Short title

This Act may be cited as the St. Mary Diversion and Conveyance Works and Milk River Project Act of 2006.

Definitions

In this Act: (1)

Blackfeet irrigation project

The term Blackfeet Irrigation Project means the Bureau of Indian Affairs Blackfeet Irrigation Project located within the exterior boundaries of the Blackfeet Reservation. (2)

Blackfeet reservation

The term Blackfeet Reservation means the Blackfeet Indian Reservation of Montana. (3)

Blackfeet tribe

The term Blackfeet Tribe means the Blackfeet Tribe of the Blackfeet Reservation. (4)

Board

The term Board means the Joint Board of Control for the Milk River Project established in accordance with State law . (5)

Catastrophic infrastructure failure

The term catastrophic infrastructure failure means a failure of the infrastructure of the St. Mary Diversion and Conveyance Works that causes a significant disruption in the operation of the water system that, if not addressed, would, as determined by the Secretary, pose a serious threat to— (A)the lives, health, or property of the residents of the Blackfeet Reservation; or (B)the economic or environmental health of— (i)the Blackfeet Reservation; or (ii)the region served by the Milk River Project. (6)

Chinook division

The term Chinook Division means the Harlem, Paradise Valley, Zurich, Alfalfa Valley, and Fort Belknap irrigation districts established in accordance with State law. (7)

Emergency response plan

The term emergency response plan means the emergency response plan developed under section 4(a). (8)

Fort belknap reservation

The term Fort Belknap Reservation means the Fort Belknap Reservation of the Fort Belknap Indian Community of Montana. (9)

Fund

The term Fund means the Emergency Response Plan Fund established by section 5(a). (10)

Milk river project

(A)

In general

The term Milk River Project means the Bureau of Reclamation project authorized by the Secretary on March 14, 1903, under the Act of June 17, 1902 (32 Stat. 388, chapter 1093), commencing at Lake Sherburne Reservoir and providing water to a point approximately 6 miles east of Nashua, Montana. (B)

Inclusions

The term Milk River Project includes— (i)Swiftcurrent Dike; (ii)Lake Sherburne; (iii)Nelson and Fresno dams, dikes, and reservoirs; (iv)St. Mary, Dodson, Vandalia, and Paradise diversion dams; (v)Dodson pumping plant; and (vi)miles of associated canals, laterals, and drains. (11)

Rehabilitation project

The term rehabilitation project means the St. Mary Diversion and Conveyance Works rehabilitation and improvement project authorized under section 3(b)(1). (12)

Repayment contract

The term repayment contract means the repayment contract entered into under section 3(b)(6)(C). (13)

Secretary

The term Secretary means the Secretary of the Interior. (14)

State

The term State means the State of Montana. (15)

St. mary diversion and conveyance works

(A)

In general

The term St. Mary Diversion and Conveyance Works means the portion of the Milk River Project authorized by the Secretary on March 25, 1905, under the Act of June 17, 1902 (32 Stat. 388, chapter 1093), that— (i)is located within the exterior boundaries of the Blackfeet Reservation; and (ii)diverts water from the St. Mary River into the North Fork of the Milk River. (B)

Inclusions

The term St. Mary Diversion and Conveyance Works includes— (i)the diversion dam on the St. Mary River; (ii)Swiftcurrent Dike; (iii)canals; (iv)siphons; (v)the 5 drop structures; and (vi)other associated canal facilities.

St. Mary Diversion and Conveyance Works

(a)

Authorization of Studies

(1)

In general

The Secretary, in consultation with the State, the Blackfeet Tribe, and other rehabilitation project stakeholders, shall conduct 1 or more studies— (A)to determine the feasibility of rehabilitating and improving the St. Mary Diversion and Conveyance Works to provide for sustained environmental and economic benefit within the St. Mary and Milk River basins; and (B)to determine the environmental impact of the proposed rehabilitation project. (2)

Use of existing information and resources

In preparing any study under paragraph (1), the Secretary shall, to the maximum extent practicable, use existing studies, including engineering and resource information provided by, or at the direction of, the Blackfeet Tribe or Federal, State, or local agencies. (3)

