II 

117TH CONGRESS 

1ST SESSION S. 2334 

To direct the Secretary of the Interior to establish a grant program to 

provide grants on a competitive basis to eligible entities for large-scale 

water recycling and reuse projects, to amend the Omnibus Public Land 

Management Act of 2009 to make certain modifications to the Cooperative Watershed Management Program, to provide emergency drought 

funding, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 13, 2021 

Ms. CORTEZ MASTO (for herself, Mr. PADILLA, and Ms. ROSEN) introduced 

the following bill; which was read twice and referred to the Committee 

on Energy and Natural Resources 

A BILL 

To direct the Secretary of the Interior to establish a grant 

program to provide grants on a competitive basis to 

eligible entities for large-scale water recycling and reuse 

projects, to amend the Omnibus Public Land Management Act of 2009 to make certain modifications to the 

Cooperative Watershed Management Program, to provide 

emergency drought funding, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Large Scale Water 

3 Recycling Project and Drought Resiliency Investment 

4 Act’’. 

5 SEC. 2. LARGE-SCALE WATER RECYCLING PROJECT IN6 VESTMENT. 

7 (a) DEFINITIONS.—In this section: 

8 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti9 ty’’ means— 

10 (A) a State, Indian Tribe, municipality, ir11 rigation district, water district, wastewater dis12 trict, or other organization with water or power 

13 delivery authority; 

14 (B) a State, regional, or local authority, 

15 the members of which include 1 or more organi16 zations with water or power delivery authority; 

17 and 

18 (C) an agency established under State law 

19 for the joint exercise of powers or a combina20 tion of entities described in subparagraphs (A) 

21 and (B). 

22 (2) ELIGIBLE PROJECT.—The term ‘‘eligible 

23 project’’ means a project described in subsection (c). 

24 (3) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 

25 has the meaning given the term in section 4 of the 


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1 Indian Self-Determination and Education Assistance 

2 Act (25 U.S.C. 5304). 

3 (4) PROGRAM.—The term ‘‘program’’ means 

4 the grant program established under subsection (b). 

5 (5) RECLAMATION STATE.—The term ‘‘Rec6 lamation State’’ means a State or territory described 

7 in the first section of the Act of June 17, 1902 (43 

8 U.S.C. 391; 32 Stat. 388, chapter 1093). 

9 (6) SECRETARY.—The term ‘‘Secretary’’ means 

10 the Secretary of the Interior. 

11 (b) ESTABLISHMENT.—The Secretary shall establish 

12 a program to provide grants to eligible entities on a com13 petitive basis for the planning, design, and construction 

14 of large-scale water recycling and reclamation projects 

15 that provide substantial water supply and other benefits 

16 to drought-stricken regions in the Reclamation States. 

17 (c) ELIGIBLE PROJECT.—A project shall be eligible 

18 for a grant under the program if the project— 

19 (1) reclaims and reuses— 

20 (A) municipal, industrial, domestic, or ag21 ricultural wastewater; or 

22 (B) impaired groundwater or surface 

23 water; 

24 (2) has a total estimated cost of $500,000,000 

25 or more; 


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1 (3) is located in a Reclamation State; 

2 (4) is constructed, operated, and maintained by 

3 an eligible entity; and 

4 (5) provides a Federal benefit in accordance 

5 with the reclamation laws. 

6 (d) PROJECT EVALUATION.—The Secretary may pro7 vide a grant to an eligible entity for an eligible project 

8 under the program if— 

9 (1) the eligible entity determines through the 

10 preparation of a feasibility study or equivalent 

11 study, and the Secretary concurs, that the eligible 

12 project— 

13 (A) is technically and financially feasible; 

14 (B) provides a Federal benefit in accord15 ance with the reclamation laws; and 

16 (C) is consistent with applicable Federal 

17 and State laws; 

18 (2) the eligible entity has sufficient non-Federal 

19 funding available to complete the eligible project, as 

20 determined by the Secretary; 

21 (3) the eligible entity is financially solvent, as 

22 determined by the Secretary; and 

23 (4) not later than 30 days after the date on 

24 which the Secretary concurs with the determinations 

25 under paragraph (1) with respect to the eligible 


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1 project, the Secretary submits to Congress written 

2 notice of the determinations. 

3 (e) PRIORITY.—In funding eligible projects under the 

4 program, the Secretary shall give funding priority for eli5 gible projects that meet 1 or more of the following criteria: 

6 (1) The eligible project provides multiple bene7 fits, including— 

8 (A) water supply reliability benefits for 

9 drought-stricken States and communities; 

10 (B) fish and wildlife benefits; and 

11 (C) water quality improvements. 

12 (2) The eligible project is likely to reduce im13 pacts on environmental resources from water 

14 projects owned or operated by Federal and State 

15 agencies, including through measurable reductions in 

16 water diversions from imperiled ecosystems. 

17 (3) The eligible project would advance water 

18 management plans across a multi-State area, such 

19 as drought contingency plans in the Colorado River 

20 Basin. 

21 (4) The eligible project is regional in nature. 

