S. 2701: Headwaters Protection Act of 2025

The Headwaters Protection Act of 2025 seeks to amend and improve the existing Water Source Protection Program under the Healthy Forests Restoration Act of 2003. The main objectives of this bill are to enhance the protection and restoration of watersheds, ensuring clean water supply and overall watershed health. Below are the key provisions of the bill:

Reauthorization and Improvements

The bill would reauthorize the Water Source Protection Program, making several updates and improvements including:

• Expanded Eligibility: It includes more organizations as eligible participants in watershed protection efforts, such as acequia associations, local entities managing water resources, and those with water delivery authority.
• Definition Clarification: It defines adjacent land as non-Federal land that is close to National Forest land involved in watershed projects.
• Requirements for Projects: Projects must protect watershed health, restore water supply systems, and manage risks from factors like wildfires or droughts.

Priority Criteria

The bill establishes specific priorities when selecting projects to fund. The Secretary of Agriculture must consider:

• Risk Management: Projects that help manage risks associated with natural disasters such as extreme weather and flooding.
• Aquatic Restoration: Efforts that support aquatic ecosystem conservation along with forest health restoration.
• Community Involvement: Emphasis on partnering with organizations that have the capability to successfully implement water projects, especially in disadvantaged communities.

Conditions for Adjacent Land Projects

Projects on adjacent land can only proceed if the landowner expresses support and is an active partner in the project. This provision ensures partnerships are built based on willingness and engagement.

Watershed Condition Framework Enhancements

The bill also focuses on the overall management strategy for watersheds. Key updates include:

• The requirement for management actions to avoid long-term degradation of watershed health.
• Authorization of budget allocations of $30 million annually for fiscal years 2025 through 2029 to support these goals.

Technical Support and Capacity Building

The bill mandates that a percentage of funds be dedicated to assist non-Federal partners in building technical expertise and capacity for project implementation.

Budget Allocation and Waivers

It specifies the annual budget for the program, increasing previous allocations, and allows the Secretary to waive certain funding requirements based on discretion.

Limitations and Protections

The Act maintains that it does not override existing state or federal water laws, nor does it allow for federal control over non-federal land. This ensures that local water rights and existing legal frameworks are preserved.

Relevant Companies

• WM (Waste Management, Inc.): Potentially impacted as the bill could affect their operations in managing stormwater and wastewater.
• DUK (Duke Energy Corporation): May be involved in projects related to water supply systems if they intersect with energy infrastructure.