Cooperative agreement with the state and the blackfeet tribe

The Secretary may enter into cooperative agreements with the State and the Blackfeet Tribe to carry out all or a portion of 1 or more studies authorized under paragraph (1) if the Secretary determines that the cooperative agreements would be cost-effective and efficient. (4)

Reimbursement of study costs

(A)

In general

Except as provided in subparagraph (B), the costs of preparing any study under paragraph (1) shall be— (i)considered to be a rehabilitation project cost under subsection (b); and (ii)if the proposed rehabilitation project is carried out under subsection (b), reimbursed in accordance with the repayment contract. (B)

Blackfeet tribe

Any Federal funds provided to the Blackfeet Tribe under a cooperative agreement entered into under paragraph (3) shall be nonreimbursable and nonreturnable to the United States. (5)

Report

Not later than 2 years after the date of enactment of this Act, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Resources of the House of Representatives any studies required to be conducted under paragraph (1). (b)

Authorization of Rehabilitation Project

(1)

In general

Not later than 180 days after the date on which a study is submitted under subsection (a)(5), the Secretary shall initiate the planning, design, and construction of the St. Mary Diversion and Conveyance Works rehabilitation and improvement project alternative that is selected under paragraph (2). (2)

Selection of alternative

The Secretary, in consultation and coordination with the State, the Blackfeet Tribe, and other affected rehabilitation project stakeholders, shall select the alternative for construction of the rehabilitation project that the Secretary determines would best meet the needs of the State, the Blackfeet Tribe, and other affected rehabilitation project stakeholders. (3)

Cooperative agreement

The Secretary shall enter into 1 or more cooperative agreements with the State, the Blackfeet Tribe, and the Board to provide the State, the Blackfeet Tribe, and the Board with information on, and opportunities to provide comments with respect to, all aspects of the planning, design, and construction of the rehabilitation project. (4)

Cost-sharing requirements

(A)

In general

Of the total rehabilitation projects costs— (i)45 percent shall be reimbursable; and (ii)55 percent shall be nonreimbursable. (B)

Reimbursable costs

(i)

Federal share

The Federal share of the total reimbursable rehabilitation project costs, as identified in the repayment contract, shall be 75 percent. (ii)

Non-federal share

The non-Federal share of the total reimbursable project costs, as identified in the repayment contract, shall be the lesser of— (I)the amount that is equal to 25 percent of the total reimbursable costs of carrying out the project; or (II)$25,000,000. (C)

Form of non-federal share

The non-Federal share required under subparagraphs (A) and (B) may be in the form of— (i)any in-kind, documented contribution of goods or services, whether provided before, on, or after the date of enactment of this Act; or (ii)any amounts paid by the State, the Blackfeet Tribe, or other affected rehabilitation project stakeholders, whether paid before, on, or after the date of enactment of this Act, for engineering or other studies that contribute to the rehabilitation and improvement of the St. Mary Diversion and Conveyance Works. (5)

Limitation on certain project costs

(A)

Administrative costs

The total amount of funds expended by the Secretary for the administration of the rehabilitation project shall be not more than 4 percent of the amount provided for the total rehabilitation project construction budget. (B)

Design and construction

The total amount of funds expended by the Secretary for design, and construction oversight of the rehabilitation project shall be not more than 20 percent of the amount provided for the total rehabilitation project construction budget. (6)

Construction funds

The Secretary shall not obligate any funds made available for rehabilitation project construction activities authorized under this subsection until— (A)any applicable requirements of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) have been met; (B)a final engineering report has been— (i)prepared and submitted to the Secretary; and (ii)transmitted by the Secretary to the Committee on Energy and Natural Resources of the Senate and the Committee on Resources of the House of Representatives by the date that is 60 days after the date on which the report has been submitted to the Secretary; and (C)a contract providing for the repayment of reimbursable costs for the rehabilitation project has been entered into by the Secretary and the applicable non-Federal entities. (7)

Employment preference

The Secretary shall require that any contract or subcontract for the construction of the rehabilitation project include a provision that the contractor or subcontractor provide a hiring preference to qualified members of the Blackfeet Tribe. (8)

Deadline

The rehabilitation project shall be substantially complete by not later than January 1, 2018.

