WaterSMART_Planning_Project Design_NOFO_508.pdf

U.S. Department of the Interior August 2023

Notice of Funding Opportunity No. R23AS00109

WaterSMART Planning and Project Design Grants for Fiscal Year 2023 and 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; and honors its trust responsibilities or special commitments to Tribal Nations, 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 – Rio Grande, New Mexico (Reclamation/Alex Stephens).

Synopsis Federal Agency Name: Department of the Interior, Bureau of Reclamation, Water

Resources and Planning Office Funding Opportunity Title: WaterSMART Planning and Project Design for Fiscal Year (FY) 2023 and FY 2024 Announcement Type: Notice of Funding Opportunity (NOFO) Funding Opportunity Number: R23AS00109 Catalog of Federal Domestic Assistance (CFDA) Number:

15.507 and 15.514

Dates:

(See NOFO Sec. D.4)

This NOFO covers two application submittal periods.

Proposals received prior before Tuesday, October 17, 2023, at 4:00 p.m. Mountain Daylight Savings Time will be considered for FY 2023 funding.

Proposals received after October 17, 2023 and before April 2, 2024, at 4:00 p.m. Mountain Daylight Savings Time will be considered for FY 2024 funding, contingent on appropriations.

Eligible Applicants:

(See NOFO Sec. C.1)

Applicants eligible to receive financial assistance to fund activities under this NOFO include:

Water Strategy Grants and Project Design Grants 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.

All 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. All Category B applicants must be located in the United States or the specific territories identified above.

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

(1) is acting in partnership with the applicant; (2) agrees to the submittal and content of the application; and (3) intends to participate in the project in some way, for example, by providing input, feedback, or other support for the project.

Drought Contingency Planning 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, 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, or the Virgin Islands.

Recipient Cost-Share:

(See NOFO Sec. C.2)

0 percent, 25 percent or 50 percent, depending on the project type

Federal Funding Amount:

(See NOFO Sec. B.1)

Up to $400,000 per application for projects that can be completed within 3 years

Estimated Number of Agreements to be Awarded:

(See NOFO Sec. B.1)

Approximately $35,000,000 is available under this program.

Approximately 60-70 projects, contingent on appropriations.

Intergovernmental Review:

(See NOFO Sec. D.5)

An intergovernmental review may be required for application submissions from a U.S. state or local government prior to submission. Applicants must 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 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) 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 27

Technical Proposal (Use Project Narrative Attachment Form to upload in Grants.gov) 20

Budget Narrative (Use Budget Narrative Attachment Form to upload in Grants.gov) 23

Recommended Application Components: Page

Environmental and cultural resources compliance 23

Required Permits and Approvals 23

Overlap or duplication of effort statement 24

Conflict of interest disclosure statement 24

Uniform audit reporting statement 25

SF-LLL: Disclosure of Lobbying Activities (required, if applicable) 25

Letters of Support 25

Acronyms and Abbreviations ASAP Automated Standard Application for Payments ARC Application Review Committee

CE Categorical Exclusion CEC Categorical Exclusion Checklist CFDA Catalog of Federal Domestic Assistance CFR Code of Federal Regulations CWA Clean Water Act CWMP Cooperative Watershed Management Program

Department U.S. Department of the Interior (also DOI) DUNS Data Universal Numbering System

EA Environmental Assessment EIN Employer Identification Number EIS Environmental Impact Statement E.O. 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 system

IBC Interior Business Center IRA Inflation Reduction Act

MDT Mountain Daylight Time

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

OMB Office of Management and Budget

P.L. Public Law PSC Product Service Code

Reclamation Bureau of Reclamation

SAM System for Award Management SECURE Science and Engineering to Comprehensively Understand and

Responsibly Enhance SF Standard Form SPOC Single Point of Contact

UEI Unique Entity Identifier U.S.C. United States Code USACE United States Army Corp of Engineers USDA United States Department of Agriculture USFWS United States Fish and Wildlife Service

