,i  #aaf? ,,congress  #b;d ,session  ,h4
 ,r4 #hhhe  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,decemb] #g1 #bjbj,mr4
 ,c>twright 7= himself1 ,mr4 ,huffman1  
,ms4 ,norton1 & ,mr4 ,grijalva7         
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means1 & 9    
addition to ! ,committees on ,ov]sight &
 ,re=m1 & ,en]gy & ,comm]ce1 = a p]iod  
to be subsequ5tly det]m9$ by ! ,speak]1 
9 ea* case = consid]ation ( su*         
provisions z fall )9 ! jurisdiction ( ! 
committee conc]n$  ,a ,,bill  ,to       
provide inc5tives = ! pur*ase (         
wat]-effici5t products1 & = o!r         
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,wat] ,advanc$ ,te*nologies
 = ,effici5t ,res\rce ,use ,act ( #bjbj4
  #b4 ,def9itions ,9 ?is ,act3 7#a7     
,adm9i/rator ,! t]m ,adm9i/rator means !
 ,adm9i/rator ( ! ,environm5tal         
,protection ,ag5cy4  7#b7 ,ag5cy ,! t]m 
ag5cy has ! mean+ giv5 su* t]m 9 section
 #gijb7;a7 ( title #e1 ,unit$ ,/ates    
,code4  7#c7 ,cov]$ consum] ,! t]m cov]$

 consum] means an individual s]v$ by an 
eligible entity4  7#d7 ,eligible entity 
,! t]m eligible entity means-- 7,a7 a   
,/ate1 local1 or ,tribal gov]nm5t2  7,b7
 a dr9k+ wat] utility or wa/ewat]       
utility2  7,c7 a municipal wat] au?ority
 or a regional wat] au?ority2 or  7,d7 a
 nonpr(it organization4  7#e7 ,inc5tive 
,! t]m inc5tive includes-- 7,a7 rebates1
 v\*]s1 & o!r f9ancial inc5tives2 &     
7,b7 ! direct in/allation ( a           
,water,sense product4  7#f7 ,nonpr(it   
organization ,! t]m nonpr(it            
organization means an organization t--  
7,a7 is describ$ 9 section #eja7;c77#c7 
( ! ,int]nal ,rev5ue ,code ( #aihf 7#bf 
,u4,s4,c4 #eja7;c77#c772 &  7,b7 is     
exempt f taxation "u section #eja7;a7 ( 
su* ,code4  7#g7 ,product ,! t]m product
 means a product1 build+1 l&scape1      
facility1 process1 or s]vice4  7#h7     
,/ate ,! t]m ,/ate means ea* ( ! sev]al 
,/ates ( ! ,unit$ ,/ates1 ! ,di/rict (  
,columbia1 ,pu]to ,rico1 ! ,unit$ ,/ates
 ,virg9 ,isl&s1 ,guam1 ,am]ican ,samoa1 

& ! ,commonweal? ( ! ,nor!rn ,m>iana    
,isl&s4  7#i7 ,water,sense product ,!   
t]m ,water,sense product means a product
 t is c]tifi$ to display ! ,water,sense 
label "u ! ,water,sense program e/abli%$
 "u section #cbd;,b ( ! ,en]gy ,policy &
 ,cons]vation ,act 7#db ,u4,s4,c4       
#fbid;b74  #c4 ,f$]al procurem5t (      
,water,sense products  7a7 ,procurem5t  
7#a7 ,9 g5]al ,except z provid$ 9       
p>agraph 7#b71 9 procur+ any            
wat]-consum+ product1 ! head ( an ag5cy 
%all procure a ,water,sense product4    
7#b7 ,exceptions ,p>agraph 7#a7 does n  
apply if-- 7,a7 ) respect to ! type (   
wat]-consum+ product be+ procur$1 ! head
 ( an ag5cy f9ds1 9 writ+1 t-- 7i7 no   
,water,sense product is co/-effective   
ov] ! life ( su* type ( product1 tak+   
curr5t & future wat] & wa/ewat] co/     
sav+s into acc\nt2 or  7ii7 no          
,water,sense product ( su* type is      
reasonably available to meet !          
functional requirem5ts ( ! ag5cy2 or    
7,b7 ! wat]-consum+ product be+ procur$ 

