Title: Drought Resiliency and Water Supply Infrastructure Act
Policy area: Water Resources Development

Summary:
Drought Resiliency and Water Supply Infrastructure Act
This bill establishes and modifies various Department of the Interior water programs that target western states.
Provisions in the bill include those

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1932 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  1st Session
                                S. 1932

 To support water infrastructure in Reclamation States, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 20, 2019

Mr. Gardner (for himself, Mrs. Feinstein, Ms. McSally, 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.

    This Act may be cited as the ``Drought Resiliency and Water Supply 
Infrastructure Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Design; study.--The terms ``design'' and ``study'' 
        include any design, permitting, materials engineering or 
        testing, surveying, or preconstruction activity relating to a 
        water storage facility.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 3. SURFACE AND GROUNDWATER STORAGE AND SUPPORTING PROJECTS.

    (a) Definitions.--In this section:
            (1) Appropriate committees of congress.--The term 
        ``appropriate committees of Congress'' means--
                    (A) the Committee on Appropriations of the Senate;
                    (B) the Committee on Energy and Natural Resources 
                of the Senate;
                    (C) the Committee on Appropriations of the House of 
                Representatives; and
                    (D) the Committee on Natural Resources of the House 
                of Representatives.
            (2) 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.
            (3) Federally owned storage project.--The term ``federally 
        owned storage project'' means any project in a Reclamation 
        State--
                    (A) that involves the construction, expansion, 
                upgrade, or capital repair of--
                            (i) a surface water storage facility; or
                            (ii) a facility conveying water to or from 
                        a surface or groundwater storage facility;
                    (B) to which the United States holds title; and
                    (C) that was authorized to be constructed, 
                operated, and maintained pursuant to--
                            (i) the reclamation laws; or
                            (ii) the Act of August 11, 1939 (commonly 
                        known as the ``Water Conservation and 
                        Utilization Act'') (16 U.S.C. 590y et seq.).
            (4) Non-federal storage project.--The term ``non-Federal 
        storage project'' means any project in a Reclamation State 
        that--
                    (A) involves the construction, expansion, upgrade, 
                or capital repair by an eligible entity of--
                            (i) a surface or groundwater storage 
                        facility that is not federally owned; or
                            (ii) a facility that is not federally owned 
                        conveying water to or from a surface or 
                        groundwater storage facility; and
                    (B) provides a benefit in meeting any obligation 
                under applicable Federal law (including regulations).
            (5) 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.
            (6) 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).
    (b) Grant Program.--The Secretary may provide a grant under this 
section to an eligible entity to carry out, within a Reclamation 
State--
            (1) a federally owned storage project in accordance with 
        subsection (c); or
            (2) a non-Federal storage project in accordance with 
        subsection (d).
    (c) Federally Owned Storage Projects.--
            (1) Agreements.--On request of an eligible entity, the 
        Secretary may negotiate and enter into an agreement on behalf 
        of the United States for the design, study, construction, 
        expansion, upgrade, or capital repair of a federally owned 
        storage project located in a Reclamation State in accordance 
        with this subsection.
            (2) Federal share.--Subject to the requirements of this 
        subsection, the Secretary may participate in a federally owned 
        storage project in an amount equal to not more than 50 percent 
        of the total cost of the federally owned storage project.
            (3) Conditions for federal construction funding.--The 
        construction of a federally owned storage project that is the 
        subject of an agreement under this subsection shall not 
        commence until the Secretary--
                    (A) determines that the proposed federally owned 
                storage project is feasible in accordance with the 
                reclamation laws;
                    (B) determines that--
                            (i) the federally owned storage project 
                        provides a Federal benefit in accordance with 
                        the reclamation laws; and
                            (ii) not less than a proportionate share of 
                        the benefits of the federally owned storage 
                        project are Federal benefits, including water 
                        supplies dedicated to specific purposes, such 
                        as water quality improvements or fish and 
                        wildlife protection and restoration, including 
                        a wildlife refuge; and
                    (C) secures an agreement providing such upfront 
                funding as is necessary to pay the non-Federal share of 
                the capital costs of the federally owned storage 
                project.
            (4) Notification.--The Secretary shall submit to the 
        appropriate committees of Congress a written notification of 
        the determinations under paragraph (3) by not later than 30 
        days after the date of the determinations.
            (5) Environmental laws.--In participating in a federally 
        owned storage project under this subsection, the Secretary 
        shall comply with all applicable environmental laws, including 
        the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
        et seq.).
            (6) Expansion or upgrade.--The Secretary shall require, as 
        a condition for design, study, or any other participation in 
        the expansion or upgrade of a federally owned storage project--
                    (A) the agreement of any single entity that has an 
                existing water service contract or repayment contract 
                for more than 60 percent of the capacity or yield of 
                the federally owned storage project that the expansion 
                will not adversely affect any right or interest of the 
                entity under the water service contract or repayment 
                contract, as applicable; and
                    (B) the agreement of the non-Federal entity that, 
                pursuant to a formal operations and maintenance 
                transfer contract or other legal agreement with the 
                Secretary, acting through the Commissioner of 
                Reclamation, carries out the operations and maintenance 
                of the federally owned storage project, if applicable.
    (d) Non-Federal Storage Projects.--
            (1) In general.--Subject to the requirements of this 
        subsection, the Secretary may participate in the design, study, 
        construction, expansion, upgrade, or capital repair of a non-
        Federal storage project in an amount equal to not more than 25 
        percent of the total cost of the non-Federal storage project.
            (2) Conditions for federal design and study funding.--The 
        Secretary shall only fund a design or study activity for a non-
        Federal storage project under this subsection if--
                    (A) Federal participation has been requested by the 
                Governor of the State in which the non-Federal storage 
                project is located; and
                    (B) the Secretary has identified the potential for 
                Federal benefit sufficient to proceed.
            (3) Conditions for federal construction funding.--
        Participation by the Secretary in the construction of a non-
        Federal storage project under this subsection shall not occur 
        unless--
                    (A) the Governor of the State in which the non-
                Federal storage project is located has requested 
                Federal participation at the time construction was 
                initiated; and
                    (B) the applicable non-Federal sponsor determines, 
                and the Secretary concurs, that--
                            (i) the non-Federal storage project is 
                        technically and financially feasible;
                            (ii) the non-Federal storage project 
                        provides a Federal benefit in accordance with 
                        the reclamation laws;
                            (iii) not less than a proportionate share 
                        of the benefits of the non-Federal storage 
                        project are Federal benefits, including water 
                        supplies dedicated to specific purposes, such 
                        as water quality improvements or fish and 
                        wildlife protection and restoration, including 
                        a wildlife refuge; and
                            (iv) each sponsor of the non-Federal 
                        project is financially capable of funding the 
