[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4902 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 4902
To amend the Food Security Act of 1985 to establish a groundwater
conservation easement program, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 26, 2023
Ms. Caraveo (for herself and Mr. LaTurner) introduced the following
bill; which was referred to the Committee on Agriculture
_______________________________________________________________________
A BILL
To amend the Food Security Act of 1985 to establish a groundwater
conservation easement program, 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.
This Act may be cited as the ``Voluntary Groundwater Conservation
Act of 2023''.
SEC. 2. GROUNDWATER CONSERVATION EASEMENT PROGRAM.
(a) Agricultural Conservation Easement Program Purposes.--Section
1265(b) of the Food Security Act of 1985 (16 U.S.C. 3865(b)) is
amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(5) facilitate reductions in groundwater consumption to
support local, regional, or State groundwater management.''.
(b) Establishment.--Subtitle H of title XII of the Food Security
Act of 1985 (16 U.S.C. 3865 et seq.) is amended by adding at the end
the following:
``SEC. 1265E. GROUNDWATER CONSERVATION EASEMENT PROGRAM.
``(a) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) an agency of State or local government;
``(B) an Indian Tribe; or
``(C) an organization described in section
1265A(3)(B).
``(2) Eligible land.--The term `eligible land' means the
surface estate of land on which eligible water rights have been
historically used, as determined by governing State law,
including--
``(A) cropland;
``(B) grassland;
``(C) rangeland;
``(D) pasture land;
``(E) nonindustrial private forest land; and
``(F) other agricultural land.
``(3) Eligible water rights.--The term `eligible water
rights' means rights that are--
``(A) owned or controlled by 1 or more private,
governmental, or Tribal landowners to groundwater that
has been used on eligible land; and
``(B) subject to a pending offer for the purchase
of a groundwater conservation easement from an eligible
entity, the purchase of which would--
``(i) promote reduced groundwater
consumption and reduced reliance on
groundwater; and
``(ii) advance local, regional, or State
groundwater management consistent with the
purposes of the groundwater conservation
easement program.
``(4) Groundwater conservation easement.--
``(A) In general.--The term `groundwater
conservation easement' means an easement or other
interest in eligible water rights that--
``(i) is conveyed for the purpose of
supporting local, regional, or State
groundwater management that reduces groundwater
consumption while providing community and
environmental benefits;
``(ii) includes restrictions on the
consumption of groundwater related to the
historical withdrawals of the groundwater of
the landowner associated with the entirety of
the eligible land associated with the eligible
water rights; and
``(iii) expressly permits the landowner the
right to continue agricultural production and
other uses compatible with reduced groundwater
consumption, consistent with the legally
permissible use and administration of the water
rights by the applicable State.
``(B) Eligible land.--An easement or other interest
described in subparagraph (A) may include eligible land
associated with the eligible water rights described in
that subparagraph, subject to the choice of the owner
of the eligible land, consistent with applicable State
law.
``(b) Establishment.--The Secretary shall establish a groundwater
conservation easement program for the conservation of groundwater
resources associated with eligible water rights, which may include
eligible land associated with those eligible water rights, through
groundwater conservation easements.
``(c) Purposes.--The purposes of the groundwater conservation
easement program are--
``(1) to promote the conservation and reduction in
consumption of groundwater resources, including the recharging
of declining aquifers, while allowing for continued
agricultural production and other uses;
``(2) to support landowners in the adaptation to, and
reduction in reliance on, declining groundwater resources; and
``(3) to protect agricultural use, community vitality, and
economic well-being, including through the development of
renewable energy, in the face of long-term declines in
groundwater availability.
``(d) Availability of Assistance.--The Secretary shall facilitate
and provide funding for--
``(1) the purchase by eligible entities of groundwater
conservation easements; and
``(2) technical assistance to implement the groundwater
conservation easement program.
``(e) Cost-Share Assistance.--
``(1) In general.--The Secretary shall encourage
conservation of groundwater resources through cost-share
assistance to eligible entities for purchasing groundwater
conservation easements.
``(2) Scope of assistance available.--
``(A) In general.--An agreement described in
paragraph (4) shall provide for--
``(i) subject to subparagraph (D), a
Federal share determined by the Secretary of an
amount not to exceed 65 percent of the fair
market value of the groundwater conservation
easement, as determined under subparagraph (B);
and
``(ii) an additional payment in an amount
not to exceed 5 percent of the Federal share
determined under clause (i) for costs
associated with securing a deed to the
groundwater conservation easement, including
the costs of valuation, survey, inspection, and
title.
