(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.

In this Act:

(1) ANNUAL REPORT.—The term “annual report” means a report required under section 102(a).

(2) 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.

(3) DISADVANTAGED COMMUNITY.—The term “disadvantaged community” means a low-income community (as defined in section 45D(e) of the Internal Revenue Code of 1986).

(4) 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)).

(5) 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.

(6) 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; 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.

(7) 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.

(8) 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.

(9) 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).

(10) PUBLIC BENEFIT.—The term “public benefit”, with respect to a non-Federal storage project or extraordinary operation and maintenance work, means—

(A) a public benefit identified under the reclamation laws;

(B) a drinking water benefit for 1 or more disadvantaged communities, including through groundwater recharge, if—

(i) the drinking water meets applicable regulatory standards;

(ii) the drinking water benefit exceeds express mitigation or compliance requirements under Federal or State law;

(iii) the modified project reduces the unit cost per volume, improves water quality, or increases the reliability or quantity of the drinking water supply of the disadvantaged community as compared to the condition of the drinking water or other sources of drinking water available before the modification of the project;

(iv) the drinking water benefit is quantified in a public process, including outreach to representatives of the affected disadvantaged community at the earliest practicable opportunity, to determine the scope of funding; and

(v) negative impacts on water quality for other communities are not caused as part of the modified project;

(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.

(11) 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.)).

(12) 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).

(13) SECRETARY.—The term “Secretary” means the Secretary of the Interior.

(14) STORAGE PROJECT.—The term “storage project” means a Federal storage project or a non-Federal storage project.

(15) 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)).

(16) 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.

(17) 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.

(a) Storage projects.—

(1) DEFINITIONS.—Section 4007 of the Water Infrastructure Improvements for the Nation Act (43 U.S.C. 390b note; Public Law 114–322) is amended—

(A) by striking subsections (a) and (b) and inserting the following:

“(a) Definitions.—In this section:

“(1) 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.

“(2) 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.

“(3) ELIGIBLE PROJECT.—The term ‘eligible project’ means a project described in subsection (b).

“(4) FEDERAL BENEFIT; NATURAL WATER RETENTION AND RELEASE PROJECT; NON-FEDERAL STORAGE PROJECT; PUBLIC BENEFIT; STORAGE PROJECT; WATERSHED; WATERSHED RESTORATION PLAN.—The terms ‘Federal benefit’, ‘natural water retention and release project’, ‘non-Federal storage project’, ‘public benefit’, ‘storage project’, ‘watershed’, and ‘watershed restoration plan’ have the meanings given the terms in section 2 of the Support To Rehydrate the Environment, Agriculture, and Municipalities Act.

“(5) 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.”;

(B) by striking subsections (e), (f), and (i); and

(C) by redesignating subsections (c), (d), (g), (h), (j), and (k) as subsections (b), (c), (d), (e), (f), and (g), respectively.

(2) NON-FEDERAL STORAGE PROJECTS.—Section 4007(b) of the Water Infrastructure Improvements for the Nation Act (43 U.S.C. 390b note; Public Law 114–322) (as redesignated by paragraph (1)(C)) is amended—

(A) in the subsection heading, by striking “State-led” and inserting “Non-Federal”;

(B) by striking “State-led” each place it appears and inserting “non-Federal”;

(C) in paragraph (1), by striking “project in” and all that follows through the period at the end and inserting “project.”;

(D) in paragraph (2)—

(i) in the paragraph heading, by inserting “or Indian Tribe” after “Governor”;

(ii) in the matter preceding subparagraph (A), by striking “Participation” and inserting “Subject to paragraph (5), in the case of natural water retention and release projects, participation”;

(iii) in subparagraph (A), by inserting “or the sponsoring Indian Tribe, in the case of a Tribal project” after “located”; and

(iv) in subparagraph (B), in the matter preceding clause (i), by striking “State or local sponsor” and inserting “State, Tribal, or local”; and

(E) by adding at the end the following:

“(5) NATURAL WATER RETENTION AND RELEASE PROJECTS.—Participation by the Secretary of the Interior in a natural water retention and release project under this subsection shall only occur if—

“(A) for a project that costs not more than $10,000,000, 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) for a project that costs more than $10,000,000—

“(i) the requirements described in paragraph (2) have been met; and

“(ii) the eligible entity determines, and the Secretary of the Interior 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.

“(6) OTHER AUTHORIZATION REQUIRED.—Non-Federal storage projects with a Federal cost-share exceeding $250,000,000 may not be carried out under this subsection.

“(7) 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 this subsection 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 this subsection shall not exceed 90 percent of the total cost of the natural water retention and release project.

“(8) REIMBURSABILITY OF FUNDS.—

“(A) NONREIMBURSABLE FUNDS.—

“(i) PUBLIC BENEFITS.—Subject to paragraph (7), any funds provided by the Secretary of the Interior to an eligible entity under this subsection for the value of public benefits described in subparagraphs (A) and (B) of section 2(10) of the Support To Rehydrate the Environment, Agriculture, and Municipalities Act shall be considered nonreimbursable.

