Large Scale Water Recycling Project and Drought Resiliency Investment Act
This bill requires the Department of the Interior to award grants to water or power delivery authorities for the planning, design, and construction of large-scale water recycling and reuse projects in drought-stricken regions of certain Western states.
The bill includes emergency drought planning as a watershed management project under the Cooperative Watershed Management Program.
Financial assistance may be made available under the Reclamation States Emergency Drought Relief Act of 1991 for eligible water projects to assist Western states and tribal governments to address drought-related impacts to water supplies or any other immediate water-related crisis or conflict.

To direct the Secretary of the Interior to establish a grant program to 
 provide grants on a competitive basis to eligible entities for large-
 scale water recycling and reuse projects, to amend the Omnibus Public 
   Land Management Act of 2009 to make certain modifications to the 
Cooperative Watershed Management Program, to provide emergency drought 
                    funding, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Large Scale Water Recycling Project 
and Drought Resiliency Investment Act''.

SEC. 2. LARGE-SCALE WATER RECYCLING PROJECT INVESTMENT.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) a State, Indian Tribe, municipality, irrigation 
                district, water district, wastewater district, or other 
                organization with water or power delivery authority;
                    (B) a State, regional, or local authority, the 
                members of which include 1 or more organizations with 
                water or power delivery authority; and
                    (C) an agency established under State law for the 
                joint exercise of powers or a combination of entities 
                described in subparagraphs (A) and (B).
            (2) Eligible project.--The term ``eligible project'' means 
        a project described in subsection (c).
            (3) Indian tribe.--The term ``Indian Tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 5304).
            (4) Program.--The term ``program'' means the grant program 
        established under subsection (b).
            (5) Reclamation state.--The term ``Reclamation State'' 
        means a State or territory described in the first section of 
        the Act of June 17, 1902 (43 U.S.C. 391; 32 Stat. 388, chapter 
        1093).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
    (b) Establishment.--The Secretary shall establish a program to 
provide grants to eligible entities on a competitive basis for the 
planning, design, and construction of large-scale water recycling and 
reclamation projects that provide substantial water supply and other 
benefits to drought-stricken regions in the Reclamation States.
    (c) Eligible Project.--A project shall be eligible for a grant 
under the program if the project--
            (1) reclaims and reuses--
                    (A) municipal, industrial, domestic, or 
                agricultural wastewater; or
                    (B) impaired groundwater or surface water;
            (2) has a total estimated cost of $500,000,000 or more;
            (3) is located in a Reclamation State;
            (4) is constructed, operated, and maintained by an eligible 
        entity; and
            (5) provides a Federal benefit in accordance with the 
        reclamation laws.
    (d) Project Evaluation.--The Secretary may provide a grant to an 
eligible entity for an eligible project under the program if--
            (1) the eligible entity determines through the preparation 
        of a feasibility study or equivalent study, and the Secretary 
        concurs, that the eligible project--
                    (A) is technically and financially feasible;
                    (B) provides a Federal benefit in accordance with 
                the reclamation laws; and
                    (C) is consistent with applicable Federal and State 
                laws;
            (2) the eligible entity has sufficient non-Federal funding 
        available to complete the eligible project, as determined by 
        the Secretary;
            (3) the eligible entity is financially solvent, as 
        determined by the Secretary; and
            (4) not later than 30 days after the date on which the 
        Secretary concurs with the determinations under paragraph (1) 
        with respect to the eligible project, the Secretary submits to 
        Congress written notice of the determinations.
    (e) Priority.--In funding eligible projects under the program, the 
Secretary shall give funding priority for eligible projects that meet 1 
or more of the following criteria:
            (1) The eligible project provides multiple benefits, 
        including--
                    (A) water supply reliability benefits for drought-
                stricken States and communities;
                    (B) fish and wildlife benefits; and
                    (C) water quality improvements.
            (2) The eligible project is likely to reduce impacts on 
        environmental resources from water projects owned or operated 
        by Federal and State agencies, including through measurable 
        reductions in water diversions from imperiled ecosystems.
            (3) The eligible project would advance water management 
        plans across a multi-State area, such as drought contingency 
        plans in the Colorado River Basin.
            (4) The eligible project is regional in nature.
            (5) The eligible project is collaboratively developed or 
        supported by multiple stakeholders.
    (f) Federal Assistance.--
            (1) Federal cost share.--Except as provided in paragraph 
        (2), the Federal share of the cost of any eligible project 
        provided a grant under the program shall not exceed 25 percent 
        of the total cost of the eligible project.
