Bureau of Reclamation Provisions in the Infrastructure Investment and Jobs Act (P.L. 117-58)

Bureau of Reclamation Provisions in the Infrastructure Investment and Jobs Act (P.L. 117-58)

Bureau of Reclamation Provisions in the
March 21, 2024
Infrastructure Investment and Jobs Act
Charles V. Stern
(P.L. 117-58)
Specialist in Natural
Resources Policy
In the Infrastructure Investment and Jobs Act (IIJA, also referred to as the Bipartisan

Infrastructure Law; P.L. 117-58), Congress provided a major influx of funding for the Bureau of
Anna E. Normand
Reclamation (Reclamation), a water resources management agency within the Department of the
Specialist in Natural
Interior. Congress provided $8.3 billion to Reclamation in the IIJA and made the funds available
Resources Policy
in equal installments for each of the five fiscal years from FY2022 to FY2026 (i.e., $1.66 billion

per year). The resources directed to Reclamation under the act were almost five times
Reclamation’s FY2021 enacted appropriation and more than eight times Reclamation’s

previously largest supplemental funding appropriation. IIJA included funding for the following
areas (listed in the order in which they appear in the legislation):
• $1.05 billion for water storage projects, including projects authorized under Section 4007 of P.L. 114-322
• $100 million for small water storage project grants
• $3.2 billion for aging infrastructure projects
• $1.0 billion for rural water projects
• $1.0 billion for water recycling and reuse projects
• $250 million for water desalination projects
• $500 million for safety of dams projects
• $400 million for WaterSMART water and energy efficiency and other grant projects
• $250 million for a new program for aquatic ecosystem restoration projects
• $100 million for the Cooperative Watershed Management Program
• $100 million for a new program for watershed health improvement projects
• $300 million for Colorado River Drought Contingency Plan projects
• $50 million for Colorado River endangered species recovery projects
In addition to the $8.3 billion Congress provided directly to Reclamation in the IIJA, the act provided $2.5 billion to the
Secretary of the Interior for a newly created Indian Water Rights Settlement Completion Fund.
Congress included limited guidance for Reclamation funding in the IIJA. The act provided several individual Reclamation
programs with more funding than the programs had received—in cumulative terms—since their initial authorizations, and
directed significant funding toward entirely new Reclamation authorities. Congress also enacted new authorities for
Reclamation that did not receive funding within the act or that clarified existing law.
Reclamation published its plans for its annual spending under the IIJA in FY2022, FY2023, FY2024, and FY2025. These
plans lay out funding allocations for the portion of Reclamation’s IIJA funding available in each of those years (i.e., $1.66
billion). Reclamation also has released additional program- and project-specific annual allocations and addendums since
enactment of the IIJA. Some Reclamation programs have solicited applications or grant proposals for IIJA-funded activities
(depending on the activity), while other areas have allocated IIJA funding through internal processes, resulting in project- or
program-specific funding allocations.
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Contents
IIJA Summary .................................................................................................................................. 1
Spending Plans and Allocation of Funds ......................................................................................... 4
IIJA Funding by Category ............................................................................................................... 7
Water Storage and Conveyance Projects ................................................................................... 7
Allocations/Implementation ................................................................................................ 8
Small Water Storage Project Grants .......................................................................................... 9
Allocations/Implementation .............................................................................................. 10
Aging Infrastructure ................................................................................................................ 10
Allocations/Implementation .............................................................................................. 12
Rural Water ............................................................................................................................. 13
Allocations/Implementation .............................................................................................. 14
Title XVI Water Recycling/Reuse ........................................................................................... 15
Allocations/Implementation .............................................................................................. 16
Desalination Projects ............................................................................................................... 16
Allocations/Implementation .............................................................................................. 17
Safety of Dams Projects .......................................................................................................... 17
Allocations/Implementation .............................................................................................. 18
WaterSMART Grants .............................................................................................................. 18
Allocations/Implementation .............................................................................................. 19
Cooperative Watershed Management Program ....................................................................... 19
Allocations/Implementation .............................................................................................. 20
Watershed Health Improvement .............................................................................................. 20
Allocations/Implementation .............................................................................................. 21
Aquatic Ecosystem Restoration .............................................................................................. 21
Allocations/Implementation .............................................................................................. 22
Colorado River Drought Contingency Plans ........................................................................... 22
Allocations/Implementation .............................................................................................. 23
Colorado River Endangered Species Activities ...................................................................... 24
Allocations/Implementation .............................................................................................. 25
Indian Water Rights Settlement Completion Fund .................................................................. 25
Allocation/Implementation ............................................................................................... 26
Authorization-Only Provisions ...................................................................................................... 26
Pumped Storage Hydropower ................................................................................................. 26
Groundwater Recharge Authority ........................................................................................... 27
Nonfederal Cost Sharing for Reclamation Projects ................................................................ 28

Figures
Figure 1. Infrastructure Investment and Jobs Act (IIJA): Bureau of Reclamation Funding
Compared with Other Appropriations Legislation ....................................................................... 3
Figure 2. Bureau of Reclamation: Major Rehabilitation and Repair (MR&R) Needs ................... 11

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Tables
Table 1. Bureau of Reclamation Infrastructure Investment and Jobs Act (IIJA): Funding
and Annual Allocations ................................................................................................................ 5
Table 2. Bureau of Reclamation Infrastructure Investment and Jobs Act (IIJA) Water
Storage Project Allocations .......................................................................................................... 8
Table 3. Bureau of Reclamation Small Water Storage Projects: Infrastructure Investment
and Jobs Act (IIJA): FY2023 Funding Allocations .................................................................... 10
Table 4. Bureau of Reclamation Infrastructure Investment and Jobs Act (IIJA)
Extraordinary Maintenance Requests and Allocations ............................................................... 13
Table 5. Bureau of Reclamation Rural Water Construction Funding in the Infrastructure
Investment and Jobs Act (IIJA) .................................................................................................. 14
Table 6. Infrastructure Investment and Jobs Act (IIJA) Colorado River Drought
Contingency Plan (DCP) Allocations ......................................................................................... 23

Contacts
Author Information ........................................................................................................................ 28

Congressional Research Service

Bureau of Reclamation Provisions in the IIJA (P.L. 117-58)

he Bureau of Reclamation (Reclamation), an agency within the Department of the Interior
(DOI), manages and develops water resources in the 17 conterminous states west of the
T Mississippi River, often referred to as the Reclamation states.1 Reclamation operates more
than 180 individual Reclamation projects for multiple purposes. The primary purpose of most
Reclamation projects is agricultural irrigation, but the agency also operates projects for
hydropower, flood control, recreation, municipal and industrial water supplies, and fish and
wildlife benefits. Water users are responsible for repaying their share of project costs. One of
Reclamation’s recent challenges has been maintaining the portfolio of existing Reclamation
projects as they age.
In recent years, Congress has directed Reclamation to participate in the construction of new and
augmented surface water storage projects. Congress also has increased funding to Reclamation
for various types of nonfederal water project development, including water reuse and recycling
projects, grants for water and energy conservation efforts, and funding for rural water projects
and water infrastructure associated with congressionally authorized Indian water rights
settlements, among other activities.
In the Infrastructure Investment and Jobs Act (IIJA, also referred to as the Bipartisan
Infrastructure Law; P.L. 117-58), Congress provided $8.3 billion to Reclamation. The resources
directed to Reclamation in the IIJA were almost five times Reclamation’s FY2021 enacted
discretionary appropriation (the year before the first IIJA appropriation) and more than eight
times Reclamation’s previously largest supplemental funding appropriation. For several
Reclamation programs, the IIJA provided more funds than the programs had received
cumulatively since their original authorizations. In other cases, Congress directed significant
funding toward entirely new Reclamation authorities. Congress also enacted several new
Reclamation authorities that did not receive funding within the act or that clarified existing law.
This report discusses Reclamation funding that Congress enacted in the IIJA. It provides
background on the programs and authorities funded, discusses congressional guidance in the
legislation, and provides information on funding allocations and spending plans issued in
accordance with the act. The report also includes potential oversight and implementation issues
for congressional consideration.
IIJA Summary
The IIJA provided significant new funding authorizations to Reclamation: $8.3 billion in Division
D, Title IX, of the act. Congress appropriated this funding in Division J, Title III, of the IIJA and
made the funds available in equal installments for each of the five fiscal years from FY2022 to
FY2026 (i.e., $1.66 billion per year). Congress provided this funding to Reclamation in the
following areas (listed in the order they appear in the legislation):
• $1.05 billion (13% of Reclamation’s funding in the act) for water storage
projects, including projects authorized under Section 4007 of the Water
Infrastructure Improvements for the Nation Act (WIIN Act; P.L. 114-322), as
well as other authorities
• $100 million (1%) for a new grant program for small water storage projects
• $3.2 billion (39%) for aging infrastructure projects (including several
subcategories of projects)

1 The 17 Reclamation states are Arizona, California, Colorado, Idaho, Kansas, Montana, Nebraska, Nevada, New
Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, and Wyoming.
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• $1 billion (12%) for authorized rural water projects
• $1 billion (12%) for authorized water recycling and reuse projects (i.e., the Title
XVI program), including a new “large-scale” water reuse and recycling category
• $250 million (3%) for authorized water desalination projects
• $500 million (6%) for authorized dam safety projects
• $400 million (5%) for nonfederal water and energy efficiency and other grant
projects under Reclamation’s WaterSMART Program
• $250 million (3%) for a new program for ecosystem restoration projects
• $100 million (1%) for the Cooperative Watershed Management Program
• $100 million (1%) for a new program for watershed health projects
• $300 million (4%) for projects associated with the Upper and Lower Colorado
River Basin drought contingency plans
• $50 million (< 1%) for projects associated with Colorado River endangered fish
species.
Congress provided additional guidance for several of the aforementioned categories, including
sub-allocations or set-asides for specific types of projects. It also directed prioritization and cost
sharing for other authorities receiving funding under the IIJA. Most of the authorities funded
under the act were enacted and have been funded previously by Reclamation. However, some of
the authorities that Congress funded in the IIJA were newly created. The IIJA also included a
section clarifying nonfederal partners’ ability to use certain coronavirus relief funds for water
resources project cost sharing.
In addition to the $8.3 billion provided directly to Reclamation, the IIJA provided $2.5 billion to
the Secretary of the Interior for previously approved Indian water rights settlements in a newly
created Indian Water Rights Settlement Completion Fund.
The influx of Reclamation funding enacted under the IIJA is significant relative to the bureau’s
historic budgetary resources (Figure 1). The following sections discuss major areas of
Reclamation funding in the IIJA, as well as other relevant provisions.2 Each section includes
background on the Reclamation program funded in the IIJA and a description of the act’s relevant
provisions.

