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                                                     Calendar No. 362
116th Congress    }                                     {      Report
                                 SENATE
 2d Session       }                                     {     116-198

======================================================================



 
        NEXUS OF ENERGY AND WATER FOR SUSTAINABILITY ACT OF 2019

                                _______
                                

                January 7, 2020.--Ordered to be printed

                                _______
                                

        Ms. Murkowski, from the Committee on Energy and Natural 
                   Resources, submitted the following

                              R E P O R T

                         [To accompany S. 2799]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 2799) to require the Secretary of Energy 
and the Secretary of the Interior to establish a joint Nexus of 
Energy and Water Sustainability Office, and for other purposes, 
having considered the same, reports favorably thereon with an 
amendment and recommends that the bill, as amended, do pass.

                               Amendment

    The amendment is as follows:
    In section 918 of the Energy Policy Act of 2005 (as added 
by section 3(a)), strike subsection (c) and insert the 
following:

    ``(c) Funding.--The Secretary shall use funds made 
available to the Secretary and not otherwise obligated to carry 
out this section.''.

                                Purpose

    The purpose of S. 2799 is to require the Secretary of 
Energy (Secretary) and the Secretary of the Interior to 
establish a joint Nexus of Energy and Water Sustainability 
Office (NEWS Office).

                          Background and Need

    Vast amounts of water are used every day to produce vital 
fuels and to cool power plants in the United States. At the 
same time, electricity is needed to treat, transport, and 
convey water across the country--not only to support economic 
growth and well-being, but also to sustain basic life. These 
inseparable links of water for energy and energy for water 
comprise the energy-water nexus.
    Congress has long recognized the inextricable linkage and 
mutual dependence of energy and water. Section 979 of the 
Energy Policy Act of 2005 (EPAct '05, Public Law 109-58) 
directed the Secretary to carry out a research and development 
program on energy-related issues associated with the provision 
of adequate water supplies and on water-related issues 
associated with the provision of adequate supplies and 
efficient use of energy, and to assess the effectiveness of 
existing programs of the Department of Energy (DOE) and other 
Federal agencies to address energy-water nexus issues.
    Similarly, with subtitle F of the Secure Water Act (title 
IX of the Omnibus Public Land Management Act of 2009, Public 
Law 111-11), Congress recognized the need for systematic data-
gathering on the nation's water resources to ensure sufficient 
quantities of water to support energy production; authorized 
water conservation grant programs within the Bureau of 
Reclamation; directed the Secretary to assess water supplies 
needed to generate hydroelectric power at Federal power 
marketing administration projects; and enhanced collection of 
data on water by the United States Geological Survey. The 
Government Accountability Office has also issued several 
reports on the energy-water nexus and called for better 
coordination of Federal programs addressing the energy-water 
nexus.
    S. 2799 seeks to provide better coordination, management, 
and streamlining of science and technology research, 
development, and demonstration (RD&D) activities related to the 
energy-water nexus across the Federal Government. The bill 
establishes a coordinating mechanism within the cabinet-level 
National Science and Technology Council, which is the principal 
office within the executive branch for coordinating science and 
technology policy across the Federal Government. It also 
provides for a pilot grant program to develop smart energy and 
water efficiency technologies.

                          Legislative History

    S. 2799 was introduced by Senator Murkowski on November 6, 
2019.
    In the 115th Congress, a similar measure was included as 
section 4101 in S. 1460, the Energy and Natural Resources Act 
of 2017. S. 1460 was introduced by Senators Murkowski and 
Cantwell on June 28, 2017, and placed directly on the 
Legislative Calendar (Cal. 162).
    In the 114th Congress, Senator Murkowski introduced similar 
legislation, S.1218, on May 6, 2015 (S. Hrg. 114-344). Senator 
Baldwin was later added as a cosponsor. The Committee on Energy 
and Natural Resources held a hearing on S. 1218 on June 9, 
2015. A similar measure was included as section 4001 in S. 
2012, the Energy Policy Modernization Act of 2016. An original 
bill, S. 2012 was reported by the Committee on Energy and 
Natural Resources on July 30, 2015, and passed by the Senate, 
as amended, on April 26, 2016, by a vote of 85-12.
    In the 113th Congress, Senators Murkowski and Wyden 
introduced similar legislation, S. 1971, on January 29, 2014. 
Senators Udall, Landrieu, Schatz, and Baldwin were later added 
as cosponsors. The Committee on Energy and Natural Resources 
held a hearing on S. 1971 on June 25, 2014, and favorably 
reported the bill, as amended on November 13, 2014. (S. Hrg. 
113-428; S. Rept. 113-296).
    The Senate Committee on Energy and Natural Resources met in 
open business session on November 19, 2019, and ordered S. 2799 
favorably reported, as amended.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on November 19, 2019, by a majority voice 
vote of a quorum present, recommends that the Senate pass S. 
2799, if amended as described herein. Senator Lee asked to be 
recorded as voting no.

