# Water Use Efficiency Legislation in the 114th Congress

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URL: https://www.frixlaw.com/law-library/documents/crs%3AR44482

## Record

- **Collection:** Congressional research report
- **Document type:** CRS Report
- **Published:** December 15, 2016
- **Citation:** R44482

## Text

Water Use Efficiency Legislation in the
114th Congress
name redacted
Specialist in Resources and Environmental Policy
December 15, 2016

Congressional Research Service
7-....
www.crs.gov
R44482

Water Use Efficiency Legislation in the 114th Congress

Summary
More than two dozen legislative proposals in the 114th Congress were introduced that included
provisions concerning water use efficiency, or water conservation, in nonagricultural sectors.
These legislative proposals did not seek to set specific enforceable water use efficiency standards
or goals. Rather, most sought to encourage or provide incentives for adoption of practices,
technologies, and measures to achieve improved water use efficiency.
The 114th Congress legislation can be broadly grouped in five categories of proposals.
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Codifying the WaterSense program. WaterSense is a voluntary labeling and
recognition program that seeks to help consumers and businesses identify highly
water-efficient products, services, and homes. It was established administratively
by the Environmental Protection Agency in 2006. Nine legislative measures
included provisions to establish the program in law.
Research and development. Several bills focused on research and development
aspects of water use efficiency, including proposals that addressed needs for
more and better water use data. Research also is examining technology advances
in water and wastewater treatment facilities that would achieve water and energy
savings.
Water use efficiency in buildings. Buildings are estimated to account for about
13% of total water consumed in the United States; one-quarter of that total is
used by commercial buildings, and three-quarters by residences. It is sometimes
argued that the federal government should lead by example. Thus, several bills in
the 114th Congress addressed aspects of water use efficiency in federal buildings.
Financial and technical assistance. The largest number of bills in the 114th
Congress proposed to provide technical and financial assistance for identifying,
adopting, or demonstrating practices or measures that conserve water. A number
of the bills proposed to assist owners and operators of public water systems and
water utilities in adopting or installing water-efficient systems, while a few
proposed to help provide incentives for consumers to purchase and install waterefficient products or services.
Federal tax incentives. Several bills proposed to use the federal tax code to
provide incentives for adopting or installing equipment or practices to save water,
such as a federal tax credit for purchasing qualified equipment or federal tax
exemption of rebates or other financial incentives received for installing water
conservation measures.

Some of the policy approaches described in this report were included in bills that addressed
multiple aspects of water use efficiency alone, such as WaterSense and financial assistance. In
other proposals, water use efficiency was one of a number of issues, but not the main issue,
contained in a comprehensive policy proposal on topics such as energy policy, water policy
generally, or solutions to the western U.S. drought. A few of the bills discussed here passed the
Senate or House during the 114th Congress, and one measure that addressed water use efficiency
in part (i.e., water use in buildings) was enacted. Many of these proposals also were introduced in
previous Congresses.

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Water Use Efficiency Legislation in the 114th Congress

Contents
Codifying the WaterSense Program................................................................................................. 1
Research and Development Proposals............................................................................................. 3
Water Use Efficiency in Buildings .................................................................................................. 3
Financial and Technical Assistance ................................................................................................. 5
Tax Incentives.................................................................................................................................. 7
Conclusion ....................................................................................................................................... 7

Contacts
Author Contact Information ............................................................................................................ 8

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Water Use Efficiency Legislation in the 114th Congress

M

ore than two dozen legislative proposals in the 114th Congress included provisions
concerning water use efficiency, or water conservation. These legislative proposals did
not seek to set specific enforceable water use efficiency standards or goals. Rather,
most sought to encourage or provide incentives for practices, technologies, and measures to
achieve improved water use efficiency.
Some of the proposals were standalone bills that solely addressed water use efficiency and
conservation. Some were components of bills that addressed western U.S. drought; critical water
resource conditions in western states have contributed to national policy proposals that include
water use efficiency. Some of the water use efficiency proposals were included in comprehensive
energy policy bills. That is, water efficiency and energy efficiency were linked in some
legislation, although water use efficiency was generally the secondary policy consideration in
such bills. Many of the water use efficiency proposals also had been introduced in previous
Congresses, but did not advance.
The 114th Congress legislation can be broadly grouped in five categories of proposals, which are
described in this report.1
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Codifying the WaterSense program,
Research and development,
Water use efficiency in buildings, especially federal buildings,
Financial and technical assistance, and
Tax incentives.

