[Congressional Record Volume 149, Number 144 (Wednesday, October 15, 2003)]
[Senate]
[Pages S12609-S12610]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. Domenici:
  S. 1732. A bill to direct the Secretary of the Interior to establish 
a rural water supply program in the Reclamation States to provide a 
clean, safe, affordable, and reliable water supply to rural residents; 
to the Committee on Energy and Natural Resources.
  Mr. DOMENICI. Mr. President, I rise today to introduce a bill that is 
critical to rural America and long overdue. My bill would help to 
ensure that our rural communities continue to thrive and flourish by 
guaranteeing a safe, reliable water supply.
  There is no comprehensive program in existence that rural communities 
can tap into to meet increasing demands for rural water infrastructure. 
My bill will remedy this problem by creating such a program within the 
Department of the Interior, specifically in the Bureau of Reclamation. 
My bill authorizes the Secretary of the Interior to undertake a 
competitive program to plan, design, and construct rural water supply 
projects in conjunction with non-Federal local entities.
  To date, there is no Federal program specifically in place with the 
purpose of meeting the rural water needs of communities and tribes. As 
a result, we either offer piece meal help through EPA grants or 
communities turn to other programs that were originally designed for 
other purposes.
  In the State of New Mexico alone, there are numerous projects that 
would benefit from a program such as the one I propose in this bill. 
Let me just share one example with you--the community of Chimayo, NM. 
Chimayo is in northern New Mexico tucked in the foothills of the 
beautiful Sangre de Christo Mountains. This historic and picturesque 
community is over 400 years old. Today, the small community of less 
than 3000 people is forced to haul water because they lack adequate 
infrastructure to service their homes. I know that other States in the 
west have communities with similar needs.
  My bill requires the Secretary to look at whether or not a community 
has an urgent and compelling need, whether construction of a rural 
water system would help alleviate future water supply shortages, 
whether it would help improve health of water quality to name just a 
few. Additionally, my bill is based on the communities capability to 
pay. Again, I will speak about New Mexico where many of these 
communities are among the poorest. Yet, I don't believe that should 
preclude them from the most basic resource--a safe and reliable 
drinking water supply.
  I know that many are aware of the on-going drought conditions in the 
west. Our best experts have predicted that this will only get worse. 
Many of America's rural communities are being hit the hardest by these 
worsening drought conditions. I believe my bill goes a long way in 
helping these already struggling communities. This issue is of such 
huge importance to me, that I intend to ask Senator Murkowski to hold a 
Water and Power Subcommittee hearing on this bill as early as next 
week. We have critical needs that need to be addressed and I urge my 
fellow Senators to help ensure that we can indeed meet them.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1732

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION. 1. SHORT TITLE.

       This Act may be cited as ``The Reclamation Rural Water 
     Supply Act of 2003''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Construct.--The term ``construct'' means to--
       (A) install new infrastructure; and
       (B) upgrade or replace existing facilities that are 
     associated with the new infrastructure authorized under this 
     Act.
       (2) Indian tribe.--The term ``Indian tribe'' means any 
     Indian entity that is--
       (A) included on the list of recognized tribes that the 
     Secretary publishes in the Federal Register in accordance 
     with section 104 of the Federally Recognized Indian Tribe 
     List Act of 1994 (25 U.S.C. 479a-1); and
       (B) recognized by the Secretary as eligible to receive 
     services from the Federal Government.
       (3) Non-federal project entity.--The term ``non-Federal 
     project entity'' means a State, regional, or local authority, 
     Indian tribe, or other qualifying entity, such as a water 
     conservation district, water conservancy district, or rural 
     water district or association.
       (4) Program.--The term ``program'' means the rural water 
     supply program established under section 3(a).
       (5) Project.--
       (A) In general.--The term ``project'' means a water supply 
     project for communities, an Indian tribe, or dispersed 
     homesites with domestic or rural water.
       (B) Inclusion.--The term ``project'' includes incidental 
     livestock watering.
       (6) Reclamation law.--The term ``Reclamation law'' means 
     the Act of June 17, 1902 (32 Stat. 388, chapter 1093), and 
     Acts supplemental to and amendatory of that Act (43 U.S.C. 
     371 et seq.)).
       (7) Reclamation state.--The term ``Reclamation State'' 
     means each of the States identified in the first section of 
     the Act of June 17, 1902 (43 U.S.C. 391).
       (8) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 3. RURAL WATER SUPPLY PROGRAM.

