Bills · S. 3738 · Text

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S. 3738: the bill

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3738 Reported in Senate (RS)]

<DOC>





                                                       Calendar No. 652
119th CONGRESS
  2d Session
                                S. 3738

To amend the Infrastructure Investment and Jobs Act to reauthorize the 
  large-scale water recycling and reuse program, to establish a Water 
        Conveyance Improvement Program, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 29, 2026

  Mr. Padilla introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

                           September 17, 2026

                 Reported by Mr. Lee, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
To amend the Infrastructure Investment and Jobs Act to reauthorize the 
  large-scale water recycling and reuse program, to establish a Water 
        Conveyance Improvement Program, and for other purposes.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Making Our communities 
Resilient through Enhancing Water for Agriculture, Technology, the 
Environment, and Residences Act'' or the ``MORE WATER Act''.</DELETED>

<DELETED>SEC. 2. REAUTHORIZATION OF LARGE-SCALE WATER RECYCLING AND 
              REUSE PROGRAM.</DELETED>

<DELETED>    Section 40905 of the Infrastructure Investment and Jobs 
Act (43 U.S.C. 3205) is amended--</DELETED>
        <DELETED>    (1) in subsection (a)--</DELETED>
                <DELETED>    (A) by redesignating paragraphs (1) 
                through (4) as paragraphs (2) through (5), 
                respectively; and</DELETED>
                <DELETED>    (B) by inserting before paragraph (2) (as 
                so redesignated) the following:</DELETED>
        <DELETED>    ``(1) Construction.--The term `construction' has 
        the meaning given the term in subsection (f) of section 4011 of 
        the Water Infrastructure Improvements for the Nation Act 
        (Public Law 114-322; 130 Stat. 1881), except that any reference 
        in paragraph (2) of that subsection to `storage' shall be 
        deemed to be a reference to `infrastructure'.'';</DELETED>
        <DELETED>    (2) by striking subsection (b) and inserting the 
        following:</DELETED>
<DELETED>    ``(b) Establishment.--The Secretary shall establish a 
program to provide grants to eligible entities on a competitive basis 
for the development of feasibility studies, planning, design, and 
construction of large-scale water recycling and reuse projects that 
provide substantial water supply and other benefits to the Reclamation 
States in accordance with this section.'';</DELETED>
        <DELETED>    (3) in subsection (d)(4), by striking ``30'' and 
        inserting ``60'';</DELETED>
        <DELETED>    (4) in subsection (k)--</DELETED>
                <DELETED>    (A) by striking ``The authority'' and 
                inserting the following:</DELETED>
        <DELETED>    ``(1) In general.--Except as provided in paragraph 
        (2), the authority'';</DELETED>
                <DELETED>    (B) in paragraph (1) (as so designated), 
                by striking ``5'' and inserting ``10''; and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(2) Exception.--Paragraph (1) shall not apply to 
        an eligible project that is under construction as of the 
        termination date described in that paragraph.''; and</DELETED>
        <DELETED>    (5) by adding at the end the following:</DELETED>
<DELETED>    ``(l) Authorization of Appropriations.--There is 
authorized to be appropriated to the Secretary to provide grants for 
eligible projects and otherwise carry out this section $450,000,000 for 
the period of fiscal years 2028 through 2032.''.</DELETED>

