U.S. Senators Katie Britt, Ben Ray Luján Unveil Bipartisan Bill to Boost Industrial Water Reuse, Protect Community Drinking Water, and Promote Responsible Water Management

WASHINGTON, D.C. -U.S. Senators Katie Britt (R-Ala.) and Ben Ray Luján (D-N.M.) today introduced the Advancing Water Reuse Act, bipartisan legislation that would provide a federal tax incentive for manufacturers and other industrial entities that invest in water reuse technologies.

Water reuse is the process of intentionally capturing and treating wastewater, stormwater, saltwater, or graywater to make it suitable for beneficial freshwater uses, including industrial processes, irrigation, and groundwater replenishment.

"A safe, reliable supply of freshwater is crucial to facilitating economic development while ensuring Americans across the country have access to clean water," said Senator Britt. "In Alabama, water reuse technologies are being developed and incorporated across industries to reduce demand on freshwater supply and mitigate strain on our aging water infrastructure. I'm proud to have worked on this legislation with Senator Luján that promotes responsible water management so residents have safe drinking water, farmers have the water they need to grow our food, and industries have the capacity to continue investing in our communities."

As the nation's aging water infrastructure struggles to keep up with public and private demand, it is critical that we promote technology that allows us to reuse our supply efficiently. The Advancing Water Reuse Act will expand investments in water reuse to protect residential consumers from the increased utility bills, reduce demand on freshwater supplies, and spur business development and job growth.

"In New Mexico, water is critical to our families, communities, and local economies," said Senator Luján. "As demand for freshwater continues to grow, we need smart and forward-looking solutions to protect our vital resources and strengthen long-term water security. That's why I'm introducing bipartisan legislation with Senator Britt to incentivize investments in water reuse infrastructure that will help conserve freshwater, support local communities, and provide businesses the certainty they need to grow and create jobs. Expanding water reuse can help reduce strain on existing water supplies, protect drinking water resources, and ensure communities across the country have access to reliable water."

"Water is the fuel of our growing economy. Businesses need local, reliable, and cost-effective strategies that protect water resources for the communities in which they operate," said WateReuse Association Executive Director Bruno Pigott. "WateReuse Association applauds Senators Britt and Luján for introducing legislation to unleash the potential of industrial water reuse for the American economy."

The Advancing Water Reuse Act increases the use of recycled water and encourages partnerships between businesses and municipal water recycling systems, while creating a 30 percent Investment Tax Credit for qualifying water reuse projects.

"To meet rising industrial water demand, the focus must shift from short-term supply solutions to long-term resilience. Embedding water reuse into core infrastructure strategies will help industries future-proof operations while strengthening both economic resilience and water security-particularly as advanced manufacturing, artificial intelligence, and other growth industries accelerate. The Advancing Water Reuse Act is an important step toward scaling industrial water reuse in the United States, reducing pressure on freshwater supplies while supporting the innovation driving the AI economy. We commend Senator Ben Ray Luján and Senator Katie Britt for introducing bipartisan legislation that recognizes water reuse as both an economic and water security imperative," said Josh Mahan, Senior Director, Government and Industry Relations at Xylem

This legislation covers projects that support the installation or expansion of onsite water recycling systems at manufacturing operations and food processing facilities, as well as other high-demand industrial entities. It also covers projects that replace the use of freshwater with recycled water from a municipal water provider for the production of goods or that builds or expands a municipal water recycling system for the purpose of securing recycled water.

"Veralto strongly supports the Water Reuse Investment Tax Credit and applauds the bipartisan Senate leaders advancing this first-of-its-kind effort. As water stress continues to grow in the U.S., water reuse is becoming an essential part of building more resilient water systems including detecting and destroying contaminants before water leaves an industrial site. This tax credit would help reduce cost barriers and accelerate investment in innovative water solutions across critical industries, including manufacturing, energy, and water-intensive infrastructure." - Melissa Kapity, Senior Vice President and Chief Segment Officer, Water Quality, Veralto

The Advancing Water Reuse Act is supported by the Association of Metropolitan Water Agencies, American Public Works Association, American Water Works Association, Epic Cleantec, Grundfos, International Association of Plumbing and Mechanical Officials, National Association of Clean Water Agencies, National Association of Water Companies, National Water Resources Association, Pacific Institute, PepsiCo, Plumbing Manufacturers International, U.S. Chamber of Commerce, Veolia, Water Environment Federation, Water and Wastewater Equipment Manufacturers Association, WateReuse Association, and Xylem.

Full bill text is available here.

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