Sec. 103. Storage and conveyance projects

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In this section: The term eligible entity means— a State, Indian Tribe, municipality, irrigation district, water district, wastewater district, or other organization with water or power delivery authority; a State, regional, or local authority, the members of which include 1 or more organizations with water or power delivery authority; or an agency established under State law for the joint exercise of powers; a combination of entities described in subparagraphs

(A)and (B); or with respect to a natural water retention and release project, a qualified partner. The term eligible project means a project described in subsection (c). The term program means the grant program established under subsection (b). The term Reclamation State means a State or territory described in the first section of the Act of June 17, 1902 (32 Stat. 388, chapter 1093; 43 U.S.C. 391 ). The Secretary shall establish a program to provide grants to eligible entities on a competitive basis for the study, planning, design, and construction of non-Federal storage projects that provide substantial water supply and other benefits to a Reclamation State in accordance with this section. A project shall be eligible for a grant under this section if the project— involves the construction or expansion by an eligible entity of— a surface or groundwater storage project that is not federally owned; a facility that is not federally owned that conveys water to or from surface or groundwater storage; or a natural water retention and release project; has a Federal cost-share of not more than $250,000,000; is located in a Reclamation State; is constructed, operated, and maintained by an eligible entity; and provides a Federal benefit. The Secretary may provide a grant to an eligible entity for an eligible project under the program— for the study of the eligible project, if the Secretary has identified the potential for sufficient Federal benefits from the eligible project to proceed; for the construction of a non-Federal storage project that is not a natural water retention and release project, if— the eligible entity determines through the preparation of a feasibility study or equivalent study, and the Secretary concurs, that the eligible project— is technically and financially feasible; provides a Federal benefit; and is consistent with applicable Federal and State laws; the eligible entity has sufficient non-Federal funding available to complete the eligible project, as determined by the Secretary; the eligible entity is financially solvent, as determined by the Secretary; the Governor, a member of the cabinet of the Governor, or the head of a department of the Reclamation State in which the non-Federal storage project is located supports the project or Federal funding of the project; and not later than 30 days after the date on which the Secretary concurs with the determinations under subparagraph

(A)with respect to the eligible project, the Secretary submits to Congress written notice of the determinations; and for a natural water retention and release project— that costs not more than $10,000,000, if the eligible entity demonstrates that the natural water retention and release project would help optimize the storage or delivery of water in a watershed in which a Bureau of Reclamation facility is located; and that costs more than $10,000,000, if— the conditions described in paragraph

(2)have been met; and the eligible entity determines, and the Secretary concurs, that— 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 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. In providing grants to eligible entities for eligible projects under the program, the Secretary shall give funding priority to an eligible project that directly or through watershed restoration plans approved with the project meets 2 or more of the following criteria: Provides multiple benefits, including substantial quantities of each of the following: Water supply reliability benefits for States and communities that are frequently drought-stricken. Fish and wildlife benefits. Water quality improvements. 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. Advances water management plans across a multi-State area, such as drought contingency plans in the Colorado River Basin. Is collaboratively developed or supported by multiple stakeholders. 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. Except as provided in subparagraph (B), the Federal share of the cost of any eligible project provided a grant under the program shall not exceed 25 percent of the total cost of the eligible project. The Federal share of the cost of a natural water retention and release project provided a grant under the program shall not exceed 90 percent of the total cost of the natural water retention and release project. Subject to paragraph (1), any funds provided by the Secretary to an eligible entity under the program for the value of public benefits described in subparagraphs

(A)and

(B)of section 2(8) shall be considered nonreimbursable. Subject to paragraph (1), any funds provided by the Secretary for the value of Federal benefits provided under section 2(8)(D) shall be considered nonreimbursable to the extent that the value of the Federal benefits does not exceed the value of public benefits funded under clause

(i)that are fish and wildlife or water quality benefits. If any funding provided under subparagraph

(A)is less than 25 percent of the total cost of the eligible project, the Secretary may provide reimbursable funds to an eligible entity for any Federal benefits provided under section 2(8)(D) for not more than 25 percent of the total cost of the eligible project. In providing a grant for an eligible project under the program, the Secretary shall comply with all applicable environmental laws, including the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ). Not later than 1 year after the date of enactment of this Act, the Secretary shall issue guidance on the implementation of the program, including guidelines for the preparation of feasibility studies or equivalent studies by eligible entities. At the end of each fiscal year, the Secretary shall make available on the website of the Department of the Interior an annual report that lists each eligible project for which a grant has been awarded under this section during the fiscal year. The Comptroller General of the United States shall conduct an assessment of the administrative establishment, solicitation, selection, and justification process with respect to the funding of grants under this section. The planning, design, and construction of a conveyance system for an eligible project shall be eligible for grant funding under the program. In addition to amounts made available under section 40901(1) of the Infrastructure Investment and Jobs Act ( 43 U.S.C. 3201(1) ), there is authorized to be appropriated to the Secretary to carry out this section $750,000,000 for the period of fiscal years 2024 through 2028, of which $50,000,000 is authorized to be appropriated during that period to carry out natural water retention and release projects under subsection (d)(3). Subject to paragraphs

(3)and (5), the Secretary shall allocate amounts made available under paragraph

(1)among— the design and study of— non-Federal storage projects, including natural water retention and release projects; and 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 construction of— non-Federal storage projects, including natural water retention and release projects; and 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. 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. The Secretary may award funding made available under section 4007(h) of the Water Infrastructure Improvements for the Nation Act ( 43 U.S.C. 390b note; Public Law 114–322 ) to— non-Federal storage projects, including natural water retention and release projects; storage projects that are eligible for study funding under subsection (a)(1) of section 40902 of the Infrastructure Investment and Jobs Act ( 43 U.S.C. 3202 ), if the amounts made available under this subparagraph to storage projects is provided in accordance with subsections

(b)and

(c)of that section; and storage projects that have received construction funding in accordance with subsection (a)(2) of section 40902 of the Infrastructure Investment and Jobs Act ( 43 U.S.C. 3202 ), if the amounts made available to storage projects under this subparagraph is provided in accordance with subsections

(b)and

(c)of that section. The funds appropriated under paragraph

(1)may not be used for storage projects other than those described in paragraph

(2)unless authorized by an Act of Congress. 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; and the operations, maintenance, and replacement costs of public benefits described in section 2(12)(A), the capital costs of which are funded by the applicable Reclamation State. 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. 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). 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). 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 ). Title I of Public Law 108–361 (118 Stat. 1681; 123 Stat. 2860; 128 Stat. 164; 128 Stat. 2312; 129 Stat. 2407; 130 Stat. 1866; 133 Stat. 2669; 134 Stat. 1363), is amended by striking 2021 each place it appears and inserting 2027 .

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