Red Hill Watershed and Aquifer Initiative Act or the Red Hill WAI Act This bill requires the Department of the Navy to discontinue all fuel operations at the Red Hill Bulk Fuel Storage Facility in Hawaii and permanently close the facility in accordance with relevant Environmental Protection Agency regulations. Among other responsibilities, the Navy must reimburse the Honolulu Board of Water Supply and the Hawaii State Departments of Health and Education for expenditures made in response to the threats posed by operations at the Red Hill Bulk Fuel Storage Facility.