``(B) Fair market value.--The fair market value of
a groundwater conservation easement shall be determined
by the Secretary using--
``(i) the Uniform Standards of Professional
Appraisal Practice;
``(ii) an areawide market analysis or
survey;
``(iii) another industry-approved method;
``(iv) a methodology used by another
Federal agency;
``(v) a model for valuation developed by a
research institution; or
``(vi) a method of valuing ecosystem
services associated with protected water
rights.
``(C) Reimbursable costs.--
``(i) In general.--Except as provided in
clause (ii), the Secretary shall provide a
payment under subparagraph (A)(ii) to an
eligible entity as a reimbursement after the
costs described in that subparagraph are
incurred by the eligible entity.
``(ii) Limited resource landowners.--In the
case of eligible water rights or eligible land
owned by a limited-resource landowner, as
determined by the Secretary, the Secretary
shall provide a payment under subparagraph
(A)(ii) in advance as part of an agreement
described in paragraph (4).
``(D) Lower federal share option.--
``(i) In general.--An eligible entity may
elect to enter into an agreement described in
paragraph (4) under which the Federal share
does not exceed 25 percent of the fair market
value of the groundwater conservation easement,
as determined under subparagraph (B).
``(ii) No right of enforcement.--
Notwithstanding paragraph (4)(C)(iii), an
agreement with respect to which an eligible
entity makes the election under clause (i)
shall not include a right of enforcement for
the Secretary.
``(E) Permissible forms.--The non-Federal share
provided by an eligible entity under this paragraph may
comprise--
``(i) cash resources;
``(ii) a charitable donation or qualified
conservation contribution (as defined in
section 170(h) of the Internal Revenue Code of
1986) from the landowner from which the
groundwater conservation easement will be
purchased;
``(iii) costs associated with securing a
deed to the groundwater conservation easement,
including the cost of appraisal, survey,
inspection, and title; and
``(iv) other costs, as determined by the
Secretary.
``(3) Evaluation and ranking of applications.--
``(A) Criteria.--The Secretary shall establish
evaluation and ranking criteria to maximize the benefit
of Federal investment under the groundwater
conservation easement program.
``(B) Considerations.--In establishing the criteria
under subparagraph (A), the Secretary shall emphasize
support for--
``(i) maintaining or enhancing groundwater-
dependent ecosystems; and
``(ii) advancing long-term groundwater
sustainability consistent with existing State
or local groundwater management initiatives.
``(C) Bidding down.--If the Secretary determines
that 2 or more applications for cost-share assistance
under this subsection are comparable in achieving the
purpose of the groundwater conservation easement
program, the Secretary shall not assign a higher
priority to any of those applications solely on the
basis of lesser cost to the groundwater conservation
easement program.
``(4) Agreements with eligible entities.--
``(A) In general.--The Secretary shall enter into
agreements with eligible entities to stipulate the
terms and conditions under which the eligible entity is
permitted to use cost-share assistance provided under
this subsection.
``(B) Length of agreements.--An agreement under
this paragraph shall be for a term that is--
``(i) in the case of an eligible entity
certified under the process described in
paragraph (5), a minimum of 5 years; and
``(ii) for all other eligible entities, not
less than 3, but not more than 5, years.
``(C) Minimum terms and conditions.--An eligible
entity shall be authorized to use such terms and
conditions for groundwater conservation easements as
the eligible entity may establish, subject to the
condition that the Secretary shall determine that those
terms and conditions--
``(i) are consistent with the purposes of
the groundwater conservation easement program;
``(ii) permit effective enforcement of the
conservation purposes of the groundwater
conservation easements, including--
``(I) a mechanism for the
measurement of groundwater pumping
reductions; and
``(II) the ability to enforce those
reductions under relevant State law;
``(iii) except as provided in paragraph
(2)(D)(ii), include a right of enforcement for
the Secretary, which may be used only if the
terms of the groundwater conservation easement
are not enforced by the holder of the
groundwater conservation easement; and
``(iv) subject the eligible water rights
and eligible land, if applicable, in which an
interest is purchased to a groundwater
conservation easement plan that includes--
``(I) a description of the
activities that demonstrate protection
of soil resources and reduced
groundwater use and meet any other
conservation purposes for which the
groundwater conservation easement was
acquired;
``(II) a groundwater conservation
plan, where appropriate, that includes,
at the option of the Secretary,
activities that will help maintain or
enhance groundwater-dependent
ecosystems; and
``(III) any other provisions that
the Secretary determines to be
necessary to accomplish the purposes of
the groundwater conservation easement
program.
