Foa_Content_of_R26AS00034_Revised.pdf

Bureau of Reclamation

Notice of Funding Opportunity

WaterSMART: Desalination Construction Projects

Funding Opportunity Number

R26AS00034

Table of Contents

BASIC INFORMATION

ELIGIBILITY

Cost Sharing Requirement

GET READY TO APPLY

Required System Registrations

PROGRAM OVERVIEW

Program Goals

Program Description

Legislative Authority

Type of Award

PREPARE YOUR APPLICATION

Application Content and Format

Application Documents

Program Cost Restrictions

SUBMISSION REQUIREMENTS AND DEADLINES

Address to Request Application Package

Submission Dates and Times

Submission Instructions

APPLICATION REVIEW INFORMATION

Eligibility Review

Merit Review

Review and Selection Process

Risk Review

AWARD NOTICES

POST AWARD REQUIREMENTS AND ADMINISTRATION

Administration and National Policy Requirements

Reporting

BASIC INFORMATION

Announcement Type: Initial

Funding Opportunity Number: R26AS00034

Assistance Listing Number(s): 15.591

Estimated Total Program Funding: $120,000,000

Expected Number of Awards: 10

Award Ceiling: $120,000,000

Award Floor: $1,000

Approximately 10 awards will be awarded under this Notice of Funding Opportunity (NOFO), depending on the amount requested by each applicant and available Federal appropriations.

The Federal funding amount is based on a maximum 25 percent of the total cost of planning, design, and construction activities completed after the date of Reclamation’s feasibility study review findings and within three years of the application’s submittal period deadline.

Cost Sharing Required?

Yes Closing Date Explanation

This NOFO will have two application submission periods with a final closing date of August 26, 2027. The due dates for each closing period are:

The first application submission period due date is August 26, 2026, at 4:00 p.m. Mountain Daylight Time (MDT).

The second and final application submission period due date is August 26, 2027, at 4:00 p.m.

Mountain Daylight Time (MDT). Applications received after August 26, 2026, at 4:00 p.m.

Mountain Daylight Time (MDT) and before August 26, 2027, at 4:00 p.m. Mountain Daylight Time (MDT), will be considered for the second application submission period.

U.S. states and local governments may be required under Executive Order 12372, Intergovernmental Review of Federal Programs to submit their application to their State Single Point of Contact (SPOC) for review. For more information, see the Intergovernmental Review SPOC List.

Have Questions?

For questions regarding application and submission, contact the NOFO team at bor-sha-fafoa@usbr.gov.

For questions regarding applicant and project eligibility or application content, contact the Program Coordinator, Maribeth Menendez, mmenendez@usbr.gov, 303-445-2094.

Please include the NOFO number R26AS00034 in the subject line of any email correspondence.

Executive Summary Through WaterSMART, the Bureau of Reclamation (Reclamation) leverages Federal and non- Federal funding to work cooperatively with States, Tribes, and other entities as they plan for and implement actions to increase water supply and hydropower reliability. The WaterSMART Program demonstrably advances Trump administration priorities, such as those identified in Presidential Executive Order 14154 (January 20, 2025): Unleashing American Energy (E.O.14154) and Secretarial Order 3418, and aligns with other priorities and requirements, such https://www.archives.gov/federal-register/codification/executive-order/12372.html https://www.archives.gov/federal-register/codification/executive-order/12372.html https://bidenwhitehouse.archives.gov/wp-content/uploads/2024/08/SPOC-list-as-of-August-2024.pdf https://bidenwhitehouse.archives.gov/wp-content/uploads/2024/08/SPOC-list-as-of-August-2024.pdf mailto:bor-sha-fafoa@usbr.gov mailto:bor-sha-fafoa@usbr.gov mailto:mmenendez@usbr.gov as those identified in Presidential Executive Order 14332 (August 7, 2025): Improving Oversight in Federal Grantmaking (E.O. 14332). The WaterSMART: Desalination Construction Projects NOFO invites eligible applicants to submit proposals for the planning, design, and/or construction of facilities to desalinate seawater or brackish surface water or groundwater. By providing growing communities with new sources of local water supply, desalination projects diversify the water supply portfolio, increase water management flexibility during times of shortage, and make the water supply more reliable.

ELIGIBILITY

Eligible Applicants Others (see text field entitled "Additional Information on Eligibility" for clarification)

Additional Information on Eligibility Applicants eligible to receive funding under this NOFO include States, departments of a State, subdivisions of a State, or public agencies organized pursuant to a State law, such as:

• States, Tribes, municipalities, irrigation districts, and water districts, or wastewater districts

All applicants must be located in one of the following States: Arizona, California, Colorado, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, and Wyoming.

Ineligible Applicants - Those not eligible include, but are not limited to, the following entities:

• Federal Governmental entities

• Foreign entities

• Individuals

• Institutes of higher education

Cost Sharing Requirement Cost Sharing Required?

Yes 75% of total project costs.