2 This report does not include information about other supplemental funding proposals for the Bureau of Reclamation,
such as those proposed in the Build Back Better Act (H.R. 5376).
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Bureau of Reclamation Provisions in the IIJA (P.L. 117-58)

Figure 1. Infrastructure Investment and Jobs Act (IIJA): Bureau of Reclamation
Funding Compared with Other Appropriations Legislation
(comparison with recent enacted discretionary and supplemental appropriations legislation)

Source: Congressional Research Service (CRS), based on Bureau of Reclamation funding data and P.L. 117-58,
P.L. 116-260, and P.L. 111-5.
Notes: Does not reflect suballocations within all programs. ARRA = American Recovery and Reinvestment Act
of 2009 (P.L. 111-5); CO River = Colorado River; DCP = drought contingency plans; IIJA = Infrastructure
Investment and Jobs Act (P.L. 117-58); m = mil ion.

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Spending Plans and Allocation of Funds
In the past, Reclamation has allocated funding appropriated by Congress in spend plans; it has
continued this practice for IIJA funding. Reclamation has released spend plans for IIJA for
FY2022, FY2023, FY2024, and FY2025. These spend plans allocate annual funding in terms of
categories and sections where Reclamation received IIJA funding.3 Each spend plan allocates the
available $1.66 billion in funding for the upcoming fiscal year and updates prior year allocation
levels. Generally speaking, these allocations have not been in equal shares compared with their
overall allocation in the IIJA (Table 1). For instance, some of the more established, ongoing
Reclamation programs and projects (e.g., Title XVI water recycling/reuse and Rural Water
Projects) received FY2022 spend plan allocations in excess of their overall IIJA Reclamation
funding allocation (in terms of percentage of the total allocation), whereas other new authorities
received no funding in the FY2022 spend plan (e.g., Aquatic Ecosystem Restoration and
Protection). However, these programs have received more funding in subsequent years, after
program guidance and related funding criteria were established. In addition to funding for items
outlined in the IIJA, Reclamation’s spend plans also set aside funding for administrative activities
(capped at $49.8 million, or 3% of Initial Spend Plan funding) and a flexible reserve to be used on
“emerging requirements” ($281 million, or 17% of Initial Spend Plan funding).
Reclamation also has released addendums that allocate these funds at project and program levels
and has in some cases provided specific information about how various projects and programs are
to be implemented.

3 Spend plans and related documents are available at Bureau of Reclamation, “Bipartisan Infrastructure Law
Investments,” https://www.usbr.gov/bil/index.html.
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Table 1. Bureau of Reclamation Infrastructure Investment and Jobs Act (IIJA): Funding and Annual Allocations
(funding in millions of dollars)
Total IIJA
FY2022
FY2023
FY2024
FY2025
Program/Project
Appropriations Allocation
Allocation
Allocation
Allocation
Funding Distribution
Water Storage and Conveyance Projects
$1,050.0
$255.1
$106.9
$242.0
$207.3 Internal Formulation
Small Surface Water and Ground Water Storage Project Grants
$100.0
—
$20.0
$25.0
$26.0 Funding Opportunities
Aging Infrastructure (general)
$3,000.0
$240.3
$649.0
$680.0
$670.4 Application Periods
Aging Infrastructure: Critical Facilities
$100.0
$3.5
$85.0
$3.5
$2.5 Application Periods
Aging Infrastructure: Carey Act Dams
$100.0
—
$5.0
$30.0
$31.0 Application Periods
Rural Water Projects
$1,000.0
$450.0
$248.0
$108.0
$82.0 Internal Formulation
Title XVI Water Recycling and Reuse
$550.0
$309.8
$150.0
$29.0
$22.4 Funding Opportunities
Title XVI Water Recycling and Reuse: Large-Scale Projects
$450.0
—
$50.0
$130.0
$128.3 Funding Opportunities
Desalination Projects
$250.0
$15.0
$8.1
$16.0
$101.7 Funding Opportunities
Safety of Dams Projects
$500.0
$100.0
—
$130.0
$127.5 Internal Formulation
WaterSMART Grants
$300.0
$120.0
$112.5
$50.5
$8.0 Funding Opportunities
WaterSMART Grants: Natural or Nature-Based Features
$100.0
$40.0
$37.0
$17.0
$1.5 Funding Opportunities
Cooperative Watershed Management Program
$100.0
$18.0
$20.0
$20.0
$19.5 Funding Opportunities
Aquatic Ecosystem Restoration and Protection
$250.0
—
$45.0
$65.0
$66.3 Funding Opportunities
Watershed Health Improvement
$100.0
—
$20.0
$25.0
$26.0 Funding Opportunities
Lower Colorado River Drought Contingency Plan
$250.0
$50.0
$25.0
$25.0
$71.3 Internal Formulation
Upper Colorado River Drought Contingency Plan
$50.0
—
$8.7
$29.8
$5.0 Internal Formulation
Colorado River Endangered Species Recovery
$50.0
$8.5
$20.0
$20.0
— Funding Opportunities
No Funding in IIJA

Reserve for Emerging Requirementsa
NA
—
—
$14.3
$14.3 NA
Administrative Activitiesa
[$240.0]
$49.8
$49.8
—
$38.6 NA
Total
$8,300.0
$1,660.0
$1,660.0
$1,660.0
$1,660.0
CRS-5

Total IIJA
FY2022
FY2023
FY2024
FY2025
Program/Project
Appropriations Allocation
Allocation
Allocation
Allocation
Funding Distribution
Non-Reclamation Funding

Indian Water Rights Settlements Settlement Completion Fund
$2,500.0
—
$460.0
$207.0
— Internal Formulation
Source: CRS, based on P.L. 117-58 and Bureau of Reclamation, “IIJA/Bipartisan Infrastructure Law Annual Spend Plans for FY2022-FY2025,” https://www.usbr.gov/bil/
2022-spendplan.html.
Notes: Reflects final allocations for FY2022-FY2024 and initial allocation for FY2025 (if available). NA = Not Applicable.
a. The IIJA did not include explicit funding for these activities. The act capped the portion of funding that may be used for administrative expenses at 3% (or no more
than $249 mil ion total ($49.8 mil ion per year)).

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IIJA Funding by Category
Water Storage and Conveyance Projects
Prior to 2016, Congress had not authorized significant new Reclamation water storage and
conveyance projects dating to the late 1970s. In Section 4007 of the WIIN Act, Congress enacted
new construction authority for Reclamation to build surface and groundwater storage and
conveyance projects.4 Prior to the IIJA’s enactment, Congress appropriated a total of
approximately $603 million under this authority between FY2016 and FY2021.
In Section 40901 of the IIJA, Congress authorized a total of $1.05 billion for water storage
projects in accordance with Section 40902 of the act.5 Congress appropriated this funding over
five years (FY2022-FY2026) in Division J of the act. Section 40902 delineated the circumstances
under which projects are eligible for this funding and provided that most of this funding may be
used for feasibility studies and construction of water storage projects, provided certain criteria are
met. In Section 40902(a)(1)(A) of the IIJA, Congress provided that three kinds of feasibility
studies are eligible for funding authorized under Section 40901:
1. Feasibility studies authorized by Congress by the date of enactment of the IIJA
2. Feasibility studies with funding approved under Section 4007 of the WIIN Act
3. Feasibility studies carried out under the Verde Reservoirs Sediment Mitigation
Project (AZ) and the Tualatin River Basin Project (OR)6
Similar to the IIJA’s approach for feasibility studies, Section 40902(a)(2) of the act provided that
one or more criteria must be met for a project to be eligible for construction funding authorized
under Section 40901. Specifically, a project is eligible for IIJA construction funding if any of the
following has occurred as of the date of the IIJA’s enactment:
1. An act of Congress authorized construction funding.
2. Congress approved construction funding under Section 4007 of the WIIN Act.
3. Congress approved feasibility study funding for a project, as detailed above,
provided that the Secretary of the Interior must find that the project is technically
and financially feasible, that sufficient nonfederal funding is available for the
nonfederal cost share, and that the project is in the public interest and
recommended for construction.7
Cost shares for construction projects under this section are to be made in accordance with project-
specific authorizing legislation; the WIIN Act (for projects approved in accordance with that
legislation); or, for all other projects, 50% for federally owned projects and 25% for nonfederal

4 For more information on this authority, see CRS In Focus IF10626, Reclamation Water Storage Projects: Section
4007 of the Water Infrastructure Improvements for the Nation (WIIN) Act, by Charles V. Stern.
5 While the total authorization was for $1.15 billion for water storage projects, Congress stipulated that $100 million of
this funding go toward a newly established grant program for small water storage projects, as established in Section
40903 of the IIJA (P.L. 117-58). See this report’s section “Small Water Storage Project Grants.”
6 P.L. 117-58, §40902(a)(1)(A). In its Initial Spend Plan, Reclamation reported that it had approved an appraisal report
for the Verde Reservoirs Sediment Mitigation Project, thus that project would be eligible for feasibility study funding.
Reclamation, “Bipartisan Infrastructure Law Spend Plans,” https://www.usbr.gov/bil/2022-spendplan.html. Hereinafter,
Bureau of Reclamation, “Spend Plans.”
7 P.L. 117-58, §40902(a)(2).
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projects, as applicable.8 Two types of projects are explicitly noted as ineligible for construction
funding: (1) projects for which Congress did not approve recommended funding in at least one
year prior to the act and (2) projects for which state funding was rescinded prior to the enactment
of IIJA. These requirements appear to exclude the Shasta Dam and Reservoir Enlargement
Project and the Upper San Joaquin River Basin Storage Investigation from construction funding.
Based on the Congressional Research Service’s (CRS’s) preliminary review, as many as 15
projects in five states could be eligible for feasibility study funding under Section 40902 of the
IIJA.9 Furthermore, as many as 13 projects in the same five states could be eligible for
construction funding under Section 40902 of the IIJA. However, whether all of these projects will
actually be eligible for and receive funding depends in part on the result of feasibility studies,
including a recommendation for construction by the federal government.
The funding that Congress provided for water storage projects in the IIJA is almost twice as much
as was appropriated for these projects from FY2016 to FY2021. Combined with prior
appropriations, this funding could meet much of the outstanding federal cost-share obligations for
these projects, which to date have mostly been located in the state of California. The extent to
which Reclamation is successful in implementing these projects may determine whether Congress
continues to appropriate funding for new Reclamation water storage construction in the future.
Allocations/Implementation
For water storage projects under Section 40902 of IIJA, Reclamation generally has focused its
funding allocations to date on a few projects. The majority of funding allocated to date has gone
to two projects: the Arkansas Valley Conduit in Colorado and Los Vaqueros Reservoir Expansion
in California. In its FY2024 and FY2025 spend plans, Reclamation allocated additional funding
of $242 million and $207.3 million for all projects (Table 1), but it had not announced project-
level allocations for this funding as of the date of this report. Table 2 provides Reclamation’s IIJA
water storage project allocations to date.
Table 2. Bureau of Reclamation Infrastructure Investment and Jobs Act (IIJA) Water
Storage Project Allocations
(funding for eligible projects in millions of dollars)
Potentially Eligible Projects (State)
FY2022
FY2023
Arkansas Valley Conduit (CO)
$60.0
$100.0
B.F. Sisk Dam Raise and Reservoir Expansion
$25.0
$10.0
(CA)
Boise River Basin Feasibility Study (ID)
—
—
Del Puerto Water District Feasibility Study
—
—
(CA)
Delta Mendota Canal Subsidence Correction
—
—
(CA)
Friant-Kern Canal Subsidence Challenges
—
—
Project (CA)
Dry Redwater Regional Water System
$3.0
—
Feasibility Study (MT)