West Western United States i

Contents Page

Section A: Funding Opportunity Description

A.1 Authority A.2 Background and Program Requirements A.3 Notice of Funding Opportunity Purpose and Objectives A.4 Other Related Funding Opportunities

Section B: Award Information

B.1 Total Funding B.2 Expected Award Amount B.3 Anticipated Award Funding and Dates B.4 Number of Awards B.5 Type of Award B.6 Technical Assistance

Section C: Eligibility Information

C.1 Eligible Applicants C.2 Cost Sharing Requirements C.3 Other C.4 Eligible Projects C.5 Ineligible Projects

Section D: Application and Submission Information

D.1 Address to Request Application Package D.2 Content and Form of Application Submission D.3 Unique Entity Identifier (UEI) and System for Award Management (SAM) ... 27 D.4 Submission Date and Time D.5 Intergovernmental Review D.6 Funding Restrictions

Section E: Application Review Information

E.1 Evaluation Criteria E.2 Review and Selection Process E.3 Anticipated Announcement and Federal Award Dates

Section F: Federal Award Administration Information

F.1 Federal Award Notices F.2 Administrative and National Policy Requirements F.3 Reporting Requirements and Distribution F.4 Disclosures F.5 Data Availability (2 CFR §1402.315) F.6 Freedom of Information Act ii

Section G: Federal Awarding Agency Contact(s)

G.1 Reclamation Financial Assistance Contact G.2 Reclamation Program Coordinator Contact

Section H: Other Information

H.1 Environmental and Cultural Resource Considerations H.2 Endangered Species Act

Attachment 1 - Water Strategy Grants

Attachment 2 - Project Design Grants

Attachment 3 - Drought Contingency Planning Projects

Section A: Funding Opportunity Description

A.1 Authority This Notice of Funding Opportunity (NOFO) is issued under the authority of Section 9504(a) of the Science and Engineering to Comprehensively Understand and Responsibly Enhance (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, Title I of the Reclamation States Emergency Drought Relief Act of 1991 (Public Law [P.L.] 102-250, 43 United States Code [U.S.C.] Section 2201, et seq.), as amended, Consolidated Appropriations Act, 2021; P.L. 116-260, Section 40907 (“Multi-Benefit Projects to Improve Watershed Health”) of the Bipartisan Infrastructure Law (BIL) (also known as the Infrastructure Investment and Jobs Act), P.L. 117-58, and P.L. 117-169, Section 50231 (“Bureau of Reclamation Domestic Water Supply Projects”).

A.2 Background and Program Requirements The U.S. Department of the Interior’s (Department) WaterSMART (Sustain and Manage America’s Resources for Tomorrow) Program provides a framework for Federal leadership and assistance to stretch and secure water supplies for future generations in support of the Department’s priorities. Through WaterSMART, the Bureau of Reclamation (Reclamation) leverages Federal and non-Federal funding to work cooperatively with States, Tribes, and local entities as they plan for and implement actions to increase water supply sustainability through investments in existing infrastructure and attention to local water conflicts. WaterSMART provides support for priorities identified in Presidential Executive Order 14008: Tackling the Climate Crisis at Home and Abroad (E.O. 14008) and aligned with other priorities, such as those identified in Presidential Executive Order 13985: Advancing Racial Equity and Support for Underserved Communities Through the Federal Government (E.O. 13985). The WaterSMART Planning and Project Design Grants (Planning and Project Design Grants) also support the goals of the Interagency Drought Relief Working Group established in March 2021 and the National Drought Resiliency Partnership. These grants will advance the Biden-Harris Administration’s Justice40 Initiative. Established by E.O. 14008, the Justice40 Initiative has it made it a goal that 40 percent of the overall benefits of certain federal investments flow to disadvantaged communities. Federal agencies are using the Climate and Economic Justice Screening Tool to help identify disadvantaged communities.1

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 Justice40 Initiative, M-21-28, on using the Climate and Economic Justice Screening 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/

