[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4231 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
2d Session
S. 4231
To support water infrastructure in Reclamation States, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 17, 2022
Mrs. Feinstein (for herself, Mr. Kelly, and Ms. Sinema) introduced the
following bill; which was read twice and referred to the Committee on
Energy and Natural Resources
_______________________________________________________________________
A BILL
To support water infrastructure in Reclamation States, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Support To
Rehydrate the Environment, Agriculture, and Municipalities Act'' or the
``STREAM Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--INFRASTRUCTURE DEVELOPMENT
Sec. 101. Competitive grant program for the funding of water recycling
projects.
Sec. 102. Annual report to Congress.
Sec. 103. Storage and conveyance projects.
Sec. 104. Eligible desalination project development.
Sec. 105. Reclamation infrastructure finance and innovation pilot
program.
Sec. 106. Drinking water assistance for disadvantaged communities.
Sec. 107. Extraordinary operation and maintenance work; project
modification.
Sec. 108. Use of revenue to improve drought resilience or dam safety.
TITLE II--IMPROVED TECHNOLOGY AND DATA
Sec. 201. Reauthorization of the transboundary aquifer assessment
program.
TITLE III--ECOSYSTEM RESTORATION AND PROTECTION
Sec. 301. Ecosystem restoration.
Sec. 302. Performance-based restoration authority.
TITLE IV--MISCELLANEOUS
Sec. 401. Modifications to drought program under the Reclamation States
Emergency Drought Relief Act of 1991.
Sec. 402. Clarification of authority to use coronavirus fiscal recovery
funds to meet a non-Federal matching
requirement for authorized water projects.
Sec. 403. Environmental compliance.
Sec. 404. Effect.
SEC. 2. DEFINITIONS.
In this Act:
(1) Annual report.--The term ``annual report'' means a
report required under section 102(a).
(2) Authorized project.--The term ``authorized project''
means a storage project authorized by an Act of Congress,
including through an applicable standing authorization under
section 5B of the Reclamation Safety of Dams Act of 1978 (43
U.S.C. 509b) or any other applicable law.
(3) Authorizing committees of congress.--The term
``authorizing committees of Congress'' means--
(A) the Committee on Energy and Natural Resources
of the Senate; and
(B) the Committee on Natural Resources of the House
of Representatives.
(4) Design; study.--
(A) In general.--The terms ``design'' and ``study''
include any design, permitting, study (including a
feasibility study), materials engineering or testing,
surveying, or preconstruction activity relating to a
water storage facility.
(B) Exclusions.--The terms ``design'' and ``study''
do not include an appraisal study or other preliminary
review intended to determine whether further study is
appropriate.
(5) Disadvantaged community.--The term ``disadvantaged
community'' means a low-income community (as defined in section
45D(e) of the Internal Revenue Code of 1986).
(6) Eligible desalination project.--The term ``eligible
desalination project'' has the meaning given the term in
paragraph (2) of section 4(a) of the Water Desalination Act of
1996 (42 U.S.C. 10301 note; Public Law 104-298) (as amended by
section 104(a)).
(7) Eligible entity.--The term ``eligible entity'' means--
(A) any State, political subdivision of a State,
department of a State, or public agency organized
pursuant to State law;
(B) an Indian Tribe (as defined in section 4 of the
Indian Self-Determination and Education Assistance Act
(25 U.S.C. 5304)) or an entity controlled by an Indian
Tribe;
(C) a water users' association;
(D) an agency established by an interstate compact;
and
(E) an agency established under State law for the
joint exercise of powers.
(8) Federal benefit.--The term ``Federal benefit'', with
respect to a non-Federal storage project, water recycling
project, or eligible desalination project, means--
(A) public benefits provided directly by a project;
(B) public benefits that--
(i) are--
(I) fish and wildlife benefits
described in paragraph (12)(A)(i); or
(II) water quality benefits;
(ii) are provided by the implementation of
a watershed restoration plan approved with the
project; and
(iii) represent an increased Federal
commitment in the watershed as compared to
Federal commitments before the date of approval
of the project;
(C) benefits to a watershed from a water recycling
project or eligible desalination project; or
(D) water supply benefits identified in accordance
with the reclamation laws.
(9) Federal storage project.--The term ``Federal storage
project'' means any project constructed by the Bureau of
Reclamation--
(A) that involves the construction or expansion
of--
(i) a surface water storage facility; or
(ii) a facility conveying water to or from
surface or groundwater storage; and
(B) to which the United States holds or will hold
title.
(10) Natural water retention and release project.--
(A) In general.--The term ``natural water retention
and release project'' means a non-Federal storage
project designed and developed to increase water
availability for optimal management through aquifer
recharge, floodplain retention, the alteration of the
timing of runoff to allow increased utilization of
existing storage facilities, or another mechanism
that--
(i) uses primarily natural materials
appropriate to the specific site and landscape
setting; and
(ii) substantially mimics natural riverine,
wetland, ecosystem, or hydrologic processes.
(B) Inclusions.--The term ``natural water retention
and release project'' includes--
(i) a single natural water retention and
release project;
(ii) several distributed natural water
retention and release projects across a
watershed; and
(iii) the redesign, modification, or
replacement of existing infrastructure to
incorporate natural water retention and release
elements.
(11) Non-federal storage project.--The term ``non-Federal
storage project'' means any project in a Reclamation State
that--
(A) involves the construction, expansion, or repair
by an eligible entity of--
(i) a surface or groundwater storage
project that is not federally owned;
(ii) a facility that is not federally owned
conveying water to or from surface or
groundwater storage; or
(iii) a natural water retention and release
project; and
(B) provides a benefit in meeting any obligation
under applicable Federal law (including regulations).
(12) Public benefit.--The term ``public benefit'', with
respect to a non-Federal storage project or extraordinary
operation and maintenance work, means--
(A)(i) fish and wildlife benefits--
(I) that are in excess of express
mitigation and environmental compliance
obligations under applicable Federal and State
law, including regulations, permits, contracts,
licenses, grants, or orders or decisions from
Federal and State courts, in effect on the date
on which amounts are made available for the
applicable project under this Act; and
(II) including incremental level 4 flows
for managed land entitled to receive level 2
refuge water;
(ii) flood control benefits;
(iii) recreational benefits;
(iv) water quality benefits that are in excess of
the obligations described in clause (i)(I) of
subparagraph (A); and
(v) any other benefits that are nonreimbursable
under the reclamation laws;
(B) drinking water supply for disadvantaged
communities, including through groundwater recharge,
the benefits of which are in excess of the obligations
described in clause (i)(I) of subparagraph (A);
(C) emergency drinking water supply used in
response to a disaster declaration by a Governor; and
(D) energy savings benefits, including--
(i) the value of associated greenhouse gas
reductions; and
(ii) any reduction in energy costs for
Federal taxpayers, such as reduced water
delivery costs for water providing fish and
wildlife benefits.
(13) Qualified partner.--The term ``qualified partner''
means a nonprofit organization operating in a Reclamation State
that is acting with the written support of an eligible entity.
(14) Reclamation laws.--The term ``reclamation laws'' means
Federal reclamation law (the Act of June 17, 1902 (32 Stat.
388, chapter 1093), and Acts supplemental to and amendatory of
that Act (43 U.S.C. 371 et seq.)).
(15) Reclamation state.--The term ``Reclamation State'' has
the meaning given the term in section 4014 of the Water
Infrastructure Improvements for the Nation Act (43 U.S.C. 390b
note; Public Law 114-322).
(16) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(17) Storage project.--The term ``storage project'' means a
Federal storage project or a non-Federal storage project.
(18) Water recycling project.--The term ``water recycling
project'' means a project provided a grant under section
1602(f) of the Reclamation Wastewater and Groundwater Study and
Facilities Act (43 U.S.C. 390h(f)).
(19) Watershed.--The term ``watershed'' includes--
(A) an entire watershed; or
(B) any portion of a watershed, including the upper
or lower reaches of the watershed.
(20) Watershed restoration plan.--The term ``watershed
restoration plan'' means a plan approved by the Secretary that
would provide benefits to the affected watershed from a non-
Federal storage project and other projects and activities,
including--
(A)(i) restoration of fish and wildlife habitat or
flows; or
(ii) water quality benefits; and
(B) water supply benefits.
TITLE I--INFRASTRUCTURE DEVELOPMENT
SEC. 101. COMPETITIVE GRANT PROGRAM FOR THE FUNDING OF WATER RECYCLING
PROJECTS.
(a) Authorization of New Water Recycling Projects.--Section 1602 of
the Reclamation Wastewater and Groundwater Study and Facilities Act (43
U.S.C. 390h) is amended--
(1) in subsection (e)(2)(B), by striking ``in accordance
with the reclamation laws''; and
(2) in subsection (f)--
(A) in paragraph (1), by striking ``, subject to
subsection (g)(2)''; and
(B) by striking paragraph (2) and all that follows
through the end of subsection (g) and inserting the
following:
``(2) Priorities and diversity of project types.--In
providing grants under paragraph (1), the Secretary shall--
``(A) give priority to projects that--
``(i) are likely to provide a more-reliable
water supply for a unit of State or local
government;
``(ii) are likely to increase the water
management flexibility and reduce impacts on
environmental resources; or
``(iii) provide multiple benefits,
including water supply reliability, ecosystem
benefits, system reliability benefits,
groundwater management and enhancements, and
water quality improvements; and
``(B) take into consideration selecting a diversity
of project types, including projects that serve--
``(i) a region or more than 1 community;
``(ii) a rural or small community; or
``(iii) an urban community or city.
