BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Adopt Recommended Positions on Federal Legislation: S. 3693 (Cortez Masto) - Large-Scale Water Recycling Program Reauthorization Act; H.R. 4593 (Fry) - Saving Homeowners from Overregulation With Exceptional Rinsing (SHOWER) Act; H.R. 6641 (Gray) - Central Valley Water Solution Act; H.R. 6984 (Menendez) - Data Center Transparency Act; H.R. 5566 (Carbajal) / S. 3590 (Blunt Rochester) - Water Infrastructure Resilience and Sustainability Act; And Other Legislation That May Require Consideration by the Board.
End
RECOMMENDATION: Recommendation
A. Adopt a Position of “Support” on S. 3693 (Cortez Masto) - Large-Scale Water Recycling Program Reauthorization Act;
B. Adopt a Position of “Oppose” on H.R. 4593 (Fry) - Saving Homeowners from Overregulation With Exceptional Rinsing (SHOWER) Act;
C. Adopt a Position of “Support” on H.R. 6641 (Gray) - Central Valley Water Solution Act;
D. Adopt a Position of “Support” on H.R. 6984 (Menendez) - Data Center Transparency Act; and
E. Adopt a Position of “Support” on H.R. 5566 (Carbajal) / S. 3590 (Blunt Rochester) - Water Infrastructure Resilience and Sustainability Act.
Body
SUMMARY:
A. S. 3693 (Cortez Masto) - Large Scale Water Recycling Reauthorization Act
Recommendation: Support
Priority Recommendation: 2
This bipartisan bill would reauthorize the Large-Scale Water Recycling and Reuse Program at the Bureau of Reclamation, which expires in November 2026. Originally authorized under the Bipartisan Infrastructure Law (Public Law 117-58), the Large-Scale Water Recycling and Reuse Program provides grants to water recycling and reuse projects that have a total cost of at least $500 million, with no cap on the award amount. This bill would extend the program through 2031 and reauthorize its funding ($450 million).
The Board voted to support the House version of this bill, which is identical, in December 2025.
Status:
The bill was introduced in the Senate on January 27, 2026, and it was referred to the Committee on Energy and Natural Resources.
Importance to Santa Clara Valley Water District (Valley Water):
Valley Water’s Recycled and Purified Water Program is an ambitious, large-scale effort to produce a locally sourced, drought-resilient supply of water. As a changing climate produces even more extreme and unpredictable weather throughout the West, having a more stable, sustainable, and locally controlled water supply is essential. The Large-Scale Water Recycling Program is the single largest source of federal funding available for water recycling projects of the size Valley Water is pursuing; the other existing sources provide much smaller awards, such as the Title XVI Water Reclamation and Reuse Program that limits federal investment to $40M per project.
This bill would ensure that this important funding program remains past its expiration. Replenishing these funds is critical, as the program does not have an award cap and the projects that need this support are very costly. Having this program available past 2026 will be critical for supporting the Pure Water Silicon Valley project and others that Valley Water pursues in the future. These projects will be essential to reducing our reliance on imported water and local groundwater supplies.
Pros:
• Reauthorizes a critical source of funding for large water recycling projects, which the other available funding programs (e.g., Title XVI) are simply not designed to do. This would help ensure there is continued funding available (assuming the funds are appropriated) for Valley Water’s Recycled and Purified Water Program in the future.
Cons:
• The bill only authorizes funding for the program. Congress would still need to appropriate funding during the annual appropriations process.
B. H.R. 4593 (Fry) - Saving Homeowners from Overregulation With Exceptional Rinsing (SHOWER) Act
Recommendation: Oppose
Priority Recommendation: 2
This bill would allow the sale of multi-nozzle showerheads, which are currently prohibited under federal showerhead efficiency standards. Those standards require that each nozzle meets a flow of 2.5 gallons per minute; multiple nozzles on one showerhead could double or triple that flow, wasting water and driving up utility bills. According to the Environmental Protection Agency (EPA), showering uses almost 20 percent of all water used in residential buildings. Limiting flow from showerheads is one of the easiest ways to conserve water inside the home.
In May 2025, the Department of Energy adopted a rule intended to allow for multi-nozzle showerheads. However, legislation is needed to change the efficiency standards, which is codified in statute.
Status:
The bill passed the House on January 13, 2026, and it has now been referred to the Senate Committee on Energy and Natural Resources.
Importance to Valley Water:
Water conservation is a central tenet of Valley Water policy, as established by the Board and enumerated in several Ends Policies. This bill would relax the federal standards on showerheads that have helped save critical water resources. This change could impact Valley Water’s ability to meet its long-term water conservation savings goals.
Pros:
• None identified at this time.
Cons:
• The bill could facilitate greater use of multi-nozzle showerheads, which would impact Valley Water’s ability to meet its long-term water conservation savings goals and drive up customers’ water bills.
C. H.R. 6641 (Gray) - Central Valley Water Solution Act
Recommendation: Support
Priority Recommendation: 2
This bill would authorize non-reimbursable funding for a list of specific water infrastructure projects across California, addressing supply issues like groundwater banking and storage, recharge, pipeline construction, in-lieu recharge, and subsidence correction. Among the projects listed are several of importance to Valley Water, including the Delta-Mendota Canal Subsidence Correction Project and the San Luis Canal/California Aqueduct Subsidence Correction Project. The projects listed in the bill were all included in a joint letter to the Biden administration in 2022 from the San Luis and Delta-Mendota Water Authority, San Joaquin River Exchange Contractors Water Authority, and the Friant Authority about how to spend the $4 billion in drought funding from the Inflation Reduction Act.