Notice of Funding Opportunity No. 23AS00109

Drought conditions across the West impact a wide range of communities and sectors, including agriculture, cities, Tribes, the environment, recreation, hydropower producers, and others. The Western United States (West) is experiencing its worst drought this century—historic in both duration and severity—threatening to kill crops, spark wildfires, and harm public health. As of January 2023, the U.S. Drought Monitor indicates that more than 63% of the land in the 17 Western states is in moderate to exceptional drought conditions, and nearly 34% of the area is experiencing severe to exceptional drought. Through WaterSMART, Reclamation provides financial assistance to water managers for projects that seek to conserve and use water more efficiently and accomplish other benefits that contribute to sustainability in the West.

Through Planning and Project Design Grants, Reclamation provides funding for collaborative planning and design projects to support water management improvements. This includes funding for: (1) Water Strategy Grants to conduct planning activities to improve water supplies (e.g., water supplies to disadvantaged communities that do not have reliable access to water, water marketing, water conservation, drought resilience, and ecological resilience); (2) Project Design Grants to conduct project-specific design for projects to improve water management; and

(3) comprehensive Drought Contingency Plans. Note that funding to develop a water marketing strategy – formerly funded through Water Marketing Strategy Grants, a stand-alone funding opportunity under WaterSMART - is now available through (1) Water Strategy Grants.

With the passage of the Inflation Reduction Act, 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, insular areas (American Samoa, Guam, the Northern Mariana Islands, and the Virgin Islands), 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, technical assistance from Reclamation staff may be available for your project (see Section B.6 – Technical Assistance).

A.3 Notice of Funding Opportunity Purpose and Objectives The objective of this Notice of Funding Opportunity (NOFO) is to invite eligible applicants (Section C.1. Eligible Applicants) to leverage their money and resources by cost sharing with Reclamation on the projects described below.

Tool (CEJST), M-23-09, (Jan. 27, 2023), 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 https://www.whitehouse.gov/wp-content/uploads/2023/01/M-23-09_Signed_CEQ_CPO.pdf

Section A. Funding Opportunity Description

Funding Opportunity Summary Table

This table provides a brief summary of the projects funded under this NOFO. For more detailed information regarding applicant eligibility see Section C.1.1 – Eligible Applicants and Section C.2 Cost Sharing Requirements for a more detailed description of cost-share requirements, including exemptions and waivers where applicable.

Water Strategy Grants (see Section C.4.1 - Water Strategy Grants)

Eligible Projects: Projects to conduct planning to support water supply and management solutions (e.g., domestic water supply projects for disadvantaged communities, water marketing, water conservation, drought resilience, and ecological resilience) (see Section C.4.1 - Water Strategy Grants)

Non-Federal Cost Share: 0, 25 or 50%

Project Design Grants (see Section C.4.2 – Project Design Grants)

Eligible Projects: Projects to conduct project-specific design for projects to improve water management or water supplies.

Non-Federal Cost Share: 0, 25 or 50%

Drought Contingency Planning (see Section C.4.3 – Drought Contingency Planning)

Eligible Projects: Proposals to develop a new or update an existing Drought Contingency Plan

Non-Federal Cost Share: 50%

A.4 Other Related Funding Opportunities WaterSMART Drought Resiliency Project Grants. Reclamation provides funding on a 50/50 cost share basis for projects that will increase the reliability of water supplies or improve water management to build long term resilience to drought and are supported by an existing drought contingency plan. Typical projects include:

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

• Projects that enable the capture or storage of additional water supplies that can be made available during drought.

• Projects that develop alternative water supplies to build resiliency to the impacts of drought.

• 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

• Aquifer storage and/or recovery projects that 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.

For information on the Drought Resiliency Projects, visit the WaterSMART Program website at https://www.usbr.gov/drought/projects.html.