<DELETED>SEC. 3. WATER CONVEYANCE IMPROVEMENT PROGRAM.</DELETED>

<DELETED>    (a) Definitions.--In this section:</DELETED>
        <DELETED>    (1) Conveyance project.--The term ``conveyance 
        project'' means a project for the undertaking of a new or 
        improved water conveyance facility, or the restoration of the 
        capacity of an existing water conveyance facility, that is 
        located in a Reclamation State.</DELETED>
        <DELETED>    (2) Eligible entity.--The term ``eligible entity'' 
        means--</DELETED>
                <DELETED>    (A) a State, Indian Tribe, municipality, 
                irrigation district, water district, wastewater 
                district, or any State or regional organization with 
                statutory water or power delivery authority;</DELETED>
                <DELETED>    (B) a State, regional, or local authority, 
                the members of which include 1 or more organizations 
                that--</DELETED>
                        <DELETED>    (i) have water or power delivery 
                        authority; or</DELETED>
                        <DELETED>    (ii) are responsible for operating 
                        conveyance facilities as a transferred works 
                        under the reclamation laws and Bureau of 
                        Reclamation policy;</DELETED>
                <DELETED>    (C) an agency established under State law 
                for the joint exercise of powers; and</DELETED>
                <DELETED>    (D) any combination of entities described 
                in subparagraphs (A) through (C).</DELETED>
        <DELETED>    (3) Indian tribe.--The term ``Indian Tribe'' has 
        the meaning given the term ``Indian tribe'' in section 102 of 
        the Federally Recognized Indian Tribe List Act of 1994 (25 
        U.S.C. 5130).</DELETED>
        <DELETED>    (4) Low-income community.--The term ``low-income 
        community'' has the meaning given the term in section 45D(e) of 
        the Internal Code of 1986 (including any regulations issued 
        under that section), including Tribal communities.</DELETED>
        <DELETED>    (5) Multi-benefit project.--The term ``multi-
        benefit project'' means a conveyance project that provides in 
        the region of the conveyance project benefits that include not 
        fewer than 1 of the following quantified, significant 
        benefits:</DELETED>
                <DELETED>    (A) Safe drinking water benefits for low-
                income communities.</DELETED>
                <DELETED>    (B) Environmental benefits.</DELETED>
        <DELETED>    (6) Program.--The term ``Program'' means the Water 
        Conveyance Improvement Program established under subsection 
        (b).</DELETED>
        <DELETED>    (7) Project proponent.--The term ``project 
        proponent'' means an eligible entity that--</DELETED>
                <DELETED>    (A) plans and develops a non-Federal 
                conveyance project; or</DELETED>
                <DELETED>    (B) operates an existing Reclamation 
                project that is a transferred works.</DELETED>
        <DELETED>    (8) Project sponsor.--The term ``project sponsor'' 
        means an eligible entity that contributes to the non-Federal 
        share of a conveyance project.</DELETED>
        <DELETED>    (9) Reclamation project.--The term ``Reclamation 
        project'' means a Bureau of Reclamation project that is owned 
        by the United States.</DELETED>
        <DELETED>    (10) Reclamation state.--The term ``Reclamation 
        State'' means a State or territory described in the first 
        section of the Act of June 17, 1902 (43 U.S.C. 391; 32 Stat. 
        388, chapter 1093).</DELETED>
        <DELETED>    (11) Safe drinking water.--The term ``safe 
        drinking water'' means water that meets all applicable Federal 
        and State primary and secondary drinking water 
        standards.</DELETED>
        <DELETED>    (12) Secretary.--The term ``Secretary'' means the 
        Secretary of the Interior (acting through the Commissioner of 
        Reclamation).</DELETED>
        <DELETED>    (13) Stakeholder.--The term ``stakeholder'' 
        means--</DELETED>
                <DELETED>    (A) with respect to safe drinking water 
                benefits for low-income communities--</DELETED>
                        <DELETED>    (i)(I) an elected executive 
                        official with applicable authority or 
                        legislative body representing a low-income 
                        community (or a delegate); and</DELETED>
                        <DELETED>    (II) any agency exercising primary 
                        enforcement responsibility for public water 
                        systems in the State in which the applicable 
                        project is located;</DELETED>
                        <DELETED>    (ii) an Indian Tribe receiving 
                        safe drinking water benefits; or</DELETED>
                        <DELETED>    (iii) a nonprofit organization 
                        described in section 501(c)(3) of the Internal 
                        Revenue Code of 1986 and exempt from taxation 
                        under section 501(a) of that Code with--
                        </DELETED>
                                <DELETED>    (I) a demonstrated track 
                                record of supporting improved access to 
                                safe drinking water for low-income 
                                communities in the region of the 
                                applicable project; and</DELETED>
                                <DELETED>    (II) no financial conflict 
                                of interest with the project proponent 
                                or any project sponsor, except that 
                                other instances of partnership on 
                                similar projects shall not be 
                                considered a financial conflict of 
                                interest for purposes of this 
                                subclause; and</DELETED>
                <DELETED>    (B) with respect to environmental 
                benefits--</DELETED>
                        <DELETED>    (i) a nonprofit organization 
                        described in section 501(c)(3) of the Internal 
                        Revenue Code of 1986 and exempt from taxation 
                        under section 501(a) of that Code with--
                        </DELETED>
                                <DELETED>    (I) a demonstrated track 
                                record of supporting environmental 
                                restoration in the region of the 
                                applicable project, including species 
                                or species habitat; and</DELETED>
                                <DELETED>    (II) no financial conflict 
                                of interest with the project proponent 
                                or any project sponsor, except that 
                                other instances of partnership on 
                                similar projects shall not be 
                                considered a financial conflict of 
                                interest for purposes of this 
                                subclause; or</DELETED>
                        <DELETED>    (ii) an Indian Tribe, if the 
                        project is within the current or former 
                        reservation or aboriginal territory of the 
                        Indian Tribe.</DELETED>
        <DELETED>    (14) Water supply benefit.--The term ``water 
        supply benefit'' means--</DELETED>
                <DELETED>    (A) an irrigation benefit;</DELETED>
                <DELETED>    (B) a general drinking water benefit; 
                and</DELETED>
