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[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.
                                 <all>
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