                        non-Federal share of the project costs.
            (4) Notification.--The Secretary shall submit to the 
        appropriate committees of Congress a written notification of 
        the determinations under paragraphs (2) and (3) by not later 
        than 30 days after the date of the determinations.
            (5) Environmental laws.--In participating in a non-Federal 
        storage project under this subsection, the Secretary shall 
        comply with all applicable environmental laws, including the 
        National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.).
            (6) Information.--
                    (A) In general.--In participating in a non-Federal 
                storage project under this subsection, the Secretary--
                            (i) shall--
                                    (I) generally, rely on reports 
                                prepared by the sponsor of the non-
                                Federal storage project, including 
                                feasibility or equivalent studies, 
                                environmental analyses, and other 
                                pertinent reports and analyses; but
                                    (II) retain responsibility for 
                                making the independent determinations 
                                described in paragraphs (2) and (3); 
                                and
                            (ii) may prepare studies supplementary to 
                        the studies described in clause (i)(I), on--
                                    (I) request of the sponsor of the 
                                non-Federal storage project; and
                                    (II) agreement by the Secretary.
                    (B) Guidelines.--
                            (i) Draft.--Not later than 180 days after 
                        the date of enactment of this Act, the 
                        Secretary shall issue draft guidelines for 
                        feasibility or equivalent studies for non-
                        Federal storage projects prepared by a project 
                        sponsor that shall be consistent with 
                        requirements for a title XVI Feasibility Study 
                        Report, including the economic analysis, 
                        contained in the Reclamation Manual Directives 
                        and Standards numbered WTR 11-01, subject to--
                                    (I) any additional requirements 
                                necessary to provide sufficient 
                                information for making the independent 
                                determinations described in paragraphs 
                                (2)(B) and (3); and
                                    (II) the condition that the Bureau 
                                of Reclamation shall not bear 
                                responsibility for the technical 
                                adequacy of any design, cost estimate, 
                                or construction relating to a non-
                                Federal storage project.
                            (ii) Final.--The Secretary shall finalize 
                        the guidelines under clause (i) by not later 
                        than 1 year after the date of enactment of this 
                        Act.
    (e) Rights To Use Capacity.--Subject to compliance with applicable 
Reclamation State water rights laws, the right to use the capacity of a 
federally owned storage project or non-Federal storage project with 
respect to which the Secretary has entered into an agreement under this 
subsection shall be allocated in such manner as may be mutually agreed 
to by the Secretary and each other party to the agreement, including 
any party described in subsection (c)(6)(B).
    (f) Federal Benefits.--In making a determination relating to a 
Federal benefit under this section, the Secretary may include any 
benefit realized from the existence of operational flexibility to 
optimize the achievement of an authorized project purpose (whether 
reimbursable or nonreimbursable), taking into consideration the 
hydrology of a given water year, including through the coordinated 
management of Federal and non-Federal facilities.
    (g) Funding.--
            (1) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out this section 
        $670,000,000 for the period of fiscal years 2020 through 2024.
            (2) Congressional approval initially required.--
                    (A) Design and study funding.--Each initial award 
                under this section for design and study of a federally 
                owned storage project or a non-Federal storage project 
                shall be approved in an appropriations Act.
                    (B) Construction funding.--Each initial award under 
                this section for construction of a federally owned 
                storage project or a non-Federal storage project shall 
                be approved in an appropriations Act.
                    (C) Reclamation recommendations.--
                            (i) In general.--Subject to clause (ii), 
                        the Commissioner of Reclamation shall submit to 
                        the appropriate committees of Congress 
                        recommendations regarding the initial award of 
                        design and study funding, and of construction 
                        funding, for each federally owned storage 
                        project and non-Federal storage project subject 
                        to consideration under subparagraphs (A) and 
                        (B).
                            (ii) Requirement.--The Commissioner of 
                        Reclamation shall confer with the appropriate 
                        committees of Congress before submitting the 
                        recommendations under clause (i).
            (3) Subsequent funding awards.--
                    (A) Design and study funding.--After approval by 
                Congress of an initial award of design and study 
                funding for a federally owned storage project or a non-
                Federal storage project under paragraph (2), the 
                Secretary may award additional design and study funding 
                for the federally owned storage project or non-Federal 
                storage project without further congressional approval.
                    (B) Construction funding.--After approval by 
                Congress of an initial award of construction funding 
                for a federally owned storage project or a non-Federal 
                storage project under paragraph (2), the Secretary may 
                award additional construction funding for the federally 
                owned storage project or non-Federal storage project 
                without further congressional approval.
            (4) 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.
            (5) WIIN act storage funding.--
                    (A) Appropriations.--Each federally owned storage 
                project and non-Federal storage project shall be 
                eligible to receive any amounts made available pursuant 
                to section 4007(h) of the Water Infrastructure 
                Improvements for the Nation Act (43 U.S.C. 390b note; 
                Public Law 114-322) (as in effect on the day before the 
                date of enactment of this Act), in accordance with 
                paragraphs (2) and (3).
                    (B) Individual projects.--
                            (i) Federally owned storage projects.--If 
                        the Secretary determines that a federally owned 
                        storage project is eligible for funding under 
                        section 4007(b) of the Water Infrastructure 
                        Improvements for the Nation Act (43 U.S.C. 390b 
                        note; Public Law 114-322), the federally owned 
                        storage project shall remain eligible for 
                        funding under subsection (c).
                            (ii) Non-federal storage projects.--If the 
                        Secretary determines that a non-Federal storage 
                        project is eligible for funding as a State-led 
                        storage project under section 4007(c) the Water 
                        Infrastructure Improvements for the Nation Act 
                        (43 U.S.C. 390b note; Public Law 114-322), the 
                        non-Federal storage project shall remain 
                        eligible for funding under subsection (d).
    (h) Consistency With State Law.--Nothing in this section preempts 
or modifies any obligation of the United States or an eligible entity 
to act in accordance with applicable State law.
    (i) Partnership and Agreements Relating to Certain Water Storage 
Projects.--The Secretary, acting through the Commissioner of 
Reclamation, may enter into a partnership or other agreement relating 
to a water storage project described in section 103 of the Calfed Bay-
Delta Authorization Act (Public Law 108-361; 118 Stat. 1683) with a 
local joint-powers authority established pursuant to State law by 1 or 
more irrigation districts or other local water districts or units of 
local government within the applicable hydrologic region, to advance 
the project.
    (j) 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) is amended by striking ``2019'' each place it 
appears and inserting ``2024''.
    (k) Conforming Amendment.--Section 4007 of the Water Infrastructure 
Improvements for the Nation Act (43 U.S.C. 390b note; Public Law 114-
322) is repealed.