is design$ = use 9 combat or            
combat-relat$ missions4  7b7            
,in/allation & ma9t5ance ,z applicable1 
! head ( an ag5cy t procures a          
,water,sense product "u subsection      
7a77#a7 %all use a c]tifi$ pr(essional  
7includ+ a lic5s$ plumb] or a lic5s$    
me*anical contractor1 z appropriate7 to 
in/all & ma9ta9 su* product4  7c7       
,measures ,to r$uce wat] consumption ,! 
head ( ea* ag5cy %all consid] adopt+    
measures to r$uce ag5cy wat]            
consumption1 includ+ su* measures z !   
use (-- 7#a7 wat] reuse1 reclamation1 or
 recycl+ te*nology2  7#b7 wat] leak     
detection te*nology2 &  7#c7 products   
t-- 7,a7 d n consume wat]2 &  7,b7 p]=m 
simil> functions z comp>able            
wat]-consum+ products4  7d7 ,li/+ (     
,water,sense products ,! ,adm9i/rator ( 
,g5]al ,s]vices %all cle>ly id5tify &   
prom95tly display1 9 a li/+ (           
wat]-consum+ products1 ,water,sense     
products4  7e7 ,regulations ,n lat] ?an 
#ahj days aft] ! date ( enactm5t ( ?is  

section1 ! ,adm9i/rator ( !             
,environm5tal ,protection ,ag5cy & !    
,director ( ! ,(fice ( ,managem5t &     
,budget %all issue regulations to c>ry  
out ?is section4  #d4 ,inc5tives = !    
pur*ase ( ,water,sense products  7a7    
,e/abli%m5t ,! ,adm9i/rator ( !         
,environm5tal ,protection ,ag5cy %all   
e/abli% a program to provide grants to  
eligible entities to provide inc5tives  
to cov]$ consum]s = ! pur*ase ( a       
,water,sense product4  7b7 ,eligibility 
,to be eligible to receive a grant "u   
?is section1 an eligible entity %all--  
7#a7 submit an application to !         
,adm9i/rator at su* "t1 9 su* =m1 &     
conta9+ su* in=mation z ! ,adm9i/rator  
may require2 &  7#b7 provide assurances1
 :i* ! ,adm9i/rator det]m9es are        
satisfactory1 t ! eligible entity w use 
su* grant to supplem5t1 b n supplant1   
o!r inc5tives t are available to a cov]$
 consum] = ! pur*ase ( a ,water,sense   
product4  7c7 ,evaluation crit]ia =     
applications ,9 evaluat+ an application 

submitt$ "u subsection 7b77#a71 !       
,adm9i/rator %all consid]-- 7#a7 !      
population s]v$ by ! eligible entity 9 !
 mo/ rec5t cal5d> ye> = :i* data are    
available2  7#b7 ! e/imat$ effect (     
provid+ inc5tives to su* population2    
7#c7 if ! eligible entity previ\sly     
receiv$ a grant "u ?is section-- 7,a7 ! 
degree to :i* ! use ( su* grant enc\rag$
 ! pur*ase ( ,water,sense products2 &   
7,b7 :e!r !re are am\nts ( su* grant t  
rema9 unus$2 &  7#d7 :e!r ! eligible    
entity promotes or implem5ts a program  
to recycle or manage ! disposal ( any   
products t are replac$ z a result ( !   
provision ( inc5tives "u ?is section4   
7d7 ,use ( grant  7#a7 ,9 g5]al ,an     
eligible entity t receives a grant "u   
?is section %all-- 7,a7 use su* grant to
 provide inc5tives to cov]$ consum]s t  
pur*ase a ,water,sense product2 or  7,b7
 ) approval f ! ,adm9i/rator1 provide   
"s1 or all1 ( su* grant to ano!r        
eligible entity = use 9 accordance )    
subp>agraph 7,a74  7#b7 ,adm9i/rative   