            (2) Increased federal cost share for eligible projects with 
        additional measurable benefits.--The Secretary may increase the 
        Federal share of the cost of an eligible project under 
        paragraph (1) to not more that 75 percent of the total costs of 
        the eligible project, if the eligible project advances at least 
        a proportionate share of nonreimbursable benefits authorized 
        under the reclamation laws, including fish and wildlife 
        benefits provided through measurable reductions in water 
        diversions from imperiled ecosystems.
            (3) Total cap.--The Secretary shall not impose a total 
        dollar cap on Federal contributions that applies to all 
        individual eligible projects provided a grant under the 
        program.
            (4) Nonreimbursable funds.--Funds provided by the Secretary 
        to an eligible entity under the program shall be considered 
        nonreimbursable.
            (5) Funding eligibility.--An eligible project shall not be 
        considered ineligible for assistance under this section because 
        the eligible project has received assistance authorized under--
                    (A) the Reclamation Wastewater and Groundwater 
                Study and Facilities Act (43 U.S.C. 390h et seq.);
                    (B) section 4(a) of the Water Desalination Act of 
                1996 (42 U.S.C. 10301 note; Public Law 104-298) for 
                eligible desalination projects; or
                    (C) section 1602(e) of the Reclamation Wastewater 
                and Groundwater Study and Facilities Act (43 U.S.C. 
                390h(e)).
    (g) Environmental Laws.--In providing a grant for an eligible 
project under the program, the Secretary shall comply with all 
applicable environmental laws, including the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.).
    (h) Guidance.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall issue guidance on the implementation of 
this section, including guidelines for the preparation of feasibility 
studies or equivalent studies by eligible entities.
    (i) Congressional Approval.--
            (1) In general.--Not later than 60 days before the date on 
        which a grant is provided for an eligible project under this 
        section, the Secretary shall notify the Committee on Energy and 
        Natural Resources of the Senate and the Committee on Natural 
        Resources of the House of Representatives, in writing, of the 
        proposed grant.
            (2) Requirements.--A notification under paragraph (1) shall 
        include--
                    (A) an evaluation and justification for the 
                eligible project; and
                    (B) a description of the amount of the proposed 
                grant award.
            (3) Congressional disapproval.--The Secretary shall not 
        make a grant or any other obligation or commitment to fund an 
        eligible project under this section that exceeds $100,000,000, 
        if, by not later than the end of the 60-day period described in 
        paragraph (1), a joint resolution is enacted disapproving the 
        funding for the eligible project.
    (j) Reports.--
            (1) Annual report.--At the end of each fiscal year, the 
        Secretary shall make available on the website of the Department 
        of the Interior an annual report that lists each eligible 
        project for which a grant has been provided under this section 
        during the fiscal year.
            (2) Comptroller general.--
                    (A) Assessment.--The Comptroller General of the 
                United States shall conduct an assessment of the 
                administrative establishment, solicitation, selection, 
                and justification process with respect to the funding 
                of grants under this section.
                    (B) Report.--Not later than 1 year after the date 
                of the initial award of grants under the program, the 
                Comptroller General of the United States shall submit 
                to the Committee on Energy and Natural Resources of the 
                Senate and the Committee on Natural Resources of the 
                House of Representatives a report that describes--
                            (i) the adequacy and effectiveness of the 
                        process by which each eligible project was 
                        selected, if applicable; and
                            (ii) the justification and criteria used 
                        for the selection of each eligible project, if 
                        applicable.
    (k) Treatment of Conveyance.--The Secretary shall consider the 
planning, design, and construction of a conveyance system for an 
eligible project to be eligible for grant funding under the program.
    (l) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $750,000,000 for the period of 
fiscal years 2023 through 2027.

SEC. 3. DROUGHT RESILIENCY.

    (a) Cooperative Watershed Management Program.--
            (1) Definitions.--Section 6001(7) of the Omnibus Public 
        Land Management Act of 2009 (16 U.S.C. 1015(7)) is amended--
                    (A) in subparagraph (D), by striking ``or'' at the 
                end;
                    (B) by redesignating subparagraph (E) as 
                subparagraph (F); and
                    (C) by inserting after subparagraph (D) the 
                following:
                    ``(E) provides for the conduct of emergency drought 
                planning; or''.