``(g) Authorization of Appropriations.--In addition to amounts made
available under section 40901(4)(A) of the Infrastructure Investment
and Jobs Act (43 U.S.C. 3201(4)(A)), there is authorized to be
appropriated to the Secretary to carry out subsections (e) and (f)
$300,000,000 for the period of fiscal years 2024 through 2028.''.
(b) Limitation on Funding.--Section 1631(d) of the Reclamation
Wastewater and Groundwater Study and Facilities Act (43 U.S.C. 390h-
13(d)) is amended--
(1) in paragraph (1)--
(A) by striking ``by paragraph (2)'' and inserting
``in paragraphs (2) and (3)''; and
(B) striking ``$20,000,000 (October 1996 prices)''
and inserting ``$50,000,000 (in prices as determined
for January 2022)''; and
(2) in paragraph (2)--
(A) in subparagraph (B)--
(i) by striking ``(B) In the case'' and
inserting the following:
``(B) San gabriel basin.--In the case''; and
(ii) by indenting clauses (i) and (ii)
appropriately; and
(B) by striking ``(2)(A) Subject to'' and inserting
the following:
``(2) Projects funded as of 2021.--The Federal share of the
cost of any single project authorized under this title shall be
$20,000,000 (October 1996 prices) if the project has received
that amount as of December 31, 2021.
``(3) Older projects.--
``(A) In general.--Subject to''.
SEC. 102. ANNUAL REPORT TO CONGRESS.
(a) Annual Reports.--Not later than February 1 of each year, the
Secretary shall develop and submit to the authorizing committees of
Congress an annual report, to be entitled ``Report to Congress on
Future Storage Project Development'', that--
(1) identifies, with respect to Federal storage projects
and non-Federal storage projects--
(A) each feasibility report that--
(i) meets the criteria established under
subsection (c)(1)(A); and
(ii) is recommended by the Secretary for
congressional authorization for construction;
(B) each proposed feasibility study submitted to
the Secretary by an eligible entity pursuant to
subsection (b) that meets the criteria established
under subsection (c)(1)(A);
(C) any proposed modification to an authorized
project that meets the criteria established under
subsection (c)(1)(A) that is--
(i) submitted to the Secretary by an
eligible entity pursuant to subsection (b); or
(ii) identified by the Secretary for
authorization; and
(2) provides a status update for each feasibility study for
a Federal storage project that is under evaluation during the
period covered by the report and is intended to meet the
criteria established under subsection (c)(1)(A), including
identifying--
(A) the initiation date of the feasibility study;
(B) the percentage completion of the feasibility
study; and
(C) the expected completion date of the feasibility
study.
(b) Requests for Proposals.--
(1) Publication.--Not later than May 1 of each year, the
Secretary shall publish a notice requesting proposals from
eligible entities for proposed feasibility studies and proposed
modifications to authorized projects to be included in the
annual report.
(2) Deadline for requests.--The Secretary shall include in
each notice required under this subsection a requirement that
eligible entities submit to the Secretary any proposals
described in paragraph (1) by not later than 120 days after the
date of publication of the notice in order for the proposals to
be considered for inclusion in the annual report.
(3) Notification.--On the date of publication of each
notice required by this subsection, the Secretary shall--
(A) make the notice publicly available, including
on the internet; and
(B) provide written notification of the publication
to the authorizing committees of Congress.
(c) Contents.--
(1) Inclusions.--
(A) Criteria.--The Secretary shall include in the
annual report--
(i) subject to subparagraph (B), a
feasibility report or proposed feasibility
study for, or proposed modifications to, a
Federal storage project or non-Federal storage
project that--
(I) the Secretary determines is
related to the missions and authorities
of the Bureau of Reclamation;
(II) requires specific
congressional authorization, including
by an Act of Congress;
(III) the Secretary determines
could be eligible for design, study, or
construction; and
(IV) has not been authorized by
Congress; and
(ii) a list of, as of the date of the
annual report--
(I) each non-Federal storage
project that is under construction;
(II) each feasibility study that is
being conducted for non-Federal storage
projects; and
(III) the amount of appropriated
funding that the Secretary has awarded
to each project or feasibility study
listed under subclause (I) or (II).
(B) Limitations.--Notwithstanding subparagraph
(A)(i)--
(i) a feasibility study shall not be
included in an annual report if the feasibility
study was included in any previous annual
report; and
(ii) a feasibility report for a non-Federal
storage project shall not be included in an
annual report unless the project has a Federal
cost-share of more than $250,000,000.
(C) Description of benefits.--The Secretary shall
describe in the annual report, to the extent applicable
and practicable, for each proposed feasibility study
and proposed modification to an authorized project
included in the annual report, the benefits of each
project or proposed modification.
(D) Identification of other factors.--The Secretary
shall identify in the annual report, to the extent
practicable--
(i) for each proposed feasibility study
included in the annual report, the eligible
entity that submitted the proposed project
study pursuant to subsection (b); and
(ii) for each proposed feasibility study
and proposed modification to a project included
in the annual report, whether the eligible
entity has demonstrated--
(I) that local support exists for
the proposed feasibility study or
proposed modification to an authorized
project (including the project that is
the subject of the proposed feasibility
study or the proposed modification);
and
(II) the financial ability to
provide the required non-Federal cost
share.
(2) Transparency.--The Secretary shall include in the
annual report, for each feasibility report, proposed
feasibility study, and proposed modification to a project
included under paragraph (1)(A)--
(A) the name of the associated eligible entity,
including the name of any eligible entity that has
contributed, or is expected to contribute, a non-
Federal share of the cost of--
(i) the feasibility report;
(ii) the proposed feasibility study; or
(iii) construction of--
(I) the project that is the subject
of--
(aa) the feasibility
report; or
(bb) the proposed
feasibility study; or
(II) the proposed modification to a
project;
(B) a letter or statement of support for the
feasibility report, proposed feasibility study, or
proposed modification to a project from each associated
eligible entity;
(C) the purpose of the feasibility report, proposed
feasibility study, or proposed modification to a
project;
(D) an estimate, to the extent practicable, of the
Federal, non-Federal, and total costs of construction
of--
(i) the project that is the subject of the
feasibility report; or
(ii) the proposed modification to an
authorized project; and
(E) an estimate, to the extent practicable, of the
monetary and nonmonetary benefits of--
(i) the project that is the subject of the
feasibility report; or
(ii) the proposed modification to an
authorized project.
(3) Certification.--The Secretary shall include in the
annual report a certification stating that each feasibility
report, proposed feasibility study, and proposed modification
to a project included in the annual report meets the criteria
established under paragraph (1)(A).
(4) Appendix.--
(A) In general.--The Secretary shall include in the
annual report an appendix listing the proposals
submitted under subsection (b) that were not included
in the annual report under paragraph (1)(A) and a
description of why the Secretary determined that those
proposals did not meet the criteria for inclusion under
that paragraph.
(B) Limitation.--The Secretary shall not include--
(i) in an appendix under subparagraph (A)
any proposal that meets the criteria for
inclusion in the annual report solely on the
basis of a determination by the Secretary that
the proposal requires legislative changes to an
authorized project or feasibility study; or
(ii) in an appendix under subparagraph (A)
or any other part of the annual report any
proposal that meets the criteria for inclusion
in the annual report solely on the basis of a
policy of the Secretary.
(d) Special Rule for Initial Annual Report.--Notwithstanding any
other deadline under this section, the Secretary shall--
(1) not later than 60 days after the date of enactment of
this Act, publish a notice required under subsection (b)(1);
and
(2) include in the notice a requirement that eligible
entities submit to the Secretary any proposals described in
subsection (b)(1) by not later than 120 days after the date of
publication of the notice in order for the proposals to be
considered for inclusion in the first annual report developed
by the Secretary under this section.
(e) Publication.--On submission of an annual report to Congress,
the Secretary shall make the annual report publicly available,
including through publication on the internet.
SEC. 103. STORAGE AND CONVEYANCE PROJECTS.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a State, Indian Tribe, municipality, irrigation
district, water district, wastewater district, or other
organization with water or power delivery authority;
(B) a State, regional, or local authority, the
members of which include 1 or more organizations with
water or power delivery authority; or
(C)(i) an agency established under State law for
the joint exercise of powers;
(ii) a combination of entities described in
subparagraphs (A) and (B); or
(iii) with respect to a natural water retention and
release project, a qualified partner.
(2) Eligible project.--The term ``eligible project'' means
a project described in subsection (c).
(3) Program.--The term ``program'' means the grant program
established under subsection (b).
(4) Reclamation state.--The term ``Reclamation State''
means a State or territory described in the first section of
the Act of June 17, 1902 (32 Stat. 388, chapter 1093; 43 U.S.C.
391).
(b) Establishment.--The Secretary shall establish a program to
provide grants to eligible entities on a competitive basis for the
study, planning, design, and construction of non-Federal storage
projects that provide substantial water supply and other benefits to a
Reclamation State in accordance with this section.
(c) Eligible Project.--A project shall be eligible for a grant
under this section if the project--
(1) involves the construction or expansion by an eligible
entity of--
(A) a surface or groundwater storage project that
is not federally owned;
(B) a facility that is not federally owned that
conveys water to or from surface or groundwater
storage; or
(C) a natural water retention and release project;
(2) has a Federal cost-share of not more than $250,000,000;
(3) is located in a Reclamation State;
(4) is constructed, operated, and maintained by an eligible
entity; and
(5) provides a Federal benefit.
