Padilla, Napolitano Urge Bureau of Reclamation to Increase Project Cap for Water Recycling Projects

WASHINGTON, D.C. — Today, U.S. Senator Alex Padilla (D-Calif.), Chair of the Environment and Public Works (EPW) Subcommittee on Fisheries, Water, and Wildlife, and Representative Grace Napolitano (D-Calif.-31) led 27 lawmakers from the Western United States in calling on the Bureau of Reclamation to raise the per-project cap on federal funding for Title XVI water recycling projects from $30 million to $40 million by adjusting the cap for inflation.

The Title XVI water recycling program provides up to 25 percent cost-shared funding for the planning, design, and construction of water reuse projects, and has allowed water providers in the West to leverage federal funding for water recycling and water reuse infrastructure for nearly 30 years.

Over the last few years, water infrastructure projects across the nation have experienced significant cost increases. As climate change and long-term drought threaten water supplies across the West, indexing the cap to inflation will be critical to strengthening drought resiliency by providing additional federal resources to support water recycling and reuse efforts across California and the region.

“As the West continues to recover from the impacts of long-term drought while also preparing for inevitable future droughts, it is imperative that the federal government continues to invest in local water supplies to meet the demands of recycled water in the West,” wrote the lawmakers. “Increasing the per-project funding cap by adjusting for inflation would ensure that the BOR is bringing every tool and resource to bear to stretch limited water supplies and bolster drought resilience.”

“As Western water agencies undertake efforts to adapt to climate change, the federal government must do all it can to encourage these water purveyors to bolster the resiliency of their systems and reduce dependency on imported water supplies,” continued the lawmakers. “… By using your authority to increase the [Water Infrastructure Improvements for the Nation Act] Title XVI grant program’s per-project funding cap to $40 million, the Bureau of Reclamation can offer water providers in the West the opportunity to more affordably invest in the necessary infrastructure to prepare for the next inevitable drought.”

A 1996 law established a $20 million per-project cap for the Title XVI program, but also authorized the Bureau of Reclamation to increase the program’s per project cap to keep pace with inflation. In 2022, Reclamation used this authority to increase the cap to $30 million. However, given the significant increase in inflation and project costs, an increase to $40 million would be more appropriate. According to the Consumer Price Index, $20 million in 1996 dollars equates to approximately $40 million in today’s dollars.

In addition to Senator Padilla and Representative Napolitano, the letter is signed by Senators Laphonza Butler (D-Calif.) and Catherine Cortez Masto (D-Nev.), as well as Representatives Pete Aguilar (D-Calif.-33), Nanette Barragán (D-Calif.-44), Julia Brownley (D-Calif.-26), Salud Carbajal (D-Calif.-24), Tony Cárdenas (D-Calif.-29), Jim Costa (D-Calif.-21), Mark DeSaulnier (D-Calif.-10), Veronica Escobar (D-Texas-16), John Garamendi (D-Calif.-08), Sylvia R. Garcia (D-Texas-29), Raúl Grijalva (D-Ariz.-07), Josh Harder (D-Calif.-09), Jared Huffman (D-Calif.-02), Barbara Lee (D-Calif.-12), Susie Lee (D-Nev.-03), Mike Levin (D-Calif.-49), Zoe Lofgren (D-Calif.-18), Kevin Mullin (D-Calif.-15), Jimmy Panetta (D-Calif.-19), Raul Ruiz (D-Calif.-25), Adam Schiff (D-Calif.-30), Eric Swalwell (D-Calif.-14), Mark Takano (D-Calif.-39), Dina Titus (D-Nev.-01), and Juan Vargas (D-Calif.-52).

Senator Padilla has long been a strong advocate for ensuring access to safe, reliable water throughout California and across the country. Last year, Padilla was named Chair of the EPW Subcommittee on Fisheries, Water, and Wildlife, where he leads federal efforts to improve water resiliency and oversees implementation of the Clean Water Act and Safe Drinking Water Act. Padilla recently announced $159 million in transformational investments from the Bipartisan Infrastructure Law for three large-scale water recycling projects in Southern California. Additionally, he and Representative Scott Peters (D-Calif.-50) recently introduced the Drought Relief Obtained Using Government Help Today (DROUGHT) Act, legislation to help alleviate the Western water crisis caused by long-term drought by allowing federal government loans to take on a greater share of the rising cost of water infrastructure projects.

Earlier this year, Padilla introduced the Low-Income Household Water Assistance Program (LIHWAP) Establishment Act, legislation that would establish a permanent, nationwide water assistance program to help struggling families afford their water bills. He and Representative Mike Levin previously introduced the Water Efficiency, Conservation, and Sustainability Act of 2023, bicameral legislation that would authorize $550 million for states, municipalities, water systems, and tribal nations to implement water-efficiency upgrades and establish programs to repair leaks, especially in areas experiencing severe drought and in low-income communities.

Full text of the letter is available here and below:

Dear Commissioner Touton:

We write to urge the Bureau of Reclamation (BOR) to increase the Title XVI Grant Program’s per-project funding cap from $30 million to $40 million in order to account for inflation. As the West continues to recover from the impacts of long-term drought while also preparing for inevitable future droughts, it is imperative that the federal government continues to invest in local water supplies to meet the demands of recycled water in the West. Increasing the per-project funding cap by adjusting for inflation would ensure that the BOR is bringing every tool and resource to bear to stretch limited water supplies and bolster drought resilience.         

As you know, BOR’s Title XVI grant program has successfully allowed water providers in the West to leverage federal funding to finance necessary water recycling and water reuse infrastructure. For over thirty years, water reuse has been an incredibly valuable tool in the West to boost local water supplies and become more drought-resilient. Unfortunately, over the last few years, water infrastructure projects across the nation have been experiencing significant cost increases. A 2023 WateReuse Association survey of its members with Reclamation-approved Title XVI feasibility studies showed that the cost of their water recycling and reuse projects increased – on average – by around 80 percent since the time of feasibility study completion. 

The Reclamation Recycling and Water Conservation Act of 1996 established a $20 million per project cap for the Title XVI program, but the law also provided Reclamation with the authority to increase the program’s per project cap to keep pace with inflation. We applaud you for being the first Commissioner to use this authority when you raised the program’s per project cap from $20 million to $30 million in 2022. However, given the significant increase in inflation and project costs in recent years, we urge you to again use your authority and raise the program’s per project cap to $40 million. According to the Consumer Price Index, $20 million in 1996 dollars equates to approximately $40 million in today’s dollars.  

As Western water agencies undertake efforts to adapt to climate change, the federal government must do all it can to encourage these water purveyors to bolster the resiliency of their systems and reduce dependency on imported water supplies. Water recycling is a critical component of achieving these objectives. By using your authority to increase the WIIN Title XVI grant program’s per-project funding cap to $40 million, the Bureau of Reclamation can offer water providers in the West the opportunity to more affordably invest in the necessary infrastructure to prepare for the next inevitable drought.

Thank you for your steadfast leadership and partnership as we work to address critical water issues in California and throughout the West.

Sincerely,

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