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WaterSMART: Large-Scale Water Recycling Projects

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Grant Insights

The purpose of the WaterSMART: Large-Scale Water Recycling Projects program is to provide funding for the planning, design, and construction of Large-Scale Water Recycling Projects; these projects will play an important role in helping communities develop local, drought-resistant sources of water supply by turning currently unusable water sources into a new source of water supply that is less vulnerable to drought and climate change. Program funds are authorized through the Infrastructure Investment and Jobs Act (IIJA). 

The DOI seeks to fund projects that advance the Departmental’s and Presidential Administration’s priorities of increasing water supply sustainability, combating the climate crisis, advancing investment equity in disadvantaged or underserved communities, and strengthening Tribal sovereignty. 

Key Updates U.S. Department of the Interior –  Bureau of Reclamation 
Funding Opportunity
WaterSMART: Large-Scale Water Recycling Projects

NOFO Release Date 09/06/2024 
Application Due Date Period 3: 11/26/2024 by 4:00 p.m. MDT via www.Grants.gov 
# of Programs

Stage 1: Planning 
Stage 2: Design – 30% 
Stage 3: Design – 100% 
Stage 4: Construction 

Total Funding Available  $180,000,000 
Award Minimum N/A
Award Maximum $180,000,000 (based on a maximum of 25% of the expected total project cost) 
Recipient Cost-Share/Match Requirements: A non-Federal cost-share of 75% or more of total project costs is required. 
Summary

Planning, design, and construction activities for water recycling projects that have a total project cost greater than or equal to $500,000,000 are eligible activities: 

Stage 1: Activities that support the development of a feasibility-level design and cost estimate for the selected project.

  • Preparation of appraisal and feasibility-level cost estimates
  • Site-specific investigations to gather design data
  • Pre-final design activities that contribute to a feasibility-level design and cost estimate
  • Collect data and prepare documentation for environmental compliance reviews 

Stage 2: Begins after the feasibility-level planning stage and includes design activities required to reach a 30% final design. 

  • Value engineering activities, including the preparation of a Value Engineering Accountability Report, are eligible activities during this stage. 

Stage 3: Begins after 30% final design, which may include Value Engineering (if applicable), and includes design activities required to reach 100% final design. 

Stage 4: All phases of construction for Large-Scale Water Recycling Projects. 

Eligible Applicants
  • States; Indian Tribes; Municipalities; Irrigation Districts; Water Districts; Wastewater Districts; and any state, regional, or other organization with water or power delivery authority; 
  • State, Regional, or Local Authorities, the members of which include one or more organizations with water or power delivery authority; and  
  • An agency established under State law for the joint exercise of powers, or a combination of entities described above.
*Multiple applications for funding may be submitted for consideration under this funding opportunity, provided that the project scopes are not duplicative. 

**See Section C.1. of NOFO for specific location restrictions to applicant eligibility. 
Special Consideration
  • All applicants are requested to submit their Feasibility Study to Reclamation within 60 days of the application’s submittal period deadline (i.e., Application Deadline: 11/26/2024; thus, Feasibility Study Submittal Deadline: 01/25/2025). 
  • Feasibility Studies must meet the requirements in Reclamation’s Directives and Standards WTR 11-01 and additional requirements in WTR TRMR-128. 
  • To the extent possible, environmental compliance will be completed before a financial assistance agreement is signed by the parties. However, under each stage, collecting data and preparing documentation in support of environmental compliance reviews are also eligible project activities.  
  • Evaluation criteria includes the extent to which the project demonstrates support for the Presidential Administration’s priorities of Climate Change, serving Disadvantaged or Underserved Communities, and Tribal Benefits. 
  • All Design and Construction applicants are required to submit additional information for a Design and Cost Estimating Review within 60 days of the application deadline. 
  • Projects that proceed from one stage to the next during the period of the project performance will be required to submit documentation supporting a Design and Cost Estimate Review before funding will be made available for the next stage. 
  • All applicants and projects must comply with the National Environmental Policy Act (NEPA), Clean Water Act (CWA), National Historic Preservation Act (NHPA), Endangered Species Act (ESA), Davis-Bacon Act, and the Build America Buy America Act (when necessary, recipients may apply for, and DOI may grant, a waiver for the Build America Buy America Act, subject to review by the Made in America Office). 
Notes

Proposals may include requests for funding of activities at more than one stage. 
The costs for preparing and submitting an application or feasibility studies are not eligible project costs. 
By request, Reclamation can provide technical assistance after the award of a project; assistance should be discussed with Reclamation staff prior to applying. 

Contact Information

Title: Reclamation Financial Assistance Contact - USBR 
Name: Chandrika Nasstrom – cnasstrom@usbr.gov 
Title: Reclamation Program Coordinator Contact - USBR 
Name: Maribeth Menendez – mmenendez@usbr.gov; and (303) 445-2094 
*Please include the NOFO number R23AS00433 in the subject* 

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