Watershed Results Act
Bill: S.2807 | Sponsor: Sen. Wyden, Ron (D-OR)
Policy area: Public Lands and Natural Resources

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 that use pay-for-performance contracts.
Interior shall designate a management team for each watershed pilot. The management team for the applicable watershed pilot shall develop and implement a five-year plan for carrying out that pilot.
Interior and the management team for each watershed pilot shall use advance watershed analytics throughout the planning, implementation, measuring, and monitoring of projects within the pilot. Such analytics must be conducted to identify quantifiable outcomes, costs, feasibility, and impacts of the projects before making funding available for the pilot.
Interior and the management team for a watershed pilot shall set and publish minimum per-unit outcome prices. The participating federal department or agency shall enter into a pay-for-performance contract to achieve outcome-based goals described in the plan developed for the pilot.
Interior shall submit specified annual and five-year reports to Congress.

To authorize the Secretary of the Interior, in coordination with the 
heads of relevant Federal agencies, 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 an Environmental 
        Outcomes Fund established by the head of a Federal department 
        or agency under section 4(c)(1).
            (4) Management team.--The term ``management team'' means 
        the management team for a watershed pilot designated under 
        section 3(c)(2).
            (5) Outcome.--The term ``outcome'' means--
                    (A) a quantifiable reduction in nutrient or 
                sediment runoff;
                    (B) a quantifiable reduction in thermal load;
                    (C) a quantifiable increase in dissolved oxygen;
                    (D) a quantifiable increase in surface water or 
                groundwater that functionally benefits fish and 
                wildlife species; or
                    (E) 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(d)(1).
            (8) Qualifying project.--The term ``qualifying project'' 
        means a project that efficiently achieves 1 or more outcomes in 
        pursuit of a plan, as prioritized through advance watershed 
        analytics.
            (9) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (10) 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 (i), the Secretary, 
acting in coordination with the Secretary of Agriculture and the 
Administrator of the Environmental Protection Agency, shall establish a 
total of not less than 2 and not more than 5 watershed pilots.
    (b) Consultation.--In establishing a watershed pilot under 
subsection (a), the Secretary shall--
            (1) consult with the Chair of the Council on Environmental 
        Quality in implementing the watershed pilot; and
            (2) regularly submit to the Chair of the Council on 
        Environmental Quality reports describing the status and 
        implementation of the watershed pilot.
    (c) 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--
                    (A) representatives appointed by the Secretary; and
                    (B) representatives from 1 or more other Federal 
                departments or agencies participating in the watershed 
                pilot.
            (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;
                    (C) private sector representatives; and
                    (D) such other individuals or entities as the 
                Secretary and the management team determine to be 
                appropriate.
    (d) 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) Consultation and review.--A plan shall be--
                    (A) developed in consultation with the head of each 
                Federal department and agency participating in the 
                watershed pilot; and
                    (B) reviewed annually by the management team.
    (e) 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.
    (f) Disbursement of Funds to Qualifying Projects.--Not later than 
30 days after the date on which 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.
    (g) 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.
    (h) 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.
    (i) Authority for Additional Pilots and Agencies.--The Chair of the 
Council on Environmental Quality, in consultation with the Committee on 
Appropriations of the Senate and the Committee on Appropriations of the 
House of Representatives, shall approve--
            (1) the establishment of more than 5 watershed pilots under 
        this section; and
            (2) the participation in watershed pilots under this 
        section of a Federal department or agency other than those 
        described in subsection (a).

SEC. 4. FINANCING AND FUNDING OF WATERSHED PILOTS.

    (a) Use of Pay-For-Performance Contracts.--In carrying out a 
watershed pilot, the head of a Federal department or agency 
participating in the watershed pilot 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 head of each Federal 
department or agency participating in a watershed pilot 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 Funds.--
            (1) In general.--The head of each Federal department or 
        agency participating in a watershed pilot shall establish an 
        Environmental Outcomes Fund.
            (2) Use of fund.--Amounts in a Fund shall only be expended 
        on pay-for-performance contracts under a watershed pilot.
            (3) Criteria.--Amounts in a 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 $15,000,000 to 
                the head of each Federal department or agency to be 
                deposited in the Fund.
                    (B) Receipt and acceptance.--The head of a Federal 
                department or agency described in subparagraph (A) 
                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 resources, 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;
                    (B) the Committee on Environment and Public Works; 
                and
                    (C) the Committee on Agriculture, Nutrition, and 
                Forestry; and
            (2) of the House of Representatives--
                    (A) the Committee on Appropriations;
                    (B) the Committee on Natural Resources;
                    (C) the Committee on Agriculture; and
                    (D) the Select Committee on the Climate Crisis.
    (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(d)(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(d)(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) Agency heads.--The head of each Federal department or 
        agency participating in a watershed pilot 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 outcomes 
        achieved using amounts made available from, management of, and 
        expenditures from, the Fund established by the agency head.
            (2) Inspectors general.--
                    (A) Audit.--The Inspector General of each Federal 
                department or agency participating in a watershed pilot 
                shall conduct a biannual audit of the management of, 
                and funding (including expenditures) relating to, the 
                Fund established by the agency head 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 each Federal 
                department or agency participating in a watershed pilot 
                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(e) 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.
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