(d) Project Evaluation.--The Secretary may provide a grant to an
eligible entity for an eligible project under the program--
(1) for the study of the eligible project, if the Secretary
has identified the potential for sufficient Federal benefits
from the eligible project to proceed;
(2) for the construction of a non-Federal storage project
that is not a natural water retention and release project, if--
(A) the eligible entity determines through the
preparation of a feasibility study or equivalent study,
and the Secretary concurs, that the eligible project--
(i) is technically and financially
feasible;
(ii) provides a Federal benefit; and
(iii) is consistent with applicable Federal
and State laws;
(B) the eligible entity has sufficient non-Federal
funding available to complete the eligible project, as
determined by the Secretary;
(C) the eligible entity is financially solvent, as
determined by the Secretary;
(D) the Governor, a member of the cabinet of the
Governor, or the head of a department of the
Reclamation State in which the non-Federal storage
project is located supports the project or Federal
funding of the project; and
(E) not later than 30 days after the date on which
the Secretary concurs with the determinations under
subparagraph (A) with respect to the eligible project,
the Secretary submits to Congress written notice of the
determinations; and
(3) for a natural water retention and release project--
(A) that costs not more than $10,000,000, if the
eligible entity demonstrates that the natural water
retention and release project would help optimize the
storage or delivery of water in a watershed in which a
Bureau of Reclamation facility is located; and
(B) that costs more than $10,000,000, if--
(i) the conditions described in paragraph
(2) have been met; and
(ii) the eligible entity determines, and
the Secretary concurs, that--
(I) the natural water retention and
release project would produce or allow
additional retention or delivery of
water in a watershed in which a Bureau
of Reclamation facility is located; and
(II) there is a credible estimate
of the quantity of the storage benefit
of the natural water retention and
release project during each of a
``wet'' year, a ``normal'' year, and a
``dry'' year.
(e) Priority.--In providing grants to eligible entities for
eligible projects under the program, the Secretary shall give funding
priority to an eligible project that directly or through watershed
restoration plans approved with the project meets 2 or more of the
following criteria:
(1) Provides multiple benefits, including substantial
quantities of each of the following:
(A) Water supply reliability benefits for States
and communities that are frequently drought-stricken.
(B) Fish and wildlife benefits.
(C) Water quality improvements.
(2) Reduces impacts on environmental resources from water
projects owned or operated by Federal agencies and State
agencies, including through measurable reductions in water
diversions from imperiled ecosystems.
(3) Advances water management plans across a multi-State
area, such as drought contingency plans in the Colorado River
Basin.
(4) Is collaboratively developed or supported by multiple
stakeholders.
(5) Is located within a watershed for which an integrated,
comprehensive watershed management plan has been developed to
enhance resilience of ecosystems, agricultural operations, and
communities to chronic water scarcity, acute drought, and
changing hydrological regimes.
(f) Federal Assistance.--
(1) Federal cost share.--
(A) In general.--Except as provided in subparagraph
(B), the Federal share of the cost of any eligible
project provided a grant under the program shall not
exceed 25 percent of the total cost of the eligible
project.
(B) Exception.--The Federal share of the cost of a
natural water retention and release project provided a
grant under the program shall not exceed 90 percent of
the total cost of the natural water retention and
release project.
(2) Reimbursability of funds.--
(A) Nonreimbursable funds.--
(i) Public benefits.--Subject to paragraph
(1), any funds provided by the Secretary to an
eligible entity under the program for the value
of public benefits described in subparagraphs
(A) and (B) of section 2(8) shall be considered
nonreimbursable.
(ii) Water supply benefits of equal value
to public benefits.--Subject to paragraph (1),
any funds provided by the Secretary for the
value of Federal benefits provided under
section 2(8)(D) shall be considered
nonreimbursable to the extent that the value of
the Federal benefits does not exceed the value
of public benefits funded under clause (i) that
are fish and wildlife or water quality
benefits.
(B) Reimbursable funds.--If any funding provided
under subparagraph (A) is less than 25 percent of the
total cost of the eligible project, the Secretary may
provide reimbursable funds to an eligible entity for
any Federal benefits provided under section 2(8)(D) for
not more than 25 percent of the total cost of the
eligible project.
(g) Environmental Laws.--In providing a grant for an eligible
project under the program, the Secretary shall comply with all
applicable environmental laws, including the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.).
(h) Guidance.--Not later than 1 year after the date of enactment of
this Act, the Secretary shall issue guidance on the implementation of
the program, including guidelines for the preparation of feasibility
studies or equivalent studies by eligible entities.
(i) Reports.--
(1) Annual report.--At the end of each fiscal year, the
Secretary shall make available on the website of the Department
of the Interior an annual report that lists each eligible
project for which a grant has been awarded under this section
during the fiscal year.
(2) Comptroller general assessment.--The Comptroller
General of the United States shall conduct an assessment of the
administrative establishment, solicitation, selection, and
justification process with respect to the funding of grants
under this section.
(j) Treatment of Conveyance.--The planning, design, and
construction of a conveyance system for an eligible project shall be
eligible for grant funding under the program.
(k) Funding.--
(1) Authorization of appropriations.--In addition to
amounts made available under section 40901(1) of the
Infrastructure Investment and Jobs Act (43 U.S.C. 3201(1)),
there is authorized to be appropriated to the Secretary to
carry out this section $750,000,000 for the period of fiscal
years 2024 through 2028, of which $50,000,000 is authorized to
be appropriated during that period to carry out natural water
retention and release projects under subsection (d)(3).
(2) Allocation.--Subject to paragraphs (3) and (5), the
Secretary shall allocate amounts made available under paragraph
(1) among--
(A) the design and study of--
(i) non-Federal storage projects, including
natural water retention and release projects;
and
(ii) storage projects that are eligible for
study funding under subsection (a)(1) of
section 40902 of the Infrastructure Investment
and Jobs Act (43 U.S.C. 3202), if the amounts
made available to the storage projects under
this clause are provided in accordance with
subsections (b) and (c) of that section; and
(B) construction of--
(i) non-Federal storage projects, including
natural water retention and release projects;
and
(ii) storage projects that have received
construction funding in accordance with
subsection (a)(2) of section 40902 of the
Infrastructure Investment and Jobs Act (43
U.S.C. 3202), if the amounts made available to
the storage projects under this clause are
provided in accordance with subsections (b) and
(c) of that section.
(3) Preliminary studies.--Of the amounts made available
under paragraph (1), not more than 25 percent shall be provided
for appraisal studies, feasibility studies, or other
preliminary studies.
(4) WIIN act storage funding.--The Secretary may award
funding made available under section 4007(h) of the Water
Infrastructure Improvements for the Nation Act (43 U.S.C. 390b
note; Public Law 114-322) to--
(A) non-Federal storage projects, including natural
water retention and release projects;
(B) storage projects that are eligible for study
funding under subsection (a)(1) of section 40902 of the
Infrastructure Investment and Jobs Act (43 U.S.C.
3202), if the amounts made available under this
subparagraph to storage projects is provided in
accordance with subsections (b) and (c) of that
section; and
(C) storage projects that have received
construction funding in accordance with subsection
(a)(2) of section 40902 of the Infrastructure
Investment and Jobs Act (43 U.S.C. 3202), if the
amounts made available to storage projects under this
subparagraph is provided in accordance with subsections
(b) and (c) of that section.
(5) Other storage projects.--The funds appropriated under
paragraph (1) may not be used for storage projects other than
those described in paragraph (2) unless authorized by an Act of
Congress.
(6) Use of funding for public benefits.--
(A) In general.--The Federal share of the cost of
public benefits provided by a storage project described
in paragraph (2) may be used for--
(i) the capital and operations,
maintenance, and replacement costs of public
benefits; and
(ii) the operations, maintenance, and
replacement costs of public benefits described
in section 2(12)(A), the capital costs of which
are funded by the applicable Reclamation State.
(B) Effect.--Nothing in this paragraph precludes
the Secretary from using other authorities or
appropriations for the capital and operations,
maintenance, and replacement costs of a non-Federal
storage project to provide public benefits.
(l) Amendment to the Infrastructure Jobs and Investment Act.--
Section 40902(a)(2)(C)(i) of the Infrastructure Investment and Jobs Act
(43 U.S.C. 3202(a)(2)(C)(i)) is amended by striking ``clause (i) or
(ii)'' and inserting ``clause (i), (ii), or (iii)''.
(m) Authorization To Complete Storage Projects That Receive
Construction Funding.--
(1) Definition of construction.--In this subsection, the
term ``construction'' has the meaning given the term in section
4011(f) of the Water Infrastructure Improvements for the Nation
Act (Public Law 114-322; 130 Stat. 1881).
(2) Extension of existing requirements.--A storage project
that has received funding for construction activities in
accordance with section 40901(1) of the Infrastructure
Investment and Jobs Act (43 U.S.C. 3201(1)) shall be eligible
for funding (including funding authorized under this section or
an amendment made by this section), to complete construction of
the project in accordance with the standards under section
40902 of that Act (43 U.S.C. 3202).
(n) Calfed Reauthorization.--Title I of Public Law 108-361 (118
Stat. 1681; 123 Stat. 2860; 128 Stat. 164; 128 Stat. 2312; 129 Stat.
2407; 130 Stat. 1866; 133 Stat. 2669; 134 Stat. 1363), is amended by
striking ``2021'' each place it appears and inserting ``2027''.
SEC. 104. ELIGIBLE DESALINATION PROJECT DEVELOPMENT.
(a) Eligible Desalination Projects Authorization.--Section 4(a) of
the Water Desalination Act of 1996 (42 U.S.C. 10301 note; Public Law
104-298) is amended by striking paragraph (2) and inserting the
following:
``(2) Projects.--
``(A) Definitions.--In this paragraph:
``(i) Eligible desalination project.--The
term `eligible desalination project' means any
project located in a Reclamation State, or for
which the construction, operation, sponsorship,
or funding is the responsibility of, and the
primary water supply benefit accrues to, 1 or
more entities in a Reclamation State, that--
``(I) involves an ocean or brackish
water desalination facility--
``(aa) constructed,
operated, and maintained by a
State, Indian Tribe, irrigation
district, water district, or
other organization with water
or power delivery authority; or
``(bb) sponsored or funded
by any combination of a State,
department of a State,
political subdivision of a
State, or public agency
organized pursuant to State
law, including through--
``(AA) direct
sponsorship or funding;
or
``(BB) indirect
sponsorship or funding,
such as by paying for
the water provided by
the facility;
``(II) provides a Federal benefit;
and
``(III) is consistent with
applicable Federal and State resource
protection laws, including any law
relating to the protection of marine
protected areas.
