FY 2021 WIIN Desal Funding Opportunity.pdf

U.S. Department of the Interior March 2021

Notice of Funding Opportunity No. R21AS00428

WaterSMART:

Desalination Construction Projects Under the WIIN Act

Mission Statements The Department of the Interior (DOI) conserves and manages the Nation’s natural resources and cultural heritage for the benefit and enjoyment of the American people, provides scientific and other information about natural resources and natural hazards to address societal challenges and create opportunities for the American people, and honors the Nation’s trust responsibilities or special commitments to American Indians, Alaska Natives, and affiliated island communities to help them prosper.

The mission of the Bureau of Reclamation is to manage, develop, and protect water and related resources in an environmentally and economically sound manner in the interest of the American public.

Cover photo: Water Replenishment District of Southern California, Groundwater Reliability Improvement Program (Reclamation).

Synopsis i

Synopsis

Federal Agency Name: Department of the Interior, Bureau of Reclamation, Policy and Administration

Funding Opportunity Title: WaterSMART: Desalination Construction Projects Under the WIIN Act

Announcement Type: Notice of Funding Opportunity (NOFO)

Funding Opportunity Number:

R21AS00428

Catalog of Federal Domestic Assistance (CFDA) Number:

15.504

Dates:

(See NOFO Sec. D.4)

Application due date:

April 23, 2021 4:00 p.m. Mountain Daylight Time (MDT)

Eligible Applicants:

(See NOFO Sec. C.1)

Sponsors of seawater or brackish water desalination projects located in the Western United State of United States Territiories as identified in the Reclamation Act of June 17, 1902 that have submitted a Feasibility Study to Reclamation for review by the by the date this NOFO is posted.

Recipient Cost Share:

(See NOFO Sec. C.2)

75 percent or more of total Project costs.

Federal Funding Amount:

(See NOFO Sec. B.1)

Up to 25 percent of the total cost of planning, design, and/or construction that has either already been completed or will be conducted before September 30, 2024, up to a maximum of $20 million per project.

Estimated Number of Agreements to be Awarded:

(See NOFO Sec. B.1)

Approximately 2 to 6 awards, depending on the amount requested by each applicant.

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Application Checklist iii

Application Checklist The following table contains a summary of the information that you are required to submit with your application.

√ What to submit Required content Form or format When to submit

Mandatory Federal Forms:

Application for Federal Assistance

Budget Information

Assurances

Disclosure of Lobbying Activities

See Sec. D.2.2.1 SF-424, SF-424C, SF-424D, and SF-LLL forms may be obtained at www.grants.gov/web/grants/forms/sf-424-family.html

Title page See Sec. D.2.2.2 Page 11 *

Table of contents See Sec. D.2.2.3 Page 11 *

Technical proposal: *

Executive summary See Sec. D.2.2.4 Page 11 *

Project description See Sec. D.2.2.4 Page 11 *

Evaluation criteria See Sec. E.1 Page 25 *

Environmental and cultural resources compliance

See Sec. D.2.2.5 Page13 *

Required permits or approvals See Sec. D.2.2.6 Page 13 *

Project Budget See Sec. D.2.2.7 Page 13

Funding Plan and Letters of Commitment Page 13

Budget Proposal Page 15

Budget Narrative Page 16

Letters of support See Sec. D.2.2.8 Page 19 *

State-Approved Plan or Governor’s Request

See Sec. D.2.2.10 Page 19

Official Resolutions See Sec. D.2.2.11 Page 20 **

Unique Entity Identifier and System for Award Management

See Sec. D.3 Page 20 ***

* Submit materials with your application.

** Document should be submitted with your application; however, please refer to the applicable section of the NOFO for extended submission date.

*** Should be completed prior to the application deadline; however, please refer to the applicable section of the NOFO for extended completion date.

http://www.grants.gov/web/grants/forms/sf-424-family.html

Acronyms and Abbreviations v

Acronyms and Abbreviations AOR Authorized Organizational Representative ASAP Automated Standard Application for Payments ARC Application Review Committee CE Categorical Exclusion CEC Categorical Exclusion Checklist CFDA Catalog of Federal Domestic Assistance CFR Code of Federal Regulations CIEMAT Centro de Investigaciones Energeticas, Medioambientales y Tecnologicas CWA Clean Water Act Department U.S. Department of the Interior DUNS Data Universal Number System EA/FONSI Environmental Assessment/Finding of No Significant Impact EIS Environmental Impact Statement ESA Endangered Species Act FAPIIS Federal Award Performance Integrity Information System FOIA Freedom of Information Act FY fiscal year MST Mountain Standard Time NEPA National Environmental Policy Act NHPA National Historic Preservation Act NOAA National Oceanic and Atmospheric Administration NOFO Notice of Funding Opportunity OM&R operations, maintenance, and replacement P.L. Public Law Project ocean and brackish water desalination project Reclamation Bureau of Reclamation ROD Record of Decision SAM System of Award Management Title XVI Title XVI Water Reclamation and Reuse Program U.S.C. United States Code USACE United States Army Corps of Engineers USFWS U.S. Fish and Wildlife Service WIIN Water Infrastructure Improvements for the Nation Act WaterSMART Sustain and Manage America’s Resources for Tomorrow