SEC. 4. WATER RECYCLING AND REUSE.

    (a) Authorization of New Water Recycling and Reuse Projects.--
Section 1602 of the Reclamation Wastewater and Groundwater Study and 
Facilities Act (43 U.S.C. 390h) is amended by striking paragraph (2) of 
subsection (f) 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, 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) Funding.--
            ``(1) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out subsections 
        (e) and (f) $100,000,000 for the period of fiscal years 2020 
        through 2024.
            ``(2) Funding opportunity announcement.--The Commissioner 
        of Reclamation shall release a funding opportunity announcement 
        for the competitive grant program under subsection (f) by not 
        later than 75 days after the date of enactment of an Act that 
        provides funding for the program.
            ``(3) Congressional approval initially required.--
                    ``(A) In general.--Each initial award under this 
                section for design and study, or for construction, of a 
                project under subsection (e) or (f) shall be approved 
                in an appropriations Act.
                    ``(B) Reclamation recommendations.--The 
                Commissioner of Reclamation shall submit 
                recommendations regarding the initial award of design 
                and study funding and construction funding for 
                consideration under subparagraph (A) to--
                            ``(i) the Committee on Appropriations of 
                        the Senate;
                            ``(ii) the Committee on Energy and Natural 
                        Resources of the Senate;
                            ``(iii) the Committee on Appropriations of 
                        the House of Representatives; and
                            ``(iv) the Committee on Natural Resources 
                        of the House of Representatives.
            ``(4) Subsequent funding awards.--After approval by 
        Congress of an initial award of design and study funding or 
        construction funding for a project under paragraph (3), the 
        Commissioner of Reclamation may award additional design and 
        study funding or construction funding, respectively, for the 
        project without further congressional approval.''.
    (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 ``$30,000,000 (in prices as determined 
                for January 2019)''; 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 2020.--The Federal share of the 
        cost of any single project authorized under this title shall be 
        $20,000,000 if the project has received that amount as of 
        December 31, 2020.
            ``(3) Older projects.--
                    ``(A) In general.--Subject to''.