``(ii) Authorizing committees of congress;
federal benefit; reclamation state.--The terms
`authorizing committees of Congress', `Federal
benefit', and `Reclamation State' have the
meaning given the terms in section 2 of the
Support To Rehydrate the Environment,
Agriculture, and Municipalities Act.
``(iii) Rural desalination project.--The
term `rural desalination project' means an
eligible desalination project that is designed
to serve a community or group of communities,
each of which has a population of not more than
25,000 inhabitants.
``(B) Cost-sharing requirement.--
``(i) In general.--Subject to the
requirements of this subsection and
notwithstanding section 7, the Federal share of
an eligible desalination project carried out
under this subsection shall be--
``(I) not more than 25 percent of
the total cost of the eligible
desalination project; or
``(II) in the case of a rural
desalination project, the applicable
percentage determined in accordance
with clause (ii).
``(ii) Rural desalination projects.--
``(I) Cost-sharing requirement for
appraisal studies.--Subject to
subclause (IV), in the case of a rural
desalination project carried out under
this subsection, the Federal share of
the cost of appraisal studies for the
rural desalination project shall be--
``(aa) 75 percent of the
total costs of the appraisal
studies, up to $200,000; and
``(bb) if the total costs
of the appraisal studies are
more than $200,000, 50 percent
of any amounts over $200,000.
``(II) Cost-sharing requirement for
feasibility studies.--Subject to
subclause (IV), in the case of a rural
desalination project carried out under
this subsection, the Federal share of
the cost of feasibility studies for the
rural desalination project shall be not
more than 50 percent.
``(III) Cost-sharing requirement
for construction costs.--Subject to
subclause (IV), in the case of a rural
desalination project carried out under
this subsection, the Federal share of
the cost of construction of the rural
desalination project shall be not more
than 75 percent.
``(IV) Reduction in non-federal
share.--The Secretary may reduce the
non-Federal share of a rural
desalination project required under
subclause (I), (II), or (III) by not
more than 10 percent if the Secretary
determines, after consultation with the
heads of any other Federal agencies
that are partners in the rural
desalination project and in accordance
with applicable Reclamation standards,
that the reduction is appropriate due
to--
``(aa) an overwhelming
Federal interest in the rural
desalination project; and
``(bb) the sponsor of the
rural desalination project
demonstrating financial
hardship.
``(iii) Limitation.--Funding for a rural
desalination project under clause (ii) or the
Water Infrastructure Finance and Innovation Act
of 2014 (33 U.S.C. 3901 et seq.) shall not be
considered for purposes of the Federal share
established under this subparagraph.
``(C) State role.--Participation by the Secretary
in an eligible desalination project under this
paragraph shall not occur unless--
``(i)(I) the eligible desalination project
is included in a State-approved plan; or
``(II) the participation has been requested
by the Governor of the State in which the
eligible desalination project is located;
``(ii) the State or local sponsor of the
eligible desalination project determines, and
the Secretary concurs, that--
``(I) the eligible desalination
project--
``(aa) is technically and
financially feasible;
``(bb) provides a Federal
benefit; and
``(cc) is consistent with
applicable Federal and State
laws (including regulations);
``(II) sufficient non-Federal
funding is available to complete the
eligible desalination project; and
``(III) the non-Federal project
sponsor is financially capable of
funding the non-Federal share of the
project costs; and
``(iii) the Secretary submits to the
authorizing committees of Congress and makes
publicly available on the internet a written
notification of the determinations under clause
(ii) by not later than 30 days after the date
of the determinations.
``(D) Environmental laws.--To be eligible to
receive a grant under this subsection, a desalination
project shall comply with--
``(i) applicable Federal environmental
laws, including the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.);
and
``(ii) applicable State environmental laws.
``(E) Information.--In participating in an eligible
desalination project under this subsection, the
Secretary--
``(i) may rely on reports prepared by the
sponsor of the eligible desalination project,
including feasibility or equivalent studies,
environmental analyses, and other pertinent
reports and analyses; but
``(ii) shall retain responsibility for
making the independent determinations described
in subparagraph (C).
``(F) Funding.--
``(i) Authorization of appropriations.--In
addition to amounts made available under
section 40901(5) of the Infrastructure
Investment and Jobs Act (43 U.S.C. 3201(5)),
there is authorized to be appropriated to carry
out this paragraph $150,000,000 for the period
of fiscal years 2024 through 2028, of which not
less than $10,000,000 shall be made available
during the period for rural desalination
projects.
``(ii) Funding opportunity announcement.--
The Commissioner of Reclamation shall release a
funding opportunity announcement for a grant
program under this paragraph by not later than
75 days after the date of enactment of an Act
that provides funding for the program.''.
(b) Prioritization of Projects.--Section 4 of the Water
Desalination Act of 1996 (42 U.S.C. 10301 note; Public Law 104-298) is
amended by striking subsection (c) and inserting the following:
``(c) Prioritization.--In carrying out demonstration and
development activities under this section, the Secretary shall
prioritize projects--
``(1) for the benefit of drought-stricken States and
communities;
``(2) for the benefit of States that have authorized
funding for research and development of desalination
technologies and projects;
``(3) that demonstrably improve self-reliance on local or
regional water supplies in the case of any project sponsors
that rely on imported water supplies that have an impact on
species listed under the Endangered Species Act of 1973 (16
U.S.C. 1531 et seq.);
``(4) that demonstrably leverage the experience of or
partner with--
``(A) international entities with considerable
expertise in desalination, such as Israel; or
``(B) nonprofit water research foundations or
institutions with expertise in technology innovation to
advance sustainable desalination processes or brine
management;
``(5) located in a region that--
``(A) is impacted by salinity or brackish
groundwater; and
``(B) has agricultural production of national
importance;
``(6) that support regional stakeholder-based planning and
implementation efforts to manage brine and salinity for
sustainability and improvement of groundwater quality within an
approved basin plan;
``(7) that maximize the use of renewable energy to power
desalination facilities;
``(8) that maximize energy efficiency so that the lifecycle
energy demands of desalination are minimized;
``(9) located in a region that has employed strategies to
increase water conservation and the capture and recycling of
wastewater and stormwater; and
``(10) that, in the case of ocean desalination facilities--
``(A)(i) use a subsurface intake; or
``(ii) if a subsurface intake is not feasible, use
an intake that uses the best available site, design,
technology, and mitigation measures to minimize the
mortality of all forms of marine life and impacts to
coastal-dependent resources;
``(B) are sited and designed to ensure that the
disposal of wastewater (including brine from the
desalination process)--
``(i) is not discharged in a manner that
increases salinity levels in Federal or State
marine protected areas; and
``(ii) achieves ambient salinity levels
within a reasonable distance from the discharge
point;
``(C) are sited, designed, and operated in a manner
that maintains indigenous marine life and a healthy and
diverse marine community within a reasonable distance
from the discharge point;
``(D) do not cause significant unmitigated harm to
aquatic life; and
``(E) include a construction and operation plan
designed to minimize loss of coastal habitat as well as
aesthetic, noise, and air quality impacts.''.
(c) Priority Scoring System.--As soon as practicable after the date
of enactment of this Act, for purposes of making recommendations to
Congress for projects to be carried out under section 4 of the Water
Desalination Act of 1996 (42 U.S.C. 10301 note; Public Law 104-298),
the Commissioner of Reclamation shall establish a priority scoring
system that provides for the assignment of priority scores for the
projects based on the prioritization criteria established under
subsection (c) of that section.
(d) Other Requirements.--Non-Federal entities that receive Federal
assistance for projects or facilities authorized under this Act shall
implement the projects or facilities consistent with the standards for
activities assisted under section 401 of the Safe Drinking Water Act
Amendments of 1996 (42 U.S.C. 300j-3c).
(e) Research Authority.--Section 8(a) of the Water Desalination Act
of 1996 (42 U.S.C. 10301 note; Public Law 104-298) is amended--
(1) in the first sentence, by striking ``2021'' and
inserting ``2026''; and
(2) in the second sentence, by striking ``$1,000,000'' and
inserting ``$3,000,000''.
SEC. 105. RECLAMATION INFRASTRUCTURE FINANCE AND INNOVATION PILOT
PROGRAM.
(a) Establishment.--The Secretary shall establish and carry out a
pilot program under which the Secretary shall provide to eligible
entities described in subsection (c) loans and technical assistance in
accordance with this section to carry out eligible projects described
in subsection (b).
(b) Eligible Projects.--
(1) In general.--A project eligible to receive assistance
under the pilot program under this section is a water supply or
water conservation project that, as determined by the
Secretary--
(A) is located in--
(i) the State of Alaska;
(ii) the State of Hawaii; or
(iii) a State or territory described in the
first section of the Act of June 17, 1902 (32
Stat. 388, chapter 1093; 43 U.S.C. 391);
(B) would--
(i) contribute directly or indirectly
(including through groundwater recharge) to a
safe, adequate water supply for domestic,
agricultural, environmental, or municipal and
industrial use; or
(ii) promote water conservation or water
use efficiency; and
(C) is otherwise eligible for assistance under this
section.