Section A: Funding Opportunity Description vii

Contents Page

Section A: Funding Opportunity Description A.1. Notice of Funding Opportunity (NOFO) Information A.2. Objective of this NOFO A.3. Statutory Authority

Section B: Award Information B.1. Total Project Funding B.2. Project Funding Limitations B.3. Assistance Instrument

Section C: Eligibility Information C.1. Eligible Applicants C.2. Cost-Share Requirements C.3. Eligible Projects

Section D: Application and Submission Information D.1. Address to Request Application Package D.2. Content and Form of Application Submission D.3. Unique Entity Identifier and System for Award Management D.4. Submission Date and Time D.5. Intergovernmental Review D.6. Funding Restrictions: Pre-award Costs D.7. Automated Standard Application for Payments Registration

Section E. Application Review Information E.1. Technical Proposal: Evaluation Criteria E.2. Review and Selection Process E.3. Federal Award Performance Integrity Information System E.4. Anticipated Announcement and Federal Award Date

Section F: Federal Award Administration Information F.1. Federal Award Notices F.2. Administrative and National Policy Requirements F.3. Reporting Requirements and Distribution F.4. Releasing Applications

Section G: Agency Contacts G.1. Reclamation Financial Assistance Management Contact G.2. Reclamation Program Coordinator Contact

Section H: Other Information H.1. National Environmental Policy Act H.2. National Historic Preservation Act H.3. Endangered Species Act

Section A: Funding Opportunity Description

Section A: Funding Opportunity Description A.1. Program Information The U.S. Department of the Interior’s (Department) WaterSMART (Sustain and Manage America’s Resources for Tomorrow) Program provides a framework for Federal leadership and assistance to stretch and secure water supplies for future generations in support of the Department’s priorities.

Through WaterSMART, the Bureau of Reclamation (Reclamation) leverages Federal and non- Federal funding to support stakeholder efforts to stretch scarce water supplies and avoid conflicts over water.

The Water Infrastructure Improvements for the Nation Act (WIIN), Public Law (P.L.) 114-322, was enacted in December of 2016 to address water resources infrastructure that is critical to the Nation’s economic growth, health, and competitiveness. Section 4009(a) of Subtitle J of WIIN includes amendments to the Water Desalination Act of 1996 that authorize Reclamation to provide funding for construction of desalination projects.

Desalination is an essential tool in stretching the limited water supplies in the Western United States.

Desalination projects develop and supplement municipal and irrigation water supplies through the treatment of ocean or brackish water, thereby providing a local supply, providing flexibility during water shortages, and diversifying the water supply portfolio. These projects provide growing communities with new sources of clean water and increase water management flexibility, making our water supply more reliable. Desalination projects help water managers increase resilience to climate change and are directly aligned with Executive Order 14008: Tackling the Climate Crisis at Hone and Abroad , see www.whitehouse.gov/briefing-room/presidential-actions/2021/01/27/executive-order-on-tackling-the-climate-crisis-at-home-and-abroad. Desalination projects are an important part of the Department’s WaterSMART Program. For further information on the WaterSMART Program, see www.usbr.gov/watersmart.

A.2. Objective of this NOFO The objective of this Notice of Funding Opportunity (NOFO) is to invite sponsors of ocean and brackish water desalination projects (Projects) to request cost-shared funding for the planning, design, and/or construction of those Projects.

A.3. Statutory Authority This NOFO is issued under the authority of the Water Desalination Act of 1996, P.L. 104-298, as amended by section 4009(a) of Title II, Subtitle J of the WIIN Act.

A.4. Other Funding Opportunities WaterSMART: Title XVI WIIN Water Reclamation and Reuse Projects - Through this NOFO, funding is available for planning, design, and construction of Title XVI Projects eligible under Section 4009(c) of the WIIN Act.

https://www.usbr.gov/watersmart https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/27/executive-order-on-tackling-the-climate-crisis-at-home-and-abroad/

WaterSMART: Title XVI Congressionally Authorized Water Reclamation and Reuse Projects - Through this NOFO, funding is available for planning, design, and construction of congressionally authorized Title XVI Projects.