22 (5) The eligible project is collaboratively devel23 oped or supported by multiple stakeholders. 

24 (f) FEDERAL ASSISTANCE.— 


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1 (1) FEDERAL COST SHARE.—Except as pro2 vided in paragraph (2), the Federal share of the cost 

3 of any eligible project provided a grant under the 

4 program shall not exceed 25 percent of the total cost 

5 of the eligible project. 

6 (2) INCREASED FEDERAL COST SHARE FOR ELI7 GIBLE PROJECTS WITH ADDITIONAL MEASURABLE

8 BENEFITS.—The Secretary may increase the Federal 

9 share of the cost of an eligible project under para10 graph (1) to not more that 75 percent of the total 

11 costs of the eligible project, if the eligible project ad12 vances at least a proportionate share of nonreim13 bursable benefits authorized under the reclamation 

14 laws, including fish and wildlife benefits provided 

15 through measurable reductions in water diversions 

16 from imperiled ecosystems. 

17 (3) TOTAL CAP.—The Secretary shall not im18 pose a total dollar cap on Federal contributions that 

19 applies to all individual eligible projects provided a 

20 grant under the program. 

21 (4) NONREIMBURSABLE FUNDS.—Funds pro22 vided by the Secretary to an eligible entity under the 

23 program shall be considered nonreimbursable. 

24 (5) FUNDING ELIGIBILITY.—An eligible project 

25 shall not be considered ineligible for assistance 


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1 under this section because the eligible project has re2 ceived assistance authorized under— 

3 (A) the Reclamation Wastewater and 

4 Groundwater Study and Facilities Act (43 

5 U.S.C. 390h et seq.); 

6 (B) section 4(a) of the Water Desalination 

7 Act of 1996 (42 U.S.C. 10301 note; Public Law 

8 104–298) for eligible desalination projects; or 

9 (C) section 1602(e) of the Reclamation 

10 Wastewater and Groundwater Study and Facili11 ties Act (43 U.S.C. 390h(e)). 

12 (g) ENVIRONMENTAL LAWS.—In providing a grant 

13 for an eligible project under the program, the Secretary 

14 shall comply with all applicable environmental laws, in15 cluding the National Environmental Policy Act of 1969 

16 (42 U.S.C. 4321 et seq.). 

17 (h) GUIDANCE.—Not later than 1 year after the date 

18 of enactment of this Act, the Secretary shall issue guid19 ance on the implementation of this section, including 

20 guidelines for the preparation of feasibility studies or 

21 equivalent studies by eligible entities. 

22 (i) CONGRESSIONAL APPROVAL.— 

23 (1) IN GENERAL.—Not later than 60 days be24 fore the date on which a grant is provided for an eli25 gible project under this section, the Secretary shall 


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1 notify the Committee on Energy and Natural Re2 sources of the Senate and the Committee on Natural 

3 Resources of the House of Representatives, in writ4 ing, of the proposed grant. 

5 (2) REQUIREMENTS.—A notification under 

6 paragraph (1) shall include— 

7 (A) an evaluation and justification for the 

8 eligible project; and 

9 (B) a description of the amount of the pro10 posed grant award. 

11 (3) CONGRESSIONAL DISAPPROVAL.—The Sec12 retary shall not make a grant or any other obliga13 tion or commitment to fund an eligible project under 

14 this section that exceeds $100,000,000, if, by not 

15 later than the end of the 60-day period described in 

16 paragraph (1), a joint resolution is enacted dis17 approving the funding for the eligible project. 

18 (j) REPORTS.— 

19 (1) ANNUAL REPORT.—At the end of each fis20 cal year, the Secretary shall make available on the 

21 website of the Department of the Interior an annual 

22 report that lists each eligible project for which a 

23 grant has been provided under this section during 

24 the fiscal year. 

25 (2) COMPTROLLER GENERAL.— 


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1 (A) ASSESSMENT.—The Comptroller Gen2 eral of the United States shall conduct an as3 sessment of the administrative establishment, 

4 solicitation, selection, and justification process 

5 with respect to the funding of grants under this 

6 section. 

7 (B) REPORT.—Not later than 1 year after 

8 the date of the initial award of grants under the 

9 program, the Comptroller General of the United 

10 States shall submit to the Committee on En11 ergy and Natural Resources of the Senate and 

12 the Committee on Natural Resources of the 

13 House of Representatives a report that de14 scribes— 

15 (i) the adequacy and effectiveness of 

16 the process by which each eligible project 

17 was selected, if applicable; and 

18 (ii) the justification and criteria used 

19 for the selection of each eligible project, if 

20 applicable. 

21 (k) TREATMENT OF CONVEYANCE.—The Secretary 

22 shall consider the planning, design, and construction of 

23 a conveyance system for an eligible project to be eligible 

24 for grant funding under the program. 


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1 (l) AUTHORIZATION OF APPROPRIATIONS.—There is 

2 authorized to be appropriated to carry out this section 

3 $750,000,000 for the period of fiscal years 2023 through 

4 2027. 