8 P.L. 117-58, §40902(b).
9 Some of these studies have been completed, put on hold, or are no longer pursuing study funding for other reasons.
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Potentially Eligible Projects (State)
FY2022
FY2023
Los Vaqueros Reservoir Phase 2 Expansion
$82.0
$10.0
(CA)
Sacramento Regional Water Bank (CA)
—
—
San Luis Low Point Improvement Project (CA)
—
—
Shasta Dam and Reservoir Enlargement
—
—
Project (CA)
Sites Reservoir Storage Project (CA)
$30.0
$30.0
Upper San Joaquin River Basin Storage
—
—
Investigation (CA)
Upper Yakima System Storage Feasibility Study
—
$1.0
(WA)
Verde Reservoirs Sediment Mitigation Project
$5.0
—
Feasibility Study (AZ)
Yakima River Basin Water Enhancement
$5.0
$1.0
Project: Cle Elum Pool Raise (WA)
Total
$210.0
$152.0
Source: CRS, based on the Bureau of Reclamation IIJA spend plan addendums for storage projects for FY2022
and FY2023, https://www.usbr.gov/bil/2022-spendplan.html.
Notes: Does not reflect regular funding. FY2024 and FY2025 project allocations have not been reported as of
the date of this report.
Small Water Storage Project Grants
In Section 40903 of the IIJA, Congress directed the Secretary of the Interior to establish a new
competitive grant program for small water storage projects, which are allocated $100 million of
the total water storage funding authorized under Section 40901. Congress appropriated this
funding over five years (FY2022-FY2026) in Division J of the act. Eligible projects are defined
as projects in Reclamation states, Hawaii, or Alaska with water storage capacity of 200-30,000
acre-feet (AF) or that convey water directly or indirectly from surface or groundwater storage.
Federal costs under this section are to be no more than the lesser of 25% of the project’s total
costs or $30 million.10
The IIJA grant authority for small water storage projects allows Reclamation to operate a new
program that funds nonfederal water storage projects within the limits authorized by Congress.
The cost shares for this authority are similar to that available to nonfederal projects initiated
under the authorities of the WIIN Act (see above section, “Water Storage and Conveyance
Projects”). Although these projects are hypothetically eligible to pursue WIIN Act funding, the
new grant program sets aside funding for these projects to compete with one another. Similar to
Reclamation’s funding for nonfederal WIIN Act projects, this program continues a trend of
Reclamation (and the federal government) serving as a project reviewer/funder/participant, as
opposed to a project owner.

10 P.L. 117-58, §40903(c).
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Allocations/Implementation
Reclamation published the first grant funding opportunity for small water storage projects on
September 14, 2022; the application period closed on December 9, 2022. Projects had to have a
completed feasibility study to be deemed eligible for the grant funding opportunity. Reclamation
announced its first funding allocation for these projects in FY2023, allocating $20 million to four
projects in California and Utah (Table 3). Reclamation has allocated another $25 million for grant
awards in this category in both FY2024 and FY2025 (Table 1) but has yet to announce the
recipients.
Table 3. Bureau of Reclamation Small Water Storage Projects: Infrastructure
Investment and Jobs Act (IIJA): FY2023 Funding Allocations
(in millions of dollars)
Project Name (State)
FY2023
Imperial Irrigation District Upstream Operational Reservoir Storage Project (CA)
$9.47
Kern Fan Groundwater Storage Project- Phase 1 (CA)
$4.74
Washington County Water District Ash Creek Project—Toquer Reservoir (UT)
$4.74
Del Puerto Water District: Orestimba Creek Groundwater Recharge and Recovery
$1.04
Expansion Project (CA)
Source: Bureau of Reclamation (Reclamation), Addendum-WaterSMART – WEEG, Drought Contingency Plan for LC
& UC, Small Storage FY2023, and Water Desal Spend Plan, May 2, 2023, https://www.usbr.gov/bil/docs/spendplan-
2023/Reclamation-BIL-Spend-Plan-Addendum-05-02-2023.pdf.
Notes: No funding was made available for these projects in FY2022. Although Reclamation released FY2024 and
FY2025 spend plans, no water storage project allocations have been reported as of the date of this report.
Aging Infrastructure
Aging infrastructure represents a significant challenge for Reclamation; most of the bureau’s
facilities are 60-100 years old. As of 2015, Reclamation estimated the total replacement value of
these facilities at approximately $99 billion.11 In April 2021, Reclamation estimated needs of $2.3
billion over the FY2021-FY2025 period for appropriated non-dam safety projects, along with
additional needs for dam safety projects and projects such as power facilities, which typically are
not funded with appropriations (Figure 2).12 This amount is significantly more than Reclamation
typically requests to meet these needs on an annualized basis.

11 Bureau of Reclamation, Infrastructure Investment Strategy, May 2015, p. 1, https://www.usbr.gov/infrastructure/
docs/Infrastructure_Investment_Strategy_Final_Report_1SEP15.pdf.
12 Bureau of Reclamation, Asset Management Report Pursuant to the John D. Dingell, Jr. Conservation, Management,
and Recreation Act of March 12, 2019, April 2021, https://www.usbr.gov/infrastructure/mrr/docs/asset-management-
report-to-congress.pdf.
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Figure 2. Bureau of Reclamation: Major Rehabilitation and Repair (MR&R) Needs
(five-year MR&R needs as of 2021)

Source: Bureau of Reclamation, Asset Management Report Pursuant to the John D. Dingell, Jr. Conservation,
Management, and Recreation Act of March 12, 2019, April 2021.
Reclamation generally operates under a beneficiary-pays model in which Congress must
appropriate funding for repairs and project sponsors must repay this funding. However, most
Reclamation contractors do not own the facilities from which they benefit and therefore may have
difficulty financing their share of project repairs.13 In the context of aging infrastructure, this
situation poses a challenge for upkeep of Reclamation facilities.
To address Reclamation’s aging infrastructure issues, Congress established an Aging
Infrastructure Account in Section 9603 of the Omnibus Lands Act of 2009 (P.L. 111-11) and
amended this authority in Section 1101, Title XI, of P.L. 116-260. The account is authorized to
receive congressional appropriations for Reclamation to provide for the conduct of extraordinary
operation and maintenance work at a Reclamation facility that is to be repaid by users over
periods of up to 50 years, in accordance with existing project cost allocations. In turn, these
repayments would be available for expenditures, without further appropriation, for future projects
(i.e., a revolving fund).

13 To provide borrowers with financial support, some creditors require collateral in the form of the borrower’s
infrastructure assets. If the borrower does not possess the assets for which it is borrowing funding, it can be difficult to
obtain financing.
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In Section 40901 of the IIJA, Congress authorized a total of $3.2 billion for the Aging
Infrastructure Account, with $200 million of this funding designated for specific purposes under
Section 40904 of the act. Congress appropriated this funding over five years (FY2022-FY2026)
in Division J of the act. The funding is Reclamation’s first such funding for this account. One
hundred million dollars of this funding authorized under Section 40904(a) was set aside for
Reclamation projects built prior to 1915 that suffered critical failures within the past two years;
this funding was designated by Congress as nonreimbursable (i.e., a 100% federal expense, not
subject to repayment).14 An additional $100 million of the Aging Infrastructure Account funding
was set aside for dam rehabilitation, replacement, and construction under Section 40904(b),
which authorizes funds for dam safety efforts at specific dams that were constructed after 1905, in
accordance with the Carey Act of 1894, with repair costs in excess of $50 million.15 Whereas
funding under Section 40904(a) is stipulated as nonreimubursable, no such designation was made
for Section 40904(b).
Allocations/Implementation
As stated above, some portion of the aging infrastructure funding is expected to be repaid over
time and is subject to the terms of a repayment contract with Reclamation (i.e., similar to
traditional reclamation project funding). To be eligible for federal funding under this authority,
the work must be major, nonrecurring maintenance that is intended to continue the delivery of
project benefits, and it must meet a cost threshold that is greater than either $100,000 or 10% of
the operating budget for that facility. Potential applicants include transferred works operators and
project beneficiaries that are responsible for a share of reimbursable costs on the relevant facility.
Tribes are included as eligible applicants.
Reclamation has solicited funding requests and awarded funding for aging infrastructure projects
under Section 40902, with the first funding notice (for FY2022 funds) in December 2021.
Reclamation reported that demand for those initial funds exceeded the $240 million in funding
that it had available for awards in FY2022 but that a much larger percentage of project
applications were funded in FY2023, when Reclamation made available $585 million (Table 4).
Reclamation allocated another $680 million for these projects in each of FY2024 and FY2025,
although it has yet to announce project awards for these allocations (Table 1). In December 2023,
Reclamation reported that a total of seven contractors (six from FY2022 and one from FY2023)
decided to decline the funding allocated to their projects; thus, these funds were to remain in the
aging infrastructure account and be made available to other projects.16

