WaterSMART: Large-Scale Water Recycling Projects

The Bureau of Reclamation, under the U.S. Department of the Interior, has released a Notice of Funding Opportunity (NOFO) for its WaterSMART Large-Scale Water Recycling Projects. This program, referenced by Funding Opportunity Number R25AS00322, is a strategic initiative designed to foster large-scale water recycling efforts that improve water supply reliability and sustainability in drought-prone regions of the Western United States. With an estimated total federal program funding of $130 million, the program invites eligible applicants to cost-share up to 25% of total project costs on projects exceeding $500 million in value. The program is authorized by the Infrastructure Investment and Jobs Act (Public Law 117-58, Section 40905), and aims to reduce reliance on imported water supplies, increase drought resilience, and address pressing water management challenges. Through this opportunity, Reclamation seeks to partner with state, tribal, municipal, and other water-related agencies to support planning, design, and construction activities related to water recycling infrastructure. These projects may involve the reclamation and reuse of municipal, industrial, domestic, or agricultural wastewater, or impaired groundwater or surface water, provided they meet the cost threshold and are located in eligible western states. Eligible applicants include states, tribes, municipalities, water and wastewater districts, and agencies or organizations with water delivery authority in specific western states: Arizona, California, Colorado, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, and Wyoming. Federal entities, foreign entities, individuals, and institutions of higher education are not eligible. All applicants must provide at least 75% of total project costs from non-federal sources, meeting the cost-sharing requirement. The application process includes required registrations with SAM.gov and Grants.gov. Applicants must submit standard forms (SF-424, SF-424A, and, if applicable, SF-LLL), a project abstract summary, and a detailed project narrative. The project narrative must address merit review criteria such as water supply impact, environmental benefits, economic justification, alignment with federal priorities, and readiness for construction. The narrative should not exceed 40 pages and must be accompanied by budget justification and support letters, where applicable. The feasibility study must also be submitted by April 13, 2026, and reviewed by Reclamation before funding decisions are finalized. Applications must be submitted via Grants.gov by May 13, 2026, at 4:00 p.m. Mountain Daylight Time. Reclamation anticipates making award decisions approximately six months after the closing date, with project performance periods not to exceed three years. Projects are expected to begin by May 13, 2027, and conclude by May 13, 2030. Projects involving construction will be subject to Buy America provisions, Davis-Bacon wage requirements, and comprehensive environmental and cultural compliance procedures. Recipients are also responsible for performance and financial reporting in accordance with 2 CFR 200. The program is structured to allow technical assistance and emphasizes collaboration with local Reclamation offices to ensure projects meet compliance and design standards. A post-selection webinar will be held for awarded applicants, and the agency reserves the right to publish successful proposals. For questions about application requirements, contact [email protected]. For project-specific inquiries, the Program Coordinator, Maribeth Menendez ([email protected], 303-445-2094), serves as the primary point of contact.

Address each merit criterion in full; Align with water supply sustainability, environmental impact, and cost-effectiveness priorities; Ensure feasibility study is Reclamation-compliant before applying