A few bills passed the Senate or House, and one measure that addressed water use efficiency in
part (i.e., water use in buildings) was enacted.

Codifying the WaterSense Program
WaterSense is a voluntary labeling and recognition program created by the Environmental
Protection Agency (EPA) in 2006 as a companion to Energy Star, which is a similar program
administered by EPA and the Department of Energy (DOE). Energy Star is authorized in law
(Energy Policy Act of 2005, P.L. 109-58, 42 U.S.C. §6294a), while WaterSense is not. Both
programs involve partnerships between government, manufacturers, and others that seek to help
consumers and businesses easily identify highly efficient products, homes, and buildings, with
Energy Star focusing on energy efficiency and WaterSense focusing on water efficiency. While
the latter program’s central focus is on reducing water use, EPA recognizes that water efficiency
also results in energy savings.2
The program’s overall goal is to identify and certify through labeling products that are at least
20% more efficient than standard products available in the market. Through WaterSense, EPA has
so far issued performance-based water-use specifications for seven product categories and has
others under development. EPA also has issued a New Home Specification that incorporates
1

Legislation or policy proposals concerning agricultural water use or water use efficiency and conservation by the
agriculture sector are beyond the scope of this report.
2
For discussion of the relationship between water use and energy, see CRS Report R43200, Energy-Water Nexus: The
Water Sector’s Energy Use, by (name redacted) , and CRS Report R43199, Energy-Water Nexus: The Energy Sector’s
Water Use, by (name redacted). EPA estimates that to date, WaterSense has helped consumers save a cumulative 1.1
trillion gallons of water and over $21.7 billion in water and energy savings. See https://www3.epa.gov/watersense/
about_us/milestones.html.

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Water Use Efficiency Legislation in the 114th Congress

existing criteria for indoor products and outdoor uses. Once a specification for a product category
is established, in order to obtain a WaterSense label, manufacturers submit their products for
testing by third-party laboratories or certifying bodies that have been licensed by EPA.3
Legislative proposals to formally establish the program in law have been introduced a number of
times since the 111th Congress. One of the arguments in support of codifying the WaterSense
program legislatively has been that, because the program is an EPA administrative initiative, it is
difficult for EPA program managers and supporters to call on resources to expand its activities;
establishing the program in law, especially with authorization of appropriations, would give the
program status to address this problem, proponents say. The program is funded through regular
appropriations to EPA that have been less than $5 million annually, or less than 10% of amounts
appropriated for the Energy Star program.4 A number of bills were introduced in the 114th
Congress to codify in law a WaterSense program at EPA, direct the EPA Administrator to
establish and maintain water-efficiency performance standards, promote the WaterSense label,
review and update WaterSense specifications, and provide information to the public.
Bills to establish WaterSense in law included the following.
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S.Amdt. 3221, an amendment to S. 2012, the Energy Policy Modernization Act,
was approved by the Senate on April 19, 2016. It would, among other provisions,
direct EPA to review existing WaterSense specifications not more than six years
after adoption and make revisions to achieve additional water savings.
Language identical to the provision in S. 2012 was included in S. 2848, the Water
Resources Development Act of 2016, which the Senate passed on September 15,
2016. Comprehensive water resources development legislation subsequently was
passed by the House and Senate (S. 612), but it did not include the WaterSense
provisions.
Another comprehensive energy policy bill introduced in the Senate, S. 2089, the
American Energy Innovation Act, included a provision to codify WaterSense. It
proposed to authorize appropriations of $5 million annually for four years, to be
adjusted for inflation in subsequent fiscal years.
S. 176, the Water in the 21st Century Act, proposed to codify the WaterSense
program at EPA and authorize a total of $50 million in appropriations over four
years, beginning at $5 million and increasing to $20 million in the fourth year.
Similar House legislation was H.R. 291.
Three bills that expressly addressed the western U.S. drought, S. 1894 and S.
2533/H.R. 5247, proposed to similarly codify the program. These bills proposed
to authorize appropriations of $5 million annually for five years.
H.R. 8, the North American Energy Security and Infrastructure Act, a
comprehensive energy policy bill passed by the House in December 2015,
included a provision to codify the WaterSense program; however, this bill did not
authorize appropriations to implement the program.
H.R. 3720, the Water Advanced Technologies for Efficient Resource Use Act,
likewise proposed to establish the program in law. It proposed to authorize a total
of $87.5 million in appropriations, beginning at $7.5 million and increasing to