14 Other projects funded by the Aging Infrastructure Account are subject to reimbursement by project users, in
accordance with project cost allocations.
15 43 U.S.C. §641.
16 Bureau of Reclamation, Implementation of the Bipartisan Infrastructure Law, Addendum—Rural Water,
WaterSMART Environmental, Aquatic Ecosystem Restoration, December 19, 2023, https://www.usbr.gov/bil/docs/
spendplan-2024/Reclamation-BIL-Spend-Plan-Addendum-12-19-2023.pdf.
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Table 4. Bureau of Reclamation Infrastructure Investment and Jobs Act (IIJA)
Extraordinary Maintenance Requests and Allocations
(funding as of March 2024 in millions of dollars)
Number of
Projects
Requested
Number of

Requested
Funding
Project Awards
Funding Awards
FY2022
136
$1,081
46
$240
FY2023
89
$2,084
83
$585
Total
225
$3,165
129
$825
Source: Bureau of Reclamation (Reclamation), FY2022 and FY2023 IIJA Aging Infrastructure reports,
https://www.usbr.gov/bil/2022-spendplan.html.
Notes: Reclamation has reported that seven contractors (six in FY2022 and one in FY2023) decided not to
accept funding allocations.
Rural Water
Since 1980, Congress has authorized Reclamation to undertake the design and construction, and
sometimes the operations and maintenance (O&M), of specific rural water supply projects
intended to deliver potable water supplies to rural communities in western states.17 These projects
are largely located in North Dakota, South Dakota, Montana, and New Mexico and serve tribal
reservations and nontribal rural communities with nonexistent, substandard, or declining water
supply or water quality. Many rural water projects are large in scope, taking water from one
location and moving it across long distances to tie to existing systems. Although municipal and
industrial portions of most Reclamation water supply facilities require 100% repayment with
interest, in various laws Congress has authorized rural water projects that receive some or all
funding from the federal government on a nonreimbursable basis (i.e., a de facto grant). For
example, the federal government pays up to 100% of costs for tribal rural water supply projects,
including O&M. For nontribal rural water supply projects, the federal cost share for current
projects ranges from 75% to 80%.18
Reclamation continues to construct rural water projects and to provide O&M assistance for some
tribal components. Each rural water project authorization requires the construction cost ceilings in
the authorizing law to be adjusted for inflation. In early 2020, Reclamation reported that $1.2
billion was needed to complete the construction for its five authorized, ongoing rural water
projects.19 In addition to the five ongoing projects, in the Clean Water for Rural Communities Act
(Division FF, Title XI, Section 1110, of P.L. 116-260), Congress directed the Secretary of the
Interior to enter into a cooperative agreement to provide assistance at a 65% federal cost share for
the planning, design, and construction of the Musselshell-Judith Rural Water System.20

17 For more background on these projects, see CRS Report R46308, Bureau of Reclamation Rural Water Projects, by
Anna E. Normand.
18 Personal correspondence between CRS and Reclamation on January 9, 2020.
19 At the time of reporting the backlog, Reclamation and the Jicarilla Apache Nation were not in discussions regarding
the incomplete Jicarilla Apache Rural Water System project. Personal correspondence between CRS and Reclamation
on February 21, 2020.
20 The Clean Water for Rural Communities Act (Section 1110 of Title XI of Division FF of P.L. 116-260) authorized
appropriations at $56.7 million subject to cost indexing for the 2014 cost estimate of the feasibility report. The act also
authorized $5.0 million for reviewing the Dry-Redwater Regional Water Authority System submitted to Reclamation
(continued...)
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In Section 40901 of the IIJA, Congress authorized $1 billion for Reclamation’s rural water
projects. Congress appropriated this funding over five years (FY2022-FY2026) in Division J of
the act. Congress limited eligibility for this funding to Reclamation rural water projects that were
authorized in an act of Congress before July 1, 2021, in accordance with the Reclamation Rural
Water Supply Act of 2006 (43 U.S.C. §§2401 et seq.).21
Allocations/Implementation
Reclamation has allocated IIJA funding in FY2022 through FY2024 for construction of various
authorized rural water projects as outlined in spend plans and press releases (see Table 5).
Reclamation stated that it plans to allocate $82.0 million in FY2025. While IIJA funding was
anticipated to address much of the authorized federal backlog for rural water construction
projects, Congress has appropriated and Reclamation continues to request and allocate funding
through the annual appropriations process for a number of projects.
Table 5. Bureau of Reclamation Rural Water Construction Funding in the
Infrastructure Investment and Jobs Act (IIJA)
(millions of dollars)
Rural Water Project
FY2022a
FY2023b
FY2024c
Garrison Diversion Unit, ND
$51.0
$26.3
$27.0
Fort Peck Reservation – Dry Prairie, MTd
$7.0
$15.0
—
Rocky Boy’s / North
$57.5
$77.6
$11.0
Central Montana, MT
Jicaril a Apache, NMe
—
$12.0
$10.0
Lewis & Clark, SD, IA, and MN
$75.5
$60.0
$7.0
Eastern New Mexico, NM
$160.0
$62.1
$7.0
Musselshell-Judith, MT
$37.0
$25.0
$3.0
Source: Spend plan and budget request documents at Bureau of Reclamation (Reclamation), “Bipartisan
Infrastructure Law Spend Plans,” https://www.usbr.gov/bil/2022-spendplan.html; Reclamation, “Bureau of
Reclamation Budget,” https://www.usbr.gov/budget/; and Reclamation, “Share Biden-Harris Administration
Announces $65 Mil ion in Rural Water Funding from President’s Investing in America Agenda,” October 30,

on September 1, 2010, and for completing any additional work to ensure the study complied with Reclamation’s
feasibility standards.
21 Section 40901 of Title IX of Division D and Title III of Division J of the IIJA. The Rural Water Supply Act of 2006
(Title I of P.L. 109-451) created the Rural Water Supply Program, a structured program for developing and
recommending future rural water supply projects. This program was to replace the previous process of authorizing
projects individually—often without the level of analysis and review (e.g., feasibility studies) required for
Reclamation’s other projects. Under the Rural Water Supply Program, Congress authorized Reclamation to work with
rural communities and tribes to identify municipal and industrial water needs and options to address such needs through
appraisal investigations and feasibility studies. Congress would then consider feasibility studies recommended by the
Administration before authorizing specific project construction in legislation. In 2015, the Central Montana Rural
Water Authority submitted the Musselshell-Judith Rural Water System Feasibility Study to Reclamation for technical
review under this program. Ultimately, Reclamation did not recommend and Congress did not authorize any projects
before the authority for the program expired in 2016. However, the Clean Water for Rural Communities Act authorized
federal assistance for the Musselshell-Judith Rural Water System in 2020. In addition, pursuant to Section 104 of P.L.
109-451, the Secretary of the Interior developed a comprehensive assessment of the status and plans for completing the
design and construction of rural water supply projects that were individually authorized prior to enactment of the Rural
Water Supply Act of 2006.
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2023, https://www.doi.gov/pressreleases/biden-harris-administration-announces-65-mil ion-rural-water-funding-
presidents.
Notes: IIJA = Infrastructure Investment and Jobs Act (P.L. 117-58).
a. IIJA FY2022 spend plan also included $32.0 mil ion of reserved funding. IIJA FY2025 spend plan adjusted the
total provided to Rural Water in FY2022 from $420.0 mil ion to $450.0 mil ion.
b. IIJA FY2024 spend plan stated that $30.0 mil ion of these funds were carryover from FY2022.
c. IIJA FY2024 spend plan stated that Reclamation plans allocate $108 mil ion in FY2024, but only one press
release announced $65.0 mil ion in funding to the projects as listed as of March 2024.
d. FY2024 budget requests state that the project was anticipated to be substantially completed in FY2023.
e. The Jicaril a Apache, NM, project was on hold until allocation of IIJA funding.
Title XVI Water Recycling/Reuse
Reclamation’s Title XVI program provides assistance for nonfederal studies and construction
projects to reclaim and reuse wastewater and naturally impaired surface and groundwater.22 The
original Title XVI legislation, authorized under the Reclamation Projects Authorization and
Adjustment Act of 1992 (P.L. 102-575), approved construction of five reclamation wastewater
projects and six wastewater and groundwater recycling/reclamation studies. Congress added new
projects between 1992 and 2009, resulting in the authorization of 53 individual, geographically
specific Title XVI projects.23
Amendments to the Title XVI program, enacted in December 2016 under Section 4009(c) of the
WIIN Act, approved a new mechanism to authorize Title XVI projects. The WIIN Act authorized
the Secretary of the Interior to accept and review nonfederal Title XVI feasibility studies to
determine eligibility for future planning, design, and construction funding. To be eligible for
federal funding, projects must be transmitted to Congress by the Secretary of the Interior, then
recommended for funding by the Secretary, and ultimately designated by Congress to receive
funding in enacted appropriations legislation.24 From 2017 to 2021, this process resulted in the
approval of 61 additional projects and multiple rounds of project-specific funding. Accounting for
inactive and completed projects, CRS estimates that total remaining federal contributions for
active Title XVI projects prior to enactment of the IIJA were in excess of $700 million.25
Title XVI project funding is awarded as grants to sponsors of nonfederal projects. Reclamation
conducts separate grant solicitations for those projects authorized individually by Congress and
those authorized and approved pursuant to the WIIN Act. For most Title XVI projects, the federal
cost share is up to 25% of project costs, not to exceed $20 million.26
In Section 40901 of the IIJA, Congress authorized a total of $1 billion for water recycling and
reuse projects. Congress appropriated this funding over five years (FY2022-FY2026) in Division
J of the act. Of the $1 billion for these projects, Congress designated $550 million for Title XVI
projects in general. For projects funded in the IIJA, Congress waived the WIIN Act’s requirement
that these projects be designated by name in enacted appropriations legislation.27 Title XVI

