Watershed Results Act
Bill: S.3539 | Sponsor: Sen. Wyden, Ron (D-OR)
Policy area: Water Resources Development

Summary:
Watershed Results Act
This bill provides funding for the Department of the Interior, in coordination with the Department of Agriculture and the Environmental Protection Agency, to establish a total of not less than two and not more than five watershed pilot programs in certain western states that use pay-for-performance contracts.
Interior is required to designate a management team for each watershed pilot project. Each team must develop and implement a five-year plan for carrying out the applicable pilot.
Interior and the management team for each watershed pilot must use advance watershed analytics throughout the planning, implementation, measuring, and monitoring of projects within the pilot. This technical analysis must be conducted to identify quantifiable outcomes, costs, feasibility, and impacts of the projects before making funding available for a watershed pilot.
Further, Interior and the management team for a watershed pilot are required to set and publish minimum per-unit outcome prices. Interior must also enter into a pay-for-performance contract to achieve outcome-based goals described in the plan developed for the pilot.
Interior must also submit specified annual and five-year reports to Congress.

To authorize the Secretary of the Interior to carry out watershed 
                    pilots, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Watershed Results Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Advance watershed analytics.--The term ``advance 
        watershed analytics'' means the technical analysis that is--
                    (A) conducted before making funding available for a 
                watershed pilot; and
                    (B) necessary--
                            (i) to identify specific high-impact 
                        outcome projects across an entire watershed;
                            (ii) to identify project costs and 
                        implementation feasibility constraints;
                            (iii) to identify how different groups of 
                        projects impact overall watershed targets; and
                            (iv) to develop scenarios that--
                                    (I) maximize outcomes; and
                                    (II) are feasible to quickly 
                                implement at scale.
            (2) Federal financial source.--The term ``Federal financial 
        source'' means an award, grant, loan, guarantee, incentive, or 
        credit enhancement funding available to Federal agencies 
        participating in watershed pilots.
            (3) Fund.--The term ``Fund'' means the Environmental 
        Outcomes Fund established by the Secretary under section 
        4(c)(1).
            (4) Management team.--The term ``management team'' means 
        the management team for a watershed pilot designated under 
        section 3(b)(2).
            (5) Outcome.--The term ``outcome'' means--
                    (A) a quantifiable increase in surface water or 
                groundwater;
                    (B) a measurable increase in aquatic habitat 
                quality or quantity in a watershed affected by the 
                operation of a Bureau of Reclamation project; or
                    (C) any other quantifiable benefit identified by 
                the management team as being desirable in the 
                applicable watershed.
            (6) Pay-for-performance contract.--The term ``pay-for-
        performance contract'' means a contract to purchase 
        successfully implemented outcomes at a negotiated per-unit 
        price.
            (7) Plan.--The term ``plan'' means an actionable 
        implementation and funding plan developed for a watershed pilot 
        under section 3(c)(1).
            (8) Qualifying project.--The term ``qualifying project'' 
        means a project in a Reclamation State that efficiently 
        achieves 1 or more outcomes in pursuit of a plan, as 
        prioritized through advance watershed analytics.
            (9) Reclamation state.--The term ``Reclamation State'' 
        means--
                    (A) a State or territory described in the first 
                section of the Act of June 17, 1902 (32 Stat. 388, 
                chapter 1093; 43 U.S.C. 391);
                    (B) the State of Hawaii; and
                    (C) the State of Alaska.
            (10) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (11) Watershed pilot.--The term ``watershed pilot'' means a 
        watershed pilot established under section 3(a).

