Title: Water and Energy Sustainability through Technology Act
Policy area: Water Resources Development

Summary:
Water and Energy Sustainability through Technology Act
This bill addresses the link between energy and water systems (energy-water nexus), including: (1) the water needed to produce energy; (2) the energy needed to transport, reclaim, treat, store, and reuse water and wastewater; (3) the energy available in organic wastewaters and wet waste streams (e.g., methane); and (4) the waste heat available in industrial process and cooling water discharges, steam system condensate and cooling water, and thermoelectric cooling water discharge.
The bill provides support for increasing:
In addition, the bill establishes a United States-Israel Water Cooperation Working Group to seek to strengthen dialogue between the United States and Israel in order to: (1) improve the use of water resources through water-saving technologies and practices; (2) counter water shortages; (3) modernize pipeline and other applicable infrastructure; and (4) pursue best practices in drip irrigation, water recycling, and desalination.
The bill amends the Internal Revenue Code to eliminate certain tax incentives related to the extraction of oil, gas, or certain minerals.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3275 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 3275

 To provide drought relief through innovation, increased water supply, 
 and regional adaptation and self-sufficiency, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 17, 2017

 Mr. McNerney introduced the following bill; which was referred to the 
Committee on Energy and Commerce, and in addition to the Committees on 
  Natural Resources, Transportation and Infrastructure, Agriculture, 
 Science, Space, and Technology, Ways and Means, and Foreign Affairs, 
for a period to be subsequently determined 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 relief through innovation, increased water supply, 
 and regional adaptation and self-sufficiency, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be referred to as the ``Water and 
Energy Sustainability through Technology Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
  TITLE I--WATER INNOVATION THROUGH ENERGY-WATER NEXUS TECHNOLOGY AND 
                                  DATA

           Subtitle A--Energy-Water Nexus Technology and Data

Sec. 1111. DOE energy-water nexus findings, sense of Congress, and 
                            definition.
Sec. 1112. National energy-water nexus database.
Sec. 1113. Energy-water nexus technology R&D program.
Sec. 1114. Smart energy and water efficiency program.
Sec. 1115. State energy-water technology services program.
Sec. 1116. Energy-water efficient buildings and power plants.
Sec. 1117. Energy-water nexus data for power plants.
Sec. 1118. Reclamation water conservation and energy savings.
Sec. 1119. Rural water utilities energy and water efficiency program.
          Subtitle B--Improved Data, Technology, and Education

Sec. 1221. DOI groundwater information system.
Sec. 1222. EIA water consumption data collection in the residential and 
                            commercial sectors.
Sec. 1223. USGS water consumption analysis survey.
Sec. 1224. Innovations at the nexus of food, energy, and water systems.
Sec. 1225. USDA and DOI coordinated water conservation efforts.
Sec. 1226. Agricultural technology centers.
Sec. 1227. Efficient irrigation technical assistance grant program.
Sec. 1228. United States-Israel Water Cooperation Working Group.
     TITLE II--INCREASED WATER SUPPLY AND REGIONAL SELF-SUFFICIENCY

Sec. 2001. WaterSMART reauthorization.
Sec. 2002. Amendment to competitive grant program for water recycling 
                            and reuse projects.
Sec. 2003. Recycling standards assistance.
Sec. 2004. Stormwater management and technical assistance.
Sec. 2005. Groundwater management technical assistance.
Sec. 2006. Groundwater recharge program.
Sec. 2007. Community water enhancement.
Sec. 2008. Water system mitigation and adaptation grants.
Sec. 2009. WaterSense program.
Sec. 2010. State residential water efficiency and conservation 
                            incentives program.
Sec. 2011. Appropriative water rights charitable tax deduction.
Sec. 2012. Storage.
                   TITLE III--IMPROVED INFRASTRUCTURE

Sec. 3001. Water leak control technology study.
Sec. 3002. Water main break data clearinghouse.
Sec. 3003. Sustainable Water Loss Control Program.
Sec. 3004. Tax-exempt facility bonds.
Sec. 3005. Improving green infrastructure and community water systems 
                            through State revolving loan funds.
Sec. 3006. Best practices for administration of State revolving loan 
                            fund programs.
    TITLE IV--REPEAL CERTAIN TAX PREFERENCES FOR ENERGY AND NATURAL 
                       RESOURCE-BASED INDUSTRIES

Sec. 4001. No expensing for intangible drilling and development costs 
                            for oil and gas wells.
Sec. 4002. Repeal of percentage depletion.
                        TITLE V--SAVINGS CLAUSE

Sec. 5001. Savings clause.

  TITLE I--WATER INNOVATION THROUGH ENERGY-WATER NEXUS TECHNOLOGY AND 
                                  DATA

           Subtitle A--Energy-Water Nexus Technology and Data

SEC. 1111. DOE ENERGY-WATER NEXUS FINDINGS, SENSE OF CONGRESS, AND 
              DEFINITION.

    (a) Findings.--Congress finds the following:
            (1) Water and energy are essential resources that are 
        inherently linked and interconnected.
            (2) In 2010, the U.S. water system consumed approximately 
        12.6 percent of the Nation's energy according to a study by the 
        University of Texas at Austin.
            (3) The Nation's wastewater plants and drinking water 
        systems expend approximately $4 billion per year on energy to 
        treat water.
            (4) Water and wastewater facilities account for 
        approximately 4 percent of U.S. electricity consumption.
            (5) California water systems together consume approximately 
        19 percent of the State's electricity.
            (6) If water and wastewater utilities could reduce energy 
        use by just 10 percent using demand management and cost-
        effective investments in energy efficiency, it would save about 
        $400 million annually.
            (7) The energy-water nexus is integral to combating and 
        mitigating the effects of climate change and enhancing energy 
        and water security.
            (8) The Government Accountability Office has issued several 
        reports calling for improved information and coordination from 
        the Department of Energy with respect to the energy-water 
        nexus, including improving Federal data for power plants, 
        improving information on water produced during oil and gas 
        production, and increasing Federal coordination to better 
        manage energy and water tradeoffs.
            (9) The Department of Energy's Energy-Water Nexus Crosscut 
        Team is a collaboration of agencies, national laboratories, 
        State and local governments, utilities, industry stakeholders, 
        and the science and environmental community that work to 
        address water and energy challenges and opportunities.
    (b) Sense of Congress.--It is the sense of Congress that Congress 
supports--
            (1) with respect to the energy-water nexus--
                    (A) an advanced, integrated data, modeling, and 
                analysis platform to improve understanding and inform 
                decision making for a broad range of users and at 
                multiple scales; and
                    (B) investments in targeted technology research 
                that offer the greatest potential for positive impact;
            (2) innovative technology advances that address the 
        challenges relating to the energy-water nexus; and
            (3) the Department of Energy's Energy-Water Nexus Crosscut 
        Team and its mission.
    (c) Definition of Energy-Water Nexus.--In this Act, the term 
``energy-water nexus'' means the links between energy and water 
systems, including--
            (1) the water needed to produce fuels, generate 
        electricity, and produce other forms of energy;
            (2) the energy needed to transport, reclaim, treat, and 
        reuse--
                    (A) water, including water needed for heating and 
                cooling; and
                    (B) wastewater, including produced waters;
            (3) the energy available in organic wastewaters and wet 
        waste streams, including municipal and industrial wastewaters 
        and livestock manures; and
            (4) the waste heat available in industrial process and 
        cooling water discharges, steam system condensate and cooling 
        water, and thermoelectric cooling water discharges.

SEC. 1112. NATIONAL ENERGY-WATER NEXUS DATABASE.

    (a) Establishment.--Not later than 4 years after the date of 
enactment of this Act, the Secretary of Energy shall establish and 
maintain an energy-water nexus database.
    (b) Purposes.--The purposes of the database are--
            (1) to advance the availability, timely distribution, and 
        widespread use of data and information relating to the energy-
        water nexus for energy and water management, education, 
        research, assessment, and monitoring purposes;
            (2) to advance understanding of interactions between energy 
        and water systems through access to data, including models and 
        modeling results;
            (3) to promote data collection and information management 
        with respect to--
                    (A) the uses, characteristics, and ultimate fate of 
                water used for or produced in oil and gas production, 
                including safe and appropriate reuse of these non-
                traditional waters;
                    (B) water consumption based on metered data; and
                    (C) energy use in water systems;
            (4) to increase accessibility to, and expand the use of, 
        data and information relating to the energy-water nexus, in a 
        standard, easy-to-use format, by Federal, State, local, and 
        tribal governments, communities, educational institutions, and 
        the private sector, while leveraging existing data at Federal 
        agencies;
            (5) to facilitate the open exchange of information relating 
        to the energy-water nexus in the face of changing technologies, 
        changes in demand, and climate change; and
            (6) to make data, modeling, and modeling results relating 
        to the energy-water nexus of the Department of Energy widely 
        available.
    (c) Activities.--In carrying out this section, the Secretary of 
Energy shall--
            (1) integrate data and information relating to the energy-
        water nexus into an interoperable, national, geospatially 
        referenced energy-water data framework;
            (2) identify new data and information needs relating to the 
        energy-water nexus;
            (3) use existing shared databases, infrastructure, 
        monitoring networks, and tools to provide--
                    (A) a platform for innovation, predictive 
                analytics, modeling and data sharing, and solution 
                development for data and information relating to the 
                energy-water nexus; and
                    (B) nationally uniform water and energy use data;
            (4) support energy-water nexus data and information 
        sharing, applied research, and educational programs of State, 
        local, and tribal governments, communities, educational 
        institutions, and the private sector;
            (5) promote enhanced cooperation among Federal and State 
        agencies, including cooperation in sensing, surveying, 
        compilation, analysis, modeling, presentation, and interactive 
        updating of data sets to improve data quality and usability; 
        and
            (6) develop the energy-water nexus database to integrate 
        with other open data systems where appropriate.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $20,000,000 for each of fiscal 
years 2018 through 2027.