                <DELETED>    (C) operational flexibility that allows 
                the Bureau of Reclamation to provide multiple benefits, 
                including any of the benefits described in 
                subparagraphs (A) and (B).</DELETED>
<DELETED>    (b) Establishment of Program.--The Secretary shall 
establish within the Bureau of Reclamation a Water Conveyance 
Improvement Program to provide authority to participate in, and provide 
grants to, conveyance projects.</DELETED>
<DELETED>    (c) Reclamation-Led Conveyance Projects.--</DELETED>
        <DELETED>    (1) In general.--On the request of any State, 
        department, agency, or subdivision of a State, or any public 
        agency organized pursuant to State law, the Secretary may 
        provide a grant to, and enter into an agreement on behalf of 
        the United States for the design, study, and construction of, a 
        conveyance project as part of a new Reclamation project, a new 
        division of a Reclamation project, a new supplemental works on 
        a Reclamation project, or the restoration or improvement of the 
        capacity of an existing Reclamation project, in accordance with 
        this subsection.</DELETED>
        <DELETED>    (2) Project commencement.--The construction of a 
        conveyance project that is the subject of an agreement under 
        this subsection shall not commence until the date on which the 
        Secretary--</DELETED>
                <DELETED>    (A) determines that the conveyance project 
                is feasible in accordance with the reclamation laws; 
                and</DELETED>
                <DELETED>    (B) secures an agreement providing the 
                funding necessary to pay the non-Federal share of the 
                costs of the conveyance project in accordance with 
                subsection (e).</DELETED>
        <DELETED>    (3) Feasibility determination.--In determining 
        feasibility under paragraph (2)(A), the Secretary shall review 
        and approve a feasibility analysis provided by a project 
        sponsor if the Secretary determines that the analysis meets 
        Bureau of Reclamation policy relating to the preparation of a 
        feasibility study.</DELETED>
<DELETED>    (d) Non-Federal Conveyance Projects.--</DELETED>
        <DELETED>    (1) Proposal.--</DELETED>
                <DELETED>    (A) In general.--A project proponent may 
                submit to the Secretary a proposal for the design, 
                study, and construction of a conveyance project to be 
                provided a grant under this section.</DELETED>
                <DELETED>    (B) Form.--The project proponent may 
                submit a proposal under subparagraph (A) in the form of 
                a completed feasibility study or any other means that 
                provide information to support a determination that the 
                conveyance project is eligible for a grant in 
                accordance with paragraph (2).</DELETED>
        <DELETED>    (2) Requirements.--The Secretary may provide to 
        the project proponent a grant for a conveyance project and 
        enter into an agreement on behalf of the United States with the 
        project proponent for the administration of the grant if--
        </DELETED>
                <DELETED>    (A) the project proponent determines, and 
                the Secretary concurs, through the preparation of a 
                feasibility study that is streamlined to the maximum 
                extent practicable, that the conveyance project--
                </DELETED>
                        <DELETED>    (i) is technically and financially 
                        feasible; and</DELETED>
                        <DELETED>    (ii) is consistent with applicable 
                        Federal and State law;</DELETED>
                <DELETED>    (B) the project proponent has sufficient 
                non-Federal funding available to complete the 
                conveyance project, as determined by the 
                Secretary;</DELETED>
                <DELETED>    (C) the project proponent is financially 
                solvent, as determined by the Secretary; and</DELETED>
                <DELETED>    (D) not later than 60 days after the date 
                on which the Secretary concurs with the determination 
                under subparagraph (A) with respect to the conveyance 
                project, the Secretary submits to Congress written 
                notice of the determination.</DELETED>
<DELETED>    (e) Cost-Sharing Requirement.--</DELETED>
        <DELETED>    (1) In general.--The Federal share of a conveyance 
        project funded under this section shall not exceed 50 percent 
        of the total cost of studies, planning, design, and 
        construction of the conveyance project.</DELETED>
        <DELETED>    (2) Projects that are not multi-benefit.--The 
        Federal share of a conveyance project other than a multi-
        benefit project funded under this section may be used--
        </DELETED>
                <DELETED>    (A) solely for water supply benefits; 
                or</DELETED>
                <DELETED>    (B) on the approval by the Secretary and, 
                in the case of a non-Federal conveyance project or an 
                existing Reclamation project that is a transferred 
                works, at the request of the project proponent, for a 
                combination of--</DELETED>
                        <DELETED>    (i) water supply 
                        benefits;</DELETED>
                        <DELETED>    (ii) safe drinking water benefits 
                        for low-income communities;</DELETED>
                        <DELETED>    (iii) environmental benefits; 
                        or</DELETED>
                        <DELETED>    (iv) other benefits in accordance 
                        with the reclamation laws.</DELETED>
        <DELETED>    (3) Multi-benefit projects.--In the case of a 
        multi-benefit project funded under this section--</DELETED>
                <DELETED>    (A) the Federal share of not more than 30 
                percent of the costs of studies, planning, design, and 
                construction of the multi-benefit project may be used 
                for any of the benefits described in paragraph (2); 
                and</DELETED>
                <DELETED>    (B) an additional Federal share of not 
                more than 20 percent of the costs of studies, planning, 
                design, and construction of the multi-benefit project 
                may be used for--</DELETED>
                        <DELETED>    (i) quantified, significant safe 
                        drinking water benefits for low-income 
                        communities in accordance with subsection 
                        (f)(2)(A);</DELETED>
                        <DELETED>    (ii) quantified, significant 
                        environmental benefits described in subsection 
                        (f)(3); or</DELETED>
                        <DELETED>    (iii) a combination of the 
                        benefits described in clauses (i) and 
                        (ii).</DELETED>
        <DELETED>    (4) Agreement.--The project proponent or the 
        Secretary, in the case of any Reclamation-led conveyance 
        project that is a new project or involves a reserved works, 
        shall enter into an agreement with 1 or more applicable 
        stakeholders representing multi-benefit interests that 
        describes the benefits authorized under paragraph (3)(B) 
        proposed for the conveyance project.</DELETED>
        <DELETED>    (5) Form of non-federal share.--The non-Federal 
        share of the cost of a conveyance project funded under this 
        section may be in the form of--</DELETED>
                <DELETED>    (A) cash;</DELETED>
                <DELETED>    (B) in-kind contributions;</DELETED>