WaterSMART Grants: Water and Energy Efficiency Grants. Financial assistance is provided on a 50/50 cost share basis for the construction of 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 West. Typical projects include:

• Projects that line or pipe canals, resulting in conserved water

• Projects that install meters, resulting in measurable water savings.

• Projects that improve measurement accuracy and result in reduced spills and over-deliveries to irrigators including Supervisory Control and Data Acquisition and Automation (SCADA).

For information on the Water and Energy Efficiency Grants, visit the WaterSMART Program website at www.usbr.gov/watersmart/weeg/index.html.

WaterSMART Small-Scale Water Efficiency Projects. Financial assistance is provided on a 50/50 cost share basis for small-scale water management projects (up to $100,000 in Federal funding for each project) that have been identified through previous planning efforts. Typical project types are the same as those funded through the WaterSMART Grants, listed immediately above. Reclamation has developed a streamlined selection and review process to reflect the small-scale nature of these projects.

For information on the Small-Scale Water Efficiency Projects, visit the WaterSMART Program website at www.usbr.gov/watersmart/swep/index.html.

WaterSMART Environmental Water Resources Projects. Financial assistance is provided on a cost share basis (either 50% or 75% Federal cost share) for water conservation, water management, and restoration projects that provide significant benefits to ecological values or watershed health. Typical projects include:

• Watershed management or restoration projects influencing water temperature or improving the timing or volume of available flows at particular locations to improve aquatic conditions.

http://www.usbr.gov/watersmart/weeg/index.html http://www.usbr.gov/watersmart/swep/index.html

Section A. Funding Opportunity Description

• Riparian restoration, including bank and instream restoration through revegetation, or low-tech, process-based restoration, to create habitat for fish and wildlife, reduce erosion, improve groundwater recharge and benefit other ecological values.

• Upgrades to water conveyance or diversion technology that reduce water loss, ensuring more water for instream flows, or upgrades that allow for improved fish passage.

• Restoring natural wetlands, constructing new, or improving existing wetlands for treatment of irrigation water or stormwater flows, or improving other natural features to reduce water supply and demand imbalances or the risk of drought or flood.

• Water management or restoration projects to restore a natural feature or a nature-based feature to reduce water supply and demand imbalances or the risk of drought or flooding.

For information on the Environmental Water Resources Projects, visit the WaterSMART Program website at www.usbr.gov/watersmart/ewrp/index.html .

WaterSMART Cooperative Watershed Management Program. Reclamation provides funding to watershed groups to encourage diverse stakeholders to form local solutions to address their watershed management needs. Reclamation provides funding through Phase I of the Cooperative Watershed Management Programs for watershed group development, restoration planning, and watershed management project design.

For information on the Cooperative Watershed Management Program, visit the WaterSMART Program website at www.usbr.gov/watersmart/cwmp/index.html.

WaterSMART Aquatic Ecosystem Restoration Projects. Reclamation provides funding on a 65/35 cost share basis for the study, design, and construction of projects that restore or protect aquatic ecosystems. Projects benefit aquatic ecosystems across multiple basins, build habitat and systems resiliency, support threatened and endangered species, and provide broad environmental benefits.

For information on the Aquatic Ecosystem Restoration Program, visit the WaterSMART Program website at www.usbr.gov/watersmart/aquatic/index.html.

Native American Affairs Technical Assistance Program. Reclamation’s Native American Affairs Technical Assistance Program 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 notices of funding opportunity, and successful proposals approved for funding can be found on Reclamation’s website at the address below.

For information on the Native American Affairs Program Technical Assistance Program, visit www.usbr.gov/native/programs/TAPprogram.html.

http://www.usbr.gov/watersmart/ewrp/index.html http://www.usbr.gov/watersmart/cwmp/index.html https://www.usbr.gov/watersmart/aquatic/index.html http://www.usbr.gov/native/programs/TAPprogram.html

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

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 communities or households that do not have reliable access to domestic water supplies.