3

See http://www.epa.gov/watersense for general information.
U.S. Government Accountability Office, Energy Star: Providing Additional Opportunities for Additional Review of
EPA’s Decisions Could Strengthen the Program, GAO-11-888, September 2011, p. 9.
4

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$50 million in the fourth year, to be adjusted for inflation in subsequent fiscal
years.

Research and Development Proposals
Bills in the 114th Congress included varied approaches to research and development of
technologies to achieve improved water use efficiency.
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S. 653, the Water Resources Research Amendments Act of 2015, proposed to
reauthorize the Water Resources Research Act (P.L. 88-379, as amended) and
provide grant funding to Water Resources Research Institutes in each state,
territory, and the District of Columbia for applied water supply research through
FY2020. This bill, which the Senate passed in June 2015, added research into
alternative approaches to water use efficiency and energy efficiency of
wastewater treatment works to the scope of the nation’s water research agenda.
Other bills with similar provisions included H.R. 291, S. 176, and S. 2848.
Several bills concerned with the western U.S. drought included provisions
directing the U.S. Geological Survey to establish a water data system to “advance
the availability, timely distribution, and widespread use of water data and
information for water management, education, research, assessment, and
monitoring purposes.” Underlying these provisions is concern that there is need
for more and better data on water use that would assist decisionmaking by
government, water managers, communities, and the private sector. Bills with
these “open water data system” provisions included H.R. 291, S. 176, S. 1837,
and S. 1894.
The purpose of S. 1485, the Water Efficiency Innovation Act, was “to provide for
the advancement of energy-water efficiency research, development, and
deployment activities.” To do so, it proposed to direct the Department of Energy
to advance energy efficiency in water and wastewater treatment facilities,
including systems that treat municipal, industrial, and agricultural waste.
H.R. 4653 was a bill that broadly addressed financial and technical management
of water systems that are subject to requirements of the Safe Drinking Water Act.
Among its provisions, this bill proposed to direct EPA to develop criteria for
effective water loss and leak control technology to be used by water systems.
Leak detection has been referred to as an “under-appreciated” water conservation
strategy.

Water Use Efficiency in Buildings
Buildings are estimated to account for approximately 13% of total water consumed in the United
States per day. Of that total, 26% is estimated to be used by commercial building occupants, and
74% by homeowners.5 EPA’s WaterSense program focuses primarily on water use efficiency of
products used inside and outside residential buildings, but some of its specifications (e.g., for
bathroom fixtures) also apply to products used in commercial buildings such as hotels, motels,
restaurants, schools, and office buildings.
5

U.S. Environmental Protection Agency, Buildings and their Impact on the Environment: A Statistical Summary, April
22, 2009.

