,i #aafth ,,congress #b;d ,session ,h4 ,r4 #hhhe ,,in ,,the ,,house ,,of ,,representatives ,december #g1 #bjbj,mr4 ,cartwright 7for himself1 ,mr4 ,huffman1 ,ms4 ,norton1 and ,mr4 ,grijalva7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committees on ,oversight and ,reform1 and ,energy and ,commerce1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to provide incentives for the purchase of water-efficient products1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,water ,advanced ,technologies for ,efficient ,resource ,use ,act of #bjbj4 #b4 ,definitions ,in this ,act3 7#a7 ,administrator ,the term ,administrator means the ,administrator of the ,environmental ,protection ,agency4 7#b7 ,agency ,the term agency has the meaning given such term in section #gijb7;a7 of title #e1 ,united ,states ,code4 7#c7 ,covered consumer ,the term covered consumer means an individual served by an eligible entity4 7#d7 ,eligible entity ,the term eligible entity means-- 7,a7 a ,state1 local1 or ,tribal government2 7,b7 a drinking water utility or wastewater utility2 7,c7 a municipal water authority or a regional water authority2 or 7,d7 a nonprofit organization4 7#e7 ,incentive ,the term incentive includes-- 7,a7 rebates1 vouchers1 and other financial incentives2 and 7,b7 the direct installation of a ,water,sense product4 7#f7 ,nonprofit organization ,the term nonprofit organization means an organization that-- 7,a7 is described in section #eja7;c77#c7 of the ,internal ,revenue ,code of #aihf 7#bf ,u4,s4,c4 #eja7;c77#c772 and 7,b7 is exempt from taxation under section #eja7;a7 of such ,code4 7#g7 ,product ,the term product means a product1 building1 landscape1 facility1 process1 or service4 7#h7 ,state ,the term ,state means each of the several ,states of the ,united ,states1 the ,district of ,columbia1 ,puerto ,rico1 the ,united ,states ,virgin ,islands1 ,guam1 ,american ,samoa1 and the ,commonwealth of the ,northern ,mariana ,islands4 7#i7 ,water,sense product ,the term ,water,sense product means a product that is certified to display the ,water,sense label under the ,water,sense program established under section #cbd;,b of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fbid;b74 #c4 ,federal procurement of ,water,sense products 7a7 ,procurement 7#a7 ,in general ,except as provided in paragraph 7#b71 in procuring any water-consuming product1 the head of an agency shall procure a ,water,sense product4 7#b7 ,exceptions ,paragraph 7#a7 does not apply if-- 7,a7 with respect to the type of water-consuming product being procured1 the head of an agency finds1 in writing1 that-- 7i7 no ,water,sense product is cost-effective over the life of such type of product1 taking current and future water and wastewater cost savings into account2 or 7ii7 no ,water,sense product of such type is reasonably available to meet the functional requirements of the agency2 or 7,b7 the water-consuming product being procured is designed for use in combat or combat-related missions4 7b7 ,installation and maintenance ,as applicable1 the head of an agency that procures a ,water,sense product under subsection 7a77#a7 shall use a certified professional 7including a licensed plumber or a licensed mechanical contractor1 as appropriate7 to install and maintain such product4 7c7 ,measures ,to reduce water consumption ,the head of each agency shall consider adopting measures to reduce agency water consumption1 including such measures as the use of-- 7#a7 water reuse1 reclamation1 or recycling technology2 7#b7 water leak detection technology2 and 7#c7 products that-- 7,a7 do not consume water2 and 7,b7 perform similar functions as comparable water-consuming products4 7d7 ,listing of ,water,sense products ,the ,administrator of ,general ,services shall clearly identify and prominently display1 in a listing of water-consuming products1 ,water,sense products4 7e7 ,regulations ,not later than #ahj days after the date of enactment of this section1 the ,administrator of the ,environmental ,protection ,agency and the ,director of the ,office of ,management and ,budget shall issue regulations to carry out this section4 #d4 ,incentives for the purchase of ,water,sense products 7a7 ,establishment ,the ,administrator of the ,environmental ,protection ,agency shall establish a program to provide grants to eligible entities to provide incentives to covered consumers for the purchase of a ,water,sense product4 7b7 ,eligibility ,to be eligible to receive a grant under this section1 an eligible entity shall-- 7#a7 submit an application to the ,administrator at such time1 in such form1 and containing such information as the ,administrator may require2 and 7#b7 provide assurances1 which the ,administrator determines are satisfactory1 that the eligible entity will use such grant to supplement1 but not supplant1 other incentives that are available to a covered consumer for the purchase of a ,water,sense product4 7c7 ,evaluation criteria for applications ,in evaluating an application submitted under subsection 7b77#a71 the ,administrator shall consider-- 7#a7 the population served by the eligible entity in the most recent calendar year for which data are available2 7#b7 the estimated effect of providing incentives to such population2 7#c7 if the eligible entity previously received a grant under this section-- 7,a7 the degree to which the use of such grant encouraged the purchase of ,water,sense products2 and 7,b7 whether there are amounts of such grant that remain unused2 and 7#d7 whether the eligible entity promotes or implements a program to recycle or manage the disposal of any products that are replaced as a result of the provision of incentives under this section4 7d7 ,use of grant 7#a7 ,in general ,an eligible entity that receives a grant under this section shall-- 7,a7 use such grant to provide incentives to covered consumers that purchase a ,water,sense product2 or 7,b7 with approval from the ,administrator1 provide some1 or all1 of such grant to another eligible entity for use in accordance with subparagraph 