Advancing Water Reuse Act: H.R. 2940 Introduced in the U.S. House of Representatives – JD Supra

Nov 14, 2025 - 11:00
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Advancing Water Reuse Act: H.R. 2940 Introduced in the U.S. House of Representatives – JD Supra

 

Report on H.R. 2940: The Advancing Water Reuse Act

Introduction: Legislative Action for Sustainable Water Management

United States House of Representatives Bill H.R. 2940, titled the “Advancing Water Reuse Act,” has been introduced to establish a federal tax incentive for investments in water reuse projects. This legislation directly addresses critical challenges in water security and infrastructure, aligning with several United Nations Sustainable Development Goals (SDGs), particularly SDG 6 (Clean Water and Sanitation), SDG 9 (Industry, Innovation and Infrastructure), and SDG 12 (Responsible Consumption and Production).

Alignment with Sustainable Development Goal 6: Clean Water and Sanitation

Rationale for Promoting Water Reuse

Proponents of the legislation highlight that the nation’s water infrastructure is aging and insufficient to meet escalating demands for freshwater. Water reuse—the process of capturing and treating various water sources for beneficial purposes—is presented as a crucial strategy to supplement freshwater supplies. This approach is fundamental to achieving key targets within SDG 6, including:

  • Target 6.3: Improving water quality by increasing recycling and safe reuse globally.
  • Target 6.4: Substantially increasing water-use efficiency across all sectors and ensuring sustainable withdrawals of freshwater to address water scarcity.

By incentivizing the capture and cleaning of wastewater, stormwater, and other sources for purposes like industrial processes or groundwater replenishment, the Act promotes a circular economy for water resources.

Core Provisions and Contribution to Sustainable Development

Financial Incentives for Green Infrastructure

The central provision of the Advancing Water Reuse Act is a 30% investment tax credit for qualifying water reuse projects. This financial incentive is designed to stimulate investment in modern, resilient water infrastructure, a core objective of SDG 9 (Industry, Innovation and Infrastructure), specifically Target 9.4, which calls for upgrading infrastructure and retrofitting industries to make them sustainable and resource-efficient.

Eligible Projects and Their Impact on SDGs

The tax credit is applicable to three categories of projects, each contributing to specific sustainability outcomes:

  1. Onsite Water Recycling Systems: The installation, replacement, or modification of recycling systems within industrial, manufacturing, datacenter, or food processing facilities. This directly supports SDG 12 (Responsible Consumption and Production) by promoting the efficient use of natural resources within production cycles.
  2. Freshwater Replacement with Recycled Water: Projects that replace the use of freshwater with recyclable water from a municipal provider. This measure alleviates pressure on vital freshwater sources like groundwater, advancing the goals of SDG 6 and enhancing community resilience, a component of SDG 11 (Sustainable Cities and Communities).
  3. Municipal Water Recycling System Development: The construction or expansion of municipal water recycling systems to supply recyclable water for industrial use. This fosters the development of large-scale sustainable infrastructure, contributing significantly to both SDG 6 and SDG 9 by creating integrated, efficient urban water systems.

Legislative Status and Conclusion

Current Status

H.R. 2940 has been referred to the U.S. House of Representatives Ways and Means Committee for consideration.

Broader Implications for Sustainability

The Advancing Water Reuse Act represents a targeted policy instrument aimed at modernizing water management in the United States. By encouraging investment in water reuse technologies and infrastructure, the legislation provides a tangible pathway to enhance water security, promote responsible industrial practices, and build resilience against the impacts of climate change, thereby making a significant contribution to the global Sustainable Development Goals.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on the “Advancing Water Reuse Act” directly and indirectly connects to several Sustainable Development Goals (SDGs) by promoting investment in water recycling and reuse infrastructure. The primary SDGs addressed are:

