Bureau of Reclamation Support for Water Storage Projects
Bureau of Reclamation Support for Water
April 1, 2024
Storage Projects
Charles V. Stern
The Bureau of Reclamation (Reclamation, part of the Department of the Interior) has for more
Specialist in Natural
than a century been involved in the construction and operations of water storage projects in the
Resources Policy
17 arid and semiarid western states. In the past, Congress generally provided full, up-front
funding for the construction of these projects through discretionary and supplemental
appropriations to Reclamation, and project beneficiaries (e.g., irrigators, municipal water
suppliers, and hydropower contractors) generally repaid their portion of project costs over a 40-
to 50-year term.
Since the 1970s, Reclamation has built few new projects under its traditional authorities, but in recent years, Congress has
added new authorities for Reclamation to support water storage construction. In Section 4007 of the Water Infrastructure
Improvements for the Nation Act (WIIN Act; P.L. 114-322), Congress enacted a new authority for Reclamation to fund the
study and/or construction of new surface and groundwater storage projects. Under Section 4007, funding for water storage
projects may be used for two primary project types:
• Federally owned storage projects are surface water or groundwater storage projects to which the United
States holds title and that were authorized for construction pursuant to reclamation law and regulations. The
federal government may fund up to 50% of the cost for these projects.
• State-led storage projects are surface water or groundwater storage projects to be constructed, operated,
and maintained by states or political subdivisions. The federal government may fund up to 25% of the costs
of these projects.
To receive study or construction funding under this authority, the Secretary of the Interior first, among other requirements,
recommends specific projects and funding levels to Congress, and Congress in turn decides whether to designate those
projects by name in an enacted appropriations act. From 2018 to 2020, 13 projects received funding under the WIIN Act.
Since January 2021, only projects that were recommended for construction prior to that date have been eligible for ongoing
Administration construction funding allocations under Section 4007. In the Infrastructure Investment and Jobs Act (IIJA, also
referred to as the Bipartisan Infrastructure Law; P.L. 117-58), Congress expanded these authorities and provided Reclamation
with additional funding of $1.05 billion for these projects.
Congress also enacted new authorities in the IIJA for Reclamation to provide grants that support the construction of “small”
(i.e., less than 30,000 acre-feet), nonfederally owned surface and groundwater storage projects. Reclamation may also support
small water storage and conveyance projects that increase drought resiliency using grant authorities enacted in 2010 under
P.L. 111-11. These drought resiliency projects are funded through Reclamation’s Drought Response Program. While the two
programs target similar project types, their eligible recipients, maximum project costs, and federal cost share requirements
differ.
Issues for Congress related to Reclamation water storage projects may include whether to extend and/or amend expiring
authorities, such as those enacted under the WIIN Act and/or IIJA, or whether to enact new authorities, as well as whether to
increase regular and/or supplemental funding for these projects. Congress may consider what levels of funding, if any, are
adequate for these projects and what financing mechanisms to employ (e.g., appropriate cost shares, repayment). In the 118th
Congress, H.R. 215 would reauthorize the WIIN Act’s storage authorities through the end of FY2028, while S. 2162 would
make significant changes to these authorities.
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Contents
Introduction ..................................................................................................................................... 1
Section 4007 of the WIIN Act ......................................................................................................... 1
IIJA Authorities and Funding for Water Storage Projects ............................................................... 3
Funding and Recent Project Allocations ................................................................................... 3
Other Water Storage Project Authorities ......................................................................................... 6
Small Water Storage Project Grants .......................................................................................... 6
Drought Resiliency Projects ...................................................................................................... 7
Geographically Specific Authorities ......................................................................................... 8
Issues for Congress .......................................................................................................................... 8
Section 4007 Reauthorization ................................................................................................... 8
Authorities for Smaller Water Storage Projects ........................................................................ 9
Funding and Implementation .................................................................................................... 9
Figures
Figure 1. Process for Section 4007 Water Storage Project Funding Allocations ............................. 2
Tables
Table 1. Reclamation Water Storage Project Allocations, 2018-2024 ............................................. 5
Table 2. Reclamation Small Water Storage Project Grant Awards in FY2023 ................................ 7
Contacts
Author Information .......................................................................................................................... 9
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Bureau of Reclamation Support for Water Storage Projects
Introduction1
Traditionally, the role of the Bureau of Reclamation (Reclamation, part of the Department of the
Interior) in water project development has been limited to geographically specific projects
authorized in federal statutes that comprise reclamation law (i.e., federal law that applies to
reclamation projects generally). For such projects, Congress generally provided full, up-front
funding for the construction costs of these projects through discretionary appropriations to
Reclamation. Project beneficiaries (e.g., irrigators, municipal water suppliers, and hydropower
contractors) generally then repaid their portion of reimbursable project construction or
development costs over a term of 40 to 50 years.
A number of events precipitated the gradual slowdown of Reclamation’s construction program
beginning in the 1970s, and the bureau has constructed few new Reclamation projects (most of
them smaller in scale) since then. Instead, Congress has authorized other forms of support for
water resources development, including rural water projects, grants to nonfederal entities for
water efficiency and conservation efforts, and projects associated with authorized Indian water
rights settlements.2
In recent years, Congress has added to the available authorities for Reclamation to construct or
support the construction of both large and small surface and groundwater storage projects.
Section 4007 of the Water Infrastructure Improvements for the Nation Act (WIIN Act; P.L. 114-
322) created a new authority for Reclamation to build new and/or augmented surface and
groundwater storage projects. The authority was subsequently funded in congressional
appropriations. In the Infrastructure Investment and Jobs Act (IIJA, also referred to as the
Bipartisan Infrastructure Law [BIL]; P.L. 117-58), Congress expanded these authorities and
provided Reclamation with additional funding for these projects. Congress has also enacted
several grant authorities for Reclamation that support the construction of small, nonfederal
surface and groundwater storage projects. These are funded through the bureau’s Small Water
Storage Project grant program, and drought resiliency projects are funded within the bureau’s
Drought Response Program.
Section 4007 of the WIIN Act
In 2016, Congress enacted the WIIN Act, Section 4007 of which created a new authority for
Reclamation to support surface and groundwater storage projects. At the time, the act authorized a
total of $335 million in discretionary appropriations for this purpose. Under Section 4007,
funding for water storage projects is available for two primary project types:
• Federally owned storage projects are surface water or groundwater storage
projects to which the United States holds title and that were authorized for
construction pursuant to reclamation law and regulations. The federal
government may fund up to 50% of the cost for these projects.
• State-led storage projects are surface water or groundwater storage projects to be
constructed, operated, and maintained by states or political subdivisions. The
federal government may fund up to 25% of the costs of these projects.