                <DELETED>    (C) reimbursable funding allocated 
                pursuant to any statutory authority, if the eligible 
                entity has entered into a repayment contract for the 
                funding;</DELETED>
                <DELETED>    (D) a loan under the Water Infrastructure 
                Finance and Innovation Act of 2014 (33 U.S.C. 3901 et 
                seq.) or any other Federal loan program;</DELETED>
                <DELETED>    (E) amounts made available from a State 
                revolving fund pursuant to the rules of the applicable 
                State; or</DELETED>
                <DELETED>    (F) other non-Federal sources of funding, 
                including State funding.</DELETED>
<DELETED>    (f) Special Provisions Applicable to Multi-Benefit 
Projects.--</DELETED>
        <DELETED>    (1) Requirement.--</DELETED>
                <DELETED>    (A) In general.--A conveyance project with 
                a total cost of not less than $800,000,000 that is 
                funded under this section shall be a multi-benefit 
                project.</DELETED>
                <DELETED>    (B) Less than $800,000,000.--The Secretary 
                shall ensure that not less than 50 percent of 
                conveyance projects with a total cost of less than 
                $800,000,000 that are funded under this section shall 
                be multi-benefit projects.</DELETED>
        <DELETED>    (2) Description of safe drinking water benefits 
        for low-income communities.--</DELETED>
                <DELETED>    (A) In general.--The Federal funding for 
                quantified, significant safe drinking water benefits 
                for low-income communities referred to in subsection 
                (e)(3)(B)(i) may be provided--</DELETED>
                        <DELETED>    (i) directly, by paying for a 
                        sufficient proportion of the capacity of the 
                        conveyance project (or, in the case of a 
                        conveyance project restoring the original 
                        capacity of a conveyance facility, paying for 
                        sufficient water from the conveyance project) 
                        and any additional infrastructure necessary to 
                        deliver safe drinking water to a low-income 
                        community or other resource or facility 
                        accessible to the community;</DELETED>
                        <DELETED>    (ii) indirectly, by--</DELETED>
                                <DELETED>    (I) supporting a low-
                                income ratepayer assistance program for 
                                a project sponsor, a member agency of a 
                                project sponsor, or a drinking water 
                                district in the region of the 
                                conveyance project; or</DELETED>
                                <DELETED>    (II) contributing to a 
                                Federal or State program that assists 
                                in delivering safe drinking water to 
                                low-income communities;</DELETED>
                        <DELETED>    (iii) indirectly, by paying for a 
                        sufficient proportion of the project capacity 
                        during high-flow periods to provide a specific 
                        quantity of water (or, in the case of a 
                        conveyance project restoring the original 
                        capacity of a conveyance facility, paying for 
                        sufficient water from the conveyance project), 
                        with 1 of the project sponsors in return 
                        delivering the same quantity of water to the 
                        community through an exchange, banking water in 
                        a groundwater basin during times of excess for 
                        subsequent delivery to the low-income 
                        community;</DELETED>
                        <DELETED>    (iv) indirectly, by paying for 
                        enhancement, repair, or upgrades to a Bureau of 
                        Indian Affairs conveyance facility in the 
                        region of the project;</DELETED>
                        <DELETED>    (v) by any other direct or 
                        indirect means to provide safe drinking water 
                        to a low-income community; or</DELETED>
                        <DELETED>    (vi) through a combination of the 
                        methods authorized under clauses (i) through 
                        (v).</DELETED>
                <DELETED>    (B) Delivery of water for drinking.--
                Delivery of water for drinking purposes shall be 
                considered to be safe drinking water benefits for low-
                income communities for purposes of this section if--
                </DELETED>
                        <DELETED>    (i) facilities exist to treat the 
                        water that is to become safe drinking water; 
                        or</DELETED>
                        <DELETED>    (ii) the stakeholders representing 
                        the applicable low-income communities agree 
                        that there are viable plans and funding sources 
                        (including Federal or State funding) to treat 
                        the delivered water or exchanged water that is 
                        to become safe drinking water.</DELETED>
                <DELETED>    (C) Inclusion.--Any benefits described in 
                subparagraph (A) that are safe drinking water benefits 
                for low-income ratepayers shall be considered to meet 
                the requirements for safe drinking water benefits for 
                low-income communities under this section.</DELETED>
                <DELETED>    (D) Effect.--Nothing in this section 
                requires a project proponent or project sponsor to pay 
                for treatment of water delivered to low-income 
                communities, other than low-income communities with 
                which the project proponent or the project sponsor has 
                an existing contractual relationship to deliver treated 
                water.</DELETED>
        <DELETED>    (3) Description of environmental benefits.--The 
        quantified, significant environmental benefits referred to in 
        subsection (e)(3)(B)(ii) include--</DELETED>
                <DELETED>    (A) benefits to a species listed as 
                threatened or endangered under the Endangered Species 
                Act of 1973 (16 U.S.C. 1531 et seq.) or other species 
                of concern affected by operation of Reclamation 
                projects or State or local water projects;</DELETED>
                <DELETED>    (B) additional flows to an inland water 
                body, including the Great Salt Lake, either directly or 
                indirectly through an exchange;</DELETED>
                <DELETED>    (C) benefits that improve aquatic or 
                terrestrial habitats in the region of the proposed 
                conveyance project;</DELETED>
                <DELETED>    (D) contributions to a Federal or State 
                program that provides environmental benefits in the 
                region of the project;</DELETED>
                <DELETED>    (E) delivery of additional water to 
                wildlife refuges, either directly or indirectly through 
                an exchange; or</DELETED>
                <DELETED>    (F) strategically designed actions that 
                simultaneously achieve environmental and other 
                benefits, such as habitat restoration or efforts to 
                recover species that--</DELETED>
                        <DELETED>    (i) improve the operation of the 
