Opportunity Information: Apply for R23AS00433

The WaterSMART: Large-Scale Water Recycling Projects grant opportunity (FY 2023 and FY 2024) is a Bureau of Reclamation funding program under the U.S. Department of the Interior designed to help communities stretch limited water supplies, reduce drought vulnerability, and improve long-term water reliability in the Western United States. It sits within the broader WaterSMART framework, which focuses on federal leadership and partnership-driven investments that help avoid conflicts over scarce water by leveraging both federal and non-federal funding. The core idea is to support projects that turn wastewater or other currently underused water sources into reliable new supplies for urban and agricultural users, improving overall system efficiency and resilience as climate pressures intensify.

This funding is provided through the Title XVI Water Reclamation and Reuse Program, originally authorized by Public Law 102-575 in 1992. Title XVI is aimed at providing financial and technical support to local water agencies for planning, design, and construction of water reclamation and reuse projects. In practical terms, this means helping communities build or expand infrastructure that treats and reuses water to supplement existing supplies. The program emphasizes that recycled water can add flexibility during shortages, diversify a region's portfolio of water sources, and create a more dependable supply for growing communities.

What makes this particular opportunity distinct is its focus on very large, capital-intensive recycling efforts. Under the Large-Scale Water Recycling Program, Reclamation can provide up to 25 percent federal cost share for eligible projects, and there is no stated per-project maximum federal contribution. To qualify as "large-scale" under this notice, a project must have a total project cost of at least $500 million. The intent is to support major, high-impact recycling investments that can deliver drought-resistant supplies by converting water that would otherwise be unusable into a dependable resource that is less sensitive to drought and climate change than traditional surface or imported supplies.

Administratively, this is a discretionary funding opportunity administered by the Bureau of Reclamation (CFDA 15.504) and awards may be made as grants or cooperative agreements. The opportunity number is R23AS00433. The posted award ceiling is $180,000,000, and the agency anticipates making around 10 awards. Eligibility is listed broadly as "Others," with the note that applicants should consult the notice's additional eligibility details (typically where Reclamation clarifies which types of local water agencies, districts, or other entities can apply and under what conditions).

The notice is structured as a rolling NOFO with three application submittal periods and a final closing date of September 30, 2024. The first deadline was November 21, 2023 at 4:00 p.m. MST. The second deadline is March 29, 2024 at 4:00 p.m. MDT, and applications submitted after the first deadline and before the second are considered in that second review window. The third and final deadline is September 30, 2024 at 4:00 p.m. MDT, and applications submitted after March 29 and before the final date are reviewed in that last period. This rolling structure allows applicants to submit when they are ready rather than waiting for a single annual deadline, while still grouping submissions into review cycles.

From a policy standpoint, the opportunity is also tied to broader federal climate and equity priorities. The notice explicitly aligns with Executive Order 14008 on tackling the climate crisis and Executive Order 13985 on advancing racial equity and support for underserved communities. It also supports the Justice40 Initiative, which sets a goal that 40 percent of the overall benefits of certain categories of federal investments, including climate-related investments, flow to disadvantaged communities. In effect, Reclamation is signaling that it is looking for projects that not only deliver large volumes of recycled water and improve drought resilience, but also demonstrate meaningful community benefits and equitable outcomes, particularly for communities that have historically faced disproportionate environmental and infrastructure burdens.

Overall, this opportunity is aimed at major water recycling construction efforts that can materially change regional supply conditions by adding a substantial new source of reliable water. It is best suited for applicants with large, well-developed projects that can meet the $500 million minimum total cost threshold, assemble significant non-federal matching funds (given the 25 percent federal cost share cap), and clearly document how the project advances drought resilience, climate adaptation, and community benefit goals consistent with WaterSMART, Title XVI, and Justice40 priorities.

  • The Department of the Interior, Bureau of Reclamation in the natural resources sector is offering a public funding opportunity titled "WaterSMART: Large-Scale Water Recycling Projects for Fiscal Years 2023 and 2024" and is now available to receive applicants.
  • Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 15.504.
  • This funding opportunity was created on Oct 25, 2023.
  • Applicants must submit their applications by Sep 30, 2024 This Rolling NOFO will have three Application Submittal Periods with a final closing on September 30, 2024. The due dates are for each closing period 1) First Application Submittal Period due date is November 21, 2023, at 400 p.m. Mountain Standard Time (MST). 2) Second Application Submittal Period due date is March 29, 2024, 400 p.m. MDT. Applications received after November 21, 2023, 400 p.m. MST and before March 29, 2024, 400 p.m. MDT, will be considered for the Second Submittal Period. 3) Third and Final Application Submittal Period due date is September 30, 2024, 400 p.m. MDT. Applications received after March 29, 2024, 400 p.m. MDT and before September 30, 2024, 400 p.m. MDT will be considered for the third and Final Submittal Period.. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
  • Each selected applicant is eligible to receive up to $180,000,000.00 in funding.
  • The number of recipients for this funding is limited to 10 candidate(s).
  • Eligible applicants include: Others (see text field entitled Additional Information on Eligibility for clarification).
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