SEC. 5. DESALINATION.

    Section 4(a) of the Water Desalination Act of 1996 (42 U.S.C. 10301 
note; Public Law 104-298) is amended by striking the second paragraph 
(1) (relating to projects) and inserting the following:
            ``(2) Projects.--
                    ``(A) Definition of eligible desalination 
                project.--In this paragraph, 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--
                                    ``(I) constructed, operated, and 
                                maintained by a State, Indian Tribe, 
                                irrigation district, water district, or 
                                other organization with water or power 
                                delivery authority; or
                                    ``(II) sponsored or funded by any 
                                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; and
                            ``(ii) provides a Federal benefit in 
                        accordance with the reclamation laws.
                    ``(B) Federal share.--Subject to the requirements 
                of this paragraph, the Secretary may participate in an 
                eligible desalination project in an amount equal to not 
                more than 25 percent of the total cost of the eligible 
                desalination project.
                    ``(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; and
                            ``(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; and
                                            ``(bb) provides a Federal 
                                        benefit in accordance with the 
                                        reclamation laws; and
                                    ``(II) the non-Federal project 
                                sponsor is financially capable of 
                                funding the non-Federal share of the 
                                project costs; and
                            ``(iii) the Secretary submits to Congress a 
                        written notification of the determinations 
                        under clause (ii) by not later than 30 days 
                        after the date of the determinations.
                    ``(D) Environmental laws.--In participating in an 
                eligible desalination project under this paragraph, the 
                Secretary shall comply with all applicable 
                environmental laws, including the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.).
                    ``(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.--
                        There is authorized to be appropriated to carry 
                        out this paragraph $60,000,000 for the period 
                        of fiscal years 2020 through 2024.
                            ``(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.
                            ``(iii) Congressional approval initially 
                        required.--
                                    ``(I) In general.--Each initial 
                                award under this paragraph for design 
                                and study, or for construction, of an 
                                eligible desalination project shall be 
                                approved in an appropriations Act.
                                    ``(II) Reclamation 
                                recommendations.--The Commissioner of 
                                Reclamation shall submit 
                                recommendations regarding the initial 
                                award of design and study funding and 
                                construction funding for consideration 
                                under subclause (I) to--
                                            ``(aa) the Committee on 
                                        Appropriations of the Senate;
                                            ``(bb) the Committee on 
                                        Energy and Natural Resources of 
                                        the Senate;
                                            ``(cc) the Committee on 
                                        Appropriations of the House of 
                                        Representatives; and
                                            ``(dd) the Committee on 
                                        Natural Resources of the House 
                                        of Representatives.
                            ``(iv) Subsequent funding awards.--After 
                        approval by Congress of an initial award of 
                        design and study funding or construction 
                        funding for an eligible desalination project 
                        under clause (iii), the Commissioner of 
                        Reclamation may award additional design and 
                        study funding or construction funding, 
                        respectively, for the eligible desalination 
                        project without further congressional 
                        approval.''.

SEC. 6. 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) financial 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 
        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 contribute directly or indirectly 
                (including through groundwater recharge) to a safe, 
                adequate water supply for domestic, agricultural, 
                environmental, or municipal or industrial use; 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 such other criteria as 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 Entities.--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 (Public Law 
                115-270), pursuant to which the Administrator shall 
                retain responsibility for administering any loans under 
                this section.
                    (C) Other applicable environmental laws, including 
                the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.).
    (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 2021 through 2025, 
        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. 7. RESTORATION AND ENVIRONMENTAL COMPLIANCE.

