---
kind: "section"
citation: "42 U.S.C. § 16198"
title: "42"
title_heading: "The Public Health and Welfare"
number: "16198"
heading: "Smart energy and water efficiency pilot program"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/16198"
units:
  - "Chapter 149 — National Energy Policy and Programs"
  - "Subchapter IX — Research and Development"
  - "Part A — Energy Efficiency"
---

# §16198. Smart energy and water efficiency pilot program

- (a) **Definitions—** In this section:
  - (1) **Eligible entity—** The term “[eligible entity](/usc/42/16131.md?p=3)” means—
    - (A) a utility;
    - (B) a municipality;
    - (C) a water district;
    - (D) an Indian Tribe or Alaska Native village; and
    - (E) any other authority that provides water, wastewater, or water reuse services.
  - (2) **Smart energy and water efficiency pilot program—** The term “smart energy and water efficiency pilot program” or “pilot program” means the pilot program established under [subsection (b)](#b).
- (b) **Smart energy and water efficiency pilot program—**
  - (1) **In general—** The [Secretary](/usc/42/15801.md?p=4) shall establish and carry out a smart energy and water efficiency pilot program in accordance with this section.
  - (2) **Purpose—** The purpose of the smart energy and water efficiency pilot program is to award grants to [eligible entities](/usc/42/16131.md?p=3) to demonstrate unique, advanced, or innovative technology-based solutions that will—
    - (A) improve the net energy balance of water, wastewater, and water reuse systems;
    - (B) improve the net energy balance of water, wastewater, and water reuse systems to help communities across the United States make measurable progress in conserving water, saving energy, and reducing costs;
    - (C) support the implementation of innovative and unique processes and the installation of established advanced automated systems that provide real-time data on energy and water; and
    - (D) improve energy-water conservation and quality and predictive maintenance through technologies that utilize internet connected technologies, including sensors, intelligent gateways, and security embedded in hardware.
  - (3) **Project selection—**
    - (A) **In general—** The [Secretary](/usc/42/15801.md?p=4) shall make competitive, merit-reviewed grants under the pilot program to not less than 3, but not more than 5, [eligible entities](/usc/42/16131.md?p=3).
    - (B) **Selection criteria—** In selecting an [eligible entity](/usc/42/16131.md?p=3) to receive a grant under the pilot program, the [Secretary](/usc/42/15801.md?p=4) shall consider—
      - (i) energy and cost savings;
      - (ii) the uniqueness, commercial viability, and reliability of the technology to be used;
      - (iii) the degree to which the [project](/usc/42/16371.md?p=12) integrates next-generation sensors software, analytics, and management tools;
      - (iv) the anticipated cost-effectiveness of the pilot [project](/usc/42/16371.md?p=12) through measurable energy savings, water savings or reuse, and infrastructure costs averted;
      - (v) whether the technology can be deployed in a variety of geographic regions and the degree to which the technology can be implemented in a wide range of applications ranging in scale from small towns to large cities, including Tribal communities;
      - (vi) whether the technology has been successfully deployed elsewhere;
      - (vii) whether the technology was sourced from a manufacturer based in the United States; and
      - (viii) whether the [project](/usc/42/16371.md?p=12) will be completed in 5 years or less.
    - (C) **Applications—**
      - (i) **In general—** Subject to [clause (ii)](#b-3-C-ii), an [eligible entity](/usc/42/16131.md?p=3) seeking a grant under the pilot program shall submit to the [Secretary](/usc/42/15801.md?p=4) an application at such time, in such manner, and containing such information as the [Secretary](/usc/42/15801.md?p=4) determines to be necessary.
      - (ii) **Contents—** An application under [clause (i)](#b-3-C-i) shall, at a minimum, include—
        - (I) a description of the [project](/usc/42/16371.md?p=12);
        - (II) a description of the technology to be used in the [project](/usc/42/16371.md?p=12);
        - (III) the anticipated results, including energy and water savings, of the [project](/usc/42/16371.md?p=12);
        - (IV) a comprehensive budget for the [project](/usc/42/16371.md?p=12);
        - (V) the names of the [project](/usc/42/16371.md?p=12) lead organization and any partners;
        - (VI) the number of users to be served by the [project](/usc/42/16371.md?p=12);
        - (VII) a description of the ways in which the proposal would meet performance measures established by the [Secretary](/usc/42/15801.md?p=4); and
        - (VIII) any other information that the [Secretary](/usc/42/15801.md?p=4) determines to be necessary to complete the review and selection of a grant recipient.
  - (4) **Administration—**
    - (A) **In general—** Not later than 1 year after December 27, 2020, the [Secretary](/usc/42/15801.md?p=4) shall select grant recipients under this section.
    - (B) **Evaluations—**
      - (i) **Annual evaluations—** The [Secretary](/usc/42/15801.md?p=4) shall annually carry out an evaluation of each [project](/usc/42/16371.md?p=12) for which a grant is provided under this section that meets performance measures and benchmarks developed by the [Secretary](/usc/42/15801.md?p=4), consistent with the purposes of this section.
      - (ii) **Requirements—** Consistent with the performance measures and benchmarks developed under [clause (i)](#b-4-B-i), in carrying out an evaluation under that clause, the [Secretary](/usc/42/15801.md?p=4) shall—
        - (I) evaluate the progress and impact of the [project](/usc/42/16371.md?p=12); and
        - (II) assess the degree to which the [project](/usc/42/16371.md?p=12) is meeting the goals of the pilot program.
    - (C) **Technical and policy assistance—** On the request of a grant recipient, the [Secretary](/usc/42/15801.md?p=4) shall provide technical and policy assistance.
    - (D) **Best practices—** The [Secretary](/usc/42/15801.md?p=4) shall make available to the public through the Internet and other means the [Secretary](/usc/42/15801.md?p=4) considers to be appropriate—
      - (i) a copy of each evaluation carried out under [subparagraph (B)](#b-4-B); and
      - (ii) a description of any best [practices](/usc/42/17061.md?p=19) identified by the [Secretary](/usc/42/15801.md?p=4) as a result of those evaluations.
    - (E) **Report to Congress—** The [Secretary](/usc/42/15801.md?p=4) shall submit to Congress a report containing the results of each evaluation carried out under [subparagraph (B)](#b-4-B).
- (c) **Authorization of appropriations—** There is authorized to be appropriated to the [Secretary](/usc/42/15801.md?p=4) to carry out this section $15,000,000, to remain available until expended.

## Source credit

(Pub. L. 109–58, title IX, § 918, as added Pub. L. 116–260, div. Z, title I, § 1014(a), Dec. 27, 2020, 134 Stat. 2451.)