WaterSMART_FY24 DRP NOFO_508_8-7-2023.pdf

U.S. Department of the Interior August 2023

Notice of Funding Opportunity No. R24AS00007

WaterSMART Drought Response Program:

Drought Resiliency Projects for Fiscal Year 2024

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; honors its trust responsibilities or special commitments to American Indians, Alaska Natives, 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 – Lake Meade, 2022. (Bureau of Reclamation)

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 (FY) 2024

Announcement Type: Notice of Funding Opportunity (NOFO)

Funding Opportunity Number: R24AS00007

Assistance Listing Number: 15.514

Dates:

(See NOFO Sec. D.4)

Application due date: Friday, October 31, 2023, 4:00 pm Mountain Daylight Time (MDT) (Paper Submissions). Friday October 31, 2023, 10:00 pm MDT (grants.gov submissions)

Eligible Applicants:

(See NOFO Sec. C.1)

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 A State, Tribe, irrigation district, water district, or other organization with water or power delivery 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 for 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 is required.

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

Federal Funding Amount (See NOFO Sec. B.2)

Drought Resiliency Projects Tasks A-C:

Funding Group I: Up to $500,000 per agreement for a project that can be completed within two years.

Funding Group II: Up to $2,000,000 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.

Funding Group III: Up to $5,000,000 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)

Approximately 25 to 40 projects contingent upon available Federal appropriations.

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 (SPOC) to comply with the state’s process under Executive Order 12372. www.whitehouse.gov/wp-content/uploads/2020/04/SPOC-4-13-20.pdf http://www.whitehouse.gov/wp-content/uploads/2020/04/SPOC-4-13-20.pdf http://www.whitehouse.gov/wp-content/uploads/2020/04/SPOC-4-13-20.pdf

Application Checklist This table summarizes the information you are required to submit with your application.

Mandatory Application Components: Required Content Page

Mandatory Federal forms:

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

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

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

Assurances - Construction Programs (OMB)

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

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

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

Recommended Application Components: Content Page

Environmental and cultural resources compliance 26

Required Permits and Approvals 26

Overlap or duplication of effort statement 26

Conflict of interest disclosure statement 27

Uniform audit reporting statement 28

SF-LLL: Disclosure of Lobbying Activities (required, if applicable) 28

Letters of Support 28

OMB 4040-0013 Certification Regarding Lobbying (if applicable). 29

Letter of Funding Commitment 29

Acronyms and Abbreviations ARC Application Review Committee ASAP Automated Standard Application for Payments BIL Bipartisan Infrastructure Law CE Categorical Exclusion CEC Categorical Exclusion Checklist CEJST Climate and Economic Justice Screening Tool CFR Code of Federal Regulations CWA Clean Water Act DOI U.S. Department of the Interior EA Environmental Assessment EIS Environmental Impact Statement E.O. Presidential Executive Order ESA Endangered Species Act FAIN Federal Award Identification Number FAPIIS Federal Award Performance Integrity Information System FGDC Federal Geospatial Data Committee FOIA Freedom of Information Act FONSI Finding of No Significant Impact FY Fiscal Year GIS Geographic Information Systems IRA Inflation Reduction Act OMB Office of Management and Budget OM&R Operations, Maintenance, and Replacement NAICS North American Industry Classification System 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 P.L. Public Law PSC Product Service Code Reclamation Bureau of Reclamation SAM System of Award Management SPOC Single Point of Contact TAP Technical Assistance Program UEI Unique Entity Identifier U.S.C. United States Code USFWS U.S. Fish and Wildlife Service WaterSMART Sustain and Manage America’s Resources for Tomorrow WIIN Water Infrastructure Improvements for the Nation

Contents Section A. Program Description

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

Section B. Award Information Total Funding Expected Award Amounts Anticipated Award Funding and Dates Number of Awards Type of Award Technical Assistance

Section C. Eligibility Information Eligible Applicants Cost Sharing or Matching Other Eligible Projects

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

Section E. Application Review Information Evaluation Criteria Review and Selection Process Federal Award Performance Integrity Information System 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 Contacts Reclamation Financial Assistance Contact Reclamation Program Coordinator Contact

Section H. Other Information Environmental and Cultural Resource Considerations

Section A. Program 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 of 2022, P.L. 117-169, Section 50231.

Background, Purpose, and Program Requirements

The U.S. Department of the Interior’s (DOI) 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 West impact a wide range of communities and sectors, including agriculture, cities, Tribes, the environment, recreation, hydropower producers, and others. While waves of precipitation have hit the Western United States since December of 2022, as of August 3, 2023, the U.S. Drought Monitor indicates that more than 51 percent of the land in the United States is still in abnormally dry to exceptional drought conditions. 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 and aligned with other priorities, such as those identified in E.O. 13985: Advancing Racial Equity and Support for Underserved Communities Through the Federal Government. The WaterSMART Drought Response will advance the Biden-Harris Administration’s Justice40 Initiative. Established by E.O. 14008, the Justice40 Initiative has made it a goal that

Notice of Funding Opportunity Announcement No. R24AS00007

40 percent of the overall benefits of certain federal investments, such as climate, clean energy, and other areas, flow to disadvantaged communities.2

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.

