Small Surface Water and Groundwater Storage Projects (Small Storage Program)

The U.S. Department of the Interior, through the Bureau of Reclamation (Reclamation) administers a competitive grant program for small water storage and groundwater storage projects, authorized by Section 40903 of the Infrastructure Investments and Jobs Act (2021), Public Law 117-58. Reclamation administers the Small Surface and Groundwater Storage Program (Small Storage Program) to enhance water storage opportunities for future generations in support of the Department’s priorities. This Notice of Funding Opportunity (NOFO) Reclamation supports stakeholder efforts to stretch scarce water supplies and avoid conflicts over water in the 17 western states, Alaska, and Hawaii. Reclamation invites sponsors of small surface water and groundwater storage projects to request cost-shared funding for the planning, design, and/or construction of those projects. Water storage projects are an important part of Reclamation and the Department’s priorities. The Secretary of the Interior gives priority to proposals that meet one or more of the following criteria: Projects that will provide a more reliable water supply for States, Indian Tribes, and local governments. Projects that will increase water management flexibility and reduce impacts on environmental resources from projects operated by Federal and State agencies. Projects that are regional in nature. Projects with multiple stakeholders. Projects that will provide multiple benefits, including water supply reliability, ecosystem benefits, groundwater management and enhancements, and water quality improvements. The Small Storage Program's objective is to enhance water storage opportunities for future generations by funding small surface water and groundwater storage projects. The program funds up to a 25% Federal cost-share to plan, design, and construct surface and groundwater storage projects between 200 and 30,000 acre-feet that will increase water storage or move water to or from a storage project. To be eligible, proposals must: Have water storage capacity between 200 acre-feet and 30,000 acre-feet;Increase yield to identified beneficiaries;Increase surface water or groundwater storage, or convey water to or from surface water or groundwater storage; andSubmit a small storage feasibility study to Reclamation for review by February 13, 2026. The small storage feasibility study must be found by Reclamation to meet the requirements of CMP TRMR-127 prior to initiation of the Merit Review. Eligible recipients of the Small Storage Program funding are identified under the 1902 Act. They must be located in the 17 western United States (Reclamation State) as identified in the Reclamation Act of 1902, as amended or Alaska or Hawaii. Eligible recipients include: State, regional, or local water authorities;Indian tribes or tribal organizations; orOther entities such as a water conservation or conservancy district, wastewater district, rural water district.