1 This report is an expanded version of a previous CRS product, IF10626, which has since been archived.
2 For more background on the Bureau of Reclamation’s history and authorities, see CRS Report R46303, Bureau of
Reclamation: History, Authorities, and Issues for Congress, by Charles V. Stern and Anna E. Normand.
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Funding allocated under the WIIN Act may be used for studies and construction. Before projects
can begin construction under Section 4007, several milestones must be met. To recommend a
project for construction, the Secretary of the Interior must find that the project is feasible (either
by authorizing a federal feasibility study or by approving a nonfederal study) and provides
benefits proportionate to the federal government’s cost share. In addition, project sponsors must
agree to pay their portion of project costs up front. Appropriations under Section 4007 are
available only after the Secretary transmits a list of recommended projects and funding levels to
Congress and Congress designates those projects by name in an enacted appropriations act
(Figure 1).
Figure 1. Process for Section 4007 Water Storage Project Funding Allocations
Source: Congressional Research Service.
In the WIIN Act, Congress stipulated that in order for projects to move forward with construction,
the Secretary must find them feasible by January 1, 2021.3 As a result, only a subset of studies
that were initially funded under this authority are currently eligible for construction funding.
Altogether, 8 of the 13 projects that received feasibility study funding between 2018 and 2020
under the WIIN Act’s authority were found feasible prior to the act’s January 1, 2021, deadline.
These projects continue to be eligible for ongoing construction funding. (These projects are
shown in boldface in Table 1.)
Section 4007 is notable for its contrast with traditional Reclamation financing. Instead of full, up-
front federal financing for new federal projects as has traditionally been provided, Section 4007
provides for 50% funding for federal-led projects and 25% funding for state-led projects.
Additionally, prior to enacting the WIIN Act, Congress had not authorized Reclamation to fund
state-led water storage projects.
The WIIN Act’s changes were also significant insofar as they allow water resources projects to
move forward with construction without direct involvement of relevant congressional authorizing
committees (i.e., the House Natural Resources Committee and the Senate Energy and Natural
Resources Committee). Although there is no statutory requirement for explicit approval of
Reclamation construction projects by these committees, in practice, these projects previously
have received approval from the authorizing committees for construction before obtaining
appropriations for this purpose. Section 4007 moved the onus of project approval to the
appropriators and increased the number of requirements that must be met during the
appropriations process. Although Section 4007 decreased traditional congressional involvement
in new project approval, Congress, through the appropriations committees, still has to approve
new projects before they can move forward. Additionally, although Section 4007 represents a new
authority for construction projects, only a limited pool of projects are eligible for this support
(i.e., projects approved before 2021), and Reclamation project authorization and finance
continues to be an option for construction of new projects.
3 P.L. 114-322, §4007(i).
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IIJA Authorities and Funding for Water Storage
Projects
In the IIJA (also referred to as the BIL; P.L. 117-58), Congress expanded the water storage
authority of the WIIN Act. In Section 40901 of the IIJA, Congress authorized a total of $1.05
billion for water storage projects through FY2026. 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:
• feasibility studies authorized by Congress by the date of the IIJA’s enactment,
• feasibility studies with funding approved under Section 4007 of the WIIN Act,
and
• the Verde Reservoirs Sediment Mitigation Project (AZ) and the Tualatin River
Basin Project (OR).
Similarly to the IIJA’s approach for feasibility studies, in Section 40902(a)(2) of the act, Congress
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 will be eligible for IIJA construction
funding if any of the following has occurred as of the date of the IIJA’s enactment:
• an act of Congress authorized construction funding;
• Congress approved construction funding under Section 4007 of the WIIN Act;4 or
• Congress approved feasibility study funding for a project, as detailed above,
provided that the Secretary of the Interior finds 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 by the Secretary of the Interior for construction.
Thus, Reclamation in effect possesses two construction authorities: a permanent authority to
construct (or support the construction of) the eight facilities that met the WIIN Act’s feasibility
deadline of January 1, 2021, and a time-limited authority to fund certain studies and construction
projects through FY2026 under the IIJA (of which WIIN Act projects are a subset).
Funding and Recent Project Allocations
Congress appropriated a total of $988 million for Section 4007 projects in annual Energy and
Water Development appropriations acts from FY2017 to FY2024. For its part, Reclamation has
transmitted seven lists of project recommendations for these funds that, after congressional
approval, released $815 million in prior-year appropriations to 13 projects: 10 in California, 2 in
Washington, and 1 in Idaho (Table 1).
Apart from regular appropriations under the WIIN Act, Congress appropriated water storage
funding over five years (FY2022-FY2026) in Division J of the IIJA.5 This funding is available
4 The projects with approved construction funding under Section 4007 of the Water Infrastructure Improvements for the
Nation Act (WIIN) Act include B.F. Sisk Dam Raise and Reservoir Expansion (CA); Boise River Basin Feasibility
Study (ID); Del Puerto Water District Feasibility Study (CA); Friant-Kern Canal Subsidence Challenges Project (CA);
Los Vaqueros Reservoir Phase 2 Expansion (CA); Shasta Dam and Reservoir Enlargement Project (CA); Sites
Reservoir Storage Project (CA); and Yakima River Basin Water Enhancement Project, Cle Elum Pool Raise (WA).
5 As noted above, unlike regular appropriations recommendations under the WIIN Act, Infrastructure Investment and
Jobs Act (IIJA) appropriations for storage are eligible for allocation and award without further action by Congress.
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without limitation as to fiscal years. To date, Reclamation has released project allocations for
water storage studies and construction projects funded under the IIJA in FY2022 and FY2023
(Table 1).6 These allocations have included funding for some of the same WIIN Act Section 4007
projects that were funded in annual discretionary appropriations (e.g., Sites Reservoir Storage
Project and Los Vaqueros Reservoir Phase 2 Expansion), as well as funding for Section 4007
studies that did not meet the 2021 feasibility deadline under the WIIN Act (e.g., Upper Yakima
System Storage Feasibility Study). At the same time, IIJA funding has also been allocated for
other, previously authorized water storage and conveyance projects, such as the Arkansas Valley
Conduit in Colorado. This project was authorized prior to the WIIN Act7 and received a total of
$160 million in IIJA funds in FY2022 and FY2023.
6 Reclamation has released total funding allocations for FY2024 and FY2025 but to date has not released project-
specific allocation addendums for these amounts.
