fy13-weeg-foa-final.pdf

U.S. Department of the Interior Policy and Administration

Bureau of Reclamation Denver, Colorado October 2012

Funding Opportunity Announcement No. R13SF80003

WaterSMART:

Water and Energy Efficiency Grants for FY 2013

Mission Statements

The U.S. Department of the Interior protects America’s natural resources and heritage, honors our cultures and tribal communities, and supplies the energy to power our future.

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.

Synopsis iii

Synopsis Federal Agency Name: U.S. Department of the Interior, Bureau of Reclamation, Policy and

Administration

Funding Opportunity Title: WaterSMART: Water and Energy Efficiency Grants for Fiscal Year

(FY) 2013

Announcement Type: Funding Opportunity Announcement (FOA)

Funding Opportunity Number:

R13SF80003

Catalog of Federal Domestic Assistance (CFDA) Number:

15.507

Dates:

(See FOA Sec. IV.B)

Application due date: January 17, 2013 4:00 p.m. Mountain Standard Time (MST)

Eligible Applicants:

(See FOA Sec. III.A)

States, Indian tribes, irrigation districts, water districts, or other organizations with water or power delivery authority located in the western United States or United States Territories as identified in the Reclamation Act of June 17, 1902, as amended

Recipient Cost Share:

(See FOA Sec. III.E)

50 percent or more of project costs

Federal Funding Amount:

(See FOA Sec. II.B)

Funding Group I: Up to $300,000 per agreement for a project up to 2 years.

Funding Group II: Up to $1,500,000 for a project up to three years. Projects in this group will be funded on an annual basis.

Applicants may not request more than $750,000 for any one year of the project. Funding for the second and third years of the project is contingent upon future appropriations.

Estimated Number of Agreements to be Awarded:

(See FOA Sec. II.B)

Funding Group I: It is expected that the majority of awards will be made for projects in Funding Group I compared to Funding Group

II.

Funding Group II: It is expected that fewer awards will be made for projects in Funding Group II compared to Funding Group I.

Estimated Amount of Funding Available for Award:

(See FOA Sec. II.A)

The President’s fiscal year (FY) 2013 budget request included $21.5 million proposed for WaterSMART Grants. The amount of funding available for award for this WaterSMART Grant FOA will be determined once final FY 2013 appropriations have been made.

Please note that approximately $3.5 million of FY 2013 WaterSMART Grants funding will be allocated for additional phases of previously selected FY 2012 Funding Group II Water and Energy Efficinecy Grant projects. This FOA will be cancelled if FY 2013 appropriations are insufficient to support new awards. Applications submitted under this FOA may also be considered if other funding becomes available in FY 2013 or subsequently. Please refer to <www.usbr.gov/WaterSMART/WEEG> for updated funding information.

http://www.usbr.gov/WaterSMART/WEEG�

Application Checklist v

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

√ What to submit Form or format

When to submit Cover page Form SF 424, available at:

<http://apply07.grants.gov/apply/FormLinks?family=15>

Assurances Form SF 424B or SF 424D, as applicable, available at:

<http://apply07.grants.gov/apply/FormLinks?family=15>

Title page Page 23 *

Table of contents Page 23 *

Technical proposal:

(1) Executive

Summary

(2) Background data

(3) Technical project description

(4) Evaluation criteria

Pages 24 and 37 - 53

Description of Performance Measures

Pages 61 - 79

Environmental Compliance Pages 25 - 26 and 79 - 80 *

Required permits and approvals

Funding plan Page 28 *

Commitment letters Page 28 **

Project budget proposal:

• Budget narrative

• Budget form

Form SF 424A or SF 424C, as applicable, available at:

<http://apply07.grants.gov/apply/FormLinks?family=15>

* Submit materials with your application by January 17, 2013 **Documents should be submitted with your application; however, please refer to the applicable section of the FOA for extended submission dates.

http://apply07.grants.gov/apply/FormLinks?family=15�

Acronyms and Abbreviations vii

Acronyms and Abbreviations

AMR/AMI automatic meter reading/information AOR Authorized Organization Representatives ARC Application Review Committee AWEP Agricultural Water Enhancement Program CFDA Catalog of Federal Domestic Assistance CFR Code of Federal Regulations CE Categorical Exclusion CEC Categorical Exclusion Checklist CPA certified public accountant CWA Clean Water Act Department U.S. Department of the Interior DUNS Data Universal Number System EA Environmental Assessment E-Biz POC E-Business Point of Contact EIN Employer Identification Number EIS Environmental Impact Statement EQIP Environmental Quality Incentive Program ESA Endangered Species Act ET evapotranspiration FAQ Frequently Asked Question FEMA Federal Emergency Management Agency FERC Federal Energy Regulatory Commission FOA Funding Opportunity Announcement FONSI Finding of No Significant Impact FY fiscal year GIS Geographical Information System GO Grants Officer IRS Internal Revenue Service LOPP Lease of Power Privilege MST Mountain Standard Time NEPA National Environmental Policy Act NHPA National Historic Preservation Act NOAA National Oceanic and Atmospheric Administration NRCS Natural Resources Conservation Service O&M operation and maintenance OM&R Operations, Maintenance, and Replacement OMB Office of Management and Budget PVC polyvinyl chloride Reclamation Bureau of Reclamation ROD Record of Decision SCADA Supervisory Control and Data Acquisition SAM System for Award Management SOR System Optimization Review TIN Taxpayer Identification Number USFWS U.S. Fish and Wildlife Service WaterSMART Sustain and Manage America’s Resources for Tomorrow