                          Committee Amendment

    During its consideration of S. 2799 the Committee adopted 
an amendment offered by Senator Lee to strike the authorization 
to appropriate $15 million for the Smart Energy and Water 
Efficiency program and insert an authorization for the 
Secretary to use unobligated funds otherwise made available to 
the Secretary to fund the program.

                      Section-by-Section Analysis


Section 1. Short title

    Section 1 sets forth the bill's short title as the ``Nexus 
of Energy and Water for Sustainability Act of 2019'' or the 
``NEWS Act of 2019.''

Section 2. Nexus of Energy and Water for Sustainability

    Section 2(a) defines key terms.
    Subsection (b) establishes the NEWS Office and an 
accompanying Interagency Coordination Committee (NEWS 
Committee). The NEWS Office is to be located at DOE and run 
jointly by the Secretary and the Secretary of the Interior in 
their capacity as co-chairs of the NEWS Committee. The 
subsection specifies the NEWS Committee's duties, including 
serving as a forum for developing goals and plans on energy-
water nexus RD&D activities; issuing biannual strategic plans 
on energy-water nexus RD&D priorities and objectives; 
facilitating data collection, management, and dissemination of 
information related to energy-water nexus RD&D and identifying 
opportunities for public-private partnerships. This subsection 
further states that the NEWS Committee lacks the authority to 
issue regulations or set standards. The subsection also directs 
the NEWS Office to review the activities, relevance, and 
effectiveness of the NEWS Committee five years after it is 
established, and to report the review's results to Congress, 
along with a recommendation as to whether the NEWS Committee 
should continue.
    Subsection (c) directs the NEWS Office co-chairs to submit 
an interagency crosscut budget to the Senate Committee on 
Energy and Natural Resources and the House Committees on 
Science, Space, and Technology; Energy and Commerce; and 
Natural Resources.

Section 3. Smart Energy and Water Efficiency Pilot Program

    Section 3(a) amends EPAct '05 to add a new section 918 to 
authorize a Smart Energy and Water Efficiency Pilot Program.
    The new section 918(a) defines key terms.
    The new section 918(b) establishes the program to award 
grants to demonstrate unique, advanced or innovative technology 
solutions to improve the net energy balance of water, 
wastewater, and water reuse systems, including to make 
measurable progress in reducing water and energy use; real time 
energy and water use data systems; and new sensor technology. 
The subsection directs that the grants are to be competitively 
awarded to between three and five eligible entities based on 
specified selection criteria. The selection criteria includes 
energy and cost savings; the uniqueness, commercial viability, 
and reliability of the technology to be used; and the 
anticipated cost-effectiveness of the pilot project. The 
subsection direct the Secretary to select grant recipients 
within one year of enactment and perform annual evaluations to 
assess whether performance measures and benchmarks have been 
met. The Secretary is also directed to provide technical and 
policy assistance to grant recipients, develop best practices, 
and report on grant evaluations to Congress.
    The new section 918(c) specifies that any funding to carry 
out the new section 918 is to come from otherwise unobligated 
amounts available to the Secretary.
    Section 3(b) makes a conforming amendment to the table of 
contents to the EPAct '05.

                   Cost and Budgetary Considerations

    The following estimate of the costs of this measure has 
been provided by the Congressional Budget Office:

              [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    Bill summary: S. 2799 would direct the Department of Energy 
(DOE) to establish a smart energy and water efficiency pilot 
program. Under that program, DOE would award grants to eligible 
entities for implementing technology-based solutions to improve 
the efficiency of water systems. The bill would require DOE to 
use unobligated funds that are available to the department to 
finance the program.
    The bill also would direct DOE and the Department of the 
Interior (DOI) to establish a joint office and an interagency 
committee to develop a strategic plan and coordinate research, 
development, and demonstration projects on energy and water 
issues.
    Estimated Federal cost: The estimated budgetary effect of 
S. 2799 is shown in Table 1. The costs of the legislation fall 
within budget functions 270 (energy) and 300 (natural resources 
and environment).