SEC. 1113. ENERGY-WATER NEXUS TECHNOLOGY R&D PROGRAM.

    Section 979 of the Energy Policy Act of 2005 (42 U.S.C. 16319) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (2), by striking ``; and'' and 
                inserting ``and brine-management technologies;'';
                    (B) in paragraph (3), by striking ``demand.'' and 
                inserting ``demand; and''; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(4) technologies related to the energy-water nexus (as 
        such term is defined in section 1111(c) of the Water and Energy 
        Sustainability through Technology Act) that lessen demand on 
        energy and water systems, including by--
                    ``(A) optimizing the freshwater efficiency of 
                energy production, electricity generation, and end use 
                technologies;
                    ``(B) optimizing the energy efficiency of water 
                management, treatment, distribution, and end use 
                technologies;
                    ``(C) enhancing the reliability and resilience of 
                energy and water technologies;
                    ``(D) increasing safe and productive use of 
                nontraditional water sources through improved 
                technology;
                    ``(E) promoting responsible energy operations with 
                respect to water quality, ecosystem, and seismic 
                impacts;
                    ``(F) utilizing efficient synergies among water and 
                energy system technologies; and
                    ``(G) recovering energy in the form of biofuels, 
                bioproducts, and biopower from municipal and industrial 
                wastewaters, and similar organic streams.'';
            (2) by redesignating subsections (d), (e), and (f) as 
        subsections (e), (f), and (g), respectively;
            (3) by inserting after subsection (c) the following 
        subsection:
    ``(d) Coordination of Efforts.--The Secretary shall coordinate 
efforts with respect to technologies related to the energy-water nexus 
(as such term is defined in section 1111(c) of the Water and Energy 
Sustainability through Technology Act) under subsection (b)(4) of this 
section with similar efforts by the National Laboratories.'';
            (4) in subsection (g), as redesignated by paragraph (2)--
                    (A) by striking ``date of enactment of this Act'' 
                and inserting ``date of enactment of the Water and 
                Energy Sustainability through Technology Act, and 
                annually thereafter''; and
                    (B) by striking ``assessment described in 
                subsection (b)'' and inserting ``program under this 
                section''; and
            (5) by adding at the end the following:
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $20,000,000 for each of fiscal 
years 2018 through 2027.''.

SEC. 1114. SMART ENERGY AND WATER EFFICIENCY PROGRAM.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) a utility;
                    (B) a municipality;
                    (C) a water district;
                    (D) a sanitation district; or
                    (E) any other authority that provides water, 
                wastewater, or water reuse services.
            (2) Smart energy and water efficiency pilot program.--The 
        terms ``smart energy and water efficiency pilot program'' and 
        ``pilot program'' mean the pilot program established under 
        subsection (b).
    (b) Smart Energy and Water Efficiency Pilot Program.--
            (1) In general.--The Secretary of Energy shall establish 
        and carry out a smart energy and water efficiency pilot program 
        in accordance with this section.
            (2) Purpose.--The purpose of the smart energy and water 
        efficiency pilot program is to award grants to eligible 
        entities to demonstrate advanced and innovative technology-
        based projects that will--
                    (A) increase and improve the energy efficiency of 
                water, wastewater, and water end-use and reuse systems 
                to help communities across the United States make 
                significant progress in conserving water, saving 
                energy, and reducing costs;
                    (B) support the implementation of innovative 
                processes for energy and water efficiency and the 
                installation of advanced automated systems that provide 
                real-time data on energy and water;
                    (C) improve energy and water conservation, water 
                quality, and predictive maintenance of energy and water 
                systems, through the use of software and communication 
                enabled technologies, including sensors, intelligent 
                gateways, and security embedded in hardware; or
                    (D) support the recovery of energy, in the form of 
                biofuels, bioproducts (including nutrient recovery), 
                and biopower, from municipal wastewaters, biosolids, 
                and biowastes.
            (3) Project selection.--
                    (A) In general.--The Secretary of Energy shall make 
                competitive grants under the pilot program to at least 
                2 eligible entities.
                    (B) Selection criteria.--In selecting an eligible 
                entity to receive a grant under the pilot program, the 
                Secretary of Energy shall consider--
                            (i) energy and water cost savings 
                        anticipated to result from the project;
                            (ii) the innovative nature, commercial 
                        viability, and reliability of the technology to 
                        be used;
                            (iii) the degree to which the project 
                        integrates next-generation sensors, software, 
                        hardware, predictive analytics, and management 
                        tools;
                            (iv) the anticipated cost effectiveness of 
                        the project in terms of energy savings, water 
                        savings or reuse, and infrastructure costs 
                        averted per dollar spent;
                            (v) whether the technology can be deployed 
                        in a variety of geographic regions and the 
                        degree to which the technology can be 
                        implemented on a smaller or larger scale, 
                        including whether the technology can be 
                        implemented by each type of eligible entity;
                            (vi) whether the technology has been 
                        successfully deployed elsewhere;
                            (vii) whether the technology is sourced 
                        from a manufacturer based in the United States; 
                        and
                            (viii) whether the project will be 
                        completed in 5 years or less.
                    (C) Applications.--
                            (i) In general.--Subject to clause (ii), an 
                        eligible entity seeking a grant under the pilot 
                        program shall submit to the Secretary of Energy 
                        an application at such time, in such manner, 
                        and containing such information as the 
                        Secretary determines to be necessary.
                            (ii) Contents.--An application under clause 
                        (i) shall, at a minimum, include--
                                    (I) a description of the project;
                                    (II) a description of the 
                                technology to be used in the project;
                                    (III) the anticipated results, 
                                including energy and water savings, of 
                                the project;
                                    (IV) a comprehensive budget for the 
                                project;
                                    (V) the names of the project lead 
                                organization and any partners;
                                    (VI) the number of users to be 
                                served by the project; and
                                    (VII) any other information that 
                                the Secretary of Energy determines to 
                                be necessary to complete the review and 
                                selection of a grant recipient.
            (4) Administration.--
                    (A) In general.--Not later than 300 days after the 
                date of enactment of this Act, the Secretary of Energy 
                shall select grant recipients under this section.
                    (B) Evaluations.--The Secretary of Energy shall 
                annually carry out an evaluation of each project for 
                which a grant is provided under this section that--
                            (i) evaluates the progress and impact of 
                        the project; and
                            (ii) assesses the degree to which the 
                        project is meeting the purpose of the pilot 
                        program.
                    (C) Technical and policy assistance.--On the 
                request of a grant recipient, the Secretary of Energy 
                shall, to the extent practicable, provide technical and 
                policy assistance to the grant recipient to carry out 
                the project.
            (5) Funding.--To carry out this section, the Secretary is 
        authorized to use not more than $15,000,000, to the extent 
        provided in advance in appropriation Acts.

SEC. 1115. STATE ENERGY-WATER TECHNOLOGY SERVICES PROGRAM.

    (a) Establishment.--The Secretary of Energy shall establish and 
carry out a program that--
            (1) strengthens State programs that aid small and start-up 
        businesses that develop energy-water, water, or water-related 
        hardware and software technologies;
            (2) provides State programs technical assistance to improve 
        engineering principles and techniques for energy-water nexus 
        technology products, manufacturing, and commercial production 
        by small and start-up businesses; and
            (3) fosters greater assistance to small and start-up 
        businesses in dealing with the Federal Government on energy-
        water nexus technology related matters.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2018 through 2027.

SEC. 1116. ENERGY-WATER EFFICIENT BUILDINGS AND POWER PLANTS.

    Section 106 of the Energy Policy Act of 2005 (42 U.S.C. 15811) is 
amended--
            (1) in subsection (c)--
                    (A) in the heading, but striking ``Goal'' and 
                inserting ``Goals'';
                    (B) by striking ``as a goal'' and inserting ``as 
                goals''; and
                    (C) by striking ``2007 through 2016'' and inserting 
                ``2018 through 2027 and an improvement in water 
                efficiency each year during such period of calendar 
                years'';
            (2) in subsection (e), by inserting ``and water 
        efficiency'' after ``energy efficiency''; and
            (3) in subsection (f)--
                    (A) in the matter preceding paragraph (1)--
                            (i) by striking ``2012, and'' and inserting 
                        ``2018,''; and
                            (ii) by striking ``2017'' and inserting 
                        ``2027''; and
                    (B) in paragraph (2), by inserting ``and water'' 
                after ``energy''.