7 The project was authorized in P.L. 87-590, as amended by P.L. 111-11.
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Table 1. Reclamation Water Storage Project Allocations, 2018-2024
($ in millions)
Allocations Based on Administration Recommendations for Regular Appropriations
IIJA Allocations
Project (State)
Jan. 2018
Feb. 2019
June 2020
Dec. 2020
Feb. 2021
Nov. 2022
July 2023
Oct. 2022
July 2023
Arkansas Valley Conduit (CO)
—
—
—
—
—
—
—
$60.0
$100.0
B.F. Sisk Dam Raise and Reservoir Expansion (CA)
—
—
—
—
$60.00
—
—
$25.00
$10.00
Boise River Basin Feasibility Study (ID)
$0.75
$1.75
$2.88
$10.00
—
—
—
—
—
Delta Mendota Canal Subsidence Correction (CA)
—
—
$3.00
—
—
—
—
—
—
Del Puerto Water District Feasibility Study (CA)
—
$1.50
$1.50
—
$15.00
—
—
—
—
Dry Redwater Regional Water System Feasibility Study (MT)
—
—
—
—
—
—
—
$3.0
—
Friant-Kern Canal Subsidence Challenges Project
$2.20
$2.35
$71.00
$135.00
—
—
—
—
—
(CA)
Los Vaqueros Reservoir Phase 2 Expansion (CA)
—
$2.16
$7.85
$4.10
$50.00
$18.00
—
$82.00
$10.00
Sacramento Regional Water Bank (CA)
—
—
$0.87
—
—
—
—
—
—
San Luis Low Point Improvement Project (CA)
—
—
$1.70
—
—
—
—
—
—
Shasta Dam and Reservoir Enlargement Project
$20.00
—a
—a
—a
—
—
—
—
—
(CA)
Sites Reservoir Storage Project (CA)
$4.35
$6.00
$4.00
$9.70
$80.00
$80.0
$205.60
$30.00
$30.0
Upper San Joaquin River Basin Storage Investigation (CA)
$1.50
—
—
—
—
—
—
—
—
Upper Yakima System Storage Feasibility Study (WA)
$2.50
—
—
—
—
—
—
—
$1.00
Verde Reservoirs Sediment Mitigation Project Feasibility
—
—
—
—
—
—
—
$5.0
—
Study (AZ)
Yakima River Basin Water Enhancement Project,
$2.00
$4.00
$1.00
$2.00
—
—
—
$5.00
$1.00
Cle Elum Pool Raise (WA)
Total
$33.30
$17.76
$93.80
$160.80
$205.00
$98.00
$205.60
$142.00
$152.00
Sources: Bureau of Reclamation Reports to Congress in January 2018, February 2019, June 2020, December 2020, July 2021, and July 2023; enacted appropriations legislation for FY2018
(P.L. 115-141), FY2020 (P.L. 116-94), FY2021 (P.L. 116-260), and FY2022 (P.L. 117-43); and FY2022 and FY2023 Reclamation Work Plan addendums for the Infrastructure Investment and Jobs
Act (IIJA; P.L. 117-58), available at https://www.usbr.gov/bil/2022-spendplan.html.
Notes: Projects in boldface were recommended for construction under Section 4007 of the Water Infrastructure Improvements for the Nation Act prior to the legislation’s construction
eligibility deadline of January 1, 2021, and are thus available for ongoing construction funding. Pursuant to the IIJA, project allocations for construction under that act are not required to be
approved by name in enacted legislation.
a. Reclamation proposed $172 million in allocations for this project in 2019 and 2020. Congress did not agree to these recommendations.
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Other Water Storage Project Authorities
Congress has also authorized Reclamation to fund smaller, nonfederally owned water storage
projects of a more limited scale. Some of these authorities are discussed below.
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 (see previous section, “IIJA
Authorities and Funding for Water Storage Projects”). Congress appropriated this funding over
five years (FY2022-FY2026) in Division J of the act.
Congress defined eligible projects under this authority as those in the 17 western reclamation
states, Hawaii, and Alaska (1) with water storage capacity of 200-30,000 acre-feet (AF) or (2) that
convey water directly or indirectly from surface or groundwater storage. Federal costs under this
section are to be either (1) no more than the lesser of 25% of the project’s total costs or (2) $30
million.8 There is no maximum project cost under this authority. Eligible applicants for the
authority include nonfederal entities such as state, regional, or local authorities; Indian tribes or
tribal organizations; and entities such as a water district or water association with water delivery
authority. To qualify for funding, the project sponsor’s feasibility study must be approved by
Reclamation.9
Reclamation allocated $20 million of its IIJA appropriations in FY2023 for this newly created
program (the Small Surface Water Storage and Groundwater Storage Program) pursuant to
Section 40903 of the IIJA. Reclamation awarded the first round of funding under this authority
for four projects in FY2023, shown in Table 2. The capacity of these projects ranged from 1,485
AF to 28,000 AF.
8 P.L. 117-58, §40903(c).
9 For more information, see Bureau of Reclamation, Reclamation Manual: Small Surface Water and Groundwater
Storage Projects Feasibility Study, CMP TRMR-127, January 13, 2022, https://www.usbr.gov/recman/
temporary_releases/cmptrmr-127.pdf.
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Table 2. Reclamation Small Water Storage Project Grant Awards in FY2023
Storage
Capacity
Funding
Project Name
Sponsor (State)
(Acre-Feet)
($ in millions)
Upstream Operational Reservoir Storage
Imperial Irrigation
2,100
$9.47
Project
District (CA)
Kern Fan Groundwater Storage Project:
Groundwater Banking
28,000
$4.74
Phase 1
Joint Powers Authority
(CA)
Ash Creek Project: Toquer Reservoir
Washington County
3,638
$4.74
Water District (UT)
Orestimba Creek Groundwater Recharge
Del Puerto Water
1,485
$1.04
and Recovery Expansion Project
District (CA)
Source: Bureau of Reclamation, Implementation of the Bipartisan Infrastructure Law, Addendum-WaterSMART
– WEEG, Drought Contingency Plan for LC & UC, Small Storage FY 2023, 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.
Drought Resiliency Projects
Reclamation’s Drought Response Program, a component of the Bureau’s WaterSMART Program,
has also been used to support construction of water storage projects of a limited scale, including
nonfederal water storage projects and groundwater recharge and recovery projects that increase
drought resiliency in drought-prone areas. These drought resiliency projects are authorized under
the same authority as Reclamation’s WaterSMART grant program.10 Drought resiliency projects
may fund up to 50% of a project’s costs, with maximum federal funding of $5 million per project
and maximum total project costs of $10 million. However, the federal cost share for these projects
can be up to 95%-100% for certain disadvantaged communities if funding is provided through the
Inflation Reduction Act (IRA; P.L. 117-169).11 There are no other requirements pertaining to
project size and scope under this authority.