SEC. 3. WATERSHED PILOTS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act and subject to subsection (h), the Secretary 
shall establish a total of not less than 2 and not more than 5 
watershed pilots in a Reclamation State.
    (b) Management of Watershed Pilots.--
            (1) Management by secretary.--Management and responsibility 
        for each watershed pilot shall be led by the Secretary.
            (2) Management team.--The Secretary shall designate a 
        management team for the watershed pilot, which shall be 
        composed of representatives appointed by the Secretary.
            (3) Consultation.--In establishing and carrying out a 
        watershed pilot, the Secretary and the management team shall 
        consult with--
                    (A) State, local, and Tribal representatives;
                    (B) nongovernmental organizations, including water 
                and irrigation districts;
                    (C) private sector representatives; and
                    (D) such other individuals or entities as the 
                Secretary and the management team determine to be 
                appropriate.
    (c) Plan.--
            (1) In general.--Not later than 1 year after the date on 
        which a watershed pilot is established, the management team for 
        the applicable watershed pilot shall develop and implement a 5-
        year plan for carrying out the watershed pilot.
            (2) Requirements.--A plan shall incorporate--
                    (A) advance watershed analytics to establish 
                milestones, outcome targets, an implementation plan, 
                and a timeline for achieving the milestones, targets, 
                and full implementation;
                    (B) a coordinated cross-agency funding strategy 
                that will--
                            (i) achieve the milestones and outcome 
                        targets established under subparagraph (A) in 
                        an effective and flexible manner by efficiently 
                        and quickly delivering Federal financial 
                        sources to qualifying projects;
                            (ii) leverage amounts made available under 
                        sections 4(c)(4) and 7 with existing Federal 
                        financial sources;
                            (iii) use Federal financial sources and 
                        amounts from the Fund to leverage and attract 
                        investments from private or philanthropic 
                        sources to accelerate greater outcomes-based 
                        results; and
                            (iv) concentrate Federal financial source 
                        commitments from multiple agencies in a 
                        watershed pilot during the period of the 
                        watershed pilot;
                    (C) annually updated progress tracking against 
                milestones and targets; and
                    (D) such other information as the Secretary 
                determines to be relevant to achieve outcomes on an 
                accelerated timeline.
            (3) Review.--A plan shall be reviewed annually by the 
        management team.
    (d) Notification.--On adoption of each plan, the Secretary shall 
submit to the Committee on Appropriations of the Senate and the 
Committee on Appropriations of the House of Representatives a 
notification that the watershed pilot has been established and the plan 
has been adopted.
    (e) Disbursement of Funds to Qualifying Projects.--Not later than 
30 days after the date on which the Secretary and the management team 
for a watershed pilot verify outcomes from the qualifying project, the 
Secretary and the management team for the watershed pilot shall 
disburse amounts from Federal financial sources, including amounts made 
available under sections 4(c)(4) and 7, to a qualifying project, 
through pay-for-performance contracts, at agreed upon outcome prices.
    (f) Minimum Outcome Prices.--Not later than 1 year after the date 
on which a watershed pilot is established, the Secretary and the 
management team for the watershed pilot shall set and publish minimum 
per-unit outcome prices.
    (g) Use of Advance Watershed Analytics.--The Secretary and the 
management team for each watershed pilot shall use advance watershed 
analytics throughout the planning, implementation, measuring, and 
monitoring of outcomes within the watershed pilot.
    (h) Authority for Additional Pilots.--The Secretary, following 
notification of the Committee on Appropriations of the Senate and the 
Committee on Appropriations of the House of Representatives, shall 
approve the establishment of more than 5 watershed pilots under this 
section.

SEC. 4. FINANCING AND FUNDING OF WATERSHED PILOTS.

    (a) Use of Pay-For-Performance Contracts.--In carrying out a 
watershed pilot, the Secretary shall enter into a pay-for-performance 
contract to achieve outcome-based goals described in the plan developed 
for the watershed pilot.
    (b) Flexibility Under Existing Programs.--The Secretary shall 
modify, expand, or streamline eligibility and verification criteria for 
existing Federal financial sources to maximize flexibility, speed, and 
use of Federal funds in the most effective manner to achieve outcomes 
under the watershed pilot.
    (c) Environmental Outcomes Fund.--
            (1) In general.--The Secretary shall establish an 
        Environmental Outcomes Fund.
            (2) Use of fund.--Amounts in the Fund shall only be 
        expended on pay-for-performance contracts under a watershed 
        pilot.
            (3) Criteria.--Amounts in the Fund shall be expended in 
        accordance with--
                    (A) this Act, including the plan developed for the 
                applicable watershed pilot; and
                    (B) criteria established by the Secretary and the 
                management team for the applicable watershed pilot, 
                which shall include criteria for--
                            (i) eligibility of qualifying projects;
                            (ii) types of qualifying projects;
                            (iii) the timing of the disbursement of 
                        funds; and
                            (iv) such other matters as the Secretary 
                        and the management team determine to be 
                        appropriate.
            (4) Mandatory funding.--
                    (A) In general.--Out of any funds in the Treasury 
                not otherwise appropriated, on October 1, 2022, and on 
                each October 1 thereafter through October 1, 2027, the 
                Secretary of the Treasury shall transfer to the 
                Secretary from the reclamation fund established by the 
                first section of the Act of June 17, 1902 (32 Stat. 
                388, chapter 1093; 43 U.S.C. 391), $15,000,000 to be 
                deposited in the Fund.
                    (B) Receipt and acceptance.--The Secretary shall be 
                entitled to receive, shall accept, and shall deposit 
                into the Fund for use in accordance with this 
                subsection the funds transferred under subparagraph 
                (A), without further appropriation.
            (5) Report to congress.--If a watershed pilot is 
        established as a permanent program, the Secretary may submit to 
        Congress recommendations for modifications to funding levels 
        and a permanent authorization of funding for the permanent 
        program.
    (d) Cost-Share Waiver.--Any otherwise applicable cost-share 
requirements for existing Federal financial sources, including under 
section 212(a)(1) of the Public Lands Corps Act of 1993 (16 U.S.C. 
1729(a)(1)), shall be waived for watershed pilots carried out using 
amounts made available under this Act.