SEC. 1117. ENERGY-WATER NEXUS DATA FOR POWER PLANTS.

    (a) Methodology.--The Secretary of Energy shall conduct research 
on, and develop, a methodology for estimating water consumption for 
open-loop cooling systems for thermoelectric power plants.
    (b) EIA.--The Secretary of Energy, acting through the Administrator 
of the Energy Information Administration, shall develop a data portal 
for better access by the public to data on water use by thermoelectric 
power plants.
    (c) USGS.--The Director of the United States Geological Survey 
shall--
            (1) collect data on the withdrawal and consumptive use of 
        water by laboratory and pilot scale thermoelectric power 
        plants;
            (2) as part of such collection, collect data on use of 
        sources other than surface water, for water withdrawn by power 
        plants;
            (3) develop and publish a standard method for determining 
        consumptive losses through enhanced evaporation resulting from 
        water discharges from power plant cooling systems; and
            (4) distribute to other relevant Federal and State agencies 
        data collected under paragraph (2).
    (d) Coordination and Collaboration.--The Director of the United 
States Geological Survey, the Administrator of the Energy Information 
Administration, and the Administrator of the Environmental Protection 
Agency shall--
            (1) collaborate in collecting, analyzing, and reporting all 
        material information on water usage by thermoelectric power 
        plants; and
            (2) make such information available in the energy-water 
        nexus database established pursuant to section 1112.

SEC. 1118. RECLAMATION WATER CONSERVATION AND ENERGY SAVINGS.

    Not later than one year after the date of the enactment of this 
Act, the Secretary of the Interior, acting through the Commissioner of 
Reclamation, shall--
            (1) determine the annual energy consumption, including 
        purchased energy, by pumping stations operated by the Bureau of 
        Reclamation for each of the previous 10 years;
            (2) estimate the annual energy consumption, including 
        purchased energy, by pumping stations operated by the Bureau of 
        Reclamation for each of the next 10 years;
            (3) generate a list of the 10 pumping stations operated by 
        the Bureau of Reclamation that consumed the most energy, 
        including purchased energy, in the previous 10 years; and
            (4) pursue opportunities for energy efficiency and low-
        carbon energy technologies at the pumping stations described in 
        paragraph (3).

SEC. 1119. RURAL WATER UTILITIES ENERGY AND WATER EFFICIENCY PROGRAM.

    (a) In General.--Section 103(a) of the Reclamation Rural Water 
Supply Act of 2006 (43 U.S.C. 2402(a)) is amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(4) carry out a program similar to and consistent with 
        the national rural water and wastewater circuit rider program 
        established under section 306(a)(22) of the Consolidated Farm 
        and Rural Development Act (7 U.S.C. 1926(a)(22)) (including the 
        authority to make grants) in consultation with--
                    ``(A) the Environmental Protection Agency to 
                provide on-site technical assistance to rural drinking 
                water and wastewater utilities, including utilities 
                serving an Indian tribe (as defined in section 4 of the 
                Indian Self-Determination and Education Assistance Act 
                (25 U.S.C. 450b));
                    ``(B) the Secretary of Energy to improve energy 
                efficiency, identify and develop low-carbon energy 
                supplies, and conserve water and end uses of water in 
                the operation of rural drinking water and wastewater 
                utilities; and
                    ``(C) the National Centers for Innovation in Small 
                Drinking Water Systems to strengthen the technical, 
                managerial, and financial capacities of small drinking 
                water providers throughout the country.''.

          Subtitle B--Improved Data, Technology, and Education

SEC. 1221. DOI GROUNDWATER INFORMATION SYSTEM.

    (a) Data Collection and Information System.--
            (1) Data collection.--Not later than 2 years after the date 
        of the enactment of this Act, the Secretary of the Interior 
        shall--
                    (A) conduct a study on the potential impacts of 
                Federal projects operated by the Bureau of Reclamation 
                on groundwater resources;
                    (B) submit to Congress a report on the findings of 
                the study required by subparagraph (A);
                    (C) determine, to the extent possible, the current 
                groundwater levels and the groundwater levels of 
                Federal projects operated by the Bureau of Reclamation 
                over the previous 10 years; and
                    (D) share the data described in subparagraph (C) 
                with the United States Geological Survey.
            (2) Implementation of groundwater information system.--As 
        soon as practicable after receipt by the United States 
        Geological Survey of the data described in paragraph (1)(C), 
        the United States Geological Survey shall implement a 
        groundwater information system for the purpose of advancing the 
        availability, timely distribution, and widespread use of 
        groundwater data for groundwater management, education, 
        research, assessment, and monitoring purposes.
            (3) Availability of data.--The Secretary of the Interior 
        shall make the data described in paragraph (1)(C) available as 
        an input to the Department of Energy's National Energy-Water 
        Nexus Data System established pursuant to section 1112.
            (4) Collaboration.--In carrying out this section, the 
        Secretary of the Interior shall collaborate with States that 
        have or are developing groundwater management programs.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary $25,000,000 for each of fiscal years 2018 
through 2022.

SEC. 1222. EIA WATER CONSUMPTION DATA COLLECTION IN THE RESIDENTIAL AND 
              COMMERCIAL SECTORS.

    (a) Expanding Survey Data To Include Water Use.--The Secretary of 
Energy, acting through the Administrator of the Energy Information 
Administration, shall--
            (1)(A) if feasible, collect, through each Commercial 
        Buildings Energy Consumption Survey of the Energy Information 
        Administration that is conducted after the date of enactment of 
        this section, data on water consumption and usage, including 
        total water consumption for commercial buildings (and verify 
        such consumption by users) and water consumption and usage by 
        principal building activity, census division, and end use; or
            (B) if not feasible, conduct activities to develop the 
        capability to produce and collect such data;
            (2)(A) if feasible, collect, through each Residential 
        Energy Consumption Survey of the Energy Information 
        Administration that is conducted after the date of enactment of 
        this section, data on water consumption and usage, including 
        total water consumption for residential buildings and water 
        consumption and usage by housing type, census division, and end 
        use; or
            (B) if not feasible, conduct activities to develop the 
        capability to produce and collect such data; and
            (3) make the data collected under paragraphs (1) and (2) 
        available in the energy-water nexus database established 
        pursuant to section 1112.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $15,000,000 for each of fiscal 
years 2018 through 2027.

SEC. 1223. USGS WATER CONSUMPTION ANALYSIS SURVEY.

    (a) In General.--The Director of the United States Geological 
Survey shall--
            (1) include estimates of the consumptive use of surface 
        water, groundwater, and recycled water in its published survey 
        on water uses in the United States; and
            (2) make this data available as an input to the Department 
        of Energy's National Energy-Water Nexus Data System.
    (b) State Partnerships.--The Director shall enter into cooperative 
agreements with States to carry out this section.
    (c) Authorization of Appropriations.--To carry out this section 
there is authorized to be appropriated $10,000,000 for each fiscal year 
in the 5-fiscal-year period beginning with fiscal year 2018.

SEC. 1224. INNOVATIONS AT THE NEXUS OF FOOD, ENERGY, AND WATER SYSTEMS.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated to the National Science Foundation for the National 
Science Foundation-wide investment in Innovations at the Nexus of Food, 
Energy, and Water Systems $62,180,000 for each of the fiscal years 2018 
through 2021.
    (b) Small Business Consultation.--The Innovations at the Nexus of 
Food, Energy, and Water Systems program may inform and consult with the 
National Science Foundation Small Business Innovation Research program 
and Small Business Technology Transfer program to determine criteria 
for innovative projects that consider the nexus between food, energy, 
and water systems.

SEC. 1225. USDA AND DOI COORDINATED WATER CONSERVATION EFFORTS.

    (a) Coordination.--The Secretary of Agriculture shall coordinate 
with the Secretary of the Interior to improve the efficiency of 
agricultural water use in a manner that is also protective of wildlife, 
including through coordination of grant programs, best known methods 
for water management, drought resilience guidelines, education, 
technical assistance, irrigation technology development, water 
application system maintenance, research into practices that improve 
soil health and safe and appropriate uses for recycled water on crops, 
evaluations of water delivery systems, and recommendations for 
improvements needed to meet the needs of efficient water application 
systems.
    (b) Report.--Not later than one year after the date of enactment of 
this Act, the Secretary of Agriculture shall submit to Congress a 
report regarding the implementation of this section.

SEC. 1226. AGRICULTURAL TECHNOLOGY CENTERS.

    Chapter 3 of subtitle B of title XVI of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5831 et seq.) is amended 
by adding at the end the following new section:

``SEC. 1630. AGRICULTURAL TECHNOLOGY CENTERS.

