S. 386 — Critical Water Resources Prioritization Act of 2025

This section amends Section 7 of the Endangered Species Act of 1973 (ESA) to establish exemptions from consultation requirements under subsection (a)(2)—which prohibit federal agency actions that jeopardize endangered or threatened species or adversely modify their critical habitat—for actions by water management agencies (i.e., federal, state, or local agencies managing water resources) to address critical human water needs (i.e., municipal drinking water supplies, emergency services such as firefighting, public health and safety, or food security). The Secretary of the Interior or Commerce may grant an initial 180-day exemption, renewable in additional 180-day periods, if the action directly conflicts with ESA requirements, the agency has implemented all reasonable conservation measures and explored alternative sources with no other options available, and the agency submits documentation, a species impact minimization plan, and a timeline for reinstating ESA protections. Water management agencies must submit monthly reports on needs, alternatives, species impacts, and minimization efforts; the Secretary must submit annual reports to Congress on exemptions, cumulative species impacts, and recommendations for balancing water needs and species protection; and actions are subject to limited judicial review for arbitrary and capricious agency action. This section further directs the Secretary to promulgate implementing regulations within 180 days of enactment.