    (a) In General.--The Secretary may participate in--
            (1) environmental restoration activities benefitting 
        species--
                    (A) listed as threatened or endangered under the 
                Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) 
                that are adversely affected by the operation of water 
                projects of the Bureau of Reclamation; or
                    (B) through water delivery from a Reclamation 
                project to a wildlife refuge;
            (2) environmental compliance activities, including stream 
        gauging, monitoring, and other data collection activities, to 
        assist water projects of the Bureau of Reclamation in--
                    (A) achieving the purposes of the projects; and
                    (B) fulfilling the duties of the Bureau under 
                section 7 of the Endangered Species Act of 1973 (16 
                U.S.C. 1536); and
            (3) a forest, meadow, or watershed restoration activity on 
        Federal land--
                    (A) that has the potential--
                            (i) to restore healthy forest or watershed 
                        conditions that improve the quality, timing, or 
                        other attributes of runoff to--
                                    (I) a Bureau of Reclamation 
                                facility or project; or
                                    (II) a surface or groundwater 
                                storage facility that is operated in 
                                conjunction with a Bureau of 
                                Reclamation facility or project;
                            (ii) to reduce the rate of sedimentation of 
                        a Bureau of Reclamation facility; or
                            (iii) to reduce the threat of wildfire that 
                        could affect runoff to, or sedimentation or 
                        structural integrity of, a Bureau of 
                        Reclamation facility; and
                    (B) with respect to which--
                            (i) the proportion that the amount of 
                        Federal funding under this section bears to the 
                        total cost of the project is approximately 
                        equal to, or less than, the proportion that 
                        water-related benefits bears to the total 
                        benefits of the project, as calculated by the 
                        Secretary using a methodology at the discretion 
                        of the Secretary; and
                            (ii) Federal water contractors are likely 
                        to receive at least part of the water supply or 
                        water quality benefits of the project.
    (b) Priority.--In carrying out this section, the Secretary shall 
give priority to restoration or environmental compliance activities 
that--
            (1) implement congressional direction, such as projects 
        described in--
                    (A) subsection (a)(3);
                    (B) section 4001 or 4010 of the Water 
                Infrastructure Improvements for the Nation Act (Public 
                Law 114-322; 130 Stat. 1851); or
                    (C) congressionally authorized species recovery 
                programs on the Colorado River;
            (2) are recommended by collaborative processes or plans 
        developed by Federal agencies in conjunction with States, water 
        contractors, environmental or fishing interests, or other 
        stakeholders; or
            (3) implement settlements with State agencies or 
        requirements under State water laws to restore species listed 
        as threatened or endangered under the Endangered Species Act of 
        1973 (16 U.S.C. 1531 et seq.) or other species adversely 
        affected by the operation of water projects of the Bureau of 
        Reclamation.
    (c) Cost-Share.--
            (1) In general.--The Federal share of the cost of any 
        individual program, activity, or project carried out using 
        funds made available pursuant to this section--
                    (A) shall be not more than 50 percent; and
                    (B) shall be nonreimbursable.
            (2) Program-level calculation.--The Federal cost-share 
        described in paragraph (1) shall be calculated at the program 
        level, at which a group of activities or projects are 
        considered to be a part of a broader, cohesive program.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary--
            (1) $20,000,000 to carry out subsection (a)(3) for the 
        period of fiscal years 2020 and 2021; and
            (2) $120,000,000 to carry out this section for the period 
        of fiscal years 2022 through 2024.
    (e) Applicable Law.--Nothing in this section shall be interpreted 
or implemented in a manner that--
            (1) preempts or modifies any obligation of the United 
        States under Federal law to act in accordance with applicable 
        State law, including applicable State water law; or
            (2) affects or modifies any obligation under Federal 
        environmental law.

SEC. 8. DEAUTHORIZATION OF CERTAIN WATER RECYCLING PROJECTS.