SEC. 5. REPORTS.

    (a) Definition of Appropriate Committees of Congress.--In this 
section, the term ``appropriate committees of Congress'' means--
            (1) of the Senate--
                    (A) the Committee on Appropriations; and
                    (B) the Committee on Energy and Natural Resources; 
                and
            (2) of the House of Representatives--
                    (A) the Committee on Appropriations; and
                    (B) the Committee on Natural Resources.
    (b) Annual Reports.--The Secretary shall, not later than the date 
on which the budget of the United States Government is submitted by the 
President under section 1105 of title 31, United States Code, for each 
fiscal year for which the watershed pilot is being carried out, submit 
to the appropriate committees of Congress a report describing the 
status of each watershed pilot, including progress towards the 
milestones described in section 3(c)(2)(A).
    (c) 5-Year Report.--Not later than October 1 of the fifth fiscal 
year in which a watershed pilot is carried out under section 3, the 
Secretary shall submit to the appropriate committees of Congress a 
report describing, in accordance with the plan developed for the 
applicable watershed pilot--
            (1) a summary of--
                    (A) the projected results of the watershed pilot in 
                meeting the milestones described in section 3(c)(2)(A);
                    (B) the projected outcomes of the watershed pilot 
                described in that section;
                    (C) the total amount of funds made available under 
                the watershed pilot;
                    (D) the type of funding expended under the 
                watershed pilot; and
                    (E) such other information as the Secretary 
                determines to be appropriate; and
            (2) recommendations for continuing, terminating, or making 
        permanent the watershed pilot.
    (d) Environmental Outcomes Funds.--
            (1) Secretary.--The Secretary, not later than the date on 
        which the budget of the United States Government is submitted 
        by the President under section 1105 of title 31, United States 
        Code, for each fiscal year for which the watershed pilot is 
        being carried out, submit to the appropriate committees of 
        Congress a report describing the outcomes achieved using 
        amounts made available from, management of, and expenditures 
        from, the Fund.
            (2) Inspectors general.--
                    (A) Audit.--The Inspector General of the Department 
                of the Interior shall conduct a biannual audit of the 
                management of, and funding (including expenditures) 
                relating to, the Fund for the purpose of ensuring 
                proper and effective use of Federal funding by 
                evaluating the effectiveness of the watershed pilot in 
                achieving the plan developed for the watershed pilot, 
                including an evaluation of the outcomes achieved and 
                the Federal financial sources used to achieve those 
                outcomes.
                    (B) Reports.--The Inspector General of the 
                Department of the Interior shall, not later than the 
                date on which the budget of the United States 
                Government is submitted by the President under section 
                1105 of title 31, United States Code, for each fiscal 
                year for which the watershed pilot is being carried 
                out, submit to the appropriate committees of Congress a 
                report describing the 2 audits most recently conducted 
                under subparagraph (A).

SEC. 6. DURATION.

    Each watershed pilot shall terminate on the date that is 5 years 
after the date on which the notification is submitted under section 
3(d) with respect to that watershed pilot.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated--
            (1) for each watershed pilot, $15,000,000 for each of 
        fiscal years 2022 through 2027, which shall be in addition to 
        the amounts made available under section 4(c)(4); and
            (2) to carry out advance watershed analytics for each 
        watershed pilot, $2,000,000 for each of fiscal years 2022 
        through 2024.
                                 <all>