[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3738 Introduced in Senate (IS)]
<DOC>
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
_______________________________________________________________________
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,
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 (a)--
(A) by redesignating paragraphs (1) through (4) as
paragraphs (2) through (5), respectively; and
(B) by inserting before paragraph (2) (as so
redesignated) the following:
``(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'.'';
(2) by striking subsection (b) and inserting the following:
``(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.'';
(3) in subsection (d)(4), by striking ``30'' and inserting
``60'';
(4) in subsection (k)--
(A) by striking ``The authority'' and inserting the
following:
``(1) In general.--Except as provided in paragraph (2), the
authority'';
(B) in paragraph (1) (as so designated), by
striking ``5'' and inserting ``10''; and
(C) by adding at the end the following:
``(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
(5) by adding at the end the following:
``(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.''.
SEC. 3. WATER CONVEYANCE IMPROVEMENT PROGRAM.
(a) Definitions.--In this section:
(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.
(2) Eligible entity.--The term ``eligible entity'' means--
(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;
(B) a State, regional, or local authority, the
members of which include 1 or more organizations that--
(i) have water or power delivery authority;
or
(ii) are responsible for operating
conveyance facilities as a transferred works
under the reclamation laws and Bureau of
Reclamation policy;
(C) an agency established under State law for the
joint exercise of powers; and
(D) any combination of entities described in
subparagraphs (A) through (C).
(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).
(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.
(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:
(A) Safe drinking water benefits for low-income
communities.
(B) Environmental benefits.
(6) Program.--The term ``Program'' means the Water
Conveyance Improvement Program established under subsection
(b).
(7) Project proponent.--The term ``project proponent''
means an eligible entity that--
(A) plans and develops a non-Federal conveyance
project; or
(B) operates an existing Reclamation project that
is a transferred works.
(8) Project sponsor.--The term ``project sponsor'' means an
eligible entity that contributes to the non-Federal share of a
conveyance project.
(9) Reclamation project.--The term ``Reclamation project''
means a Bureau of Reclamation project that is owned by the
United States.
(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).
(11) Safe drinking water.--The term ``safe drinking water''
means water that meets all applicable Federal and State primary
and secondary drinking water standards.
(12) Secretary.--The term ``Secretary'' means the Secretary
of the Interior (acting through the Commissioner of
Reclamation).
(13) Stakeholder.--The term ``stakeholder'' means--
(A) with respect to safe drinking water benefits
for low-income communities--
(i)(I) an elected executive official with
applicable authority or legislative body
representing a low-income community (or a
delegate); and
(II) any agency exercising primary
enforcement responsibility for public water
systems in the State in which the applicable
project is located;
(ii) an Indian Tribe receiving safe
drinking water benefits; or
(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--
(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
(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
(B) with respect to environmental benefits--
(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--
(I) a demonstrated track record of
supporting environmental restoration in
the region of the applicable project,
including species or species habitat;
and
(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
(ii) an Indian Tribe, if the project is
within the current or former reservation or
aboriginal territory of the Indian Tribe.
(14) Water supply benefit.--The term ``water supply
benefit'' means--
(A) an irrigation benefit;
(B) a general drinking water benefit; and
(C) operational flexibility that allows the Bureau
of Reclamation to provide multiple benefits, including
any of the benefits described in subparagraphs (A) and
(B).
(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.
(c) Reclamation-Led Conveyance Projects.--
(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.
(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--
(A) determines that the conveyance project is
feasible in accordance with the reclamation laws; and
(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).
(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.
(d) Non-Federal Conveyance Projects.--
(1) Proposal.--
(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.
(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).
(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--
(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--
(i) is technically and financially
feasible; and
(ii) is consistent with applicable Federal
and State law;
(B) the project proponent has sufficient non-
Federal funding available to complete the conveyance
project, as determined by the Secretary;
(C) the project proponent is financially solvent,
as determined by the Secretary; and
(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.
(e) Cost-Sharing Requirement.--
(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.
(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--
(A) solely for water supply benefits; or
(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--
(i) water supply benefits;
(ii) safe drinking water benefits for low-
income communities;
(iii) environmental benefits; or
(iv) other benefits in accordance with the
reclamation laws.
(3) Multi-benefit projects.--In the case of a multi-benefit
project funded under this section--
(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
(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--
(i) quantified, significant safe drinking
water benefits for low-income communities in
accordance with subsection (f)(2)(A);
(ii) quantified, significant environmental
benefits described in subsection (f)(3); or
(iii) a combination of the benefits
described in clauses (i) and (ii).
(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.
(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--
(A) cash;
(B) in-kind contributions;
(C) reimbursable funding allocated pursuant to any
statutory authority, if the eligible entity has entered
into a repayment contract for the funding;
(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;
(E) amounts made available from a State revolving
fund pursuant to the rules of the applicable State; or
(F) other non-Federal sources of funding, including
State funding.
(f) Special Provisions Applicable to Multi-Benefit Projects.--
(1) Requirement.--
(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.
(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.
(2) Description of safe drinking water benefits for low-
income communities.--
(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--
(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