S. 1242 — Watershed Results Act

This section defines nine terms used in the Act, including "Reclamation State" as any state or territory listed in the first section of the Reclamation Act of 1902 (43 U.S.C. 391)—i.e., Arizona, California, Colorado, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah, Washington, Wyoming, Texas, American Samoa, Guam, the Northern Mariana Islands, and the Virgin Islands—plus Hawaii, Alaska, and Puerto Rico; "eligible entity" as a state, Indian Tribe, irrigation or water district, water or power delivery authority, or nongovernmental entity; "pay-for-performance contract"; "qualifying activity"; "advance watershed analytics"; "watershed outcomes project"; "watershed partner"; "Secretary" as the Secretary of the Interior acting through the Commissioner of Reclamation; and "appropriate committees of Congress."

This section directs the Secretary of the Interior to solicit, within one year of enactment, proposals from eligible entities for watershed outcomes projects in Reclamation States (i.e., the 17 western states served by the Bureau of Reclamation) that use advance watershed analytics (i.e., modeling tools to quantify outcomes and costs of restoration activities) to achieve cost-effective, watershed-scale outcomes such as improved water supply reliability or ecosystem health. The Secretary must develop selection criteria—including project scope, stakeholder support, partner capability, estimated costs, and monitoring plans—and select one watershed partner per watershed to conduct analytics, implement projects, manage duties, and support pay-for-performance contracts. The section authorizes partnership agreements for terms of up to five years (renewable for five years and extendable once for two years), under which the Secretary provides technical and financial assistance—including grants for design, implementation, and performance payments—and may award up to 50% of a project's estimated development costs annually. Watershed partners must carry out duties that include: (1) preparing implementation strategies using analytics to set baselines, performance standards, and outcome prices; (2) prioritizing and recruiting qualifying activities (e.g., habitat restoration or irrigation efficiency improvements) with local stakeholder support; (3) developing plans for high-likelihood activities; and (4) selecting, funding via pay-for-performance contracts, quantifying outcomes of, and verifying qualifying activities.

This section establishes reporting requirements for watershed outcomes projects carried out under section 3 of the Act. (1) Annually, concurrent with the President's budget submission under 31 U.S.C. 1105(a), the Secretary must provide the appropriate congressional committees a briefing or report on the status of each such project, including progress toward the project's strategy under section 3(d)(1) and any payments made for outcomes. (2) By October 1 of the fifth fiscal year of each project, the Secretary must submit a report to the committees summarizing projected results and outcomes, total funds secured and types expended, and recommendations for continuing, terminating, or making permanent the Act's authorizations.