Contents ix

Contents Page

Section I. Funding Opportunity Description I.A. WaterSMART: Water and Energy Efficiency Grants I.B. Objective of Funding Opportunity Announcement I.C. Program Authority I.D. Frequently Asked Questions

Section II. Award Information II.A. Total Project Funding II.B. Project Funding Limitations II.C. Reclamation Responsibilities II.D. Award Date

Section III. Eligibility Information III.A. Eligible Applicants III.B. Eligible Projects

III.B.1. Task A–Water Conservation III.B.2. Task B–Energy-Water Nexus III.B.3. Implementing Renewable Energy Projects Related to Water

Management and Delivery III.B.4. Increasing Energy Efficiency in Water Management III.B.5. Task C–Benefits to Endangered Species III.B.6. Task D–Water Markets

III.C. Ineligible Projects III.C.1. Operations, Maintenance, and Replacement (OM&R) III.C.2. Title XVI Water Recycling and Reuse III.C.3. Water Purchases III.C.4. Building Construction

III.D. Length of Projects III.E. Cost-Sharing Requirement

III.E.1. Cost Share Regulations III.E.2. In-Kind Contributions III.E.3. Pre-Award Costs III.E.4. Indirect Costs

III.F. Environmental and Culutral Resources Compliance III.G. Requirements for Agricultural Operations [Public Law 111-11, Section 9504(a)(3)(B)] III.H. Other Requirements

III.H.1. Title to Improvements [Public Law 111-11, Section 9504(a)(3)(D)]

III.H.2. Operation and Maintenance (O&M) Costs [Public Law 111-11, Section 9504(a)(3)(E)(iv)]

III.H.3. Liability [Public Law 111-11, Section 9504(a)(3)(F)] In General Tort Claims Act

III.H.4. System for Award Management Section IV. Application and Submission Information x

IV.A. Address to Request Application Package IV.B. Application Submission Date and Time

IV.B.1. Submission Date IV.B.2. Application Delivery Instructions

IV.C. Instructions for Submission of Project Application IV.C.1. Applications Submitted by Mail IV.C.2. Applications Submitted Electronically IV.C.3. Application Format and Length IV.C.4. Application Content SF-424 Application Cover Page SF-424 Assurances Title Page Table of Contents Technical Proposal and Evaluation Criteria

Executive Summary Background Data Technical Project Description Evaluation Criteria

IV.D. Performance Measures IV.D.1. Environmental and Cultural Resources Compliance IV.D.2. Required Permits or Approvals IV.D.3. Official Resolution IV.D.4. Project Budget Funding Plan and Letters of Commitment Budget Proposal Budget Narrative

Salaries and Wages Fringe Benefits Travel Equipment Materials and Supplies Contractual Environmental and Regulatory Compliance Costs Reporting Other Expenses Indirect Costs Total Costs

Budget Form IV.E. Funding Restrictions

Section V. Application Review Information V.A. Technical Proposal: Evaluation Criteria

V.A.1. Evaluation Criterion A: Water Conservation (28 points) Subcriterion No. A.1.—Water Conservation

Subcriterion No. A.1(a)—Quantifiable Water Savings Subcriterion No. A.1(b)—Improved Water Management

Subcriterion No. A.2.—Percentage of Total Supply:

Contents xi

Subcriterion No. A.3.—Reasonableness of Costs V.A.2. Evaluation Criterion B: Energy-Water Nexus (16 points) Subcriterion No. B.1.—Implementing Renewable Energy

Projects Related to Water Management and Delivery:

Subcriterion No. B.2.—Increasing Energy Efficiency in Water

Management V.A.3. Evaluation Criterion C: Benefits to Endangered Species

(12 points) V.A.4. Evaluation Criterion D: Water Marketing (12 points) V.A.5. Evaluation Criterion E: Other Contributions to Water Supply

Sustainability (14 points) V.A.6. Evaluation Criterion F: Implementation and Results

(10 points) Subcriterion No. F.1.—Project Planning Subcriterion No. F.2.—Readiness to Proceed Subcriterion No. F.3.—Performance Measures

V.A.7. Evaluation Criterion G: Additional Non-Federal Funding (4 points)

V.A.8. Evaluation Criterion H: Connection to Reclamation Project Activities (4 points)

V.B. Review and Selection Process V.B.1. Initial Screening V.B.2. Application Review Committee (ARC) Review V.B.3. Red-Flag Review V.B.4. Managerial Review

V.C. Pre-Award Clearances and Approvals Section VI. Award Administration Information

VI.A. Award Notices VI.B. Award Document VI.C. Releasing Applications VI.D. Water Savings Validation VI.E. Reporting Requirements and Distribution

