[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3737 Introduced in Senate (IS)]

<DOC>






119th CONGRESS
  2d Session
                                S. 3737

To amend the Reclamation States Emergency Drought Relief Act of 1991 to 
provide financial and technical assistance to eligible entities for the 
    conduct of innovative approaches to voluntary water partnership 
    agreements among multiple water users and projects conducted by 
       individual agricultural entities, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 29, 2026

  Mr. Padilla introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
To amend the Reclamation States Emergency Drought Relief Act of 1991 to 
provide financial and technical assistance to eligible entities for the 
    conduct of innovative approaches to voluntary water partnership 
    agreements among multiple water users and projects conducted by 
       individual agricultural entities, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Growing Resilient Operations from 
Water Saving and Municipal-Agricultural Reciprocally-beneficial 
Transactions Act'' or the ``GROW SMART Act''.

SEC. 2. PROJECT PLANNING IN SUPPORT OF INNOVATIVE VOLUNTARY WATER 
              SHARING AGREEMENTS AND VOLUNTARY USE OF WATER-THRIFTY 
              CROPS.

    Title II of the Reclamation States Emergency Drought Relief Act of 
1991 (43 U.S.C. 2221 et seq.) is amended by inserting after section 201 
the following:

``SEC. 201A. PROJECT PLANNING IN SUPPORT OF INNOVATIVE VOLUNTARY WATER 
              SHARING AGREEMENTS AND VOLUNTARY USE OF WATER-THRIFTY 
              CROPS TO PREPARE FOR AND RESPOND TO DROUGHT.

