- The Department of Energy has opened a $12 million program for onsite industrial water-reuse projects.
- Factories that make chemicals, food, paper, steel, cars, and computer chips may take part.
- A separate call for public comment on regional water planning closes September 9, 2026.
Tuesday, July 28, 2026 — Yesterday, the National Alliance for Water Innovation
, a partnership between government and private groups, opened a new funding program to help American factories use less fresh water. The program runs through the U.S. Department of Energy’s Lawrence Berkeley National Laboratory.
The plan comes in two parts. The first is a Request for Proposals, which is a formal call for project ideas backed by $12 million in funding. The second is a Request for Information, which is a call for public comment. Together, the two efforts are meant to make the country’s water supply safer, steadier, and easier to afford.
Why Factories Depend on Water.
Almost every factory in the United States runs on water. It mixes ingredients, cleans equipment, cools hot machinery, and moves raw materials from one step to the next. Companies often build their plants close to a steady water source for exactly these reasons.
That steady supply is getting harder to count on. As demand grows and the economy expands, many manufacturers are finding it tough to secure water that is both reliable and affordable. Keeping cheap water within reach matters for the country’s standing in global markets.
Reusing Water Onsite.
The heart of the program is onsite water reuse. Instead of drawing all their water fresh, factories would clean and recycle water they already have. The approach gives them a dependable supply while cutting the amount of new water they pull in.
The National Alliance for Water Innovation and the Department of Energy are looking for pilot projects and demonstrations in three areas. One is treating and reusing water inside a single step of production. Another is cleaning wastewater from one process so it can serve other processes, with a focus on improving water quality rather than simply passing lower-quality water to a task that can tolerate it. The third is taking “nuisance water” or wastewater from one facility and putting it to valuable use in a neighboring facility.
Three Water Sources in the Spotlight.
The program points to three types of water that factories do not usually reuse: cooling water, process and rinse water, and treated wastewater, known as wastewater treatment effluent. Officials describe these as large sources with strong potential for reuse.
The push targets several major industries. Those include chemicals, food and beverage, paper and pulp, semiconductors (the companies that make computer chips), iron and steel, and automobile manufacturing. The program also addresses technical hurdles that are specific to industrial settings.
Key Dates for Applicants.
Groups that want to apply must first send a short concept paper. That paper is due by September 15, 2026, at 5 p.m. Pacific Time. Only those who submit one are allowed to send a full proposal. Full proposals are due by November 24, 2026, at 5 p.m. Pacific Time. Submission details here and here.
A Second Effort on Regional Planning.
Alongside the funding call, the alliance opened its Request for Information to guide a project called the Regional Water Systems initiative. The feedback will help shape a future funding program.
Through this request, the alliance wants to learn how water planners and utilities make their decisions, to review the planning tools they use now, to hear regional views on water sources that are not traditionally tapped, and to pin down what a successful program should look like. Officials say better coordination across regions will help protect the nation’s water supply and modernize aging infrastructure, while keeping clean, affordable water within reach for communities and manufacturers.
The alliance welcomes comments from state and local governments, industrial water users, consulting engineers, researchers, and others. Responses must arrive by Wednesday, September 9, 2026, at 5 p.m. Pacific Time.
About the Alliance.
The National Alliance for Water Innovation brings together industry and university partners to develop new technology for safe, secure, and affordable water. It is led by the Department of Energy’s Lawrence Berkeley National Laboratory, working with the National Laboratory of the Rockies and Oak Ridge National Laboratory. Funding comes from the Industrial Technologies Office within the Office of Critical Minerals and Energy Innovation, along with the Hydropower and Hydrokinetic Office.
