This bill amends the Reclamation Wastewater and Groundwater Study and Facilities Act to authorize the Bureau of Reclamation to participate in projects to benefit eligible communities through projects to:

• capture and treat wastewater and to distribute recycled water from a new mixed-use development that cannot otherwise be economically provided recycled water from one or more existing water reclamation plants and recycled water distribution systems;
• adjust or forego a portion of facility capacity or connection fees otherwise paid by the property owner to a regional water agency that imports out-of-basin water supplies; and/or
• extend local recycled water distribution systems to properties adjacent to new mixed-use development.

The bill defines "eligible communities" as communities:

• in a state under a drought emergency declared by the governor,
• where water retailers have been directed by a state water resources control board to reduce consumption or use of potable water usage by 24% to 32%, and
• whose sanitation district has been directed by a regional water quality control board to reduce the discharge of chloride to comply with basin water quality standards.

The Department of the Interior shall give priority to projects that:

• will serve a region that has received federal authorization for projects associated with perchlorate remediation programs under the Bureau of Reclamation or the Army Corps of Engineers,
• will serve or are located in a region that has completed feasibility studies for perchlorate remediation efforts, and/or
• will serve a region where the regional water agency that imports out-of-basin water supplies has a wholesale area that includes a population of between 200,000 and 350,000.

The federal share of the cost of such a project shall not exceed 25% of the total cost.