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It is sometimes argued that, on matters of policy, the federal government should lead by example.
In that regard several existing policy requirements direct federal agencies to use water-efficient
products and services.
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Section 423 of the Energy Independence and Security Act of 2007 (P.L. 100-140,
42 U.S.C. §17083) directs the energy managers of federal buildings to conduct
water and energy evaluations of their buildings and to implement energy and
water efficiency measures identified through those audits.
Executive Order 13423 (January 26, 2007) directed federal agencies to reduce
water consumption intensity through life-cycle cost-effective measures by 2%
annually, or 16% by the end of FY2015, and to acquire goods and services that
are energy-efficient, water-efficient, and use recycled content.
Executive Order 13693 (May 25, 2015) is the most recent Executive Order
concerned with federal environmental, energy, and transportation management.6
In particular, it extends to FY2025 the schedule in E.O. 13423 requiring federal
buildings to reduce water consumption intensity by 2% annually, or by 36%
relative to a FY2007 baseline. It also broadens the mandate to include reducing
agency potable water consumption intensity; reducing agency industrial,
landscaping, and agricultural water consumption; installing water meters in
federal buildings to improve water conservation and management; and installing
green infrastructure features to help with stormwater and wastewater
management. It directs that all new construction of federal buildings greater than
5,000 gross square feet be designed, where feasible, to be “water net-zero” by
FY2030 (i.e., to return the equivalent amount of water as was withdrawn from all
sources through practices such as recycle and reuse). Further, it directs agencies
to give purchase preference to WaterSense-certified products and services and
products designated under the Department of Energy’s Federal Energy
Management Program (FEMP).7

Several bills in the 114th Congress addressed aspects of water use efficiency in federal buildings.
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H.R. 3720 proposed to build on E.O. 13693 to direct federal agencies to give
purchase preference to WaterSense-certified products and services and FEMPdesignated products.8
S. 869, the All-of-the-Above Federal Building Energy Conservation Act,
proposed to authorize DOE to establish energy performance requirements for

6

E.O. 13693 revoked and replaced E.O. 13514 (2009), which had extended until FY2020 the schedule in E.O. 13423
that federal buildings reduce water consumption intensity by 2% annually, or 26% total by the end of FY2020. These
Executive Orders address a wide range of topics and sustainability practices of federal agencies, including but not
limited to water use efficiency.
7
FEMP provides resources and tools to help agencies purchase energy- and water-efficient products. FEMP has issued
acquisition guidance for 67 product categories; two of these address water efficiency and 65 address energy efficiency.
FEMP’s designation of water-efficient products (for faucets, showerheads, toilets, and urinals; and pre-rinse spray
valves) adopts and defers to EPA’s WaterSense specifications for the same products, to avoid duplication. FEMP has
developed water efficiency best management practices (BMPs) to help agencies increase water efficiency.
8
Some say that it is unnecessary for Congress to codify elements of an Executive Order that is directed at government
agencies, while others believe that codification provides certainty and greater permanence than do Executive Orders,
which have the force and effect of law only if the presidential action is based on power vested in the President by the
U.S. Constitution or delegated to the President by the Congress. For discussion, see CRS Report RS20846, Executive
Orders: Issuance, Modification, and Revocation, by (name redacted) and (name redacted)
.

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federal buildings that consider energy and water savings. It also proposed to
require federal energy managers to perform energy and water evaluations and to
implement energy and water savings measures. Similar provisions were included
in S. 720/H.R. 2177, the Energy Savings and Industrial Competitiveness Act.
H.R. 614, the Savings, Accountability, Value, and Efficiency (SAVE) Act,
similarly proposed to direct federal building energy managers to adopt identified
energy and water conservation savings.
Two bills included provisions that addressed the energy and water savings
potential of thermal insulation. The bills were H.R. 568, the Thermal Insulation
Efficiency Improvement Act, and H.R. 8. They proposed to require DOE to
report to Congress on the impact of thermal insulation on both energy and water
use systems for potable hot and chilled water in federal buildings, and the return
on investment of installing such insulation.