       (a) In General.--The Secretary, in cooperation with non-
     Federal project entities, may carry out a rural water supply 
     program to plan, design, and construct projects in 
     Reclamation States.
       (b) Eligibility Criteria.--
       (1) In general.--The Secretary shall develop and publish in 
     the Federal Register criteria for determining the eligibility 
     of a project for assistance under the program.
       (2) Considerations.--The criteria developed under paragraph 
     (1) shall take into account such factors as--
       (A) whether a project serves--
       (i) rural areas and communities; or
       (ii) Indian tribes;

[[Page S12610]]

       (B) whether there is an urgent and compelling need for a 
     project that would--
       (i) result in continuous, measurable, and significant water 
     quality benefits;
       (ii) address current or future water supply shortages; or
       (iii) improve the health or aesthetic quality of water;
       (C) whether a project helps meet any applicable legal 
     requirements;
       (D) whether a project--
       (i) promotes and applies a regional or watershed 
     perspective to water resource management or cross-boundary 
     issues;
       (ii) implements an integrated resources management 
     approach;
       (iii) increases water management flexibility; or
       (iv) forms a partnership with other entities; and
       (E) whether a project provides benefits outside the region 
     in which the project is carried out.
       (c) Cost-Sharing Requirement.--
       (1) Federal share.--The Federal share of the cost of the 
     planning and construction of a project shall be the amount 
     established by the Secretary in the feasibility report for 
     the project under section 5(c)(1)(D)(i).
       (2) Non-federal share.--
       (A) In general.--Except as provided in subparagraph (B), 
     the non-Federal share shall be not less than 25 percent of 
     the cost of planning and construction of the project, but not 
     more than the amount established by the Secretary in the 
     feasibility report for the project under section 
     5(c)(1)(D)(i).
       (B) Reduced non-federal share.--The Secretary may reduce 
     the non-Federal share of the cost of the planning and 
     construction of a project under subparagraph (A) if the 
     Secretary determines that the amount of the non-Federal share 
     required by that subparagraph would result in economic 
     hardship for the non-Federal project entity.
       (C) Limitation.--Grants from other Federal sources shall 
     not be credited toward the non-Federal share required by this 
     paragraph.

     SEC. 4. APPRAISAL INVESTIGATIONS.

       (a) In General.--On request of a non-Federal project 
     entity, the Secretary, in cooperation with the non-Federal 
     project entity and in consultation with appropriate State, 
     regional, local, and tribal authorities, may conduct an 
     appraisal investigation of a project to determine whether--
       (1) the project meets the criteria developed under section 
     (3)(b); and
       (2) the Secretary should initiate a feasibility study under 
     section 5(a).
       (b) Report.--On completion of the investigation under 
     subsection (a), the Secretary shall prepare an appraisal 
     report that includes any recommendations of the Secretary 
     with respect to whether a feasibility study should be 
     initiated for the project under section 5(a).
       (c) Costs.--The Secretary shall pay the costs of any 
     appraisal investigations conducted under this section.

     SEC. 5. FEASIBILITY STUDIES.

