FY25 DRP NOFO_508 final_rev 8.26.24.pdf

U.S. Department of the Interior August 2024

Notice of Funding Opportunity No. R25AS00013

WaterSMART Drought Response Program:

Drought Resiliency Projects for Fiscal Year 2025

Mission Statements

The U.S. Department of the Interior protects and manages the Nation’s natural resources and cultural heritage; provides scientific and other information about those resources; and honors its trust responsibilities or special commitments to American Indians, Alaska Natives, Native Hawaiians, and affiliated Island Communities.

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 – Glen Canyon Dam, 2021. (Bureau of Reclamation) i

Synopsis

Federal Agency Name: Department of the Interior, Bureau of Reclamation, Water Resources and Planning Office Funding Opportunity Title: WaterSMART Drought Response Program: Drought Resiliency Projects for Fiscal Year 2025 Announcement Type: Notice of Funding Opportunity (NOFO) Funding Opportunity Number:

R25AS00013

Catalog of Federal Domestic Assistance Number:

15.514

Dates:

(See NOFO Sec. D.4)

Application Due Date:

Paper Submissions: Monday, October 7, 2024, 4:00 p.m. Mountain Daylight Time Online Submissions: Monday, October 7, 2024, 4:00 p.m. Mountain Daylight Time

Eligible Applicants:

(See NOFO Sec. C.1)

Applicants eligible to receive financial assistance under this NOFO include:

Drought Resiliency Projects: Tasks A-C Category A: States, Tribes, irrigation districts, and water districts; state, regional, or local authorities whose members include one or more organizations with water or power delivery authority; and other organizations with water or power delivery authority.

Category A applicants must be located in the Western United States or United States Territories, including Alaska, Arizona, California, Colorado, Hawaii, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming, American Samoa, Guam, the Northern Mariana Islands, the Virgin Islands, and Puerto Rico.

Category B: Nonprofit conservation organizations that are acting in partnership and with the agreement of an entity described in Category A.

Category B applicants must be in the United States or one of the Territories identified above.

Domestic Water Supply Projects: Task D States, Tribes, irrigation districts, and water districts; state, regional, or local authorities whose members include one or more organizations with water or power delivery authority;

and other organizations with water or power delivery authority. Task D applicants must be located in one of the following states or territories: 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, or the Virgin Islands.

Recipient Cost-Share:

(See NOFO Sec. C.2)

Domestic Water Supply Projects for Tribes or disadvantaged communities (Task D projects) require a five percent non-Federal cost-share1. All other projects require a non-federal cost-share of at least 50 percent or more of total project costs.

Federal Funding Amount:

(See NOFO Sec. B.1)

Drought Resiliency Projects Tasks A-C:

Funding Group I: Up to $750,000 per agreement for a project that can be completed within two years.

Funding Group II: Up to $3,000,000 per agreement for a project that can be completed within three years. Projects in this group may be funded on an annual basis. Funding for the second and third years of the project is contingent upon future appropriations.

Domestic Water Supply Projects Task D:

Up to $10,000,000 per agreement that can be completed within three years.

Estimated Number of Agreements to be Awarded:

(See NOFO Sec. B.1)

Approximately 20 to 40 projects contingent on available funding.

1 Non-Federal cost-share for Domestic Water Supply Projects is waivable upon request. See Section C.2 for more information.

Intergovernmental Review:

(See NOFO Sec. D.5)

An intergovernmental review may be required for applications submissions from a U.S.

state or local government prior to submission. Applicants should contact their State’s Single Point of Contact to comply with the state’s process under Executive Order 12372.

https://www.whitehouse.gov/wp-content/uploads/2020/04/SPOC-4-13-20.pdf iii

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

Mandatory Application Components: Page

Mandatory Federal forms:

• SF-424: Application for Federal Assistance (Office of Management and Budget

[OMB])

• SF-424A: Budget Information - Non-Construction Programs (OMB)

• SF-424D: Assurances - Construction Programs (OMB)

Unique Entity Identifier (UEI) and System for Award Management (SAM) registration 29

Technical Proposal (Use Project Narrative Attachment Form to upload in Grants.gov) 22

Budget Narrative (Use Budget Narrative Attachment Form to upload in Grants.gov) 25

Recommended Application Components: Page

Environmental and cultural resources compliance 25

Required permits or approvals 26

Overlap or duplication of effort statement 26

Conflict of interest disclosure statement 26

Uniform audit reporting statement 27

SF-LLL: Disclosure of Lobbying Activities (required, if applicable) (OMB) 27

Letters of Support 28

Certification Regarding Lobbying (if applicable) 27

Letter of Partnership (Category B applicants) and Applicant Eligibility Documentation 30