All cost-share contributions must be non-Federal in original source and meet the requirements of 2 CFR 200.306. Total project cost is the sum of all allowable costs, including cost share and third-party contributions. For example, if the total project cost is $10 million, the minimum amount of non-Federal cost share would be $7,500,000.

Total Project Costs $10,000,000 Minimum required cost share- 75% x 75% Applicant share of project costs $7,500,000 Federal share $2,500,000

GET READY TO APPLY

Required System Registrations Unique Entity Identifier and SAM.gov Registration

Before applying, all applicants except individuals applying as a natural person must be registered in SAM.gov. During the SAM.gov registration the entity will obtain their Unique Entity Identifier (UEI).

The SAM.gov registration process can take several months. If your organization is not already registered in SAM.gov, begin the registration process as soon as possible.

To register in SAM.gov, go to the SAM.gov website and use the available resources to complete registration.

• Financial assistance registrants must review and certify compliance with the SAM.gov “Financial Assistance General Representations and Certifications”.

• Already registered? You already have a Unique Entity ID. Before applying, check that your “Financial Assistance General Representations and Certifications” on SAM.gov is complete. Remember to renew your registration every year to keep it active while you have an award or application in progress. You can update your registration whenever you need, including during renewal.

• Need help? For additional information and contact information on the SAM.gov Help page.

GRANTS.GOV

This program accepts applications through Grants.gov so once you receive your UEI return to Grants.gov to register with Grants.gov. Please allow 30 days to register and set up a Workspace in Grants.gov. See Submission Instructions section below for additional details.

PROGRAM OVERVIEW

Program Goals

• Through WaterSMART, Reclamation leverages Federal and non-Federal funding to work cooperatively with States, Tribes, and local entities as they plan for and implement actions to increase water supply reliability through investments in infrastructure and attention to local water needs.

The objective of the WaterSMART: Desalination Construction Projects NOFO is to invite eligible applicants to leverage their funding and resources by cost sharing with Reclamation on the planning, design, and/or construction of facilities to desalinate seawater or brackish surface water or groundwater. By providing growing communities with new sources of local water supply, desalination projects diversify the water supply portfolio, increase water management flexibility during times of shortage, and make the water supply more reliable. This NOFO will be used to allocate available appropriations and funding under the Infrastructure Investment and Jobs Act, P.L. 117-58 available for Desalination Construction Projects.

https://sam.gov/content/entity-registration https://sam.gov/content/help https://sam.gov/content/help https://www.grants.gov/applicants/applicant-registration https://www.grants.gov/applicants/applicant-registration

Program Description The WaterSMART Desalination Construction Projects NOFO prioritizes projects that create a more reliable water supply in a cost-effective manner, address environmental and water quality concerns, and leverage state funding or the experience of international partners. Projects will address growing water demands and resource challenges by providing new, drought-resistant, local water supplies that stretch existing supplies and reduce water importation.

Eligible Projects-

Projects eligible for funding under this NOFO include planning, design, and/or construction of facilities to desalinate seawater or brackish surface water or groundwater. In order to be eligible for funding under this NOFO, the project must meet the following requirements:

• The project must be constructed, operated, and maintained by an eligible applicant; or the project must be sponsored by an eligible applicant. To sponsor a project, the eligible applicant must contribute funding for a substantial portion of the capital construction costs of the project within the timeframe of this NOFO.

• To be eligible for funding under this NOFO, the project must have a completed feasibility study submitted to Reclamation for review by June 26, 2026, for applications submitted under the first submission period and by January 15, 2027, for applications submitted under the second submission period. Completed feasibility studies must be found by Reclamation to meet all of the requirements of WTR 11-01 by November 20, 2026, for applications submitted under the first submission period and by July 15, 2027, for applications submitted under the second submission period. If a feasibility study has been reviewed by Reclamation and found to meet the requirements of WTR 11-01, but the review findings have not yet been transmitted to Congress, Reclamation will transmit those findings to Congress either before project selections are made or concurrently with project selections.

• Applicants with desalination projects that have an estimated total project cost greater than or equal to $500 million (i.e., the minimum total project cost requirement for Large-Scale Water Recycling Projects) must meet additional feasibility study requirements beyond those in WTR 11-01. Additional requirements are established in WTR TRMR-128, Large-Scale Water Recycling Program Feasibility Study Review Process, and these same requirements are being extended to Desalination Construction Projects with a total project cost greater than or equal to $500 million. Projects with an estimated total project cost less than $500 million are not subject to the additional feasibility study requirements.

• The project must be included in a state-approved plan. The plan and documentation of state approval must be included with the proposal or submitted to Reclamation prior to the application deadline for this NOFO. In the alternative, if the project is not included in a state-approved plan, Federal participation in the project must have been requested by the Governor of the state in which the eligible desalination project is located. The applicant must submit documentation sufficient for Reclamation to make this determination along with their proposal prior to the application deadline. The state-approved plan or Governor’s request will not count toward the page limitation.

https://www.usbr.gov/recman/wtr/wtr11-01.pdf

Ineligible Projects- Projects that are not eligible for funding under this NOFO include, but are not limited to:

• Projects that reclaim or reuse municipal, industrial, domestic, or agricultural wastewater.