                        conveyance project; or</DELETED>
                        <DELETED>    (ii) have water supply or flood 
                        protection benefits.</DELETED>
        <DELETED>    (4) Types of projects.--Of the multi-benefit 
        projects funded under this section, the Secretary shall ensure 
        that, to the maximum extent practicable--</DELETED>
                <DELETED>    (A) 50 percent provide at least some 
                environmental benefits (or a combination of 
                environmental benefits and safe drinking water benefits 
                for low-income communities); and</DELETED>
                <DELETED>    (B) 50 percent provide at least some safe 
                drinking water benefits for low-income communities (or 
                a combination of safe drinking water benefits for low-
                income communities and environmental 
                benefits).</DELETED>
        <DELETED>    (5) Phased funding of multi-benefit projects.--
        </DELETED>
                <DELETED>    (A) In general.--During the first 2 years 
                in which a multi-benefit project is being constructed, 
                the applicable project sponsor may apply for and 
                receive Federal funds for construction costs authorized 
                under subsection (e)(3)(A), subject to subparagraph 
                (C).</DELETED>
                <DELETED>    (B) Design.--Subject to the provisions of 
                this paragraph, to the maximum extent practicable, the 
                project proponent shall seek to integrate environmental 
                benefits and safe drinking water benefits for low-
                income communities into the design of the applicable 
                multi-benefit project.</DELETED>
                <DELETED>    (C) Requirement.--To be eligible for 
                Federal funds under subparagraph (A), the applicable 
                project proponent shall--</DELETED>
                        <DELETED>    (i) commit to include safe 
                        drinking water benefits for low-income 
                        communities or environmental benefits in the 
                        multi-benefit project on the date on which 
                        Federal funds are provided under that 
                        subparagraph;</DELETED>
                        <DELETED>    (ii) demonstrate that the project 
                        sponsor is in negotiations to add multi-benefit 
                        project elements with stakeholders representing 
                        the environment or safe drinking water for low-
                        income communities; and</DELETED>
                        <DELETED>    (iii) not later than 2 years after 
                        the date on which the project sponsor first 
                        receives construction funding for the project 
                        under subsection (e)(3)(A), submit a proposal 
                        for additional funding under subsection 
                        (e)(3)(B) that is consistent with the 
                        applicable agreement entered into under 
                        subsection (e)(4).</DELETED>
                <DELETED>    (D) Required ratio.--</DELETED>
                        <DELETED>    (i) In general.--Subject to 
                        clauses (ii) and (iii), on submission of a 
                        proposal for additional funding under 
                        subparagraph (C)(iii), for any subsequent 5-
                        year period for which Federal funds are made 
                        available for the applicable multi-benefit 
                        project under this section--</DELETED>
                                <DELETED>    (I) 60 percent shall be 
                                made available for costs relating to 
                                the benefits referred to in subsection 
                                (e)(3)(A); and</DELETED>
                                <DELETED>    (II) 40 percent shall be 
                                made available for costs relating to 
                                environmental benefits or safe drinking 
                                water benefits for low-income 
                                communities in accordance with this 
                                subsection.</DELETED>
                        <DELETED>    (ii) Modification.--
                        Notwithstanding clause (i), the project 
                        proponent or the Secretary, in the case of any 
                        Reclamation-led conveyance project that is a 
                        new project or involves a reserved works, and 
                        any stakeholders representing multi-benefit 
                        interests subject to an agreement referred to 
                        in subsection (e)(4) may by mutual agreement 
                        modify the ratio of funding for different 
                        components of the conveyance project 
                        established under clause (i) for funding over 
                        the specified 5-year period.</DELETED>
                        <DELETED>    (iii) Allocation of total 
                        funding.--The Secretary shall ensure that the 
                        total allocation of funding for a multi-benefit 
                        project shall reflect the ratio of funding 
                        established under clause (i).</DELETED>
<DELETED>    (g) Criteria for Selecting Conveyance Projects.--In 
determining whether to select a conveyance project for a grant under 
this section, the Secretary shall consider--</DELETED>
        <DELETED>    (1) the Federal benefits of the conveyance 
        project;</DELETED>
        <DELETED>    (2) whether the conveyance project, in the 
        judgment of the Secretary, is well-designed to achieve the 
        benefits of the conveyance project at a reasonable 
        cost;</DELETED>
        <DELETED>    (3) whether the conveyance project meets a 
        critical need at the national, State, regional, or local 
        level;</DELETED>
        <DELETED>    (4) whether the conveyance project assists the 
        Federal Government in honoring contracts of the Federal 
        Government;</DELETED>
        <DELETED>    (5) diversity in the geography and size of 
        conveyance projects; and</DELETED>
        <DELETED>    (6) such other factors as the Secretary determines 
        appropriate.</DELETED>
<DELETED>    (h) Total Dollar Cap.--The Secretary shall not impose a 
total dollar cap on Federal funds under this section for any individual 
conveyance project funded under the Program.</DELETED>
<DELETED>    (i) New Conveyance Facility.--No Federal funds are 
authorized under this section for any new conveyance facility that 
costs more than $5,000,000,000.</DELETED>
<DELETED>    (j) Reimbursability of Funds.--Any Federal funds provided 
by the Secretary under the Program shall be nonreimbursable to the 
United States, including--</DELETED>
        <DELETED>    (1) funding of Reclamation-led conveyance projects 
        under subsection (c); and</DELETED>
        <DELETED>    (2) grants to eligible entities for non-Federal 
        conveyance projects under subsection (d).</DELETED>
<DELETED>    (k) Funding Eligibility.--A conveyance project shall not 
be considered ineligible for funding under the Program on the basis of 
the conveyance project receiving assistance under any other Federal 
funding program or Federal joint use agreement.</DELETED>
<DELETED>    (l) Applicable Law.--A conveyance project funded under the 
Program shall be consistent with applicable Federal, State, and Tribal 
law.</DELETED>
<DELETED>    (m) Authorization of Appropriations.--There is authorized 
to be appropriated to the Secretary to carry out this section 
$500,000,000 for the period of fiscal years 2028 through 
2032.</DELETED>

