Sec. 116. Water efficiency, conservation, and sustainability

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In this section: The term Administrator means the Administrator of the Environmental Protection Agency. The term eligible entity means any of the following: A State, local, or Tribal government, or any special-purpose unit of such a government (including a municipal water authority). A public water system. A nonprofit organization. The term Energy Star program means the Energy Star program established by section 324A of the Energy Policy and Conservation Act ( 42 U.S.C. 6294a ).

The term low-income household means a household that meets the income qualifications established under— section 2605(b)(2) of the Low-Income Home Energy Assistance Act of 1981 ( 42 U.S.C. 8624(b)(2) ); or the Low-Income Household Drinking Water and Wastewater Emergency Assistance Program authorized by section 533 of division H of the Consolidated Appropriations Act, 2021 ( Public Law 116–260 ; 134 Stat. 1627). The term public water system has the meaning given the term in section 1401 of the Safe Drinking Water Act ( 42 U.S.C. 300f ).

The term water efficiency incentive program means a program for providing incentives, including direct installation services, to residential, commercial, or industrial customers of a public water system for the purchase, lease, installation, use, or implementation, as applicable, of water-efficient upgrades. The term water-efficient upgrade means a product, landscape, label, process, or service for a residential, commercial, or industrial building, or the landscape of such a building, that is— rated for water efficiency and performance under the WaterSense program or the Energy Star program; or otherwise determined by the Administrator to improve water-use efficiency.

The term water-efficient upgrade includes— a faucet; a showerhead; a dishwasher; a toilet; a clothes washer; an irrigation product or service; advanced metering infrastructure; a flow monitoring device; a landscaping or gardening product, including moisture control or water-enhancing technology; xeriscaping, turf removal, or another landscape conversion that reduces water use (except for the installation of artificial turf); and any other product, landscape, process, or service— certified pursuant to the WaterSense program; or otherwise determined by the Administrator to reduce water use or water loss, including products rated for water efficiency and performance under the Energy Star program.

The term water loss control program means a program to identify and quantify water uses and losses, implement controls to reduce or eliminate losses and leaks, and evaluate the effectiveness of such controls. The term WaterSense program means the program established by section 324B of the Energy Policy and Conservation Act ( 42 U.S.C. 6294b ). The Administrator shall establish a program to award grants to eligible entities that have established water efficiency incentive programs to carry out those water efficiency incentive programs (referred to in this subsection as the grant program ).

In carrying out the grant program, the Administrator shall award not less than 50 percent of the amounts made available to carry out this subsection in each fiscal year to eligible entities that service an area that— has been designated as D2 (severe drought) or greater according to the United States Drought Monitor for a minimum of 4 weeks during any of the 3 years preceding the date of the grant award; or is within a county for which a drought emergency has been declared by the applicable Governor at any time during the 3-year period preceding the date of the grant award.

Subject to subparagraph (B), a grant awarded under the grant program shall be in an amount that is not less than $250,000. The Administrator may award a grant in an amount that is less than $250,000 if the grant is awarded to, or for the benefit of, a public water system that serves fewer than 10,000 customers. An eligible entity receiving a grant under the grant program shall— use grant funds to carry out a water efficiency incentive program for customers of a public water system; or provide grant funds to another eligible entity to carry out a water efficiency incentive program described in subparagraph (A).

An eligible entity receiving a grant under the grant program shall use not less than 40 percent of the amount of the grant to provide water-efficient upgrades to low-income households. Subject to subparagraph (B), the Federal share of the cost of carrying out a water efficiency incentive program using a grant awarded under the grant program shall not exceed 80 percent. The Administrator may increase the Federal share under subparagraph

(A)to 100 percent if the Administrator determines that an eligible entity is unable to pay, or would experience significant financial hardship if required to pay, the non-Federal share. Amounts provided under a grant under the grant program shall be used to supplement, and not supplant, other Federal, State, local, or Tribal funds made available to carry out water efficiency incentive programs. There is authorized to be appropriated to carry out this subsection $50,000,000 for each of fiscal years 2023 through 2028. Of the amounts authorized to be appropriated under subparagraph

(A)each fiscal year, not more than 4 percent is authorized to pay the administrative costs of the Administrator. The Administrator shall establish and carry out a program (referred to in this subsection as the program )— to make grants and provide technical assistance to eligible entities to perform annual audits of public water systems that are— conducted in accordance with the procedures contained in the manual published by the American Water Works Association entitled M36 Water Audits and Loss Control Programs, Fourth Edition (or any successor manual determined appropriate by the Administrator); and validated under such criteria as may be specified by the Administrator; and to make grants and provide technical assistance to eligible entities— to implement controls to address real water losses, apparent water losses, or a combination of real and apparent water losses that are identified in an audit conducted and validated in accordance with the procedures and criteria described in subparagraph (A); and to help public water systems that have conducted and validated such an audit establish water loss control programs. In selecting eligible entities to receive grants and technical assistance under the program, the Administrator shall consider— whether the public water system that would be served by the grants or technical assistance serves a disadvantaged community (as defined in section 1452(d)(3) of the Safe Drinking Water Act ( 42 U.S.C. 300j–12(d)(3) )); and the ability of the public water system that would be served by the grants or technical assistance, on completion of an audit conducted and validated in accordance with the procedures and criteria described in paragraph (1)(A)— to successfully sustain a water loss control program; and to demonstrate that the water loss control program will reduce real water losses, apparent water losses, or a combination of real and apparent water losses from the public water system. The Administrator shall— annually compile, by Environmental Protection Agency region, information on the amount of water savings achieved pursuant to this subsection; and publish on the website of the Administrator the information compiled under subparagraph (A). There is authorized to be appropriated to carry out this subsection $40,000,000 for each of fiscal years 2023 through 2028, of which— $20,000,000 each fiscal year is authorized to be appropriated to carry out paragraph (1)(A); and $20,000,000 each fiscal year is authorized to be appropriated to carry out paragraph (1)(B). Of the amounts authorized to be appropriated under subparagraph

(A)for grants under the program each fiscal year, not more than 4 percent is authorized to be appropriated for the administrative costs of making such grants.

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