  • SDG 6: Clean Water and Sanitation: This is the most directly relevant SDG. The act’s core purpose is to supplement freshwater supplies by encouraging the reuse of wastewater, stormwater, and other water sources, which aligns with the goal of ensuring the availability and sustainable management of water for all.
  • SDG 9: Industry, Innovation and Infrastructure: The legislation incentivizes investment in new and upgraded water infrastructure. By providing tax credits for installing water recycling systems in industrial facilities and expanding municipal systems, it promotes the development of resilient, sustainable infrastructure and encourages industries to adopt cleaner, more resource-efficient technologies.
  • SDG 12: Responsible Consumption and Production: The act encourages more sustainable production patterns by promoting the efficient use of water. By incentivizing industries like manufacturing and food processing to replace freshwater with recycled water, it directly supports the goal of achieving sustainable management and efficient use of natural resources.
  • SDG 11: Sustainable Cities and Communities: By supporting the construction and expansion of municipal water recycling systems, the act helps make cities and human settlements more sustainable. Improved water management reduces the strain on local freshwater resources, enhancing urban resilience to water scarcity and drought.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s focus on water reuse and infrastructure investment, the following specific SDG targets can be identified:

SDG 6: Clean Water and Sanitation

  • Target 6.3: “By 2030, improve water quality by… substantially increasing recycling and safe reuse globally.” The “Advancing Water Reuse Act” directly supports this target by creating a financial incentive (a 30% tax credit) to increase the volume of water that is captured, cleaned, and reused for beneficial purposes.
  • Target 6.4: “By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity…” The act aims to increase water-use efficiency, particularly in the industrial sector, by encouraging facilities to recycle water onsite or use recycled water from municipal providers. This reduces the demand for and withdrawal of fresh groundwater and surface water, directly addressing water scarcity.

SDG 9: Industry, Innovation and Infrastructure

  • Target 9.4: “By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies…” The act explicitly incentivizes the installation, replacement, or modification of water recycling systems within industrial, manufacturing, and datacenter facilities. This is a direct promotion of retrofitting industries with sustainable, resource-efficient technology.

SDG 12: Responsible Consumption and Production

  • Target 12.2: “By 2030, achieve the sustainable management and efficient use of natural resources.” Water is a critical natural resource. The legislation promotes its efficient use by creating a mechanism for industries to reduce their consumption of freshwater, thereby contributing to the sustainable management of water resources.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article does not mention official SDG indicators, but it implies several metrics that could be used to measure the success of the “Advancing Water Reuse Act” and progress towards the identified targets:

  • Investment in Water Reuse Projects: The act provides a 30% tax credit, which is a financial incentive. A key indicator of progress would be the total dollar amount invested in eligible water reuse projects, reflecting the uptake of the incentive and the scaling of sustainable infrastructure (relevant to Target 9.4).
  • Number of Facilities Implementing Water Reuse Systems: The article specifies that the act applies to “industrial, manufacturing, datacenter, or food processing” facilities. Tracking the number of these facilities that install, replace, or modify their water systems would be a direct measure of the adoption of these technologies (relevant to Target 9.4).
  • Volume of Water Recycled: The ultimate goal of the act is to increase water reuse. A critical indicator would be the total volume of water (wastewater, stormwater, etc.) that is captured and recycled annually by the projects funded through this act. This directly measures progress towards increasing recycling (relevant to Target 6.3).
  • Reduction in Freshwater Consumption: The article states that a key goal is to “replace the use of freshwater.” Therefore, measuring the volume of freshwater (e.g., groundwater) that is no longer withdrawn by participating industries and municipalities would be a direct indicator of increased water-use efficiency and reduced water stress (relevant to Targets 6.4 and 12.2).

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article.

SDGs Targets Indicators (Implied from the Article)
SDG 6: Clean Water and Sanitation 6.3: Substantially increase recycling and safe reuse.

6.4: Substantially increase water-use efficiency and ensure sustainable withdrawals.

– Total volume of water recycled by new and expanded systems.
– Reduction in the volume of freshwater withdrawals by participating industries and municipalities.
SDG 9: Industry, Innovation and Infrastructure 9.4: Upgrade infrastructure and retrofit industries to make them sustainable and resource-efficient. – Total financial investment in water reuse infrastructure projects.
– Number of industrial, manufacturing, and datacenter facilities installing or modifying water recycling systems.
SDG 12: Responsible Consumption and Production 12.2: Achieve the sustainable management and efficient use of natural resources. – Measured increase in water-use efficiency within participating facilities.
– Amount of freshwater consumption replaced by recycled water in the production of goods and services.
SDG 11: Sustainable Cities and Communities 11.b: Increase the number of cities implementing integrated policies for resource efficiency and resilience. – Number of municipal water recycling systems built or expanded.
– Increase in the supply of recyclable water available for municipal and industrial use.

Source: jdsupra.com

 

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