co/s ,n m ?an #ej p]c5t ( ea* grant     
provid$ "u ?is section may be us$ to pay
 = ! adm9i/rative co/ ( provid+         
inc5tives 9 accordance ) p>agraph 7#a74 
7#c7 ,inc5tive am\nts ,) respect to     
rebates1 v\*]s1 & o!r su* f9ancial      
inc5tives1 an eligible entity %all      
det]m9e ! am\nt to provide bas$ on !    
foll[+3 7,a7 ,! am\nt ( ! grant provid$ 
to ! eligible entity "u ?is section4    
7,b7 ,! am\nt ( any o!r inc5tives t are 
available to a cov]$ consum] = ! pur*ase
 ( a ,water,sense product4  7,c7 ,!     
e/imat$ am\nt necess>y to enc\rage a    
cov]$ consum] to pur*ase a ,water,sense 
product4  7,d7 ,z applicable1 ! co/s to 
a cov]$ consum] = onsite prep>ation1    
assembly1 & in/allation ( a ,water,sense
 product4  7e7 ,au?orization (          
appropriations ,!re are au?oriz$ to be  
appropriat$ to c>ry out ?is section--   
7#a7 #ej1jjj1jjj = fiscal ye> #bjba2    
7#b7 #ajj1jjj1jjj = fiscal ye> #bjbb2   
7#c7 #aej1jjj1jjj = fiscal ye> #bjbc2   
7#d7 #ajj1jjj1jjj = fiscal ye> #bjbd2 & 

7#e7 #ej1jjj1jjj = fiscal ye> #bjbe4    
#e4 ,exclusion f gross income ( am\nts  
receiv$ z inc5tives = ! pur*ase (       
,water,sense products  7a7 ,9 g5]al ,"p 
,,iii ( sub*apt] ,b ( *apt] #a ( !      
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ be=e section #adj ! foll[+ new
 section3  #aci;,i4 ,inc5tives = !      
pur*ase ( ,water,sense products  7a7 ,9 
g5]al ,9 ! case ( an individual1 gross  
income does n include any am\nt receiv$ 
z an inc5tive "u section #c ( ! ,wat]   
,advanc$ ,te*nologies = ,effici5t       
,res\rce ,use ,act ( #bjbj4  7b7 ,d5ial 
( d\ble b5efit  7#a7 ,d$uctions & cr$its
 ,no d$uction or cr$it "u ?is subtitle  
%all be all[$ = any exp5diture ) respect
 to :i* any am\nt exclud$ "u subsection 
7a7 0 provid$4  7#b7 ,basis adju/m5t ,! 
adju/$ basis ( any prop]ty ) respect to 
:i* an am\nt exclud$ "u subsection 7a7  
is provid$ %all be r$uc$ by ! am\nt s   
exclud$4  4  7b7 ,con=m+ am5dm5t ,!     
table ( sections = "p ,,iii ( sub*apt]  
,b ( *apt] #a ( su* ,code is am5d$ by   

ins]t+ be=e ! item relat+ to section    
#adj ! foll[+ new item3  ,sec4 #aci;,i4 
,inc5tives = ! pur*ase ( ,water,sense   
products4  4  7c7 ,effective date ,!    
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ! date ( !  
enactm5t ( ?is section4  #f4            
,modifications to income exclusion =    
cons]vation subsidies  7a7 ,9 g5]al     
,subsection 7a7 ( section #acf ( !      
,int]nal ,rev5ue ,code ( #aihf is       
am5d$-- 7#a7 by /rik+ any subsidy       
provid$ & ins]t+ any subsidy-- 7#a7     
provid$  1  7#b7 by /rik+ ! p]iod at !  
end & ins]t+ a comma1 &  7#c7 by add+ at
 ! end ! foll[+ new p>agraphs3  7#b7    
provid$ 7directly or indirectly7 by a   
public utility to a cu/om]1 or by a     
,/ate or local gov]nm5t to a resid5t (  
su* ,/ate or locality1 = ! pur*ase or   
in/allation ( any wat] cons]vation or   
effici5cy measure1 or  7#c7 provid$     
7directly or indirectly7 by a /orm wat] 
managem5t provid] to a cu/om]1 or by a  
,/ate or local gov]nm5t to a resid5t (  

