFFICIENT PRODUCTS INCENTIVE PROGRAMS.

    ``(a) In General.--In the case of an individual, gross income does 
not include any amount received under an incentive program under 
section 4 of the Water Advanced Technologies for Efficient Resource Use 
Act of 2015.
    ``(b) Denial of Double Benefit.--Notwithstanding any other 
provision of this subtitle, no deduction or credit shall be allowed 
for, or by reason of, any expenditure to the extent of the amount 
excluded under subsection (a) for any amount which was provided with 
respect to such expenditure. The adjusted basis of any property shall 
be reduced by the amount excluded under subsection (a) which was 
provided with respect to such property.''.
    (b) Conforming Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting before 
the item relating to section 140 the following new item:

``Sec. 139F. Early adopter water efficient products incentive 
                            programs.''.
    (c) Effective Date.--The amendments made by this Act shall apply to 
taxable years beginning after the date of the enactment of this Act.

Summary: Water Advanced Technologies for Efficient Resource Use Act of 2015 This bill codifies the Environmental Protection Agency's (EPA) WaterSense program, which identifies, labels, and promotes water efficient products, buildings, landscapes, and services. This bill also establishes a program to provide financial incentives for consumers to purchase and install residential water efficient products and services labeled under the WaterSense program. In order to meet procurement requirements for a water consuming product or service, federal agencies must purchase a WaterSense product or service, or a Federal Energy Management Program designated product. Agencies do not have to procure those products or services if they are not cost-effective, or not reasonably available. The bill amends the Internal Revenue Code to exclude from the gross income of individual taxpayers any amount received under an incentive program for the purchase and installation of residential water efficient products and services.