• Desalination projects that include water recycling components, such as municipal, industrial, or agricultural wastewater reuse, or treatment of impaired water supplies where primary targeted contaminants for removal are not brackish or ocean water.

• Desalination projects that do not have a completed feasibility study that includes the information required by Reclamation Manual Directives and Standards WTR 11-01 (and WTR TRMR-128 for applicants with desalination projects that have an estimated total project cost greater than or equal to $500 million) that has been submitted to Reclamation by June 26, 2026, for applications submitted under the first submission period and by January 15, 2027, for applications submitted under the second submission period.

• Projects that have a Reclamation reviewed feasibility study that Reclamation determined did not meet the requirements of WTR 11-01.

• Development of feasibility studies to meet the requirements Reclamation’s Directives and Standards WTR 11-01 and/or WTR TRMR-128.

• Projects that are not constructed, operated, and maintained by an eligible entity and do not include a substantial financial contribution to capital construction costs by an eligible entity during the time period of this NOFO.

• Lab-scale research, piloting, or demonstration research focused on the development and commercialization of new advanced water treatment technology, such as studies currently proposed or funded under Reclamation’s Desalination and Water Purification Research Program.

• Projects that have a project-specific congressional authorization.

• Projects that have already received funding under the WaterSMART Drought Response Program.

• Operations, Maintenance, and Replacement: Projects that are considered normal operations, maintenance, and replacement (OM&R) are not eligible for funding under this NOFO. OM&R is described as system improvements that replace or repair existing infrastructure or function without providing increased efficiency or effectiveness of water distribution over the expected life of the improvement. Examples of ineligible OM&R projects include:

o Replacing malfunctioning components of an existing facility with the same components o Improving an existing facility to operate as originally designed o Performing an activity on a recurring basis, even if that period is extended (e.g., a 10-year interval)

Multiple Applications - Multiple applications for funding may be submitted for consideration under this funding opportunity, provided that the project scopes are not duplicative. In general, if an applicant is seeking funding for multiple project components, and the components are interrelated or closely related (e.g., projects that are physically and geographically linked), the applicant should combine these in one application. However, if the projects are only loosely related, an applicant should submit them as separate applications.

Technical Assistance - Technical assistance should be discussed with Reclamation staff prior to applying. By request, Reclamation can provide technical assistance after award of a project. If you plan to receive Reclamation’s assistance, you must account for these costs in your budget.

https://www.usbr.gov/recman/wtr/wtr11-01.pdf

To discuss available assistance and associated costs, contact the Program Coordinator identified in the Have Questions section above.

For more information regarding WaterSMART: Desalination Construction Projects, including previously funded projects, visit https://www.usbr.gov/watersmart/title/desalination.html.

Certified Local Governments are encouraged to prioritize projects in support of the celebration of America’s 250th birthday (American250). This may include, but is not limited to, preservation planning, interpretation, public engagement, and rehabilitation projects that recognize and honor the nation’s founding, history, and cultural heritage.

Buy America Preferences for Infrastructure Projects

This program has Federal funding for infrastructure projects. Buy America preferences apply to Federal awards for infrastructure projects in the United States. Reference 2 CFR Part 184 - Buy America Preferences for Infrastructure Project for further guidance.

Projects funded under this NOFO are subject to the following Buy America preferences:

• All iron and steel products used in the project must be produced in the U.S., including beams, bars, rods, and tubing.

• All manufactured products must be made in the U.S., requiring substantial transformation and final assembly in the country.

• All construction materials, such as cement and concrete, must be sourced domestically.

Buy America preferences need to be taken into consideration when developing the project budget.

Legislative Authority Water Desalination Act of 1996, Public Law (P.L.) 104-298, as amended by section 4009(a) of Title III, Subtitle J of the WIIN Act, P.L. 114-322.

Type of Award Projects will be funded through CA (Cooperative Agreement), G (Grant).

Recipient should expect the Federal agency to have substantial involvement in the project.

Awards will be made through a grant or cooperative agreement, depending on the project. If a cooperative agreement is awarded, the recipient should expect Reclamation to have substantial involvement in the project. This may include collaboration or participation in the management of the project and/or review, input, and approval during implementation of the project.

PREPARE YOUR APPLICATION

Application Content and Format Pre-Application Requirements https://www.usbr.gov/watersmart/title/desalination.html https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-184

To be eligible for funding under this NOFO, projects must have a completed feasibility study submitted to Reclamation for review by June 26, 2026 for applications submitted under the first submission period and by January 15, 2027. Completed feasibility studies must be found by Reclamation to meet all of the requirements of WTR 11-01 and WTR TRMR-128 for applicants with desalination projects that have an estimated total project cost greater than or equal to $500 million by November 20, 2026, for applications submitted under the first submission period and by July 15, 2027, for applications submitted under the second submission period.

