; and (ii) provides an alternative to traditional water projects that divert or store water from natural aquatic ecosystems, including rivers, lakes, streams, and estuaries. (B) Exclusion The term alternative water source project does not include any water treatment or distribution facility. (2) Critical water supply needs The term critical water supply needs means existing or reasonably anticipated future water supply needs that cannot be met by existing water supplies, as identified in a comprehensive statewide or regional water supply plan or assessment projected over a period of not less than 20 years. (b) Establishment The Administrator shall establish a program to make grants to State, interstate, and intrastate water resource development agencies (including water management districts and water supply authorities), local government agencies, Tribal governments, private utilities, and nonprofit entities for alternative water source projects to meet critical water supply needs. (c) Eligible entity The Administrator may award a grant under this section to an entity only if the entity has authority under State law to develop or provide water for municipal, industrial, and agricultural uses in an area of the State that is experiencing critical water supply needs. (d) Selection of projects (1) Limitation A project that has received funds for construction under the Reclamation Projects Authorization and Adjustment Act of 1992 ( 43 U.S.C. 390h et seq.) shall not be eligible for a grant under this section. (2) Geographical distribution Alternative water source projects selected by the Administrator for a grant under this section shall reflect a variety of geographical and environmental conditions. (e) Uses of grant funds (1) In general Subject to paragraph (2), a grant received under this section may be used for engineering, design, construction, and final testing of an alternative water source project designed to meet critical water supply needs. (2) Exclusion A grant received under this section may not be used for