The Bureau of Reclamation (Reclamation) is accepting applications for the WaterSMART Water and Energy Efficiency Grants for fiscal years 2024 and 2025, to support projects aimed at increasing water savings, promoting renewable energy, and bolstering sustainability in the western United States. With the overarching goal of addressing water scarcity and climate resilience, this program seeks to fund projects that conserve water, improve water management, and integrate renewable energy within water infrastructure. Applications are evaluated in two cycles: proposals for FY 2024 funding are due by February 22, 2024, and for FY 2025 funding by November 13, 2024.

Eligible applicants for these grants include two primary categories. **Category A** consists of entities with water or power delivery authority in the Western U.S., including state and local governments, Indian tribes, irrigation and water districts, and similar organizations. **Category B** includes nonprofit conservation organizations working in partnership with a Category A entity. Applicants must be located within specified Western states and U.S. territories. Ineligible applicants include federal agencies, individuals, and higher education institutions. A 50% cost-share requirement applies, except for certain U.S. territories, which are exempt from this obligation.

The program offers three funding tiers: **Group I** projects can receive up to $500,000 for completion within two years, **Group II** projects up to $2 million for completion in three years, and **Group III** projects up to $5 million, also for three years. The program emphasizes cost-sharing, where recipients must fund at least half of the total project cost through non-federal sources, which may include cash contributions or in-kind services. Award decisions are expected by December 2024 and October 2025, depending on the funding cycle, with project completion deadlines extending to late 2026 and 2028.

Eligible project types under this grant include water conservation measures (e.g., canal lining, municipal metering, irrigation flow measurement, SCADA automation, high-efficiency fixtures, and landscaping measures for water savings) and renewable energy projects related to water management, such as installing hydropower, solar, or wind systems to replace fossil-fuel-powered pumps. Projects involving federal infrastructure must meet additional requirements, and renewable energy projects often need specific permits, such as those from the Federal Energy Regulatory Commission (FERC). Ineligible projects include routine maintenance, water reclamation, municipal injection wells, and projects centered around surface or groundwater storage primarily for agricultural purposes.

Applications must include several mandatory components, including federal standard forms (SF-424, SF-424A, SF-424D), a technical proposal, and a budget narrative. Recommended components include environmental compliance details, permit requirements, and documentation of cost-sharing commitments. Additionally, Category B applicants must submit a letter of partnership from their Category A collaborator, affirming support and involvement in the project. Submissions must be made via Grants.gov.

Grant applications will be evaluated based on criteria such as the technical effectiveness of proposed water and energy savings, alignment with the Justice40 Initiative for benefiting disadvantaged communities, and collaborative potential with the USDA’s Natural Resources Conservation Service (NRCS). Projects that support on-farm efficiency improvements through NRCS’s Environmental Quality Incentives Program (EQIP) will receive additional evaluation consideration. Reclamation may provide technical assistance to awardees, with associated costs to be discussed during the application process.

These grants support efforts to mitigate water scarcity challenges and encourage sustainable water management practices across western regions facing significant drought and climate-related risks. Interested applicants should consult the WaterSMART FAQs and relevant contacts provided by Reclamation to ensure compliance with the program’s requirements and deadlines.