Eligible recipients of drought resiliency project funding are similar to those eligible for funding
under the Small Water Storage Program but also include the U.S. Virgin Islands, Puerto Rico, and
Guam, as well as nonprofit conservation groups who partner with an otherwise eligible entity.
Previously, Reclamation has funded drought resiliency projects using both annual discretionary
10 Drought Response Program (DRP) grants are generally authorized under two separate authorities. Congress
authorized emergency response and planning in the Reclamation States Drought Relief Act of 1991 (P.L. 102-250). In
Section 9504 of P.L. 111-11, as amended (42 U.S.C. §10364), Congress enacted authority for the WaterSMART
program, which included the authority to fund projects to “plan for or address the impacts of drought.” Reclamation
uses the latter authority to fund drought resiliency projects, which are solicited along with other such drought projects
and are defined by Reclamation as on-the-ground projects that improve water management flexibility during periods of
drought. For more information, see Bureau of Reclamation, “Drought Response Program,” https://www.usbr.gov/
drought/index.html.
11 Specifically, domestic water supply projects for tribes or disadvantaged communities that apply for funding under the
Inflation Reduction Act may receive a 95% federal cost share, which may itself be waived (resulting in a 100% federal
cost share). See Bureau of Reclamation, WaterSMART Planning and Project Design Grants, & Drought Resiliency
Projects, Webinar, August 24, 2023, p. 26, https://www.usbr.gov/drought/docs/2024/
FY24_Planning_DRP_Webinar.pdf.
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appropriations provided to the Drought Response Program, as well as by using a portion of
WaterSMART grant funding appropriated under the IIJA.12
Geographically Specific Authorities
Reclamation has other authorities that it has used to support water storage and related works. For
instance, Congress has enacted targeted authorities for Reclamation to construct some
geographically specific projects, such as the Arkansas Valley Conduit in Colorado (see previous
section, “IIJA Authorities and Funding for Water Storage Projects”). Similarly, Congress has also
authorized Reclamation to construct individual rural water projects, which are typically municipal
projects to supply water to rural and/or tribal areas.13 Reclamation has other project-specific
authorities that it is also using to construct water storage and conveyance projects, such as those
pertaining to individual Indian water rights settlements.14 Detailed discussion of these other
authorities is beyond the scope of this report.
Issues for Congress
Section 4007 Reauthorization
Congress has typically engaged with the Administration’s recommendations for Section 4007
water storage construction projects in appropriations action. As previously noted, appropriations
under the authority of Section 4007 of the WIIN Act may not be allocated to individual projects
until they are approved by name in enacted legislation. While Congress has approved most prior
WIIN Act project allocation recommendations, the 116th Congress did not approve several
recommended allocations for one project (the Shasta Dam and Reservoir Enlargement Project)
during the Trump Administration; this effectively blocked its construction. Since 2021,
Reclamation has continued to recommend funding allocations for construction projects that met
the WIIN Act’s feasibility determination deadline of January 1, 2021.
Some Members of Congress have proposed reauthorization and/or amendment of the Section
4007 authority. In the 118th Congress, H.R. 215 would reauthorize the WIIN Act’s Section 4007
storage authorities through the end of FY2028. It would also make the Shasta Dam and Reservoir
Enlargement project eligible for unallocated Section 4007 funding.15 Another bill, S. 2162, would
also reauthorize Section 4007 (including the authorization of $750 million through FY2029) but
would make major changes to the authority. Among other things, it would make certain “public
benefits” for these projects nonreimbursable16 and would add a new project category for “natural
12 For example, in FY2023, Reclamation announced that $84.9 million in IIJA WaterSMART grant funding would be
used for 36 drought resiliency projects across 10 western states. See Bureau of Reclamation, Implementation of the
Bipartisan Infrastructure Law Addendum-ESA & WaterSMART to FY 2023 Initial Spend Plan, and to FY 2022 and FY
2023 Spend Plans, December 2022, https://www.usbr.gov/bil/docs/spendplan-2023/Reclamation-BIL-Spend-Plan-
Addendum-ESA%20WaterSMART12-27-2022.pdf. Unlike for WaterSMART, Congress did not appropriate IIJA
funding for the DRP.
13 For more information on Reclamation’s rural water projects, see CRS Report R46308, Bureau of Reclamation Rural
Water Projects, by Anna E. Normand.
14 For more information, see CRS Report R44148, Indian Water Rights Settlements, by Charles V. Stern.
15 H.R. 215, §§304-305. As noted above in Table 1, $172 million in funding was recommended for this project in 2019
and 2020, but Congress did not approve this funding in enacted legislation.
16 The bill would define “public benefits” to include not only those benefits currently included under reclamation law
but also drinking water benefits for a disadvantaged community, an emergency drinking water supply used in response
to a disaster declaration by a governor, and energy savings benefits. See S. 2162, §2(10).
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water retention and release projects.” It would also cap federal support for nonfederal projects
under the authority at $250 million and would create a formal reporting process for
recommending individual projects to Congress for construction authorization.17 In the future,
Congress may continue to weigh in on recommended storage projects under the Section 4007
authority through the appropriations process or to alter the current process with required annual
reporting or other mechanisms that involve the authorization committees in these decisions.
Authorities for Smaller Water Storage Projects
Apart from Section 4007 authorities for larger projects, Congress may also consider the status of
the temporary (FY2022-FY2026) authority and funding for the Small Water Storage Project grant
program authorized in the IIJA and whether to extend this authority beyond the time horizon
currently authorized. It may also consider the status and mechanism for supporting drought
resiliency projects (technically authorized under the Bureau’s WaterSMART authorities)18 and the
status of temporary cost share authorities under the IRA. Demand for both programs, and
reconciling differences between the authorities (e.g., eligible entities, potential for cost share
waivers, project caps), could be a driver for future legislative interest in one or both programs.
Funding and Implementation
Funding for Reclamation to study and construct water storage projects has increased significantly
over the past decade. As construction on surface and groundwater storage projects continues
across the West and recent influxes of supplemental funding (i.e., IIJA funding) are expended,
stakeholders may ask Congress to enact new funding to complete these projects and start others.
How and whether to make this funding available, and what (if any) changes and other
requirements (e.g., reporting) should accompany this funding, are likely to be of interest to
Congress.
Author Information
Charles V. Stern
Specialist in Natural Resources Policy
17 S. 2162, §102.
18 For more information, see Bureau of Reclamation, Reclamation Manual: Small Surface Water and Groundwater
Storage Projects Feasibility Study, CMP TRMR-127, January 13, 2022, https://www.usbr.gov/recman/
temporary_releases/cmptrmr-127.pdf.