    ``(a) In General.--The Secretary, in order to prepare for and 
respond to drought conditions, may, using funds made available to carry 
out this title and under subsection (g), provide to qualified 
applicants technical and financial assistance to provide planning 
support for the implementation of voluntary projects incorporating 
innovative approaches that--
            ``(1)(A) keep agricultural land in production; and
            ``(B) support income and employment levels in rural 
        communities;
            ``(2) provide affordable water supplies, redundant water 
        supplies, shared storage, or other benefits; and
            ``(3) rely over the long term on sources other than Federal 
        funding for implementation.
    ``(b) Description of Innovative Approach.--An innovative approach 
referred to in subsection (a)--
            ``(1) shall--
                    ``(A) be new; or
                    ``(B) lack a well-established track record in the 
                applicable area;
            ``(2) shall include an approach that--
                    ``(A) insulates agricultural water users from the 
                risk of crop failures or water shortages through 
                voluntary financial, water storage, or water sharing 
                agreements between at least 1 party described in 
                subsection (c)(1)(A)(i) and 1 party described in 
                subsection (c)(1)(A)(ii);
                    ``(B) brings water-saving commodities or practices 
                into production; or
                    ``(C) involves voluntary methods for reducing 
                agricultural consumptive water use, including--
                            ``(i) hydroponics;
                            ``(ii) agrovoltaics;
                            ``(iii) agroforestry;
                            ``(iv) innovative irrigation technologies, 
                        including gravity-powered drip irrigation and 
                        automated high-efficiency surface irrigation;
                            ``(v) root-zone-based irrigation management 
                        systems;
                            ``(vi) implementation of regenerative 
                        agricultural practices that decrease net water 
                        consumption; or
                            ``(vii) concentration of crop production on 
                        a reduced irrigated acreage that results in an 
                        equal or greater financial return; and
            ``(3) shall not include an approach that--
                    ``(A) fallows agricultural land for--
                            ``(i) the majority of the growing season in 
                        the applicable area; or
                            ``(ii) in the case of a drought-year 
                        agreement, is reasonably anticipated to result 
                        in fallowing for the majority of years under 
                        the drought-year agreement; or
                    ``(B) involves crops in the applicable area (other 
                than crops using an approach described in paragraph 
                (2)) that are--
                            ``(i) widely used or planted; or
                            ``(ii) well understood in terms of yield, 
                        cost, and other key production factors.
    ``(c) Qualified Applicants.--
            ``(1) In general.--Except as provided in paragraph (3), to 
        qualify for financial or technical assistance under this 
        section, an applicant shall--
                    ``(A) propose a voluntary partnership among--
                            ``(i) 1 or more agricultural entities 
                        (including irrigation districts); and
                            ``(ii) 1 or more--
                                    ``(I) State, municipal, or other 
                                community water providers;
                                    ``(II) industrial or commercial 
                                entities, including data centers;
                                    ``(III) States, State agencies, or 
                                subdivisions of a State; or
                                    ``(IV) nonprofit conservation 
                                organizations; and
                    ``(B) submit to the Secretary an application signed 
                by at least 1 party described in subparagraph (A)(i) 
                and 1 party described in subparagraph (A)(ii).
            ``(2) No limits on participation of tribal entities.--Each 
        of the parties described in clauses (i) and (ii) of paragraph 
        (1)(A) may be Tribal entities.
            ``(3) Projects without voluntary partnerships.--
                    ``(A) In general.--Notwithstanding paragraph (1), 
                the Secretary may award to a State, State agency, or 
                subdivision of a State, Indian Tribe, or agricultural 
                entity that is not in a voluntary partnership with 
                other entities described in paragraph (1)(A) a portion 
                of the financial assistance authorized under this 
                section for the planning or conduct of a voluntary 
                project that--
                            ``(i) uses an innovative approach described 
                        in paragraphs (1) and (2) of subsection (b); or
                            ``(ii) with respect to a voluntary project 
                        conducted by a State, State agency, or Indian 
                        Tribe, would advance other long-term efforts to 
                        reverse declining--
                                    ``(I) groundwater supplies; or
                                    ``(II) freshwater inflows to inland 
                                lakes.
                    ``(B) Priority consideration.--The Secretary shall 
                give priority consideration to an application for 
                financial assistance under this paragraph for which the 
                following thresholds have been met or are projected to 
                be met:
                            ``(i) In the case of an application from an 
                        agricultural entity or subdivision of a State, 
                        a reduction of 40 percent or more in the annual 
                        water supply of the agricultural entity or 
                        subdivision of the State, due to factors 
                        outside the control of the agricultural entity 
                        or subdivision of the State.
                            ``(ii) In the case of an application from a 
                        State, State agency, or Indian Tribe, a 
                        reduction of 40 percent or more in--
                                    ``(I) groundwater supplies; or
                                    ``(II) freshwater inflows to inland 
                                lakes.
    ``(d) Application Requirements.--The Secretary shall ensure that 
applications for financial or technical assistance under this section--
            ``(1) shall be limited to--
                    ``(A) a brief description of why the proposed 
                approach to be provided assistance is consistent with 
                this section and the priorities described in subsection 
                (e); and
                    ``(B) any basic information on the applicant that 
                the Secretary determines to be necessary; and
            ``(2) shall not require any preparation of supporting 
        reports by the applicant or other entities.
    ``(e) Priority.--The Secretary shall prioritize applications for 
financial or technical assistance under this section based on--
            ``(1) for projects involving a voluntary partnership under 
        subsection (c)(1), whether the proposed project would dedicate 
        a portion of the water saved in the project area to increase 
        water supplies for--
                    ``(A) other members of the water district within 
                which the project is located; or
                    ``(B) in the case of a project not within a water 
                district, other members of the municipality, Indian 
                Tribe, acequia, or other community unit within which 
                the project is located;
            ``(2) the extent to which the proposed approach is 
        innovative in terms of--
                    ``(A) the practices implemented or the crops 
                planted;
                    ``(B) the financial or other aspects of the 
                voluntary partnership among the agricultural entities 
                and municipal or industrial entities or nonprofit 
                conservation organizations; or
                    ``(C) a combination of the factors described in 
                subparagraphs (A) and (B);
            ``(3) the extent to which the proposed approach is 
        preliminarily estimated to reduce consumptive agricultural 
        water use compared to existing practices while keeping 
        agricultural land in production;
            ``(4) the extent to which the proposed approach is 
        preliminarily estimated to support income and employment levels 
        in the relevant agricultural community compared to existing 
        practices (whether due to increased yields, lower input costs, 
        or other factors);
            ``(5) the assessment of the Secretary of the likelihood 
        that the proposed approach is likely to be successfully 
        implemented as proposed;
            ``(6) whether the voluntary water sharing agreements among 
        the agricultural entities and municipal or industrial entities 
        or nonprofit conservation organizations are proposed for a 
        period of not less than 10 years;
            ``(7) the likelihood of the project to sustain the project 
        long-term without the need for additional Federal funding after 
        the project demonstration phase; and
            ``(8) such other factors as the Secretary determines to be 
        appropriate, consistent with subsection (c)(3).
    ``(f) Cost-Sharing Requirement.--
            ``(1) In general.--The Federal share of activities provided 
        financial assistance under this section shall not exceed 75 
        percent of the cost of the activities.
            ``(2) Waiver.--The Secretary may waive the cost-sharing 
        requirement under paragraph (1) for Tribal entities.
    ``(g) Funding.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, the Secretary may use not more than 10 percent of the 
        amounts made available under section 9504(e) of the Omnibus 
        Public Land Management Act of 2009 (42 U.S.C. 10364(e)) to 
        carry out this section.
            ``(2) Authorization of appropriations.--In addition to any 
        amounts otherwise made available to carry out this title and 
        amounts made available under paragraph (1), there is authorized 
        to be appropriated to the Secretary to carry out this section 
        $5,000,000 for each of fiscal years 2028 through 2034.''.
                                 <all>