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

Section B: Award Information

B.1 Total Funding This NOFO will allocate available program funds including fiscal year (FY) 2023 and FY 2024 enacted appropriations for WaterSMART Grants and the Drought Response Program, and funding available under the Bipartisan Infrastructure Law (BIL), P.L. 117-58 in FY 2023 or FY 2024, or future years. This NOFO will also be used to allocate BIL funding for projects that will improve the condition of a natural feature or nature-based feature, for multi-benefit projects to improve watershed health under Section 40907 of the BIL, and to allocate funding for domestic water supply projects for disadvantaged communities under the Inflation Reduction Act of 2022, P.L. 117-169, Section 50231.

The amount of funding available for awards under this NOFO will depend on the demand for funding under this and other WaterSMART programs. Any awards are subject to a determination by Reclamation that appropriations, IRA, and/or BIL funds are available. Applications submitted under this NOFO may also be considered if other funding becomes available in FY 2023, FY 2024, or subsequently.

B.2 Expected Award Amount Water Strategy and Project Design Grants:

Maximum Award: $400,000.00 Minimum Award: $100,000.00

Drought Contingency Planning:

Maximum Award: $400,000.00 Minimum Award: $25,000.00

Information regarding multiple applications and restrictions on total award amounts under this funding opportunity can be found in C.3.1 Application and Award Limitations.

B.3 Anticipated Award Funding and Dates This NOFO covers two application periods.

For applications submitted by the October 17, 2023 deadline:

Anticipated Award Date: July 1, 2024 Anticipated Project Completion Date: June 30, 2027

For applications submitted by the April 2, 2024 deadline:

Anticipated Award Date: January 2, 2025 Anticipated Project Completion Date: December 31, 2028

B.4 Number of Awards Approximately 60 to 70 awards will be awarded under this NOFO, depending on the amount requested by each applicant and the amount of Federal funding available.

B.5 Type of Award

B.5.1 Water Strategy Grants and Project Design Grants Project awards for Water Strategy Grants and Project Design Grants 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:

• Collaboration and participation with the successful applicant in the management of the project and close oversight of the successful applicant’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.

B.5.2 Drought Contingency Planning Project awards for Drought Contingency Planning will be made through cooperative agreements.

Recipients should expect Reclamation to have substantial involvement in the project. Substantial involvement by Reclamation will include:

• Collaboration and participation with the recipient in the management of the project and close oversight of the recipient’s activities to ensure that the program objectives are being achieved.

• Oversight will include review, input, and approval at key interim stages of the plan, including input regarding the composition of the Drought Planning Task Force (Task Force), review and acceptance of detailed work plans, and review of the Drought Contingency Plan for conformance to program goals and objectives.

While the application is for the entire drought contingency planning process, if selected for award, the cooperative agreement for the project will consist of two phases:

• Phase I for the establishment of a Task Force and development of a Detailed Work Plan (includes Communication and Outreach Plan) and

• Phase II for the plan development.

Section B. Award Information

Initially, the cooperative agreement will be limited to Phase I activities and will only obligate the Federal share of the estimated costs for the completion of these activities. In addition, the initial period of performance for the cooperative agreement will be limited to the time necessary to complete Phase I activities (generally six months). Reclamation will work closely with the recipient to develop a detailed work plan that will meet program requirements. After the detailed work plan is reviewed and accepted by Reclamation, the agreement will be modified to incorporate the costs of Phase II activities, obligate the remaining Federal funds, and extend the period of performance.

B.6 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

C.1 Eligible Applicants Applicants eligible to receive an award under this Funding Opportunity are described below.

Note: Applicant eligibility varies by project category; therefore, please carefully review applicant eligibility for the project category in which you are applying.

C.1.1 Water Strategy Grants and Project Design Grants

C.1.1.1 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.

All applicants must also be located in the West or Territories as identified in the Reclamation Act of June 17, 1902, as amended and supplemented; specifically: 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.

C.1.1.2 Category B Applicants

Nonprofit 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 located in the United States or the specific Territories identified in Section C.1.1.1 above.