Desalination and Water Purification Research and Development: Laboratory and Pilot Scale Projects - Through this NOFO, funding is available for laboratory and pilot scale research studies to determine the viability of a novel process, new materials, or process modifications in conjunction with individuals, institutions of higher education, commercial or industrial organizations, private entities, public entities (including state and local), and Indian tribal governments.

Desalination and Water Purification Research and Development: Pitch to Pilot - Through this NOFO, funding is available to develop innovative and disruptive new technologies or processes at the pilot scale with the goal to augment water supplies and address costs, energy usage, and environmental impacts of water treatment technologies.

Section B: Award Information

Section B: Award Information B.1. Total Project Funding Fiscal year (FY) 2021 enacted appropriations include $12 million for desalination projects eligible under section 4009(a) of the WIIN Act. Applications submitted under this NOFO also may be considered if authority and additional appropriations becomes available in FY 2021 or thereafter.

B.2. Project Funding Limitations 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.

Eligible applicants are invited to request funding for planning, design, and/or construction of Projects. This may include work planned through September 30, 2024 or completed work that was conducted after the enactment of the WIIN Act on December 16, 2016. Although the evaluation criteria listed in this NOFO will be applied to the Project as a whole, funding requests submitted under this NOFO must be based on the expenditures already incurred or planned to be incurred by September 30, 2024, up to a maximum of $20 million per Project.

Under section 4009(a) of the WIIN Act, Projects can only receive funding after enacted appropriations legislation designates funding to them by name. Therefore, financial assistance agreements for projects eligible under section 4009(a) will not be entered into until the project appears in enacted appropriations legislation.

All costs incurred by Reclamation related to the development and administration of any award under this NOFO are considered part of the total Project costs, and the recipient will be required to provide cost share for these costs. All Reclamation administrative costs will also be included in the Federal cost share for the Project.

B.3. Assistance Instrument Awards will be made through a grant or cooperative agreement as applicable to the selected Project.

If a cooperative agreement is awarded, the recipient should expect Reclamation to have substantial involvement in the Project.

Substantial involvement by Reclamation may include:

• Collaboration and participation with the recipient in the management of the Project and close oversight of the recipient’s activities to ensure that the program objectives are being achieved. Note: The development and administration of an award under this NOFO is not considered substantial involvement.

• Review, input, and approval at key interim stages of the Project.

At the request of the recipient, Reclamation can provide technical assistance after award of an agreement. If you would like to receive Reclamation technical assistance, you must account for these costs in your budget. To discuss available assistance and these costs, contact the program coordinator identified in Section G. Agency Contacts.

Section C: Eligibility Information

C.1. Eligible Applicants Applicants eligible to receive an award under this NOFO include sponsors of seawater and brackish water desalination projects located in the Western United State of United States Territiories as identified in the Reclamation Act of June 17, 1902 that have submitted a Feasibility Study to Reclamation for review by the date this NOFO is posted Eligibility does not entitle an applicant to any future Federal funding or create a new project authorization.

C.2. Cost-Share Requirements Applicants must be capable of cost sharing 75 percent or more of the total Project costs. The total Project cost is defined as the total allowable costs incurred under a Federal award and all required cost share and voluntary committed cost-share contributions, including third-party contributions.

Cost share may be made through cash, costs contributed by the applicant, or third-party in-kind contributions. Third-party in-kind contributions is the value of non-cash contributions of property or services that benefit the federally assisted project and are contributed by non-Federal third parties, without charge. Cost-share funding from sources outside the applicant’s organization (e.g., loans or state grants) should be secured and available to the applicant prior to award. Please see Section D.2.2.7 Project Budget and Section D.2.2.9 Official Resolution for more information regarding the documentation required to verify commitments to meet cost sharing requirements.

Other sources of Federal funding may not be counted towards the required cost share. The exception to this requirement is where the Federal statute authorizing a program specifically provides that Federal funds made available for such program can be applied to matching or cost-sharing requirements of other Federal programs, such as awards to tribal organizations under P.L.

93-638, as amended. If it is determined that the Federal funding cannot be applied towards the non- Federal cost share, the work associated with the funding may be removed from the proposed Project.

C.2.1. Cost-Share Regulations

All cost-share contributions must meet the applicable administrative and cost principles criteria established in 2 Code of Federal Regulations (CFR) Part 200, available at the Electronic Code of Federal Regulations at www.ecfr.gov.

C.2.2. Third-Party Contributions

Third-party contributions may be in the form of equipment, supplies, and other expendable property, as well as the value of services directly benefiting and specifically identifiable to the proposed Project. The cost or value of third-party in-kind contributions that have been or will be relied on to satisfy a cost-sharing or matching requirement for another Federal financial assistance http://www.ecfr.gov/ agreement, a Federal procurement contract, or any other award of Federal funds may not be relied on to satisfy the cost-share requirement for an award under this NOFO. Applicants should refer to 2 CFR §200.434 Contributions and donations for regulations regarding the valuation of third-party in-kind contributions, available at www.ecfr.gov.