       (a) In General.--The Secretary, in cooperation with a non-
     Federal project entity, may carry out studies to determine 
     the feasibility of rural water supply systems recommended for 
     study under section 4(b).
       (b) Study Considerations.--In conducting a feasibility 
     study under this section, the Secretary shall consider--
       (1) the need for the proposed project;
       (2) short- and long-term water demand and supplies in the 
     study area;
       (3) an evaluation of whether the resources in the study 
     area are capable of providing a safe and reliable source of 
     potable water to the communities and rural areas to be 
     served;
       (4) any reasonable alternatives to the proposed project 
     (including nonstructural alternatives) that satisfy the need 
     for action, including an alternative that is within the 
     ability of the non-Federal project entity to pay operation, 
     maintenance, and repair costs of the proposed project;
       (5) the economic feasibility and cost effectiveness of the 
     proposed project;
       (6) impacts of the proposed project on the natural and 
     human environment;
       (7) appropriate water conservation measures; and
       (8) the financial ability of the non-Federal project entity 
     to pay--
       (A) the non-Federal share of any planning and construction 
     costs of the proposed project; and
       (B) 100 percent of the operation, maintenance, and 
     replacement costs allocated under subsection (c)(1)(C)(i).
       (c) Report.--
       (1) In general.--On completion of a feasibility study under 
     subsection (a), the Secretary shall prepare a report that--
       (A) describes the engineering, environmental, and economic 
     activities of the Secretary carried out under the study;
       (B) takes into consideration--
       (i) the range of potential solutions for, and the 
     circumstances and needs of, the area to be served by the 
     proposed project;
       (ii) the potential benefits to the people of the study 
     area; and
       (iii) appropriate water conservation measures;
       (C) includes a schedule that identifies--
       (i) the amount of operation, maintenance, and replacement 
     costs that should be allocated to each non-Federal project 
     entity participating in the project; and
       (ii) the current and expected financial ability of each 
     non-Federal project entity to pay the allocated operation, 
     maintenance, and replacement costs;
       (D)(i) specifies the Federal and non-Federal share of the 
     planning and construction costs of the project; and
       (ii) allocates the non-Federal share among project 
     beneficiaries; and
       (E) includes the recommendations of the Secretary as to 
     whether the project should be carried out under this Act.
       (2) Submission to Congress.--With respect to any project 
     that the Secretary recommends under paragraph (1)(E), the 
     Secretary shall submit to Congress--
       (A) the feasibility report for the proposed project 
     prepared under paragraph (1);
       (B) any environmental reports associated with the proposed 
     project; and
       (C) a request to develop and construct the proposed 
     project, as appropriate.
       (d) Priorities.--The Secretary shall establish priorities 
     for carrying out projects under this Act based on--
       (1) the extent to which the project takes advantage of--
       (A) economic incentives; and
       (B) the use of market-based mechanisms;
       (2) the cost benefit of the project versus other 
     alternatives such as desalination;
       (3) whether non-Federal project entities have adequate 
     fiscal controls in place to manage the project; and
       (4) the extent to which the project involves partnerships.
       (e) Cost-sharing requirement.--
       (1) Federal share.--The Federal share of the cost of a 
     feasibility study carried out under this section shall not 
     exceed 50 percent of the study costs.
       (2) Form of non-federal share.--The non-Federal share under 
     paragraph (1) may be in the form of any in-kind services that 
     the Secretary determines would contribute substantially 
     toward the conduct and completion of the study.
       (f) Reimbursement of costs.--If a project is constructed 
     under the program, the Federal share of feasibility studies 
     shall be--
       (1) considered to be project costs; and
       (2) reimbursed in accordance with Reclamation law.

     SEC. 6. OPERATION, MAINTENANCE, AND REPLACEMENT COSTS.

       (a) In General.--To be eligible to carry out a project 
     under this Act, a non-Federal project entity shall establish, 
     to the satisfaction of the Secretary, that the non-Federal 
     project entity has the ability to pay all operation, 
     maintenance, and replacement costs of the project facilities.
       (b) Plan.--The non-Federal project entity, in consultation 
     with the Secretary, shall develop an operation, maintenance, 
     and replacement plan to provide the necessary framework to 
     assist the non-Federal project entity in establishing rates 
     and fees for project beneficiaries.

     SEC. 7. MISCELLANEOUS PROVISIONS.

       (a) Authority of Secretary.--The Secretary may enter into 
     contracts, financial assistance agreements, and such other 
     agreements, and promulgate such regulations, as are necessary 
     to carry out this Act.
       (b) Limitation on Use of Funds.--None of the funds made 
     available to the Secretary for planning or construction of a 
     rural water supply project developed under the program may be 
     used to plan or construct facilities used to supply water for 
     irrigation.
       (c) Title to projects.--Title to the components of rural 
     water supply projects planned, designed, and constructed 
     under the program shall be held by the non-Federal project 
     entity.

     SEC. 8. EFFECT ON FEDERAL RECLAMATION LAW.

       Nothing in this Act supersedes or amends--
       (1) Reclamation law; or
       (2) any Federal law associated with a project, or portion 
     of a project constructed under Reclamation law.

     SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There is authorized to be appropriated to 
     carry out this Act $70,000,000 for fiscal year 2004 and each 
     fiscal year thereafter.
       (b) Construction Cost Indexing.--
       (1) In general.--Any amounts appropriated for the planning 
     and construction of projects under this Act shall include 
     such sums as are necessary to defray increases in development 
     costs reflected in appropriate engineering cost indices after 
     the completion date of the applicable feasibility report, to 
     remain available until expended.
       (2) Cost sharing.--The Federal and non-Federal share of 
     cost increases due to inflation shall be allocated in amounts 
     that are proportionate to the allocation determined under 
     section 3(c).
                                 ______