H.R. 3723 — what changed

Section 4(a) of the Water Desalination Act of 1996 (42 U.S.C. 10301 note; Public Law 104–298) is amended by striking the second paragraph (1) (relating to projects) and inserting the following:

“(2) Projects

changed “(A) Definition of eligible desalination project—In Definitions—In this paragraph, the term eligible desalination project means any project located in a Reclamation State that—paragraph:

changed “(i) involves an ocean or brackish water Eligible desalination facility—project—The term “eligible desalination project” means any project located in a Reclamation State that—

changed “(I) constructed, operated, and maintained by a State, Indian Tribe, irrigation district, water district, involves an ocean or other organization with brackish water or power delivery authority; ordesalination facility—

changed “(II) sponsored or funded “(aa) constructed, operated, and maintained by any State, department of a State, subdivision of a State, Indian Tribe, irrigation district, water district, or public agency organized pursuant to State law, including—other organization with water or power delivery authority; or

changed “(aa) direct sponsorship “(bb) sponsored or funding; orfunded by a State, department of a State, political subdivision of a State, or public agency organized pursuant to State law, including through—

changed “(bb) indirect “(AA) direct sponsorship or funding, such as by paying for the water provided by the facility;funding; or

changed “(ii) provides a Federal benefit in accordance with “(BB) indirect sponsorship or funding, such as by paying for the reclamation laws; water provided by the facility; and

changed “(iii) is consistent with all applicable State and “(II) provides a Federal resource protection laws including benefit in accordance with the protection of marine protected areas.reclamation laws.

changed “(B) Federal share—Subject to the requirements of this paragraph, the Secretary may participate in “(ii) Rural desalination project—The term “rural desalination project” means an eligible desalination project in an amount equal that is designed to serve a community or group of communities, each of which has a population of not more than 25 percent of the total cost of the eligible desalination project.40,000 inhabitants.

added “(B) Cost-sharing requirement

added “(i) In general—Subject to the requirements of this subsection and notwithstanding section 7, the Federal share of an eligible desalination project carried out under this subsection shall be—

added “(I) not more than 25 percent of the total cost of the eligible desalination project; or

added “(II) in the case of a rural desalination project, the applicable percentage determined in accordance with clause (ii).

added “(ii) Rural desalination projects

added “(I) Cost-sharing requirement for appraisal studies—In the case of a rural desalination project carried out under this subsection, the Federal share of the cost of appraisal studies for the rural desalination project shall be—

added “(aa) 100 percent of the total costs of the appraisal studies, up to $200,000; and

added “(bb) if the total costs of the appraisal studies are more than $200,000, 50 percent of any amounts over $200,000.

added “(II) Cost-sharing requirement for feasibility studies—In the case of a rural desalination project carried out under this subsection, the Federal share of the cost of feasibility studies for the rural desalination project shall be not more than 50 percent.

added “(III) Cost-sharing requirement for construction costs—In the case of a rural desalination project carried out under this subsection, the Federal share of the cost of construction of the rural desalination project shall not exceed the greater of —

added “(aa) 35 percent of the total cost of construction, up to a Federal cost of $20,000,000; or

added “(bb) 25 percent of the total cost of construction.

“(C) State role—Participation by the Secretary in an eligible desalination project under this paragraph shall not occur unless—

“(i)

“(I) the eligible desalination project is included in a State-approved plan; or

“(II) the participation has been requested by the Governor of the State in which the eligible desalination project is located; and

“(ii) the State or local sponsor of the eligible desalination project determines, and the Secretary concurs, that—

“(I) the eligible desalination project—

“(aa) is technically and financially feasible;

“(bb) provides a Federal benefit in accordance with the reclamation laws; and

“(cc) is consistent with applicable State laws, State regulations, State coastal zone management plans and other State plans such as California’s Water Quality Control Plan for the Ocean Waters in California;

“(II) sufficient non-Federal funding is available to complete the eligible desalination project; and

“(III) the eligible desalination project sponsors are financially solvent; and

“(iii) the Secretary submits to Congress a written notification of the determinations under clause (ii) by not later than 30 days after the date of the determinations.

“(D) Environmental laws—In participating in an eligible desalination project under this paragraph, the Secretary shall comply with all applicable environmental laws, including, but not limited to, the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and State laws implementing the Coastal Zone Management Act.

“(E) Information—In participating in an eligible desalination project under this subsection, the Secretary—

“(i) may rely on reports prepared by the sponsor of the eligible desalination project, including feasibility or equivalent studies, environmental analyses, and other pertinent reports and analyses; but

“(ii) shall retain responsibility for making the independent determinations described in subparagraph (C).

“(F) Funding

added “(i) Authorization of appropriations—There is authorized to be appropriated to carry out this paragraph $260,000,000 for the period of fiscal years 2021 through 2025, of which not less than $15,000,000 shall be made available during that period for rural desalination projects.

removed “(i) Authorization of appropriations—There is authorized to be appropriated to carry out this paragraph $260,000,000 for the period of fiscal years 2020 through 2024.

“(ii) Congressional approval initially required

“(I) In general—Each initial award under this paragraph for design and study or for construction of an eligible desalination project shall be approved by an Act of Congress.

“(II) Reclamation recommendations—The Commissioner of Reclamation shall submit recommendations regarding the initial award of preconstruction and construction funding for consideration under subclause (I) to—

“(aa) the Committee on Appropriations of the Senate;

“(bb) the Committee on Energy and Natural Resources of the Senate;

“(cc) the Committee on Appropriations of the House of Representatives; and

“(dd) the Committee on Natural Resources of the House of Representatives.

added “(iii) Subsequent funding awards—After approval by Congress of an initial award of preconstruction or construction funding for an eligible desalination project under clause (ii), the Commissioner of Reclamation may award additional preconstruction or construction funding, respectively, for the eligible desalination project without further congressional approval.

added “(G) Total dollar cap—The Secretary shall not impose a total dollar cap on Federal contributions for individual desalination projects receiving funding under this paragraph.”

removed “(iii) Subsequent funding awards—After approval by Congress of an initial award of preconstruction or construction funding for an eligible desalination project under clause (ii), the Commissioner of Reclamation may award additional preconstruction or construction funding, respectively, for the eligible desalination project without further congressional approval.”