With the passage of the Inflation Reduction Act (IRA), Reclamation is able to offer an opportunity that provides up to 100 percent of the cost for the planning or design 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 Contacts, to learn more about this opportunity. If your project is selected, some technical assistance may be available, contingent on Reclamation staff availability.

Notice of Funding Opportunity Purpose and Objectives

This NOFO’s objective is to invite eligible applicants to submit proposals for projects that can increase water management flexibility—making our water supply more resilient. This helps to 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. Applicant Eligibility 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 Recovery.

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

Proposals submitted under Tasks A-C need to demonstrate that the proposed project is supported by an existing drought planning effort. It is a well-established principle that

2 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/.

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/

Section A. Funding Opportunity Description proactively identifying resiliency projects through drought planning, in advance of a crisis, is far more cost effective than emergency response. As stated on the University of Nebraska’s Drought Resources website, droughtresources.unl.edu/why-plan:

One frequently cited estimate from the Federal Emergency Management Agency is that “mitigation”—taking steps ahead of time to prevent known impacts from a natural disaster—saves $4 for every $1 expended.

Planning ahead is generally seen as more efficient and more effective than measures taken in crisis mode. Drought researchers have found that after-the-fact assistance to farmers, for example, is expensive and doesn’t necessarily reach the right people.

• Domestic Water Supply Projects: Task D (Five percent non-Federal cost-share is required3)

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 and that the project will benefit Tribes or disadvantaged communities.

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.

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

https://droughtresources.unl.edu/why-plan

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 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 water conflict; and accomplish other benefits that contribute to water supply reliability in the Western United States.

• 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 Tribes to develop, manage, and protect their water and related resources. Cost sharing is not required.

• Inflation Reduction Act Section 50231. A request for proposals from the Native American and International Affairs Office will be circulated in 2023 to solicit project proposals for planning, design, or construction of water projects to provide domestic water supplies to disadvantaged communities or households that do not have reliable access to domestic water supplies.

For information on the funding opportunities listed above, visit the WaterSMART Program website at www.usbr.gov/waterSMART or the Native American Affairs Program Technical Assistance Program 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 enacted appropriations for the Drought Program, funding available under the Bipartisan Infrastructure Law (BIL), P.L. 117-58, and funding made available through the IRA, P.L. 117-169.

Applications submitted under this NOFO also may be considered if additional funding becomes available in FY 2024 or thereafter. Applicants that are identified for BIL funding will need to meet additional requirements, including Buy American and Wage Rate Requirements (Davis- Bacon Act). See Section F.2.10 Buy America Domestic Preference and Section F.2.11 Additional Bipartisan Infrastructure Law Requirements: Wage Rate Requirements for more information.

Expected Award Amounts

Multiple applications for funding may be submitted for consideration under this funding opportunity, 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: $5,000,000

Minimum Award: $25,000

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.

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 the following funding groups for Tasks A-C:

Funding Group I: Up to $500,000 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 $2,000,000 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 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.

Funding Group III: Up to $5,000,000 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 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.

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. Up to $10,000,000 in Federal funds provided through this NOFO will be available for projects that generally should be completed in three years.

Anticipated Award Funding and Dates

Anticipated Award Date: October 31, 2024

Anticipated Project Completion Date: October 31, 2026 – October 31, 2027, dependent on Funding Group or Task.

Number of Awards

Approximately 25 to 40 awards, depending on the amount of funding requested by each applicant and the amount of funding available, will be awarded under this NOFO. More awards may be made if additional funding becomes available.

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 by Reclamation may include:

Section B. Award Information

• 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 these costs, contact the Program Coordinator identified in Section G. Agency Contacts.

Section C. Eligibility Information

Eligible Applicants

Applicant eligibility varies by project category, otherwise referred to as Task Area (Task);

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; and

• Other organizations with water or power delivery authority.

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, and Puerto Rico.

Category B applicants:

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

To be eligible, 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).

Note: Partners do not necessarily need to contribute cost-share funding.

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

C.1.2. Eligible Applicants for Domestic Water Supply Projects: Task D

A State, Tribe, irrigation district, water district, or other organization with water or power delivery 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

• Institutions of higher education

• Individuals

• 501(c)6 organizations

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 Public Law 95-134, Title V, § 501 (1977) (codified at 48 U.S.C. 1469a), as amended by Public Law 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 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. Please see Section D.2.3.12 Official Resolution and Section D.2.2.13 Letters of Funding Commitment 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: Domestic Water Supply Projects for Tribes or disadvantaged communities. A five percent non-Federal cost-share or match is required.