VI.E.1. Financial Reports VI.E.2. Program Performance Reports

Section VII. Agency Contacts Section VIII. Other Information

VIII.A. FY2013 WaterSMART Water and Energy Efficiency Grants:

Performance Measures

VIII.A.1. Performance Measure No. A.: Projects with Quantifiable Water Savings

Performance Measure No. A.1.—Canal Lining/Piping Performance Measure No. A.2.—Measuring Devices

Measuring Devices: a. Municipal Metering Measuring Devices: b. Irrigation Metering

Performance Measure No. A.3.—SCADA and Geographic Information Systems (GIS) xii

Performance Measure No. A.4.—Automation Performance Measure No. A.5.—Groundwater Recharge

(Conjunctive Use) Performance Measure No. A.6.—Irrigation Drainage Reuse

Projects Performance Measure No. A.7.—Landscape Irrigation Measures

Landscape Irrigation Measures: a. Turf Removal Landscape Irrigation Measures: b. Smart Irrigation

Controllers Landscape Irrigation Measures: c. High-Efficiency

Nozzles VIII.A.2. Performance Measure No. B.: Projects with Quantifiable

Energy Savings Performance Measure No. B.1.—Implementation of Renewable

Energy Improvements Related to Water Management and Delivery

Performance Measure No. B.2.—Increasing Energy Efficiency in Water Management

VIII.A.3. Performance Measure No. C.: Projects that Benefit Endangered Species and/or Critical Habitat

VIII.A.4. Performance Measure No. D.: Projects that Establish a Water Market

Performance Measure No. D.1.—Groundwater Substitution Transfers.. 78 Performance Measure No. D.2.—Crop Shifting or Idling Transfers Performance Measure No. D.3.—Other Transfers

VIII.B. Overview of Environmental and Cultural Resources Compliance Requirements

VIII.B.1. Review within the Application Evaluation Process VIII.B.2. Review of Initially Recommended Projects VIII.B.3. Overview of Relevant Environmental Laws National Environmental Policy Act (NEPA) National Historic Preservation Act (NHPA) Endangered Species Act (ESA)

Section I. Funding Opportunity Description

Section I. Funding Opportunity Description

I.A. WaterSMART: Water and Energy Efficiency Grants The Nation faces an increasing set of water resource challenges. Aging infrastructure, rapid population growth, depletion of groundwater resources, impaired water quality associated with particular land uses and land covers, water needed for human and environmental uses, and climate variability and change all play a role in determining the amount of fresh water available at any given place and time. Water shortages and water-use conflicts have become more commonplace in many areas of the United States, even in normal water years. As competition for water resources grows—for crop irrigation, growing cities and communities, energy production, and the environment—the need for information and tools to aid water resource managers also grows. Water issues and challenges are increasing across the Nation, but particularly in the West, due to prolonged drought.

These water issues are exacerbating the challenges facing traditional water management approaches which by themselves no longer meet today’s needs. The U.S. Department of the Interior’s (Department) WaterSMART (Sustain and Manage America’s Resources for Tomorrow) Program establishes a framework to provide Federal leadership and assistance on the efficient use of water, integrating water and energy policies to support the sustainable use of all natural resources, and coordinating the water conservation activities of various Department bureaus and offices. Through the WaterSMART Program, the Department is working to achieve a sustainable water management strategy to meet the Nation’s water needs.

For further information on the WaterSMART Program, please see <http://www.usbr.gov/WaterSMART/>.

I.B. Objective of Funding Opportunity Announcement The objective of this Funding Opportunity Announcement (FOA) is to invite States, Indian tribes, irrigation districts, water districts, and other organizations with water or power delivery authority to leverage their money and resources by http://www.usbr.gov/WaterSMART/� cost sharing with the Bureau of Reclamation (Reclamation) on projects that seek to conserve and use water more efficiently, increase the use of renewable energy and improve energy efficiency, benefit endangered and threatened species, facilitate water markets, or carry out other activities to address climate-related impacts on water or prevent any water-related crisis or conflict.

Through this FOA, Reclamation also makes funding available for water management improvements that complement other ongoing efforts to address water supply sustainability. For example, through the WaterSMART Basin Study Program, Reclamation is working with State and local partners, as well as other stakeholders, to comprehensively evaluate the ability to meet future water demands within a river basin. The Basin Studies allow Reclamation and its partners to evaluate potential impacts of climate change to water resources within a particular river basin, and to identify adaptation strategies (i.e., strategies to mitigate the impacts of water shortages resulting from climate change, drought, increased demands, or other causes) to address those impacts. This FOA provides an opportunity for partners who have completed a Basin Study to apply for cost-shared funding to implement Basin Study adaptation strategies that meet the eligibility and other requirements of this FOA.

In addition, funding is available through this FOA for water delivery system improvements that will enable farmers to make additional on-farm improvements in the future, including improvements that may be eligible for Natural Resources Conservation Service (NRCS) funding.