<DELETED>SEC. 4. REAUTHORIZATION OF RECYCLING PROGRAM AND ENVIRONMENTAL 
              RESTORATION PROGRAM.</DELETED>

<DELETED>    (a) Authorization of New Water Recycling and Reuse 
Projects.--Section 1602(g) of the Reclamation Wastewater and 
Groundwater Study and Facilities Act (43 U.S.C. 390h(g)) is amended by 
striking paragraph (1) and inserting the following:</DELETED>
        <DELETED>    ``(1) There is authorized to be appropriated to 
        the Secretary of the Interior to carry out this section 
        $550,000,000 for the period of fiscal years 2028 through 
        2032.''.</DELETED>
<DELETED>    (b) Ceiling on Federal Share.--Section 1631(d)(1) of the 
Reclamation Wastewater and Groundwater Study and Facilities Act (43 
U.S.C. 390h-13(d)(1)) is amended by striking ``$20,000,000 (October 
1996 prices)'' and inserting ``$50,000,000 (in December 2025 prices, as 
automatically adjusted each January based on the percentage increase in 
the consumer price index for all urban consumers (United States city 
average) over the previous year, as published by the Bureau of Labor 
Statistics)''.</DELETED>
<DELETED>    (c) Actions for Benefit of Endangered Species, Important 
Habitat, and Water Bodies.--Section 4010(b) of the Water Infrastructure 
Improvements for the Nation Act (Public Law 114-322; 130 Stat. 1872) is 
amended by striking paragraph (2) and inserting the 
following:</DELETED>
        <DELETED>    ``(2) Actions for benefit of endangered species, 
        important habitat, and water bodies.--There is authorized to be 
        appropriated to the Secretary of the Interior (acting through 
        the Commissioner of Reclamation) $250,000,000 for the period of 
        fiscal years 2028 through 2032--</DELETED>
                <DELETED>    ``(A) for the restoration of habitat or 
                improvement of conditions at the Great Salt Lake and 
                other saline inland lakes affected by the operation of 
                the Central Utah Project or Bureau of Reclamation water 
                projects or deliveries;</DELETED>
                <DELETED>    ``(B) for--</DELETED>
                        <DELETED>    ``(i) gravel and rearing area 
                        additions, fish passage improvements, barrier 
                        removal, and habitat restoration to the 
                        Sacramento River, its tributaries, or other 
                        rivers or river basins affected by the 
                        operation of Bureau of Reclamation facilities 
                        to benefit species listed as threatened or 
                        endangered under the Endangered Species Act of 
                        1973 (16 U.S.C. 1531 et seq.), including 
                        Chinook salmon and steelhead trout;</DELETED>
                        <DELETED>    ``(ii) scientifically improved and 
                        increased real-time monitoring to inform real-
                        time operations of Bureau of Reclamation 
                        facilities, and alternative methods, models, 
                        and equipment to improve temperature modeling, 
                        science, and monitoring to support flow 
                        benefits for fish species, and related 
                        forecasted information for purposes of 
                        predicting impacts to salmon, salmon habitat, 
                        species listed as threatened or endangered 
                        under the Endangered Species Act of 1973 (16 
                        U.S.C. 1531 et seq.), or other species of 
                        concern as a result of water management at 
                        Bureau of Reclamation facilities;</DELETED>
                        <DELETED>    ``(iii) aquatic habitat 
                        restoration activities, including floodplain 
                        reconnection and reactivation projects (such as 
                        off-channel and managed floodplain inundation 
                        projects that enhance biological productivity 
                        and food web support for fish) that enhance the 
                        ability of the Bureau of Reclamation to meet 
                        contractual obligations for water 
                        deliveries;</DELETED>
                        <DELETED>    ``(iv) fish hatchery modernization 
                        and construction projects; and</DELETED>
                        <DELETED>    ``(v) structural or operational 
                        improvements, including temperature control and 
                        associated facilities, necessary to implement 
                        activities described in clauses (i) through 
                        (iv); and</DELETED>
                <DELETED>    ``(C) for planning, design, scientific 
                studies, resource and biological monitoring, 
                environmental reviews, permitting, construction, 
                implementation, and adaptive management associated with 
                any of the activities described in subparagraphs (A) 
                and (B).''.</DELETED>

<DELETED>SEC. 5. OFFSET FROM EXTENSION OF CERTAIN PROVISIONS.</DELETED>

<DELETED>    Section 4013 of the Water Infrastructure Improvements for 
the Nation Act (43 U.S.C. 390b note; Public Law 114-322) is amended--
</DELETED>
        <DELETED>    (1) in paragraph (1), by striking ``and'' at the 
        end;</DELETED>
        <DELETED>    (2) in paragraph (2), by striking ``in'' and 
        inserting ``under'';</DELETED>
        <DELETED>    (3) by redesignating paragraph (2) as paragraph 
        (3); and</DELETED>
        <DELETED>    (4) by inserting after paragraph (1) the 
        following:</DELETED>
        <DELETED>    ``(2) section 4009(c), section 4010(b)(2), and 
        subsections (a), (b), (c), (d), and (f) of section 4011, which 
        shall expire 15 years after that date of enactment; 
        and''.</DELETED>

