Frequently Asked Questions

Overview

Q. What are the objectives of the WaterSMART Program?
A. The U.S. Department of the Interior’s (Department) WaterSMART (Sustain and Manage America’s Resources for Tomorrow) Program provides a framework for Federal leadership and assistance to stretch and secure water supplies for future generations in support of the Department’s priorities. Through WaterSMART, the Bureau of Reclamation (Reclamation) leverages Federal and non-Federal funding to work cooperatively with States, Tribes, and local entities as they plan for and implement actions to increase water supply sustainability through investments in existing infrastructure and attention to local water conflicts.

Funding

Q. How much funding is available for FY 2022 WaterSMART Water and Energy Efficiency Grants, Drought Resiliency Projects, and Environmental Water Resources Projects?
A. Reclamation will determine the final amount of funding available for award for these funding opportunities once final FY 2022 appropriations have been made. Any awards are subject to a determination by Reclamation that FY 2022 appropriations are available and that awards can be made consistent with all program requirements. The maximum amount of Federal funding an entity may receive under each funding opportunity is $2,000,000.

Eligibility

Q. Who is eligible to apply for WaterSMART Water and Energy Efficiency Grants, Drought Resiliency Projects, and Environmental Water Resources Projects funding?

Eligible applicants under the Water and Energy Efficiency Grants and Drought Resiliency Projects funding opportunities include:

Category A applications:

  • States, Tribes, irrigation districts, and water districts,
  • State, regional, or local authorities, the members of which include one or more organizations with water or power delivery authority; and
  • Other organizations with water or power delivery authority.

Category B applications:

  • Nonprofit conservation organizations that are acting in partnership with, and with the agreement of, an entity described in Category A. Category B applicants must include with their application a letter from the Category A partner, stating that they are acting in partnership with the applicant and agree to the submittal and content of the proposal
Eligible applicants under the Environmental Water Resources Projects funding opportunity include:

Category A applications:

  • States, Tribes, irrigation districts, and water districts,
  • State, regional, or local authorities, the members of which include one or more organizations with water or power delivery authority; and
  • Other organizations with water or power delivery authority.

Category B applications: Nonprofit conservation organizations, including watershed groups as defined in the Cooperative Watershed Management Act, Section 6001 (see Section C.2. Watershed Group Definition), that are acting in partnership with and with the agreement of an entity described in Category A. Category B applicants must include with their application a letter from the Category A partner stating that the Category A partner

  1. is acting in partnership with the applicant
  2. agrees to the submittal and content of the application; and
  3. intends to participate in the project in some way, for example, by providing input, feedback, or other support for the project.

Note: Partners do not necessarily need to contribute cost-share funding. In addition, a watershed group is eligible to apply for 50 percent cost-shared funding without other partners but must include a Category A partner to be eligible for 75 percent Federal funding.

Category C applicants: Nonprofit conservation organizations submitting an application for a project to improve the condition of a natural feature such as wetlands on Federal land without a Category A partner must demonstrate that entities described in Category A from the applicable service area have been notified and do not object to the project.

Applicants must also be located in the Western United States or Territories as identified in the Reclamation Act of June 17, 1902, as amended and supplemented; specifically: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming, American Samoa, Guam, the Northern Mariana Islands, the Virgin Islands, and Puerto Rico.

Proposal Development and Selection Process

Q. Will Reclamation advise a potential applicant on the merits of its proposed project?
A. No. Reclamation will not pre-screen, validate, or otherwise discuss the substantive aspects of a proposal. It is up to the applicant to determine whether a proposal aligns with the objectives and criteria of the grant.

Q. How do I determine which funding opportunity is the best fit for a proposed project?
A. The Water and Energy Efficiency Grants funding opportunity provides funding for projects that result in quantifiable water savings, implement renewable energy components, and support broader sustainability benefits. These projects conserve and use water more efficiently; increase the production of renewable energy; mitigate conflict risk in areas at a high risk of future water conflict; and accomplish other benefits that contribute to sustainability in the Western United States.

Through the Drought Resiliency Projects funding opportunity, Reclamation provides funding for projects that increase water supply flexibility and improve water management to build long term resilience to drought and are supported by an existing drought contingency plan.

The Environmental Water Resources Projects funding opportunity supports projects focused on environmental benefits and that have been developed as part of a collaborative process to help carry out an established strategy to increase the reliability of water resources. Projects under this new category of funding may be eligible for up to 75% Federal funding. Eligible projects include water conservation and efficiency projects that result in quantifiable and sustained water savings and benefit ecological values, water management or infrastructure improvements to mitigate drought-related impacts to ecological values, and watershed management or restoration projects benefitting ecological values that have a nexus to water resources or water resources management.

Sponsors of projects with environmental benefits, which would have previously fit under the Drought Resiliency Projects, Water and Energy Efficiency Grants, or Cooperative Watershed Management Program Phase II funding opportunities, should consider applying under the new Environmental Water Resources Projects funding opportunity. Please contact the Program Coordinator identified in Section G. Agency Contact of each funding opportunity with questions regarding which funding opportunity is the best fit for your project.

Q. May an applicant that received funding last year submit a new proposal in FY 2022?
A. Yes, so long as the new proposal is not for the same work funded the prior year.

Q. If I submitted a proposal for funding in previous years that was not selected for funding, can I re-submit that proposal in FY 2022?
A. Yes. However, it is recommended that you review the FY 2022 funding opportunity and related guidance to ensure that your proposal meets the mandatory requirements and program objectives.

Cost-Share Requirements

Q. What amount of non-Federal cost share is required?
A. Applicants must provide at least 50% of the total project costs from non-Federal sources, either in cash or as in-kind contributions, to apply under the Water and Energy Efficiency Grant and the Drought Resiliency Projects. Applications submitted under the Environmental Water Resources Projects Funding Opportunity that are focused on environmental benefits and that meet other requirements may be eligible for up to 75% Federal funding.

Q. How should the recipient plan for Environmental and Cultural Resources compliance costs?

Every project funded under the WaterSMART Program will have environmental and cultural resources compliance activities undertaken by Reclamation and the recipient.

Water and Energy Efficiency Grants and Drought Resiliency Projects funding opportunities:

Depending on the potential impacts of the project, Reclamation may be able to complete its compliance activities without additional cost to the recipient. Where environmental or cultural resources compliance requires significant participation by Reclamation, costs incurred by Reclamation will be added as a line item to the budget during development of the financial assistance agreement and cost shared accordingly (i.e., withheld from the Federal award amount). Any costs to the recipient associated with compliance will be identified during the process of developing a final project budget for inclusion in the financial assistance agreement.

Environmental Water Resources Projects funding opportunity:

Some of the projects funded under this funding opportunity typically incur relatively high compliance costs (e.g., between $30,000 and $90,000 per project). Please contact your local Reclamation office to discuss the potential compliance requirements for your project and the associated costs. Based on these conversations, include a line item in your budget for Reclamation’s costs associated with compliance activities and a separate line item for any compliance activities that will need to be completed by a contractor, if applicable. It is anticipated that these compliance costs will be cost shared like all other project costs between Reclamation and the recipient. In some cases, Reclamation may be able to complete a portion of its compliance activities without additional cost to the recipient.

Last Updated: 11/6/23