Emergency response plan

(a)

In General

Not later than 1 year after the date of enactment of this Act, the Secretary, in consultation with the State, local and tribal authorities, and other Milk River Project stakeholders, shall develop and, subject to the availability of funds, implement an emergency response plan to be followed in the event of a catastrophic infrastructure failure. (b)

Contents

The emergency response plan shall— (1)identify the potential impacts of a catastrophic infrastructure failure on public safety and the environment, with an emphasis on the impacts on any portions of the Blackfeet Reservation in which the St. Mary Diversion and Conveyance Works are located; (2)provide a response plan to address the public safety and environmental impacts in the State and the Blackfeet Reservation within a reasonable period following a catastrophic infrastructure failure; (3)define the responsibilities of emergency response personnel in the event of a catastrophic infrastructure failure; (4)ensure communication and coordination among the Federal, State, tribal, and local agencies and other Milk River Project stakeholders that are responsible for implementing the emergency response plan; (5)establish public notification procedures to be carried out in the event of a catastrophic infrastructure failure; (6)provide for the repair or replacement of failed infrastructure with components that are compatible with the rehabilitation project; (7)include a cost-sharing agreement that— (A)specifies the manner in which costs will be shared and any reimbursable amounts will be repaid if the emergency response plan is implemented; and (B)is consistent with subsection (e); and (8)incorporate any other elements that the Secretary, in consultation with the State, tribal and local authorities, and other Milk River Project stakeholders, determines would ensure a rapid and effective response to a catastrophic infrastructure failure. (c)

Title

Title to all project works and facilities constructed under this section shall be held by the United States. (d)

Development Costs

Any costs incurred by the Secretary in developing the emergency response plan shall be nonreimbursable. (e)

Implementation Costs

(1)

In general

Except as provided in paragraph (2), the cost-sharing requirements of section 3(b)(4) shall apply to any costs of implementing the emergency response plan under this section. (2)

Blackfeet tribe

Notwithstanding paragraph (1), any Federal funds provided for noninfrastructure activities carried out under this section on the Blackfeet Reservation are nonreimbursable and nonreturnable to the United States.

Emergency Response Plan Fund

(a)

Establishment

There is established in the Treasury of the United States a revolving fund, consisting of— (1)such amounts as are appropriated to the Fund under section 10(d); and (2)any interest earned on investment of amounts in the Fund under subsection (c). (b)

Expenditures From Fund

(1)

In general

If the Secretary determines that a catastrophic infrastructure failure has occurred, the Secretary of the Treasury, on request of the Secretary, shall transfer from the Fund to the Secretary such amounts as the Secretary determines are necessary to implement the emergency response plan. (2)

Report

Not later than 60 days after the date on which amounts from the Fund are transferred to the Secretary under paragraph (1), the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Resources of the House of Representatives a report that describes— (A)the event that triggered the determination that a catastrophic infrastructure failure had occurred; (B)the amount transferred to the Secretary from the Fund; (C)a description of any construction carried out using the amounts transferred; and (D)the estimated cost of completing any construction being carried out under the emergency response plan. (c)

Investment of Amounts

(1)

In general

The Secretary of the Treasury shall invest such portion of the Fund as is not, in the judgment of the Secretary of the Treasury, required to meet current withdrawals. (2)

Interest-bearing obligations

Investments may be made only in interest-bearing obligations of the United States. (3)

Acquisition of obligations

For the purpose of investments under paragraph (1), obligations may be acquired— (A)on original issue at the issue price; or (B)by purchase of outstanding obligations at the market price. (4)

Sale of obligations

Any obligation acquired by the Fund may be sold by the Secretary of the Treasury at the market price. (5)

Credits to fund

The interest on, and the proceeds from the sale or redemption of, any obligations held in the Fund shall be credited to, and form a part of, the Fund. (d)

Termination of Fund

(1)

In general

If the Secretary determines that the St. Mary Diversion and Conveyance Works no longer pose an unacceptable risk of catastrophic infrastructure failure— (A)the Fund shall be terminated; and (B)the unexpended and unobligated balance of the Fund shall be made available for the construction of the rehabilitation project authorized under section 3(b)(1). (2)

Additional funds

Amounts made available for the construction of the rehabilitation project under paragraph (1)(B) shall be in addition to the amounts made available for the rehabilitation project under section 10(b).