Official Resolution 28

Letters of Funding Commitment 28 v

Acronyms and Abbreviations AFY acre-feet per year ARC Application Review Committee ASAP Automated Standard Application for Payments CE Categorical Exclusion CEC Categorical Exclusion Checklist CEJST Climate and Economic Justice Screening Tool CFR Code of Federal Regulations CWA Clean Water Act Department Department of the Interior EA Environmental Assessment EIS Environmental Impact Statement E.O. Executive Order ESA Endangered Species Act FAPIIS Federal Award Performance Integrity Information System FOIA Freedom of Information Act FONSI Finding of No Significant Impact FY fiscal year IBC Interior Business Center IRA Infrastructure Reduction Act MDT Mountain Daylight Time NEPA National Environmental Policy Act NHPA National Historic Preservation Act NOAA National Oceanic and Atmospheric Administration NOFO Notice of Funding Opportunity NRCS Natural Resources Conservation Service OM&R operations, maintenance, and replacement OMB Office of Management and Budget P.L. Public Law Reclamation Bureau of Reclamation SAM System for Award Management SF Standard Form SPOC Single Point of Contact TAP Technical Assistance Program U.S.C. United States Code UEI Unique Entity Identifier USFWS United States Fish and Wildlife Service WaterSMART Sustain and Manage America’s Resources for Tomorrow West Western United States WIIN Water Infrastructure Improvements for the Nation vii

Contents Page

Application Checklist .......................................................................................................................... iii Acronyms and Abbreviations ............................................................................................................. v Contents .............................................................................................................................................. vii Section A. Funding Opportunity Description

Authority Background, Purpose, and Program Requirements Notice of Funding Opportunity Objectives Other Related Funding Opportunities

Section B. Award Information Total Funding Expected Award Amount Anticipated Announcement and Federal Award Date Number of Awards Type of Award Technical Assistance

Section C. Eligibility Information Eligible Applicants Cost Sharing or Matching Other Eligible Projects Ineligible Projects Construction Start Date Restriction

Section D. Application and Submission Information Address to Request Application Package Content and Form of Application Submission Unique Entity Identifier and System for Award Management Submission Date and Time Intergovernmental Review Funding Restrictions

Section E. Application Review Information Evaluation Criteria Review and Selection Process Federal Award Performance Anticipated Announcement and Federal Award Dates

Section F. Federal Award Administration Information Federal Award Notices Administrative and National Policy Requirements Reporting Requirements and Distribution Disclosures Data Availability (2 CFR §1402.315) Freedom of Information Act

Section G. Federal Awarding Agency Contact(s) Reclamation Financial Assistance Contact Reclamation Program Coordinator Contact

Section H. Other Information Environmental and Cultural Resource Considerations

Section A. Funding Opportunity Description

Authority This Notice of Funding Opportunity (NOFO) 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 (P.L.) 111-11 (42 United States Code [U.S.C.] 10364), as amended; and the Inflation Reduction Act (IRA) of 2022, P.L. 117-169, Section 50231.

Background, Purpose, and Program Requirements The United States 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 work cooperatively with States, Tribes, and local entities as they plan for and implement actions to increase water supply reliability through investments in existing infrastructure and attention to local water conflicts.

Drought conditions across the Western United States (West) impact a wide range of communities and sectors, including agriculture, cities, Tribes, the environment, recreation, hydropower producers, and others. The WaterSMART Drought Response Program supports a proactive approach to drought by providing financial assistance to develop and update comprehensive drought plans (Drought Contingency Planning) and implement projects that will build long-term resilience to drought (Drought Resiliency Projects).

Collaboration with a multitude of customers, partners, and stakeholders is essential to identifying successful strategies to address complex water management issues such as drought.

Collaborations are central to Reclamation’s approach to addressing drought in the West, and WaterSMART’s Drought Response Program supports the goals of the Interagency Drought Relief Working Group established in March 2021 and the National Drought Resiliency Partnership formed in 2016 to enhance Federal coordination of drought activities.

The WaterSMART Drought Response also provides support for priorities identified in Presidential Executive Order (E.O.) 14008: Tackling the Climate Crisis at Home and Abroad.

The WaterSMART Drought Response will advance the Biden-Harris Administration’s Justice 40 Initiative. Established by E.O. 14008, the Justice40 Initiative has made it a goal that

Notice of Funding Opportunity No. R24AS00299

40 percent of the overall benefits of certain federal investments, such as climate, clean energy, and other areas, flow to disadvantaged communities.1

With the passage of the IRA, through the Drought Resiliency NOFO, Reclamation now offers an opportunity that provides up to 95 percent of the cost for the planning, design, and construction of domestic water supply projects that benefit disadvantaged communities or households that do not have reliable access to domestic water supplies. Tribes, territories, and other disadvantaged communities are encouraged to reach out to the Program Coordinator contact in Section G.