One enacted bill, S. 535, the Energy Efficiency Improvement Act of 2015 (P.L. 114-11) in part
addresses energy and water use efficiency in commercial buildings. Among its provisions, the bill
requires the General Services Administration (GSA) to develop and publish model leasing
provisions to encourage building owners and tenants to use cost-effective energy efficiency and
water efficiency measures in commercial buildings. It also requires GSA to develop policies and
best practices to implement the measures for the realty services provided by the GSA to federal
agencies and to make these policies and practices available to state, county, and municipal
governments for their use in managing owned and leased buildings.9

Financial and Technical Assistance
The largest number of water use efficiency bills in the 114th Congress proposed to provide
technical and financial assistance for adopting or demonstrating practices or measures that
conserve water. A number of the bills proposed to assist owners and operators of public water
systems and water utilities in adopting or installing water-efficient systems, while a few proposed
to help provide incentives for consumers to purchase and install water-efficient products or
services.
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Several bills (H.R. 8, S. 2012, S. 2089, S. 886, and H.R. 3143) included similar
provisions to establish a Smart Energy and Water Efficiency Pilot Program
administered by DOE to award grants to water systems, utilities, and water
districts to demonstrate innovative technologies for energy and water efficiency.
The House passed H.R. 8 in December 2015, and the Senate passed S. 2012 in
April 2016.
Separate legislation, S. 2673, proposed to establish a grant program at EPA for
technical assistance and financing of innovative technologies to be used by
public water and wastewater systems to address a range of project types
including water conservation, water quality, drinking water, and treating
agricultural, municipal, and industrial wastewater. Authorized funding under this

9

A predecessor bill in the 114th Congress, S. 128, contained similar provisions that addressed energy and water
efficiency measures in federal and commercial buildings. A House bill with similar provisions is H.R. 873. Further,
Congress included similar provisions in separate legislation (S. 1), which the House and Senate approved early in 2015.
However, President Obama vetoed S. 1 over concerns with other parts of the bill, which would have authorized the
Keystone XL pipeline, and the Senate failed to override the President’s veto.

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program would be $50 million per year. S. 2848 included a similar grant
program.
H.R. 2177 and S. 720 included provisions directing the Department of Energy to
work with manufacturers to identify opportunities for improved water-efficient
processes in manufacturing, along with technical assistance on energy efficiency,
pollution prevention, and natural resource conservation in manufacturing.
Several bills (S. 176, H.R. 291, S. 741, H.R. 1278, and H.R. 4653) included
provisions that proposed to authorize EPA to award grants to owners and
operators of water systems to increase the systems’ resilience to changes in
hydrologic conditions. Among other eligible uses would be projects to conserve
water or enhance water use efficiency of the water system. The legislation
proposed to authorize $50 million per year for five years.
Two bills that addressed the western U.S. drought (S. 1837 and H.R. 2983) and
two standalone measures (H.R. 1775 and S. 896) included provisions that
proposed to authorize EPA to award planning, development, and implementation
grants for innovative stormwater management projects. A fifth bill (H.R. 4648),
while not directly authorizing assistance, proposed to establish in law the
authority to reserve a portion of Clean Water Act infrastructure funding for such
projects. Innovative stormwater management techniques, such as green
infrastructure projects using natural systems (e.g., planting trees and restoring
wetlands), are intended to mimic natural systems as a way to reduce and treat
stormwater at its source, thus saving the water resource and improving water
quality.10
Three bills (S. 176, H.R. 291, and H.R. 3720) proposed to authorize assistance to
state, local, or tribal governments; wastewater, water, or energy utilities; or
nonprofit organizations to support incentive programs for residential waterefficient products and services. Throughout the United States, a number of local
governments and water and energy utilities offer rebates, vouchers, or other types
of incentives to consumers, but providing resources to support such programs can
be challenging. The legislation proposed to authorize EPA to provide assistance
to eligible entities for such consumer incentive programs.
Finally, several bills in the 114th Congress proposed to establish a new federal
financing program for water infrastructure projects in western states. One of the
goals of funded projects would be water efficiency and energy efficiency in
development of water supply projects. The proposal, called the Reclamation
Infrastructure Finance and Investment Act (RIFIA), is modeled after Water
Infrastructure Finance and Investment Act (WIFIA) legislation that Congress
enacted in 2014 (P.L. 113-121).11 WIFIA is to be implemented by EPA and the
Army Corps of Engineers throughout the United States; RIFIA would be
implemented by the Bureau of Reclamation solely in western states. Bills that
contained provisions to provide federal credit assistance to projects in the
western states include S. 176/H.R. 291, S. 1837, S. 1894, S. 2533/H.R. 5247, and
H.R. 6022.