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

1) Is acting in partnership with the applicant;

2) Agrees to the submittal and content of the application; and

3) Intends to participate in the project in some way, for example, by providing input, feedback, or other support for the project.

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

C.1.2 Drought Contingency Planning Applicants 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, 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, or the Virgin Islands.

To be eligible under this NOFO for a Drought Contingency Plan, applicants must participate in a technical consultation with Reclamation Drought Coordinator before developing a proposal.

During this technical consultation, the Reclamation Drought Coordinator will discuss Drought Response Program objectives, the six required elements of a drought plan or plan update (as outlined in Attachment 3), planning steps, and eligible tasks. The technical consultation will provide interested applicants an opportunity to ask questions about the Drought Response Program and ensure that applicants are applying under the proper NOFO project task.

Reclamation reserves the right to remove an application from consideration if a technical consultation was not completed. To schedule a technical consultation, contact the program coordinator identified in Section G. Agency Contacts.

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

C.2 Cost Sharing Requirements Applicant cost-share requirements for projects funded under this NOFO will be 0 percent, 25 percent or 50 percent of the total project costs, depending on the project type. 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.

• Water Strategy Grants and Project Design Grants with Ecological Benefits-Projects that meet the requirements described in Section C.2.1 Water Strategy Grants and Project Design Grants, applicants must be capable of cost sharing 25 percent or more of the total project costs.

• Proposals for the planning or design of projects the purpose of which is to provide domestic water supplies to disadvantaged communities may be eligible for 0% non- Federal cost share (see P.L. 117-169, Section 50231).

• For all other projects, applicants must be capable of cost sharing 50 percent or more of the total project costs.

Section C. Eligibility Information

• Drought Contingency Plans: In exceptional circumstances and upon request of the applicant, Reclamation may reduce or waive the non-Federal cost share requirement, if an overwhelming Federal interest and a significant financial need are identified. The criteria used by Reclamation to evaluate requests to reduce or waive the non-Federal cost share requirement are set forth in Attachment 3.

Note: Cost-sharing requirements are not applicable to American Samoa, Guam, the Northern Mariana Islands, or the Virgin Islands.

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.2.2.12 Official Resolution and Section D.2.2.13 Letters of 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.

C.2.1 Water Strategy Grants and Project Design Grants for Domestic Water Supply Projects

A non-Federal cost share or match is not required for Water Strategy Grants and Project Design Grants projects for the primary purpose of providing domestic water supplies to Tribes or disadvantaged communities or households that do not have reliable access to domestic water supplies AND are located in 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.2.2 Water Strategy Grants and Project Design Grants with Ecological Benefits

Water Strategy Grants and Project Design Grants projects with primarily ecological benefits that also meet the requirements listed in this section are eligible for up to 75 percent Federal cost-share contribution. To qualify for this cost-share, the application must demonstrate that the project a) increases water supply reliability for ecological values (e.g. improves the timing or quantity of water available or improve water quality or temperature); b) is being developed as part of a collaborative planning process that included consideration of ecological values (note: if this project represents the applicants’ initial planning effort, the applicant may refer to an existing local, state or regional plan with a nexus to the project to satisfy this requirement). This does not exclude projects expected to result in benefits to multiple sectors, such as projects or project components that benefit ecological values AND agricultural, municipal, tribal, or recreational water uses.

Applications who meet these requirements must be capable of cost sharing 25 percent (25%) 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. For projects that do not meet the requirements necessary to qualify for 75 percent Federal cost-share contribution, applicants must be capable of cost sharing 50 percent or more of the total project costs. Applicants will be notified prior to selection if their project is being considered for award but does not qualify for the 75 percent Federal cost-share contribution. Such applicants will be given an opportunity to commit to a 50 percent non-Federal cost-share contribution or withdraw their application. The application review committee (see Section E.2.2. Application Review Committee) will determine whether each application qualifies for 75 percent Federal cost-share contribution based on responses to the evaluation criteria (see Section E.1. Evaluation Criteria).