22 The program name refers to the bill’s authorization for these projects, Title XVI of P.L. 102-575.
23 Many of these projects are complete or are no longer seeking funding.
24 43 U.S.C. §390h(g)(2).
25 CRS analysis of Bureau of Reclamation data, updated in May 2021.
26 43 U.S.C. §390h-13. Although the $20 million statutory cap for these projects was authorized to be indexed to
October 1996 prices, as of enactment of the IIJA, Reclamation continued to apply a cap of $20 million for most Title
XVI projects.
27 P.L. 117-58, §40901(4)(A)(ii).
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projects eligible under the IIJA appear to include not only projects that Reclamation has approved
but also future projects that may be approved under the WIIN Act authority.
The remaining $450 million in funding is reserved for grants to “large-scale water recycling and
reuse” projects, as authorized under Section 40905 of the IIJA. Congress defined these projects to
include water recycling and reuse projects (including conveyance projects) in a Reclamation state
with total costs in excess of $500 million for each project. In contrast to traditional Title XVI
projects (which are limited to the lesser of $20 million or 25% federal cost share), projects under
this section are entitled to a federal cost share of 25% of project costs with no dollar cap on
federal support. Several projects approved for Title XVI support appear to meet the eligibility
criteria for this funding; however, this authority is not limited to previously approved Title XVI
projects.
Allocations/Implementation
Reclamation allocated $309.8 million in IIJA funding for 24 Title XVI projects in FY2022, $150
million for these projects in FY2023, $29 million for these projects in FY2024, and $22.4 million
for these projects in FY2025 (Table 1). Based on responses to funding solicitations, Reclamation
has announced project-specific allocations for 24 projects selected to receive FY2022 funds;
Reclamation reported that the total funding level was an increase from initially announced
allocation levels due to the “high quality” of the applications received.28 Reclamation allocated no
funding for large-scale projects in FY2022 but allocated $50 million for these projects in
FY2023, $130 million for these projects in FY2024, and $128 million for these projects in
FY2025 (Table 1).
Desalination Projects
Reclamation and other offices within DOI have supported desalination research and development
since the early 1950s. In recent decades, Reclamation has worked to advance desalination with
internal research, grants on specific topics of interest, and, at Congress’s direction, construction
and operations of a facility for testing brackish desalination technologies.29 Section 4009(a) of the
WIIN Act expanded the federal role in desalination facilities by authorizing the Secretary of the
Interior to provide federal funding of up to 25% of the total cost of an eligible desalination project
in a Reclamation state.30 The authority includes desalination of both seawater and brackish water
and applies to facilities constructed, operated, or sponsored by an entity of a state. Similar to the
process for Title XVI projects, a project may apply for and receive grant funding under the WIIN
Act authority only after Reclamation has recommended the project for funding and Congress has
approved it by name in an enacted appropriations bill.31 Between 2016 and 2021, Reclamation
approved 13 desalination projects for potential funding under this authority and began to
recommend funding for individual projects.32

28 Bureau of Reclamation, Implementation of the Bipartisan Infrastructure Law, Addendum-August to January 14,
2022, Initial Spend Plan, August 31, 2022, https://www.usbr.gov/bil/docs/spendplan-2023/Reclamation-BIL-Spend-
Plan-Addendum-05-02-2023.pdf.
29 Most of these activities were formally authorized in the Water Desalination Act of 1996 (P.L. 104-298).
30 §4009(a) of the WIIN Act included no per-project cap on grant funding. Reclamation previously has capped these
awards at the lesser of 25% of total project costs or $20 million.
31 42 U.S.C. §10301 note.
32 For individual project eligibility and awards, see Bureau of Reclamation, “WaterSMART, Desalination,”
https://www.usbr.gov/watersmart/desalination/index.html.
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In Section 40901 of the IIJA, Congress authorized $250 million for desalination project grants
pursuant to Section 4009(a) of the WIIN Act. Congress appropriated this funding over five years
(FY2022-FY2026) in Division D of the IIJA. As with the waiver it provided for WIIN Act Title
XVI projects in the IIJA, Congress waived the WIIN Act requirement for desalination projects to
be designated by name in enacted appropriations legislation.33 Eligible desalination projects
appear to include not only projects that Reclamation has approved but also future desalination
projects approved under the WIIN Act authority.
Unlike the Title XVI funding in the IIJA, there is no carve-out of IIJA desalination funds for
larger facilities that are exempt from administrative caps, and the legislation did not place a cap
on per-project funding under this authority.
Allocations/Implementation
Reclamation requested $15 million for IIJA desalination project funding in FY2022. For FY2023
funding, Reclamation allocated $8.1 million. For FY2024, Reclamation allocated a net of $16
million to the program (i.e., after a transfer to the Colorado River Endangered Species line, see
below), and for FY2025 Reclamation allocated $101.7 million for desalination projects (Table 1).
Reclamation also published grant solicitations for these allocations, and in 2023 announced
awards for planning and feasibility study activities associated with desalination in 2023.34
Safety of Dams Projects
Reclamation manages 489 dams throughout Reclamation states.35 Reclamation’s Dam Safety
Program provides for inspection and repairs to qualifying projects at Reclamation dams.36
Reclamation conducts dam safety inspections through the Safety Evaluation of Existing Dams
(SEED) program.37 Reclamation carries out corrective actions, if necessary, through the Initiate
Safety of Dams Corrective Action (ISCA) program. With ISCA appropriations, Reclamation
funds modifications on priority structures based on an evolving identification of risks and needs.
In April 2021, Reclamation estimated the needs for dam safety projects over the FY2021-FY2025
period at $1.4 billion.38 The analysis provided further details on estimated needs over a 30-year
period (FY2021-FY2050) for dam safety projects: $2.1 billion for 12 projects. More than half of
this amount would be for the B.F. Sisk Dam modification project, estimated at $1.1 billion.39

33 P.L. 117-58, §40901(5)(B).
34 Bureau of Reclamation, “Reclamation Invests $28.97 Million to Assist with Planning and Feasibility Study
Development for 31 Water Recycling and Desalination Projects,” press release, September 27, 2023,
https://www.usbr.gov/newsroom/news-release/4639.
35 Of the total dams, 361 dams at 241 facilities are classified as high and significant hazard (i.e., dam failure could
result in fatalities and/or significant economic destruction). Reclamation, FY2024 Bureau of Reclamation Budget
Justifications, 2023, p. GS-4, https://www.usbr.gov/budget/.
36 Funding for Reclamation’s dam safety program also supports the Department of the Interior Dam Safety Program
($1.3 million in FY2023). The Commissioner of Reclamation serves as the Department of the Interior’s coordinator for
dam safety and advises the Secretary of the Interior on program development and operation of the department’s dam
safety programs.
37 Bureau of Reclamation, Dam Safety Public Protection Guidelines: A Risk Framework to Support Dam Safety
Decision-Making, 2011, https://www.usbr.gov/ssle/damsafety/documents/PPG201108.pdf.
38 Bureau of Reclamation, Asset Management Report Pursuant to the John D. Dingell, Jr. Conservation, Management,
and Recreation Act of March 12, 2019, April 2021, https://www.usbr.gov/infrastructure/mrr/docs/asset-management-
report-to-congress.pdf.
39 The median estimate of need per project over the 30-year timeframe was $39.0 million.
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In Section 40901 of the IIJA, Congress authorized $500.0 million for the Dam Safety Program, in
accordance with the Reclamation Safety of Dams Act of 1978, as amended (43 U.S.C. §§506 et
seq.). Congress appropriated this funding over five years (FY2022-FY2026) in Division J of the
IIJA. Reclamation may provide funding for various activities within its Dam Safety Program,
including SEED and ISCA activities. A nonfederal cost share may be required for some of these
activities. The Reclamation Safety of Dams Act Amendments of 1984 (P.L. 98-404) required a
15% cost share from sponsors for dam safety modifications when modifications are based on new
hydrologic or seismic data, or changes in state-of-the-art design or construction criteria that are
deemed necessary for safety purposes. Congress directed Reclamation to allocate costs resulting
from age and normal deterioration or from lack of maintenance according to the purpose for
which the structure was authorized for construction.40
Allocations/Implementation
Reclamation allocated $100.0 million in IIJA funding for one authorized dam safety project—B.F.
Sisk Dam—in its FY2022 spend plan.41 According to a 2022 press release, Reclamation used both
IIJA and annual appropriations for the initial construction of the project.42 For FY2023,
Reclamation stated, the “Safety of Dams Program has sufficient funds in the FY2023 request to
support all ongoing activities and will not require additional [Bipartisan Infrastructure Law]
funding during this period.”43 In its FY2025 spend plan, Reclamation stated it allocated $130.0
million in FY2024, but did not specify which projects would receive the funding.44 The FY2025
spend plan also stated that Reclamation plans to allocate $127.5 million in FY2025.
WaterSMART Grants
Reclamation provides federal funding for projects in four categories under its WaterSMART
Grants program: water and energy efficiency, small-scale water efficiency, water marketing
strategy, and environmental water resources projects. Congress originally approved authority for
WaterSMART grants in Section 9504 of the Secure Water Act (Title IX of P.L. 111-11) and has
amended the authority multiple times.45 The program’s initial focus was water and energy
efficiency grants, but Reclamation has administratively added other, related grant opportunities
over time, such as those for small-scale water efficiency projects and water marketing strategy
development (added in FY2017) and for environmental water resources projects (added in
FY2022).46
Section 9502 of the Secure Water Act, as amended, defined eligible applicants for WaterSMART
grants to include states, Indian tribes, irrigation districts, water districts, and other organizations
with water or power delivery authority, as well as nonprofit conservation organizations acting in