“(ii) WATER SUPPLY BENEFITS OF EQUAL VALUE TO PUBLIC BENEFITS.—Subject to paragraph (7), any funds provided by the Secretary of the Interior for the value of Federal benefits provided under section 2(6)(D) of the Support To Rehydrate the Environment, Agriculture, and Municipalities Act 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 funds provided to an eligible entity under subparagraph (A) are less than the amount of the maximum Federal cost share applicable to the eligible project under paragraph (7), the Secretary may provide reimbursable funds to an eligible entity for any Federal benefits provided under section 2(6)(D) of the Support To Rehydrate the Environment, Agriculture, and Municipalities Act, subject to the limitation that the total amount of Federal funds provided to an eligible entity for the eligible project under this subsection may not exceed the amount of the maximum Federal cost share applicable under paragraph (7).

“(9) PRIORITY.—In providing grants to eligible entities for eligible projects under this subsection, the Secretary of the Interior 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:

“(A) Provides multiple benefits, including substantial quantities of each of the following:

“(i) Water supply reliability benefits for States and communities that are frequently drought-stricken.

“(ii) Fish and wildlife benefits.

“(iii) Water quality improvements.

“(B) 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.

“(C) Advances water management plans across a multi-State area, such as drought contingency plans in the Colorado River Basin.

“(D) Is collaboratively developed or supported by multiple stakeholders.

“(E) 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.”.

(3) AUTHORIZATION OF APPROPRIATIONS.—Section 4007(e) of the Water Infrastructure Improvements for the Nation Act (43 U.S.C. 390b note; Public Law 114–322) (as redesignated by paragraph (1)(C)) is amended by striking paragraphs (1) and (2) and inserting the following:

“(1) IN GENERAL.—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 of the Interior to carry out this section $750,000,000 for the period of fiscal years 2025 through 2029, of which $50,000,000 is authorized to be appropriated during that period to carry out natural water retention and release projects under subsection (b)(5).

“(2) ALLOCATION.—Subject to paragraphs (3) and (4), the Secretary of the Interior 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) OTHER STORAGE PROJECTS.—The funds appropriated under paragraph (1) may not be used for storage projects other than the storage projects described in paragraph (2) unless authorized by an Act of Congress.

“(5) 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 the capital and operations, maintenance, and replacement costs of public benefits.

“(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.”.

(b) Duration.—Section 4013(2) of the Water Infrastructure Improvements for the Nation Act (43 U.S.C. 390b note; Public Law 114–322) is amended by striking “projects under construction in”.

(c) 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)”.

(d) 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).

(e) Calfed reauthorization.—The Calfed Bay-Delta Authorization Act (Public Law 108–361; 118 Stat. 1681; 136 Stat. 221) is amended by striking ‘‘2022’’ each place it appears and inserting ‘‘2028’’.

(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 identifies—

(1) each Federal storage project that the Secretary—

(A) has found to be feasible; and

(B) recommends that Congress authorize for construction;

(2) each non-Federal storage project that requires congressional authorization for which the Secretary—

(A) has approved feasibility determinations; and

(B) recommends that Congress authorize the project for construction; and

(3) each feasibility report that the Secretary recommends that Congress authorize for proposed Federal storage projects.

(b) Publication.—On submission of an annual report to Congress, the Secretary shall make the annual report publicly available, including through publication on the internet.

(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 2025 through 2029.”.

(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”.

(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 2025 through 2029, 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 “2028”; and

(2) in the second sentence, by striking “$1,000,000” and inserting “$3,000,000”.

(a) In general.—In addition to any amounts appropriated under section 50231 of Public Law 117–169 (commonly known as the “Inflation Reduction Act of 2022”) (136 Stat. 2053) or any amounts made available to carry out that section under any other law, there is authorized to be appropriated to the Secretary to carry out that section $100,000,000 for the period of fiscal years 2025 through 2029.

(b) Multiple benefit projects.—The Secretary is encouraged to 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.

(a) Definitions.—Section 9601 of the Omnibus Public Land Management Act of 2009 (43 U.S.C. 510) is amended—

(1) by redesignating paragraphs (1), (2), (3), (4), (5), (6), and (7) as paragraphs (4), (7), (9), (10), (11), (12), and (3), respectively, and moving the paragraphs so as to appear in numerical order;

(2) by inserting before paragraph (3) (as so redesignated) the following:

“(1) 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—

“(A) the project with the restored capacity, if the extraordinary operation and maintenance work under section 9603 is intended to restore lost project capacity;

“(B) the project prior to undertaking the extraordinary operation and maintenance work under section 9603, if the extraordinary operation and maintenance work is for any purpose other than to restore lost project capacity; or

“(C) project operations of the modified project without an increase in benefits for a new project beneficiary under section 9603(e)(1)(E).