    (a) Purpose; Definition.--
            (1) Purpose.--The purpose of this section is to establish 
        an efficient and transparent 1-time process for deauthorizing 
        Bureau of Reclamation title XVI projects that have failed--
                    (A) to receive a minimum level of Federal 
                investment; or
                    (B) to initiate construction.
            (2) Definition of title xvi project.--In this section, the 
        term ``title XVI project'' means a project authorized by title 
        XVI of Public Law 102-575 (43 U.S.C. 390h et seq.).
    (b) Backlog List.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall submit to the Committee on 
Energy and Natural Resources of the Senate and the Committee on Natural 
Resources of the House of Representatives, and make available on a 
publicly accessible internet website in a manner that is downloadable, 
searchable, and sortable, a list of--
            (1) title XVI projects--
                    (A) that are authorized; and
                    (B) for which, during the fiscal year in which this 
                Act is enacted and each of the preceding 10 fiscal 
                years--
                            (i) no application for Federal funding has 
                        been received; and
                            (ii) no construction has occurred; and
            (2) for each title XVI project listed under paragraph (1)--
                    (A) the date of authorization of the title XVI 
                project, including any subsequent modifications to the 
                original authorization;
                    (B) a brief description of the title XVI project; 
                and
                    (C) any amounts appropriated for the title XVI 
                project that remain unobligated.
    (c) Interim Deauthorization List.--
            (1) In general.--The Secretary shall develop and make 
        publicly available an interim deauthorization list that 
        identifies each title XVI project described in subsection 
        (b)(1).
            (2) Public comment and consultation.--
                    (A) In general.--The Secretary shall solicit and 
                accept, for a period of not less than 90 days, comments 
                relating to the interim deauthorization list under 
                paragraph (1) from--
                            (i) the public; and
                            (ii) the Governor of each applicable State.
                    (B) Project sponsors.--As part of the public 
                comment period under subparagraph (A), the Secretary 
                shall provide to title XVI project sponsors the 
                opportunity to provide to the Secretary a notice of the 
                intent to initiate construction of the title XVI 
                project by not later than the date that is 2 years 
                after the date of publication of the preliminary final 
                deauthorization list under subsection (d).
            (3) Submission to congress; publication.--Not later than 90 
        days after the date of submission of the backlog list under 
        subsection (b), the Secretary shall--
                    (A) submit the interim deauthorization list under 
                paragraph (1) to the Committee on Energy and Natural 
                Resources of the Senate and the Committee on Natural 
                Resources of the House of Representatives; and
                    (B) publish the interim deauthorization list in the 
                Federal Register.
    (d) Preliminary Final Deauthorization List.--
            (1) In general.--The Secretary shall develop a preliminary 
        final deauthorization list that includes each title XVI project 
        identified pursuant to paragraph (2).
            (2) Identification of projects.--
                    (A) Exclusions.--The Secretary may identify a title 
                XVI project described in subsection (b)(1) for 
                exclusion from the preliminary final deauthorization 
                list if the Secretary determines, on a case-by-case 
                basis following receipt of public comments, that the 
                title XVI project is critical for interests of the 
                United States, based on the practicable impact of the 
                title XVI project on--
                            (i) public health and safety;
                            (ii) the national economy; or
                            (iii) the environment.
                    (B) Subject to deauthorization designation.--Any 
                title XVI project the sponsor of which has provided to 
                the Secretary a notice of the intent to initiate 
                construction by not later than 2 years after the date 
                of publication of the preliminary final deauthorization 
                list under this subsection shall be designated on that 
                list as ``subject to deauthorization''.
                    (C) Appendix.--The Secretary shall include as part 
                of the preliminary final deauthorization list under 
                this subsection an appendix that--
                            (i) identifies each title XVI project 
                        included on the interim deauthorization list 
                        under subsection (c) that is not included on 
                        the preliminary final deauthorization list; and
                            (ii) describes the reasons why each title 
                        XVI project identified under clause (i) is not 
                        included on the preliminary final 
                        deauthorization list.
            (3) Submission to congress; publication.--Not later than 
        120 days after the date of expiration of the public comment 
        period under subsection (c)(2)(A), the Secretary shall--
                    (A) submit to the Committee on Energy and Natural 
                Resources of the Senate and the Committee on Natural 
                Resources of the House of Representatives the 
                preliminary final deauthorization list and the appendix 
                required under this subsection; and
                    (B) publish the preliminary final deauthorization 
                list and appendix in the Federal Register.
    (e) Deauthorization; Congressional Review.--Effective beginning on 
the date that is 180 days after the date of submission to Congress of 
the preliminary final deauthorization list under subsection (d)(3)(A), 
each title XVI project included on that list is deauthorized, unless--
            (1) the title XVI project is designated as ``subject to 
        deauthorization'' pursuant to subsection (d)(2)(B); or
            (2) Congress has enacted a joint resolution disapproving 
        the preliminary final deauthorization list.
    (f) Updated Final Deauthorization List.--
            (1) Publication.--Not later than the date that is 2 years 
        after the date of publication of the preliminary final 
        deauthorization list under subsection (d)(3)(B), the Secretary 
        shall publish an updated final deauthorization list.
            (2) Projects subject to deauthorization.--On the updated 
        final deauthorization list under this subsection, the Secretary 
        shall describe any title XVI project designated as ``subject to 
        deauthorization'' on the preliminary final deauthorization list 
        pursuant to subsection (d)(2)(B) as--
                    (A) authorized, if the Secretary has received 
                evidence that the sponsor of the title XVI project has 
                substantially initiated construction on the title XVI 
                project; or
                    (B) deauthorized, if the Secretary has not received 
                the evidence described in subparagraph (A).
            (3) Deauthorization.--Any project described as deauthorized 
        pursuant to paragraph (2)(B) shall be deauthorized on the date 
        that is 180 days after the date of submission of the updated 
        final deauthorization list under paragraph (1), unless Congress 
        has enacted a joint resolution disapproving that list.
    (g) Treatment of Project Modifications.--For purposes of this 
section, if a title XVI project has been modified by an Act of 
Congress, the date of authorization of the title XVI project shall be 
considered to be the date of the most recent modification.

SEC. 9. OFFSETS.