(2) Projects associated with bureau of reclamation
facilities.--A project that supports an improvement to, or is
associated with, a Bureau of Reclamation facility shall be
eligible to receive assistance under the pilot program under
this section if--
(A) the project meets the criteria described in
paragraph (1);
(B) the eligible entity carrying out the project
demonstrates to the satisfaction of the Secretary that
the eligible entity is initiating and implementing the
project for non-Federal purposes;
(C) the eligible entity retains or secures, through
a long-term Federal property lease, operation and
maintenance transfer agreement that provides for self-
funding, or easement agreement with the Secretary,
substantial control over the assets, operation,
management, and maintenance of the project; and
(D) the project meets any other criteria that the
Secretary may establish.
(3) Small community projects.--For projects eligible for
assistance under this section and section 5028(a)(2)(B) of the
Water Resources Reform and Development Act of 2014 (33 U.S.C.
3907(a)(2)(B)), the Secretary may assist applicants in
combining 1 or more projects into a single application in order
to meet the minimum project cost of $5,000,000 required under
that section.
(c) Eligible Applicants.--The following entities are eligible to
receive assistance under this section:
(1) An entity described in section 5025 of the Water
Resources Reform and Development Act of 2014 (33 U.S.C. 3904).
(2) A conservancy district, Reclamation district,
irrigation district, or water district.
(3) A canal company or mutual water company.
(4) A water users' association.
(5) An agency established by an interstate compact.
(6) An agency established under State law for the joint
exercise of powers.
(7) Any other individual or entity that has the capacity to
contract with the United States under the reclamation laws.
(d) Requirements.--
(1) Project selection.--In selecting eligible projects to
receive assistance under the pilot program under this section,
the Secretary shall ensure diversity with respect to--
(A) project type; and
(B) geographical location within the States
referred to in subsection (b)(1)(A).
(2) Importation of other requirements.--The following
provisions of law shall apply to the pilot program under this
section:
(A) Sections 5022, 5024, 5027, 5028, 5029, 5030,
5031, 5032, and 5034(a) of the Water Resources Reform
and Development Act of 2014 (33 U.S.C. 3901, 3903,
3906, 3907, 3908, 3909, 3910, 3911, 3913(a)), except
that--
(i) any reference contained in those
sections to the Secretary of the Army shall be
considered to be a reference to the Secretary;
(ii) any reference contained in those
sections to an eligible project shall be
considered to be a reference to an eligible
project described in subsection (b);
(iii) paragraphs (1)(E) and (6)(B) of
subsection (a), and subsection (b)(3), of
section 5028 of that Act (33 U.S.C. 3907) shall
not apply with respect to this section; and
(iv) subsections (e) and (f) of section
5030 of that Act (33 U.S.C. 3909) shall not
apply with respect to this section.
(B) The agreement between the Administrator of the
Environmental Protection Agency and the Commissioner of
Reclamation required under section 4301 of the
America's Water Infrastructure Act of 2018 (33 U.S.C.
3909 note; Public Law 115-270), pursuant to which the
Administrator shall retain responsibility for
administering any loans under this section.
(3) Environmental laws.--No project shall receive funding
under this section unless the project complies with--
(A) applicable Federal environmental laws,
including the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.); and
(B) applicable State environmental laws.
(e) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
the Secretary to carry out the pilot program under this section
$150,000,000 for the period of fiscal years 2024 through 2028,
to remain available until expended.
(2) Administrative costs.--Of the funds made available
pursuant to paragraph (1), the Secretary may use for
administrative costs of carrying out the pilot program under
this section (including for the provision of technical
assistance to project sponsors pursuant to paragraph (3), to
obtain any necessary approval, and for transfer to the
Administrator of the Environmental Protection Agency to provide
assistance in administering and servicing Federal credit
instruments under the pilot program) not more than $5,000,000
for each applicable fiscal year.
(3) Small community projects.--
(A) In general.--Subject to subsection (b), the
Commissioner may use the funds made available under
paragraph (2) to provide assistance, including
assistance to pay the costs of acquiring the rating
opinion letters under paragraph (1)(D) of section
5028(a) of the Water Resources Reform and Development
Act of 2014 (33 U.S.C. 3907(a)), to assist project
sponsors in obtaining the necessary approvals for small
community projects that are eligible for assistance
under paragraph (2)(B) of that section or subsection
(b)(3).
(B) Limitation.--Assistance provided to a project
sponsor under subparagraph (A) may not exceed an amount
equal to 75 percent of the total administrative costs
incurred by the project sponsor in securing financial
assistance under this section.
SEC. 106. DRINKING WATER ASSISTANCE FOR DISADVANTAGED COMMUNITIES.
(a) In General.--The Secretary (acting through the Commissioner of
Reclamation) may provide grants or enter into contracts or financial
assistance agreements that provide not more than 100 percent of the
cost of the planning, design, or construction of water projects or
facilities or features of water projects, the primary purpose of which
is to improve the domestic water supplies of communities or households
that do not have reliable access to domestic water supplies in
sufficient quantities or of sufficient quality in a State or territory
described in the first section of the Act of June 17, 1902 (32 Stat.
388, chapter 1093; 43 U.S.C. 391).
(b) Authorization of Appropriations.--
(1) Amount.--There is authorized to be appropriated to the
Secretary to carry out this section $100,000,000 for the period
of fiscal years 2024 through 2028.
(2) Multiple benefit projects.--The Secretary shall use all
or a portion of the funds made available under subsection (a)
to incorporate into multiple benefit projects features or
facilities to assist in providing domestic water supplies to
disadvantaged communities.
SEC. 107. EXTRAORDINARY OPERATION AND MAINTENANCE WORK; PROJECT
MODIFICATION.
(a) Reimbursement of Costs.--Section 9603(b) of the Omnibus Public
Land Management Act of 2009 (43 U.S.C. 510b(b)) is amended--
(1) in paragraph (1), by striking ``reimbursable purposes''
and inserting ``reimbursable and nonreimbursable purposes of
the project and costs allocated to a reimbursable purpose'';
(2) in paragraph (2), by striking ``costs'' and inserting
``costs, including reimbursable and nonreimbursable costs'';
and
(3) by adding at the end the following:
``(4) Determination of reimbursable costs.--Any costs
expended under paragraph (1) or advanced under paragraph (2)
that are allocated to existing nonreimbursable purposes of the
project, including costs to restore or add a public benefit (as
defined in section 2 of the Support To Rehydrate the
Environment, Agriculture, and Municipalities Act), shall be
considered to be nonreimbursable costs for purposes of this
subsection.''.
(b) Authorization To Modify Projects To Increase Public Benefits
and Other Project Benefits.--Section 9603 of the Omnibus Public Land
Management Act of 2009 (43 U.S.C. 510b) is amended by adding at the end
the following:
``(e) Authorization To Modify Projects To Increase Public Benefits
and Other Project Benefits.--
``(1) Definitions.--In this subsection:
``(A) Adverse impact.--The term `adverse impact'
means, with respect to a project modification, a
reduction in water quantity or quality or a change in
the timing of water deliveries available to a project
beneficiary from the modified project as compared to
the water quantity or quality or timing of water
deliveries from--
``(i) the project with the original
capacity restored, if the extraordinary
operation and maintenance work under this
section is intended to restore lost project
capacity;
``(ii) the project prior to undertaking the
planning and design, if the extraordinary
operation and maintenance work under this
section is for any purpose other than to
restore lost project capacity; or
``(iii) project operations of the modified
project without an increase in benefits for a
new project beneficiary under paragraph (2)(E).
``(B) New benefit.--The term `new benefit' means
the increase in benefits of the modified project
compared to the benefits provided by--
``(i) the project with the original
capacity restored, if the extraordinary
operation and maintenance work under this
section is intended to restore lost project
capacity; or
``(ii) the project prior to undertaking the
planning and design, if the extraordinary
operation and maintenance work under this
section is for any purpose other than to
restore lost project capacity.
``(C) Project beneficiary.--The term `project
beneficiary' means any entity that has a repayment,
long-term water service, or other form of long-term
contract or agreement executed pursuant to the Act of
June 17, 1902 (32 Stat. 388, chapter 1093), and Acts
supplemental to and amendatory of that Act (43 U.S.C.
371 et seq.), for water service from the project.
``(D) Public benefit.--The term `public benefit'
has the meaning given the term in section 2 of the
Support To Rehydrate the Environment, Agriculture, and
Municipalities Act.
``(2) Authorization; requirements.--
``(A) In general.--In a case in which a project is
anticipated to require extraordinary operation and
maintenance work during the 10-year period beginning on
January 1, 2023, the Secretary, in consultation with
any transferred works operating entity and any project
beneficiaries, may develop and carry out a proposal to
modify project features to increase public benefits and
other project benefits, including carrying out a
feasibility study and conducting any applicable
environmental analysis required for the proposal,
subject to subparagraphs (B) through (F).
``(B) Maximum cost.--The maximum amount that may be
added to the original project cost as a result of a
project modification under subparagraph (A) shall not
exceed--
``(i) an amount equal to 25 percent of the
original cost of the project, in the case of a
project for which the original cost of the
project exceeds $100,000,000; or
``(ii) $25,000,000, in the case of a
project for which the original cost of the
project is not more than $100,000,000.
``(C) Public benefits.--In the case of a project
modification under subparagraph (A), not less than 50
percent of the new benefits provided by the
modification of the project shall be public benefits.
``(D) Written consent required.--A project
modification under subparagraph (A) shall not be
constructed until the date on which the Secretary has
obtained the written consent of--
``(i) the transferred works operating
entity, if applicable; and
``(ii) consistent with paragraph (3), any
project beneficiary that would experience an
adverse impact as a result of the modification
of the project.