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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
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Congressional Research Service
R47987 · VERSION 1 · NEW
10
April 1, 2024
Storage Projects
Charles V. Stern
The Bureau of Reclamation (Reclamation, part of the Department of the Interior) has for more
Specialist in Natural
than a century been involved in the construction and operations of water storage projects in the
Resources Policy
17 arid and semiarid western states. In the past, Congress generally provided full, up-front
funding for the construction of these projects through discretionary and supplemental
appropriations to Reclamation, and project beneficiaries (e.g., irrigators, municipal water
suppliers, and hydropower contractors) generally repaid their portion of project costs over a 40-
to 50-year term.
Since the 1970s, Reclamation has built few new projects under its traditional authorities, but in recent years, Congress has
added new authorities for Reclamation to support water storage construction. In Section 4007 of the Water Infrastructure
Improvements for the Nation Act (WIIN Act; P.L. 114-322), Congress enacted a new authority for Reclamation to fund the
study and/or construction of new surface and groundwater storage projects. Under Section 4007, funding for water storage
projects may be used for two primary project types:
• Federally owned storage projects are surface water or groundwater storage projects to which the United
States holds title and that were authorized for construction pursuant to reclamation law and regulations. The
federal government may fund up to 50% of the cost for these projects.
• State-led storage projects are surface water or groundwater storage projects to be constructed, operated,
and maintained by states or political subdivisions. The federal government may fund up to 25% of the costs
of these projects.
To receive study or construction funding under this authority, the Secretary of the Interior first, among other requirements,
recommends specific projects and funding levels to Congress, and Congress in turn decides whether to designate those
projects by name in an enacted appropriations act. From 2018 to 2020, 13 projects received funding under the WIIN Act.
Since January 2021, only projects that were recommended for construction prior to that date have been eligible for ongoing
Administration construction funding allocations under Section 4007. In the Infrastructure Investment and Jobs Act (IIJA, also
referred to as the Bipartisan Infrastructure Law; P.L. 117-58), Congress expanded these authorities and provided Reclamation
with additional funding of $1.05 billion for these projects.
Congress also enacted new authorities in the IIJA for Reclamation to provide grants that support the construction of “small”
(i.e., less than 30,000 acre-feet), nonfederally owned surface and groundwater storage projects. Reclamation may also support
small water storage and conveyance projects that increase drought resiliency using grant authorities enacted in 2010 under
P.L. 111-11. These drought resiliency projects are funded through Reclamation’s Drought Response Program. While the two
programs target similar project types, their eligible recipients, maximum project costs, and federal cost share requirements
differ.
Issues for Congress related to Reclamation water storage projects may include whether to extend and/or amend expiring
authorities, such as those enacted under the WIIN Act and/or IIJA, or whether to enact new authorities, as well as whether to
increase regular and/or supplemental funding for these projects. Congress may consider what levels of funding, if any, are
adequate for these projects and what financing mechanisms to employ (e.g., appropriate cost shares, repayment). In the 118th
Congress, H.R. 215 would reauthorize the WIIN Act’s storage authorities through the end of FY2028, while S. 2162 would
make significant changes to these authorities.
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Contents
Introduction ..................................................................................................................................... 1
Section 4007 of the WIIN Act ......................................................................................................... 1
IIJA Authorities and Funding for Water Storage Projects ............................................................... 3
Funding and Recent Project Allocations ................................................................................... 3
Other Water Storage Project Authorities ......................................................................................... 6
Small Water Storage Project Grants .......................................................................................... 6
Drought Resiliency Projects ...................................................................................................... 7
Geographically Specific Authorities ......................................................................................... 8
Issues for Congress .......................................................................................................................... 8
Section 4007 Reauthorization ................................................................................................... 8
Authorities for Smaller Water Storage Projects ........................................................................ 9
Funding and Implementation .................................................................................................... 9
Figures
Figure 1. Process for Section 4007 Water Storage Project Funding Allocations ............................. 2
Tables
Table 1. Reclamation Water Storage Project Allocations, 2018-2024 ............................................. 5
Table 2. Reclamation Small Water Storage Project Grant Awards in FY2023 ................................ 7
Contacts
Author Information .......................................................................................................................... 9
Congressional Research Service
Bureau of Reclamation Support for Water Storage Projects
Introduction1
Traditionally, the role of the Bureau of Reclamation (Reclamation, part of the Department of the
Interior) in water project development has been limited to geographically specific projects
authorized in federal statutes that comprise reclamation law (i.e., federal law that applies to
reclamation projects generally). For such projects, Congress generally provided full, up-front
funding for the construction costs of these projects through discretionary appropriations to
Reclamation. Project beneficiaries (e.g., irrigators, municipal water suppliers, and hydropower
contractors) generally then repaid their portion of reimbursable project construction or
development costs over a term of 40 to 50 years.
A number of events precipitated the gradual slowdown of Reclamation’s construction program
beginning in the 1970s, and the bureau has constructed few new Reclamation projects (most of
them smaller in scale) since then. Instead, Congress has authorized other forms of support for
water resources development, including rural water projects, grants to nonfederal entities for
water efficiency and conservation efforts, and projects associated with authorized Indian water
rights settlements.2
In recent years, Congress has added to the available authorities for Reclamation to construct or
support the construction of both large and small surface and groundwater storage projects.
Section 4007 of the Water Infrastructure Improvements for the Nation Act (WIIN Act; P.L. 114-
322) created a new authority for Reclamation to build new and/or augmented surface and
groundwater storage projects. The authority was subsequently funded in congressional
appropriations. In the Infrastructure Investment and Jobs Act (IIJA, also referred to as the
Bipartisan Infrastructure Law [BIL]; P.L. 117-58), Congress expanded these authorities and
provided Reclamation with additional funding for these projects. Congress has also enacted
several grant authorities for Reclamation that support the construction of small, nonfederal
surface and groundwater storage projects. These are funded through the bureau’s Small Water
Storage Project grant program, and drought resiliency projects are funded within the bureau’s
Drought Response Program.
Section 4007 of the WIIN Act
In 2016, Congress enacted the WIIN Act, Section 4007 of which created a new authority for
Reclamation to support surface and groundwater storage projects. At the time, the act authorized a
total of $335 million in discretionary appropriations for this purpose. Under Section 4007,
funding for water storage projects is available for two primary project types:
• Federally owned storage projects are surface water or groundwater storage
projects to which the United States holds title and that were authorized for
construction pursuant to reclamation law and regulations. The federal
government may fund up to 50% of the cost for these projects.
• State-led storage projects are surface water or groundwater storage projects to be
constructed, operated, and maintained by states or political subdivisions. The
federal government may fund up to 25% of the costs of these projects.