I.C. Program Authority This FOA is issued under the authority of Section 9504(a) of the Secure Water Act, Subtitle F of Title IX of the Omnibus Public Land Management Act of 2009, Public Law 111-11 (42 United States Code 10364).

I.D. Frequently Asked Questions A list of Frequently Asked Questions (FAQ) about WaterSMART and this FOA can be found on-line at <www.usbr.gov/WaterSMART/weeg/faq.html>. The list of FAQs will be updated periodically during the application period.

http://www.usbr.gov/WaterSMART/weeg/faq.html�

Section II. Award Information

Section II. Award Information

II.A. Total Project Funding The President’s fiscal year (FY) 2013 budget request included $21.5 million for WaterSMART Grants (WaterSMART Grants include: Water and Energy Efficiency Grants; System Optimization Review Grants; Advanced Water Treatment Pilot and Demonstration Project Grants; and Grants to Develop Climate Analysis Tools). A portion of this request is intended for WaterSMART Water and Energy Efficiency Grants, which is the subject of this FOA. The amount of funding available to fund projects through this FOA will be determined once Congress approves final FY 2013 appropriations. Updated funding information is available at: <www.usbr.gov/WaterSMART/WEEG>.

II.B. Project Funding Limitations Multiple applications for funding may be submitted for consideration (for example, an applicant may submit a proposal for funding under Funding Group I and a separate proposal under Funding Group II). However, no more than $750,000 in total FY 2013 WaterSMART Water and Energy Efficiency Grant funds will be awarded to any one applicant under this FOA.

The Federal share (Reclamation’s share in addition to any other sources of Federal funding) of any one proposed project shall not exceed 50 percent of the total project costs. Generally, the non-Federal share of project costs must be expended at the same or greater rate as the federal share of project costs.

Applicants are invited to submit proposals under one of two Funding Groups:

Funding Group I: Up to $300,000 in Federal funds provided through this FOA will be available for smaller, on-the-ground projects.

• In general, projects funded under Funding Group I should be completed within 2 years of award (see Section III.D. Length of Projects for additional information).

• It is expected that funds will be awarded no later than September 30, 2013, contingent on appropriations.

http://www.usbr.gov/WaterSMART/WEEG�

• It is expected that the majority of awards will be made for projects in Funding Group I compared to projects in Funding Group II (described below).

Funding Group II: Up to $1,500,000 in Federal funds provided through this FOA will be available for larger, phased on-the-ground projects that may take up to 3 years to complete.

• Projects selected under Funding Group II will be funded on an annual basis, for a period of up to 3 years. No more than $750,000 in Federal funds will be provided within a given Federal fiscal year (October 1 through September 30) to complete each phase of a selected project, with a maximum of $1,500,000 available for the entire project.

• Each phase of the project is expected to be substantially completed within one year of award. Recipients must demonstrate sufficient progress to receive subsequent funding for remaining phases of the project.

• Federal funding under this FOA for the first year of phased projects will be awarded no later than September 30, 2013. Funding for the remaining project years will be made available contingent on subsequent congressional appropriations. (Note: Recipients will not be asked to reapply to receive FY 2014 and FY 2015 funding).

• It is expected that only a small number of awards will be made for projects in Funding Group II.

Figure 1 (below) illustrates the funding process for a project that is requesting funding under Funding Group II. In this example, District X is requesting funding for a three-year project that includes environmental compliance for the entire project, canal lining, piping, installing a Supervisory Control and Data Acquisitions (SCADA) system, and installing a small-scale hydro-electric plant.

In its application under this FOA, District X describes the entire project, (which is expected to be completed over 3 years) and requests a total of $1,500,000 to complete the project. In its application, District X explains that in the first year (Year One) $200,000 in Federal funding will be used to perform environmental compliance on all three phases of the proposed project and to line a one-mile stretch of canal; that in the second year (Year Two) $750,000 in Federal funding will be used to convert 10 miles of open ditch lateral to buried polyvinyl chloride (PVC) pipe and to install the SCADA system; and that in the third year (Year Three), $550,000 in Federal funding will be used to install a small-scale hydroelectric plant.

If District X is successful at securing a WaterSMART Grant award under this FOA, the District would receive $200,000 in FY 2013 funding to complete Year One of the project. Contingent on the availability of appropriations and satisfactory progress in the first year, District X would then receive $750,000 in FY 2014 funding—without

Section II. Award Information reapplying—to complete Year Two of the project, and $550,000 in FY 2015 funding to complete Year Three of the project. The result is a three-year overall project, with a total Federal cost share of $1,500,000.

Figure 1. Sample application process for Funding Group II.

II.C. Reclamation Responsibilities Project awards will be made through grants or cooperative agreements as applicable to each 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.

• Oversight may include 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 the project. If you receive Reclamation’s assistance, you must account for these costs in your budget. To discuss available assistance and these costs, contact your local Reclamation office, listed at <www.usbr.gov/main/ regions.html>.

District X submits a

WaterSMART Water and

Energy Efficiency Grant proposal under Funding Group II, describing a three- year overall project.

