Bureau of Reclamation

Upper Basin Environmental Drought Mitigation (B2E) Funding

The “Bucket 2 Environmental Drought Mitigation” or “B2E” provides funding to public entities and tribes for projects that provide general environmental benefits or ecosystem/habitat restoration benefits that address issues directly caused by drought. 

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 provided $4 billion in funding to mitigate the effects of drought of which $500 million has been designated for use in the Upper Colorado Basin. To date, approximately $50 million of this funding has been used to compensate temporary reductions in diversion of water in the Upper Basin. The remaining $450 million will be used for this funding opportunity and another effort that focuses on long-term water conservation, which will be announced later this year.

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 (B2E) Request for Application. 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. Proposed projects will be required to be completed and fully expended by September 30, 2031.