Federal Awarding Agency Contact(s), to learn more about this opportunity. Some technical assistance may be available for these projects, contingent on Reclamation staff availability.

For further information on the Drought Response Program, please see www.usbr.gov/drought.

For further information on the WaterSMART Program, please see www.usbr.gov/WaterSMART.

Notice of Funding Opportunity Objectives This NOFO’s objective is to invite eligible applicants to submit proposals for projects that can increase water management flexibility and reliability. to help entities prepare for and address the impacts of drought and water supply shortages. Projects that may be funded under this NOFO are divided into four task areas (Task A, B, C, or D), and a brief summary of each task area is provided below. For more detailed information regarding task areas, please see Section C.4.

Eligible Projects.

Applicant eligibility and required non-federal cost-share vary by task area. Please see Sections C.1. Eligible Applicants and Section C.2. Cost Sharing or Matching for detailed information.

• Drought Resiliency Projects: Tasks A-C (50 percent non-federal cost-share required) o Task A: Increasing the Reliability of Water Supplies Through Infrastructure

Improvements.

o Task B: Increasing the Reliability of Water Supplies Through Groundwater.

o Task C: Projects to Improve Water Management Through Decision Support Tools, Modeling, and Measurement.

1 For more information, see E.O. 14008, Tackling the Climate Crisis at Home and Abroad (Jan. 27, 2023), https://www.federalregister.gov/documents/2021/02/01/2021-02177/tackling-the-climate-crisis-at-home-and-abroad; Justice40 Initiative, https://www.whitehouse.gov/environmentaljustice/justice40/.; Addendum to the Interim Implementation Guidance for the Justice 40 Initiative, M-21-28, on using the Climate and Economic Justice Screening Tool (CEJST), M-23-09, (January 27, 2023), https://www.whitehouse.gov/wp-content/uploads/2023/01/M-23-09 Signed CEQ CPQ.pdf https://www.usbr.gov/drought/ https://www.usbr.gov/watersmart/ https://www.federalregister.gov/documents/2021/02/01/2021-02177/tackling-the-climate-crisis-at-home-and-abroad https://www.federalregister.gov/documents/2021/02/01/2021-02177/tackling-the-climate-crisis-at-home-and-abroad https://www.whitehouse.gov/environmentaljustice/justice40/ https://www.whitehouse.gov/wp-content/uploads/2023/01/M-23-09_Signed_CEQ_CPO.pdf https://www.whitehouse.gov/wp-content/uploads/2023/01/M-23-09_Signed_CEQ_CPO.pdf

Section A. Funding Opportunity Description

• Domestic Water Supply Projects: Task D (Five percent non-Federal cost-share is required1)

Task D: Construction of domestic water supply projects for Tribes or disadvantaged communities that do not have reliable access to water supplies.

Proposals submitted under Task D need to demonstrate that the primary purpose of the proposed project is to provide domestic water supplies to communities or households that do not have reliable access to domestic water supplies.

Other Related Funding Opportunities WaterSMART Drought Contingency Planning. Financial assistance is provided under the Drought Response Program, on a 50/50 cost share basis, to develop a drought contingency plan or to update an existing plan.

WaterSMART Environmental Water Resources Projects. Projects focus on environmental benefits developed as part of a collaborative process to help carry out an established strategy to increase the reliability of water resources. Reclamation provides cost-share funding for projects that include water conservation and efficiency projects that result in quantifiable and sustained water savings and benefit ecological values; water management or infrastructure improvements to mitigate drought-related impacts to ecological values; and watershed management or restoration projects benefitting ecological values that have a nexus to water resources or water resources management.

The Federal share of the cost of an infrastructure improvement or activity may be up to 75 percent of the cost of the infrastructure improvement or activity if certain conditions are met.

WaterSMART Planning and Project Design Grants. Reclamation provides funding for collaborative planning and design projects to support water management improvements. This includes funding for comprehensive Drought Contingency Plans; Water Strategy Grants to investigate and develop activities and projects supporting water marketing, water conservation, drought resilience, and ecological values; and Project Design Grants to conduct project-specific design for projects supporting water conservation, drought resilience, and ecological values.

WaterSMART Grants: Water and Energy Efficiency Grants. Financial assistance is provided, on a 50/50 cost share basis for projects that conserve and use water more efficiently;

increase the production of hydropower; mitigate conflict risk in areas at a high risk of future

1 Non-Federal cost-share for Domestic Water Supply Projects is waivable upon request. See Section C.2 for more information.

water conflict; and accomplish other benefits that contribute to water supply reliability in the West.

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.