``(E) Adverse impact.--Any benefits that accrue to
a new project beneficiary resulting from operations of
the modified project shall not be increased without the
consent of existing project beneficiaries that would
experience an adverse impact as a result of the
modification of the project.
``(F) Reimbursement of costs.--The costs of
planning, design, and environmental compliance for a
project modification under subparagraph (A) shall be
reimbursed in accordance with subsection (b), except
that any of the costs that would otherwise be allocated
to a project beneficiary shall be considered
nonreimbursable if the project beneficiary does not
receive any increase in long-term average annual water
deliveries as a result of the modification.
``(3) Procedure for obtaining consent and time
limitation.--
``(A) Initial determination.--The Secretary shall
initially determine whether the consent of a project
beneficiary is required prior to construction under
paragraph (2)(D) based on whether the modification or
subsequent operations of the modified project would
have any adverse impacts on a project beneficiary.
``(B) Written request for consent.--The Secretary
shall provide to the transferred works operating
entity, if any, and any project beneficiaries, in
writing--
``(i) a description of the proposed
modification and subsequent operations of the
project; and
``(ii)(I) a request for consent under
paragraph (2)(D); or
``(II)(aa) an explanation that the
Secretary has determined that no consent is
required under paragraph (2)(D); and
``(bb) a statement that if the project
beneficiary believes that the consent of the
project beneficiary is required, the project
beneficiary shall send to the Secretary a reply
not later than 30 days after the date of
receipt of the notice that includes an
explanation of the reasons that the project
beneficiary would experience adverse impacts as
a result of the project modification.
``(C) Final determination.--
``(i) Written response.--The Secretary
shall respond in writing to any reply from a
project beneficiary under subparagraph
(B)(ii)(II)(bb) stating whether or not the
Secretary determines that the project
beneficiary would experience adverse impacts as
a result of the project modification.
``(ii) Final agency action.--A written
determination by the Secretary under clause (i)
shall be considered to be a final agency action
for purposes of section 704 of title 5, United
States Code.
``(iii) Written request.--If the Secretary
determines under clause (i) that the project
beneficiary would experience adverse impacts as
a result of the project modification, the
Secretary shall send to the project beneficiary
a written request for consent in accordance
with subparagraph (B)(ii).
``(D) Time period for consent.--
``(i) In general.--If written consent
required under paragraph (2)(D) is not obtained
by the date that is 1 year after the date on
which written consent is requested under
subparagraph (B)(ii), the Secretary or the
transferred works operating entity, as
applicable, shall proceed with extraordinary
operation and maintenance work of the project
without the modification, unless the Secretary
extends the time for consent under clause (ii).
``(ii) Extension.--At the discretion of the
Secretary, the Secretary may elect to extend
the time for obtaining consent under paragraph
(2)(D) by 1 year.
``(4) Reallocation of costs based on project changes and
increased public benefits.--The Secretary shall allocate costs,
including capital repayment costs and operation and maintenance
costs, for a project modification under paragraph (2), to
provide that--
``(A) the public benefits provided by the modified
project, including associated annual operation and
maintenance costs, shall be nonreimbursable; and
``(B) the cost allocation of reimbursable costs to
each project beneficiary reflects any changes in the
benefits that the modified project is providing to the
project beneficiary.
``(5) Incentive for benefitting entities to participate in
projects with increased public benefits.--The total amount of
reimbursable capital costs, as determined under paragraph (4),
for a project modification that would increase public benefits
without increasing municipal, industrial, or irrigation
benefits of a project, shall be reduced by 15 percent, with
each project beneficiary to be responsible for 85 percent of
the reimbursable costs that would otherwise be allocated to the
project beneficiary.
``(6) Reimbursable funds.--All reimbursable costs under
this subsection shall be repaid in accordance with subsection
(b).''.
SEC. 108. USE OF REVENUE TO IMPROVE DROUGHT RESILIENCE OR DAM SAFETY.
(a) Definitions.--In this section:
(1) Dam safety investment.--The term ``dam safety
investment'' means a project to satisfy dam safety standards--
(A) under the Federal Guidelines for Dam Safety
issued by the Federal Emergency Management Agency or
the Interagency Committee on Dam Safety;
(B) under the Bureau of Reclamation Dam Safety
Program, including repayment of an obligation for a
corrective action taken pursuant to that program; or
(C) required by the State in which a Bureau of
Reclamation project or facility is located.
(2) Drought resilience investment.--The term ``drought
resilience investment'' means--
(A) an improvement or addition to an eligible
facility that will increase drought resilience in a
Reclamation State; or
(B) annual payments on repayment obligations
incurred under section 9603 of the Omnibus Public Land
Management Act of 2009 (43 U.S.C. 510b).
(3) Eligible facility.--The term ``eligible facility''
means--
(A) a project or facility owned by the Bureau of
Reclamation; and
(B) a non-Federal facility that stores, transports,
or delivers water to or from a Bureau of Reclamation
project or facility.
(4) Eligible temporary transfer.--The term ``eligible
temporary transfer'' means the temporary and voluntary selling,
leasing, or exchanging of water or water rights among
individuals or agencies that is allowable under the reclamation
laws and the water law of the applicable State.
(5) Transferor.--The term ``transferor'' means the holder
of a water service, transferred works, water repayment, or
other contract that entitles the holder to water from a Bureau
of Reclamation project or facility that undertakes an eligible
temporary transfer.
(b) Use of Revenue for Drought Resilience Investments or Dam Safety
Investments.--
(1) In general.--Notwithstanding the Act of February 25,
1920 (41 Stat. 451, chapter 86; 43 U.S.C. 521), or subsection J
of section 4 of the Act of December 5, 1924 (43 Stat. 703,
chapter 4; 43 U.S.C. 526), all amounts derived from an eligible
temporary transfer that would otherwise be deposited in the
reclamation fund established by the first section of the Act of
June 17, 1902 (32 Stat. 388, chapter 1093; 43 U.S.C. 391),
shall remain available to the transferor.
(2) Use of funds.--Any funds retained by a transferor under
paragraph (1) may be--
(A) used for a drought resilience investment or dam
safety investment; or
(B) placed in the reserve account of the
transferor, to be used for future drought resilience
investments or dam safety investments, subject to
paragraph (3).
(3) Transfer of unused funds to reclamation fund.--Any
funds placed in the reserve account of the transferor pursuant
to paragraph (2)(B) that are not used for drought resilience
investments or dam safety investments by the date that is 10
years after the date of the placement shall be transferred to
the reclamation fund established by the first section of the
Act of June 17, 1902 (32 Stat. 388, chapter 1093).
(4) Reporting.--The transferor shall report to the
Commissioner of Reclamation on the use of any uses of funds
derived from an eligible temporary transfer.
(5) Effect of section.--
(A) In general.--Nothing in this section--
(i) affects any other authority of the
Secretary to use amounts derived from revenues
from a Bureau of Reclamation project; or
(ii) creates, impairs, alters, or
supersedes a State water right.
(B) Applicable law.--Any eligible temporary
transfer shall comply with all applicable--
(i) State water laws;
(ii) Federal laws and policies; and
(iii) interstate water compacts.
(c) Reclamation Laws.--This section supplements and amends the Act
of June 17, 1902 (32 Stat. 388, chapter 1093), and Acts supplemental to
and amendatory of that Act (43 U.S.C. 371 et seq.).
TITLE II--IMPROVED TECHNOLOGY AND DATA
SEC. 201. REAUTHORIZATION OF THE TRANSBOUNDARY AQUIFER ASSESSMENT
PROGRAM.
(a) Designation of Priority Transboundary Aquifers.--Section
4(c)(2) of the United States-Mexico Transboundary Aquifer Assessment
Act (42 U.S.C. 1962 note; Public Law 109-448) is amended by striking
``New Mexico or Texas'' and inserting ``New Mexico, Texas, or Arizona
(other than an aquifer underlying Arizona and Sonora, Mexico, that is
partially within the Yuma groundwater basin designated by the order of
the Director of the Arizona Department of Water Resources dated June
21, 1984)''.
(b) Reauthorization.--
(1) Authorization of appropriations.--Section 8(a) of the
United States-Mexico Transboundary Aquifer Assessment Act (42
U.S.C. 1962 note; Public Law 109-448) is amended by striking
``$50,000,000 for the period of fiscal years 2007 through
2016'' and inserting ``$50,000,000 for the period of fiscal
years 2024 through 2028''.
(2) Sunset of authority.--Section 9 of the United States-
Mexico Transboundary Aquifer Assessment Act (42 U.S.C. 1962
note; Public Law 109-448) is amended by striking ``enactment of
this Act'' and inserting ``enactment of the Support To
Rehydrate the Environment, Agriculture, and Municipalities
Act''.
TITLE III--ECOSYSTEM RESTORATION AND PROTECTION
SEC. 301. ECOSYSTEM RESTORATION.
(a) Definitions.--Section 40907 of the Infrastructure Investment
and Jobs Act (43 U.S.C. 3207) is amended by striking subsection (a) and
inserting the following:
``(a) Definitions.--In this section:
``(1) Committee.--The term `Committee' means the Integrated
Water Management Federal Leadership Committee established under
subsection (f)(1).
``(2) Eligible applicant.--The term `eligible applicant'
means--
``(A) a State;
``(B) a Tribal or local government;
``(C) an organization with power, water delivery,
or water storage authority;
``(D) a regional authority; or
``(E) a nonprofit conservation organization.
``(3) Project.--The term `project' includes--
``(A) planning, design, permitting, and
preconstruction activities;
``(B) construction, construction management,
replacement, and other similar activities;
``(C) management activities, including the
acquisition of an interest in land or water, including
the acquisition of a conservation easement;
``(D) research, development, demonstration
(including the demonstration of the scalability of a
project or activity), and monitoring; and
``(E) project administration activities, including
the payment of fees associated with implementing the
project or activity.''.