Contingent on appropriations, District X receives FY

2015 funding to begin work on Phase III of the project ($550,000)

District X is successful at securing a WaterSMART Grant award under this FOA

District X receives FY

2013 funding to begin work on Phase I of the

($200,000)

Contingent on appropriations, District X receives FY

2014 funding to begin work on Phase II of the

($750,000)

Application Selection Year One Year Two Year Three

District X’s Overall Three Year $1.5 million Federal Cost Shared WaterSMART Grant Project http://www.usbr.gov/main/regions.html�

II.D. Award Date Reclamation expects to contact potential award recipients and unsuccessful applicants in March, or slightly later if necessary, based on the enactment of FY 2013 appropriations. Within one to three months after that date, assistance agreements will be awarded to applicants that successfully pass all pre-award reviews and clearances.

Section III. Eligibility Information

Section III. Eligibility Information

III.A. Eligible Applicants Under P.L. 111-11, Section 9502, an eligible applicant is a State, Indian tribe, irrigation district, water district, or other organization with water or power delivery authority.

Applicants must also be located in the western United States or 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.

Those not eligible include the following entities:

• Federal governmental entities

• Institutions of higher education

• Individuals

III.B. Eligible Projects Projects should seek to conserve and use water more efficiently, increase the use of renewable energy and improve energy efficiency, protect endangered and threatened species, facilitate water markets, or carry out other activities to address climate-related impacts on water or prevent any water-related crisis or conflict.

Tasks A-D, below, describe projects eligible for funding under this FOA.

Applications may include any one, or a combination, of the types of projects described in Tasks A-D. In general, if you are seeking funding for multiple projects (for example, a Task A project and a Task C project) and the projects are interrelated or closely related, they should be combined in one application.

Applicants may submit multiple project proposals; however, no more than $750,000 in FY 2013 funding will be awarded to any one applicant under this FOA. Phased projects may request funding up to $1,500,000, but the initial obligation will not exceed $750,000 in the first year, or any subsequent year(s), of the agreement.

Other projects that are similar to those listed below may be submitted for consideration and will be allowed to the extent consistent with program authorization and goals.

Note: During Third-Level Evaluation (Managerial Review, see Section V.B.4.)

Reclamation will review the results of the Second-Level Evaluation (Technical Review, see Section V.B.2.) and may prioritize projects to ensure that multiple Task Areas are represented among the projects selected for funding.

III.B.1. Task A–Water Conservation Projects that result in quantifiable and sustained water savings or improved water management (please note that an agreement will not be awarded for an improvement to conserve irrigation water unless the applicant agrees to the terms of Section 9504(a)(3)(B) of Public Law 111-11. See Section III.G. of this FOA for further information). Projects include, but are not limited to:

• Canal Lining/Piping: Projects that line or pipe canals, resulting in conserved water. Projects include, but are not limited to:

o Installing new proven lining materials or technology o Converting open canals to pipeline o Constructing conveyance improvements, turnouts, pipelines, or intertie systems

• Municipal Metering: Projects that install meters, resulting in measureable water savings. Projects include, but are not limited to:

o Installing water service meters o Installing distribution systems meters associated with production and/or leakage quantification

• Irrigation Flow Measurement: Projects that improve measurement accuracy and result in reduced spills and over-deliveries to irrigators.

Projects include, but are not limited to:

o Installing weirs, flumes, ramps, etc. in open channels o Installing meters in pressurized pipes

• SCADA and Automation: Projects that install SCADA and/or automation components that provide water savings when irrigation delivery system operational efficiency is improved to reduce spills, over-deliveries, and seepage. Projects include, but are not limited to:

o Installing SCADA components that allow for remote monitoring of irrigation delivery system conditions (flow rates, water elevations, controls devices openings, etc.)

o Installing automation components that allow for remote operation of delivery system control features (gates, valves, turnouts, etc.)

• Groundwater Recharge: Projects that provide savings when surface water storage evaporation is reduced and/or surface runoff is intercepted for recharge. Projects include, but are not limited to:

o Installing recharge ponds o Installing surface runoff interception systems o Removing impervious surfaces

• Landscape Irrigation Measures: Projects that provide water savings by reducing outdoor water usage. These measures include turf removal, Smart irrigation controllers (weather or soil-moisture based) and high-efficiency nozzles (sprinkler heads). These measures are typically promoted by water entities through rebates or direct-install programs.

Projects include, but are not limited to:

o Removing turf o Installing Smart irrigation controllers o Installing high-efficiency nozzles (e.g., sprinkler heads)

• High-Efficiency Indoor Appliances and Fixtures: Projects that promote installation of high-efficiency indoor appliance and fixtures to provide water savings for municipal water entities where there is significant potential for replacing existing non-efficient indoor appliances and fixtures. This is typically promoted by water entities through rebates or direct-install programs. Projects include, but are not limited to:

o Installing high-efficiency toilets, clothes washers, dishwashers, faucets, etc.

III.B.2. Task B–Energy-Water Nexus Projects that increase the use of renewable energy sources in the management and delivery of water and/or projects that upgrade existing water management facilities resulting in quantifiable and sustained energy savings. Projects include, but are not limited to, those discussed in the following subsections.