Milk River Project

(a)

Authorized Uses

Notwithstanding any other provision of law— (1)the authorized uses of Lake Sherburne Reservoir, St. Mary Diversion and Conveyance Works, Fresno Reservoir, Nelson Reservoir, and the Vandalia Diversion Dam shall include irrigation, flood control, the provision of municipal and industrial water supplies, recreation, fish and wildlife conservation and development, and water conservation; and (2)the Milk River Project shall be operated— (A)primarily for the purpose of irrigation; and (B)in a manner that does not interfere with any contracts in existence on the date of enactment of this Act that are executed under the reclamation laws. (b)

Service Area

The service area of the Milk River Project is— (1)the Milk River Basin; and (2)the portion of the St. Mary River Basin that is accessible to the Milk River Project. (c)

Feasibility Studies

(1)

Priority

In consultation with the State and affected Milk River Project stakeholders, the Secretary shall prioritize the Milk River Project structures that are in need of rehabilitation and improvement. (2)

Preparation of studies

The Secretary or the non-Federal project sponsor shall prepare 1 or more feasibility studies for Milk River Project structures in order of the priority established under paragraph (1). (3)

Costs

The costs of any feasibility studies prepared under paragraph (2) shall be— (A)considered to be Milk River Project rehabilitation and improvement costs; and (B)reimbursable if the proposed Milk River Project rehabilitation and improvement is carried out. (4)

Cooperative agreements

The Secretary may enter into any cooperative agreements with the non-Federal project sponsors that the Secretary determines to be necessary to carry out this subsection. (d)

Milk River Project Rehabilitation and Improvement Costs

The cost-sharing requirements of section 3(b)(4) shall apply to the costs of studying, designing, planning, and constructing any rehabilitation of, or improvements to, Milk River Project structures that are carried out in accordance with a feasibility study prepared under subsection (c).

Blackfeet Tribe

(a)

Protection of Land and Water Rights

In carrying out the rehabilitation project, the Secretary shall ensure that the land and water rights held in trust for the benefit of the Blackfeet Tribe and the members of the Blackfeet Tribe are protected. (b)

Settlement of Milk River Project Claims

(1)

In general

Notwithstanding any other provision of law, the Secretary shall resolve any land, water, environmental, and other claims of the Blackfeet Tribe against the United States relating to the portions of the Milk River Project located within the exterior boundaries of the Blackfeet Reservation. (2)

Costs

Any Federal funds expended under paragraph (1) shall be nonreimbursable and nonreturnable to the United States. (3)

Report

Not later than January 1, 2008, or if the Secretary and the Blackfeet Tribe agree to a later date, the date agreed to by the Secretary and the Blackfeet Tribe, the Secretary shall submit to Congress a report that describes the resolution of any claims under paragraph (1), including a description of the amount of funds necessary to resolve the claims. (c)

Blackfeet Projects

(1)

Identification of projects

The Secretary, in consultation with the Blackfeet Tribe, shall identify appropriate Blackfeet projects to improve economic conditions on the Blackfeet Reservation. (2)

Feasibility studies

(A)

In general

The Secretary shall complete 1 or more studies to determine the feasibility of carrying out the Blackfeet projects identified under paragraph (1). (B)

Use of existing studies

In preparing a study under subparagraph (A), the Secretary shall, to the maximum extent practicable, use any existing studies that are identified by the Blackfeet Tribe. (C)

Considerations

The Secretary may consider the use of the St. Mary Diversion and Conveyance Works in— (i)the preparation of a feasibility study under this paragraph; and (ii)the subsequent planning, design, and construction of any Blackfeet projects that are recommended to be carried out under this subsection. (D)

Cooperative agreements

The Secretary may enter into 1 or more cooperative agreements with the Blackfeet Tribe to carry out a feasibility study under this paragraph. (E)

Report

Not later than 180 days after the date on which a feasibility study is completed under this paragraph, the Secretary shall submit to Congress a report that— (i)identifies any Blackfeet projects proposed to be carried out under this subsection; and (ii)describes the amount of funds necessary for the recommended Blackfeet projects. (d)

