Charles V. Stern and Anna E. Normand have authored and updated (27 June 2023) this CRS report: 'Bureau of Reclamation Funding in the Inflation Reduction Act (P.L. 117-169)'.
Download CRS_InFocus_Rpt_USBR_Funding_Inf_Red_Act_27June202
Click on the graphics to enlarge them.
In August 2022, Congress enacted P.L. 117-169, popularly known as the Inflation Reduction Act (IRA). Among its funding provisions, the law provided approximately $4.6 billion in mandatory appropriations for four new authorities of the Bureau of Reclamation (Reclamation, part of the Department of the Interior). IRA mandatory appropriations are available from FY2022 through FY2026 or FY2031 (depending on the provision). The majority of IRA funding is for drought mitigation in Reclamation States and territories, with priority given to the Colorado River and areas experiencing “long-term drought.”
Congress provided Reclamation’s IRA funding in addition to another major emergency supplemental appropriation, the Infrastructure Investment and Jobs Act (IIJA; P.L. 117- 58), enacted in November 2021. For its part, the IIJA included $8.3 billion in emergency supplemental appropriations for Reclamation, in equal installments from FY2022 to FY2026. The IIJA provided funding for 13 new and existing Reclamation authorities (Figure 1)
Previous Reclamation updates on IRA implementation have been compiled on Reclamation’s IRA website (https://www.usbr.gov/inflation-reduction-act/) and in the January 2023 White House Inflation Reduction Act Guidebook (https://www.whitehouse.gov/wp-content/ uploads/2022/12/Inflation-Reduction-Act-Guidebook.pdf).The remainder of this In Focus discusses Reclamation IRA funding for each of the four authorities receiving funds.
Drought Mitigation
Section 50233 of the IRA provided $4.00 billion in funding, available through FY2026, to mitigate drought in the 17 semiarid western Reclamation States (as authorized in the Reclamation Act of 1902). Reclamation is to make this funding available to public entities and Indian tribes in the form of grants, contracts, or financial assistance agreements. Congress also specified that priority for these funds shall be provided to the Colorado River Basin and other areas experiencing comparable “long-term drought.” Congress specified several potential uses of these funds:1. Compensation for a temporary or multiyear voluntary reduction in diversion of water or consumptive water use.
2. Voluntary system conservation projects that achieve verifiable reductions in use of or demand for water supplies or provide environmental benefits in the Lower Basin or Upper Basin of the Colorado River.
3. Ecosystem and habitat restoration projects to address issues directly caused by drought in a river basin or inland water body.
Colorado River Basin System Conservation and Efficiency Program
Reclamation has announced several programs in the Colorado River Basin to be funded by Section 50233 (Table 1). In October 2022, the bureau announced a new program, the Lower Colorado River Basin System Conservation and Efficiency Program, that expands on previous pilots of this concept. The first component (referred to as Component 1a) will pay Colorado River or Central Arizona Project (CAP) water delivery contract or entitlement holders a set amount per acre-foot over the next one to three years for efforts that will result in additional water in Lake Mead. Under the program, one-year agreements receive $330 per acre-foot, two-year agreements receive $365 per acre-foot, and three-yearDrought Mitigation
Section 50233 of the IRA provided $4.00 billion in funding, available through FY2026, to mitigate drought in the 17 semiarid western Reclamation States (as authorized in the Reclamation Act of 1902). Reclamation is to make this funding available to public entities and Indian tribes in the form of grants, contracts, or financial assistance agreements. Congress also specified that priority for these funds shall be provided to the Colorado River Basin and other areas experiencing comparable “long-term drought.” Congress specified several potential uses of these funds:1. Compensation for a temporary or multiyear voluntary reduction in diversion of water or consumptive water use.
2. Voluntary system conservation projects that achieve verifiable reductions in use of or demand for water supplies or provide environmental benefits in the Lower Basin or Upper Basin of the Colorado River.
3. Ecosystem and habitat restoration projects to address issues directly caused by drought in a river basin or inland water body.
Colorado River Basin System Conservation and Efficiency Program
Reclamation has announced several programs in the Colorado River Basin to be funded by Section 50233 (Table 1). In October 2022, the bureau announced a new program, the Lower Colorado River Basin System Conservation and Efficiency Program, that expands on previous pilots of this concept. The first component (referred to as Component 1a) will pay Colorado River or Central Arizona Project (CAP) water delivery contract or entitlement holders a set amount per acre-foot over the next one to three years for efforts that will result in additional water in Lake Mead. Under the program, one-year agreements receive $330 per acre-foot, two-year agreements receive $365 per acre-foot, and three-year
Reclamation announced other Colorado River allocations for this funding, including $250 million for Salton Sea restoration and $250 million for system conservation efforts in the Upper Colorado River Basin. Further, Reclamation has stated that it will soon develop programs for this funding to help mitigate the effects of drought in other Reclamation river basins. To date, it has not announced funding allocations for other basins.
Funding under this section of the IRA would supplement other Reclamation funding to mitigate drought in the Colorado River Basin, including funding available in the IIJA and through annual appropriations. To date, it is the only instance of funding for Reclamation contractors to forgo deliveries of federally delivered water. It is unclear whether the approach of paying contractors to forgo water deliveries will entail additional long-term funding (i.e., beyond that appropriated in the IRA). For more information on Colorado River drought mitigation, see CRS ReportR45546, Management of the Colorado River: Water Allocations, Drought, and the Federal Role.
Disadvantaged Community Domestic Water Supply ProjectsSection 50231 of the IRA contained $550.0 million, available through FY2031, for Reclamation to provide up to 100% of the cost for the planning, design, and/or construction of water projects where the primary purpose is to provide domestic water supplies to disadvantaged communities or households. Pursuant to this authority, Reclamation is to establish and adopt criteria to identify applicable disadvantaged communities or households in a Reclamation state or territory that do not have reliable access to domestic water supplies (43 U.S.C. §391). The funding mechanism may be via grants, contracts, or financial assistance agreements at a cost share determined by the Commissioner. In May 2023, Reclamation announced $5.5 million available to the U.S. territories of American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands for projects to provide domestic water supplies to communities that do not have reliable access to potable water. As of June 2023, Reclamation stated that it is developing a program for the remainder of this funding.
Solar Canal Improvements
Section 50232 of the IRA contained $25.0 million, available through FY2031, for the design, study, and implementation of pilot projects that would cover water conveyance facilities with solar panels. To date, these projects have not been implemented on a large scale in the United States, but they may have potential to meet dual goals of reducing evaporative losses and generating energy. Reclamation has stated that it is identifying pilot projects for this funding and expects to issue a funding announcement in summer 2023.Emergency Drought Relief for Tribes
Section 80004 of the IRA included $12.5 million, available through FY2026, for near-term relief actions to mitigate drought for Indian tribes “impacted by the operation of a Reclamation project.” Congress authorized Reclamation to make available funds in the form of direct financial assistance to (1) address drinking water shortages and (2) mitigate the loss of tribal trust resources, with no cost share required. Reclamation stated it will issue funding announcements under this authority in summer 2023 through its Native American Affairs Technical Assistance Program.
Enjoy!
"One of the great joys of this job is watching presidents hired from the business world get eaten alive by senior faculty, entrenched VPs,deans & other admins who don’t believe in taking orders,then watching state legislators & Board of Regents run him out of town." - @ass_deans
Comments