``(D) Substitution of qualified projects.--An
agreement under this paragraph shall allow, on mutual
agreement of the parties, substitution of qualified
projects that are identified at the time of the
proposed substitution.
``(E) Effect of violation.--If a violation of a
term or condition of an agreement under this paragraph
occurs, the Secretary may--
``(i) terminate the agreement; and
``(ii) require the eligible entity to
refund all, or part of, any payments received
by the eligible entity under the groundwater
conservation easement program, with interest on
the payments, as determined appropriate by the
Secretary.
``(5) Certification of eligible entities.--
``(A) Certification process.--The Secretary shall
establish a process under which the Secretary may--
``(i) directly certify eligible entities
that meet established criteria;
``(ii) enter into long-term agreements with
certified eligible entities; and
``(iii) accept proposals for cost-share
assistance for the purchase of groundwater
conservation easements throughout the duration
of those agreements.
``(B) Certification criteria.--To be certified
under subparagraph (A), an eligible entity shall
demonstrate to the Secretary that the eligible entity
will maintain, at a minimum, for the duration of the
agreement--
``(i) a plan for administering groundwater
conservation easements that is consistent with
the purposes of the groundwater conservation
easement program;
``(ii) the capacity and resources to
monitor and enforce groundwater conservation
easements; and
``(iii) policies and procedures to ensure--
``(I) the long-term integrity of
groundwater conservation easements;
``(II) timely completion of
acquisitions of groundwater
conservation easements; and
``(III) timely and complete
evaluation and reporting to the
Secretary with respect to the use of
funds provided under the groundwater
conservation easement program.
``(C) Review and revision.--
``(i) Review.--The Secretary shall conduct
a review of eligible entities certified under
subparagraph (A) not less frequently than once
every 3 years to ensure that the eligible
entities are meeting the criteria established
under subparagraph (B).
``(ii) Revocation.--If the Secretary finds
that a certified eligible entity no longer
meets the criteria established under
subparagraph (B), the Secretary may--
``(I) allow the certified eligible
entity a specified period of time, but
not less than 180 days, during which to
take such actions as may be necessary
to meet the criteria; and
``(II) revoke the certification of
the eligible entity, if, after that
specified period of time, the certified
eligible entity does not meet the
criteria.
``(f) Geographic Scope.--The Secretary may only enroll eligible
water rights or eligible land under this section in regions--
``(1) experiencing significant groundwater depletion, as
determined by the Secretary consistent with data of the United
States Geological Survey; and
``(2) where groundwater monitoring and permitting exists
through the State, a local government, or a groundwater
management district.
``(g) Method of Enrollment.--The Secretary shall enroll eligible
water rights and eligible land under this section through the use of--
``(1) permanent easements; or
``(2) easements for the maximum duration allowed under
applicable State laws.
``(h) Technical Assistance.--The Secretary may provide technical
assistance, if requested, to assist in--
``(1) compliance with the terms and conditions of
groundwater conservation easements; and
``(2) implementation of an approved groundwater
conservation easement plan described in subsection
(e)(4)(C)(iv).''.
SEC. 3. ADJUSTED GROSS INCOME LIMITATION.
Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308-3a)
is amended--
(1) in subsection (a)(1)--
(A) by striking ``In this'' and inserting the
following:
``(A) In general.--In this''; and
(B) by adding at the end the following:
``(B) Exclusion.--In this section, the term
`average adjusted gross income' does not include any
income received by a person or legal entity that is a
landowner of eligible land (as defined in section
1265A) as compensation for the purchase of an
agricultural land easement under subtitle H.''; and
(2) in subsection (b)(3), by inserting ``, or aquifer
recovery or a permanent reduction in consumptive use of water
would be achieved,'' after ``protected''.
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