C.3. Eligible Projects

C.3.1. Eligible Projects

Projects eligible for funding under this NOFO include planning, design, and construction of facilities to desalinate ocean or brackish water, including groundwater. In order to be eligible for funding under this NOFO, the Project must meet the following:

• The Project must be constructed, operated, and maintained by an eligble 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.

• The Project must have a completed Feasibility Study that has been submitted to Reclamation for review by the date that this NOFO is posted, and for which the study is found to meet all of 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 by April 23, 2021 (the application deadline of this NOFO). 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.

Eligibility does not entitle a project to any future Federal funding or create a new project authorization.

• The Project must be located in the Western United States or United States Territories as identified in the Reclamation Act of June 17, 1902, as amended and supplemented;

specifically: Arizona, California, Colorado, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming, American Samoa, Guam, the Northern Mariana Islands, and the Virgin Islands.

• 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.

• The Project must be ready to proceed within a reasonable amount of time once a financial assistance agreement is in place.

Eligibility does not entitle a project to any future Federal funding or create a new project authorization.

C.3.2. Ineligible Projects

Projects 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.

• Projects that do not have a completed feasibility study that includes the information required by Reclamation Manual Release WTR 11-01 that has been submitted to Reclamation by the date that this NOFO is posted.

• 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 already received funding under the WaterSMART Drought Response Program.

• Operations, maintenance, and replacement (OM&R) activities. 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., 10-year interval) o Sealing expansion joints of concrete lining because the original sealer or the water stops have failed o Replacing broken meters with new meters of the same type o Replacing leaky pipes with new pipes of the same type

Applicants that have questions regarding OM&R are encouraged to contact the program coordinator listed in Section G. Agency Contacts, prior to the application deadline for further information.

C.3.3. Length of Projects

Applicants can only request funding for work that is already completed or work that is planned through September 30, 2024. Funding for completed work can only be requested if that work was conducted after the enactment of the WIIN Act on December 16, 2016.

Section D: Application and Submission Information

Section D: Application and Submission Information

D.1. Address to Request Application Package This document contains all information, forms, and electronic addresses required to obtain the information required for submission of an application.

If you are unable to access this information electronically, you can request paper copies of any of the documents referenced in this NOFO by emailing the Notice of Funding Opportunity Team staff at sha-dro-fafoa@usbr.gov.

D.2. Content and Form of Application Submission All applications must conform to the requirements set forth below.

D.2.1. Application Format and Length The total application package shall be no more than 75 consecutively numbered pages. If an application exceeds 75 pages, only the first 75 pages will be evaluated. The font shall be at least 12 points in size and easily readable. Page size shall be 8½ by 11 inches with standard 1-inch margins, including charts, maps, and drawings. Oversized pages will not be accepted. The SF-424 forms, SF- LLL, letters of Project support, state-approved plan or Governor’s request, and official resolutions will not be considered in the total page count.

Applications will be prescreened for compliance to the above page number limitation. Excess pages will be removed and not considered in the evaluation of the proposed project.D.2.2. Application Content The application must include the following elements to be considered complete:

• Mandatory Federal Forms o SF-424 Application for Federal Assistance o SF-424C Budget Information—Construction Programs o SF-424D Assurances—Construction Programs o SF-LLL Disclosure of Lobbying Activities (if applicable) o SF-424, SF-424C, SF-424D, and SF-LLL forms may be obtained at www.grants.gov/web/grants/forms/sf-424-family.html.

• Title page

• Table of contents mailto:sha-dro-fafoa@usbr.gov

• Technical proposal and evaluation criteria o Executive summary o Technical project description o Evaluation criteria

• Project budget o Funding plan and letters of commitment o Budget proposal o Budget narrative

• Environmental and cultural resources compliance

• Required permits or approvals

• Letters of Project support (will not count toward the page limitation)

• State approved plan and documentation of approval or Governor’s request (will not count toward the page limitation)

• Official resolution (will not count toward the page limitation)

D.2.2.1. Mandatory Federal Forms The application must include the following standard Federal forms.

SF-424 Application for Federal Assistance A fully completed SF-424 Application for Federal Assistance, signed by a person legally authorized to commit the applicant to performance of the Project must be submitted with the application.

Failure to submit a properly signed SF-424 may result in the elimination of the application from further consideration.

SF-424 Budget Information A fully completed SF-424C Budget Information—Construction Programs must be submitted with the application.