            (2) Funding procedure.--Section 6002(c)(2)(A) of the 
        Omnibus Public Land Management Act of 2009 (16 U.S.C. 
        1015a(c)(2)(A)) is amended by inserting ``or emergency drought 
        plan'' after ``restoration plan'' each place it appears.
    (b) Emergency Drought Funding.--
            (1) Financial assistance.--
                    (A) In general.--Financial assistance may be made 
                available under the Reclamation States Emergency 
                Drought Relief Act of 1991 (43 U.S.C. 2201 et seq.) for 
                eligible water projects to assist Western States and 
                Tribal governments to address drought-related impacts 
                to water supplies or any other immediate water-related 
                crisis or conflict, including through voluntary, 
                temporary, and compensated programs to reduce water 
                demands for the purpose of increasing water available 
                in a system or reducing water supply-demand imbalances.
                    (B) Additional availability.--Financial assistance 
                may be made available under this paragraph to 
                organizations and entities that are--
                            (i) engaged in collaborative processes to 
                        restore the environment; or
                            (ii) part of a basin-wide solution for 
                        restoration.
                    (C) Types of assistance.--Assistance under 
                subparagraph (A) may include a range of projects, 
                including--
                            (i) the installation of pumps, temporary 
                        barriers, or operable gates for water diversion 
                        and fish protection;
                            (ii) the installation of drought-relief 
                        groundwater wells for Indian Tribes and in 
                        wildlife refuges and other environmentally 
                        sensitive areas requiring emergency surface 
                        water flow augmentation;
                            (iii) the acquisition or assistance in the 
                        acquisition of water from willing sellers, 
                        including on a voluntary, temporary, and 
                        compensated basis, to enhance stream flow for 
                        the benefit of fish and wildlife (including 
                        endangered species), water quality, river 
                        ecosystem restoration, and other beneficial 
                        purposes;
                            (iv) agricultural and urban conservation 
                        and efficiency projects;
                            (v) exchanges with any water district 
                        willing to provide water to meet the emergency 
                        water needs of other water districts in return 
                        for the delivery of equivalent quantities of 
                        water later that year or in future years;
                            (vi) emergency pumping projects for 
                        critical health and safety purposes;
                            (vii) activities to reduce water demand 
                        consistent with a comprehensive program for 
                        environmental restoration and settlement of 
                        water rights claims; and
                            (viii) activities that protect, restore, or 
                        enhance fish and wildlife habitat or otherwise 
                        improve environmental conditions, including 
                        water quantity or quality concerns and improved 
                        fish passage.
                    (D) Authorization of appropriations.--There is 
                authorized to be appropriated to provide financial 
                assistance under this paragraph not more than 
                $50,000,000 for the period of fiscal years 2022 through 
                2026, of which not more than $20,000,000 shall be made 
                available during that period for the conduct of actions 
                authorized under title I of the Reclamation States 
                Emergency Drought Relief Act of 1991 (43 U.S.C. 2211 et 
                seq.) to benefit imperiled fish and wildlife.
            (2) Applicable period of drought program.--Section 104 of 
        the Reclamation States Emergency Drought Relief Act of 1991 (43 
        U.S.C. 2214) is amended by striking subsection (a) and 
        inserting the following:
    ``(a) In General.--The programs and authorities established under 
this title shall become operative in any Reclamation State and in the 
State of Hawaii only--
            ``(1) after the Governor or Governors of the affected State 
        or States, or the governing body of an affected Indian Tribe 
        with respect to a reservation, has made a request for temporary 
        drought assistance and the Secretary has determined that the 
        temporary assistance is merited;
            ``(2) after a drought emergency has been declared by the 
        Governor or Governors of the affected State or States; or
            ``(3) on approval of a drought contingency plan as provided 
        in title II.''.
            (3) Reauthorization.--Section 104(c) of the Reclamation 
        States Emergency Drought Relief Act of 1991 (43 U.S.C. 2214(c)) 
        is amended by striking ``2021'' and inserting ``2031''.
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Large Scale Water Recycling Project and Drought Resiliency Investment Act
A bill to direct the Secretary of the Interior to establish a grant program to provide grants on a competitive basis to eligible entities for large-scale water recycling and reuse projects, to amend the Omnibus Public Land Management Act of 2009 to make certain modifications to the Cooperative Watershed Management Program, to provide emergency drought funding, and for other purposes.
Large Scale Water Recycling Project and Drought Resiliency Investment Act
Sen. Cortez Masto, Catherine