C.2.3 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.2.4 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 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.

C.3 Other

C.3.1 Application and Total Funding Limitations Multiple applications for funding may be submitted for consideration; however, an applicant may not submit more than one proposal for each eligible project category identified below. For example, an applicant may submit proposals for a Water Strategy Grant, Project Design Grant, and Drought Contingency Planning; however, an applicant cannot submit two proposals under the Water Strategy Grants category. In general, no more than $1,200,000 will be awarded per FY to any one applicant under this NOFO. However, a Category B applicant may receive funding up to $2,000,000 total if each project includes a different Category A partner.

http://www.ecfr.gov/

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.

C.4 Eligible Projects Although projects will be scored using the same evaluation criteria (see Section E.1. Evaluation Criteria), projects within each of the Task areas identified below will be ranked separately to ensure fairness.

C.4.1 Task A: Water Strategy Grants The objective of the Water Strategy Grants is to leverage money and resources by cost sharing with Reclamation for initial, or early-stage planning activities, including outreach and collaboration, technical analyses and assessments, project scoping activities to identify and prioritize potential implementation projects, and to develop a strategy document for water supply projects, water marketing activities, water management projects, and/or activities and river restoration activities, including planning projects to restore a natural feature or to use a nature-based feature to reduce water supply and demand imbalances or the risk of drought or flooding;

and projects that otherwise mitigate against the impacts of climate change to fish and wildlife habitats. This includes planning projects that will provide benefits to multiple sectors, including projects that will benefit ecological values or watershed health AND agricultural, municipal, Tribal, or recreation water uses. This also includes planning for the construction of domestic water supply projects for the primary purpose of providing domestic water supplies to communities or households that do not have reliable access to domestic water supplies. This can include the development of new supplies and/or associated infrastructure for treatment and delivery.

Proposals for Water Strategy Grants must address the required project components identified in Attachment 1, including the preparation of the strategy document. Projects may be scaled to meet the needs of the applicant and may build on work completed to date.

While not a pre-requisite, Water Strategy Grants provide an opportunity to conduct planning and project scoping activities to prepare for future applications for funding for on-the-ground projects through WaterSMART (see Section A.4. Other Related Funding Opportunities).

Water Strategy Grants can also be used as a preliminary step in preparation for more advanced planning activities (e.g., a Drought Contingency Plan; a WaterSMART Basin Study(see Basin Studies | WaterSMART (usbr.gov)); or an Aquatic Ecosystems Restoration Program Task A – Study and Design project). Note: for applicants interested in submitting an application in the future to complete an on-the-ground drought project under the Drought Resiliency Projects https://sam.gov/content/exclusions https://sam.gov/content/exclusions https://www.usbr.gov/watersmart/bsp/index.html https://www.usbr.gov/watersmart/bsp/index.html funding opportunity, preparation of a Drought Contingency Plan (see Section C.4.2 Drought Contingency Planning) will provide more direct support for your application and more points will be awarded in the criteria for Drought Resiliency Projects supported by a Drought Contingency Plan.

Proposals to develop a new or update an existing water strategy (e.g., a water marketing, management, or river restoration strategy) are eligible for funding under this NOFO.

Additional information regarding project types eligible for funding under the Water Strategy Grants project category and eligible activities can be found in Attachment 1.

C.4.2 Task B: Project Design Grants The objective of the Project Design Grants is to leverage money and resources by cost sharing with Reclamation the final design of medium and large-scale on-the ground water supply construction (including domestic water supply projects for Tribes, insular areas, and disadvantaged communities), water management construction and restoration projects. For the purposes of this funding opportunity, medium and large-scale water management construction and restoration projects are those with construction/restoration costs of at least $250,000 and above (total construction costs, including Federal and non-Federal funding) excluding design and permitting costs (see Section A.4. Other Related Funding Opportunities).

