[Congressional Record Volume 163, Number 111 (Wednesday, June 28, 2017)]
[Senate]
[Page S3831]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. FEINSTEIN (for herself, Mr. Heller, Mr. Bennet, and Mr. 
        Gardner):
  S. 1464. A bill to amend the Internal Revenue Code of 1986 to expand 
the exclusion for energy conservation subsidies provided by public 
utilities to include subsidies provided by public utilities and State 
and local governments for water conservation and storm water 
management; to the Committee on Finance.
  Mrs. FEINSTEIN. Mr. President, today Senators Heller, Bennet, 
Gardner, and I are introducing the Water Conservation Tax Parity Act. 
This bill would exempt the value of residential water conservation and 
storm water runoff management rebates from gross income calculations.
  California and the western States have been facing a severe drought. 
Some public utilities, state and local governments, and water 
management providers offer programs to promote water conservation and 
storm water management by providing subsidies. These programs help 
stimulate responsible water use; however, residential participation is 
essential to their success.
  For example, the Metropolitan Water District of Southern California 
has offered a rebate program to encourage residents to replace turf 
with more water-responsible landscapes. More than 23,000 households 
have benefited from the turf removal rebates, and the average rebate 
per household covers 1,500 square feet or about $3,000, which covers 
about half of the cost to the resident.
  Section 136 of the Internal Revenue Code already exempts energy 
conservation rebates from inclusion in gross income. However, there is 
no Federal exemption for water conservation or storm water management 
measures, which may undermine incentives for participation in these 
programs. These programs are just as valuable as energy conservation 
programs and should be treated equally in the tax code. This bill would 
simply exempt water conservation and storm water management rebates 
from being included in gross income and would be retroactive to 2015. 
This would maintain the important incentives for resident participation 
in critical water conservation measures.
  This bill is supported by a coalition of organizations and public 
utilities, including the Western Urban Water Coalition, Alliance for 
Water Efficiency, American Water Works Association, National 
Association of Water Companies, U.S. Water Alliance, Association of 
Water Agencies, WaterNow Alliance, Western Coalition of Arid States, 
and National Water Resources Association. This bill is crucial to 
ensuring residents continue participating in water conservation and 
storm water management programs.
  Mr. President, I strongly urge my colleagues to support this 
legislation and am hopeful that this Congress will move it forward.
  Thank you. I yield the floor.
                                 ______