; and (B) the agreement of the non-Federal entity that, pursuant to a formal operations and maintenance transfer contract or other legal agreement with the Secretary, acting through the Commissioner of Reclamation, carries out the operations and maintenance of the federally owned storage project, if applicable. (d) Non-Federal storage projects (1) In general Subject to the requirements of this subsection, the Secretary may participate in the design, study, construction, expansion, upgrade, or capital repair of a non-Federal storage project in an amount equal to not more than 25 percent of the total cost of the non-Federal storage project. (2) Conditions for Federal design and study funding The Secretary shall only fund a design or study activity for a non-Federal storage project under this subsection if— (A) Federal participation has been requested by the Governor of the State in which the non-Federal storage project is located; and (B) the Secretary has identified the potential for Federal benefit sufficient to proceed. (3) Conditions for Federal construction funding Participation by the Secretary in the construction of a non-Federal storage project under this subsection shall not occur unless— (A) the Governor of the State in which the non-Federal storage project is located has requested Federal participation at the time construction was initiated; and (B) the applicable non-Federal sponsor determines, and the Secretary concurs, that— (i) the non-Federal storage project is technically and financially feasible; (ii) the non-Federal storage project provides a Federal benefit in accordance with the reclamation laws; (iii) not less than a proportionate share of the benefits of the non-Federal storage project are Federal benefits, including water supplies dedicated to specific purposes, such as water quality improvements or fish and wildlife protection and restoration, including a wildlife refuge