                                                    TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF S. 2799
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, millions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2020    2021    2022    2023    2024    2025    2026    2027    2028    2029   2020-2024  2020-2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Increases in Direct Spending
 
Estimated Budget Authority........................       0       0       0       0       0       0       0       0       0       0         0          0
Estimated Outlays.................................       2       4       6       5       2       1       0       0       0       0        19         20
 
                                                     Increases in Spending Subject to Appropriation
 
Estimated Authorization...........................       1       1       1       1       1    n.e.    n.e.    n.e.    n.e.    n.e.         5       n.e.
Estimated Outlays.................................       1       1       1       1       1       *    n.e.    n.e.    n.e.    n.e.         5       n.e.
--------------------------------------------------------------------------------------------------------------------------------------------------------
n.e. = not estimated; * = between zero and $500,000.

    Basis of estimate: For this estimate, CBO assumes that the 
legislation will be enacted near the end of 2019 and that the 
necessary amounts will be available in each year. Estimated 
outlays are based on historical spending patterns for similar 
activities.
    Direct spending: Section 3 would direct DOE to establish a 
smart energy and water efficiency pilot program and to award 
three to five grants to eligible entities for implementing 
technology-based solutions to improve the efficiency of water 
supply, wastewater, and water reuse systems. The bill would 
require DOE to use unobligated amounts otherwise available to 
the department to finance the program. CBO considers such 
spending to be direct spending because it would occur without 
further appropriation and we expect that DOE would use 
previously appropriated funds that otherwise would not be spent 
over the next 10 years. (At the end of fiscal year 2019, DOE's 
unobligated balance totaled more than $7 billion.)
    CBO expects that DOE would award four grants under the 
program within the next year, and that grant recipients would 
complete their projects within five years of acceptance. Based 
on the costs of similar projects, CBO estimates that DOE would 
provide $5 million for each grant. In total, we estimate that 
enacting S. 2799 would increase direct spending by $20 million 
over the 2020-2029 period.

Spending subject to appropriation

    Section 2 would direct DOE and DOI to jointly establish a 
Nexus of Energy and Water Sustainability Office and an 
interagency coordination committee. Under the bill, the 
committee would develop a strategic plan on research, 
development, and demonstration projects on energy and water 
issues, convene agencies periodically, coordinate related data 
collection, and report on the feasibility of establishing an 
energy-water center of excellence within the National 
Laboratories. Using information from DOE, and based on the 
costs of similar tasks, CBO estimates that the government would 
require six additional employees at an average annual cost of 
$150,000 each to staff the joint office and manage the 
committee. In total, we estimate that implementing S. 2799 
would cost $5 million over the 2020-2024 period, subject to the 
availability of appropriated funds.

Uncertainty

    The largest area of uncertainty associated with S. 2799 is 
the overall size of the proposed grant program. If DOE selects 
projects that are more expensive than those funded under 
similar programs or if there are limited or no cost sharing 
requirements for grant recipients, S. 2799 would increase 
direct spending by more than what CBO estimates. If DOE used 
future appropriations instead of those from previous fiscal 
years, S. 2799 would have a smaller effect on direct spending 
and a larger effect on spending subject to appropriation.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in Table 2.

 TABLE 2.--CBO'S ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF S. 2799, THE NEWS ACT OF 2019, AS ORDERED REPORTED BY THE SENATE COMMITTEE ON ENERGY
                                                       AND NATURAL RESOURCES ON NOVEMBER 19, 2019
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, millions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2020    2021    2022    2023    2024    2025    2026    2027    2028    2029   2020-2024  2020-2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Net Increase in the Deficit
 
Pay-As-You-Go Effect..............................       2       4       6       5       2       1       0       0       0       0        19         20
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term deficits: None.
    Mandates: None.
    Previous CBO estimate: On October 30, 2019, CBO transmitted 
a cost estimate for H.R. 2665, the Smart Energy and Water 
Efficiency Act of 2019, as ordered reported by the House 
Committee on Energy and Commerce on July 17, 2019. H.R. 2665 is 
similar to section 3 of S. 2799, and CBO's estimates of the 
budgetary effects are the same for both provisions.
    Estimate prepared by: Federal costs: Janani Shankaran and 
Aaron Krupkin; Mandates: Brandon Lever.
    Estimate reviewed by: Kim P. Cawley, Chief, Natural and 
Physical Resources Cost Estimates Unit; H. Samuel Papenfuss, 
Deputy Assistant Director for Budget Analysis.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 2799. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    While personal information is already collected on federal 
employees under existing law, no additional personal 
information would be collected in administering the program. 
Therefore, there would be no impact on personal privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 2799, as ordered reported.

