Sec. 3. Surface and groundwater storage and supporting projects

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In this section: The term appropriate committees of Congress means— the Committee on Appropriations of the Senate; the Committee on Energy and Natural Resources of the Senate; the Committee on Appropriations of the House of Representatives; and the Committee on Natural Resources of the House of Representatives. The term eligible entity means— any State, political subdivision of a State, department of a State, or public agency organized pursuant to State law; 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; a water users’ association; an agency established by an interstate compact; and an agency established under State law for the joint exercise of powers.

The term federally owned storage project means any project in a Reclamation State— that involves the construction, expansion, upgrade, or capital repair of— a surface water storage facility; or a facility conveying water to or from a surface or groundwater storage facility; to which the United States holds title; and that was authorized to be constructed, operated, and maintained pursuant to— the reclamation laws; or the Act of August 11, 1939 (commonly known as the Water Conservation and Utilization Act ) ( 16 U.S.C. 590y et seq.).

The term non-Federal storage project means any project in a Reclamation State that— involves the construction, expansion, upgrade, or capital repair by an eligible entity of— a surface or groundwater storage facility that is not federally owned; or a facility that is not federally owned conveying water to or from a surface or groundwater storage facility; and provides a benefit in meeting any obligation under applicable Federal law (including regulations). 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.

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 ). The Secretary may provide a grant under this section to an eligible entity to carry out, within a Reclamation State— a federally owned storage project in accordance with subsection (c); or a non-Federal storage project in accordance with subsection (d). 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.

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. The construction of a federally owned storage project that is the subject of an agreement under this subsection shall not commence until the Secretary— determines that the proposed federally owned storage project is feasible in accordance with the reclamation laws; determines that— the federally owned storage project provides a Federal benefit in accordance with the reclamation laws; and 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 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.

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. 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.). 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— 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 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. 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. The Secretary shall only fund a design or study activity for a non-Federal storage project under this subsection if— Federal participation has been requested by the Governor of the State in which the non-Federal storage project is located; and the Secretary has identified the potential for Federal benefit sufficient to proceed. Participation by the Secretary in the construction of a non-Federal storage project under this subsection shall not occur unless— 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 the applicable non-Federal sponsor determines, and the Secretary concurs, that— the non-Federal storage project is technically and financially feasible; the non-Federal storage project provides a Federal benefit in accordance with the reclamation laws; 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 each sponsor of the non-Federal project is financially capable of funding the non-Federal share of the project costs. 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. 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.). In participating in a non-Federal storage project under this subsection, the Secretary— shall— 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 retain responsibility for making the independent determinations described in paragraphs

(2)and (3); and may prepare studies supplementary to the studies described in clause (i)(I), on— request of the sponsor of the non-Federal storage project; and agreement by the Secretary. 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— any additional requirements necessary to provide sufficient information for making the independent determinations described in paragraphs (2)(B) and (3); and 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. The Secretary shall finalize the guidelines under clause

(i)by not later than 1 year after the date of enactment of this Act. 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). 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. 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. 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. 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. 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). The Commissioner of Reclamation shall confer with the appropriate committees of Congress before submitting the recommendations under clause (i). 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. 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. 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. 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). 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). 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). 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. 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. 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 . Section 4007 of the Water Infrastructure Improvements for the Nation Act ( 43 U.S.C. 390b note; Public Law 114–322 ) is repealed.

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