SF-424 Assurances An SF-424D Assurances—Construction Programs, signed by a person legally authorized to commit the applicant to performance of the Project shall be included. Questions regarding whether to use SF-424B or SF-424D should be referred to the Notice of Funding Opportunity Team staff at sha-dro-fafoa@usbr.gov. Failure to submit a properly signed SF-424D may result in the elimination of the application from further consideration.

SF-LLL

A fully completed and signed SF-LLL Disclosure of Lobbying Activities is required if the applicant has made or agreed to make payment to any lobbying entity for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with a covered Federal action.

D.2.2.2. 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, email address, and telephone of the project manager.

D.2.2.3. Table of Contents

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

D.2.2.4. Technical Proposal and Evaluation Criteria

The technical proposal and evaluation criteria includes:

(1) Executive summary

(2) Technical project description

(3) Evaluation criteria

Executive Summary The executive summary should include:

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

• A one paragraph summary of the work for which funding is being requested, including how funds will be used to accomplish specific Project activities.

Technical Project Description The technical project description should describe the Project in its entirety. This description shall have sufficient detail to permit a comprehensive evaluation of the proposal.

Evaluation Criteria The evaluation criteria portion of your application should thoroughly address each criterion and subcriterion in the order presented to assist in the complete and accurate evaluation of your proposal. The evaluation criteria should be applied to the entire Project. (See Section E.1. Technical Proposal: Evaluation Criteria for additional details, including a detailed description of each criterion and subcriterion and points associated with each.)

It is suggested that applicants copy and paste the evaluation criteria and subcriteria in Section E.1. Technical Proposal: Evaluation Criteria into their applications to ensure that all necessary information is adequately addressed.

D.2.2.5. Environmental and Cultural Resources Compliance To allow Reclamation to assess the probable environmental and cultural resources impacts and costs associated with each application, all applicants must respond to the following list of questions focusing on the National Environmental Policy Act (NEPA), National Historic Preservation Act (NHPA), and Endangered Species Act (ESA) requirements. Please answer the following questions to the best of your knowledge. If any question is not applicable to the Project, please explain why.

The application should include the answers to:

• Will the proposed Project impact the surrounding environment (e.g., soil [dust], air, water [quality and quantity], animal habitat)? Please briefly describe all earth-disturbing work and any work that will affect the air, water, or animal habitat in the Project area. Please also explain the impacts of such work on the surrounding environment and any steps that could be taken to minimize the impacts.

• Are you aware of any species listed or proposed to be listed as a Federal threatened or endangered species, or designated critical habitat in the Project area? If so, would they be affected by any activities associated with the proposed Project?

• Are there wetlands or other surface waters inside the Project boundaries that potentially fall under Clean Water Act (CWA) jurisdiction as “Waters of the United States”? If so, please describe and estimate any impacts the proposed Project may have.

• When was the water delivery system constructed?

• Will the proposed Project result in any modification of or effects to, individual features of an irrigation system (e.g., headgates, canals, or flumes)? If so, state when those features were constructed and describe the nature and timing of any extensive alterations or modifications to those features completed previously.

• Are any buildings, structures, or features in the irrigation district listed or eligible for listing on the National Register of Historic Places? A cultural resources specialist at your local Reclamation office or the State Historic Preservation Office can assist in answering this question.

• Are there any known archeological sites in the proposed Project area?

• Will the proposed Project have a disproportionately high and adverse effect on low income or minority populations?

• Will the proposed Project limit access to and ceremonial use of Indian sacred sites or result in other impacts on tribal lands?

• Will the proposed Project contribute to the introduction, continued existence, or spread of noxious weeds or non-native invasive species known to occur in the area?

Note: if mitigation is required to lessen environmental impacts, the applicant may, at Reclamation’s discretion, be required to report on progress and completion of these commitments. Reclamation will coordinate with the applicant to establish reporting requirements and intervals accordingly.

Under no circumstances may an applicant begin any ground-disturbing activities (including grading, clearing, and other preliminary activities) on a Project before environmental compliance is complete and Reclamation explicitly authorizes work to proceed. This pertains to all components of the proposed Project, including those that are part of the applicant’s non-Federal cost share. Reclamation will provide a successful applicant with information once environmental compliance is complete. An applicant that proceeds before environmental compliance is complete may risk forfeiting Reclamation funding under this

NOFO.

D.2.2.6. Required Permits or Approvals Applicants must state in the application whether any permits or approvals are required and explain the plan for obtaining such permits or approvals.