                   Congressionally Directed Spending

    S. 2799 as ordered reported, does not contain any 
congressionally directed spending items, limited tax benefits, 
or limited tariff benefits as defined in rule XLIV of the 
Standing Rules of the Senate.

                        Executive Communications

    The testimony provided by the Department of the Interior at 
the June 25, 2014, hearing on S. 1971, a similar measure to S. 
2799, follows:

   Testimony of Deputy Assistant Secretary for Water and Science Tom 
                   Iseman, Department of the Interior

    Chairman Schatz, Ranking Member Lee and members of the 
Subcommittee, I am Tom Iseman, Deputy Assistant Secretary for 
Water and Science at the Department of the Interior 
(Department). Thank you for the opportunity to testify on S. 
1971, Nexus of Energy and Water for Sustainability Act of 2014. 
The Administration has not completed its review of S. 1971 in 
conjunction with the report issued by the Department of Energy 
last week, entitled The Energy-Water Nexus: Challenges and 
Opportunities (U.S. Department of Energy 2014). The bill would 
create a Committee or Subcommittee on Energy-Water Nexus for 
Sustainability under the National Science and Technology 
Council (NSTC), co-chaired by the Secretary of Energy and 
Secretary of the Interior. The Department has a number of 
existing programs that address many of these energywater nexus 
issues, some of which are summarized below.
    Founded in 1879, the USGS is the Nation's largest water, 
earth, and biological science and civilian mapping agency. The 
USGS collects, monitors, analyzes, and provides scientific 
understanding about natural resource conditions, issues, and 
problems. The USGS provides impartial scientific information on 
the health of our ecosystems and environment, the water and 
energy resources we rely on, and the impacts of climate and 
land-use change. With a diversity of scientific expertise, the 
USGS carries out large-scale, multi-disciplinary investigations 
and provides scientific information to resource managers, 
planners, and other customers.
    Reclamation owns and operates water projects that promote 
and sustain economic development within the 17 western States. 
The mission of Reclamation is to manage, develop, and protect 
water and related resources in an environmentally and 
economically sound manner in the interest of the American 
public. Since it was established in 1902, Reclamation has 
constructed more than 600 dams and reservoirs including Hoover 
Dam on the Colorado River and Grand Coulee on the Columbia 
River. Reclamation is the largest wholesaler of water in the 
country, delivering water to more than 31 million people, and 
providing one out of five western farmers with irrigation water 
for 10 million acres of farmland across the United States. 
Reclamation is also the second largest producer of 
hydroelectric power in the United States, and provides 
significant amounts of renewable energy to customers throughout 
the West.