For Task D projects only, applicants may request a cost-share waiver. Upon applicant request and with concurrence from the Secretary of Interior, Reclamation may reduce or waive the five percent non-Federal cost share requirement for Task D projects if an overwhelming Federal interest and a significant financial need are identified. If the funding plan identifies less than five percent non-Federal cost share match, include the request for a cost-share reduction or waiver in the proposal. The request must include information and documentation addressing the factors set forth immediately below.

Reclamation will use the following factors when considering whether to reduce or waive the non-Federal cost share requirement. Please address each of the following criteria and provide an explanation for the applicability of each criterion with supporting documentation:

o 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.

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

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).

Family poverty level for the state as estimated by guidelines published annually by the U.S. Department of Health and Human Services (aspe.hhs.gov/poverty-guidelines)

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.

https://www.census.gov/programs-surveys/acs/data/data-tables.html 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

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 benefitting 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 financial assistance agreement, a Federal procurement contract, or any other award of Federal funds. Applicants should refer to 2 CFR §200.434 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 this funding opportunity, (for example, an applicant may submit a proposal for funding under Funding Group I, a separate proposal under Funding Group II, and a separate proposal under Funding Group III) provided that the project scopes are not duplicative. In general, for Tasks A-C, no more than $5,000,000 will be awarded to any one applicant under this NOFO, and no more than $10 million will be awarded to any one applicant under Task D. Category B applicants may be considered for multiple awards of up to $15,000,000 if the Category A partners are different for each project selected. 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 conditions apply to this Federal program. If entities or key project personnel are identified in the database as ineligible, prohibited/restricted, or otherwise excluded from receiving Federal contracts, certain subcontracts, or 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, reducing the need for emergency https://www.ecfr.gov/cgi-bin/ECFR?page=browse https://sam.gov/content/exclusions response actions. Drought resiliency can be defined as the capacity of a community to cope with and respond to drought.

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.

The proposed project should also help avoid the need for emergency response actions, such as water hauling programs and temporary infrastructure and have ongoing benefits to build long-term resilience.

Applicants may apply for funding in the following four task areas (Task A, B, C, or D) described below. Please see sections C.1.1. and C.1.2. to ensure you are an eligible applicant for the task area in which you are applying. Tasks A-C eligible applicants are outlined in Section C.1., and Task D eligible applicants are outlined in C.1.2.

In general, you may seek funding under one application for multiple project components that include one or a combination of tasks if the project components are interrelated or closely related (e.g., a project to construct a new storage and conveyance system [Task A] coupled with a decision support tool for operation of the system [Task C]). However, if the projects are only loosely related, separate applications need to be submitted. Applications including multiple projects that are independently operated may not be considered for funding.

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.4.2.3. Water Reclamation, Reuse and Desalination and C.4.2.4. 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 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 groundwater, municipal wastewater, stormwater runoff, for environmental, agricultural, or potable 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.4.2.4.) to be eligible under this NOFO.

C.4.2. Task B—Increasing the Reliability of Water Supplies Through Groundwater Recovery 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. 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 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 Domestic Water Supply Projects: Task D below (Section C.4.1.3).

Projects under Task B may include, but are limited to following:

o Constructing wells to provide back-up water supplies during times of drought.

o Constructing extraction wells at groundwater banks or other recharge areas to improve extraction and return capabilities during dry years.

Note for applicants applying for groundwater recovery well projects: Applications under Task B for groundwater recovery projects (including rehabilitation and the treatment of well water) will be limited to one well per application, and applicants will be limited to two well applications under this NOFO, even if the total requested federal cost-share is less than the funding limitations set forth in Section B.2.

C.4.3. Task C—Projects to Improve Water Management through Decision Support Tools, Modeling, and Measurement Task C Projects are intended to help provide 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 also include developing tools that facilitate water marketing between willing buyers and sellers to redistribute water supplies to meet other existing needs or uses (e.g., agricultural, municipal, or dedication to in-stream flows).

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).

http://www.waterdatafortexas.org/reservoirs/statewide

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.

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.

C.4.5. Ineligible Projects Projects not eligible for funding under this NOFO include 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.4.5.1. Operations, Maintenance, and Replacement

In accordance with Section 9504 of the 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., 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

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

C.4.5.2. 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.

C.4.5.3. 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.

C.4.5.4. 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.4.5.5. 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. Reclamation is currently developing a comprehensive implementation plan for domestic water supply projects authorized under P.L. 117-169. Reclamation will post more information as it becomes available at www.usbr.gov/inflation-reduction-act. In addition, water supply projects of which the primary benefit is not to serve a Tribe or disadvantaged community is not eligible under this NOFO.

C.4.5.6. Water or Land Purchases

Proposals to use Federal funding to purchase water or land are not eligible under…