40 43 U.S.C. §508.
41 Bureau of Reclamation, Implementation of the Bipartisan Infrastructure Law, Addendum-DS to January 14, 2022,
Initial Spend Plan, March 22, 2022, https://www.usbr.gov/bil/docs/spendplan-2022/Reclamation-BIL-Spend-Plan-
Dam-Safety-Addendum-DS-3-21-2022.pdf.
42 Bureau of Reclamation, “Interior Department Invests $100 Million in First Dam Safety Project Through President
Biden’s Bipartisan Infrastructure Law,” March 22, 2022, at https://www.doi.gov/pressreleases/interior-department-
invests-100-million-first-dam-safety-project-through-president.
43 Bureau of Reclamation, “Spend Plans.”
44 Bureau of Reclamation, “Spend Plans.”
45 42 U.S.C. §10364.
46 For more information on the newest category, see Bureau of Reclamation, “WaterSMART, Environmental Water
Resources Projects,” https://www.usbr.gov/watersmart/ewrp/index.html.
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partnership with one of the aforementioned organizations.47 Applicants also must be located in a
Reclamation State or Territory (as identified in the Reclamation Act of 1902, as amended) or in
Alaska, Hawaii, or Puerto Rico. The statutory maximum amount per grant is generally $5 million;
in practice, Reclamation has set lesser caps for various WaterSMART grant categories.48 The
federal government funds up to 50% of project costs for most WaterSMART grants; however, the
maximum potential federal cost share for environmental water resource projects (authorized in
P.L. 116-260) is 75%.
In Section 40901 of the IIJA, Congress authorized $400 million for WaterSMART grants.
Congress appropriated this funding over five years (FY2022-FY2026) in Division J of the act.
The only additional stipulations for this funding under the IIJA are that $100 million must be
made available for WaterSMART projects that would improve natural or nature-based features, as
defined in Section 5504 of P.L. 111-11.49
Allocations/Implementation
Reclamation allocated $120 million in IIJA funds for WaterSMART grants in FY2022, $112.5
million in FY2023, $50.5 million in FY2024, and $8 million in FY2025 (Table 1). This funding
has been used for sub-awards in multiple categories of WaterSMART grants, including water and
energy efficiency projects, drought resiliency projects, and small scale water efficiency projects.50
Apart from “traditional” categories of WaterSMART grants, Reclamation has also allocated
funding from the $100 million appropriated for natural or nature-based projects: $40 million in
FY2022, $37 million in FY2023, $17 million in FY2024, and $1.5 million in FY2025.
Reclamation has combined solicitation of the latter funding with two other related categories of
its IIJA funding (Cooperative Watershed Management Program and Watershed Health
Improvement, see below) under the WaterSMART Environmental Water Resources Projects grant
“umbrella,”51 and has reported on funding awarded in each category in spend plan addendums.
For instance, Reclamation reported individual project awards totaling $51.1 million for
Environmental Water Resources Projects in FY2023 and FY2024; of this total, $23.6 million was
for natural or nature-based features projects, $10 million was for Cooperative Watershed
Management projects, and $17.5 million was for Multi-Benefit Watershed Health Improvement
projects.52
Cooperative Watershed Management Program
Subtitle A of Title VI of the Omnibus Public Land Management Act of 2009 (P.L. 111-11 as
amended, 16 U.S.C. §§1015 et seq.) authorized the Cooperative Watershed Management Program
(CWMP), which provides funding to form watershed groups in the West that develop local

47 42 U.S.C. §10362.
48 For more information and grant solicitation links, see Bureau of Reclamation, “WaterSMART,”
https://www.usbr.gov/watersmart/index.html.
49 42 U.S.C. §10364.
50 Bureau of Reclamation, Implementation of the Bipartisan Infrastructure Law, Addendum, ESA & WaterSMART,
December 2022, https://www.usbr.gov/bil/docs/spendplan-2023/Reclamation-BIL-Spend-Plan-Addendum-
ESA%20WaterSMART12-27-2022.pdf.
51 For more information, see Bureau of Reclamation, “Environmental Water Resources Projects,”
https://www.usbr.gov/watersmart/ewrp/index.html.
52 Bureau of Reclamation, Implementation of the Bipartisan Infrastructure Law, Addendum—Rural Water,
WaterSMART Environmental, Aquatic Ecosystem, December 19, 2023, https://www.usbr.gov/bil/docs/spendplan-2024/
Reclamation-BIL-Spend-Plan-Addendum-12-19-2023.pdf.
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solutions to address water management needs. These groups are self-sustaining, consensus-based
stakeholder groups. Funding recipients must be grassroots, nonregulatory entities that address
water availability and quality issues within a watershed, represent a diverse group of
stakeholders, and are capable of promoting water supply reliability.53
As of 2021, CWMP funding supported two separate phases for projects. Phase I funds watershed
group development and watershed restoration projects, providing funds for start-up costs,
restoration planning, and project design.54 Phase II funds implementation of watershed
management projects, providing cost-shared assistance to watershed groups to implement
projects. Reclamation awarded $10.0 million in funding for the establishment and development of
108 watershed groups and $3.0 million for the implementation of 18 watershed management
projects from FY2012 through FY2021.55
In Section 40901 of the IIJA, Congress authorized $100.0 million for watershed management
projects (i.e., Phase II projects) in accordance with Title VI, Subtitle A, of P.L. 111-11 (i.e.,
CWMP). Congress appropriated this funding over five years (FY2022-FY2026) in Division J of
the act.
Allocations/Implementation
Reclamation allocated $18.0 million in IIJA funds for the CWMP in FY2022, $20.0 million for
FY2023, $20.0 million for FY2024, and $19.5 million for FY2025 (Table 1).56 Reclamation
chose to solicit project grants under Phase II of the program as “Environmental Water Resources
Projects,” a new category of WaterSMART grants as of FY2022 (see previous section,
“WaterSMART Grants”). To date, Reclamation has reported on grant recipients and allocations
for the FY2022 and FY2023 Environmental Water Resources Projects grants. However, through
the annual appropriations process, Reclamation is using appropriations for the Cooperative
Watershed Management line item to fund both Phase I and Phase II activities.57
Watershed Health Improvement
In Section 40907 of the IIJA, Congress directed the Secretary of the Interior to establish a
program by November 15, 2022, to award competitive grants to eligible applicants for the design,
implementation, and monitoring of multi-benefit habitat restoration projects. These projects are to
improve watershed health in a river basin that is adversely impacted by a Reclamation water
project.58 Eligible applicants may include states, tribal or local governments, organizations with

53 For more information, see Bureau of Reclamation, “WaterSMART, Cooperative Watershed Management Program,”
https://www.usbr.gov/watersmart/cwmp/index.html.
54 Phase I projects may receive assistance of up to $50,000 per year for a period of up to two years (i.e., $100,000
total), with no nonfederal cost share required. Funding caps are less than those authorized in the Omnibus Public Land
Management Act of 2009 (P.L. 111-11). For more information on the status of the program, which currently only
includes Phase I grants, see Bureau of Reclamation, “WaterSMART, Cooperative Watershed Management Program,”
https://www.usbr.gov/watersmart/cwmp/index.html.
55 Bureau of Reclamation, FY2023 Bureau of Reclamation Budget Justifications, 2022, p. BW-73,
https://www.usbr.gov/budget/.
56 Bureau of Reclamation, Bipartisan Infrastructure Law (BIL) Annual Spend Plan Update, FY2024 Submission, at
https://www.usbr.gov/bil/2022-spendplan.html.
57 Reclamation still intends to include annual appropriations for Phase II projects under the Environmental Water
Resources Projects WaterSMART grant solicitations. Bureau of Reclamation, FY2025 Bureau of Reclamation Budget
Justifications, 2024, p. BW-72, https://www.usbr.gov/budget/.
58 Projects must provide one or more of the following objectives: ecosystem benefits; restoration of native species;
(continued...)
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power or water delivery authority, regional authorities, or nonprofit conservation organizations.
The federal cost share for projects is limited to 50% but may be up to 75% for projects where the
water conservation and habitat restoration benefits of the project account for at least 75% of the
project cost.
In Section 40901 of the IIJA, Congress authorized $100.0 million for these multi-benefit projects
to improve watershed health, in accordance with Section 40907 of the IIJA. In Division J of the
act, Congress appropriated this funding over five years (FY2022-FY2026).
Allocations/Implementation
Reclamation allocated $20.0 million of funding for this program in FY2023 (Table 1), which was
part of the Environmental Water Resources Projects WaterSMART grant solicitation.59 In
FY2024, Reclamation allocated $25.0 million of IIJA funding for these activities, and $26.0
million in FY2025. As stated above, Reclamation has reported on grant recipients and allocations
for FY2023 Environmental Water Resources Projects grants, which was authorized to include
Watershed Health Improvement activities. Outside of IIJA funding, Reclamation has not
requested, and Congress has not provided, appropriations specifically for Watershed Health
Improvement activities.
Aquatic Ecosystem Restoration
Reclamation has performed aquatic ecosystem restoration and other environmental mitigation
activities in the Reclamation states; however, prior to 2021, Reclamation often conducted these
activities to fulfill requirements in federal laws (e.g., for the conservation of species listed under
the authorities of the Endangered Species Act [ESA])60 or pursuant to a site-specific
authorization. Congress has since provided Reclamation with a broad aquatic ecosystem
restoration authority. Section 1109 of Division FF of P.L. 116-260 (33 U.S.C. §2330c) authorized
the Secretary of the Interior to enter into agreements with eligible entities to fund the design,
study, and construction of aquatic ecosystem restoration and protection projects in Reclamation
states.61 The projects must aim to improve the health of fisheries, wildlife, or aquatic habitat and
may include habitat restoration and improved fish passage (e.g., dam removal, fish way
construction).62 To initiate these projects, eligible entities must enter into an agreement with the
Secretary of the Interior to pay no less than 35% of project costs and 100% of operation,