          existing programs at the department of the interior


    The Department recognizes the importance of the energy-
water nexus and supports a closer level of communication and 
coordination between the Department of the Interior, Department 
of Energy and the broader federal community. The Department of 
the Interior appreciates the Committee's leadership on the 
energy-water nexus issue. Energy and water issues intersect 
across a range of Interior activities, including hydropower 
generation, energy development, electricity generation, and 
water treatment, distribution, and conservation. Interior has a 
variety of programs that address the energy-water nexus, 
including USGS monitoring systems and research programs 
(including the National Water Census), Reclamation Basin 
Studies, and WaterSMART Grants. Understanding the value of 
interagency coordination, Interior has partnered with the 
Department of Energy and the Department of the Army (working 
with the U.S. Army Corps of Engineers) through a 2010 
Memorandum of Understanding (MOU) to collaboratively address a 
host of energy-water nexus issues related to hydropower. By 
coordinating efforts, the signatory agencies have completed a 
number of projects that promote sustainable hydropower 
development, including hydropower resource assessments, unit-
dispatch optimization systems, climate change studies, 
integrated basinscale opportunity assessments, and funding 
opportunities to demonstrate new small hydropower technologies.
    The Department is committed to integrating energy and water 
policies to promote the sustainable use of all resources, 
including incorporating water conservation criteria and the 
water/energy nexus into the Department's planning efforts. On 
June 9, 2014, the Department announced that Reclamation will 
make $17.8 million in WaterSMART Water and Energy Efficiency 
Grants available to 36 new and ongoing projects in the Western 
United States for activities such as conserving and using water 
more efficiently, increasing the use of renewable energy, 
improving energy efficiency, encouraging water markets, and 
carrying out activities to address climate-related impacts on 
water. Reclamation also announced that it will make $1.8 
million available for comprehensive water basin studies 
conducted jointly with state and local partners in the Upper 
Red River Basin in Oklahoma, Upper Deschutes River Basin in 
Oregon, and Missouri River Headwaters Basin in Montana. These 
announcements support the President's Climate Action Plan by 
providing tools for states and water users to create water 
supply resilience to meet future water and energy demands in 
the face of a changing climate.
    Water and Energy Efficiency Grants and Basin Studies are 
part of the Department's WaterSMART Program. WaterSMART Grants 
provide cost-shared funding to States, tribes, and other 
entities with water or power delivery authority for water 
efficiency improvements, with additional consideration given to 
proposals that include energy savings as a part of planned 
water efficiency improvements. Water management improvements 
that incorporate renewable energy sources are also prioritized 
for WaterSMART Grant funding. These grants directly address the 
energy-water nexus and provide a concrete means of implementing 
on-the-ground solutions to energywater issues. The FY 2014 
Water and Energy Efficiency Grant projects are expected to 
conserve more than 67,000 acre-feet of water annually and 22.9 
million kilowatt-hours of electricity--enough water for more 
than 250,000 people and enough electricity for more than 2,000 
households. Basin Studies are collaborative studies, cost-
shared with non-Federal partners, which analyze how climate 
change may affect water supply, demand and operations in the 
future and identify adaptation strategies to address imbalances 
in water supply and demand.
    In addition to long-standing USGS efforts in water supply 
and availability and in energy resource assessments and 
research, which provide an essential foundation for 
understanding issues related to the energy-water nexus, the 
USGS participates in a number of interagency efforts. The USGS 
has been working with the Energy Information Administration 
(EIA) since 2010 to improve estimates of water withdrawals\1\ 
and consumptive use associated with cooling water at 
thermoelectric generating plants across the Nation. Cooling 
water for such plants is the largest sector of water 
withdrawals in the United States, at 49% of all water 
withdrawals nationwide, according to USGS Circular 1344, 
Estimated Use of Water in the United States in 2005. A recent 
USGS report, Methods for Estimating Water Consumption for 
Thermoelectric Power Plants in the United States (Scientific 
Investigations Report 2013--5188), documents the model that the 
USGS developed with the assistance of the EIA for estimating 
electric generating plant water withdrawals and consumptive 
use, which are currently not consistently reported. This 
ground-breaking model, which incorporates the heat budget of 
each of the approximately 1,300 thermoelectric generating 
plants that rely on water for cooling, can be used both to 
estimate current and historical water use and to forecast 
future water use with different plant configurations and 
cooling water technologies.
---------------------------------------------------------------------------
    \1\Withdrawals are defined as water removed from the ground or 
diverted from a surface-water source for use.
---------------------------------------------------------------------------
    In addition to the efforts above, the FY 2015 President's 
Budget requests an additional $2 million for the USGS to 
provide water use grants to States that will increase 
availability and quality of water use data including data 
related to water used for energy. These grants would provide 
financial resources, through State water resources agencies, to 
improve the availability and quality of water use data that 
they collect and would integrate those data with the USGS Water 
Census. Funding provided to States through these grants would 
be targeted at improvements to water use data collection and 
integration that will be of the greatest benefit to a national 
assessment of water availability and use. As the energy sector 
is a primary user of water, increased availability of water use 
information related to energy will be an important part of this 
effort.
    In mid-April 2014, the USGS released an expanded and 
updated version of the USGS oil, gas, and geothermal Produced 
Waters Database and Map Viewer; the revised database contains 
nearly 100,000 new samples from conventional and unconventional 
well types, including geothermal. The availability of more 
samples and more types of analyses will help farmers determine 
the quality of local produced water available for possible 
remediation and reuse, will enable local and national resource 
managers to track the composition of trace elements, and will 
help industry plan for waste-water injection and recycling.
    The Powder River Basin in northern Wyoming and southern 
Montana has experienced a rapid expansion in the development of 
coalbed natural gas. About 90 billion liters of water were 
produced annually in the Wyoming portion of the Basin between 
2002 and 2011 as part of the extraction process. The produced 
waters are moderately saline and have high proportions of 
sodium relative to calcium and magnesium, thus rendering the 
waters unsuitable for irrigation without treatment. USGS 
studies have examined the environmental impacts of different 
disposal options. Results indicated that infiltration 
impoundments had the potential to contaminate underlying fresh 
groundwater supplies, but that with specific treatment the 
produced waters could be used in subsurface drip irrigation 
operations that minimized potential for groundwater 
contamination and provided beneficial use of the waters to 
enhance agricultural production in this semiarid region.
    Other Departmental programs and activities relate directly 
to the energy-water nexus, including hydropower development, 
water treatment and desalination, pumping and water delivery, 
BLM energy permitting, and USGS research on energy resources 
and induced seismicity. We are happy to provide the Committee 
with additional information on these programs as needed.


