Sec. 2. Grants to States and Indian Tribes for multibenefit programs to voluntarily repurpose agricultural land to reduce consumptive water use

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Section 101 of the Reclamation States Emergency Drought Relief Act of 1991 ( 43 U.S.C. 2211 ) is amended— by redesignating subsections

(b)through

(d)as subsections

(c)through (e), respectively; and by inserting after subsection

(a)the following: In this subsection: The term basin-scale means an eligible landscape area or sub-basin that— includes multiple water users; or aligns with the boundaries of a State, Tribal, regional, or local land or water management agency. The term covered program means an existing program of an eligible entity or a pilot program proposed to be carried out by an eligible entity, the purpose of which is to voluntarily repurpose or provide for the transition of, over a period of years, irrigated agricultural land to reduce consumptive water use, while providing community health, economic well-being, water supply, habitat, and climate benefits. The term eligible entity means— a State (including a designated State agency); or a Tribal government. The Secretary shall carry out a program under which the Secretary shall provide competitive matching grants to eligible entities, in accordance with this subsection, to carry out covered programs. To be eligible for a grant under paragraph (2), a covered program shall— be basin-scale; reduce consumptive water use; repurpose or transition irrigated agricultural land for not less than 10 years; and provide, for not less than 10 years, 1 or more other measurable benefits to the environment or community in which the program is being carried out, including— restoring upland habitat; restoring riparian habitat; creating pollinator habitat; restoring flood plains connection to stream or river channels; creating dedicated multibenefit recharge areas; dry-land farming or planting non-irrigated or water-saving cover crops; switching from irrigated agriculture to non-irrigated rangeland; creating park or community recreation areas; acquiring a conservation easement on land taken out of irrigated agricultural production to permanently protect a new use of the land; facilitation of renewable energy projects that have an overall greenhouse gas reduction; and reestablishment of Tribal land uses. To be eligible for a grant under paragraph (2), an eligible entity shall submit to the Secretary an application in such form, at such time, and containing such information as the Secretary may require, including a description of the manner in which the eligible entity would use the grant funds to carry out projects under the covered program that reduce consumptive water use by converting irrigated agricultural land to a new use that— reduces groundwater withdrawals or consumptive water use for not less than 10 years; and provides other measurable benefits to the environment or communities in which the covered program is being carried out. In providing grants under paragraph (2), the Secretary shall give priority to covered programs that— provide direct benefits to disadvantaged communities; or were developed through a multi-stakeholder planning process. Subject to subparagraph (C), the Secretary (acting through the Director of the United States Fish and Wildlife Service) or the Secretary of Commerce (acting through the Director of the National Marine Fisheries Service), as applicable, shall seek to enter into voluntary conservation agreements, with the individuals and entities described in subparagraph (B), under which the individuals and entities entering into the agreements would carry out on formerly irrigated agricultural land converted under a covered program carried out under this subsection or on associated aquatic resources actions that contribute to the recovery of species listed as endangered or threatened under the Endangered Species Act of 1973 ( 16 U.S.C. 1531 et seq. ). The individuals and entities referred to in subparagraph

(A)are the following: Eligible entities provided grants to carry out a covered program under paragraph (2). Owners of irrigated agricultural land converted under a covered program carried out under this subsection. Owners of land adjacent to irrigated agricultural land converted under a covered program carried out under this subsection. Annually, the Secretary shall submit to the appropriate committees of Congress a report that describes the status of covered programs for which grant funds have been provided under this subsection during the period covered by the report, including a description of— the achievements and effectiveness of each covered program with respect to reducing groundwater withdrawals and reducing consumptive water use; the quantity of groundwater or surface water that was conserved; and the community agricultural sustainability or environmental benefits that were achieved under each covered program. There is authorized to be appropriated to carry out this subsection $250,000,000 for the period of fiscal years 2024 through 2028. Of the amounts made available for a fiscal year under subparagraph (A), 50 percent shall be used— to provide grants for covered programs that are pilot programs; or if no applications for grants for a pilot program for the applicable fiscal year are submitted, to provide grants to eligible covered programs that are existing programs. . Section 102(c) of the Reclamation States Emergency Drought Relief Act of 1991 ( 43 U.S.C. 2212 ) is amended, in the first sentence of the matter preceding paragraph (1), by striking section 101(c) and inserting section 101(d) . Section 301 of the Reclamation States Emergency Drought Relief Act of 1991 ( 43 U.S.C. 2241 ) is amended by striking section 303 of this Act and inserting section 101(b)(7)(A) or 303 . Section 104 of the Reclamation States Emergency Drought Relief Act of 1991 ( 43 U.S.C. 2214 ) is amended by striking subsection

(a)and inserting the following: The programs and authorities established under this title shall only become operative in a Reclamation State or in the State of Hawaii if— the Governor of the affected State, or the governing body of the affected Indian Tribe with respect to a reservation, has made a request for temporary drought assistance; and the Secretary has determined that the temporary assistance is merited; a drought emergency has been declared by the Governor of the affected State; a drought contingency plan has been approved in accordance with title II; for purposes of subsection

(b)of section 101, the affected State has implemented a covered program under that subsection; or in the case of a Colorado River Basin State, by operation of the Colorado River Basin Drought Contingency Plan executed in accordance with the Colorado River Drought Contingency Plan Authorization Act ( Public Law 116–14 ; 133 Stat. 850). .

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