III.B.3. Implementing Renewable Energy Projects Related to Water Management and Delivery Renewable energy projects related to water management and delivery include, but are not limited to:

• Installing small-scale hydroelectric, solar-electric, wind energy, geothermal power systems, or other facilities that enable use of these or other renewable energy sources (e.g., replacing fossil fuel powered pumps with renewable energy based pumps, installing low-head hydrokinetic power generation units in a water system)

• Producing and using biomass or renewable fuels (including woody and herbaceous crops and residues, solid waste, sewage, and liquid fuels from agricultural products) (e.g., developing or using technology that would transform algae into a renewable oil source)

Proposals including a renewable energy component typically require additional permitting not needed for other water management improvements (e.g., canal lining). In evaluating these proposals, Reclamation may consider the applicant’s progress in obtaining a Federal Energy Regulatory Commission (FERC) license or a Reclamation Lease of Power Privilege (LOPP), depending on which is applicable. Applicants for a project including a renewable energy component are asked to include documentation of steps taken to date for obtaining a FERC license or a LOPP.

Note that improvements to Federal facilities that are implemented through any project awarded funding through this FOA 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 Section III.H.1.

Applicants proposing renewable energy development may wish to contact Mr.

Dean Marrone, WaterSMART Grants Coordinator, at 303-445-3577 or dmarrone@usbr.gov prior to the application deadline to discuss the requirements listed above.

mailto:dmarrone@usbr.gov�

III.B.4. Increasing Energy Efficiency in Water Management Projects that increase energy efficiency in water management include, but are not limited to:

• Retrofitting or modernizing water management facilities or equipment to increase energy efficiency (e.g., installing Variable Frequency Drives, Advanced Meter Readings, or “smart grid” technology on pump and water systems)

• Quantifiably reducing energy consumption through water conservation projects that reduce pumping or diversions

III.B.5. Task C–Benefits to Endangered Species Projects that benefit federally listed species (threatened or endangered) or designated critical habitat affected by a Reclamation facility or action as well as projects that benefit federally recognized candidate species. Projects include, but are not limited to:

• Improving habitat, including restoring habitat, making additional water available, and managing vegetation

• Installing fish bypasses and fish screens as well as improving hatcheries

III.B.6. Task D–Water Markets Projects that implement or use water markets to make water available to meet other existing water supply needs or uses (e.g., agricultural, municipal, or dedication to instream flows). Projects include, but are not limited to:

• Projects that develop a water market that would provide a mechanism for willing participants to buy, sell, lease, or exchange water to avoid or reduce water conflicts

• Projects that would result in the contribution of conserved water to an existing water market

• Projects that would make conserved water available for agricultural, municipal, or instream uses through a sale, lease, or exchange to another water user

Note: Projects that simply include the sale of conserved water to an existing customer are not considered water marketing projects under this task area.

III.C. Ineligible Projects Projects that are not eligible for funding under this FOA include those not specifically described in Section III.B. Some examples of types of projects specifically ineligible for funding are listed below.

III.C.1. Operations, Maintenance, and Replacement (OM&R) Projects that are considered normal OM&R are not eligible. 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:

• Replacing malfunctioning components of an existing facility with the same components

• Improving an existing facility to operate as originally designed

• Performing an activity on a recurring basis, even if that period is extended

(e.g., 10-year interval)

• Sealing expansion joints of concrete lining because the original sealer or the water stops have failed

• Replacing broken meters with new meters of the same type

• Replacing leaky pipes with new pipes of the same type

III.C.2. Title XVI Water Recycling and Reuse Title XVI is Reclamation’s water recycling and reuse program, focused on identifying and investigating opportunities to reclaim and reuse wastewaters and naturally impaired ground and surface water. In general, this FOA is not intended for water recycling and reuse projects. Note, however, that small-scale improvements that relate to an existing water recycling facility (that is not an authorized Title XVI project) may be considered eligible for funding.

Any projects or project elements that are part of a congressionally authorized Title XVI project of Public Law 102-575, as amended (43 United States Code 390h et seq.), are not eligible for funding under this FOA. In addition, if a project sponsor is likely to seek funding for the activity through the Title XVI Program in the future (e.g., seeking congressional funding for the project or preparing a Title XVI feasibility study that describes the activity as part of a proposed Title XVI project) that activity should be pursued under the Title XVI Program instead of this FOA. Please contact Mr. Dean Marrone, WaterSMART Program Coordinator, at 303-445-3577 or dmarrone@usbr.gov, for further information.

For additional information on the Title XVI Program, please visit:

<http://www.usbr.gov/WaterSMART/title.html>.

III.C.3. Water Purchases A project that proposes using Federal funding primarily for the purchase of water is not eligible under this FOA.

III.C.4. Building Construction A project that proposes to construct a building is not eligible for Federal funding under this FOA (e.g., a building to house administrative staff or to promote public awareness of water conservation).

III.D. Length of Projects In general, Funding Group I projects should be completed within 2 years of award. Funding Group II projects should not exceed 3 years in total duration (e.g., a maximum of three year-long phases). Each year, Funding Group II projects are expected to complete the work planned as part of that year’s phase.