WaterSMART: Title XVI Water Infrastructure Improvements for the Nation (WIIN) Water Reclamation and Reuse Projects. Through this NOFO, funding is available for planning, design, and construction of Title XVI Projects and desalination projects that are eligible under Section 4009(c) of the WIIN Act.

Native American Affairs Technical Assistance Program (TAP). Reclamation’s Native American Affairs TAP provides technical assistance to assist Indian Tribes to develop, manage, and protect their water and related resources. Cost sharing is not required, and technical assistance requests must satisfy “Program Criteria.” Proposals are solicited via NOFO, and successful proposals approved for funding can be found on Reclamation’s website at the address below.

For information on the funding opportunities listed above, visit the WaterSMART Program website at www.usbr.gov/waterSMART, or the Native American Affairs Program TAP website at www.usbr.gov/native/programs/TAPprogram.html.

http://www.usbr.gov/waterSMART/ http://www.usbr.gov/native/programs/TAPprogram.html

Section B. Award Information Total Funding

This NOFO will allocate available program funds including fiscal year (FY) 2024 and 2025 enacted appropriations1 for the Drought Program and funding available through the IRA, P.L. 117-169. Applicants that are identified for IRA funding will need to meet additional requirements. See Section F.2.11. Inflation Reduction Act Signage Requirement for more information.

Funds made available under this NOFO are subject to the Build America, Buy America Act. Please see Section G.2.11 Buy America Domestic Procurement Preference.

The amount of funding available for awards under this NOFO will depend on the demand for funding under this opportunity. Any awards are subject to a determination by Reclamation that FY 2024 appropriations and/or FY 2025 appropriations are available.

Applications submitted under this NOFO may be considered if additional funding becomes available in FY 2024, 2025, or thereafter.

Expected Award Amount Multiple applications for funding may be submitted for consideration under this NOFO, provided that the project scopes are not duplicative. See Section C.3.1. Multiple Applications for more information.

B.2.1. Drought Resiliency Projects: Tasks A-C Maximum Award: $3,000,000 per project Minimum Award: $25,000 per project Applicants are invited to submit proposals under the following funding groups for Tasks A-C:

Funding Group I: Up to $750,000 in Federal funds provided through this NOFO will be available for projects that generally should be completed in two years.

Funding Group II: Up to $3,000,000 in Federal funds provided through this NOFO will be available for larger projects that may take up to three years to complete. Projects in this

1 Once appropriated.

group may be funded on an annual basis, and if so, funding for the second and third years of the project is contingent upon future appropriations.

If an applicant intends to submit applications for the same project under multiple funding groups, the project scope and overall project budget should be scaled accordingly.

Category A entities are limited to a total of $3,000,000 in Federal funding through this NOFO. Category B applicants may be considered for multiple awards up to a total of $15,000,000, if the Category A partners are different for each project selected. See Section C.3.1. Multiple Applications for more information.

B.2.2. Domestic Water Supply Projects for Tribes or Disadvantaged Communities: Task D Maximum Award: $10,000,000 Minimum Award: $25,000 Applicants are invited to submit proposals under Task D for the construction of domestic water supply projects for Tribes or disadvantaged communities that do not have reliable access to water supplies. In general, up to $10,000,000 in Federal funds may be awarded for projects to be completed in three years.

Anticipated Announcement and Federal Award Date For proposals submitted by the October 7, 2024, deadline, Reclamation expects to contact potential award recipients and unsuccessful applicants in February 2025 (or later if necessary). The anticipated award and completion dates are as follows:

Anticipated Award Date: September 1, 2025

Anticipated Project Completion Date: September 1, 2027 – September 1, 2028, dependent on Funding Group or Task.

Number of Awards Approximately 20–40 awards, depending on the amount requested by each applicant and the amount of Federal funding available, will be awarded under this NOFO. More awards may be made if additional funding becomes available.

Section B. Award Information

Type of Award 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 may include but is not limited to:

• 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.

Technical Assistance By request, Reclamation can provide technical assistance after award of the project. If you plan to receive Reclamation’s assistance, you must account for these costs in your budget.

Technical assistance should be discussed with Reclamation staff prior to applying. To discuss available assistance and associated costs, contact the Program Coordinator identified in Section G. Federal Awarding Agency Contact(s).

Section C. Eligibility Information

Eligible Applicants Applicant eligibility varies by project category, otherwise referred to as Task Area; therefore, please carefully review applicant eligibility for the Task in which you are applying. For more detailed information regarding eligibility per Task, please see Section C.4. Eligible Projects.

C.1.1. Eligible Applicants for Drought Resiliency Projects: Tasks A-C Category A applicants:

• States, Tribes, irrigation districts, and water districts.