   s. 1971, nexus of energy and water for sustainability act of 2014


    Section 3 of S. 1971 requires the Director of the Office of 
Science and Technology Policy to establish either a Committee 
or Subcommittee on Energy-Water Nexus for Sustainability under 
the NSTC, co-chaired by the Secretary of Energy and Secretary 
of the Interior. The Committee or Subcommittee is directed to: 
(1) serve as a forum for developing common federal goals and 
plans on energy-water nexus issues; (2) promote coordination of 
the related activities of several federal departments and 
agencies identified in the bill; (3) coordinate and develop 
capabilities for data collection, categorization, and 
dissemination of data from and to other federal departments and 
agencies; and (4) engage in information exchange between 
federal departments and agencies.
    Section 4 of S. 1971 requires the Director of the Office of 
Management and Budget to submit to Congress a report that 
includes an interagency budget crosscut that: (1) displays the 
budget proposed for the upcoming fiscal year, including any 
interagency or intra-agency transfer, for each of the federal 
agencies that carry out energy-water nexus projects and (2) 
identifies all federal and state expenditures since 2011 on 
energy-water nexus projects. The report to Congress would also 
provide a detailed accounting of all funds received and 
obligated by all Federal and State agencies with energy-water 
implementation responsibilities during the previous fiscal year 
and list all energywater nexus projects to be undertaken in the 
upcoming fiscal year, with the federal portion of funds for 
those projects.
    The Department appreciates the Committee's leadership and 
the opportunity to strengthen capabilities to address the 
energy-water nexus. Given the breadth and many facets of this 
issue, we support close collaboration with the DOE and other 
Federal agencies. Moving forward, we would like to continue 
working with the Committee on preliminary concerns regarding 
the details of the collaborative structure and reporting 
provisions on issues related to the nexus of energy and water. 
The Department supports interagency collaboration and 
information sharing to support sound decision-making, leverage 
resources, and reduce duplication. But, the Administration 
believes this can be done through more effective and efficient 
collaboration and program management, rather than an unduly and 
potentially ineffective reporting requirement.
    If enacted, it is the Department's view that the committee 
or subcommittee created under S. 1971 should focus its 
attention on key vulnerabilities where there is an appropriate 
federal role and capability to have a positive impact. It is 
the Department's view that that focus should be on data gaps 
associated with water use and availability.
    Water availability, severe drought, and long-term climate 
trends have always posed a significant risk to energy 
development and electric generation. This is one of the broad, 
systemic risks at the core of the energy-water nexus. Decreased 
water availability, prolonged drought, and more pronounced 
climate trends could increase that risk and require the use of 
accelerated adaptation strategies.
    The Department supports the type of coordination and data 
exchange encouraged under S. 1971 and is already undertaking a 
number of steps to do so as discussed in the testimony above. 
Such efforts could help close existing gaps, increasing our 
understanding of water supply availability to benefit water and 
energy decision makers.
    If enacted, S. 1971 may present challenges to the 
Department. The Department would need to evaluate whether the 
commitments and reporting requirements in the bill may require 
additional resources to carry them out. Additionally, while S. 
1971 allows for the coordination of federal activities, the 
Department would like to stress the importance of providing the 
scientific community with autonomy to design and execute 
studies. Finally, States play the key role in allocating and 
administering water, and they must be a partner in energy-water 
efforts. S. 1971 does not address the important relationships 
with states and the private sector, where significant work on 
energy-water nexus projects is accomplished. Finally, as 
drafted, it is unclear to the Department what qualifies as an 
``energy-water nexus project'' under S. 1971.


                               conclusion


    In conclusion, the Department shares the Committee's goals 
to promote coordination between Federal agencies as it relates 
to the energy-water nexus. We appreciate the leadership of this 
Committee in engaging Federal agencies. The Department has 
numerous programs in place that encourage coordination not only 
within the Federal Government, but as public-private 
partnerships. The Federal Government has a role in providing 
leadership and tools to address the challenges of imbalance 
between supply and demand. Sustainable water supplies and 
energy use are important parts of a stable economic base, 
employment continuity, and smart growth. I would be pleased to 
answer any questions the Subcommittee may have.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the changes in existing law made 
by S. 2799, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                       ENERGY POLICY ACT OF 2005

Public Law 109-58, as Amended

           *       *       *       *       *       *       *



SECTION 1.--SHORT TITLE; TABLE OF CONTENTS.