    ``(a) Grants for Agricultural Technology Centers.--The Secretary, 
acting through the Director of the National Institute of Food and 
Agriculture, shall carry out a program to provide grants to State 
agencies, universities, nonprofit organizations, and other entities to 
establish or improve agricultural technology centers that provide--
            ``(1) entrepreneurial support programs;
            ``(2) resources on the development and improvement of new 
        and existing technologies, including--
                    ``(A) efficient irrigation technologies, including 
                drip and microsprinkler systems;
                    ``(B) soil moisture monitors and direct plant 
                measurements to determine plant irrigation needs and 
                management practices that improve soil health;
                    ``(C) irrigation scheduling, including weather-
                based irrigation scheduling;
                    ``(D) software designed to increase the efficiency 
                of water management, including integrating irrigation 
                with energy use and the application of fertilizer and 
                other chemicals;
                    ``(E) remote monitoring and control systems, 
                including drones for agricultural monitoring;
                    ``(F) water treatment technologies relating to--
                            ``(i) brine and nitrates; and
                            ``(ii) increasing the safe and appropriate 
                        use of recycled water for crops;
            ``(3) data-sharing and privacy guidelines for agricultural 
        producers; and
            ``(4) conference facilities for agricultural businesses, 
        universities, and nonprofit organizations.
    ``(b) Request for Applications.--The Secretary, acting through the 
Director of the National Institute of Food and Agriculture, shall 
publish an annual funding announcement that provides information on the 
availability of grants under subsection (a), including the purpose, 
eligibility, restriction, focus areas, evaluation criteria, regulatory 
information, and instructions on how to apply for such grants.
    ``(c) Deadline for Program.--Not later than 180 days after the date 
on which funds are first made available to carry out this section, the 
Secretary shall--
            ``(1) establish the program under subsection (a); and
            ``(2) publish the initial request for applications for 
        grants under the program.
    ``(d) Consultation.--An entity that receives a grant under 
subsection (a) may consult with clusters established by the 
Environmental Protection Agency under the Environmental Technology 
Innovation Clusters program to develop, improve, and implement water 
technology innovation.
    ``(e) Authorization of Appropriations.--For purposes of carrying 
out this section, there is authorized to be appropriated to the 
Secretary $15,000,000 for each of fiscal years 2018 through 2022.''.

SEC. 1227. EFFICIENT IRRIGATION TECHNICAL ASSISTANCE GRANT PROGRAM.

    Chapter 5 of subtitle D of title XII of the Food Security Act of 
1985 (16 U.S.C. 3839bb et seq.) is amended by adding at the end the 
following new section:

``SEC. 1240S. EFFICIENT IRRIGATION TECHNICAL ASSISTANCE GRANT PROGRAM.

    ``(a) Grants for Technical Assistance.--The Secretary, acting 
through the Chief of the Natural Resources Conservation Service, shall 
carry out an efficient irrigation technical assistance program to 
provide grants to States, State agencies, local governments, tribal 
organizations, or water districts for technical assistance programs 
that provide--
            ``(1) technical assistance workshops and education programs 
        on water and energy efficient irrigation systems for 
        agricultural producers;
            ``(2) technical assistance to producers to develop 
        irrigation water management plans to improve irrigation 
        efficiency;
            ``(3) ongoing assistance to agricultural producers in 
        implementing and maintaining water and energy efficient 
        irrigation systems that are protective of wildlife, including 
        systems that use water meter and soil sensor data, soil 
        management practices that improve soil health, pump efficiency 
        standards, system audits, routine maintenance, irrigation 
        scheduling, and information control automation; and
            ``(4) other technical assistance the Secretary determines 
        appropriate.
    ``(b) Request for Applications.--The Secretary shall publish an 
annual funding announcement that provides information on the 
availability of grants under subsection (a), including the purpose, 
eligibility, restriction, focus areas, evaluation criteria, regulatory 
information, and instructions on how to apply for such grants.
    ``(c) Deadline for Program.--Not later than 180 days after the date 
on which funds are first made available to carry out this section, the 
Secretary shall--
            ``(1) establish the program under subsection (a); and
            ``(2) publish the initial request for applications for 
        grants under the program.
    ``(d) Definition of Water District.--In this section, the term 
`water district' means an entity engaged in--
            ``(1) the provision of water to the public through pipes or 
        other constructed conveyances; or
            ``(2) the collection, treatment, management, or disposal of 
        stormwater or wastewater generated by the public.
    ``(e) Authorization of Appropriations.--For purposes of carrying 
out this section, there is authorized to be appropriated to the 
Secretary $15,000,000 for each of fiscal years 2018 through 2022.''.

SEC. 1228. UNITED STATES-ISRAEL WATER COOPERATION WORKING GROUP.

    (a) Sense of Congress.--It is the sense of Congress that open 
dialogue and continued mechanisms for regular engagement encourages 
further cooperation between applicable departments, agencies, 
ministries, institutions of higher education, and the private sectors 
of the United States and Israel on water security issues.
    (b) Establishment.--There is established a United States-Israel 
Water Cooperation Working Group (in this section referred to as the 
``Working Group'').
    (c) Membership.--The Working Group shall be composed of the 
following officials or their designees:
            (1) The Secretary of State.
            (2) The Secretary of Agriculture.
            (3) The Secretary of Energy.
            (4) The Secretary of the Interior.
            (5) The Administrator of the Environmental Protection 
        Agency.
    (d) Chairperson.--The Secretary of State shall serve as chairperson 
of the Working Group.
    (e) Purposes.--The Working Group shall seek to strengthen dialogue 
between the United States and Israel in order to--
            (1) improve the use of water resources through water-saving 
        technologies and practices;
            (2) counter water shortages;
            (3) modernize pipeline and other applicable infrastructure; 
        and
            (4) pursue best practices in drip irrigation, water 
        recycling, and desalination.

     TITLE II--INCREASED WATER SUPPLY AND REGIONAL SELF-SUFFICIENCY

SEC. 2001. WATERSMART REAUTHORIZATION.

    Section 9504(a)(1)(B) of the Omnibus Public Land Management Act of 
2009 (42 U.S.C. 10364(a)(1)(B)) is amended to read as follows:
                    ``(B) to increase water use and energy efficiency 
                and work to improve instream flows;''.

SEC. 2002. AMENDMENT TO COMPETITIVE GRANT PROGRAM FOR WATER RECYCLING 
              AND REUSE PROJECTS.

    Subsection (f)(1) of section 1602 of the Reclamation Wastewater and 
Groundwater Study and Facilities Act (Public Law 102-575; U.S.C. 390h) 
is amended by inserting ``(including reimbursement for costs incurred 
prior to enactment of this Act)'' after ``funding''.

SEC. 2003. RECYCLING STANDARDS ASSISTANCE.

    Not later than 2 years after the date of enactment of this Act, the 
Administrator of the Environmental Protection Agency shall--
            (1) conduct research relevant to developing regulations 
        regarding direct potable reuse; and
            (2) provide the results of such research and technical 
        assistance to States that are in the process of developing 
        direct potable reuse regulations.

SEC. 2004. STORMWATER MANAGEMENT AND TECHNICAL ASSISTANCE.

    (a) Stormwater Capture.--In issuing a permit under section 402(p) 
of the Federal Water Pollution Control Act (33 U.S.C. 1342(p)), the 
Administrator of the Environmental Protection Agency (or the State, in 
the case of a permit program approved under section 402(b) of such Act) 
shall evaluate the capacity of stormwater capture and reuse programs, 
on-site stormwater retention standards, green infrastructure projects, 
and adoption of other innovative practices, to reduce the discharge of 
pollutants to the maximum extent practicable and to produce additional 
benefits.
    (b) Technical Assistance.--The Administrator shall provide 
technical assistance to communities to develop integrated plans for the 
purposes of complying with Federal Water Pollution Control Act 
regulations for municipal wastewater and stormwater management.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2018 through 2022.

SEC. 2005. GROUNDWATER MANAGEMENT TECHNICAL ASSISTANCE.

    (a) In General.--The Director of the United States Geological 
Survey shall provide technical assistance in the development and 
implementation of new and existing groundwater management plans in the 
United States.
    (b) Priority for Drought-Afflicted Areas.--In implementing this 
section, the Director may give priority to such plans for areas that 
are subject to a drought declaration by a State.
    (c) Authorization of Appropriations.--To carry out this section 
there is authorized to be appropriated to the Director $15,000,000 for 
each of fiscal years 2018 through 2022.

SEC. 2006. GROUNDWATER RECHARGE PROGRAM.

    Chapter 5 of subtitle D of title XII of the Food Security Act of 
1985 (16 U.S.C. 3839bb et seq.), as amended by section 1228, is further 
amended by adding at the end the following new section:

``SEC. 1240T. GROUNDWATER RECHARGE PROGRAM.