5 SEC. 3. DROUGHT RESILIENCY. 

6 (a) COOPERATIVE WATERSHED MANAGEMENT PRO7 GRAM.— 

8 (1) DEFINITIONS.—Section 6001(7) of the Om9 nibus Public Land Management Act of 2009 (16 

10 U.S.C. 1015(7)) is amended— 

11 (A) in subparagraph (D), by striking ‘‘or’’ 

12 at the end; 

13 (B) by redesignating subparagraph (E) as 

14 subparagraph (F); and 

15 (C) by inserting after subparagraph (D) 

16 the following: 

17 ‘‘(E) provides for the conduct of emergency 

18 drought planning; or’’. 

19 (2) FUNDING PROCEDURE.—Section 

20 6002(c)(2)(A) of the Omnibus Public Land Manage21 ment Act of 2009 (16 U.S.C. 1015a(c)(2)(A)) is 

22 amended by inserting ‘‘or emergency drought plan’’ 

23 after ‘‘restoration plan’’ each place it appears. 

24 (b) EMERGENCY DROUGHT FUNDING.— 

25 (1) FINANCIAL ASSISTANCE.— 


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1 (A) IN GENERAL.—Financial assistance 

2 may be made available under the Reclamation 

3 States Emergency Drought Relief Act of 1991 

4 (43 U.S.C. 2201 et seq.) for eligible water 

5 projects to assist Western States and Tribal 

6 governments to address drought-related impacts 

7 to water supplies or any other immediate water8 related crisis or conflict, including through vol9 untary, temporary, and compensated programs 

10 to reduce water demands for the purpose of in11 creasing water available in a system or reducing 

12 water supply-demand imbalances. 

13 (B) ADDITIONAL AVAILABILITY.—Finan14 cial assistance may be made available under 

15 this paragraph to organizations and entities 

16 that are— 

17 (i) engaged in collaborative processes 

18 to restore the environment; or 

19 (ii) part of a basin-wide solution for 

20 restoration. 

21 (C) TYPES OF ASSISTANCE.—Assistance 

22 under subparagraph (A) may include a range of 

23 projects, including— 


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1 (i) the installation of pumps, tem2 porary barriers, or operable gates for water 

3 diversion and fish protection; 

4 (ii) the installation of drought-relief 

5 groundwater wells for Indian Tribes and in 

6 wildlife refuges and other environmentally 

7 sensitive areas requiring emergency surface 

8 water flow augmentation; 

9 (iii) the acquisition or assistance in 

10 the acquisition of water from willing sell11 ers, including on a voluntary, temporary, 

12 and compensated basis, to enhance stream 

13 flow for the benefit of fish and wildlife (in14 cluding endangered species), water quality, 

15 river ecosystem restoration, and other ben16 eficial purposes; 

17 (iv) agricultural and urban conserva18 tion and efficiency projects; 

19 (v) exchanges with any water district 

20 willing to provide water to meet the emer21 gency water needs of other water districts 

22 in return for the delivery of equivalent 

23 quantities of water later that year or in fu24 ture years; 


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1 (vi) emergency pumping projects for 

2 critical health and safety purposes; 

3 (vii) activities to reduce water demand 

4 consistent with a comprehensive program 

5 for environmental restoration and settle6 ment of water rights claims; and 

7 (viii) activities that protect, restore, or 

8 enhance fish and wildlife habitat or other9 wise improve environmental conditions, in10 cluding water quantity or quality concerns 

11 and improved fish passage. 

12 (D) AUTHORIZATION OF APPROPRIA13 TIONS.—There is authorized to be appropriated 

14 to provide financial assistance under this para15 graph not more than $50,000,000 for the pe16 riod of fiscal years 2022 through 2026, of 

17 which not more than $20,000,000 shall be 

18 made available during that period for the con19 duct of actions authorized under title I of the 

20 Reclamation States Emergency Drought Relief 

21 Act of 1991 (43 U.S.C. 2211 et seq.) to benefit 

22 imperiled fish and wildlife. 

23 (2) APPLICABLE PERIOD OF DROUGHT PRO24 GRAM.—Section 104 of the Reclamation States 

25 Emergency Drought Relief Act of 1991 (43 U.S.C. 


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1 2214) is amended by striking subsection (a) and in2 serting the following: 

3 ‘‘(a) IN GENERAL.—The programs and authorities 

4 established under this title shall become operative in any 

5 Reclamation State and in the State of Hawaii only— 

6 ‘‘(1) after the Governor or Governors of the af7 fected State or States, or the governing body of an 

8 affected Indian Tribe with respect to a reservation, 

9 has made a request for temporary drought assist10 ance and the Secretary has determined that the tem11 porary assistance is merited; 

12 ‘‘(2) after a drought emergency has been de13 clared by the Governor or Governors of the affected 

14 State or States; or 

15 ‘‘(3) on approval of a drought contingency plan 

16 as provided in title II.’’. 

17 (3) REAUTHORIZATION.—Section 104(c) of the 

18 Reclamation States Emergency Drought Relief Act 

19 of 1991 (43 U.S.C. 2214(c)) is amended by striking 

20 ‘‘2021’’ and inserting ‘‘2031’’. 

Æ 


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