           *       *       *       *       *       *       *


(b) Table of contents.--The table of contents of this Act is 
    as follows:
     * * * * * * *

                   TITLE IX--RESEARCH AND DEVELOPMENT

     * * * * * * *

                      SUBTITLE A--ENERGY EFFICIENCY

Sec. 911. Energy efficiency.
Sec. 912. Next Generation Lighting Initiative.
Sec. 913. National Building Performance Initiative.
Sec. 914. Building standards.
Sec. 915. Secondary electric vehicle battery use program.
Sec. 916. Energy Efficiency Science Initiative.
Sec. 917. Advanced Energy Efficiency Technology Transfer Centers.
Sec. 918. Smart energy and water efficiency pilot program.

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TITLE IX--RESEARCH AND DEVELOPMENT

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SUBTITLE A--ENERGY EFFICIENCY

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SEC. 917. ADVANCED ENERGY TECHNOLOGY TRANSFER CENTERS.

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    (f) Duration.--
          (1) Initial grant period.--A grant awarded under this 
        section shall be for a period of 5 years.
          (2) Initial evaluation.--Each grantee under this 
        section shall be evaluated during its third year of 
        operation under procedures established by the Secretary 
        to determine if the grantee is accomplishing the 
        purposes of this section described in subsection (a). 
        The Secretary shall terminate any grant that does not 
        receive a positive evaluation. If an evaluation is 
        positive, the Secretary may extend the grant for 3 
        additional years beyond the original term of the grant.
          (3) Additional extension.--If a grantee receives an 
        extension under paragraph (2), the grantee shall be 
        evaluated again during the second year of the 
        extension. The Secretary shall terminate any grant that 
        does not receive a positive evaluation. If an 
        evaluation is positive, the Secretary may extend the 
        grant for a final additional period of 3 additional 
        years beyond the original extension.
          (4) Limitation.--No grantee may receive more than 11 
        years of support under this section without reapplying 
        for support and competing against all other applicants 
        seeking a grant at that time.
    (g) Prohibition.--None of the funds awarded under this 
section may be used for the construction of facilities.
    (h) Definitions.--For purposes of this section:
          (1) Advanced energy methods and technologies.--The 
        term ``advanced energy methods and technologies''' 
        means all methods and technologies that promote energy 
        efficiency and conservation, including distributed 
        generation technologies, and life-cycle analysis of 
        energy use.
          (2) Center.--The term ``Center'' means an Advanced 
        Energy Technology Transfer Center established pursuant 
        to this section.
          (3) Distributed generation.--The term ``distributed 
        generation'' means an electric power generation 
        technology, including photovoltaic, small wind, and 
        micro-combined heat and power, that serves electric 
        consumers at or near the site of production.
          (4) Cooperative extension.--The term ``Cooperative 
        Extension'' means the extension services established at 
        the land-grant colleges and universities under the 
        Smith-Lever Act of May 8, 1914.
          (5) Land-grant colleges and universities.--The term 
        ``land-grant colleges and universities'' means--
                  (A) 1862 Institutions (as defined in section 
                2 of the Agricultural Research, Extension, and 
                Education Reform Act of 1998 (7 U.S.C. 7601));
                  (B) 1890 Institutions (as defined in section 
                2 of that Act); and
                  (C) 1994 Institutions (as defined in section 
                2 of that Act).
                          (i) Authorization of 
                        appropriations.--In addition to amounts 
                        otherwise authorized to be appropriated 
                        in section 911, there are authorized to 
                        be appropriated for the program under 
                        this section such sums as may be 
                        appropriated.

SEC. 918. SMART ENERGY AND WATER EFFICIENCY PILOT PROGRAM.