Prior to applying, applicants should review presidential actions found at:

https://www.whitehouse.gov/presidential-actions/ and DOI Secretary’s Orders found at:

https://www.doi.gov/document-library/secretary-order. By applying in response to this Notice of Funding Opportunity, the applicant certifies awareness and compliance with all currently effective and applicable executive orders and secretary’s orders, including, but not limited to the Executive Order titled Ending Radical and Wasteful Government DEI Programs and Preferencing as well as the Executive Order and Secretary’s order titled Restoring Truth and Sanity to American History. Applicants are responsible for ensuring their proposed activities are consistent with the intent and requirements of these directives.

Application Documents Applicants must submit the following forms with their application as specified below.

Instructions for accessing and submitting application forms are provided in the Submission Instructions section of this document below. For instructions on completing form fields, see the form instructions on the Grants.gov Forms Repository.

Forms/Assurances/Certifications Submission Requirement SF-424, Application for Federal Assistance

Note: For applicants requesting more than $100,000 in Federal funds, the Authorized Representative’s signature (or electronic equivalent) on the Application for Federal Assistance form also represents their certification of the statements in Appendix A to 43 CFR 18-Certification Regarding Lobbying

Required from all applicants

SF-424A, Budget Information – Construction and Non-construction Programs

Required for construction and non-construction projects

SF-LLL, Disclosure of Lobbying Activities

Required if requesting more than $100,000 in Federal funds and the applicant has used or plans to use funds other than Federal appropriated funds for lobbying related to the proposed project.

Project Abstract Summary (OMB 4040-0019). Must include, in plain language: Required from all applicants https://www.whitehouse.gov/presidential-actions/ https://www.doi.gov/document-library/secretary-order https://www.grants.gov/forms/forms-repository.html https://www.ecfr.gov/current/title-43/subtitle-A/part-18#Appendix-A-to-Part-18 https://www.ecfr.gov/current/title-43/subtitle-A/part-18#Appendix-A-to-Part-18

Forms/Assurances/Certifications Submission Requirement

• Award purpose,

• Activities to be performed,

• Expected deliverables or outcomes,

• Intended beneficiaries, Subrecipient activities (if known or specified at time of award)

SF-424A Budget Information

Reclamation uses the SF-424A for both construction and non-construction programs. The SF- 424A should be fully filled out, including both the costs that will be paid with Federal funds and those that will be paid with the non-Federal funds. In Section D of the SF-424A – Forecasted Cash Needs, applicants do not have to project cash needs by quarter. Instead include all costs in the first quarter of the first year and enter “0” in all other fields of Section E – Budget Estimates of Federal Funds Needed for Balance of the Project.

Project Abstract Summary

Failure to include a Project Abstract Summary will not result in removal of the proposal from consideration by Reclamation.

Project Narrative The Project Narrative, including responses to the Merit Review Criteria shall be limited to a maximum of 40 consecutively numbered pages. If this section exceeds 40 pages, only the first 40 pages will be evaluated. The full application, including all attachments, should not exceed 125 pages. If the application exceeds 125 pages, only the first 125 pages will be considered in the merit review.

The font should be at least 12 points in size and easily readable. Page size shall be 8½ by 11 inches, including charts, maps, and drawings. Margins should be standard 1-inch margins.

Oversized pages will not be accepted.

The Project Narrative should include the components described below. Applicants should only describe the work that is reflected in the budget - do not include activities that are already complete or will be completed in a future phase.

Title Page

Provide a brief, informative, and descriptive title for the proposed work that indicates the nature of the project. Include the name and address of the applicant, and the name and address, e-mail address, and telephone of the Project Manager.

Table of Contents

List all major sections of the proposal in the table of contents.

Executive Summary

The executive summary should include:

• The date, applicant name, city, county, and state.

• A short paragraph project summary that provides the location of the project, a brief description of the work that will be carried out, any partners involved, expected benefits, how those benefits relate to the water management issues you plan to address, and what planning document and objective the project supports. This information will be used to create a summary of your project for Reclamation’s website if the project is selected for funding.

Example: The El Paso Water Utilities Public Service Board is expanding the Kay Bailey Hutchison Desalination Plant. The facility will use reverse osmosis to reclaim brackish groundwater from salty sections of the Hueco Bolson aquifer and is expected to increase potable water supply by 16,242 acre-feet per year. The project includes construction of an additional reverse osmosis treatment unit within the desalination plant to increase production capacity. Goals of the expansion are to increase drought resiliency, provide a buffer to protect freshwater portions of the aquifer, and demonstrate national and state leadership in inland desalination.

• State the length of time and estimated completion date for the proposed project (month/year).

• Whether or not the proposed project is located on a Federal facility.