mitigation against the impacts of climate change on fish and wildlife habitats; protection against invasive species;
ecosystem restoration; enhancement of commercial, recreational, subsistence, or tribal ceremonial fishing; and
enhancement of river-based recreation.
59 Bureau of Reclamation, Bipartisan Infrastructure Law (BIL) Annual Spend Plan Update, FY2024 Submission,
https://www.usbr.gov/bil/2022-spendplan.html.
60 87 Stat. 884; 16 U.S.C. §§1531-1544.
61 Eligible entities may include states, Indian tribes, irrigation districts, or water districts; state, regional, or local
authorities with a water or power delivery authority; other entities or organizations that own a facility eligible for
upgrade, modification, or removal; nonprofit conservation organizations acting in partnership with a previously listed
entity for a project involving land or infrastructure owned by that entity; combinations of previously listed entities; and
agencies established under state law for the joint exercise of powers.
62 The Secretary of the Interior also must ensure the project will not hinder existing water delivery obligations; will not
negatively affect the environment; is consistent with trust responsibilities for federally recognized Indian tribes;
complies with applicable treaties, compacts, and agreements; is in the federal interest; and complies with all federal and
state laws.
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maintenance, replacement, and rehabilitation costs.63 Section 1109 of P.L. 116-260 authorized
appropriations of $15.0 million annually from FY2022 through FY2026. Applicants must be
located in a Reclamation state or territory.64
In Section 40901 of the IIJA, Congress authorized $250.0 million for the design, study, and
construction of aquatic ecosystem restoration and protection projects in accordance with Section
1109 of Division FF of P.L. 116-260 (33 U.S.C. §2330c). Congress appropriated this funding over
five years (FY2022-FY2026) in Division J of the IIJA. The IIJA provided the first appropriations
for the Section 1109 authority.
Allocations/Implementation
Reclamation allocated $45.0 million in IIJA funds for Aquatic Ecosystem Restoration projects in
FY2023 (Table 1), thereby initiating the first application cycle. It allocated an additional $65.0
million for these projects in FY2024 and plans to allocate $66.3 million in FY2025.65 Congress
also provided the program with $100,000 in annual discretionary funding in FY2022, $5.0 million
in FY2023, and $6.5 million in FY2024.66 Through its solicitation, Reclamation has specified that
applicants can request study and design grants from $500,000 to $2.0 million and construction
project grants from $3.0 million to $20.0 million.67 As of the date of this report, Reclamation has
not reported on grant recipients and allocations for the first application cycle.
Colorado River Drought Contingency Plans
As part of its authorized federal role and the large number of federally managed projects in the
Colorado River Basin, the federal government has led multiple efforts attempting to improve the
basin’s water supply outlook. In 2019 Reclamation and the basin states, as well as Congress (in
the Colorado River Drought Contingency Plan Authorization Act; P.L. 116-14), approved the
drought contingency plans (DCPs) for the Upper and Lower Colorado River Basins. Among other
provisions, the DCPs required reductions beyond previous curtailment plans based on Lake Mead
storage levels, committed Reclamation to additional water conservation efforts, and put in place
plans to coordinate Upper Basin operations to enhance Lake Powell storage levels and
hydropower generation.68
One of the primary federal contributions to the DCPs approved by Congress in P.L. 116-14 was
additional grant support for voluntary conservation projects in the Colorado River Basin whose

63 Reclamation states that this cost sharing requirement is not applicable to American Samoa, Guam, the Northern
Mariana Islands, or the Virgin Islands. Bureau of Reclamation, “WaterSMART, Aquatic Ecosystem Restoration
Program,” https://www.usbr.gov/watersmart/aquatic/index.html.
64 Unlike WaterSMART grants, projects in Alaska, Hawaii, and Puerto Rico are not eligible.
65 Unlike the previous two sections, the Aquatic Ecosystem Restoration Program is separate from Environmental Water
Resources Projects WaterSMART grants. Bureau of Reclamation, Bipartisan Infrastructure Law (BIL) Annual Spend
Plan Update, FY2024 Submission, https://www.usbr.gov/bil/2022-spendplan.html.
66 Bureau of Reclamation, FY2024 Bureau of Reclamation Budget Justifications, 2023, p. W&RR-6,
https://www.usbr.gov/budget/.
67 Bureau of Reclamation, “WaterSMART, Aquatic Ecosystem Restoration Program,” https://www.usbr.gov/
watersmart/aquatic/index.html.
68 Reclamation and the basin states approved another set of similar, but more stringent, reductions in 2023 (i.e., after
the IIJA was enacted). For more information about drought and the Colorado River, see CRS Report R45546,
Management of the Colorado River: Water Allocations, Drought, and the Federal Role, by Charles V. Stern and
Pervaze A. Sheikh.
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water savings are dedicated to basin-wide system water.69 Congress originally authorized federal
participation in these efforts in 2015 (Consolidated and Further Continuing Appropriations Act,
2015; P.L. 113-235, Division D). As of September 2019, Reclamation estimated the Lower Basin
program had conserved 175,347 AF of system water, at an average cost of $170.14 per AF.70 Both
the Upper and the Lower Basin DCPs included provisions to expand these efforts.
In Section 40901 of the IIJA, Congress authorized $300 million for implementation of the 2019
DCPs. Congress appropriated this funding over five years (FY2022-FY2026) in Division J of the
act. The only additional stipulations for this funding under the IIJA are that $50 million must be
made available for efforts associated with the Upper Basin DCP.
DCP signees aim to conserve an overall amount of water in the Colorado River system using
federal seed funding, but there is no comprehensive estimate of the potential water savings
(including likely costs per AF) associated with future DCP-related grant agreements for system
conservation and other efforts. Apart from IIJA funding for the DCPs, in August 2022 Congress
approved another $4 billion for general drought mitigation in Reclamation river basins (with a
focus on the Colorado River Basin) in P.L. 117-169, popularly known as the Inflation Reduction
Act (IRA).71
Allocations/Implementation
For FY2022-FY2025, Reclamation allocated funding for both Lower and Upper Colorado River
DCP activities, as authorized in the IIJA (Table 6). Reclamation announced project-specific
allocation of some of its FY2022 and FY2023 Lower Basin DCP funds in an addendum to the
FY2023 spend plan, including $82.2 million for the Gila River Indian Community Reclaimed
Water Pipeline. The same addendum announced $8.7 million in funding for “limited-duration
data-gathering and analysis program needs” in the Upper Basin.72
Table 6. Infrastructure Investment and Jobs Act (IIJA) Colorado River Drought
Contingency Plan (DCP) Allocations
IIJA

Appropriations
FY2022
FY2023
FY2024
FY2025
Lower Basin Colorado River
$250.0
$50.0
$25.0
$25.0
$71.3
DCP
Upper Basin Colorado River
$50.0
—
$8.7
$29.8
$5.0
DCP
Total
$300.0
$50.0
$33.7
$54.8
$76.3
Source: Bureau of Reclamation, Bipartisan Infrastructure Law Annual Spend Plans for FY2022-FY2025,
https://www.usbr.gov/bil/2022-spendplan.html.

69 System water refers to water that is provided to increase water supplies as a whole, without being directed toward
additional consumptive use for specific contractors or water users.
70 Lower Colorado Region, “Pilot System Conservation Program,” https://www.usbr.gov/lc/region/programs/
PilotSysConsProg/pilotsystem.html.
71 For more information, see CRS In Focus IF12437, Bureau of Reclamation Funding in the Inflation Reduction Act
(P.L. 117-169), by Charles V. Stern and Anna E. Normand.
72 Bureau of Reclamation, Implementation of the Bipartisan Infrastructure Law, Addendum-WaterSMART – WEEG,
Drought Contingency Plan for LC & UC, Small Storage FY2023, and Water Desal Spend Plan, May 2, 2023,
https://www.usbr.gov/bil/docs/spendplan-2023/Reclamation-BIL-Spend-Plan-Addendum-05-02-2023.pdf.
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Colorado River Endangered Species Activities
As part of Reclamation’s role in Colorado River Basin water management, Reclamation and its
partners operate several programs that fund activities to protect and restore fish species in the
Colorado River and its tributaries. Some of these programs provide the federal and nonfederal
project compliance with the ESA. These programs include the following:
• The Upper Colorado and the San Juan River Basins Endangered Fish
Recovery Programs (Fish Programs). The Fish Programs were established in
1988 and 1992, respectively, and were formally authorized by Congress in P.L.
106-392. The programs provide compliance with the ESA and allow federal and
nonfederal water and power projects in the Upper Basin to operate without
violating ESA.
• The Lower Colorado River Multispecies Conservation Program (MSCP).
The MSCP is a 50-year, multi-stakeholder initiative to maintain ESA compliance
and conserve 27 special status species (including 8 species listed under ESA)
along the Lower Colorado River, while maintaining water and power supplies for
users. DOI formally established the program in 2005, and Congress authorized it
under Subtitle E of Title IX of P.L. 111-11.
• The Glen Canyon Dam Adaptive Management Program (AMP). The AMP
was established in 1997 in response to a directive from Congress under the Grand
Canyon Protection Act of 1992 (P.L. 102-575).73 Among other aims, the AMP
attempts to integrate dam operations, downstream resource protection and
management, and monitoring and research in the Lower Colorado River.
Pursuant to their authorizing legislation, for more than two decades, the Fish Programs and the
AMP were funded by Upper Basin hydropower revenues transferred from the Department of
Energy’s Western Area Power Administration.74 However, due to a revised statutory
interpretation, additional appropriations from Congress have been required to make these funds
available since FY2019. The MSCP typically is funded with discretionary appropriations for
Reclamation’s Lower Colorado River Operations program.
In Section 40901 of the IIJA, Congress authorized $50 million for the Fish Programs, the AMP,
and the MSCP. Congress appropriated this funding over five years (FY2022-FY2026) in Division
J of the act. Congress did not specify how the funding is to be allocated among individual
programs. The additional funding for the Fish Programs and the AMP in the IIJA supplement
potential funding shortfalls faced by these programs. Although all of these authorities generally
benefit environmental activities in the Colorado River Basin, their specific benefits are
concentrated in different parts of the basin and affect different basin interests to varying extents.

73 In P.L. 102-575, Congress provided that Reclamation operate Glen Canyon Dam “in such a manner as to protect,
mitigate adverse impacts to, and improve the values for which Grand Canyon National Park and Glen Canyon National
Recreation Area were established.”
74 Normally, these funds would be slated for repayment of Colorado River Storage Project costs to the Department of
the Treasury.
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Allocations/Implementation
Reclamation announced funding allocations of $8.5 million for these programs in FY2022, $20
million in FY2023, $20 million in FY2024,75 and no funding in FY2025 (Table 1). The FY2022
funding went entirely to one project under the MSCP.76 Reclamation announced some FY2023
programmatic funding, including funding for Upper Colorado Endangered Fish Programs in
Colorado ($6.4 million) and Utah ($2.8 million), as well as the San Juan River Basin Recovery
Implementation Program ($3.0 million) and the MSCP in both California and Arizona ($6.0
million).77
Indian Water Rights Settlement Completion Fund
Indian water rights settlements stem from Indian reserved water rights, first recognized by the
Supreme Court in Winters v. United States in 1908.78 Under the Winters doctrine, when Congress
reserves land (i.e., for an Indian reservation), it implicitly reserves water sufficient to fulfill the
purpose of the reservation.79 Although Winters effectively provided many Indian tribes with
senior water rights, the quantification of these rights is in many cases undetermined. In lieu of
litigation to quantify Indian water rights, negotiated settlements have been the preferred means
among many (including the federal government) for resolving Indian water rights disputes.80
These settlements can be attractive because they include terms and conditions that resolve long-
standing uncertainty and end conflict by avoiding litigation.
Many Indian water rights settlements require congressional approval and/or federal funding for
implementation. As of enactment of the IIJA in late 2021, 38 Indian water rights settlements had
been federally approved (35 of those approved by Congress), with total estimated costs in excess
of $8 billion.81 Congress often supports these settlements with discretionary funds in annual
appropriations bills and has appropriated mandatory funding for certain settlements.82 Congress
typically specifies funding agencies and vehicles in authorizing legislation, with most settlements
funded by Reclamation or the Bureau of Indian Affairs (or both). A prominent source of
mandatory funding for these settlements in recent years has been the Reclamation Water
Settlements Fund; pursuant to P.L. 111-11, Reclamation is allocating $1.2 billion over 10 years
($120 million per year) in mandatory funds to qualifying tribal settlements.