    (a) Definitions.--In this section:
          (1) Eligible entity.--The term `eligible entity' 
        means--
                  (A) a utility;
                  (B) a municipality;
                  (C) a water district;
                  (D) an Indian tribe or Alaska Native village; 
                and
                  (E) any other authority that provides water, 
                wastewater, or water reuse services.
          (2) Smart energy and water efficiency pilot 
        program.--The term `smart energy and water efficiency 
        pilot program' or `pilot program' means the pilot 
        program established under subsection (b).
    (b) Smart Energy and Water Efficiency Pilot Program.--
          (1) In general.--The Secretary shall establish and 
        carry out a smart energy and water efficiency pilot 
        program in accordance with this section.
          (2) Purpose.--The purpose of the smart energy and 
        water efficiency pilot program is to award grants to 
        eligible entities to demonstrate unique, advanced, or 
        innovative technology-based solutions that will--
                  (A) improve the net energy balance of water, 
                wastewater, and water reuse systems;
                  (B) improve the net energy balance of water, 
                wastewater, and water reuse systems to help 
                communities across the United States make 
                measurable progress in conserving water, saving 
                energy, and reducing costs;
                  (C) support the implementation of innovative 
                and unique processes and the installation of 
                established advanced automated systems that 
                provide real-time data on energy and water; and
                  (D) improve energy-water conservation and 
                quality and predictive maintenance through 
                technologies that utilize internet connected 
                technologies, including sensors, intelligent 
                gateways, and security embedded in hardware.
          (3) Project selection.--
                  (A) In general.--The Secretary shall make 
                competitive, merit-reviewed grants under the 
                pilot program to not less than 3, but not more 
                than 5, eligible entities.
                  (B) Selection criteria.--In selecting an 
                eligible entity to receive a grant under the 
                pilot program, the Secretary shall consider--
                          (i) energy and cost savings;
                          (ii) the uniqueness, commercial 
                        viability, and reliability of the 
                        technology to be used;
                          (iii) the degree to which the project 
                        integrates next-generation sensors 
                        software, analytics, and management 
                        tools;
                          (iv) the anticipated cost-
                        effectiveness of the pilot project 
                        through measurable energy savings, 
                        water savings or reuse, and 
                        infrastructure costs averted;
                          (v) whether the technology can be 
                        deployed in a variety of geographic 
                        regions and the degree to which the 
                        technology can be implemented in a wide 
                        range of applications ranging in scale 
                        from small towns to large cities, 
                        including tribal communities;
                          (vi) whether the technology has been 
                        successfully deployed elsewhere;
                          (vii) whether the technology was 
                        sourced from a manufacturer based in 
                        the United States; and (viii) whether 
                        the project will be completed in 5 
                        years or less.
                  (C) Applications.--
                          (i) In general.--Subject to clause 
                        (ii), an eligible entity seeking a 
                        grant under the pilot program shall 
                        submit to the Secretary an application 
                        at such time, in such manner, and 
                        containing such information as the 
                        Secretary determines to be necessary.
                          (ii) Contents.--An application under 
                        clause (i) shall, at a minimum, 
                        include--
                                  (I) a description of the 
                                project;
                                  (II) a description of the 
                                technology to be used in the 
                                project;
                                  (III) the anticipated 
                                results, including energy and 
                                water savings, of the project;
                                  (IV) a comprehensive budget 
                                for the project;
                                  (V) the names of the project 
                                lead organization and any 
                                partners;
                                  (VI) the number of users to 
                                be served by the project;
                                  (VII) a description of the 
                                ways in which the proposal 
                                would meet performance measures 
                                established by the Secretary; 
                                and
                                  (VIII) any other information 
                                that the Secretary determines 
                                to be necessary to complete the 
                                review and selection of a grant 
                                recipient.
          (4) Administration.--
                  (A) In general.--Not later than 1 year after 
                the date of enactment of this section, the 
                Secretary shall select grant recipients under 
                this section.
                  (B) Evaluations.--
                          (i) Annual evaluations.--The 
                        Secretary shall annually carry out an 
                        evaluation of each project for which a 
                        grant is provided under this section 
                        that meets performance measures and 
                        benchmarks developed by the Secretary, 
                        consistent with the purposes of this 
                        section.
                          (ii) Requirements.--Consistent with 
                        the performance measures and benchmarks 
                        developed under clause (i), in carrying 
                        out an evaluation under that clause, 
                        the Secretary shall--
                                  (I) evaluate the progress and 
                                impact of the project; and
                                  (II) assesses the degree to 
                                which the project is meeting 
                                the goals of the pilot program.
                  (C) Technical and policy assistance.--On the 
                request of a grant recipient, the Secretary 
                shall provide technical and policy assistance.
                  (D) Best practices.--The Secretary shall make 
                available to the public through the Internet 
                and other means the Secretary considers to be 
                appropriate--
                          (i) a copy of each evaluation carried 
                        out under subparagraph (B); and
                          (ii) a description of any best 
                        practices identified by the Secretary 
                        as a result of those evaluations.
                  (E) Report to congress.--The Secretary shall 
                submit to Congress a report containing the 
                results of each evaluation carried out under 
                subparagraph (B).
    (c) Funding.--The Secretary shall use funds made available 
to the Secretary and not otherwise obligated to carry out this 
section.

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