Project Location

Provide detailed information on the proposed project location or project area including a map showing the geographic location. For example, [project name] is located in [state and county] approximately [distance] miles [direction, e.g., northeast] of [nearest town]. The project latitude is [##°##’N] and longitude is [###°##’W].

Technical Project Description

This section provides an opportunity for the applicant to clearly describe the technical scope and construction process of the proposed project and to address any aspect of the project that reviewers may need additional information to understand.

Provide a comprehensive description of the technical aspects of your project, outlining the full scope of the overall project and how the project in its entirety is included within the Reclamation-reviewed feasibility study. The description should include details about the advanced water treatment process involved along with a process flow diagram identifying which components of the facility are existing, which are new, and which will be upgraded. If any existing components are being upgraded as part of the scope of work, please describe what the current equipment and describe the upgrade.

Identify the current stage of the project and provide a detailed work plan for the activities to be completed over the next three years, consistent with the anticipated grant period of performance.

Describe the status of required Federal environmental and cultural resource compliance measures for the proposed project. Please provide an updated status on any relevant changes or issues the project sponsor is currently addressing. This may include permitting challenges, pending agency approvals, or any unresolved issues that have emerged since the completion of the feasibility study. Clearly describe the nature of each issue, its status, and any steps being taken to resolve it.

Merit Review Criteria

“The Merit Review Criteria” section provides a detailed description of each criterion and sub-criterion and points associated with each. The merit review criteria portion of the application should thoroughly address each criterion and sub-criterion in the order presented to assist in the complete and accurate merit review of the proposal.

Copying and pasting the merit review criteria and sub-criteria in Project Narrative’s Merit Review Criteria into your applications is suggested to ensure that all necessary information is adequately addressed.

Letters of Support:

Attach all support letters from interested stakeholders at the end of your application. Letters received after the application deadline will not be evaluated. Letters of support will not be counted towards page limits.

Budget Narrative Applicants must describe and justify items and costs listed in their budget. The budget narrative must identify the following cost items: total estimated costs, non-Federal cost share, third-party contributions, and any pre-award costs. Total project cost is the sum of all allowable costs, including required and voluntary cost share and third-party contributions.

Budget items must be:

• Reasonable, allowable, allocable, and necessary

• Compliant with 2 CFR §200 Subpart E cost principles

Indirect Costs: Applicants must indicate in their budget narrative how they will charge indirect costs, including the rate to be applied:

• De Minimis Rate: If eligible, state if your organization is opting to use the de minimis rate of up to 15% of total modified direct costs. Entities that do not have a current Federal negotiated indirect cost rate (including provisional rate) may propose to use the de minimis rate. For more information, refer to 2 CFR 200.414(f).

• Negotiated Rate: State if you will negotiate with your cognizant agency. If your organization has previously negotiated a rate, attach a copy of the most recently negotiated rate agreement (active or expired).

https://www.ecfr.gov/current/title-2/part-200/subpart-E https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group-ECFRd93f2a98b1f6455/section-200.414

The budget narrative provides a written description of the costs included in each budget category on the SF-424A and how they were estimated. While the SF-424A gives the total cost for each category of the budget, the budget narrative gives the item by item breakdown for each category and shows the calculations used to derive the costs. The budget description serves two purposes:

1) it explains how the costs were estimated, and 2) it justifies the need for the cost. See Attachment A for Budget Narrative Guidance. Attachment B is a suggested format for capturing budget details to support the Narrative.

The Federal share (i.e., Reclamation’s share in addition to any other sources of Federal funding), of any desalination project under Section 4009(a) of the WIIN Act, including any funding provided as a result of this NOFO, shall not exceed 25 percent of the total project cost.

While the Project Narrative and responses to the majority of the Merit Review Criteria should include the scope of the project as a whole, budgets submitted under this NOFO may only include costs incurred after the date of Reclamation’s feasibility determination, and within three years from the application deadline for each submission period under this NOFO. Applicants may include work:

• Planned within three years of the application’s submission deadline. For example, if an application is submitted on August 26, 2026, work planned through August 26, 2029, may be included; and

• Eligible costs submitted for consideration must be for work conducted after the date of Reclamation’s feasibility study review findings for the project.

Pre-award costs

Pre-award costs (defined at 2 CFR 200.458) are allowed, subject to Grant Officer approval. To be eligible, pre-award costs must be incurred after the date of Reclamation’s feasibility study review findings. Pre-award costs are at the applicant’s risk. Successful applicants may submit requests for approval of pre-award costs to the awarding Grant Officer.

Program Cost Restrictions

Proposal costs: The costs for preparing and submitting an application in response to this funding opportunity, including developing data necessary to support the proposal, are not eligible project costs and must not be included in the project budget.

Feasibility Study costs: The costs for preparing and submitting water recycling feasibility studies to meet the requirements of Reclamation’s Directives and Standards WTR 11-01, Title XVI Water Reclamation and Reuse Program and Desalination Construction Program Feasibility Study Review Process, or the additional requirements established in WTR TRMR-128, Large- Scale Water Recycling Program Feasibility Study Review Process are not eligible project costs and must not be included in the project budget.