• State, regional, or local authorities, the members of which include one or more organizations with water or power delivery authority.

• Other organizations with water or power delivery authority.

All Category A applicants must be located in one of the following States or Territories: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming, American Samoa, Guam, the Northern Mariana Islands, the Virgin Islands, or Puerto Rico.

Category B applicants:

Non-profit conservation organizations that are acting in partnership with, and with the agreement of, an entity described in Category A. All Category B applicants must be in the United States, or the specific Territories identified above.

Category B applicants should include with their application a letter from the Category A partner stating that the Category A partner:

• Is acting in partnership with the applicant;

• Agrees to the submittal and content of the application; and

• Intends to participate in the project in some way (e.g., by providing input, feedback, or other support for the project).

See Section D.2.2.12. Letter of Partnership (Category B Applicants) and Applicant Eligibility Documentation for additional information. Note: Partners do not necessarily need to contribute cost-share funding.

C.1.2. Eligible Applicants for Domestic Water Supply Projects: Task D States, Tribes, irrigation districts, and water districts; state, regional, or local authorities whose members include one or more organizations with water or power delivery authority; and other organizations with water or power delivery authority. Task D applicants must be located in one of the following states or territories: 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, or the Virgin Islands.

C.1.3. Ineligible Applicants Those not eligible include, but are not limited to, the following entities:

• Federal Governmental entities.

• Individuals.

• Institutes of higher education.

Cost Sharing or Matching Applicant cost-share requirements for projects funded under this NOFO are dependent on the project type.

Note: In accordance with provisions of P.L. 95-134, Title V, § 501 (1977) (codified at 48 U.S.C. 1469a), as amended by P.L. 96-205, Title V, § 601, this cost-sharing requirement is not applicable to American Samoa, Guam, the Northern Mariana Islands, or the Virgin Islands.

Drought Resiliency Projects Tasks A-C:

Applicants must be capable of cost sharing 50 percent (50%) 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 include 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. See Section D.2.2.3. Budget Narrative and Section D.2.2.13. 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.

Drought Resiliency Projects Task D:

A five percent (5%) non-Federal cost-share or match is required.

For Task D projects only, applicants may request a cost-share waiver or reduction in cost-share as part of the proposal package. As part of the waiver request, include information and documentation addressing the criteria below. Reclamation will use this information when considering whether to reduce or waive the non-Federal cost share requirement.

• Overwhelming Federal Interest. Reclamation will make a determination of whether an overwhelming Federal interest exists based on factors such as the programs and policies of the President and the Secretary of the Department of the Interior.

• Financial Hardship. In determining whether a significant financial need exists the following factors will be considered:

o The population-weighted median household income and average unemployment rate within the study area and the state based on the latest available data from the U.S. Census Bureau’s American Community Survey (https://www.census.gov/programs-surveys/acs/data/data-tables.html).

o Family poverty level for the state as estimated by guidelines published annually by the U.S. Department of Health and Human Services (https://aspe.hhs.gov/ topics/poverty-economic-mobility/poverty-guidelines) o A current financial statement of the applicant and a statement that the applicant does not possess sufficient funds or assets to pay for all or part of the required cost share.

For more information regarding cost share waivers, please contact the Program Coordinator identified in Section G. Agency Contacts.

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 www.ecfr.gov.

C.2.2. Third-Party In-Kind Contributions Third-party in-kind 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. Applicants may not include as part of their cost-share for projects funded under this NOFO 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 https://www.census.gov/programs-surveys/acs/data/data-tables.html https://doimspp-my.sharepoint.com/personal/slooper_usbr_gov/Documents/aspe.hhs.gov/poverty-guidelines https://doimspp-my.sharepoint.com/personal/slooper_usbr_gov/Documents/aspe.hhs.gov/poverty-guidelines http://www.ecfr.gov/ financial assistance agreement, a Federal procurement contract, or any other award of Federal funds. Applicants should refer to 2 CFR §200.434 Contributions and donations for regulations regarding the valuation of third-party in-kind contributions.

Other

C.3.1. Multiple Applications Multiple applications for funding may be submitted for consideration under NOFO (e.g., an applicant may submit a proposal for funding under Funding Group I and a separate proposal under Funding Group II), provided that the project scopes are not duplicative.

For Tasks A-C, Category A entities are limited to a total of $3,000,000 in Federal funding under this NOFO. Category B applicants may be considered for multiple awards up to a total of $15,000,000 under this NOFO, if the Category A partners are different for each project selected.

For Task D, in general, no more than $10,000,000 will be awarded to any one entity.

In general, if you are seeking funding for multiple project components, and the components are interrelated or closely related (e.g., a project to construct a new storage and conveyance system coupled with a decision support tool for operation of the system), you should combine these in one application. However, if the projects are only loosely related or are independently operated, you should submit them as separate applications.

