; (B) a municipality; (C) a water district; and (D) any other authority that provides water, wastewater, or water reuse services. (2) Secretary The term Secretary means the Secretary of Energy. (3) 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) Smart energy and water efficiency pilot program (1) In general The Secretary shall establish and carry out a smart energy and water efficiency management 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 to demonstrate advanced and innovative technology-based solutions that will— (A) increase and improve the energy efficiency of water, wastewater, and water reuse systems to help communities across the United States make significant progress in conserving water, saving energy, and reducing costs; (B) support the implementation of innovative processes and the installation of advanced automated systems that provide real-time data on energy and water; and (C) improve energy and water conservation, water quality, and predictive maintenance of energy and water systems, through the use of Internet-connected technologies, including sensors, intelligent gateways, and security embedded in hardware. (3) Project selection (A) In general The Secretary shall make competitive, merit-reviewed grants under the pilot program to not less than 3, but not more than 5, eligible entities. (B) Selection criteria In selecting an eligible entity to receive a grant under the pilot program, the Secretary shall consider— (i) energy and cost savings anticipated to result from the project; (ii) the innovative nature, commercial viability, and reliability of the technology to be used; (iii) the degree to which the project integrates next-generation sensors, software, hardware, analytics, and management tools