Sec. 6. Reclamation infrastructure finance and innovation pilot program

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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). A project eligible to receive assistance under the pilot program under this section is a water supply project that, as determined by the Secretary— is located in— the State of Alaska; the State of Hawaii; or 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 ); 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 is otherwise eligible for assistance under this section. 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— the project meets the criteria described in paragraph (1); 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; 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 the project meets such other criteria as the Secretary may establish. 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. The following entities are eligible to receive assistance under this section: An entity described in section 5025 of the Water Resources Reform and Development Act of 2014 ( 33 U.S.C. 3904 ). A conservancy district, Reclamation district, irrigation district, or water district. A canal company or mutual water company. A water users’ association. An agency established by an interstate compact. An agency established under State law for the joint exercise of powers. Any other individual or entity that has the capacity to contract with the United States under the reclamation laws. In selecting eligible projects to receive assistance under the pilot program under this section, the Secretary shall ensure diversity with respect to— project type; and geographical location within the States referred to in subsection (b)(1)(A). The following provisions of law shall apply to the pilot program under this section: 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— any reference contained in those sections to the Secretary of the Army shall be considered to be a reference to the Secretary; 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); 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 subsections

(e)and

(f)of section 5030 of that Act ( 33 U.S.C. 3909 ) shall not apply with respect to this section. 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. Other applicable environmental laws, including the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq.). 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. 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. 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). 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.

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