Luján, Britt Unveil Bipartisan Bill to Boost Industrial Water Reuse, Protect Community Drinking Water, and Meet Public and Private Demand for Freshwater

Legislation Incentivizes Water Reuse Investments to Protect Water Resources for Local Communities and Businesses

Washington, D.C. - Today, U.S. Senators Ben Ray Luján (D-N.M.) and Katie Britt (R-Ala.) introduced the Advancing Water Reuse Act, bipartisan legislation that would provide a federal tax incentive for manufacturers and other industrial entities to invest in water reuse systems and infrastructure. As the nation's aging water infrastructure struggles to meet growing public and private demands for freshwater, the Advancing Water Reuse Act will expand investments in water reuse to protect water, reduce demand on freshwater supplies, and spur business development and job growth.

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.

"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."

"A safe, reliable supply of freshwater is crucial to facilitating economic development while ensuring Americans across the country have access to clean water. 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," said Senator Britt.

"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."

"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.

Specifically, the Advancing Water Reuse Act:

• Creates a 30 percent Investment Tax Credit for qualifying water reuse projects.
• Encourages partnerships between businesses and municipal water recycling systems to increase the use of recycled water.
• Covers projects that:
  • Supports installation or expansion of onsite water recycling systems at manufacturing, food processing, and other industrial entities, including data center facilities;
  • Replaces the use of freshwater, such as groundwater, with recycled water from a municipal water provider for the production of goods or provision of services; or
  • Builds or expands a municipal water recycling system for the purpose of securing recycled water for the production of goods or provision of services.

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, National Association of Manufacturers, WateReuse Association, and Xylem.

A one-pager of the legislation is available here. Full bill text is available here.

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