“(2) DISADVANTAGED COMMUNITY.—The term ‘disadvantaged community’ has the meaning given the term ‘low-income community’ in section 45D(e) of the Internal Revenue Code of 1986.”;

(3) in paragraph (3) (as so redesignated)—

(A) in subparagraph (A), by striking “and” at the end;

(B) in subparagraph (B), by striking the period at the end and inserting “; and”; and

(C) by adding at the end the following:

“(C) inclusive of any modifications to the facilities or facility components authorized under section 9603(e).”;

(4) by inserting after paragraph (4) (as so redesignated) the following:

“(5) NEW BENEFIT.—The term ‘new benefit’ means the increase in benefits of the modified project compared to the benefits provided by—

“(A) the project with restored capacity, if the extraordinary operation and maintenance work under section 9603 is intended to restore lost project capacity; or

“(B) the project as the project existed prior to undertaking the extraordinary operation and maintenance work under section 9603, if the extraordinary operation and maintenance work is for any purpose other than to restore lost project capacity.

“(6) 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 supply from the project.”; and

(5) by inserting after paragraph (7) (as so redesignated) the following:

“(8) 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”..”.

(b) 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 (2), by striking “the costs” and inserting “from the Aging Infrastructure Account established by subsection (d)(1) or any other applicable available account the costs, including reimbursable costs and nonreimbursable costs,”; and

(2) by adding at the end the following:

“(4) DETERMINATION OF NONREIMBURSABLE COSTS.—Any costs advanced under paragraph (2) that are allocated to nonreimbursable purposes of the project, including public benefits described in section 2(10)(B) of the Support To Rehydrate the Environment, Agriculture, and Municipalities Act, shall be considered to be nonreimbursable costs.”.

(c) Aging infrastructure account conforming amendments.—Section 9603(d) of the Omnibus Public Land Management Act of 2009 (43 U.S.C. 510b(d)) is amended—

(1) in paragraph (1), in the matter preceding subparagraph (A), by striking “the funds” and inserting “reimbursable funds”;

(2) in paragraph (2)—

(A) by striking “to fund” and inserting “to fund,”; and

(B) by striking “the funds for” and inserting “reimbursable funds for,”;

(3) in paragraph (3)(A), by striking “the amounts” and inserting “the reimbursable amounts”; and

(4) in paragraph (4)(B)(i), by inserting “, including projects under subsection (e)” after “this section”.

(d) Authorization To modify transferred works To increase public benefits and other project benefits as part of extraordinary operation and maintenance work.—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 transferred works To increase public benefits and other project benefits as part of extraordinary operation and maintenance work.—

“(1) AUTHORIZATION; REQUIREMENTS.—

“(A) IN GENERAL.—The Secretary, in consultation with any transferred works operating entity and any project beneficiaries and as part of extraordinary operation and maintenance work under this section, may develop and carry out a proposal to modify project features for transferred works 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 planned extraordinary operation and maintenance work, in the case of a project for which the original cost of the planned extraordinary operation and maintenance work exceeds $100,000,000; or

“(ii) $25,000,000, in the case of a project for which the original cost of the planned extraordinary operation and maintenance work 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, as compared to the original planned extraordinary operation and maintenance work, 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; and

“(ii) consistent with paragraph (2), 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.

“(G) ELIGIBILITY OF CERTAIN PROJECT MODIFICATIONS.—If a project modification that is otherwise eligible under subparagraph (A) was in the planning, design, or construction phase as of December 31, 2022, the project modification shall remain eligible to be developed under that subparagraph.

“(2) 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 (1)(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 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 (1)(D); or

“(II) (aa) an explanation that the Secretary has determined that no consent is required under paragraph (1)(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 (1)(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 transferred works operating entity 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 (1)(D) by 1 year.

“(3) 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 (1), to provide that—

“(A) annual operation and maintenance costs associated with nonreimbursable purposes of the project 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.

“(4) INCENTIVE FOR BENEFITTING ENTITIES TO PARTICIPATE IN PROJECTS WITH INCREASED PUBLIC BENEFITS.—

“(A) IN GENERAL.—The total amount of reimbursable capital costs, as determined under paragraph (3), for extraordinary operation and maintenance work described in subparagraph (B) 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.

“(B) DESCRIPTION OF EXTRAORDINARY OPERATION AND MAINTENANCE WORK.—The extraordinary operation and maintenance work referred to in subparagraph (A) is extraordinary operation and maintenance work involving a project modification that would increase nonreimbursable public benefits without increasing reimbursable municipal, industrial, or irrigation benefits from the original design of the planned extraordinary operation and maintenance work.

“(5) REIMBURSABLE FUNDS.—All reimbursable costs under this subsection shall be repaid in accordance with subsection (b).”.

(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.).

(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 2025 through 2029”.

(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”.

(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.”; and

(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 2025 through 2029, 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.”.

(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.

(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).”.

Section 4013 of the Water Infrastructure Improvements for the Nation Act (43 U.S.C. 390b note; Public Law 114–322) is amended—

(1) in paragraph (1), by striking “and” at the end;

(2) in paragraph (2), by striking the period at the end and inserting “; and”; and

(3) by adding at the end the following:

“(3) subsections (a), (b), (c), (d), and (f) of section 4011, which shall expire on December 31, 2028.”.

No water recycling project, non-Federal storage project, eligible desalination project, or a project eligible for amounts made available under section 105 shall receive Federal funding under this Act unless the applicable project complies with—

(1) applicable Federal environmental laws; and

(2) applicable State environmental laws.

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.