Short title

This Act may be cited as the

Eastern New Mexico Rural Water System Authorization Act

Definitions

In this Act: (1)

Authority

The term Authority means the Eastern New Mexico Rural Water Authority, an entity formed under State law for the purposes of planning, financing, developing, and operating the System. (2)

Engineering Report

The term engineering report means the report entitled Eastern New Mexico Rural Water System Preliminary Engineering Report and dated October 2006. (3)

Plan

The term plan means the operation, maintenance, and replacement plan required by section 4(b). (4)

Secretary

The term Secretary means the Secretary of the Interior. (5)

State

The term State means the State of New Mexico. (6)

System

(A)

In general

The term System means the Eastern New Mexico Rural Water System, a water delivery project designed to deliver approximately 16,500 acre-feet of water per year from the Ute Reservoir to the cities of Clovis, Elida, Grady, Melrose, Portales, and Texico and other locations in Curry, Roosevelt, and Quay Counties in the State. (B)

Inclusions

The term System includes the major components and associated infrastructure identified as the Best Technical Alternative in the engineering report. (7)

Ute reservoir

The term Ute Reservoir means the impoundment of water created in 1962 by the construction of the Ute Dam on the Canadian River, located approximately 32 miles upstream of the border between New Mexico and Texas.

Eastern New Mexico Rural Water System

(a)

Financial Assistance

(1)

In general

The Secretary may provide financial and technical assistance to the Authority to assist in planning, designing, conducting related preconstruction activities for, and constructing the System. (2)

Use

(A)

In general

Any financial assistance provided under paragraph (1) shall be obligated and expended only in accordance with a cooperative agreement entered into under section 5(a)(2). (B)

Limitations

Financial assistance provided under paragraph (1) shall not be used— (i)for any activity that is inconsistent with constructing the System; or (ii)to plan or construct facilities used to supply irrigation water for irrigated agricultural purposes. (b)

Cost-Sharing Requirement

(1)

In general

The Federal share of the total cost of any activity or construction carried out using amounts made available under this Act shall be not more than 75 percent of the total cost of the System. (2)

System development costs

For purposes of paragraph (1), the total cost of the System shall include any costs incurred by the Authority or the State on or after October 1, 2003, for the development of the System. (c)

Limitation

No amounts made available under this Act may be used for the construction of the System until— (1)a plan is developed under section 4(b); and (2)the Secretary and the Authority have complied with any requirements of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) applicable to the System. (d)

Title to Project Works

Title to the infrastructure of the System shall be held by the Authority or as may otherwise be specified under State law.

Operation, maintenance, and replacement costs

(a)

In General

The Authority shall be responsible for the annual operation, maintenance, and replacement costs associated with the System. (b)

Operation, Maintenance, and Replacement Plan

The Authority, in consultation with the Secretary, shall develop an operation, maintenance, and replacement plan that establishes the rates and fees for beneficiaries of the System in the amount necessary to ensure that the System is properly maintained and capable of delivering approximately 16,500 acre-feet of water per year.

Administrative provisions

(a)

Cooperative Agreements

(1)

In general

The Secretary may enter into any contract, grant, cooperative agreement, or other agreement that is necessary to carry out this Act. (2)

Cooperative agreement for provision of financial assistance

(A)

In general

The Secretary shall enter into a cooperative agreement with the Authority to provide financial assistance and any other assistance requested by the Authority for planning, design, related preconstruction activities, and construction of the System. (B)

Requirements

The cooperative agreement entered into under subparagraph (A) shall, at a minimum, specify the responsibilities of the Secretary and the Authority with respect to— (i)ensuring that the cost-share requirements established by section 3(b) are met; (ii)completing the planning and final design of the System; (iii)any environmental and cultural resource compliance activities required for the System; and (iv)the construction of the System. (b)

Technical Assistance

At the request of the Authority, the Secretary may provide to the Authority any technical assistance that is necessary to assist the Authority in planning, designing, constructing, and operating the System. (c)

Biological assessment

The Secretary shall consult with the New Mexico Interstate Stream Commission and the Authority in preparing any biological assessment under the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) that may be required for planning and constructing the System. (d)

Effect

Nothing in this Act–— (1)affects or preempts— (A)State water law; or (B)an interstate compact relating to the allocation of water; or (2)confers on any non-Federal entity the ability to exercise any Federal rights to— (A)the water of a stream; or (B)any groundwater resource.

Authorization of appropriations

(a)

In General

In accordance with the adjustment carried out under subsection (b), there is authorized to be appropriated to the Secretary to carry out this Act an amount not greater than $327,000,000. (b)

Adjustment

The amount made available under subsection (a) shall be adjusted to reflect changes in construction costs occurring after January 1, 2007, as indicated by engineering cost indices applicable to the types of construction necessary to carry out this Act. (c)

Nonreimbursable Amounts

Amounts made available to the Authority in accordance with the cost-sharing requirement under section 3(b) shall be nonreimbursable and nonreturnable to the United States. (d)

Availability of Funds

At the end of each fiscal year, any unexpended funds appropriated pursuant to this Act shall be retained for use in future fiscal years consistent with this Act.