    ``(a) Grants for Groundwater Recharge Improvements.--The Secretary 
shall carry out a groundwater recharge program to provide grants to 
producers for groundwater recharge improvements to eligible land, 
including the installation of measurement devices on wells and pumps.
    ``(b) Priority.--In making grants under subsection (a), the 
Secretary shall give priority to groundwater recharge improvements--
            ``(1) implemented in conjunction with State groundwater 
        recharge programs; and
            ``(2) that provide habitat benefits and maintain 
        groundwater quality without adversely impacting surface waters.
    ``(c) Request for Applications.--The Secretary shall publish an 
annual funding announcement that provides information on the 
availability of grants under subsection (a), including the purpose, 
eligibility, restriction, focus areas, evaluation criteria, regulatory 
information, and instructions on how to apply for such grants.
    ``(d) Deadline for the Program.--Not later than 180 days after the 
date on which funds are first made available to carry out this section, 
the Secretary shall--
            ``(1) establish the program under subsection (a); and
            ``(2) publish the initial request for applications for 
        grants under the program.
    ``(e) Eligible Land Defined.--In this section, the term `eligible 
land' has the meaning given the term in section 1240A.
    ``(f) Report.--
            ``(1) Report to secretary.--Not later than 1 year after the 
        date of the enactment of this section, the Administrator of the 
        Agricultural Research Service shall--
                    ``(A) conduct a study on groundwater recharge 
                improvements; and
                    ``(B) submit to the Secretary a report that 
                includes recommendations on groundwater recharge 
                improvements to be used for the purposes of this 
                section.
            ``(2) Report to congress.--Not later than 2 years after the 
        date of the enactment of this section, the Secretary shall 
        submit to Congress a report that includes an assessment of the 
        effectiveness of the groundwater recharge improvements funded 
        pursuant to this section.
    ``(g) Authorization of Appropriations.--For purposes of carrying 
out this section, there is authorized to be appropriated to the 
Secretary $15,000,000 for each of fiscal years 2018 through 2022.''.

SEC. 2007. COMMUNITY WATER ENHANCEMENT.

    (a) Selection of Projects.--Section 220(d) of the Federal Water 
Pollution Control Act (33 U.S.C. 1300(d)) is amended--
            (1) by striking paragraph (2) and redesignating paragraph 
        (3) as paragraph (2); and
            (2) by adding at the end the following:
            ``(3) Participation of rural communities.--In making grants 
        under this section, the Administrator shall consider whether 
        the project--
                    ``(A) is located in an unincorporated rural 
                community;
                    ``(B) is located in an area that--
                            ``(i) is served by a public water system 
                        (as defined in section 1401 of the Safe 
                        Drinking Water Act) with fewer than 3,000 
                        connections; or
                            ``(ii) does not have a public water system 
                        (as so defined);
                    ``(C) is located in an agricultural area with rural 
                residences served by a public water system (as so 
                defined) or by private wells; or
                    ``(D) is not only a benefit to the rural community 
                served by the project, but also a benefit to additional 
                regional partners.''.
    (b) Committee Resolution Procedure.--Section 220 of such Act (33 
U.S.C. 1300) is amended by striking subsection (e) and redesignating 
subsections (f) through (j) as subsections (e) through (i), 
respectively.
    (c) Definition of Alternative Water Source.--Section 220(h)(1) of 
such Act (as so redesignated) is amended--
            (1) in the first sentence, by striking ``water or 
        wastewater or by treating wastewater'' and inserting ``water, 
        wastewater, or stormwater, by treating wastewater or 
        stormwater, or through conjunctively managing groundwater 
        supplies by delivering surface water instead of groundwater''; 
        and
            (2) in the second sentence, by inserting before the period 
        at the end the following: ``unless the project requires those 
        facilities to deliver the alternative water supply''.
    (d) Authorization of Appropriations.--Section 220(i) of such Act 
(as so redesignated) is amended by striking ``$75,000,000 for fiscal 
years 2002 through 2004'' and inserting ``$150,000,000 for fiscal years 
2018 through 2020''.

SEC. 2008. WATER SYSTEM MITIGATION AND ADAPTATION GRANTS.

    (a) Grants.--Beginning in fiscal year 2018, the Administrator shall 
make grants to owners or operators of water systems to address any 
ongoing or forecasted (based on the best available research and data) 
climate-related impact on the water quality or quantity of a region of 
the United States, for the purposes of mitigating or adapting to the 
impacts of climate change.
    (b) Eligible Uses.--In carrying out this subsection, the 
Administrator shall make grants to assist in the planning, design, 
construction, implementation, or maintenance of any program or project 
to increase the resilience of a water system to climate change by--
            (1) conserving water or enhancing water use efficiency, 
        including through the use of water metering;
            (2) preserving or improving water quality, including 
        through measures to manage, reduce, treat, or reuse municipal 
        stormwater, wastewater, or drinking water;
            (3) investigating, designing, or constructing groundwater 
        remediation, recycled water, or desalination facilities or 
        systems;
            (4) enhancing green infrastructure in the management or 
        treatment of water, wastewater, or stormwater;
            (5) enhancing energy efficiency or the use and generation 
        of low-carbon energy in the management, conveyance, or 
        treatment of water, wastewater, or stormwater;
            (6) supporting practices and projects, such as improved 
        irrigation systems, groundwater recharge, stormwater capture, 
        and reuse or recycling of drainage water and groundwater, to 
        improve water quality or promote more efficient water use, 
        including on land currently in agricultural production;
            (7) conducting and completing studies or assessments to 
        project how climate change may impact the sustainability of 
        water systems; or
            (8) developing and implementing mitigation measures to 
        rapidly address impacts on water systems most susceptible to 
        abrupt climate change, including those in the Colorado River 
        Basin and coastal regions at risk from rising sea levels.
    (c) Application.--To be eligible to receive a grant from the 
Administrator under subsection (b), the owner or operator of a water 
system shall submit to the Administrator an application that--
            (1) includes a proposal of the program or strategy to be 
        planned, designed, implemented, or maintained by the water 
        system;
            (2) cites the best available research or data that 
        demonstrates--
                    (A) the risk to the water resources of the water 
                system as a result of ongoing or forecasted changes to 
                the hydrological system brought about by factors 
                arising from climate change, including rising sea 
                levels, temperature changes, and changes in 
                precipitation levels; and
                    (B) how the proposed program or strategy would 
                perform under the anticipated climate conditions and 
                demonstrates no adverse environmental impacts; and
            (3) explains how the proposed program or strategy is 
        expected to enhance the resiliency of the water system, 
        including source water protection for community water systems, 
        to these risks or reduce the direct or indirect greenhouse gas 
        emissions of the water system.
    (d) Competitive Process.--
            (1) In general.--Each calendar year, the Administrator 
        shall conduct a competitive process to select and fund 
        applications under this subsection.
            (2) Priority requirements and weighting.--In carrying out 
        the process, the Administrator shall--
                    (A) prioritize funding of programs or strategies 
                the applications for which--
                            (i) are submitted by the owners or 
                        operators of water systems that are, based on 
                        the best available research and data, at the 
                        greatest and most immediate risk of facing 
                        significant climate-related negative impacts on 
                        water quality or quantity; and
                            (ii) propose a program or strategy that 
                        will provide an environmental benefit;
                    (B) in selecting among the priority applications 
                determined under subparagraph (A), ensure that the 
                final list of programs and strategies funded for each 
                year includes programs and strategies for disadvantaged 
                communities to the maximum extent practicable; and
                    (C) select not fewer than three programs or 
                strategies to receive a grant under subsection (b).
            (3) Disadvantaged community defined.--For purposes of this 
        subsection, the term ``disadvantaged community'' means a 
        community with an annual median household income that is less 
        than 80 percent of the annual median household income of the 
        State in which the community is located.
    (e) Cost Sharing.--
            (1) Federal share.--The Federal share of the cost of any 
        program or strategy that is the subject of a grant awarded by 
        the Administrator to a water system under subsection (b) shall 
        not exceed 50 percent of the cost of the program or strategy.
            (2) Calculation of non-federal share.--In calculating the 
        non-Federal share of the cost of a program or strategy proposed 
        by a water system through an application submitted by the water 
        system under subsection (d), the Administrator shall--
                    (A) include the value of any in-kind services that 
                are integral to the completion of the program or 
                strategy, as determined by the Administrator; and
                    (B) not include any other amount that the water 
                system receives from a Federal agency.
    (f) Labor Standards.--
            (1) In general.--All laborers and mechanics employed on 
        infrastructure improvements funded directly by or assisted in 
        whole or in part by this section shall be paid wages at rates 
        not less than those prevailing for the same type of work on 
        similar construction in the immediate locality, as determined 
        by the Secretary of Labor in accordance with subchapter IV of 
        chapter 31 of part A of subtitle II of title 40, United States 
        Code.
            (2) Authority and functions.--With respect to the labor 
        standards in this paragraph, the Secretary of Labor shall have 
        the authority and functions set forth in Reorganization Plan 
        Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 
        3145 of title 40, United States Code.
    (g) Regulations.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Administrator shall promulgate final 
        regulations to carry out this section.
            (2) Special rule for the construction of treatment works.--
        In carrying out this subsection, the Administrator shall 
        incorporate all relevant and appropriate requirements of title 
        VI of the Federal Water Pollution Control Act (33 U.S.C. 1381 
        et seq.) applicable to the construction of treatment works that 
        are carried out under this subsection.
    (h) Report to Congress.--Not later than 3 years after the date of 
enactment of this Act, and every 3 years thereafter, the Administrator 
shall submit to the Congress a report on progress in implementing this 
section, including information on project applications received and 
funded annually.
    (i) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2018 through 2022.

SEC. 2009. WATERSENSE PROGRAM.

