Sec. 104. Eligible desalination project development

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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: In this paragraph: The term eligible desalination project means any project located in a Reclamation State, or for which the construction, operation, sponsorship, or funding is the responsibility of, and the primary water supply benefit accrues to, 1 or more entities in a Reclamation State, that— involves an ocean or brackish water desalination facility— constructed, operated, and maintained by a State, Indian Tribe, irrigation district, water district, or other organization with water or power delivery authority; or 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— direct sponsorship or funding; or indirect sponsorship or funding, such as by paying for the water provided by the facility; provides a Federal benefit; and is consistent with applicable Federal and State resource protection laws, including any law relating to the protection of marine protected areas. 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 . 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. 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— not more than 25 percent of the total cost of the eligible desalination project; or in the case of a rural desalination project, the applicable percentage determined in accordance with clause (ii). 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— 75 percent of the total costs of the appraisal studies, up to $200,000; and if the total costs of the appraisal studies are more than $200,000, 50 percent of any amounts over $200,000. 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. 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. 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— an overwhelming Federal interest in the rural desalination project; and the sponsor of the rural desalination project demonstrating financial hardship. 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. Participation by the Secretary in an eligible desalination project under this paragraph shall not occur unless— the eligible desalination project is included in a State-approved plan; or the participation has been requested by the Governor of the State in which the eligible desalination project is located; the State or local sponsor of the eligible desalination project determines, and the Secretary concurs, that— the eligible desalination project— is technically and financially feasible; provides a Federal benefit; and is consistent with applicable Federal and State laws (including regulations); sufficient non-Federal funding is available to complete the eligible desalination project; and the non-Federal project sponsor is financially capable of funding the non-Federal share of the project costs; and 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. To be eligible to receive a grant under this subsection, a desalination project shall comply with— applicable Federal environmental laws, including the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ); and applicable State environmental laws. In participating in an eligible desalination project under this subsection, the Secretary— 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 shall retain responsibility for making the independent determinations described in subparagraph (C). 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. 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. . 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: In carrying out demonstration and development activities under this section, the Secretary shall prioritize projects— for the benefit of drought-stricken States and communities; for the benefit of States that have authorized funding for research and development of desalination technologies and projects; 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. ); that demonstrably leverage the experience of or partner with— international entities with considerable expertise in desalination, such as Israel; or nonprofit water research foundations or institutions with expertise in technology innovation to advance sustainable desalination processes or brine management; located in a region that— is impacted by salinity or brackish groundwater; and has agricultural production of national importance; 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; that maximize the use of renewable energy to power desalination facilities; that maximize energy efficiency so that the lifecycle energy demands of desalination are minimized; located in a region that has employed strategies to increase water conservation and the capture and recycling of wastewater and stormwater; and that, in the case of ocean desalination facilities— use a subsurface intake; or 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; are sited and designed to ensure that the disposal of wastewater (including brine from the desalination process)— is not discharged in a manner that increases salinity levels in Federal or State marine protected areas; and achieves ambient salinity levels within a reasonable distance from the discharge point; 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; do not cause significant unmitigated harm to aquatic life; and include a construction and operation plan designed to minimize loss of coastal habitat as well as aesthetic, noise, and air quality impacts. . 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. 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 ). Section 8(a) of the Water Desalination Act of 1996 ( 42 U.S.C. 10301 note; Public Law 104–298 ) is amended— in the first sentence, by striking 2021 and inserting 2028 ; and in the second sentence, by striking $1,000,000 and inserting $3,000,000 .

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