Environmental and Regulatory Compliance Costs Include costs in the budget for completing compliance activities for Federal environmental and cultural resources laws and regulations. Applicants should contact their local Reclamation office to discuss the compliance requirements and potential costs. If the project is selected for award, these costs will be reviewed for accuracy and adjusted as needed. See “Administration and National Policy Requirements” for additional detail.

Some of the projects funded under this NOFO typically incur high compliance costs (e.g., between $30,000 and $200,000 per project). In some cases, Reclamation may be able to complete a portion of its compliance activities without additional cost to the recipient. The actual amount of costs to the recipient associated with compliance will be identified while developing a final project budget for inclusion in the financial assistance agreement. If it is determined that the recipient will need to contribute funds for compliance costs, funds will be withheld from the grant agreement to cover such costs or will be incorporated into the budget as a cost-shared line item. If the recipient is responsible for covering a portion of the compliance costs, under no circumstances will the funds awarded exceed the amount allowable under this NOFO and cannot exceed what was requested in the application. If a portion of the amount budgeted in your application for compliance is not needed for compliance activities, that amount may be reallocated to other project costs during the process of developing a financial assistance agreement, so long as the non-Federal cost share contribution is maintained.

Design and Cost Estimating Review:

For projects with an estimated total project cost greater than or equal to $500 million that include final design or construction during the project performance period, Reclamation may conduct a programmatic check-in to review additional design and cost estimating information. Documents requested for this review will vary depending on the stage of development of the project. The following is a description of the types of documents that may be requested for review:

• A design report that includes preliminary outline drawings of major features with the purpose of depicting layouts, process diagrams, and supporting cost estimates with unit prices, pay items, quantities, allowances, and assumptions.

• A “Basis of Design” document for final design stages that identifies technical design criteria, design codes, and site-specific design drawings that include plan, elevation, and section drawings.

Conflict of Interest and Unresolved Matters Disclosures:

If any actual or potential conflict of interest exists related to this project at the time of application, the applicant must provide sufficient information to support a program determination of significance per 2 CFR 1402.112. Refer to 2 CFR 200.112 Conflict of Interest and 2 CFR 200.113.

Overlap or Duplication of Effort Statement:

Applicants must state in their application if the activities, costs, or time commitment of key personnel proposed in this application overlap with those in any other Federal proposal or award or not. If no overlap exists, include a statement to that effect. If any overlap exists, provide:

• Activities: Description any overlapping activities.

• Costs: Description of any overlapping costs.

• Time: Description of any overlapping key personnel time.

https://www.ecfr.gov/current/title-2/subtitle-B/chapter-XIV/part-1402#1402.112 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-B/section-200.112 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-B/section-200.113 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-B/section-200.113

• A copy of any overlapping or duplicative proposal submitted to any other potential funding entity.

• Details on when any overlapping proposal was submitted, to whom, and the expected date of the funding decision.

Other Required Information Letters of Commitment Applicants should include letters of commitment from third-party cost share sources. Letters of commitment should identify the amount of funding committed, the date the funds are available, time constraints on the availability of funds, and any other funding contingencies.

SUBMISSION REQUIREMENTS AND DEADLINES

Address to Request Application Package Grants.gov contains a complete application kit to submit a full application in response to this NOFO. Instructions for the Grants.gov application process are available here. Contact Alisha James at bor-sha-fafoa@usbr.gov if you are unable to access the application materials electronically.

Proposals received after the application deadline will not be considered unless it can be determined that the delay was caused by Reclamation or there were technical issues with Grants.gov. To document a delay due to a technical issue in Grants.gov, you must furnish a Grants.gov helpdesk ticket number to the NOFO team that validates the delay. Difficulties related to an applicant’s Grants.gov profile (e.g., incorrect organizational representative), uploading documents to Grants.gov, or an applicant’s SAM.gov registration are not considered technical issues with the Grants.gov system.

Submission Dates and Times Closing Date for Applications: 08/26/2027

Closing Date Explanation

This NOFO will have two application submission periods with a final closing date of August 26, 2027. The due dates for each closing period are:

The first application submission period due date is August 26, 2026, at 4:00 p.m. Mountain Daylight Time (MDT).

The second and final application submission period due date is August 26, 2027, at 4:00 p.m.

Mountain Daylight Time (MDT). Applications received after August 26, 2026, at 4:00 p.m.

Mountain Daylight Time (MDT) and before August 26, 2027, at 4:00 p.m. Mountain Daylight Time (MDT), will be considered for the second application submission period.