Note that improvements to Federal facilities that are implemented through any Project awarded funding through this NOFO must comply with additional requirements. The Federal government will continue to hold title to the Federal facility and any improvement that is integral to the existing operations of that facility. Please see P.L. 111-11, section 9504(a)(3)(B). Reclamation may also require additional reviews and approvals prior to award to ensure that any necessary easements, land use authorizations, or special permits can be approved consistent with the requirements of 43 CFR §429, and that the development will not impact or impair project operations or efficiency.

D.2.2.7. Other Federal Funding Identify any Federal funding, other than Title XVI funding, received for the Project. Include the amount of Federal funds, the amount of non-Federal cost share provided or required, and a description of the work that was or will be funded under the other Federal award(s).

D.2.2.8. Project Budget The Project budget includes:

(1) Funding plan and letters of commitment

(2) Budget proposal

(3) Budget narrative

The project budget may include costs for planning, design, and/or construction of the Project incurred through September 30, 2024or completed work that was conducted after the enactment of the WIIN Act on December 16, 2016.

Please note that the costs for preparing and applying in response to this NOFO, including the development of data necessary to support the proposal, are not eligible Project costs under this NOFO and must not be included in the Project budget.

Funding Plan and Letters of Commitment

Describe how the non-Federal share of Project costs will be provided. Reclamation will use this information in making a determination of financial capability.

Project funding provided by a source other than the applicant shall be supported with letters of commitment from these additional sources. Letters of commitment shall identify the following elements:

• The amount of funding commitment

• The date the funds will be available to the applicant

• Any time constraints on the availability of funds

• Any other contingencies associated with the funding commitment

Commitment letters from third party funding sources should be submitted with your application. If commitment letters are not available at the time of the application submission, please provide a timeline for submission of all commitment letters. Cost-share funding from sources outside the applicant’s organization (e.g., loans or state grants), should be secured and available to the applicant prior to award.

Reclamation will not make funds available for an award under this NOFO until the recipient has secured non-Federal cost share. Reclamation will execute a financial assistance agreement once non- Federal funding has been secured or Reclamation determines that there is sufficient evidence and likelihood that non-Federal funds will be available to the applicant subsequent to executing the agreement.

Note: Applicants are not required to have non-Federal cost-share funding secured for the entire Project at the time of award. Applicants must demonstrate sufficient evidence that non-Federal cost share for the initial Federal obligation will be available at the time of award and must describe a plan and schedule for securing the remaining non-Federal cost-share funding for the Project.

Please identify the sources of the non-Federal cost share contribution for the Project, including:

• Any monetary contributions by the applicant towards the cost-share requirement and source of funds (e.g., reserve account, tax revenue, and/or assessments)

• Any costs that will be contributed by the applicant

• Any third party contribution costs (i.e., goods and services provided by a third party)

• Any cash requested or received from other non-Federal entities

• Any pending funding requests (i.e., grants or loans) that have not yet been approved and explain how the project will be affected if such funding is denied.

In addition, please identify whether the budget proposal includes any project costs that have been or may be incurred prior to award. For each cost, describe:

o The project expenditure and amount o The date of cost incurrence o How the expenditure benefits the Project

Please include the following chart (Table 1) to summarize all funding sources. Denote in-kind contributions with an asterisk (*).

Table 1. Summary of Funding Sources

Funding Sources Amount

Non Federal Entities

1.

2.

3.

Non-Federal Subtotal

Requested Reclamation Funding

Budget Proposal The total project cost is the sum of all allowable items of costs, including all required cost sharing and voluntary committed cost sharing (including third-party contributions) that are necessary to complete the Project. The budget proposal should include detailed information on the categories listed below and must clearly identify all Project costs, including those that will be contributed as non-Federal cost share by the applicant (required and voluntary), third-party in-kind contributions, and those that will be covered using the funding requested from Reclamation, and any requested pre-award costs. Unit costs must be provided for all budget items, including the cost of services or other work to be provided by consultants and contractors. Applicants are strongly encouraged to review the procurement standards for Federal awards found at 2 CFR §200.317 through §200.326 before developing their budget proposal.

It is also strongly advised that applicants use the budget proposal format shown in Table 2 or a similar format that provides this information. If selected for award, successful applicants must submit detailed supporting documentation for all budgeted costs.

Table 2. Sample Budget Proposal Format

Budget Item Description Computation Quantity Type Total Cost

$/Unit Quantity

Salaries and Wages Employee 1 $ Employee 2 $ Employee 3 $ Fringe Benefits Full-Time Employees $ Part-Time Employees $ Travel Trip 1 $ Trip 2 $ Equipment Item A $ Item B $

Budget Item Description Computation Quantity Type Total Cost

$/Unit Quantity

Supplies and Materials Item A $ Item B $ Contractual/Construction Contractor A $ Contractor B $ Third-party Contributions Contributor A $ Contributor B $ Other Other $

Total Direct Costs $

Indirect Costs Type of rate percentage $base $

Total Estimated Project Costs $

Budget Narrative Submission of a budget narrative is mandatory. An award will not be made to any applicant who fails to fully disclose this information. The budget narrative provides a discussion of, or explanation for, items included in the budget proposal. The types of information to describe in the narrative include, but are not limited to, those listed in the following subsections. Costs, including the valuation of third-party in-kind contributions, must comply with the applicable cost principles contained in 2 CFR Part §200, available at the Electronic Code of Federal Regulations (www.ecfr.gov).

