Denham bill would establish pilot program for the development of water resources infrastructure

A pilot project to help finance the development of water resources infrastructure in reclamation states would be authorized under a bill introduced on Thursday by U.S. Rep. Jeff Denham (R-CA).

The New Water Available to Every Reclamation State (New WATER) Act, H.R.6022, would provide low-interest, government-backed loans to encourage private investment in new water resource projects.

“The Central Valley desperately needs to build more infrastructure for water storage and delivery,” Denham said. “The New WATER Act would provide funding for projects that improve water delivery for residential, agriculture and municipal uses.”

Under the measure, projects would have to be able to generate sustainable revenue streams through user fees or other dedicated resources in order to be approved.

Eligible projects would also have to provide a safe, adequate water supply; increase the efficiency of existing water systems; accelerate the repair or replacement of aging systems; develop desalination facilities; or promote water storage.

Eligible costs under the bill would include development-phase activities like planning, feasibility analysis, revenue forecasting, environmental reviews, permitting, preliminary engineering, design work and pre-construction activities.

Aside from construction and reconstruction activities, eligible costs would also include property acquisition, including water rights, environmental mitigation, construction contingencies and acquisition of equipment.