Large-Scale Water Recycling Project 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.
Additionally, the Government Accountability Office must report on the selection process for each project.

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, 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 
Investment Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (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; or
                    (C) an agency established under State law for the 
                joint exercise of powers or a combination of entities 
                described in subparagraphs (A) through (B).
            (2) 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).
            (3) Reclamation state.--The term ``Reclamation State'' 
        means a State or territory described in the first section of 
        the Act of June 17, 1902 (32 Stat. 388, chapter 1093; 43 U.S.C. 
        391).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 3. COMPETITIVE GRANT PROGRAM FOR LARGE-SCALE WATER RECYCLING AND 
              REUSE PROJECTS.

    (a) In General.--The Secretary of the Interior shall establish a 
grant program to provide grants on a competitive basis to eligible 
entities 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 within the 
Reclamation States.
    (b) Eligible Project.--A project shall be considered eligible for 
consideration under this Act if--
            (1) the project reclaims and reuses--
                    (A) municipal, industrial, domestic, or 
                agricultural wastewater; or
                    (B) impaired ground or surface waters;
            (2) the project has a total estimated cost of $500,000,000 
        or greater;
            (3) the project is located within a Reclamation State;
            (4) the project is constructed, operated, and maintained by 
        an eligible entity; and
            (5) the project provides a Federal benefit in accordance 
        with the reclamation laws.
    (c) Project Evaluation.--The Secretary may participate in an 
eligible project under this Act if--
            (1) an eligible entity determines through the preparation 
        of a feasibility 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;
            (3) the eligible entity is financially solvent; and
            (4) the Secretary submits to Congress a written 
        notification of the determinations under paragraph (1) by not 
        later than 30 days after the date of the determinations.
    (d) Priority.--When funding projects under this Act, the Secretary 
shall give funding priority to projects that meet one or more of the 
following criteria:
            (1) Provide multiple benefits, including water supply 
        reliability benefits for drought-stricken States and 
        communities, fish and wildlife benefits, and water quality 
        improvements.
            (2) Are 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) Help advance water management plans across a multi-
        state area, such as drought contingency plans in the Colorado 
        River Basin.
            (4) Regional in nature.
            (5) Collaboratively developed or supported by multiple 
        stakeholders.
    (e) Federal Assistance.--
            (1) Federal cost share.--Except as provided in paragraph 
        (2), the Federal share of the cost of any eligible project 
        shall not exceed 25 percent of the total cost of the eligible 
        project.
            (2) Increased federal cost share for projects with 
        additional measurable benefits.--The Federal share of the cost 
        of an eligible project may be increased to a maximum of 75 
        percent of the total project costs, if the project advances at 
        least a proportionate share of non-reimbursable benefits 
        authorized under the reclamation laws, including fish and 
        wildlife benefits provided through measurable reductions in 
        water diversions from imperiled ecosystems.
            (3) Total dollar cap.--The Secretary shall not impose a 
        total dollar cap on Federal contributions that applies to all 
        individual projects under the grant program established by this 
        Act.
            (4) Nonreimbursable funds.--Funds provided by the Secretary 
        to an eligible entity under this Act shall be considered 
        nonreimbursable.
            (5) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this Act $750,000,000 for the 
        period of fiscal years 2023 through 2027.
            (6) Funding eligibility.--An eligible project shall not be 
        considered ineligible for assistance under this Act because the 
        project has received assistance authorized under title XVI of 
        Public Law 102-575 or section 4009 of Public Law 114-322.
    (f) Environmental Laws.--In providing a grant for an eligible 
project under this Act, the Secretary shall comply with all applicable 
environmental laws, including the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.).
    (g) Guidance.--Not later than 12 months after the date of the 
enactment of this Act, the Secretary shall issue guidance on the 
implementation of this Act, including guidelines for the preparation of 
feasibility or equivalent studies by eligible entities.
    (h) Congressional Approval.--
            (1) In general.--Not less than 60 days before making a 
        grant for a project under this Act, the Secretary shall notify 
        the Committee on Natural Resources of the House of 
        Representatives and the Committee on Energy and Natural 
        Resources of the Senate, in writing, of the proposed grant. The 
        notification shall include an evaluation and justification for 
        the project and the amount of the proposed grant award.
            (2) Congressional disapproval.--The Secretary shall not 
        make a grant or any other obligation or commitment to fund a 
        project under this Act that exceeds $100,000,000 if a joint 
        resolution is enacted disapproving such funding for the project 
        before the last day of the 60-day period described in paragraph 
        (1).
    (i) 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 project for 
        which a grant has been provided under this Act during that 
        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 Act.
                    (B) Report.--Not later than 1 year after the 
                initial awarding of grants under this Act, the 
                Comptroller General shall submit to the Committee on 
                Natural Resources of the House of Representatives and 
                the Committee on Energy and Natural Resources of the 
                Senate a report that describes--
                            (i) the adequacy and effectiveness of the 
                        process by which each project was selected, if 
                        applicable; and
                            (ii) the justification and criteria used 
                        for the selection of each project, if 
                        applicable.
    (j) Treatment of Conveyance.--The Secretary shall consider the 
planning, design, and construction of an eligible project's conveyance 
system to be eligible for grant funding under this Act.
                                 <all>
Large-Scale Water Recycling Project Investment Act
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, and for other purposes.
Large-Scale Water Recycling Project Investment Act
Rep. Napolitano, Grace F.