C.3.2. Excluded Parties Reclamation conducts a review of the SAM.gov Exclusions database for all applicant entities and their key project personnel prior to award and ineligibility condition apply to this Federal program. If entities or key project personnel are identified in the SAM.gov Exclusions database as ineligible, prohibited/restricted or otherwise excluded from receiving Federal contracts, certain subcontracts, and certain Federal assistance and benefits, Reclamation cannot award funds to them.

Eligible Projects In general, under this NOFO, Reclamation will provide funding for projects that increase water supply reliability and build long-term resilience to drought. Proposed projects should aim to mitigate the necessity for emergency drought response actions, such as water hauling programs and temporary infrastructure, while providing sustained benefits that build long-term resilience.

To be eligible for funding under this NOFO, the proposed project should be beyond routine water management activities or activities required by state law for conservation and efficiency.

https://sam.gov/content/exclusions https://sam.gov/content/exclusions

Applicants can apply for funding in one or more of the following four task areas (Task A, B, C, or D) described below. Please see Section C.1.1. Eligible Applicants for Drought Resiliency Projects: Tasks A-C and Section C.1.2. Eligible Applications for Domestic Water Supply Projects: Task D to ensure you are an eligible applicant for the task area in which you are applying.

One phase of a larger project may be eligible for funding under this program, so long as the phase proposed for funding will generate benefits to address drought resiliency or water supply reliability, independent of completing additional phases. Certain restrictions apply to phased projects that include water reclamation, reuse, desalination, and water storage. Please see Section C.5.3. Water Reclamation, Reuse, and Desalination and C.5.4. Small Surface Water and Groundwater Storage Projects for more information.

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

Proposed projects will be reviewed by the Program Office to determine whether the project type is eligible for evaluation.

Projects may be prioritized to ensure balance among the program task areas (described below) and to ensure that the projects address the goals and objectives of the NOFO.

C.4.1. Task A: Increasing the Reliability of Water Supplies Through Infrastructure Improvements Even small investments in infrastructure can improve resiliency to drought by increasing water management flexibility and providing alternative sources of water supply. For example, constructing new surface water intakes or new conveyance system components, such as pipes or pumping plants, can provide water managers with much needed options to deliver water from alternative sources or support voluntary water transfers during drought. Likewise, aquifer recharge facilities can support water banking in wet years for use in dry years and sustainable conjunctive use programs. (Please note that Task A projects do not include groundwater treatment or the construction or rehabilitation of wells. Please see Task B for well construction and rehabilitation.)

Task A projects include, but are not limited to the following:

• System modifications or improvements. Projects that will increase flexibility of water conveyance and deliveries, facilitating access to water supplies in times of drought.

Projects include, but are not limited to:

o Constructing or modifying surface water intakes to access supplies when water levels are low (e.g., at dead pool), or to allow access at different locations.

o Constructing new conveyance system components (pipelines, canals, pumping plants, etc.) to increase flexibility to deliver water from different sources, to facilitate voluntary water marketing or to deliver water from alternative sources.

o Constructing interties between water conveyance systems to increase options for water deliveries.

o Installing barriers or other facilities to prevent saltwater intrusion into surface supplies.

• Storing water and/or recharging groundwater supplies. Projects that enable the capture or storage of additional water supplies that can be made available during drought.

Projects include, but are not limited to:

o Developing or expanding small-scale surface water storage facilities such as off-stream storage ponds.

o Installing water towers and storage tanks to store water for municipal and domestic use.

o Installing recharge ponds or injection wells to increase recharge of surplus, inactive, or reclaimed water. Recharged water can serve multiple purposes such as sustainable conjunctive use in times of drought, deterring saltwater intrusion into freshwater aquifers, and limiting additional land subsidence.

• Developing alternative sources of water supply including water treatment. Projects that develop alternative water supplies to build resiliency to the impacts of drought.

Projects include, but are not limited to:

o Constructing or expanding small-scale water treatment facilities to treat impaired surface water, municipal wastewater or stormwater runoff for environmental, agricultural, potable, or other purposes.

o Constructing stormwater capture and reuse systems, including green stormwater infrastructure solutions such as rain gardens, cisterns, and bioswales.

o Installing residential grey water and rain catchment systems.

Note for applicants applying for recharge basins: Multiple recharge basins in one application will be considered as one project (or a phase of a larger project, if applicable) and the total project costs cannot exceed $10 million (see Section C.5.4. Small Surface Water and Groundwater Storage Projects) to be eligible under this NOFO.