    (a) Establishment.--
            (1) In general.--There is established within the 
        Environmental Protection Agency a WaterSense program to 
        identify and promote water-efficient products, buildings, 
        landscapes, facilities, processes, and services so as--
                    (A) to reduce water use;
                    (B) to reduce the strain on water, wastewater, and 
                stormwater infrastructure;
                    (C) to conserve energy used to pump, heat, 
                transport, and treat water; and
                    (D) to preserve water resources for future 
                generations through voluntary labeling of, or other 
                forms of communications about, products, buildings, 
                landscapes, facilities, processes, and services that 
                meet the highest water efficiency and performance 
                criteria.
            (2) Duties.--The Administrator of the Environmental 
        Protection Agency shall--
                    (A) establish--
                            (i) a WaterSense label to be used for 
                        certain items; and
                            (ii) the procedure by which an item may be 
                        certified to display the WaterSense label;
                    (B) promote WaterSense-labeled products, buildings, 
                landscapes, facilities, processes, and services in the 
                marketplace as the preferred technologies and services 
                for--
                            (i) reducing water use; and
                            (ii) ensuring product and service 
                        performance;
                    (C) work to enhance public awareness of the 
                WaterSense label through public outreach, education, 
                and other means;
                    (D) preserve the integrity of the WaterSense label 
                by--
                            (i) establishing and maintaining 
                        performance criteria so that products, 
                        buildings, landscapes, facilities, processes, 
                        and services labeled with the WaterSense label 
                        perform as well or better than less water-
                        efficient counterparts;
                            (ii) considering factors, when developing 
                        the performance criteria, to ensure that the 
                        criteria do not directly or indirectly 
                        contribute to the degradation of waste streams 
                        treated by community sewer systems;
                            (iii) overseeing WaterSense certifications 
                        made by third parties;
                            (iv) conducting reviews of the use of the 
                        WaterSense label in the marketplace and taking 
                        corrective action in any case in which misuse 
                        of the label is identified; and
                            (v) carrying out such other measures as the 
                        Administrator determines to be appropriate;
                    (E) regularly review and, if appropriate, update 
                WaterSense criteria for categories of products, 
                buildings, landscapes, facilities, processes, and 
                services, at least once every 4 years;
                    (F) to the maximum extent practicable, regularly 
                estimate and make available to the public the 
                production and relative market shares of, and the 
                savings of, water, energy, and capital costs of water, 
                wastewater, and stormwater infrastructure attributable 
                to the use of WaterSense-labeled products, buildings, 
                landscapes, facilities, processes, and services, at 
                least annually;
                    (G) 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);
                    (H) 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--
                            (i) an explanation of the changes; and
                            (ii) as appropriate, responses to comments 
                        submitted by interested parties and the public; 
                        and
                    (I) 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;
                    (J) identify and, if appropriate, implement other 
                voluntary approaches in commercial, institutional, 
                residential, industrial, and municipal sectors to 
                encourage recycling and reuse technologies to improve 
                water efficiency or lower water use; and
                    (K) if appropriate, apply the WaterSense label to 
                water-using products that are labeled by the Energy 
                Star program implemented by the Administrator and the 
                Secretary of Energy.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section--
            (1) $5,000,000 for fiscal year 2018;
            (2) $10,000,000 for fiscal year 2019;
            (3) $15,000,000 for fiscal year 2020; and
            (4) $20,000,000 for fiscal year 2021.

SEC. 2010. STATE RESIDENTIAL WATER EFFICIENCY AND CONSERVATION 
              INCENTIVES PROGRAM.

    (a) Eligible Entities.--An entity shall be eligible to receive an 
allocation under subsection (b) if the entity--
            (1) establishes (or has established), in consultation with 
        the Department of Energy, an incentive program to provide 
        financial incentives to residential consumers for the purchase 
        of residential water-efficient products, buildings, landscapes, 
        processes, or services;
            (2) submits an application for the allocation at such time, 
        in such form, and containing such information as the 
        Administrator of the Environmental Protection Agency 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.
    (b) Amount of Allocations.--For each fiscal year, the Administrator 
shall determine the amount to allocate to each eligible entity to carry 
out subsection (c), taking into consideration--
            (1) the population served by the eligible entity during the 
        most recent calendar year for which data are available;
            (2) the targeted population of the incentive program of the 
        eligible entity, such as general households, low-income 
        households, or first-time home owners, and the probable 
        effectiveness of the incentive program for that population;
            (3) for existing programs, the effectiveness of the program 
        in encouraging the adoption of water efficient products, 
        buildings, landscapes, facilities, processes, and services, 
        including the cost-effectiveness measured as acre-feet saved 
        per program dollar;
            (4) any allocation to the eligible entity for a preceding 
        fiscal year that remains unused; and
            (5) the per capita water demand of the population served by 
        the eligible entity during the most recent calendar year for 
        which data are available and the accessibility of water 
        supplies to the eligible entity.
    (c) Use of Allocated Funds.--Funds allocated to an eligible entity 
under subsection (b) may be used to pay up to 50 percent of the cost of 
establishing and carrying out an incentive program.
    (d) Fixture Recycling.--Eligible 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.
    (e) Issuance of Incentives.--
            (1) In general.--Financial incentives may be provided to 
        residential consumers that meet the requirements of the 
        applicable incentive program.
            (2) Manner of issuance.--An eligible entity may--
                    (A) issue all financial incentives directly to 
                residential consumers; or
                    (B) with approval of the Administrator, delegate 
                all or part of financial incentive administration to 
                other organizations, including local governments, 
                municipal water authorities, water utilities, and 
                nonprofit organizations.
            (3) Amount.--The amount of a financial incentive shall be 
        determined by the eligible entity, taking into consideration--
                    (A) the amount of any Federal or State tax 
                incentive available for the purchase of the residential 
                water-efficient product or service;
                    (B) the amount necessary to change consumer 
                behavior to purchase water-efficient products and 
                services; and
                    (C) the consumer expenditures for on-site 
                preparation, assembly, and original installation of the 
                product.
    (f) Definitions.--In this section, the following definitions apply:
            (1) Eligible entity.--The term ``eligible entity'' means a 
        State government, local or county government, tribal 
        government, wastewater or sewerage utility, municipal water 
        authority, energy utility, water utility, or nonprofit 
        organization that meets the requirements of subsection (a).
            (2) Incentive program.--The term ``incentive program'' 
        means a program for administering financial incentives for 
        consumer purchase and installation of water-energy efficient 
        residential technologies, buildings, landscapes, processes, or 
        services.
            (3) Residential water-efficient product, building, 
        landscape, process, or service.--
                    (A) In general.--The term ``residential water-
                efficient product, building, landscape, process, or 
                service'' means a product, building, landscape, 
                process, or service for a residence or its landscape 
                that is rated for water efficiency and performance.
                    (B) Inclusions.--The term ``residential water-
                efficient product, building, landscape, process, or 
                service'' includes--
                            (i) faucets;
                            (ii) irrigation technologies and services;
                            (iii) reuse and recycling technologies;
                            (iv) toilets;
                            (v) clothes washers;
                            (vi) dishwashers;
                            (vii) showerheads;
                            (viii) landscaping and gardening products, 
                        including moisture control or water enhancing 
                        technologies;
                            (ix) xeriscaping, turf removal, and other 
                        landscape conversions that reduce water use; 
                        and
                            (x) new water efficient homes certified 
                        under the WaterSense program.
            (4) Watersense program.--The term ``WaterSense program'' 
        means the program established by section 2010.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to the Administrator to carry out this section--
            (1) $25,000,000 for fiscal year 2018;
            (2) $50,000,000 for fiscal year 2019;
            (3) $75,000,000 for fiscal year 2020;
            (4) $50,000,000 for fiscal year 2021;
            (5) $25,000,000 for fiscal year 2022; and
            (6) for each subsequent fiscal year, the applicable amount 
        for the preceding fiscal year, as adjusted to reflect changes 
        for the 12-month period ending the preceding November 30 in the 
        Consumer Price Index for All Urban Consumers published by the 
        Bureau of Labor Statistics of the Department of Labor.

SEC. 2011. APPROPRIATIVE WATER RIGHTS CHARITABLE TAX DEDUCTION.

    Not later than 2 years after the date of the enactment of this Act, 
the Secretary of the Treasury shall clarify, though a revenue ruling, 
regulation, or other guidance, the Federal tax treatment of charitable 
donations of water rights acquired by appropriation.

SEC. 2012. STORAGE.

    (a) Pilot Program.--In order to determine the feasibility of 
agreements for long-term use of existing or expanded non-Federal 
storage and conveyance facilities to augment Federal water supply, 
ecosystem, and operational flexibility benefits, not later than 6 
months after the date of the enactment of this section, the Secretary 
of the Interior shall enter into cooperative agreements with non-
Federal entities to provide water supplies for units of the National 
Wildlife Refuge System, State wildlife areas, and private wetland 
areas, pursuant to section 3406(d)(2) of the Central Valley Project 
Improvement Act (Public Law 102-575; 106 Stat. 4706).
    (b) Requirements.--Cooperative agreements with non-Federal entities 
under this section shall--
            (1) include the purchase of storage capacity in non-Federal 
        facilities from willing sellers;
            (2) provide reimbursement to non-Federal entities for the 
        temporary use of available capacity in existing above-ground, 
        off-stream storage, and associated conveyance facilities owned 
        by local water agencies;
            (3) provide reimbursement to non-Federal entities for 
        operation and maintenance costs; and
            (4) provide reimbursement to Federal entities and non-
        Federal entities for studies conducted by such entities that 
        analyze the operational feasibility and costs of using non-
        Federal storage and conveyance facilities to provide the water 
        supplies described in subsection (a).
    (c) Report.--Not later than 2 years after the date of the enactment 
of this section, the Secretary of the Interior shall complete a report 
on the feasibility of the agreements described in subparagraph (a) for 
long-term use of existing or expanded non-Federal storage and 
conveyance facilities to augment Federal water supply, ecosystem, and 
operational flexibility benefits. The report shall be made available to 
the Chief of the National Wildlife Refuge System and to the public by 
posting such report on the appropriate website of the Secretary.