The Build America Buy America Act is a requirement specific to infrastructure projects, and applicants should consider Reclamation’s focus on advancing the objectives of using American-made products and materials and building domestic manufacturing when initiating the planning and design of projects.

Prior to applying for a Project Design Grant, it is expected that applicants will have already performed some general planning work and preliminary studies that led to the identification of a specific location for project design. Project Design Grants should result in a final design package at a 60% design level (approximately), so that the design package can be used subsequently to apply for construction funding. In general, if you are seeking funding for multiple projects in one application the projects must be interrelated or closely related in scope and/or geography.

Additional information regarding eligible activities for funding under the Project Design Grants project category can be found in Attachment 2.

C.4.3 Task C: Drought Contingency Planning 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). Through this NOFO, Reclamation provides funding for planning that, when implemented, will increase water reliability and improve water management through the use of expanded technologies and improved modeling capabilities.

Proposals to develop a new Drought Contingency Plan, or to update to an existing plan are eligible for funding under this NOFO. Proposed projects submitted in response to this NOFO must be divided into two phases (Phase I and Phase II). The program requirements described here are intended to increase the transparency of the planning process, encourage collaboration and participation by interested stakeholders, and ensure that the Drought Contingency Plan will meet program requirements upon completion.

Phase I: This phase must include the Establishment of a Drought Planning Task Force, Development of a Detailed Work Plan, and Development of a Communication and Outreach Plan. Additional information regarding Phase I is described in Attachment 3.

Phase II: After the detailed work plan is reviewed and accepted by Reclamation, the planning lead designated by the applicant will then develop the plan or plan update including the required Drought Contingency Plan elements and must include each of the project components described on Attachment 3.

C.5 Ineligible Projects Proposals to develop planning studies other than those described in Section C.3.1 Water Strategy Grants and in Section C.3.2. – Drought Contingency Planning, are not eligible for funding under this NOFO. This includes proposals to develop appraisal investigations, system optimization reviews, feasibility studies, special studies, Basin Studies, water management and conservation.

Projects for planning and project design that are eligible for funding under Reclamation’s Water Conservation and Field Studies Program, authorized under the Title XVI Water Recycling and Reuse Program, through P.L.102-575, as amended (43 U.S.C. 390h et seq.), or under the Rural Water Program, pursuant to the Rural Water Supply Act of 2006, P.L.109-451.

C.5.1 Operations, Maintenance, and Replacement Proposals for the design of projects considered normal operations, maintenance, and replacement (OM&R) are ineligible 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; and

• 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.5.2 Pilot Projects With the exception of pilot projects that are a component of a Water Strategy Grant, applications 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.

C.5.3 On-Farm Improvements Proposals to design on-farm improvements are not eligible under this NOFO. Applicants interested in on-farm improvements should contact the U.S. Department of Agriculture (USDA) and Natural Resources Conservation Service (NRCS) to investigate opportunities for Federal assistance. For more information on NRCS programs, including application deadlines and a description of available funding, please contact your local NRCS office or see www.nrcs.usda.gov for further contact information in your area.

C.5.4 Construction Proposals to complete on the ground construction are not eligible for funding under this NOFO.

C.5.5 Projects Receiving Other Federal Financial Assistance Proposals for projects or activities that are funded under another Federal Financial Assistance agreement are not eligible for funding under this NOFO.

http://www.nrcs.usda.gov/

Section D: Application and Submission Information

D.1 Address to Request Application Package This document contains all information, forms, and electronic addresses required to obtain the information required to submit an application. If you are unable to access this information electronically, you can request paper copies of any of the documents referenced in this NOFO by contacting the Reclamation Financial Assistance Contact identified in Section G.1 of this announcement.

D.2 Content and Form of Application Submission All applications must conform to the requirements described in this section.

D.2.1 Application Format and Length The technical proposal and criteria section (defined below) shall be limited to a maximum of 20 consecutively numbered pages.