10

For information, see CRS Report R43131, Green Infrastructure and Issues in Managing Urban Stormwater, by
(name redacted) .
11
For information, see CRS Report R43315, Water Infrastructure Financing: The Water Infrastructure Finance and
Innovation Act (WIFIA) Program, by (name redacted) .

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Tax Incentives
The final category of bills in the 114th Congress proposed to use the federal tax code to provide
incentives for improved water use efficiency.
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Two bills (H.R. 2983 and S. 1837) proposed to amend the Internal Revenue Code
of 1986 to provide a refundable federal tax credit for the purchase and
installation of a qualified water-harvesting system. Rain barrels and similar
rainwater harvesting systems collect stormwater runoff and store the water for
subsequent uses such as irrigation, toilet flushing, washing clothes, or washing
vehicles, thus reducing water use and managing stormwater. A few states (for
example, Arizona and Texas) currently allow tax exemption under state law for
installing such systems.
Two other bills (H.R. 3720 and H.R. 4615) proposed to amend the Internal
Revenue Code of 1986 to provide that rebates or other types of financial
incentives received for installing water conservation measures are exempt from
federal taxation. Energy efficiency rebates have been exempt from federal tax
since 1992. These bills were intended to achieve the same treatment for rebates
or other assistance provided for water efficiency equipment or measures.12

Conclusion
This report has identified five categories of bills in the 114th Congress that addressed water use
efficiency, or water conservation, approaches and policy. A significant number of bills—often
more than two dozen—have similarly been introduced in prior Congresses. Many of the 114th
Congress proposals have been introduced multiple times. For example, five bills to establish the
WaterSense program in law were introduced in the 111th Congress, and eight measures to do so
were introduced in 2015 and 2016. The number of bills that proposed to authorize grants or other
financial assistance has increased—five bills were proposed in the 111th Congress, while 20 were
introduced in 2015 and 2016.
Some of the policy approaches described in this report were included in bills that addressed
multiple aspects of water use efficiency. One such bill is H.R. 3720, with provisions that touched
on four aspects of the issue—WaterSense, water use in buildings, financial assistance, and tax
incentives. In other proposals, water use efficiency was one of a number of issues, but not the
main issue, contained in comprehensive policy proposals on topics such as energy policy (e.g.,
H.R. 8, S. 2012, and S. 2089), water policy generally (H.R. 291 and S. 176), or solutions to the
western U.S. drought (S. 1837, S. 1894, S. 2533/H.R. 5247, and H.R. 2983). The Senate and
House passed separate energy policy bills (S. 2012 and H.R. 8), but did not reach consensus on a
final bill before the end of the 114th Congress. In December 2016, Congress enacted legislation
that addressed western U.S. drought (S. 612), but it did not include the water efficiency
provisions of separate drought bills.
In the area of energy policy, including energy efficiency considerations, a body of legislation
exists that broadly defines a federal role in research, technical and financial assistance, and
information. Currently, no similar statement of federal policy exists regarding water use
12

In the Senate, an amendment with a similar purpose was submitted to H.R. 636 (S.Amdt. 3552), but it was not
debated in connection with the underlying bill, which the Senate passed on April 19, 2016.

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efficiency or conservation. At the same time, interest has increased to address the pressures on
water resources—pressures of access, scarcity, and quality due to population and economic
growth, pollution, and other challenges—which some analysts believe is equally important as a
national issue as is energy.

Author Contact Information
(name redacted)
Specialist in Resources and Environmental Policy
[redacted/@crs.loc.gov , 7-....

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