                   TITLE III--IMPROVED INFRASTRUCTURE

SEC. 3001. WATER LEAK CONTROL TECHNOLOGY STUDY.

    Part E of the Safe Drinking Water Act (42 U.S.C. 300j et seq.) is 
amended by adding at the end the following:

``SEC. 1460. WATER LEAK CONTROL TECHNOLOGY.

    ``(a) Study.--The Administrator shall conduct a study on 
technological improvements in location, mapping, monitoring, and 
communications practices to monitor and regulate pressure and detect 
leaks in transmission pipelines, water distribution systems, and 
aqueducts operated by public water systems.
    ``(b) Contents.--In conducting the study under subsection (a), the 
Administrator shall--
            ``(1) in consultation with industry, develop a compilation 
        of, and analyze, available and new technologies to improve 
        location and mapping practices used by States and industry to 
        monitor and regulate pressure and reduce water loss and leaks;
            ``(2) conduct an analysis of how increased use of existing 
        and new technologies documented in the compilation under 
        paragraph (1), including G.P.S. digital mapping technologies, 
        predictive analytic tools, the use of mobile devices, and other 
        advanced technologies, could reduce loss of water from leaks; 
        and
            ``(3) based on the analyses conducted under paragraphs (1) 
        and (2), identify criteria for effective pressure management 
        and water loss and leak control technologies to be used by 
        transmission pipelines, water distribution systems, and 
        aqueducts operated by public water systems.
    ``(c) Report.--Not later than 3 years after the date of the 
enactment of this section, the Administrator shall submit a report to 
Congress on the study under this section, including recommendations on 
how to incorporate, nationwide, technological improvements in practices 
in managing pressure and identifying water loss and leaks in aging 
infrastructure, provided that in developing such recommendations, the 
Administrator takes into consideration technical, operational, and 
economic feasibility.''.

SEC. 3002. WATER MAIN BREAK DATA CLEARINGHOUSE.

    Part B of the Safe Drinking Water Act (42 U.S.C. 300g et seq.) is 
amended by adding at the end the following:

``SEC. 1420A. WATER MAIN BREAK DATA CLEARINGHOUSE.

    ``(a) Online Data Clearinghouse.--
            ``(1) Establishment.--Not later than 2 years after the date 
        of enactment of this section, the Administrator shall establish 
        and maintain a publicly accessible website with a national data 
        clearinghouse on reported water main breaks and associated 
        repair activity.
            ``(2) Contents.--The website established pursuant to 
        paragraph (1) shall present--
                    ``(A) information submitted to the Administrator by 
                a public water system under this section with respect 
                to reported water main breaks;
                    ``(B) aggregate State and national data on reported 
                water main breaks; and
                    ``(C) trends in such information and data over 
                time.
            ``(3) Updates.--The website established pursuant to 
        paragraph (1) shall be updated at least twice per year.
    ``(b) Definition.--In this section, the term `reported water main 
break' means the unplanned rupture or breach of a pipe 6 inches in 
diameter or more in service as part of a public water system resulting 
in water escaping and being reported to the public water system by an 
employee or other person.
    ``(c) Rule.--Not later than one year after the date of enactment of 
this section, the Administrator shall issue a rule requiring each 
public water system serving more than 10,000 persons to submit to the 
Administrator information on each reported water main break in, and the 
repair activity for such break to be provided by, the public water 
system with respect to a calendar year. Such rule shall--
            ``(1) specify the format, content, quality assurance 
        procedure, and method of submission of information;
            ``(2) apply to reported water main breaks that occur in the 
        calendar year following the date of enactment of this section 
        and each calendar year thereafter;
            ``(3) allow for the submission, storage, and display of 
        information in electronic format;
            ``(4) allow for the submission of information by a public 
        water system serving 10,000 or fewer persons submitted on a 
        voluntary basis;
            ``(5) allow for submission of any additional information 
        that may be required of a public water system by a State 
        regarding reported water main breaks and repair activity; and
            ``(6) require that a summary of the information submitted 
        be included in a public water system's annual consumer 
        confidence report required under section 1414(c)(4).
    ``(d) Reported Water Main Break and Repair Information.--The rule 
issued under subsection (c) shall require each public water system 
serving more than 10,000 persons to submit to the Administrator the 
following information with respect to each reported water main break in 
the public water system:
            ``(1) To the extent practicable, the time and date the 
        reported water main break was reported to the public water 
        system.
            ``(2) The specific location of the reported water main 
        break.
            ``(3) The size, type, age, and bedding material of the 
        broken water main.
            ``(4) The elapsed time from the initial report of the water 
        main break to the public water system to the completion of 
        repairs.
            ``(5) The amount of water escaping from the public water 
        system between the time of the report and the repair, estimated 
        in accordance with `Water Audits and Loss Control Programs, 
        Manual--36' (2016) published by the American Water Works 
        Association or any successor manual.
            ``(6) The estimated cost of repairing the reported water 
        main break and associated public infrastructure, including 
        pavement restoration, and the cost of any damage to other 
        public or private property.
    ``(e) Annual Report.--Not later than 4 years after the date of 
enactment of this section, and annually thereafter, the Administrator 
shall prepare and make available to the public a report summarizing and 
evaluating submissions by public water systems pursuant to this 
section. Such report shall include information and recommendations 
concerning the methods and resources needed by public water systems to 
reduce the frequency, duration, and cost of water main breaks.''.

SEC. 3003. SUSTAINABLE WATER LOSS CONTROL PROGRAM.

    (a) Technical Assistance and Grant Program.--The Administrator of 
the Environmental Protection Agency shall establish and carry out a 
program to--
            (1) make grants to public water systems to voluntarily 
        undergo an audit of the public water system that is--
                    (A) conducted in accordance with the procedures 
                contained in ``Water Audits and Loss Control Programs, 
                Manual--36'', 4th edition, published by the American 
                Water Works Association; and
                    (B) validated under such criteria as may be 
                specified by the Administrator; and
            (2) provide technical assistance to public water systems 
        to--
                    (A) address any findings of audits conducted in 
                accordance with the procedures and criteria described 
                in paragraph (1), including audits conducted pursuant 
                to a grant under paragraph (1); and
                    (B) help such public water systems establish 
                sustainable water loss control programs.
    (b) Criteria.--In selecting public water systems to make grants and 
provide technical assistance to pursuant to subsection (a), the 
Administrator shall consider--
            (1) the relative share of the customer base of the public 
        water system made up of customers from disadvantaged 
        communities (as defined in section 2008); and
            (2) the ability of the public water system to successfully 
        sustain a water loss control program upon completion of the 
        audit.
    (c) Federal Share.--The Federal share of the cost of any audit for 
which a grant is awarded by the Administrator under subsection (a) 
shall not exceed 50 percent of the cost of the audit.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2018 through 2022.

SEC. 3004. TAX-EXEMPT FACILITY BONDS.

    (a) Volume Cap Exception.--Section 146 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new subsection:
    ``(o) Exception for Bonds for Water Infrastructure in Areas With 
Drought or Disaster.--
            ``(1) In general.--Only for purposes of this section, the 
        term `private activity bond' shall not include any exempt 
        facility bond issued as part of an issue described in paragraph 
        (4) or (5) of section 142(a) if not less than 95 percent of the 
        net proceeds of such bond are used to provide property 
        located--
                    ``(A) in an area that is, at any time during the 5-
                year period ending on the date of enactment of this 
                subsection, rated by the U.S. Drought Monitor as having 
                at least a D2 intensity, and
                    ``(B) in a State that is under a gubernatorial 
                drought declaration.
            ``(2) Termination.--Paragraph (1) shall not apply to any 
        bond issued more than 10 years after the date of the enactment 
        of this subsection.''.
    (b) Recycled Water Facilities.--Section 142(e) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following 
flush sentence:
``For purposes of this subsection, the term `water' includes recycled 
water.''.
    (c) Effective Date.--The amendments made by this subsection shall 
apply with respect to bonds issued after the date of the enactment of 
this Act.

SEC. 3005. IMPROVING GREEN INFRASTRUCTURE AND COMMUNITY WATER SYSTEMS 
              THROUGH STATE REVOLVING LOAN FUNDS.