(b) Requirements.--Section 40907(c)(1) of the Infrastructure
Investment and Jobs Act (43 U.S.C. 3207(c)(1)) is amended by striking
subparagraph (B) and inserting the following:
``(B) may not provide a grant to carry out a
habitat restoration project the purpose of which is to
meet existing environmental mitigation or compliance
obligations that are express requirements of a permit
or order issued under Federal or State law, unless such
requirements expressly contemplate reliance on Federal
funding in performance of the requirements.''.
(c) Other Amendments.--Section 40907 of the Infrastructure
Investment and Jobs Act (43 U.S.C. 3207) is amended by adding at the
end the following:
``(e) Other Actions.--
``(1) In general.--In addition to other activities
authorized under this section, the Secretary may undertake
actions and enter into contracts and agreements to implement
projects that implement watershed health, including projects
described in subsection (b)(3), that--
``(A) accomplish 1 or more of the purposes
described in subsection (b); and
``(B) are consistent with the requirements
described in subsection (c).
``(2) Reimbursability.--The expenditures of the Secretary
under this subsection and subsection (f) shall be
nonreimbursable.
``(f) `Leave Behind' Water Transfers.--
``(1) Purpose.--The purpose of this subsection is to
authorize the Secretary to address habitat needs and promote
collaborative, multi-benefit water management through water
sharing arrangements that incorporate habitat and other public
benefits into voluntary crop idling water transfers.
``(2) Authorization of acquisition.--In approving a water
transfer within a Federal reclamation project that results in
voluntary fallowing of crop land in the Sacramento Valley or
Sacramento-San Joaquin River Delta, the Secretary may acquire a
portion of the volume of water made available for transfer if
the Secretary determines that crop land idled because of the
transfer would create temporary wildlife habitat with the
application of the acquired water, subject to paragraph (3).
``(3) Requirements.--In acquiring water pursuant to
paragraph (2), the Secretary shall--
``(A) develop implementation guidelines in
consultation with relevant stakeholders;
``(B) only acquire a portion of the volume of water
made available for transfer if the transferor and the
transferee agree to the acquisition;
``(C) negotiate a mutually agreeable volume of
water for acquisition with the transferor and the
transferee;
``(D) pay not more per volume of water than the
price negotiated between the transferor and transferee
for the water to be transferred;
``(E) compensate the transferor for any reasonable
incremental costs associated with managing the water
acquired to create temporary wildlife habitat; and
``(F) apply the acquired water to idled crop land
to create temporary wildlife habitat.
``(4) Prioritization.--The Secretary shall give priority to
approving and facilitating transfers under this subsection that
incorporate voluntary habitat and other public benefits that
exceed the benefits provided under regulatory requirements.
``(5) Treatment.--Water acquired by the Secretary under
paragraph (2) shall be in addition to, and not a substitute
for, actions required to meet obligations under existing law,
including--
``(A) the Central Valley Project Improvement Act
(title XXXIV of Public Law 102-575; 106 Stat. 4706);
and
``(B) the Endangered Species Act of 1973 (16 U.S.C.
1531 et seq.).
``(6) Reporting.--The Secretary shall annually submit to
the authorizing committees of Congress (as defined in section 2
of the Support To Rehydrate the Environment, Agriculture, and
Municipalities Act) a report that describes, for the period
covered by the report--
``(A) the volume of water acquired under paragraph
(2); and
``(B) the extent and duration of temporary wildlife
habitat created under that paragraph.
``(g) Integrated Water Management Federal Leadership Committee for
Assisting Projects at the Request of a Sponsor.--
``(1) Establishment.--Not later than 180 days after the
date on which an eligible entity or qualified partner
sponsoring a habitat restoration project that receives a grant
under this section submits to the Secretary a request for the
establishment of the Integrated Water Management Federal
Leadership Committee, the Secretary shall establish the
Integrated Water Management Federal Leadership Committee.
``(2) Chairperson.--The Assistant Secretary for Water and
Science of the Department of the Interior shall--
``(A) serve as the chairperson of the Committee;
and
``(B) coordinate the activities of, and
communication among, members of the Committee.
``(3) Membership.--The Committee shall include
representatives of Federal agencies with responsibility for
water and natural resource issues, including representatives
of--
``(A) the Bureau of Reclamation;
``(B) the United States Fish and Wildlife Service;
``(C) the National Marine Fisheries Service;
``(D) the Corps of Engineers;
``(E) the Environmental Protection Agency; and
``(F) the Department of Agriculture.
``(4) Duties and responsibilities.--The members of the
Committee shall establish the duties and responsibilities of
the Committee, including--
``(A) facilitating communication and collaboration
among Federal agencies to support and advance any
projects for which an eligible entity or qualified
partner requests the assistance of the Committee;
``(B) ensuring the effective coordination among
relevant Federal agencies and departments to ensure
accelerated implementation of any projects for which an
eligible entity or qualified partner requests the
assistance of the Committee; and
``(C) making policy and budgetary recommendations,
if determined to be appropriate by the Committee, to
support the implementation of projects.
``(5) Project assistance.--On request of an eligible entity
or a qualified partner for a habitat restoration project, the
Committee shall assist that project with permit processing and
interagency coordination.
``(h) Authorization of Appropriations.--In addition to amounts made
available under section 40901(11), there is authorized to be
appropriated to the Secretary $250,000,000 to carry out this section
for the period of fiscal years 2024 through 2028, of which--
``(1) $150,000,000 shall be made available for the
competitive grant program described in subsection (b); and
``(2) $100,000,000 shall be made available for other
actions described in subsection (e) and to carry out subsection
(f).
``(i) Applicable Law.--Nothing in this section affects or
modifies--
``(1) the obligations of the Secretary under--
``(A) the reclamation laws; or
``(B) Federal environmental laws, including--
``(i) the Central Valley Project
Improvement Act (title XXXIV of Public Law 102-
575; 106 Stat. 4706); and
``(ii) the Endangered Species Act of 1973
(16 U.S.C. 1531 et seq.); or
``(2) the obligations of a non-Federal party to comply with
applicable Federal and State laws.''.
SEC. 302. PERFORMANCE-BASED RESTORATION AUTHORITY.
(a) Definitions.--In this section:
(1) Eligible project.--The term ``eligible project'' means
a habitat or ecosystem restoration, mitigation, or enhancement
project or activity authorized individually or through an
existing Federal program.
(2) Eligible restoration provider.--The term ``eligible
restoration provider'' means a non-Federal for-profit or
nonprofit organization, company, or corporation, or a State,
Tribal, or local government, that is bonded, insured, and
experienced in financing and completing successful habitat and
restoration, mitigation, and enhancement activities.
(3) Performance-based.--The term ``performance-based''
means, with respect to a contract, grant agreement, cooperative
agreement, or fixed amount award, a pay-for-performance, pay-
for-success, pay-for-results, or similar model by which the
restoration provider agrees to finance and complete habitat or
ecosystem restoration, mitigation, or enhancement activities,
with payment to the restoration provider linked to delivery of
verifiable and successful ecological performance, based on
metrics and the timeframe established in advance by the
Secretary.
(4) Restoration provider.--The term ``restoration
provider'' means a non-Federal organization that performs
restoration services contracted for, agreed to, or awarded
under a contract or agreement entered into under subsection
(b)(1).
(b) Authorization.--
(1) In general.--Subject to subsection (j), in implementing
existing authorities under Federal law related to habitat and
ecosystem restoration, mitigation, or enhancement, the
Secretary may enter into performance-based contracts, grant
agreements, and cooperative agreements, including providing
funding through fixed amount awards, with eligible restoration
providers for the conduct of eligible projects for which
ecological targets and outcomes are--
(A) clearly defined;
(B) agreed to in advance; and
(C) capable of being successfully achieved.
(2) Performance-based contracts.--For purposes of paragraph
(1), the Secretary may enter into performance-based contracts
with eligible restoration providers experienced in financing
and completing successful ecological habitat and restoration,
mitigation, and enhancement activities.
(3) Grants and awards.--For purposes of paragraph (1), the
Secretary--
(A) may provide funding through grant agreements
and cooperative agreements, including fixed amount
awards, for eligible projects; and
(B) shall allow for the use of performance-based
tools in the agreements and awards described in
subparagraph (A).
(4) Pass-through grants and awards.--For purposes of
paragraph (1), the Secretary--
(A) may allow funding provided to States, local
governments, Indian Tribes, and nonprofit organizations
to be passed through to third-party eligible
restoration providers under a contract or agreement
entered into under that paragraph; and
(B) shall allow for the use of performance-based
tools in grant and cooperative agreements entered into
with eligible restoration providers under that
paragraph.
(5) Multi-year agreements.--The Secretary may use
performance-based contracts, grant agreements, and cooperative
agreements, including fixed amount awards, issued under this
section for multi-year agreements, including capacity for
multi-year payment schedules for professional services, subject
to appropriations prior to obligation.
(c) Guidelines.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall develop programmatic
guidelines for the use of performance-based contracts, grant
agreements, and cooperative agreements for eligible projects
authorized under subsection (b)(1).
(2) Consultation required.--
(A) In general.--In developing the guidelines under
paragraph (1), the Secretary shall consult with
external organizations and other appropriate entities
with experience in performance-based contracts,
agreements, or awards, consistent with sections 6302
through 6305 of title 31, United States Code.
(B) Limitation.--Consultation with the
organizations and entities described in subparagraph
(A) shall not constitute or necessitate establishment
of an advisory committee under the Federal Advisory
Committee Act (5 U.S.C. App.).