Submission Instructions Apply Through Grants.gov To apply through Grants.gov, please follow the instructions in the Quick Start Guide for Applicants. Before applying, ensure that at least one person at your organization is registered and has the Authorized Organization Representative (AOR). Only the AOR can submit the https://www.grants.gov/applicants/grant-applications/how-to-apply-for-grants mailto:bor-sha-fafoa@usbr.gov https://www.grants.gov/ https://grants.gov/register https://www.grants.gov/quick-start-guide/applicants http://www.grants.gov/quick-start-guide/applicants application. If you need more users, they must create their own Grants.gov account. Follow these steps below to apply:

• Create a Workspace: Creating a workspace allows you to complete it online and route it through your organization for review before submitting.

• Complete a Workspace: Invite participants to the workspace so you can collaborate on the application. Required applications forms are included in the Grants.gov Funding Opportunity Package and can be completed in the Workspace, unless noted otherwise in the Required Forms table above. Check for errors before submission.

• Submit a Workspace: An application may be submitted through workspace by clicking the Sign and Submit button on the Manage Workspace page, under the Forms tab

• Track a Workspace Submission: After successfully submitting a workspace application, a Grants.gov Tracking Number (GRANTXXXXXXXX) is automatically assigned to the application.

The system generates a date and time stamp and sends it to the applicant’s AOR via email as proof of submission. Make sure your application passes the Grants.gov validation checks. Do not encrypt, zip, or password-protect any files. Only registered individuals in SAM as both a user and an AOR can submit applications. Please allow 30 days to register in Grants.gov.

Application System Technical Support: For Grants.gov technical registration and submission, downloading forms, and application packages, contact Grants.gov Customer Support at 1-800- 518-4726 or by email at Support@grants.gov.

Applicants can submit a hard copy application by U.S. Mail or express delivery to the addresses below.

By mail or United States Postal Service overnight services:

Bureau of Reclamation Financial Assistance Operations Section Attn: NOFO Team P.O. Box 25007, MS 84-27133 Denver, CO 80225

By all other express delivery and courier services:

Bureau of Reclamation mail services Attn: NOFO Team Denver Federal Center Bldg. 67, Rm. 152 6th Avenue and Kipling Street Denver, CO 80225

Please notify the Reclamation Financial Assistance Contact listed in the “Basic Information” section by 2:00 PM MT on the submission date to confirm the hard copy submission.

APPLICATION REVIEW INFORMATION

Eligibility Review During the eligibility review, the application is checked for timely submission, completed packages (see Application Documents above) and alignment with the requirements of this announcement. The Federal agency may remove an application if it does not pass the eligibility review.

An application will be removed if it does not include:

• Completed SF-424 and SF-424A forms

• SAM registration, with a valid UEI (unless an exemption at 2 CFR 25.110 applies, see below)

• A project narrative

• A budget narrative

If an applicant selected for funding hasn't finished their SAM.gov registration (see 2 CFR 25.200 and 2 CFR 25.110) when the federal agency is ready to make an award, we may decide that the applicant is ineligible for the award and choose to grant it to someone else. Please refer 2 CFR

25.205 for more information.

Prior to making an award, the DOI checks the anticipated recipient and their key project personnel against the current list of prohibited or restricted persons or entities in the System for Award Management (SAM.gov) Exclusions database. We are prohibited from making an award if a recipient or any key personnel are found ineligible, prohibited, restricted, or otherwise excluded from receiving or participating in an award, as their ineligibility condition applies to this program.

If removed from consideration for ineligibility, the Federal agency will notify the applicant in writing.

Merit Review The merit review criteria should be addressed in the Project Narrative. Applications should thoroughly address each criterion and any sub-criterion in the order presented below.

Applications will be evaluated against the merit review criteria listed below.

With the exceptions of criteria F and G, evaluation criteria should be applied to the project as a whole, not just the project activities that will be completed over the next 3 years. Responses to Criteria F and G should be limited to the project scope that is consistent with the anticipated period of performance for this grant application. An Application Review Committee (ARC), made up of experts in relevant disciplines, will review the technical merit of the application, based on the following evaluation criteria:

Merit Review Criteria Scoring Summary Points:

A. Increased Water Supply Available 25

B. Water Management Concerns and Project Benefits 15 https://www.ecfr.gov/current/title-2/section-25.200 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-25/subpart-A/section-25.110 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-25/subpart-B/section-25.205 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-25/subpart-B/section-25.205

C. Economic Analysis 20

D. Presidential and Department of the Interior Priorities 20

E. Leveraging Regional Planning, State Funding, and International Experience 5

F. Construction Priority 10

G. Cost Share Priority 5

Total 100

Note: Projects may be prioritized to ensure balance among the program task areas and to ensure that the projects address this NOFO’s goals and objectives.

Merit Review Criterion A: Increased Water Supply Available (25 points)

Up to 25 points may be awarded based on the expected increase to water supply available as a result of the project. This criterion prioritizes projects that yield higher volumes of reclaimed water and offset other sources of water supply.