    (a) Water Pollution Control State Revolving Loan Funds.--Section 
603 of the Federal Water Pollution Control Act (33 U.S.C. 1383) is 
amended by adding at the end the following:
    ``(j) Green Project Reserve.--Each State that has entered into a 
capitalization agreement pursuant to this title shall prioritize and, 
unless this funding is needed to protect public health, for each fiscal 
year, ensure that not less than 20 percent of funds used to provide 
assistance under this title is used for, projects to address green 
infrastructure, water or energy efficiency improvements, or other 
environmentally innovative activities, including activities related 
to--
            ``(1) improving the sustainability of community water 
        systems (as defined in section 1401 of the Safe Drinking Water 
        Act);
            ``(2) water efficiency or conservation, including the 
        rehabilitation or replacement of existing leaking pipes;
            ``(3) stormwater harvesting and use of reclaimed and 
        recycled water, and investment in pipes used for the purposes 
        of transporting recycled water;
            ``(4) increasing energy efficiency in public water systems 
        (as defined in section 1401 of the Safe Drinking Water Act), 
        including public water systems that use pump or hydraulic 
        systems; and
            ``(5) implementation of source water protection plans under 
        the Safe Drinking Water Act.''.
    (b) Drinking Water State Revolving Funds.--Section 1452 of the Safe 
Drinking Water Act (42 U.S.C. 300j-12) is amended by adding at the end 
the following:
    ``(s) Prioritization of Green Projects.--Each State that has 
entered into a capitalization agreement pursuant to this section may 
prioritize projects or activities that maximize the potential for 
efficient water use, reuse, recapture, and conservation, and energy 
conservation, taking into account the cost of constructing the project 
or activity and the cost of operating and maintaining the project or 
activity over the life of the project or activity.''.
    (c) Authorization of Appropriations.--
            (1) State water pollution control revolving funds.--Section 
        607 of the Federal Water Pollution Control Act (33 U.S.C. 1387) 
        is amended to read as follows:

``SEC. 607. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title--
            ``(1) $2,000,000,000 for fiscal year 2018; and
            ``(2) $2,400,000,000 for fiscal year 2019.''.
            (2) Drinking water treatment revolving loan fund.--Section 
        1452(m) of the Safe Drinking Water Act (42 U.S.C. 300j-12(m)) 
        is amended to read as follows:
    ``(m) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            ``(1) $1,186,000,000 for fiscal year 2018; and
            ``(2) $1,286,000,000 for fiscal year 2019.''.

SEC. 3006. BEST PRACTICES FOR ADMINISTRATION OF STATE REVOLVING LOAN 
              FUND PROGRAMS.

    Section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j-12), as 
amended, is further amended by adding at the end the following:
    ``(t) Best Practices for Program Administration.--The Administrator 
shall--
            ``(1) collect information from States on administration of 
        State programs with respect to State loan funds, including--
                    ``(A) efforts to streamline the process for 
                applying for assistance through such programs;
                    ``(B) programs in place to assist with the 
                completion of application forms;
                    ``(C) incentives provided to systems that partner 
                with small public water systems for the application 
                process; and
                    ``(D) techniques to ensure that obligated balances 
                are liquidated in a timely fashion;
            ``(2) not later than 3 years after the date of enactment of 
        the Water and Energy Sustainability through Technology Act, 
        disseminate to the States best practices for administration of 
        such programs, based on the information collected pursuant to 
        this subsection; and
            ``(3) periodically update such best practices, as 
        appropriate.''.

    TITLE IV--REPEAL CERTAIN TAX PREFERENCES FOR ENERGY AND NATURAL 
                       RESOURCE-BASED INDUSTRIES

SEC. 4001. NO EXPENSING FOR INTANGIBLE DRILLING AND DEVELOPMENT COSTS 
              FOR OIL AND GAS WELLS.

    (a) In General.--Section 263(c) of the Internal Revenue Code of 
1986 is amended--
            (1) in the second sentence, by striking ``are deductible'' 
        and inserting ``would, but for the last sentence of this 
        subsection, be deductible'', and
            (2) by adding at the end the following new sentence: ``In 
        the case of any taxable year beginning after December 31, 2017, 
        this subsection shall not apply with respect to any oil or gas 
        well.''.
    (b) Conforming Amendment.--
            (1) In general.--Section 263(i) of such Code is amended by 
        striking ``an oil, gas, or geothermal'' and inserting ``a 
        geothermal''.
            (2) Effective date.--The amendment made by this section 
        shall apply with respect to taxable years beginning after 
        December 31, 2017.

SEC. 4002. REPEAL OF PERCENTAGE DEPLETION.

    (a) In General.--Part I of subchapter I of chapter 1 of the 
Internal Revenue Code of 1986 is amended by striking sections 613 and 
613A (and by striking the items relating to such sections in the table 
of sections for such part).
    (b) Conforming Amendments.--
            (1)(A) Such part is amended by redesignating section 614 as 
        section 613 (and, in the table of sections for such part, by 
        redesignating the item relating to section 614 as an item 
        relating to section 613).
            (B) Clauses (iv) and (v) of section 465(c)(2)(A) are each 
        amended by striking ``section 614'' and inserting ``section 
        613''.
            (C) Section 1016(e) is amended by striking ``section 614'' 
        and inserting ``section 613''.
            (D) Section 1254(a)(3) is amended by striking ``section 
        614'' and inserting ``section 613''.
            (2) Section 45(c)(4) is amended to read as follows:
            ``(4) Geothermal energy.--
                    ``(A) In general.--The term `geothermal energy' 
                means energy derived from a geothermal deposit.
                    ``(B) Geothermal deposit.--The term `geothermal 
                deposit' means a geothermal reservoir consisting of 
                natural heat which is stored in rocks or in an aqueous 
                liquid or vapor (whether or not under pressure).''.
            (3) Section 48(a)(3)(A)(iii) is amended by striking 
        ``section 613(e)(2)'' and inserting ``section 45(c)(4)(B)''.
            (4) Section 381(c) is amended by striking paragraph (18).
            (5) Section 465(c)(1)(E) is amended by striking ``section 
        613(e)(2)'' and inserting ``section 45(c)(4)(B)''.
            (6) Section 468(d)(3) is amended by striking ``section 
        614'' and inserting ``section 613''.
            (7) Section 611(a) is amended by striking the second 
        sentence.
            (8) Section 613(d), as redesignated by paragraph (1), is 
        amended by striking ``includes only'' and all that follows and 
        inserting ``includes only an interest burdened by the costs of 
        production.''.
            (9) Section 636(a) is amended by striking ``(for purposes 
        of section 613)''.
            (10) Section 636(d) is amended by striking ``section 
        614(a)'' and inserting ``section 613(a)''.
            (11) Section 705(a) is amended--
                    (A) in paragraph (1), by adding ``and'' at the end 
                of subparagraph (A), by striking ``, and'' at the end 
                of subparagraph (B) and inserting a period, and by 
                striking subparagraph (C),
                    (B) in paragraph (2), by striking ``; and'' at the 
                end of subparagraph (B) and inserting a period, and
                    (C) by striking paragraph (3).
            (12) Section 901(e)(1)(A) is amended by striking ``(or, if 
        smaller'' and all that follows through ``under section 613)''.
            (13) Section 993(c)(2)(C) is amended by inserting ``(as 
        each such section was in effect before its repeal by the Tax 
        Reform Act of 2014)'' after ``section 613 or 613A''.
            (14) Section 1202(e)(3)(D) is amended by inserting ``(as 
        each such section was in effect before its repeal by the Tax 
        Reform Act of 2014)'' after ``section 613 or 613A''.
            (15) Section 1367(a) is amended--
                    (A) in paragraph (1), by adding ``and'' at the end 
                of subparagraph (A), by striking ``, and'' at the end 
                of subparagraph (B) and inserting a period, and by 
                striking subparagraph (C), and
                    (B) in paragraph (2), by adding ``and'' at the end 
                of subparagraph (C), by striking ``, and'' at the end 
                of subparagraph (D) and inserting a period, and by 
                striking subparagraph (E).
            (16) Section 1446(c) is amended by striking paragraph (2) 
        and by redesignating paragraph (3) as paragraph (2).
            (17) Section 4612(a)(7) is amended by inserting ``(as in 
        effect before its repeal by the Tax Reform Act of 2014)'' after 
        ``section 613''.
            (18) Section 4940(c)(3)(B) is amended--
                    (A) by striking clause (ii), and
                    (B) by striking all that precedes ``The deduction 
                provided'' and inserting the following:
                    ``(B) Modifications.--For purposes of subparagraph 
                (A), the deduction provided''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2017.

                        TITLE V--SAVINGS CLAUSE

SEC. 5001. SAVINGS CLAUSE.

    This Act shall not be interpreted or implemented in a manner that--
            (1) preempts or modifies any obligation of the United 
        States to act in conformance with applicable State law, 
        including applicable State water law;
            (2) affects or modifies any obligation under the Central 
        Valley Project Improvement Act (Public Law 102-575; 106 Stat. 
        4706);
            (3) overrides, modifies, or amends the applicability of the 
        National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.), the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
        seq.), or the Federal Water Pollution Control Act of 1948 (33 
        U.S.C. 1251 et seq.); or
            (4) authorizes the expenditure of funds for participation 
        in the construction or use of any facility first put into 
        service after January 1, 2015, that conveys water directly from 
        the Sacramento River to pumping facilities in the south 
        Sacramento-San Joaquin Delta that are part of the California 
        State Water Project or the Central Valley Project.
                                 <all>