<DELETED>SEC. 6. DEAUTHORIZATION OF INACTIVE PROJECTS OFFSET.</DELETED>

<DELETED>    (a) Purposes.--The purposes of this section are--
</DELETED>
        <DELETED>    (1) to establish an efficient and transparent 
        process for deauthorizing Reclamation projects that have failed 
        to receive a minimum level of investment to ensure active 
        Reclamation projects can move forward while reducing the 
        backlog of authorized Reclamation projects; and</DELETED>
        <DELETED>    (2) to allow for exceptions for the 
        deauthorization of Reclamation projects under paragraph (1) 
        based on--</DELETED>
                <DELETED>    (A) action by Congress;</DELETED>
                <DELETED>    (B) funding to completion by the non-
                Federal project sponsor; or</DELETED>
                <DELETED>    (C) a finding by the Secretary that 
                certain Reclamation projects should continue to be 
                authorized to meet vitally important needs of a State 
                or the United States.</DELETED>
<DELETED>    (b) Definitions.--In this section:</DELETED>
        <DELETED>    (1) Reclamation project.--The term ``Reclamation 
        project'' means a project that is--</DELETED>
                <DELETED>    (A) owned by the United States; 
                and</DELETED>
                <DELETED>    (B) constructed and operated under the 
                direction of the Bureau of Reclamation.</DELETED>
        <DELETED>    (2) Secretary.--The term ``Secretary'' means the 
        Secretary of the Interior (acting through the Commissioner of 
        Reclamation).</DELETED>
<DELETED>    (c) Interim Deauthorization List.--Not later than 1 year 
after the date of enactment of this Act, the Secretary shall submit to 
the Committee on Energy and Natural Resources of the Senate and the 
Committee on Natural Resources of the House of Representatives and make 
available on a publicly accessible internet website in a manner that is 
downloadable, searchable, and sortable--</DELETED>
        <DELETED>    (1) an interim deauthorization list of Reclamation 
        projects--</DELETED>
                <DELETED>    (A) that are authorized; and</DELETED>
                <DELETED>    (B) for which funding was not obligated 
                during the fiscal year in which this Act is enacted or 
                any of the preceding 7 fiscal years; and</DELETED>
        <DELETED>    (2) for each Reclamation project listed under 
        paragraph (1)--</DELETED>
                <DELETED>    (A) the date of authorization of the 
                Reclamation project, including any subsequent 
                modifications to the original authorization;</DELETED>
                <DELETED>    (B) a brief description of the Reclamation 
                project;</DELETED>
                <DELETED>    (C) the estimated cost of completion of 
                the Reclamation project; and</DELETED>
                <DELETED>    (D) any remaining amounts authorized, but 
                not appropriated, for the Reclamation 
                project.</DELETED>
<DELETED>    (d) Final Deauthorization List.--</DELETED>
        <DELETED>    (1) In general.--Not later than 1 year after the 
        date on which the interim deauthorization list is submitted 
        under subsection (c), the Secretary shall submit to the 
        Committee on Energy and Natural Resources of the Senate and the 
        Committee on Natural Resources of the House of Representatives 
        and make available on a publicly accessible internet website in 
        a manner that is downloadable, searchable, and sortable, a 
        final deauthorization list of all Reclamation projects 
        identified in the interim deauthorization list, other than any 
        Reclamation project--</DELETED>
                <DELETED>    (A) for which funding has been provided by 
                an Act of Congress after the date of submission of the 
                interim deauthorization list; or</DELETED>
                <DELETED>    (B) that the Secretary excludes under 
                paragraph (2).</DELETED>
        <DELETED>    (2) Exclusions.--The Secretary may exclude from 
        the final deauthorization list under paragraph (1) a 
        Reclamation project that the Secretary determines is vitally 
        important for the interests of the United States or a 
        particular State, based on consideration of the effects of the 
        Reclamation project on--</DELETED>
                <DELETED>    (A) public health and safety;</DELETED>
                <DELETED>    (B) the economy; or</DELETED>
                <DELETED>    (C) the environment.</DELETED>
<DELETED>    (e) Deauthorization; Congressional Review.--Effective 
beginning on the date that is 1 year after the date of submission of 
the final deauthorization list under subsection (d), a Reclamation 
project included on the final deauthorization list under that 
subsection is deauthorized, unless, prior to that date--</DELETED>
        <DELETED>    (1) a joint resolution disapproving the final 
        deauthorization report is enacted into law;</DELETED>
        <DELETED>    (2) funding for the Reclamation project has been 
        provided by an Act of Congress; or</DELETED>
        <DELETED>    (3) the non-Federal sponsor of the Reclamation 
        project provides sufficient funds to complete the Reclamation 
        project.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Making Our communities Resilient 
through Enhancing Water for Agriculture, Technology, the Environment, 
and Residences Act'' or the ``MORE WATER Act''.

SEC. 2. REAUTHORIZATION OF LARGE-SCALE WATER RECYCLING AND REUSE 
              PROGRAM.

    Section 40905 of the Infrastructure Investment and Jobs Act (43 
U.S.C. 3205) is amended--
            (1) in subsection (b), by inserting ``feasibility studies 
        for and'' before ``the planning'';
            (2) in subsection (d)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``to an eligible project'' and inserting ``for 
                an eligible project, or for a feasibility study for an 
                eligible project,''; and
                    (B) in paragraph (4), by striking ``30'' and 
                inserting ``60''; and
            (3) in subsection (k)--
                    (A) by striking ``5'' and inserting ``10''; and
                    (B) by inserting ``, except for any project under 
                construction as of that date'' before the period at the 
                end.

SEC. 3. REAUTHORIZATION OF RECYCLING PROGRAM AND ENVIRONMENTAL 
              RESTORATION PROGRAM AND OFFSET.

    (a) Reauthorization of Water Recycling and Environmental 
Restoration Programs and Offset.--Section 4013 of the Water 
Infrastructure Improvements for the Nation Act (43 U.S.C. 390b note; 
Public Law 114-322) is amended--
            (1) in paragraph (1), by striking ``and'' at the end;
            (2) in paragraph (2), by striking ``in'' and inserting 
        ``under'';
            (3) by redesignating paragraph (2) as paragraph (3); and
            (4) by inserting after paragraph (1) the following:
            ``(2) the amendment made by section 4009(c), section 
        4010(b)(2), and subsections (a), (b), (c), (d), and (f) of 
        section 4011, which shall expire 15 years after that date of 
        enactment; and''.
    (b) Ceiling on Federal Share for Water Recycling Projects.--Section 
1631(d)(1) of the Reclamation Wastewater and Groundwater Study and 
Facilities Act (43 U.S.C. 390h-13(d)(1)) is amended by striking 
``$20,000,000 (October 1996 prices)'' and inserting ``$50,000,000 (in 
December 2025 prices, as automatically adjusted each January based on 
the percentage increase in the consumer price index for all urban 
consumers (United States city average) over the previous year, as 
published by the Bureau of Labor Statistics)''.
    (c) Actions for Benefit of Endangered Species, Important Habitat, 
and Water Bodies.--Section 4010(b) of the Water Infrastructure 
Improvements for the Nation Act (Public Law 114-322; 130 Stat. 1872) is 
amended by striking paragraph (2) and inserting the following:
            ``(2) Actions for benefit of endangered species, important 
        habitat, and water bodies.--The Secretary of the Interior 
        (acting through the Commissioner of Reclamation) may undertake 
        or enter into cooperative agreements to support activities 
        carried out during the period of fiscal years 2028 through 
        2032--
                    ``(A) for the restoration of habitat or improvement 
                of conditions at the Great Salt Lake and other saline 
                inland lakes affected by the operation of the Central 
                Utah Project or Bureau of Reclamation water projects or 
                deliveries, subject to the requirement that, in the 
                case of an activity to be carried out under this 
                subparagraph in the State of Utah, the activity may 
                only be carried out on the request of, and in agreement 
                with, the State of Utah;
                    ``(B) for--
                            ``(i) gravel and rearing area additions, 
                        fish passage improvements, barrier removal, and 
                        habitat restoration to the Sacramento River and 
                        its tributaries to benefit species listed as 
                        threatened or endangered under the Endangered 
                        Species Act of 1973 (16 U.S.C. 1531 et seq.), 
                        including Chinook salmon and steelhead trout;
                            ``(ii) scientifically improved and 
                        increased real-time monitoring to inform real-
                        time operations of Shasta Dam and Reservoir and 
                        related Central Valley Project facilities and 
                        alternative methods, models, and equipment to 
                        improve temperature modeling, science, and 
                        monitoring to support flow benefits for fish 
                        species, and related forecasted information for 
                        purposes of predicting impacts to salmon, 
                        salmon habitat, species listed as threatened or 
                        endangered under the Endangered Species Act of 
                        1973 (16 U.S.C. 1531 et seq.), or other species 
                        of concern as a result of water management at 
                        Shasta Dam and Reservoir and related Central 
                        Valley Project facilities;
                            ``(iii) aquatic habitat restoration 
                        activities, including floodplain reconnection 
                        and reactivation projects (such as off-channel 
                        and managed floodplain inundation projects that 
                        enhance biological productivity and food web 
                        support for fish);
                            ``(iv) fish hatchery modernization and 
                        construction projects on the Sacramento River 
                        and its tributaries; and
                            ``(v) structural improvements, including 
                        temperature control and associated facilities, 
                        necessary to implement activities described in 
                        clauses (i) through (iv); and
                    ``(C) for planning, design, scientific studies, 
                resource and biological monitoring, environmental 
                reviews, permitting, construction, implementation, and 
                adaptive management associated with any of the 
                activities described in subparagraphs (A) and (B).''.