1 This report is an expanded version of a previous CRS product, IF10626, which has since been archived.
2 For more background on the Bureau of Reclamation’s history and authorities, see CRS Report R46303, Bureau of
Reclamation: History, Authorities, and Issues for Congress, by Charles V. Stern and Anna E. Normand.
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Funding allocated under the WIIN Act may be used for studies and construction. Before projects
can begin construction under Section 4007, several milestones must be met. To recommend a
project for construction, the Secretary of the Interior must find that the project is feasible (either
by authorizing a federal feasibility study or by approving a nonfederal study) and provides
benefits proportionate to the federal government’s cost share. In addition, project sponsors must
agree to pay their portion of project costs up front. Appropriations under Section 4007 are
available only after the Secretary transmits a list of recommended projects and funding levels to
Congress and Congress designates those projects by name in an enacted appropriations act
(Figure 1).
Figure 1. Process for Section 4007 Water Storage Project Funding Allocations
Source: Congressional Research Service.
In the WIIN Act, Congress stipulated that in order for projects to move forward with construction,
the Secretary must find them feasible by January 1, 2021.3 As a result, only a subset of studies
that were initially funded under this authority are currently eligible for construction funding.
Altogether, 8 of the 13 projects that received feasibility study funding between 2018 and 2020
under the WIIN Act’s authority were found feasible prior to the act’s January 1, 2021, deadline.
These projects continue to be eligible for ongoing construction funding. (These projects are
shown in boldface in Table 1.)
Section 4007 is notable for its contrast with traditional Reclamation financing. Instead of full, up-
front federal financing for new federal projects as has traditionally been provided, Section 4007
provides for 50% funding for federal-led projects and 25% funding for state-led projects.
Additionally, prior to enacting the WIIN Act, Congress had not authorized Reclamation to fund
state-led water storage projects.
The WIIN Act’s changes were also significant insofar as they allow water resources projects to
move forward with construction without direct involvement of relevant congressional authorizing
committees (i.e., the House Natural Resources Committee and the Senate Energy and Natural
Resources Committee). Although there is no statutory requirement for explicit approval of
Reclamation construction projects by these committees, in practice, these projects previously
have received approval from the authorizing committees for construction before obtaining
appropriations for this purpose. Section 4007 moved the onus of project approval to the
appropriators and increased the number of requirements that must be met during the
appropriations process. Although Section 4007 decreased traditional congressional involvement
in new project approval, Congress, through the appropriations committees, still has to approve
new projects before they can move forward. Additionally, although Section 4007 represents a new
authority for construction projects, only a limited pool of projects are eligible for this support
(i.e., projects approved before 2021), and Reclamation project authorization and finance
continues to be an option for construction of new projects.
3 P.L. 114-322, §4007(i).
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IIJA Authorities and Funding for Water Storage
Projects
In the IIJA (also referred to as the BIL; P.L. 117-58), Congress expanded the water storage
authority of the WIIN Act. In Section 40901 of the IIJA, Congress authorized a total of $1.05
billion for water storage projects through FY2026. 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:
• feasibility studies authorized by Congress by the date of the IIJA’s enactment,
• feasibility studies with funding approved under Section 4007 of the WIIN Act,
and
• the Verde Reservoirs Sediment Mitigation Project (AZ) and the Tualatin River
Basin Project (OR).
Similarly to the IIJA’s approach for feasibility studies, in Section 40902(a)(2) of the act, Congress
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 will be eligible for IIJA construction
funding if any of the following has occurred as of the date of the IIJA’s enactment:
• an act of Congress authorized construction funding;
• Congress approved construction funding under Section 4007 of the WIIN Act;4 or
• Congress approved feasibility study funding for a project, as detailed above,
provided that the Secretary of the Interior finds 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 by the Secretary of the Interior for construction.
Thus, Reclamation in effect possesses two construction authorities: a permanent authority to
construct (or support the construction of) the eight facilities that met the WIIN Act’s feasibility
deadline of January 1, 2021, and a time-limited authority to fund certain studies and construction
projects through FY2026 under the IIJA (of which WIIN Act projects are a subset).
Funding and Recent Project Allocations
Congress appropriated a total of $988 million for Section 4007 projects in annual Energy and
Water Development appropriations acts from FY2017 to FY2024. For its part, Reclamation has
transmitted seven lists of project recommendations for these funds that, after congressional
approval, released $815 million in prior-year appropriations to 13 projects: 10 in California, 2 in
Washington, and 1 in Idaho (Table 1).
Apart from regular appropriations under the WIIN Act, Congress appropriated water storage
funding over five years (FY2022-FY2026) in Division J of the IIJA.5 This funding is available
4 The projects with approved construction funding under Section 4007 of the Water Infrastructure Improvements for the
Nation Act (WIIN) Act include B.F. Sisk Dam Raise and Reservoir Expansion (CA); Boise River Basin Feasibility
Study (ID); Del Puerto Water District Feasibility Study (CA); Friant-Kern Canal Subsidence Challenges Project (CA);
Los Vaqueros Reservoir Phase 2 Expansion (CA); Shasta Dam and Reservoir Enlargement Project (CA); Sites
Reservoir Storage Project (CA); and Yakima River Basin Water Enhancement Project, Cle Elum Pool Raise (WA).
5 As noted above, unlike regular appropriations recommendations under the WIIN Act, Infrastructure Investment and
Jobs Act (IIJA) appropriations for storage are eligible for allocation and award without further action by Congress.
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without limitation as to fiscal years. To date, Reclamation has released project allocations for
water storage studies and construction projects funded under the IIJA in FY2022 and FY2023
(Table 1).6 These allocations have included funding for some of the same WIIN Act Section 4007
projects that were funded in annual discretionary appropriations (e.g., Sites Reservoir Storage
Project and Los Vaqueros Reservoir Phase 2 Expansion), as well as funding for Section 4007
studies that did not meet the 2021 feasibility deadline under the WIIN Act (e.g., Upper Yakima
System Storage Feasibility Study). At the same time, IIJA funding has also been allocated for
other, previously authorized water storage and conveyance projects, such as the Arkansas Valley
Conduit in Colorado. This project was authorized prior to the WIIN Act7 and received a total of
$160 million in IIJA funds in FY2022 and FY2023.
6 Reclamation has released total funding allocations for FY2024 and FY2025 but to date has not released project-
specific allocation addendums for these amounts.