7,a74 7#b7 ,administrative costs ,not more than #ej percent of each grant provided under this section may be used to pay for the administrative cost of providing incentives in accordance with paragraph 7#a74 7#c7 ,incentive amounts ,with respect to rebates1 vouchers1 and other such financial incentives1 an eligible entity shall determine the amount to provide based on the following3 7,a7 ,the amount of the grant provided to the eligible entity under this section4 7,b7 ,the amount of any other incentives that are available to a covered consumer for the purchase of a ,water,sense product4 7,c7 ,the estimated amount necessary to encourage a covered consumer to purchase a ,water,sense product4 7,d7 ,as applicable1 the costs to a covered consumer for onsite preparation1 assembly1 and installation of a ,water,sense product4 7e7 ,authorization of appropriations ,there are authorized to be appropriated to carry out this section-- 7#a7 #ej1jjj1jjj for fiscal year #bjba2 7#b7 #ajj1jjj1jjj for fiscal year #bjbb2 7#c7 #aej1jjj1jjj for fiscal year #bjbc2 7#d7 #ajj1jjj1jjj for fiscal year #bjbd2 and 7#e7 #ej1jjj1jjj for fiscal year #bjbe4 #e4 ,exclusion from gross income of amounts received as incentives for the purchase of ,water,sense products 7a7 ,in general ,part ,,iii of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting before section #adj the following new section3 #aci;,i4 ,incentives for the purchase of ,water,sense products 7a7 ,in general ,in the case of an individual1 gross income does not include any amount received as an incentive under section #c of the ,water ,advanced ,technologies for ,efficient ,resource ,use ,act of #bjbj4 7b7 ,denial of double benefit 7#a7 ,deductions and credits ,no deduction or credit under this subtitle shall be allowed for any expenditure with respect to which any amount excluded under subsection 7a7 was provided4 7#b7 ,basis adjustment ,the adjusted basis of any property with respect to which an amount excluded under subsection 7a7 is provided shall be reduced by the amount so excluded4 4 7b7 ,conforming amendment ,the table of sections for part ,,iii of subchapter ,b of chapter #a of such ,code is amended by inserting before the item relating to section #adj the following new item3 ,sec4 #aci;,i4 ,incentives for the purchase of ,water,sense products4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this section4 #f4 ,modifications to income exclusion for conservation subsidies 7a7 ,in general ,subsection 7a7 of section #acf of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking any subsidy provided and inserting any subsidy-- 7#a7 provided 1 7#b7 by striking the period at the end and inserting a comma1 and 7#c7 by adding at the end the following new paragraphs3 7#b7 provided 7directly or indirectly7 by a public utility to a customer1 or by a ,state or local government to a resident of such ,state or locality1 for the purchase or installation of any water conservation or efficiency measure1 or 7#c7 provided 7directly or indirectly7 by a storm water management provider to a customer1 or by a ,state or local government to a resident of such ,state or locality1 for the purchase or installation of any storm water management measure4 4 7b7 ,conforming amendments 7#a7 ,definition of water conservation or efficiency measure and storm water management measure ,section #acf7;c7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by striking ,energy conservation measure in the heading thereof and inserting ,definitions1 7,b7 by striking ,in general in the heading of paragraph 7#a7 and inserting ,energy conservation measure1 and 7,c7 by redesignating paragraph 7#b7 as paragraph 7#d7 and by inserting after paragraph 7#a7 the following3 7#b7 ,water conservation or efficiency measure ,for purposes of this section1 the term water conservation or efficiency measure means any evaluation of water use1 or any installation or modification of property1 the primary purpose of which is to reduce consumption of water or to improve the management of water demand with respect to one or more dwelling units4 7#c7 ,storm water management measure ,for purposes of this section1 the term storm water management measure means any installation or modification of property primarily designed to reduce or manage amounts of storm water with respect to one or more dwelling units4 4 7#b7 ,definition of public utility ,section #acf7;c77#d7 of such ,code 7as redesignated by paragraph 7#a77;,c77 is amended by striking subparagraph 7,b7 and inserting the following3 7,b7 ,public utility ,the term public utility means a person engaged in the sale of electricity1 natural gas1 or water to residential1 commercial1 or industrial customers for use by such customers4 7,c7 ,storm water management provider ,the term storm water management provider means a person engaged in the provision of storm water management measures to the public4 7,d7 ,person ,for purposes of subparagraphs 7,b7 and 7,c71 the term person includes the ,federal ,government1 a ,state or local government or any political subdivision thereof1 or any instrumentality of any of the foregoing4 4 7#c7 ,clerical amendments 7,a7 ,the heading of section #acf of such ,code is amended-- 7i7 by inserting and water after energy1 and 7ii7 by striking provided by public utilities4 7,b7 ,the item relating to section #acf in the table of sections of part ,,iii of subchapter ,b of chapter #a of such ,code is amended-- 7i7 by inserting and water after energy1 and 7ii7 by striking provided by public utilities4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of enactment of this section4 7d7 ,no inference ,nothing in this section or the amendments made by this section shall be construed to create any inference with respect to the proper tax treatment of any subsidy received directly or indirectly from a public utility1 a storm water management provider1 or a ,state or local government for any water conservation measure or storm water management measure before the date of the enactment of this section4