SEC. 4. DEAUTHORIZATION OF INACTIVE PROJECTS OFFSET.

    (a) Purposes.--The purposes of this section are--
            (1) to establish an efficient and transparent process for 
        deauthorizing Reclamation projects that have failed to receive 
        a minimum level of investment to ensure active Reclamation 
        projects can move forward while reducing the backlog of 
        authorized Reclamation projects; and
            (2) to allow for exceptions for the deauthorization of 
        Reclamation projects under paragraph (1) based on--
                    (A) action by Congress;
                    (B) funding to completion by the non-Federal 
                project sponsor; or
                    (C) a finding by the Secretary that certain 
                Reclamation projects should continue to be authorized 
                to meet vitally important needs of a State or the 
                United States.
    (b) Definitions.--In this section:
            (1) Reclamation project.--The term ``Reclamation project'' 
        means a project that is--
                    (A) owned by the United States; and
                    (B) constructed and operated under the direction of 
                the Bureau of Reclamation.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior (acting through the Commissioner of 
        Reclamation).
    (c) Interim Deauthorization List.--Not later than 1 year after the 
date of enactment of this Act, the Secretary shall submit to the 
Committee on Energy and Natural Resources of the Senate and the 
Committee on Natural Resources of the House of Representatives and make 
available on a publicly accessible internet website in a manner that is 
downloadable, searchable, and sortable--
            (1) an interim deauthorization list of Reclamation 
        projects--
                    (A) that are authorized; and
                    (B) for which funding was not appropriated during 
                the fiscal year in which this Act is enacted or any of 
                the preceding 7 fiscal years; and
            (2) for each Reclamation project listed under paragraph 
        (1)--
                    (A) the date of authorization of the Reclamation 
                project, including any subsequent modifications to the 
                original authorization;
                    (B) a brief description of the Reclamation project;
                    (C) the estimated cost of completion of the 
                Reclamation project; and
                    (D) any remaining amounts authorized, but not 
                appropriated, for the Reclamation project.
    (d) Final Deauthorization List.--
            (1) In general.--Not later than 1 year after the date on 
        which the interim deauthorization list is submitted under 
        subsection (c), the Secretary shall submit to the Committee on 
        Energy and Natural Resources of the Senate and the Committee on 
        Natural Resources of the House of Representatives and make 
        available on a publicly accessible internet website in a manner 
        that is downloadable, searchable, and sortable, a final 
        deauthorization list of all Reclamation projects identified in 
        the interim deauthorization list, other than any Reclamation 
        project--
                    (A) for which funding has been provided by an Act 
                of Congress after the date of submission of the interim 
                deauthorization list; or
                    (B) that the Secretary excludes under paragraph 
                (2).
            (2) Exclusions.--The Secretary may exclude from the final 
        deauthorization list under paragraph (1) a Reclamation project 
        that the Secretary determines is vitally important for the 
        interests of the United States or a particular State, based on 
        consideration of the effects of the Reclamation project on--
                    (A) public health and safety;
                    (B) the economy; or
                    (C) the environment.
    (e) Deauthorization; Congressional Review.--Effective beginning on 
the date that is 2 years after the date of submission of the final 
deauthorization list under subsection (d), a Reclamation project 
included on the final deauthorization list under that subsection is 
deauthorized, unless, prior to that date--
            (1) a joint resolution disapproving the final 
        deauthorization report is enacted into law;
            (2) funding for the Reclamation project has been provided 
        by an Act of Congress; or
            (3) the non-Federal sponsor of the Reclamation project 
        provides sufficient funds to complete the Reclamation project.
                                                       Calendar No. 652

119th CONGRESS

  2d Session

                                S. 3738

_______________________________________________________________________

                                 A BILL

To amend the Infrastructure Investment and Jobs Act to reauthorize the 
  large-scale water recycling and reuse program, to establish a Water 
        Conveyance Improvement Program, and for other purposes.

_______________________________________________________________________

                           September 17, 2026

                       Reported with an amendment
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