Applications for projects requiring more time will be considered for funding only under limited circumstances. For example, some renewable energy project installations may require additional time to secure necessary permits.

III.E. Cost-Sharing Requirement Applicants must be capable of cost sharing 50 percent or more of the total project costs. Cost sharing may be made through cash or in-kind contributions from the applicant or third-party partners. 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 a WaterSMART Grants project 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. Funding commitment letters must be submitted in accordance with Section IV.C., “Instructions for Submission of Project Application” and contain the information stated at Section IV.C.4, “Application Content, subsection “Funding Plan and Letters of Commitment.”

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Note: applicants proposing a Funding Group II project are not required to have non-Federal cost share funding secured for the entire project at the time of award. Funding Group II applicants must demonstrate sufficient evidence that non-Federal cost-share for the first year of the project will be available by the start of that phase and

III.E.1. Cost Share Regulations must describe a plan and schedule for securing non- Federal funding for subsequent years of the project.

All cost-share contributions must meet the criteria established in the Office of Management and Budget’s (OMB) administrative and cost principles circulars that apply to the applicant, available at <www.whitehouse.gov/omb/circulars>.

III.E.2. In-Kind Contributions In-kind contributions constitute the value of noncash contributions that benefit a federally assisted project. These contributions may be in the form of real property, equipment, supplies and other expendable property, as well as the value of goods and services directly benefiting and specifically identifiable to the project or program. The cost or value of in-kind contributions that have been or will be relied on to satisfy a cost-sharing or matching requirement for another Federal financial assistance agreement, a Federal procurement contract, or any other award of Federal funds may not be relied on to satisfy the cost-share requirement for WaterSMART Grant applications.

III.E.3. Pre-Award Costs Project pre-award costs that have been incurred prior to the date of award may be submitted for consideration as an allowable reimbursable expense. In no case will pre-award costs incurred prior to July 01, 2012, be considered for cost share purposes.

For example, such costs might include design or construction plans and environmental compliance costs directly supporting the proposed project.

Reclamation will review the proposed pre-award costs to determine if they are allowable in accordance with the authorizing legislation and applicable cost principles. To be considered allowable, any pre-award costs proposed for consideration under the new awards must comply with all applicable requirements under this FOA.

III.E.4. Indirect Costs 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. Indirect costs are those: (1) incurred for a common or joint purpose benefiting more than one cost objective, and (2) not readily assignable to any one cost objective. If the applicant proposes indirect costs in the budget, then the applicant must either supply a copy of a current federally-negotiated indirect cost rate agreement or obtain an agreement within one year of http://www.whitehouse.gov/omb/circulars� award. For further information on indirect costs, refer to the applicable OMB cost principles circular available at <www.whitehouse.gov/omb/circulars>.

III.F. Environmental and Culutral Resources Compliance All projects being considered for award funding will require compliance with the National Environmental Policy Act (NEPA) before any ground-disturbing activity may begin. Compliance with all applicable state, Federal and local environmental, cultural, and paleontological resource protection laws and regulations is also required. These may include, but are not limited to, the Clean Water Act (CWA), the Endangered Species Act (ESA), National Historic Preservation Act (NHPA), consultation with potentially affected tribes, and consultation with the State Historic Preservation Office.

Reclamation will be the lead Federal agency for NEPA compliance and will be responsible for evaluating technical information and ensuring that natural resources, cultural, and socioeconomic concerns are appropriately addressed. As the lead agency, Reclamation is solely responsible for determining the appropriate level of NEPA compliance. Further, Reclamation is responsible to ensure that findings under NEPA, and consultations, as appropriate, will support Reclamation’s decision on whether to fund a project. Environmental and cultural resources compliance costs are part of an applicant’s cost share. These costs will be considered in the ranking of applications.

Note: applicants proposing a Funding Group II project must address the environmental and cultural resources compliance questions for their entire project, not just the first one-year phase.

Under no circumstances may an applicant begin any ground-disturbing activities (including grading, clearing, and other preliminary activities) on a project before environmental and cultural resources 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 such compliance is complete. An applicant that proceeds before environmental and cultural resources compliance is complete may risk forfeiting Reclamation funding under this FOA.

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III.G. Requirements for Agricultural Operations [Public Law 111-11, Section 9504(a)(3)(B)] In accordance with Section 9504(a)(3)(B) of Public Law 111-11, grants and cooperative agreements under this authority will not be awarded for an improvement to conserve irrigation water unless the applicant agrees to both of the following conditions:

• Not to use any associated water savings to increase the total irrigated acreage of the eligible applicant; and

• Not to otherwise increase the consumptive use of water in the operation of the eligible applicant, as determined pursuant to the law of the State in which the operation of the eligible applicant is located.

III.H. Other Requirements Applicants shall adhere to Federal, State, Territorial, and local laws, regulations, and codes, as applicable, and shall obtain all required approvals and permits.

Applicants shall also coordinate and obtain approvals from site owners and operators.