75 For FY2024, the funding allocation was increased to $20 million via transfers from the Desalination allocation from
the prior year. See Bureau of Reclamation, Annual Spend Plan Update, 2025 OMB Submission, at
https://www.usbr.gov/bil/docs/spendplan-2025/FY-2025-Reclamation-BIL-Spend-Plan.pdf.
76 Bureau of Reclamation, Implementation of the Bipartisan Infrastructure Law, Addendum-August to January 14,
2022, Initial Spend Plan, August 31, 2022, https://www.usbr.gov/bil/docs/spendplan-2022/Reclamation-BIL-Spend-
Plan-August-Addendum-8-31-2022.pdf.
77 Bureau of Reclamation, Implementation of the Bipartisan Infrastructure Law, Addendum- ESA & WaterSMART –
to FY2023 Initial Spend Plan, and to FY2022 and FY2023 Spend Plans, December 2022, https://www.usbr.gov/bil/
docs/spendplan-2023/Reclamation-BIL-Spend-Plan-Addendum-ESA%20WaterSMART12-27-2022.pdf.
78 Winters v. United States, 207 U.S. 564, 575-77 (1908).
79 Some tribes also have time immemorial rights to water resources based on tribal water uses that preceded the
establishment of reservations. These rights are commonly referred to as aboriginal water rights.
80 For more information on Indian water rights settlements in general, see CRS Report R44148, Indian Water Rights
Settlements, by Charles V. Stern.
81 CRS estimate as of December 2021.
82 This includes mandatory funding of $120 million per year, from FY2020 to FY2029, which was appropriated by
Congress in 2009 under Title X of P.L. 111-11.
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In Division G, Section 70101, of the IIJA, Congress established an Indian Water Rights
Settlement Completion Fund in the Treasury of the United States and provided that, on the date of
the enactment of the IIJA, the Secretary of the Treasury shall deposit $2.5 billion into this fund, to
remain available until expended. Subsection 70101(c) of the IIJA authorized the Secretary of the
Interior to use these funds “for transfers to funds or accounts authorized to receive discretionary
appropriations, or to satisfy other obligations identified by the Secretary of the Interior, under an
Indian water settlement approved and authorized by an Act of Congress before the date of
enactment of this Act.” This provision appears to allow the Secretary of the Interior to transfer
resources from the new fund to any enacted Indian water rights settlement, based on secretarial
determinations, as long as the settlement was enacted prior to November 5, 2021.
The IIJA funding for Indian water rights settlements offsets a major area of Reclamation
budgetary needs that is not addressed elsewhere in the bill. However, Congress provided no
specific criteria for the Secretary of the Interior to use in allocating funds and did not designate a
timeframe for allocations.
Allocation/Implementation
There is no formal reporting process for Indian Water Rights Settlement Completion Fund
projects. The Department of the Interior has announced Indian Water Rights Settlement
Completion Fund allocations for individual settlements, in amounts combined together with the
Reclamation Water Settlement Fund allocations. For FY2023, the department reported that it
allocated $460 million from the Indian Water Rights Completion Fund for 14 settlements ($580
million from both funds combined).83 For FY2024, the department allocated $207 million for 11
settlements ($327 million from both funds combined).84
Authorization-Only Provisions
Congress included several authorization-only provisions (i.e., authorizations without a
corresponding appropriation) in the IIJA. These related to rehabilitation of the pumping plant at
Grand Couleee Dam (Section 40113), pumped storage hydropower (Sections 40335 and 40336),
and groundwater recharge (Section 40910). Congress also included one section (Section 40909)
clarifying the use of previously appropriated coronavirus relief funding for Reclamation project
cost shares. These provisions are discussed below.
Pumped Storage Hydropower
Reclamation and the Federal Energy Regulatory Commission (FERC) both have authorities to
permit nonfederal hydropower development at Reclamation facilities. Reclamation permits this
development via Lease of Power Privilege for small conduit and hydropower-authorized dams at
its facilities, while FERC is charged with permitting hydropower at Reclamation dams that are
not explicitly authorized for hydropower. As with the division of responsibility for Reclamation
dams, pumped storage hydropower projects involving Reclamation reservoirs are subject to either

83 Department of the Interior, “Bipartisan Infrastructure Law Supports $580 Million Investment to Fulfill Indian Water
Rights Settlements,” press release, February 2, 2023, https://www.doi.gov/pressreleases/bipartisan-infrastructure-law-
supports-580-million-investment-fulfill-indian-water.
84 Department of the Interior, “President Biden’s Investing in America Agenda Supports $327 Million Investment to
Fulfill Indian Water Rights Settlements,” press release, October 26, 2023, https://www.doi.gov/pressreleases/president-
bidens-investing-america-agenda-supports-327-million-investment-fulfill.
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the FERC permitting process or Reclamation’s Lease of Power Privilege process, based on
whether the Reclamation facility was originally authorized for hydropower development.
Title V, Sections 40335 and 40336, of the IIJA both deal with Reclamation and FERC’s
authorities for pumped storage hydropower development. Section 40335 clarifies that
Reclamation has the sole authority to develop pumped storage hydropower at facilities involving
only Reclamation reservoirs (i.e., regardless of whether these facilities were authorized for
hydropower). Section 40336 lays out specific requirements that Reclamation must adhere to
before it can permit a specific proposed Lease of Power Privilege project—the Banks Lake
Pumped Storage Project at Roosevelt Lake and Banks Lake in Washington. (Because of Section
40335, this project would now be under Reclamation’s exclusive jurisdiction). To proceed with
this project, the lessee and the Secretary must enter into an agreement with and make certain
accommodations for the Confederated Tribes of the Colville Reservation and the Spokane Tribes.
Both tribal reservations border Lake Roosevelt and possess water rights for waters involved in
this development.
In Section 40113 of the IIJA, Congress included a project-specific pumped storage hydropower
funding authorization for Reclamation. Congress authorized $100 million in nonreimbursable
budget authority for Reclamation to rehabilitate the John W. Keys Pump Generating Plant, a
pumped storage plant that originally came online in 1951 at Grand Coulee Dam in Washington.
Apart from this specific authorization under the IIJA, these rehabilitation costs typically would be
reimbursed by project power users.
Groundwater Recharge Authority
Groundwater storage, aquifer recharge, and similar projects are increasingly viewed as an option
in lieu of (or in addition to) traditional water development projects or as a means to reduce
groundwater pumping. Reclamation has some authorities to facilitate groundwater storage
projects and aquifer recharge, storage, and recovery efforts, including authority to provide
financial support for groundwater storage projects under Section 4007 of the WIIN Act.85 In
Section 40910 of the IIJA, Congress authorized the Secretary of the Interior to provide technical
or financial assistance for, participate in, and enter into agreements for—including agreements
with irrigation entities—groundwater recharge, aquifer storage and recovery projects, and water
source substitution for aquifer protection projects.86 For a project to receive construction
assistance under this authority, it must meet the same criteria as the WIIN Act project
requirements under Section 40902(a)(2)(C)(ii) of the IIJA.87 The section stipulates that to receive
funding, the Secretary of the Interior must first find that (1) a project is technically and financially
feasible, (2) sufficient nonfederal funding is available for the nonfederal cost share, (3) a project
is in the public interest, and (4) the project is recommended for construction. Congress provided
no appropriation for this new authority in the IIJA.

85 For example, Division FF, Title XI of P.L. 116-260 included new flexibilities for Reclamation to support aquifer
storage and recharge efforts with project facilities and water. Reclamation also has authority under Section 4007 of the
WIIN Act to provide financial support for both surface water and groundwater storage projects. For additional
information, see CRS Report R45259, The Federal Role in Groundwater Supply, by Peter Folger et al.
86 P.L. 117-58, §40910(a).
87 P.L. 117-58, §40910(c) and (d).
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Nonfederal Cost Sharing for Reclamation Projects
Nonfederal Reclamation project sponsors and other Reclamation project partners are required to
share the costs of many Reclamation projects and grants. For example, WIIN Act water storage
project sponsors must pay for 25%-50% of the total costs for these projects, depending on project
type. In Section 40909 of the IIJA, Congress provided that the Coronavirus State Fiscal Recovery
Fund and Coronavirus Local Fiscal Recovery Fund (i.e., holding funds previously appropriated
for Coronavirus Disease 2019 response/recovery under the American Rescue Plan Act of 2021
[P.L. 117-2]) may be used for Reclamation project cost-share requirements.88 Specifically,
Congress directed that the Coronavirus State Fiscal Recovery Fund may be used for “matching
requirements” for authorized Reclamation water projects and that both funds may be used for
“matching, maintenance of effort, or other nonfederal expenditure requirement[s].”
The enactment of these provisions may allow Reclamation cost-sharing partners to use federal
funds for some or all of their portion of costs for water resources projects receiving assistance
from the IIJA, depending on how the Department of the Treasury (which oversees the funds)
interprets the provisions.89 Congress may be interested in whether guidance on these provisions is
sufficient to achieve congressional intent, in particular which specific projects and programs
qualify for this support and the extent to which the use of these funds facilitates expedited project
implementation.

Author Information

Charles V. Stern
Anna E. Normand
Specialist in Natural Resources Policy
Specialist in Natural Resources Policy

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material.

88 For more on these funds, see CRS Insight IN11665, The American Rescue Plan Act, Section 9901—The Coronavirus
State Fiscal Recovery Fund, by Grant A. Driessen; and CRS Insight IN11664, The American Rescue Plan Act, Section
9901—The Coronavirus Local Fiscal Recovery Fund, by Grant A. Driessen.
89 Department of the Treasury, “Coronavirus State and Local Fiscal Recovery Funds,” 87 Federal Register 4416,
January 27, 2022.
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