; (C) in paragraph (1), by striking project in and all that follows through the period at the end and inserting project. ; (D) in paragraph (2)— (i) in the paragraph heading, by inserting or Indian Tribe after Governor ; (ii) in the matter preceding subparagraph (A), by striking Participation and inserting Subject to paragraph (5), in the case of natural water retention and release projects, participation ; (iii) in subparagraph (A), by inserting or the sponsoring Indian Tribe, in the case of a Tribal project after located ; and (iv) in subparagraph (B), in the matter preceding clause (i), by striking State or local sponsor and inserting State, Tribal, or local ; and (E) by adding at the end the following: (5) Natural water retention and release projects Participation by the Secretary of the Interior in a natural water retention and release project under this subsection shall only occur if— (A) for a project that costs not more than $10,000,000, the eligible entity demonstrates that the natural water retention and release project would help optimize the storage or delivery of water in a watershed in which a Bureau of Reclamation facility is located; and (B) for a project that costs more than $10,000,000— (i) the requirements described in paragraph (2) have been met; and (ii) the eligible entity determines, and the Secretary of the Interior concurs, that— (I) the natural water retention and release project would produce or allow additional retention or delivery of water in a watershed in which a Bureau of Reclamation facility is located