III.H.1. Title to Improvements [Public Law 111- 11, Section 9504(a)(3)(D)] If the activities funded through an agreement awarded under this FOA result in a modification to a portion of a federally owned facility that is integral to the existing operations of that facility, the Federal government shall continue to hold title to the facility and the improvements thereto. Title to improvements that are not integral to existing water delivery operations shall reside with the project sponsor.

III.H.2. Operation and Maintenance (O&M) Costs [Public Law 111-11, Section 9504(a)(3)(E)(iv)] The non-Federal share of the costs for O&M of any infrastructure improvement funded through an agreement awarded under this FOA shall be 100 percent.

III.H.3. Liability [Public Law 111-11, Section 9504(a)(3)(F)] In General Except as provided under chapter 171 of Title 28, United States Code (commonly known as the “Federal Tort Claims Act”), the United States shall not be liable for monetary damages of any kind for any injury arising out of an act, omission, or occurrence that arises in relation to any facility created or improved through an agreement awarded under this FOA, the title of which is not held by the United States.

Tort Claims Act Nothing in this section increases the liability of the United States beyond that provided in “Federal Tort Claims Act”.

III.H.4. System for Award Management All applicants must be registered in the System for Awards Management (SAM)prior to award under this FOA. Instructions for resgistering for SAM are located at <www.sam.gov/portal/public/SAM>. All applicants must maintain an active SAM registration with current information at all times while they have an active Federal award or an application under consideration.

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Section IV. Application and Submission Information

Section IV. Application and Submission Information

IV.A. 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 FOA by contacting:

By mail: Bureau of Reclamation Financial Assistance Services Attn: Ms. Michelle Maher Mail Code: 84-27850 P.O. Box 25007 Denver CO 80225

E-mail: mmaher@usbr.gov

Phone: 303-445-2025

IV.B. Application Submission Date and Time IV.B.1. Submission Date Application submission date deadline:

• January 17, 2013, 4:00 p.m. Mountain Standard Time (MST)

Proposals received after the application deadline will not be considered unless it can be determined that the delay was caused by Federal government mishandling or by the Grants.gov application system.

Please note that any application submitted to Reclamation for WaterSMART Grant funding may be subjected to a Freedom of Information Act request

(5 United States Code § 552, as Amended by Public Law No. 110-175), and as a result, may be made publicly available. Following awards of funding, Reclamation will post all successful applications on the Reclamation website after redactions as determined by Reclamation to be necessary.

IV.B.2. Application Delivery Instructions Applications may be submitted electronically through <www.grants.gov> or hard copies may be submitted to either one of the following addresses. Under no circumstances will applications received through any other method (such as email or fax) be considered eligible for award.

By mail:

Acquisition Operations Group Attn: Ms. Michelle Maher Mail Code: 84-27810 P.O. Box 25007 Denver, CO 80225

Express delivery/mail services:

Attn: Ms. Michelle Maher Mail Code: 84-27810

Denver Federal Center 6th Avenue and Kipling Street Denver, CO 80225

Telephone: 303-445-2025

IV.C. Instructions for Submission of Project Application Each applicant shall submit an application in accordance with the instructions contained in this section.

IV.C.1. Applications Submitted by Mail Please follow these instructions to submit your application by mail.

• Applicants shall submit an original and one copy of all application documents for hardcopy submissions. Each document should be clearly identified as the “ORIGINAL” or as a “COPY.”

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• Please only staple or binder clip documents submitted.

• Hard copy applications may be submitted by mail or express methods to the addresses listed in Section IV.B, above.

• Materials arriving separately will not be included in the application package and may result in the application being rejected or not funded.

This does not apply to letters of support, funding commitment letters and official resolutions.

• Faxed and emailed copies of application documents will not be accepted.

• Do not include a cover letter or company literature/brochure with the application. All pertinent information must be included in the application package.

IV.C.2. Applications Submitted Electronically If the applicant chooses to submit an electronic application it must be submitted through Grants.gov at <www.grants.gov>. Reclamation encourages applicants to submit their applications for funding electronically through <www.grants.gov/ applicants/apply_for_grants.jsp>. Applicant resource documents and a full set of instructions for registering with Grants.gov and completing and submitting applications online are available at: <www.grants.gov/applicants/ get_registered.jsp>.

• Please note that submission of an application electronically requires prior registration through Grants.gov, which may take 7-21 days. Please see registration instructions at <www.grants.gov/applicants/ get_registered.jsp>.

• Applicants have sometimes experienced significant delays when attempting to submit applications through Grants.gov. If you plan to submit your application through Grants.gov, you are encouraged to submit your application several days prior to the application deadline. If you are a properly registered Grants.gov applicant and encounter problems with the Grants.gov application submission process, you must contact the Grants.gov Help desk to obtain a “Case Number.” This Case Number will provide evidence of your attempt to submit an application prior to the submission deadline.

Regardless of the delivery method used, you must ensure that your proposal arrives by the date and time deadline stated in Section IV.B., above. Late applications will not be accepted unless it is determined that the delay was caused by Federal government mishandling or by a problem with the Grants.gov application system.

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