Bureau of Reclamation

Bucket 2 Environmental Drought Mitigation Funding Opportunity (B2E2)

The Bureau of Reclamation Upper Colorado Basin Region is pleased to announce a funding opportunity for environmentally oriented projects that include additional water savings benefits within the Upper Colorado River Basin, referred to as “B2E2”.

Those who applied under the Upper Colorado River Basin Environmental Program “B2E” funding opportunity that closed November 22, 2024 do not need to submit another application.  This funding announcement provides an opportunity for environmentally oriented projects with water savings that did not apply under the B2E funding opportunity.

This funding opportunity is available under the Inflation Reduction Act (IRA) which became Public Law 117-169 on August 16, 2022. Section 50233 of the Law provides funding to mitigate the impacts of drought with priority to the Colorado River Basin, and other basins experiencing comparable levels of drought. 

Funding is contingent upon completion of an evaluation process by Reclamation. Final selections will be made by Reclamation based on the merit review described in the attached Upper Basin Environmental Drought Mitigation Request for Application. Water savings benefits will not be a consideration in the merit review. The minimum project threshold is $300,000. Cost share is not required but is encouraged.

Eligible applicants include federal agencies, state, county, city or township governments, special government districts, and federally recognized Tribes or Tribal organizations within the Upper Colorado River Basin of the Bureau of Reclamation. Additionally, non-public entities are encouraged to partner and collaborate with public entities or tribes.

Eligible projects must provide environmental benefits or ecosystem and habitat restoration that address issues directly caused by drought in a river basin or an inland body of water and include additional water savings. Proposed projects will be required to be completed and fully expended by September 30, 2031.

Detailed information about how to submit a proposal and its required components can be found in the attached Upper Basin Environmental Drought Mitigation Request for Application (RFA). A link to the RFA and other required standard forms for the proposal can also be found at https://www.usbr.gov/uc/progact/SystemConservation/index.html

Proposals will be accepted until January 10, 2025; however, applicants are encouraged to submit proposals early. Applicants are also strongly encouraged to contact appropriate state agencies while developing their proposals to ensure water rights and permitting considerations have been adequately addressed. The state agency contacts are as follows:

• For Colorado: Amy Ostdiek, amy.ostdiek@state.co.us
• For New Mexico: Ali Effati, ali.effati@ose.nm.gov
• For Utah: Amy Haas, ahaas@utah.gov
• For Wyoming: Jeff Cowley, jeff.cowley@wyo.gov

Eligible applicants interested in funding through this program must submit completed applications with all required components to the Upper Colorado Basin Region Office of the Bureau of Reclamation. Applications may be submitted electronically by email to UCBefficiency@usbr.gov by mail or US Postal Service overnight services:

Bureau of Reclamation
Attn: Acquisition Management Division
Wallace F. Bennett Federal Building
125 South State Street
Salt Lake City, UT 84138-1102

Project awards will be made through Federal Financial Assistance grants or cooperative agreements as defined by 2 CFR 200. This email contains information for a Federal Funding Opportunity, please forward this information to appropriate departments within your organization.

For additional information regarding this funding opportunity, please visit https://www.usbr.gov/uc/progact/SystemConservation/index.html or contact the program administrators by email at UCBefficiency@usbr.gov.