7 The project was authorized in P.L. 87-590, as amended by P.L. 111-11.
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Table 1. Reclamation Water Storage Project Allocations, 2018-2024
($ in millions)
Allocations Based on Administration Recommendations for Regular Appropriations
IIJA Allocations
Project (State)
Jan. 2018
Feb. 2019
June 2020
Dec. 2020
Feb. 2021
Nov. 2022
July 2023
Oct. 2022
July 2023
Arkansas Valley Conduit (CO)
—
—
—
—
—
—
—
$60.0
$100.0
B.F. Sisk Dam Raise and Reservoir Expansion (CA)
—
—
—
—
$60.00
—
—
$25.00
$10.00
Boise River Basin Feasibility Study (ID)
$0.75
$1.75
$2.88
$10.00
—
—
—
—
—
Delta Mendota Canal Subsidence Correction (CA)
—
—
$3.00
—
—
—
—
—
—
Del Puerto Water District Feasibility Study (CA)
—
$1.50
$1.50
—
$15.00
—
—
—
—
Dry Redwater Regional Water System Feasibility Study (MT)
—
—
—
—
—
—
—
$3.0
—
Friant-Kern Canal Subsidence Challenges Project
$2.20
$2.35
$71.00
$135.00
—
—
—
—
—
(CA)
Los Vaqueros Reservoir Phase 2 Expansion (CA)
—
$2.16
$7.85
$4.10
$50.00
$18.00
—
$82.00
$10.00
Sacramento Regional Water Bank (CA)
—
—
$0.87
—
—
—
—
—
—
San Luis Low Point Improvement Project (CA)
—
—
$1.70
—
—
—
—
—
—
Shasta Dam and Reservoir Enlargement Project
$20.00
—a
—a
—a
—
—
—
—
—
(CA)
Sites Reservoir Storage Project (CA)
$4.35
$6.00
$4.00
$9.70
$80.00
$80.0
$205.60
$30.00
$30.0
Upper San Joaquin River Basin Storage Investigation (CA)
$1.50
—
—
—
—
—
—
—
—
Upper Yakima System Storage Feasibility Study (WA)
$2.50
—
—
—
—
—
—
—
$1.00
Verde Reservoirs Sediment Mitigation Project Feasibility
—
—
—
—
—
—
—
$5.0
—
Study (AZ)
Yakima River Basin Water Enhancement Project,
$2.00
$4.00
$1.00
$2.00
—
—
—
$5.00
$1.00
Cle Elum Pool Raise (WA)
Total
$33.30
$17.76
$93.80
$160.80
$205.00
$98.00
$205.60
$142.00
$152.00
Sources: Bureau of Reclamation Reports to Congress in January 2018, February 2019, June 2020, December 2020, July 2021, and July 2023; enacted appropriations legislation for FY2018
(P.L. 115-141), FY2020 (P.L. 116-94), FY2021 (P.L. 116-260), and FY2022 (P.L. 117-43); and FY2022 and FY2023 Reclamation Work Plan addendums for the Infrastructure Investment and Jobs
Act (IIJA; P.L. 117-58), available at https://www.usbr.gov/bil/2022-spendplan.html.
Notes: Projects in boldface were recommended for construction under Section 4007 of the Water Infrastructure Improvements for the Nation Act prior to the legislation’s construction
eligibility deadline of January 1, 2021, and are thus available for ongoing construction funding. Pursuant to the IIJA, project allocations for construction under that act are not required to be
approved by name in enacted legislation.
a. Reclamation proposed $172 million in allocations for this project in 2019 and 2020. Congress did not agree to these recommendations.
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Other Water Storage Project Authorities
Congress has also authorized Reclamation to fund smaller, nonfederally owned water storage
projects of a more limited scale. Some of these authorities are discussed below.
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 (see previous section, “IIJA
Authorities and Funding for Water Storage Projects”). Congress appropriated this funding over
five years (FY2022-FY2026) in Division J of the act.
Congress defined eligible projects under this authority as those in the 17 western reclamation
states, Hawaii, and Alaska (1) with water storage capacity of 200-30,000 acre-feet (AF) or (2) that
convey water directly or indirectly from surface or groundwater storage. Federal costs under this
section are to be either (1) no more than the lesser of 25% of the project’s total costs or (2) $30
million.8 There is no maximum project cost under this authority. Eligible applicants for the
authority include nonfederal entities such as state, regional, or local authorities; Indian tribes or
tribal organizations; and entities such as a water district or water association with water delivery
authority. To qualify for funding, the project sponsor’s feasibility study must be approved by
Reclamation.9
Reclamation allocated $20 million of its IIJA appropriations in FY2023 for this newly created
program (the Small Surface Water Storage and Groundwater Storage Program) pursuant to
Section 40903 of the IIJA. Reclamation awarded the first round of funding under this authority
for four projects in FY2023, shown in Table 2. The capacity of these projects ranged from 1,485
AF to 28,000 AF.
8 P.L. 117-58, §40903(c).
9 For more information, see Bureau of Reclamation, Reclamation Manual: Small Surface Water and Groundwater
Storage Projects Feasibility Study, CMP TRMR-127, January 13, 2022, https://www.usbr.gov/recman/
temporary_releases/cmptrmr-127.pdf.
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Table 2. Reclamation Small Water Storage Project Grant Awards in FY2023
Storage
Capacity
Funding
Project Name
Sponsor (State)
(Acre-Feet)
($ in millions)
Upstream Operational Reservoir Storage
Imperial Irrigation
2,100
$9.47
Project
District (CA)
Kern Fan Groundwater Storage Project:
Groundwater Banking
28,000
$4.74
Phase 1
Joint Powers Authority
(CA)
Ash Creek Project: Toquer Reservoir
Washington County
3,638
$4.74
Water District (UT)
Orestimba Creek Groundwater Recharge
Del Puerto Water
1,485
$1.04
and Recovery Expansion Project
District (CA)
Source: Bureau of Reclamation, Implementation of the Bipartisan Infrastructure Law, Addendum-WaterSMART
– WEEG, Drought Contingency Plan for LC & UC, Small Storage FY 2023, 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.
Drought Resiliency Projects
Reclamation’s Drought Response Program, a component of the Bureau’s WaterSMART Program,
has also been used to support construction of water storage projects of a limited scale, including
nonfederal water storage projects and groundwater recharge and recovery projects that increase
drought resiliency in drought-prone areas. These drought resiliency projects are authorized under
the same authority as Reclamation’s WaterSMART grant program.10 Drought resiliency projects
may fund up to 50% of a project’s costs, with maximum federal funding of $5 million per project
and maximum total project costs of $10 million. However, the federal cost share for these projects
can be up to 95%-100% for certain disadvantaged communities if funding is provided through the
Inflation Reduction Act (IRA; P.L. 117-169).11 There are no other requirements pertaining to
project size and scope under this authority.