Salaries and Wages Indicate the program manager and other key personnel by name and title. The Project Manger must be an employee or board member of the applicant. Other personnel should be indicated by title alone. For all positions, indicate salaries and wages, estimated hours or percent of time, and rate of compensation. The labor rates must identify the direct labor rate separate from the fringe rate or fringe cost for each position. All labor estimates must be allocated to specific tasks as outlined in the applicant’s technical project description. Labor rates and proposed hours shall be displayed for each task.

The budget proposal and narrative should include estimated hours for compliance with reporting requirements, including final Project and evaluation. Please see Section F.3 Reporting Requirements and Distribution for information on types and frequency of reports required.

Generally, salaries of administrative and/or clerical personnel will be included as a portion of the stated indirect costs. If these salaries can be adequately documented as direct costs, they should be included in this section; however, a justification should be included in the budget narrative.

Fringe Benefits Identify the rates/amounts, what costs are included in this category, and the basis of the rate computations. Federally approved rate agreements are acceptable for compliance with this item.

Travel Identify the purpose of each anticipated trip, destination, number of persons traveling, length of stay, and all travel costs including airfare (basis for rate used), per diem, lodging, and miscellaneous travel expenses. For local travel, include mileage and rate of compensation. Note: travel costs incurred by contractors should not be included in this section, but these costs can be included in the contract cost estimate.

Equipment If equipment will be purchased, itemize all equipment valued at or greater than $5,000. For each item, identify why it is needed for the completion of the work proposed for funding and how the equipment was priced. Note: If the value is less than $5,000, the item should be included under materials and supplies.

If equipment is being rented, specify the number of hours and the hourly rate. Local rental rates are only accepted for equipment actually being rented or leased.

If the applicant intends to use their own equipment for the purposes of the Project, the proposed usage rates should fall within the equipment usage rates outlined by the United States Army Corps of Engineers (USACE) within their Construction Equipment Ownership and Operating Expense Schedule (EP 1110-1-8) at www.publications.usace.army.mil/USACE-Publications/Engineer- Pamphlets/u43545q/313131302D312D38.

Note: If the equipment will be purchased and installed under a construction contract, the equipment should be included in the construction contract cost estimate.

Materials and Supplies Itemize supplies by major category, unit price, quantity, and purpose, such as whether the items are needed for office use, research, or construction. Identify how these costs were estimated (i.e., quotes, past experience, engineering estimates, or other methodology).

Note: If the materials/supplies will be furnished and installed under a construction contract, the equipment should be included in the construction contract cost estimate.

Contractual Identify all work that will be accomplished by subrecipients, consultants, or contractors, including a breakdown of all tasks to be completed, and a detailed budget estimate of time, rates, supplies, and materials that will be required for each task. For each proposed contract, identify the procurement method that will be used to select the consultant or contractor and the basis for selection. Please note that all contracts with an anticipated value of $10,000 or more must use a competitive procurement method. Only contracts for architectural/engineering services can be awarded using a http://www.publications.usace.army.mil/USACE-Publications/Engineer-Pamphlets/u43545q/313131302D312D38 http://www.publications.usace.army.mil/USACE-Publications/Engineer-Pamphlets/u43545q/313131302D312D38 qualifications-based procurement method. If a qualifcations-based procurement method is used, profit must be negotiated as a separate element of the contract price. See 2 CFR §200.317 through §200.327 for additional information regarding procurements, including required contract content.

Third-Party Contributions Identify all work that will be accomplished by third-party contributors, including a breakdown of all tasks to be completed, and a detailed budget estimate of time, rates, supplies, and materials that will be required for each task. Third-party contributions, including contracts, must comply with all applicable administrative and cost principles criteria, established in 2 CFR Part §200, available at www.ecfr.gov, and all other requirements of this NOFO.

Environmental and Regulatory Compliance Costs Prior to awarding financial assistance, Reclamation must first ensure compliance with Federal environmental and cultural resources laws and other regulations (“environmental compliance”).

Every project funded under this program will have environmental compliance costs associated with activities undertaken by Reclamation and the recipient.