(3) Requirements.--At a minimum, guidelines developed under
paragraph (1) shall include guidance on--
(A) appropriate proposal and evaluation criteria
for eligible projects;
(B) eligibility criteria for restoration providers;
(C) criteria for defining achievable ecological
outcomes; and
(D) determination of restoration provider financial
assurances sufficient to ensure ecological outcomes
will be successfully achieved.
(d) Identification of Eligible Projects.--The Secretary shall--
(1) identify eligible projects for the use of contracts and
agreements under subsection (b)(1); and
(2) issue a request for proposals from eligible restoration
providers to meet the ecological requirements of habitat and
ecosystem restoration, mitigation, and enhancement for the
eligible projects identified under paragraph (1).
(e) Certification.--After the date on which an eligible project
identified under subsection (d)(1) is completed, the Secretary shall
certify that the work on the eligible project was completed in
accordance with the ecological requirements and outcomes defined in
advance in the applicable contract or agreement.
(f) Technical Assistance.--At the request of an eligible
restoration provider entering into a contract or agreement with the
Secretary under subsection (b)(1), the Secretary may provide to the
eligible restoration provider technical assistance with respect to--
(1) conducting a study, engineering activity, or design
activity related to an eligible project carried out by the
eligible restoration provider under this section; and
(2) obtaining permits necessary for the eligible project.
(g) Effect.--Nothing in this section authorizes the Secretary to
waive--
(1) the obligations of the Secretary under--
(A) the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.);
(B) the Endangered Species Act of 1973 (16 U.S.C.
1531 et seq.);
(C) the Federal Water Pollution Control Act (33
U.S.C. 1251 et seq.); or
(D) any other provision of Federal environmental
law; or
(2) the obligations of a non-Federal party to comply with
applicable Federal and State laws.
(h) Non-Federal Funding.--The restoration provider may finance the
applicable non-Federal share of an eligible project carried out under
the authority provided under subsection (b)(1), on the condition that
the non-Federal cost-share responsibility remains with the non-Federal
party.
(i) Cost Share.--Nothing in this section affects a cost-sharing
requirement under Federal law that is applicable to an eligible project
carried out under the authority provided under subsection (b)(1).
(j) Mitigation.--Nothing in this section authorizes Federal funding
to meet existing environmental mitigation or compliance obligations
that are express requirements of a permit or order issued under Federal
or State law, unless the requirements expressly contemplate reliance on
Federal funding for the performance of the requirements.
(k) Report.--
(1) In general.--Not later than 3 years after the date of
enactment of this Act, the Secretary shall--
(A) submit to the authorizing committees of
Congress and make publicly available a report
describing the results of activities carried out under
the authority established under subsection (b)(1),
including any recommendations of the Secretary on
whether the authority or any component of the
authorized activities should be implemented on a
national basis; and
(B) except as provided in subsection (g), identify
any procedural requirements that impede the use of
performance-based contracts, grants, and cooperative
agreements, including fixed amount awards, for the
development and completion of eligible projects.
(2) Addressing impediments.--Not later than 1 year after
the date on which the Secretary identifies impediments, if any,
under paragraph (1)(B), the Secretary shall develop and
implement programmatic procedures and approaches, including
recommendations to the authorizing committees of Congress on
legislation, that would--
(A) to the extent practicable, address the
impediments; and
(B) protect the public interest and any public
investment in eligible projects carried out under this
section.
TITLE IV--MISCELLANEOUS
SEC. 401. MODIFICATIONS TO DROUGHT PROGRAM UNDER THE RECLAMATION STATES
EMERGENCY DROUGHT RELIEF ACT OF 1991.
(a) Assistance During Drought; Water Purchases.--Section 101 of the
Reclamation States Emergency Drought Relief Act of 1991 (43 U.S.C.
2211) is amended--
(1) in subsection (a)--
(A) in the first sentence, by striking
``Consistent'' and inserting the following:
``(1) In general.--Subject to paragraph (2) and
consistent'';
(B) in paragraph (1) (as so designated), in the
second sentence, by striking ``Any construction
activities'' and inserting the following:
``(2) Limitation.--Any construction activities''; and
(C) in paragraph (2) (as so designated), by
striking ``except that'' and all that follows through
the period at the end and inserting the following:
``except that the following may be permanent
facilities:
``(A) A construction project--
``(i) for which Federal expenditures are
not more than $30,000,000; and
``(ii) that is supported by--
``(I) the Governor or the relevant
agency head of the affected State; or
``(II) if the construction project
is on a reservation, by the affected
Indian Tribe.
``(B) A well drilled to minimize losses and damages
from drought conditions that--
``(i) aligns with applicable local, State,
or regional groundwater sustainability goals;
or
``(ii) supports drinking water supplies for
a disadvantaged community (as defined in
section 2 of the Support To Rehydrate the
Environment, Agriculture, and Municipalities
Act) or Indian Tribe.''; and
(2) by adding at the end the following:
``(e) Funding for Fee-Based Environmental Programs.--
``(1) In general.--For any fiscal year for which, due to a
drought, as determined by the Secretary, there are insufficient
funds to carry out any environmental program that is funded in
whole or in part by fees based on the water volume of water
delivered by a Federal reclamation project (including fees
collected under section 3407(c) of the Reclamation Projects
Authorization and Adjustment Act of 1992 (Public Law 102-575;
106 Stat. 4726)), the Secretary may use other unobligated
amounts made available to the Secretary to carry out the
environmental program for the fiscal year.
``(2) Nonreimbursable funds.--Notwithstanding any other
provision of law, amounts made available under paragraph (1)
shall be nonreimbursable.
``(3) Effect.--Nothing in this subsection affects--
``(A) the authority of the Secretary to address
insufficient funding for an environmental program
described in paragraph (1) that is not a result of a
drought; or
``(B) the obligations of the Secretary to the
environment under Federal law.''.
(b) Applicable Period of Drought Program.--Section 104 of the
Reclamation States Emergency Drought Relief Act of 1991 (43 U.S.C.
2214) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) In General.--The programs and authorities established under
this title shall not become operative in any Reclamation State or in
the State of Hawaii until the date on which--
``(1)(A) the Governor of the affected State, and the
governing body of the affected Indian Tribe with respect to a
reservation, has made a request for temporary drought
assistance; and
``(B) the Secretary has determined that the temporary
assistance is merited;
``(2) a drought emergency has been declared for a State or
portion of a State by the Governor of each affected State; or
``(3) a drought contingency plan is approved in accordance
with title II.''; and
(2) in subsection (c), by striking ``2021'' and inserting
``2031''.
(c) Municipal Wells; Funding Under the Infrastructure Investment
and Jobs Act.--Section 9504(a)(3) of the Omnibus Public Land Management
Act of 2009 (42 U.S.C. 10364(a)(3)) is amended by adding at the end the
following:
``(G) Municipal wells.--A grant or agreement
entered into by the Secretary with any eligible
applicant under paragraph (1) to drill a groundwater
well for municipal supply to minimize losses and
damages from drought conditions, including construction
activities to transport or otherwise convey groundwater
pumped from the well, shall not contribute to an
increase in the net water use of the eligible applicant
beyond the period of any drought emergency, except if--
``(i) the groundwater well is for the
purpose of supplying drinking water for a
disadvantaged community (as defined in section
2 of the Support To Rehydrate the Environment,
Agriculture, and Municipalities Act) or Indian
Tribe; or
``(ii) the new groundwater use is partially
offset by aquatic habitat enhancement--
``(I) during the drought period; or
``(II) over the long-term,
including a future drought period.
``(H) Funding under the infrastructure investment
and jobs act.--For purposes of amounts made available
to carry out this section under paragraph (7) of
section 40901 of the Infrastructure Investment and Jobs
Act (43 U.S.C. 3201) for each of fiscal years 2025 and
2026, projects or activities eligible for funding under
that paragraph may include a combination of proposed
planning activities, actions, or projects within a
basin, with the maximum amount of the combined
activities not to exceed the maximum amount established
under subparagraph (E)(iii).''.
SEC. 402. CLARIFICATION OF AUTHORITY TO USE CORONAVIRUS FISCAL RECOVERY
FUNDS TO MEET A NON-FEDERAL MATCHING REQUIREMENT FOR
AUTHORIZED WATER PROJECTS.
(a) Coronavirus State Fiscal Recovery Fund.--Section 602(c)(4) of
the Social Security Act (42 U.S.C. 802(c)(4)) is amended--
(1) in the paragraph heading, by striking ``bureau of
reclamation''; and
(2) by striking ``an authorized Bureau of Reclamation
project'' and inserting ``a project undertaken or funded by the
Bureau of Reclamation pursuant to an Act of Congress''.
(b) Coronavirus Local Fiscal Recovery Fund.--Section 603(c)(5) of
the Social Security Act (42 U.S.C. 803(c)(5)) is amended by striking
``an authorized Bureau of Reclamation project'' and inserting ``a
project undertaken or funded by the Bureau of Reclamation pursuant to
an Act of Congress''.
SEC. 403. ENVIRONMENTAL COMPLIANCE.
No water recycling project, non-Federal storage project, eligible
desalination project, project eligible for a loan under the pilot
program under section 105, or a project eligible for a grant under
section 106 shall receive Federal funding under this Act unless the
applicable project complies with--
(1) applicable Federal environmental laws; and
(2) applicable State environmental laws.
SEC. 404. EFFECT.
Nothing in this Act or an amendment made by this Act shall be
interpreted or implemented in a manner that interferes with any
obligation of a State under the Rio Grande Compact or any other compact
approved by Congress under the Act of May 31, 1939 (53 Stat. 785,
chapter 155), or any litigation relating to the Rio Grande Compact or
other compact.
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