Eligible recipients of drought resiliency project funding are similar to those eligible for funding
under the Small Water Storage Program but also include the U.S. Virgin Islands, Puerto Rico, and
Guam, as well as nonprofit conservation groups who partner with an otherwise eligible entity.
Previously, Reclamation has funded drought resiliency projects using both annual discretionary
10 Drought Response Program (DRP) grants are generally authorized under two separate authorities. Congress
authorized emergency response and planning in the Reclamation States Drought Relief Act of 1991 (P.L. 102-250). In
Section 9504 of P.L. 111-11, as amended (42 U.S.C. §10364), Congress enacted authority for the WaterSMART
program, which included the authority to fund projects to “plan for or address the impacts of drought.” Reclamation
uses the latter authority to fund drought resiliency projects, which are solicited along with other such drought projects
and are defined by Reclamation as on-the-ground projects that improve water management flexibility during periods of
drought. For more information, see Bureau of Reclamation, “Drought Response Program,” https://www.usbr.gov/
drought/index.html.
11 Specifically, domestic water supply projects for tribes or disadvantaged communities that apply for funding under the
Inflation Reduction Act may receive a 95% federal cost share, which may itself be waived (resulting in a 100% federal
cost share). See Bureau of Reclamation, WaterSMART Planning and Project Design Grants, & Drought Resiliency
Projects, Webinar, August 24, 2023, p. 26, https://www.usbr.gov/drought/docs/2024/
FY24_Planning_DRP_Webinar.pdf.
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appropriations provided to the Drought Response Program, as well as by using a portion of
WaterSMART grant funding appropriated under the IIJA.12
Geographically Specific Authorities
Reclamation has other authorities that it has used to support water storage and related works. For
instance, Congress has enacted targeted authorities for Reclamation to construct some
geographically specific projects, such as the Arkansas Valley Conduit in Colorado (see previous
section, “IIJA Authorities and Funding for Water Storage Projects”). Similarly, Congress has also
authorized Reclamation to construct individual rural water projects, which are typically municipal
projects to supply water to rural and/or tribal areas.13 Reclamation has other project-specific
authorities that it is also using to construct water storage and conveyance projects, such as those
pertaining to individual Indian water rights settlements.14 Detailed discussion of these other
authorities is beyond the scope of this report.
Issues for Congress
Section 4007 Reauthorization
Congress has typically engaged with the Administration’s recommendations for Section 4007
water storage construction projects in appropriations action. As previously noted, appropriations
under the authority of Section 4007 of the WIIN Act may not be allocated to individual projects
until they are approved by name in enacted legislation. While Congress has approved most prior
WIIN Act project allocation recommendations, the 116th Congress did not approve several
recommended allocations for one project (the Shasta Dam and Reservoir Enlargement Project)
during the Trump Administration; this effectively blocked its construction. Since 2021,
Reclamation has continued to recommend funding allocations for construction projects that met
the WIIN Act’s feasibility determination deadline of January 1, 2021.
Some Members of Congress have proposed reauthorization and/or amendment of the Section
4007 authority. In the 118th Congress, H.R. 215 would reauthorize the WIIN Act’s Section 4007
storage authorities through the end of FY2028. It would also make the Shasta Dam and Reservoir
Enlargement project eligible for unallocated Section 4007 funding.15 Another bill, S. 2162, would
also reauthorize Section 4007 (including the authorization of $750 million through FY2029) but
would make major changes to the authority. Among other things, it would make certain “public
benefits” for these projects nonreimbursable16 and would add a new project category for “natural
12 For example, in FY2023, Reclamation announced that $84.9 million in IIJA WaterSMART grant funding would be
used for 36 drought resiliency projects across 10 western states. See Bureau of Reclamation, Implementation of the
Bipartisan Infrastructure Law Addendum-ESA & WaterSMART to FY 2023 Initial Spend Plan, and to FY 2022 and FY
2023 Spend Plans, December 2022, https://www.usbr.gov/bil/docs/spendplan-2023/Reclamation-BIL-Spend-Plan-
Addendum-ESA%20WaterSMART12-27-2022.pdf. Unlike for WaterSMART, Congress did not appropriate IIJA
funding for the DRP.
13 For more information on Reclamation’s rural water projects, see CRS Report R46308, Bureau of Reclamation Rural
Water Projects, by Anna E. Normand.
14 For more information, see CRS Report R44148, Indian Water Rights Settlements, by Charles V. Stern.
15 H.R. 215, §§304-305. As noted above in Table 1, $172 million in funding was recommended for this project in 2019
and 2020, but Congress did not approve this funding in enacted legislation.
16 The bill would define “public benefits” to include not only those benefits currently included under reclamation law
but also drinking water benefits for a disadvantaged community, an emergency drinking water supply used in response
to a disaster declaration by a governor, and energy savings benefits. See S. 2162, §2(10).
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water retention and release projects.” It would also cap federal support for nonfederal projects
under the authority at $250 million and would create a formal reporting process for
recommending individual projects to Congress for construction authorization.17 In the future,
Congress may continue to weigh in on recommended storage projects under the Section 4007
authority through the appropriations process or to alter the current process with required annual
reporting or other mechanisms that involve the authorization committees in these decisions.
Authorities for Smaller Water Storage Projects
Apart from Section 4007 authorities for larger projects, Congress may also consider the status of
the temporary (FY2022-FY2026) authority and funding for the Small Water Storage Project grant
program authorized in the IIJA and whether to extend this authority beyond the time horizon
currently authorized. It may also consider the status and mechanism for supporting drought
resiliency projects (technically authorized under the Bureau’s WaterSMART authorities)18 and the
status of temporary cost share authorities under the IRA. Demand for both programs, and
reconciling differences between the authorities (e.g., eligible entities, potential for cost share
waivers, project caps), could be a driver for future legislative interest in one or both programs.
Funding and Implementation
Funding for Reclamation to study and construct water storage projects has increased significantly
over the past decade. As construction on surface and groundwater storage projects continues
across the West and recent influxes of supplemental funding (i.e., IIJA funding) are expended,
stakeholders may ask Congress to enact new funding to complete these projects and start others.
How and whether to make this funding available, and what (if any) changes and other
requirements (e.g., reporting) should accompany this funding, are likely to be of interest to
Congress.
Author Information
Charles V. Stern
Specialist in Natural Resources Policy
17 S. 2162, §102.
18 For more information, see Bureau of Reclamation, Reclamation Manual: Small Surface Water and Groundwater
Storage Projects Feasibility Study, CMP TRMR-127, January 13, 2022, https://www.usbr.gov/recman/
temporary_releases/cmptrmr-127.pdf.
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Bureau of Reclamation Support for Water Storage Projects
Disclaimer
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