C.4.2. Task B: Increasing the Reliability of Water Supplies Through Groundwater As water managers continue to face vulnerabilities due to drought and climate change, diversification of water supplies is critical for water security. The sustainable use of groundwater and recovery of recharged water are vital to building drought resiliency and supporting public health. Groundwater treatment and aquifer storage and recovery programs are becoming an important water management tool and the water recovered from these programs are being used for municipal and industrial water supplies, irrigation, and ecosystem restoration.

Wells funded under Task B of this NOFO are meant to be used for supplemental supplies during times of drought, to serve communities that are or are potentially facing a public health crisis due to a lack potable water, or to recover previously recharged/stored water. This NOFO is not intended to provide funding for wells that are part of a long-term planning effort to support increased need due to population growth or increased irrigation demands. However, if you are a Tribe or disadvantaged community that doesn’t currently have reliable access to domestic water supplies and are looking to construct a domestic water supply system, please see Section C.4.4.

Task D: Domestic Water Supply Projects for Tribes or Disadvantaged Communities below.

Projects under Task B may include, but are not limited to the following:

• Constructing or rehabilitating a well to provide back-up water supplies during times of drought.

• Constructing an extraction well at groundwater banks or other recharge areas to improve extraction and return capabilities during dry years.

• Constructing an aquifer storage and recovery well)

• Treating impaired groundwater for beneficial use.

• Note for applicants applying for groundwater projects: Applications under Task B for groundwater projects (including rehabilitation and the treatment of well water) will be limited to two wells under this NOFO. If two wells are included in the same application, the application must describe their interdependency. This limitation does not apply to monitoring or injection wells.

C.4.3. Task C: Projects to Improve Water Management Through Decision Support Tools, Modeling, and Measurement Task C Projects are intended to help entities with water use information and tools to monitor the onset of drought, detect different levels of drought that may trigger certain drought mitigation and response actions, and identify potential strategies to address drought.

Task C Projects include, but are not limited to the following:

• Developing water management, water marketing, and modeling tools to help communities evaluate options and implement strategies to address drought.

o Developing online decision support tools to help communities identify alternative water supplies or water management options in times of drought.

For example, in 2019, Reclamation awarded the Texas Water Development Board with a Drought Resiliency Grant to modify their existing drought prediction tool to provide more accurate probabilistic forecast of average May through July rainfall, reservoir levels, and reservoir storage across the state by county. The project was completed in 2022, and the forecasts are updated bi-weekly and made accessible for water managers through the Water Data for Texas website:

www.waterdatafortexas.org/reservoirs/statewide.

o Developing new models or improving existing models for analyzing and predicting drought conditions. Such models should be based on proven methods to analyze drought frequency, duration, and intensity, as opposed to research type efforts.

o Developing water budgets and tiered pricing programs that incentivize decreased consumptive use. Tiered pricing can be paired with water budgets to reward customers who use less water by charging lower rates for water in a lower tier. For example, Tier I pricing can include a relatively low price for indoor water use within a budgeted amount (e.g., 55 gallons per person per day). Reasonable water use above that amount—assumed to be for outdoor use—would be included within Tier 2 pricing at a higher cost than Tier 1. Tier 3 would establish an even higher price for all water use that exceeds the total water budget.

o Real-time operational modeling to track supply conditions and demands. Modeling can be used to analyze different operational scenarios to optimize pumping capacities, evaluate user restrictions, water delivery needs, etc., and determine how to best meet other compliance standards such as temperature control points, water quality, or Endangered Species Act (ESA)-related requirements.

o Assessing water quality with respect to the level of drought to determine appropriate measures to protect water quality for fish and wildlife, agriculture, and human consumption (e.g., water quality testing or constructing groundwater monitoring wells).

o Developing tools to facilitate water marketing, connecting willing sellers and willing buyers that want to participate in the buying, selling, leasing, or exchanging of water.

• Installing water measurement equipment and monitoring instrumentation devices to accurately track water supply conditions (e.g., stream flow measurement structures, flow meters, well level instruments, reservoir level monitors).

Projects that primarily install meters or other water measurement devices are considered routine water management activities and are, therefore, not eligible for funding under this program as a standalone project. However, meters or other measuring devices are eligible as a necessary sub-component of another eligible Drought Resiliency Project as described in Tasks A-C.

Eligible measurement projects may include, but are not limited to:

o Installing and/or modifying monitoring equipment associated with stream flow measurement devices, water level sensors, etc.

http://www.waterdatafortexas.org/reservoirs/statewide o Installing dual municipal meters to track indoor versus outdoor water use, allowing water purveyors to control or discourage landscape irrigation and other outdoor uses in times of drought.

