Bill would expand federal water storage aid and add grants for natural water retention projects

The Interior Secretary may provide financial assistance for storage projects within any Reclamation State. Projects with an authorized feasibility study under the Infrastructure Investment and Jobs Act would be eligible for funding. The Secretary may also conduct or take part in feasibility studies of federally owned or State-led storage projects. Assistance must be spread across projects in multiple Reclamation States.

Congress would replace the eligibility rules for small storage grants with two kinds of eligible projects. One kind has 200 to 30,000 acre-feet of storage capacity and either increases surface or groundwater storage or moves water to or from storage. The other kind has recharge capacity of 200 to 150,000 acre-feet a year, works on groundwater storage or recovery, and stabilizes groundwater levels. The Secretary must spread grants across multiple Reclamation States.

Congress would change "5" to "10" in the section of the Infrastructure Investment and Jobs Act that ends the small storage grant authority. The bill also says nothing in the section overrides State or Federal water law, interstate compacts, or treaties, authorizes the Federal Government to acquire water, or infringes on any water rights.

The Interior Secretary, acting through the Bureau of Reclamation, may award grants for natural water retention and release projects. Eligible applicants include States, Indian Tribes, municipalities, irrigation and water districts, groups with water or power delivery authority, and nonprofit partners with written support. Projects use mostly natural materials and mimic natural river, wetland, or water processes, such as aquifer recharge or floodplain retention. A project costing $20 million or less must show it would help optimize water storage or delivery in a watershed with a Bureau of Reclamation facility. A project costing more than $20 million must also meet the Secretary's independent finding of added water retention or delivery, with a credible estimate of storage benefit in wet, normal, and dry years.

The federal share of a natural water retention and release project would be no more than 50 percent of the total cost, and federal funds would not have to be repaid. The Secretary must spread these grants across multiple Reclamation States.