Hydropower Preference

The Blackfeet Tribe shall be eligible for preference in the development of hydropower generation on all facilities of the St. Mary Diversion and Conveyance Works located within the exterior boundaries of the Blackfeet Reservation on the same basis as municipalities under the Federal Power Act (16 U.S.C. 791a et seq.) and the reclamation laws (including the Reclamation Project Act of 1939 (43 U.S.C. 485 et seq.)). (e)

Employment Preference

The Secretary shall require that any contract or subcontract for the construction of the rehabilitation project require that the contractor or subcontractor provide a hiring preference to qualified members of the Blackfeet Tribe. (f)

Blackfeet Irrigation Project

(1)

Feasibility studies

(A)

In general

As soon as practicable after the date on which the Secretary completes an appraisal investigation of the Blackfeet Irrigation Project, the Secretary shall conduct 1 or more studies to determine the feasibility of rehabilitating and improving the Blackfeet Irrigation Project structures that are determined by the Secretary to be in need of rehabilitation or improvement based on the appraisal investigation. (B)

Nonreimbursable costs

Any costs incurred in carrying out a feasibility study under subparagraph (A) are nonreimbursable and nonreturnable to the United States. (C)

Cooperative agreement

The Secretary may enter into 1 or more cooperative agreements with the Blackfeet Tribe for the conduct of the feasibility studies under subparagraph (A). (D)

Employment preference

With respect to hiring or contracting for individuals to carry out a feasibility study under subparagraph (A), the Secretary shall give preference to any member of the Blackfeet Tribe that the Secretary determines to be qualified for the position. (2)

Report

Not later than 180 days after the date on which a feasibility study is completed under paragraph (1), the Secretary shall submit to Congress a report that— (A)includes recommendations for the rehabilitation and improvement of the Blackfeet Irrigation Project; and (B)describes the amount of funds necessary for the rehabilitation and improvement of the Blackfeet Irrigation Project.

Fort Belknap Reservation feasibility study

(a)

In General

The Secretary shall conduct 1 or more studies to determine the feasibility of developing a safe and adequate rural, municipal, and industrial water supply project for the residents of the Fort Belknap Reservation and surrounding communities. (b)

Costs

Any costs incurred in carrying out the feasibility study under subsection (a) are nonreimbursable and nonreturnable to the United States.

Effect

(a)

In General

Nothing in this Act— (1)create or alters— (A)any Federal reserved water right; or (B)any other right to the use of water; (2)expands or diminishes any Federal, State, or tribal jurisdiction or authority over— (A)water resources development or control; or (B)water rights; (3)alters the private ownership of any structures, canals, and laterals owned by the Chinook Division; or (4)prohibits the Secretary, as part of an Indian water rights settlement, from using any project facilities to deliver water from the St. Mary River for the use of the Blackfeet Tribe. (b)

Reclamation Laws

No activity carried out under this Act shall be considered to be a supplemental, additional, or new benefit under the reclamation laws, including the Reclamation Reform Act of 1982 (43 U.S.C. 390aa et seq.).

10.

Authorization of appropriations

(a)

St. Mary Diversion and Conveyance Works Feasibility Studies

There is authorized to be appropriated to carry out section 3(a) $15,000,000, to remain available until expended. (b)

St. Mary Diversion and Conveyance Works Rehabilitation Project

(1)

In general

Subject to paragraph (2), there is authorized to be appropriated to carry out section 3(b) $135,000,000. (2)

Adjustment

The amount authorized under paragraph (1) shall be adjusted as necessary to account for increases in development costs after January 31, 2005, as determined using applicable engineering cost indices. (c)

Emergency Response Plan

There is authorized to be appropriated to carry out section 4 $2,000,000. (d)

Emergency Fund

There is authorized to be appropriated to the Fund $15,000,000. (e)

Milk River Project Feasibility Studies

There is authorized to be appropriated to carry out section 6(c) $10,000,000. (f)

Blackfeet Projects

There is authorized to be appropriated to carry out section 7(c) $1,000,000. (g)

Blackfeet Irrigation Project

There is authorized to be appropriated to carry out section 7(f) $5,000,000. (h)

Fort Belknap Reservation Feasibility Study

There is authorized to be appropriated to carry out section 8 $1,000,000.