To estimate environmental compliance costs, please contact compliance staff at your local Reclamation Office for additional details regarding the type and costs of compliance that may be required for your project. Note: Support for your compliance costs estimate will be considered during review of your application. See Section G. Agency Contacts of this NOFO for a list of Reclamation staff by region to contact regarding compliance costs and requirements.

Environmental compliance costs are considered Project costs and must be included as a line item in the Project budget and will be cost shared accordingly. The amount of the line item should be based on the actual expected environmental compliance costs for the Project, including Reclamation’s cost to review environmental compliance documentation. Environmental compliance costs will vary based on Project type, location, and potential impacts to the environment and cultural resources.

How environmental compliance activities will be performed (e.g., by Reclamation, the applicant, or a consultant) and how the environmental compliance funds will be spent, will be determined pursuant to subsequent agreement between Reclamation and the applicant. The amount of funding required for Reclamation to conduct any environmental compliance activities, including Reclamation’s cost to review environmental compliance documentation, will be withheld from the Federal award amount and placed in an environmental compliance account to cover such costs. If any portion of the funds budgeted for environmental compliance is not required for compliance activities, such funds may be reallocated to the Project, if appropriate.

Costs associated with environmental and regulatory compliance must be included in the budget.

Compliance costs include costs associated with any required documentation of environmental compliance, analyses, permits, or approvals. Applicable Federal environmental laws could include NEPA, ESA, NHPA, CWA, and other regulations depending on the project. Such costs may include, but are not limited to:

• The cost incurred by Reclamation to determine the level of environmental compliance required for the Project

• The cost incurred by Reclamation, the recipient, or a consultant to prepare any necessary environmental compliance documents or reports

• The cost incurred by Reclamation to review any environmental compliance documents prepared by a consultant

• The cost incurred by the recipient in acquiring any required approvals or permits, or in implementing any required mitigation measures

Other Expenses Any other expenses not included in the above categories shall be listed in this category, along with description of the item and why it is necessary. No profit or fee will be allowed.

Indirect Costs a

Indirect costs that will be incurred during the development or construction of a Project, which will not otherwise be recovered, may be included as part of the applicant’s Project budget. Show the proposed rate, cost base, and proposed amount for allowable indirect costs based on the applicable cost principles for the recipient’s organization. It is not acceptable to simply incorporate indirect rates within other direct cost line items.

If the applicant has never received a Federal negotiated indirect cost rate, the budget may include a de minimis rate of up to 10 percent of modified total direct costs. For further information on modified total direct costs, refer to 2 CFR §200.1 available at www.ecfr.gov.

If the applicant does not have a federally approved indirect cost rate agreement and is proposing a rate greater than the de minimis 10 percent rate, include the computational basis for the indirect expense pool and corresponding allocation base for each rate. Information on “Preparing and Submitting Indirect Cost Proposals” is available from the Department’s Interior Business Center, and Indirect Cost Services, www.doi.gov/ibc/services/finance/indirect-cost-services. If the proposed project is selected for award, the recipient will be required to submit an indirect cost rate proposal with their cognizant agency within 3 months of award.

Total Costs Indicate total amount of Project costs, including the Federal and non-Federal cost-share amounts.

D.2.2.9. Letters of Support Please include letters from interested stakeholders supporting the Project. To ensure your proposal is accurately reviewed, please attach all letters of support/ partnership letters as an appendix. (Note:

This will not count against the application page limit.) Letters of support received after the application deadline for this NOFO will not be considered in the evaluation of the proposal.

D.2.2.10. State-Approved Plan or Governor’s Request Include a state-approved plan that includes the Project and documentation of state approval, or a request for Federal participation from the Governor of the state that the Project is located in. One of these must be included with the proposal by the proposal deadline of April 23, 2021 in order for http://www.doi.gov/ibc/services/finance/indirect-cost-services the Project to be eligible for funding under this NOFO. The state approved plan or Governor’s request will not be counted toward the page limitation.

D.2.2.11. Official Resolution Include an official resolution adopted by the applicant’s board of directors or governing body, or, for state government entities, a signed statement from an official authorized to commit the applicant to the financial and legal obligations associated with receipt of a financial assistance award under this NOFO, verifying:

• The identity of the official with legal authority to enter into an agreement

• The board of directors, governing body, or appropriate official who has reviewed and supports the application submitted

• The capability of the applicant to provide the amount of funding and/or in- kind contributions specified in the funding plan

• That the applicant will work with Reclamation to meet established deadlines for entering into a grant or cooperative agreement

An official resolution meeting the requirements set forth above is mandatory. If the applicant is unable to submit the official resolution by the application deadline because of the timing of board meetings or other justifiable reasons, the official resolution may be submitted to sha-dro-fafoa@usbr.gov up to 30 days after the application deadline.

D.3.