C.4.4. Task D: Domestic Water Supply Projects for Tribes or Disadvantaged Communities Task D projects are for the construction of domestic water supply projects of which the primary purpose is to provide domestic water supplies to Tribal or disadvantaged communities that do not have reliable access to water supplies. This can include the development of new supplies and/or associated infrastructure for treatment and delivery. Please note that total project costs under Task D cannot exceed $10,000,000.

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

scientific research, water hauling, education and outreach, land fallowing, cover cropping, and reimbursement for economic losses resulting from drought.

Other projects that are not eligible for funding under this NOFO are identified immediately below.

C.5.1. Operations, Maintenance, and Replacement In accordance with Section 9504 of Secure Water Act, projects that are considered normal operations, maintenance, and replacement (OM&R) are not eligible for funding under this NOFO. OM&R is described as system improvements that replace or repair existing infrastructure or function without providing increased efficiency or effectiveness of water distribution over the expected life of the improvement. Examples of ineligible OM&R projects include:

• 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., a 10-year interval).

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

• Sealing cracks in canals and/or pipes, including those sealant projects intended to improve facilities with inherent design and construction flaws.

• Replacing broken meters with new meters of the same type.

• Replacing leaky pipes with new pipes of the same type.

• Dredging of reservoirs, canals, and/or rivers to remove normally occurring sediment accumulation.

Applicants that have questions regarding OM&R are encouraged to contact the Program Coordinator (see Section G.2. Reclamation Program Coordinator Contact) prior to the application deadline for further information.

C.5.2. Water Conservation Projects Projects primarily focused on water conservation are not eligible under this NOFO, including:

• Lining or piping canals to conserve water.

• Installing landscape irrigation measures.

• Turf replacement.

• Water metering and measurement projects are ineligible as a standalone project but may be included if paired with another project that is eligible under Tasks A-C, as a necessary subcomponent of that task.

Projects that will result in water conservation as a secondary consideration, such as decision support tools that improve operational efficiency, are eligible under this NOFO, so long as they are consistent with the eligible projects described in Tasks A-C in Section C.4. Eligible Projects.

C.5.3. Water Reclamation, Reuse, and Desalination Any projects or project elements that are part of a congressionally authorized Title XVI Water Reclamation or Reuse Project are not eligible for funding under this NOFO.

Any projects or project elements that are part of a water desalination or recycling project eligible for funding under Section 4009(a) or 4009(c) of the WIIN Act, P.L. 114-322 are not eligible for funding under this NOFO.

In addition, if a water desalination, reclamation, or recycling project has a total estimated project cost of more than $20 million, that project is not eligible under this NOFO and should be pursued under the Title XVI Water Reclamation and Reuse Program or the WaterSMART Desalination Planning and Construction Program. Note, this applies to phases or project elements of a desalination, reclamation, or recycling project that are part of a larger project with a total estimated project cost of more than $20 million.

See the Title XVI-Water Reclamation and Reuse webpage, www.usbr.gov/watersmart/title, for more information.

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

C.5.4. Small Surface Water and Groundwater Storage Projects An application for funding of a small surface or groundwater storage project (including groundwater recharge) with a total estimated project cost of more than $10 million, or that is a phase of a larger project that exceeds $10 million, is not eligible under this NOFO. Applicants proposing such projects may wish to consider Reclamation’s Small Storage Program. See the Small Storage Program webpage, www.usbr.gov/smallstorage, for more information.

C.5.5. Domestic Water Supply Projects An application proposing a domestic water supply project to serve Tribes or disadvantaged communities with a total estimated project cost of more than $10 million, or that is a phase of a larger project that exceeds $10 million, is not eligible under this NOFO.

C.5.6. Water, Land Purchases, and Easements The purchase of water, land, or land with the primary purpose to secure a permanent easement, are not eligible under this NOFO.

C.5.7. Emergency Drought Response Projects Emergency drought response projects that provide temporary benefits, including projects involving temporary facilities (e.g., temporary pipes and pumps) and water purchases.

Applicants seeking funding drought emergency relief should request emergency drought assistance under Reclamation’s Drought Response Program. See the WaterSMART Drought Response Program webpage, www.usbr.gov/drought, for more information.

C.5.8. Drought Contingency Planning Development or updates of drought contingency plans are not eligible under this NOFO but may be eligible for funding under Reclamation’s WaterSMART Planning and Design NOFO.

C.5.9. Building Construction Proposals to construct a building are not eligible for Federal funding under this NOFO (e.g., a building to house administrative staff or a building to house promotion of public awareness for water conservation).

C.5.10. Pilot Projects Proposals to conduct a pilot study to evaluate technical capability, economic feasibility, or viability for full-scale implementation or to test an unproven material or technology are not eligible for Federal funding under this NOFO.

https://doimspp-my.sharepoint.com/personal/slooper_usbr_gov/Documents/www.usbr.gov/drought

C.5.11.