Status:
The bill was introduced in the House on December 11, 2025, and it was referred to the Committee on Natural Resources.
Importance to Valley Water:
The bill would authorize non-reimbursable funding for projects that would improve water supply reliability for Valley Water and other south-of-Delta contractors. Funding for the Delta-Mendota Canal and the San Luis Canal/California Aqueduct would help improve the carrying capacity for these two canals, which Valley Water relies upon for delivery of imported water. Correcting the subsidence on these canals will require a significant financial investment from the federal government, as well as the State and water users, and this bill would authorize that funding.
Pros:
• The bill would authorize investment in several infrastructure projects of interest to Valley Water, including subsidence correction for the Delta-Mendota Canal and the San Luis Canal/California Aqueduct.
Cons:
• The bill only authorizes funds for these important projects. Congress would still need to appropriate the funds during each annual appropriations process.
D. H.R. 6984 (Menendez) - Data Center Transparency Act
Recommendation: Support
Priority Recommendation: 3
This bill requires the EPA and the Energy Information Administration (EIA) to collect and share information on the effects of data centers on air quality, water quality, and electricity consumption. In particular, it would require the agencies to track water consumption, water reuse, and electricity usage to increase transparency regarding how AI-focused data centers affect local water systems, air quality, and power grid strain.
The EPA would be required to report to Congress every three months on the following:
• The total amount of water consumed by data centers in the U.S.
• How data centers reuse water and the quantity of reused water.
• The impact of data centers on local water systems, focusing on:
o Availability of drinking water.
o Increased demand on local water utilities.
o Service disruptions for other customers of local utilities.
o Changes in residential water service rates.
o The types and amounts of pollutants discharged into water by data centers.
The EIA would be required to report to Congress every six months on the following:
• The total amount of energy consumption by data centers.
• Changes in energy consumption during the preceding six-month period.
• The number of data centers that began operating during that six-month period.
• How household energy bills have changed during that period.
• The average household energy cost.
Both the EPA and EIA would also need to make their findings publicly available, ensuring transparency and accessibility of the data collected.
Status:
The bill was introduced in the House on January 8, 2026, and it was referred to the Committee on Energy and Commerce.
Importance to Valley Water:
The rapid expansion of data centers throughout California and across the nation raises serious concerns over the centers’ water and energy usage. Availability of data on this usage, however, remains elusive. Estimates of water consumption vary widely, and developers often decline to disclose usage, citing proprietary concerns. With the growing number of data centers in Silicon Valley and throughout our region, it is imperative that these centers document their usage to ensure Valley Water is able to plan for long-term water supply reliability and infrastructure capacity.
Pros:
• This bill would help ensure that data centers remain transparent in their impacts on water usage, water reuse, air and water quality, and energy consumption. The public and local elected officials could use this data to inform local decision-making on these issues.
Cons:
• None identified at this time.
E. H.R. 5566 (Carbajal) / S. 3590 (Blunt Rochester) - Water Infrastructure Resilience and Sustainability Act
Recommendation: Support
Priority Recommendation: 2
This bipartisan bill would reauthorize three EPA grant programs for water infrastructure upgrades: the Clean Water Infrastructure Resiliency and Sustainability Program, the Drinking Water System Infrastructure Resilience and Sustainability Program, and the Midsize and Large Drinking Water System Infrastructure Resilience and Sustainability Program. These programs have helped communities upgrade their drinking water, wastewater, and stormwater systems to safeguard against the impacts of more severe weather amid a changing climate.
Status:
H.R. 5566 was introduced in the House on September 26, 2025, and it was referred to the Committee on Energy and Commerce, and in addition to the Committee on Transportation and Infrastructure. S.3590 was read twice and referred to the Committee on Environment and Public Works.
The bill is supported by several water coalitions, including the Association of California Water Agencies.
Importance to Valley Water:
Reauthorizing these EPA grant programs would ensure continued federal investment in our nation’s aging infrastructure, and Valley Water could take advantage of these programs for qualifying projects. EPA estimates that over $1.2 trillion will be needed to upgrade our country’s aging water infrastructure and help it withstand climate disasters and cyber threats. These dangers could potentially disrupt water services, compromise critical data, and risk public safety. With shrinking local and state funding available for these costly upgrades, continued federal investment is important.
Pros:
• Reauthorizes funding programs to modernize aging water systems across the nation.
• Addresses the growing need for infrastructure investment to prevent service interruptions, such as those caused by an estimated 240,000 water main breaks occurring annually in the U.S.
• Valley Water could take advantage of these funds for qualifying infrastructure upgrades in the future.
Cons:
• The bill only authorizes funds for these grant programs. Congress would still need to appropriate the funds during the annual appropriations process.
ENVIRONMENTAL JUSTICE IMPACT:
There are no direct Environmental Justice impacts associated with this item, as the Board’s position does not enact the legislation discussed above.
FINANCIAL IMPACT:
There is no financial impact associated with this item.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have the potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
None.
UNCLASSIFIED MANAGER: Manager
Marta Lugo, 408-630-2237