    (a) Definition of Water Users' Association.--In this section:
            (1) In general.--The term ``water users' association'' 
        means an entity that is--
                    (A) organized and recognized under applicable State 
                law; and
                    (B) eligible to enter into contracts with the 
                Bureau of Reclamation--
                            (i) to receive contract water for delivery 
                        to end users of the water; and
                            (ii) to pay applicable charges relating to 
                        that water.
            (2) Inclusions.--The term ``water users' association'' 
        includes--
                    (A) an association;
                    (B) a conservancy district;
                    (C) an irrigation district;
                    (D) a municipality;
                    (E) a water project contract unit; and
                    (F) any similar entity described in paragraph (1).
    (b) Prepayment of Certain Repayment Contracts.--
            (1) Conversion and prepayment.--On receipt of a request 
        from a party to the contract, the Secretary shall convert any 
        water service contract in effect on the date of enactment of 
        this Act between the United States and a water users' 
        association to allow for prepayment of the contract pursuant to 
        paragraph (2) under mutually agreeable terms and conditions, 
        subject to the conditions that--
                    (A) a water service contract entered into under 
                subsection (e) of section 9 of the Act of August 4, 
                1939 (53 Stat. 1193, chapter 418), proposed to be 
                converted under this subsection shall be converted to a 
                repayment contract under subsection (d) of that 
                section; and
                    (B) a water service contract entered into under 
                subsection (c)(2) of section 9 of the Act of August 4, 
                1939 (53 Stat. 1193, chapter 418), proposed to be 
                converted under this subsection shall be converted to a 
                contract under subsection (c)(1) of that section.
            (2) Prepayment.--Except for a repayment contract under 
        which the contractor has previously negotiated for prepayment, 
        on request of a party to the contract, a repayment contract 
        under section 9(d) of the Act of August 4, 1939 (53 Stat. 1195, 
        chapter 418), in effect on the date of enactment of this Act, 
        and all contracts converted pursuant to paragraph (1)(A), 
        shall--
                    (A) provide for the repayment, in lump sum or by 
                accelerated prepayment, of the remaining construction 
                costs identified in water project-specific irrigation 
                rate repayment schedules, as adjusted to reflect 
                payments not reflected in those schedules, and properly 
                assignable for ultimate return by the contractor, or if 
                made in approximately equal installments, not later 
                than 3 years after the effective date of the repayment 
                contract, subject to the conditions that--
                            (i) the amount shall be discounted by \1/2\ 
                        the Treasury rate; and
                            (ii) an estimate of the remaining 
                        construction costs, as adjusted, shall be 
                        provided by the Secretary to the contractor by 
                        not later than 90 days after the date of 
                        receipt of a request from the contractor;
                    (B) require that construction costs or other 
                capitalized costs incurred after the effective date of 
                the contract or not reflected in the rate schedule 
                referred to in subparagraph (A), and properly 
                assignable to the contractor, shall be repaid--
                            (i) by not later than 5 years after the 
                        date of notification of the allocation if the 
                        amount is a result of a collective annual 
                        allocation of capital costs to the contractors 
                        exercising contract conversion under this 
                        subsection of less than $5,000,000; or
                            (ii) if the amount is equal to $5,000,000 
                        or more, in accordance with applicable 
                        reclamation laws;
                    (C) provide that power revenues will not be 
                available to aid in repayment of construction costs 
                allocated to irrigation under the contract; and
                    (D) continue in effect for the period during which 
                the contractor pays applicable charges, in accordance 
                with section 9(d) of the Act of August 4, 1939 (53 
                Stat. 1195, chapter 418), and other applicable law.
            (3) Covered contract requirements.--
                    (A) Definition of covered contract.--In this 
                paragraph:
                            (i) In general.--The term ``covered 
                        contract'' means--
                                    (I) on request of the contractor, a 
                                repayment contract under subsection 
                                (c)(1) of section 9 of the Act of 
                                August 4, 1939 (53 Stat. 1193, chapter 
                                418), that is in effect on the date of 
                                enactment of this Act; and
                                    (II) a contract converted pursuant 
                                to paragraph (1)(B).
                            (ii) Exclusion.--The term ``covered 
                        contract'' does not include a repayment 
                        contract under which the contractor has 
                        previously negotiated for prepayment.
                    (B) Requirements.--Each covered contract shall--
                            (i) provide for the repayment, in lump sum, 
                        of the remaining construction costs identified 
                        in water project-specific irrigation rate 
                        repayment schedules, as adjusted to reflect 
                        payments not reflected in those schedules, and 
                        properly assignable for ultimate return by the 
                        contractor, subject to the condition that the 
                        contractor shall submit to the Secretary an 
                        estimate of any remaining construction costs, 
                        as adjusted, by not later than 90 days after 
                        the date of submission of the initial request 
                        of the contractor;