Sub-Criterion A.1 Amount of Desalinated Water Supply Made Available

Points will be awarded based on the expected amount of desalinated water made available. This criterion evaluates the amount of desalinated water produced and how much of the annual demand for the service area is offset by the desalinated water. Proposals containing a well-supported description and quantification of project benefits will receive more points under this criterion.

• What is the estimated quantity of additional supply the project will provide upon completion and how was this estimate calculated? Provide this quantity in acre-feet per year as the average annual benefit over fifteen years, starting with the year that the project will begin delivering water (e.g., if the project captures flood flows in wet years, provide the average benefit over fifteen years including dry years). Provide information on how desalinated water produced will vary over the year based on any source water supply changes.

• What percentage of the current annual demand for the service area does the additional desalinated water supply represent? How was this estimate calculated?

Sub-Criterion A.2 Offset to Water Supplies

Points will be awarded based on the extent to which the project will reduce demands on existing water supply sources or the need to develop new non-reclaimed water supply sources.

• Describe the existing water supplies used in the project sponsor’s service area. Identify which of these supplies and associated facilities will benefit from the implementation of this project and explain how the project will reduce pressure on those resources. Include quantitative estimates to support your response.

• If the project is expected to reduce, delay, or eliminate the need for new or expanded non-recycled water supplies, describe how these benefits will be quantified and measured.

Include the methods, metrics, and data sources that will be used to assess the project's actual impact over time once completed.

Merit Review Criterion B: Water Management Concerns and Project Benefits (15 points)

Up to 15 points may be awarded based on the water management concerns and how the project will address the described concerns. This criterion evaluates water management concerns the project area is facing, their severity, and the expected role of the project in addressing those concerns. Applicants that clearly demonstrate a water management challenge and a compelling need for the project will receive the most points under this criterion.

Describe the water management challenge(s) occurring within your project area and the severity of the challenge to be addressed. Describe the consequences if the water management challenge(s) is not addressed. For example, will your project address water supply shortfalls or uncertainties, the need to meet competing demands for water and the lack of reliable water supplies for municipal, agricultural, tribal, environmental or recreational water uses, groundwater depletion, water quality issues, complications arising from drought, conflicts over water, or other water management issues?

Explain how the benefits of your project will address the water management concern identified in your response to the preceding paragraph and provide support for your response. For example, will your project improve water management by supporting:

Water Quality Improvements

• How will the project improve the quality of surface water, groundwater, or effluent discharges?

• Will steps be taken to minimize the environmental impacts of desalination source water acquisition (intakes or groundwater pumping) and concentrate management as part of the project? If so, explain the expected steps and their significance.

Habitat Restoration and Species Support

• Will the project restore or enhance habitat for non-listed species? If so, describe the species and the nature of the habitat improvements.

• Will the project provide water, habitat, or reduce reliance on imported water supplies to provide benefit for federally listed threatened or endangered species? If yes, identify the species and explain how the project will support their conservation.

Drought Resiliency

• Describe how the project area has been impacted by drought and explain how the proposed project is expected to improve drought resiliency in the region. Consider:

o Will the project create additional flexibility to respond to drought conditions? If so, how?

o Will the water made available through this project remain accessible during drought periods? How does its reliability compare to other available water supply options?

o Has the project area been identified by the United States Drought Monitor as experiencing severe, extreme, or exceptional drought, or been designated as a drought disaster area by the State, at any time in the last 4 years? If so, provide details.

Merit Review Criterion C: Economic Analysis (20 points)

Up to 20 points may be awarded based on the economic analysis conducted to demonstrate the cost effectiveness of the project and the project’s benefits relative to the project’s costs.

Subcriterion No. C.1.—Cost Effectiveness Analysis

Points will be awarded based on the cost per acre-foot of water expected to be delivered upon completion of the project and how the cost of the project compares to a non-desalination alternative. Use costs related to the entire project, not just the cost of work over the next 3 years or the phase currently under development. Costs should be provided for the entire project described in the Reclamation-approved feasibility study.

Reclamation will calculate the cost per acre-foot of water produced by the project using information provided by applicants. For a description of how this calculation is done, see the Title XVI Frequently Asked Questions webpage at www.usbr.gov/watersmart/title/faq.html.

Provide the following information for this calculation:

• The total estimated construction costs, by year, for the project (include all previous and planned work) as shown in Table 1.

Table 1.—Estimated Construction Costs by Calendar Year

Year Construction Cost Year Construction Cost

1. 6.

2. 7.

3. 8.

4. 9.

5. 10.

• The total estimated or actual costs to plan and design the project.

Note: This should not include the cost to complete a feasibility study that meets the requirements of Reclamation’s Directives and Standards WTR 11-01.

• The estimated expected average annual operation and maintenance costs for the life of the project.

Do not include periodic replacement costs in the operation and maintenance costs.

http://www.usbr.gov/watersmart/title/faq.html

Periodic replacement costs should be provided separately in response to Table 2 below.

Note: this is an annual cost—not total cost.

• The year the project has or is expected to begin to deliver desalinated water.

• The projected life (in years)…