su* ,/ate or locality1 = ! pur*ase or   
in/allation ( any /orm wat] managem5t   
measure4  4  7b7 ,con=m+ am5dm5ts  7#a7 
,def9ition ( wat] cons]vation or        
effici5cy measure & /orm wat] managem5t 
measure ,section #acf7;c7 ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$-- 7,a7 by
 /rik+ ,en]gy cons]vation measure 9 !   
head+ !re( & ins]t+ ,def9itions1  7,b7  
by /rik+ ,9 g5]al 9 ! head+ ( p>agraph  
7#a7 & ins]t+ ,en]gy cons]vation        
measure1 &  7,c7 by r$esignat+ p>agraph 
7#b7 z p>agraph 7#d7 & by ins]t+ aft]   
p>agraph 7#a7 ! foll[+3  7#b7 ,wat]     
cons]vation or effici5cy measure ,=     
purposes ( ?is section1 ! t]m wat]      
cons]vation or effici5cy measure means  
any evaluation ( wat] use1 or any       
in/allation or modification ( prop]ty1 !
 prim>y purpose ( :i* is to r$uce       
consumption ( wat] or to improve !      
managem5t ( wat] dem& ) respect to "o or
 m dwell+ units4  7#c7 ,/orm wat]       
managem5t measure ,= purposes ( ?is     
section1 ! t]m /orm wat] managem5t      

measure means any in/allation or        
modification ( prop]ty prim>ily design$ 
to r$uce or manage am\nts ( /orm wat] ) 
respect to "o or m dwell+ units4  4     
7#b7 ,def9ition ( public utility        
,section #acf7;c77#d7 ( su* ,code 7z    
r$esignat$ by p>agraph 7#a77;,c77 is    
am5d$ by /rik+ subp>agraph 7,b7 & ins]t+
 ! foll[+3  7,b7 ,public utility ,! t]m 
public utility means a p]son engag$ 9 ! 
sale ( electricity1 natural gas1 or wat]
 to resid5tial1 comm]cial1 or indu/rial 
cu/om]s = use by su* cu/om]s4  7,c7     
,/orm wat] managem5t provid] ,! t]m /orm
 wat] managem5t provid] means a p]son   
engag$ 9 ! provision ( /orm wat]        
managem5t measures to ! public4  7,d7   
,p]son ,= purposes ( subp>agraphs 7,b7 &
 7,c71 ! t]m p]son includes ! ,f$]al    
,gov]nm5t1 a ,/ate or local gov]nm5t or 
any political subdivision !re(1 or any  
in/rum5tality ( any ( ! =ego+4  4  7#c7 
,cl]ical am5dm5ts  7,a7 ,! head+ (      
section #acf ( su* ,code is am5d$-- 7i7 
by ins]t+ & wat] aft] en]gy1 &  7ii7 by 

/rik+ provid$ by public utilities4  7,b7
 ,! item relat+ to section #acf 9 !     
table ( sections ( "p ,,iii ( sub*apt]  
,b ( *apt] #a ( su* ,code is am5d$-- 7i7
 by ins]t+ & wat] aft] en]gy1 &  7ii7 by
 /rik+ provid$ by public utilities4  7c7
 ,effective date ,! am5dm5ts made by ?is
 section %all apply to taxable ye>s     
beg9n+ aft] ! date ( enactm5t ( ?is     
section4  7d7 ,no inf]5ce ,no?+ 9 ?is   
section or ! am5dm5ts made by ?is       
section %all be con/ru$ to create any   
inf]5ce ) respect to ! prop] tax        
treatm5t ( any subsidy receiv$ directly 
or indirectly f a public utility1 a /orm
 wat] managem5t provid]1 or a ,/ate or  
local gov]nm5t = any wat] cons]vation   
measure or /orm wat] managem5t measure  
be=e ! date ( ! enactm5t ( ?is section4