                            (ii) require that construction costs or 
                        other capitalized costs incurred after the 
                        effective date of the contract or not reflected 
                        in the rate schedule referred to in clause (i), 
                        and properly assignable to the contractor, 
                        shall be repaid--
                                    (I) by not later than 5 years after 
                                the date of notification of the 
                                allocation, if the amount is a result 
                                of a collective annual allocation of 
                                capital costs to the exercising 
                                contract conversion under this 
                                subsection of less than $5,000,000; or
                                    (II) in accordance with applicable 
                                reclamation laws, if the amount is 
                                $5,000,000 or more; and
                            (iii) continue in effect for the period 
                        during which the contractor pays applicable 
                        charges, in accordance with section 9(c)(1) of 
                        the Act of August 4, 1939 (53 Stat. 1194, 
                        chapter 418), and other applicable law.
            (4) Conditions.--A contract entered into pursuant to 
        paragraph (1), (2), or (3)--
                    (A) shall not be adjusted on the basis of the type 
                of prepayment financing used by the applicable water 
                users' association;
                    (B) shall conform to any other agreements, such as 
                applicable settlement agreements and newly constructed 
                appurtenant facilities agreements; and
                    (C) shall not modify any other water service, 
                repayment, exchange, or transfer contractual right 
                between the applicable water users' association and the 
                Bureau of Reclamation, or any right, obligation, or 
                relationship of the water users' association and any 
                affected landowner in accordance with applicable State 
                law.
    (c) Accounting.--
            (1) Final cost allocation.--Any amount paid pursuant to 
        subsection (b) shall be subject to adjustment after a final 
        cost allocation by the Secretary.
            (2) Contractor responsibility.--
                    (A) In general.--If a final cost allocation under 
                paragraph (1) indicates that a cost properly assignable 
                to a contractor covered by this section is greater than 
                the amount paid by the contractor, the contractor shall 
                be obligated to pay the remaining allocated costs in 
                accordance with an additional repayment contract under 
                subparagraph (B).
                    (B) Additional repayment contracts.--Subject to any 
                other provision mutually agreed to by all affected 
                parties, the term of an additional repayment contract 
                under subparagraph (A) shall be--
                            (i) not less than 1 year; and
                            (ii) not more than 10 years.
            (3) Credit.--If a final cost allocation under paragraph (1) 
        indicates that a cost properly assignable to a contractor are 
        less than the amount paid by the contractor, the Secretary 
        shall credit the amount of the overpayment as an offset against 
        any outstanding or future obligation of the contractor, with 
        the exception of any Central Valley Project Restoration Fund 
        charge assessed pursuant to section 3407(d) of Public Law 102-
        575 (106 Stat. 4727).
    (d) Applicability of Certain Provisions.--
            (1) Effect of existing law.--On compliance by a contract or 
        with, and discharge of, an obligation of repayment of 
        construction costs pursuant to a contract under subsection 
        (b)(2)(A), subsections (a) and (b) of section 213 of the 
        Reclamation Reform Act of 1982 (43 U.S.C. 390mm) shall apply to 
        any affected land.
            (2) Effect of other obligations.--On payment by a 
        contractor of any amount required under a repayment contract 
        under subsection (b)(2)(A), the obligation of a contractor to 
        repay construction costs or other capitalized costs described 
        in subsection (b)(2)(B), (b)(3)(B), or (c) shall not affect--
                    (A) the status of the contractor as having repaid 
                all construction costs assignable to the contractor; or
                    (B) the applicability of subsections (a) and (b) of 
                section 213 of the Reclamation Reform Act of 1982 (43 
                U.S.C. 390mm).
    (e) Effect on Existing Law.--Nothing in this section alters--
            (1) any repayment obligation of a water service or 
        repayment contractor receiving water from the same water 
        project, or shifts any cost that would otherwise have been 
        properly assignable to--
                    (A) a water users' association identified in 
                paragraph (1), (2), or (3) of subsection (b), 
                including--
                            (i) operation and maintenance costs;
                            (ii) construction costs; or
                            (iii) any other capitalized cost incurred 
                        after the date of enactment of this Act; or
                    (B) another contractor;
            (2) any specific requirement for the disposition of amounts 
        received as repayment by the Secretary under 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.));
            (3) the priority of a water service or repayment contractor 
        to receive water; or
            (4) except as expressly provided in this section, any 
        obligation under the reclamation laws, including the 
        continuation of any Central Valley Project Restoration Fund 
        charge assessed pursuant to section 3407(d) of Public Law 102-
        575 (106 Stat. 4727), of a water service or repayment 
        contractor making a prepayment pursuant to this section.
    (f) Conforming Amendment.--Section 4011 of the Water Infrastructure 
Improvements for the Nation Act (Public Law 114-322; 130 Stat. 1878) is 
repealed.

SEC. 10. SAVINGS CLAUSE.

    Nothing in this Act or an amendment made by this Act shall be 
interpreted or implemented in a manner that--
            (1) preempts or modifies any obligation of the United 
        States or an eligible entity under Federal law to act in 
        accordance with applicable State law, including applicable 
        State water law; or
            (2) affects or modifies any obligation under Federal 
        environmental law.
                                 <all>