[Congressional Record Volume 151, Number 51 (Monday, April 25, 2005)]
[Senate]
[Pages S4185-S4189]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. DOMENICI (for himself, Mr. Bingaman, Ms. Murkowski, Mr.
Bennett, and Mr. Johnson):
S. 895. A bill to direct the Secretary of the Interior to establish a
rural water supply program in the Reclamation States to provide a
clear, safe affordable, and reliable water supply to rural residents;
to the Committee on Environment and Public Works.
Mr. DOMENICI. Mr. President, in the 1746 Poor Richard's Almanac,
Benjamin Franklin wrote, ``When the well is dry, we learn the worth of
water.'' Nowhere is the bottom of the well approaching more quickly
than in western United States. Nearly depleted aquifers and
deteriorated infrastructure on which our small and rural communities
rely coupled with their inability to raise large amounts of capital to
afford water infrastructure has resulted in substantial want. When the
water dries up, so will many of our communities. As such, the scarcity
of water in rural western communities is a dire situation.
An article appearing on April 15, 2005 in the Wall Street Journal
elucidates the breadth of our Nation's water infrastructure need. The
article states that most water infrastructure and water treatment
plants in the U.S. are more than 50 years old and, in many cases, are
more than 100 years old. The huge capital outlays needed to
rehabilitate this aging and, in many cases, deteriorated infrastructure
far exceeds the ability of many rural communities to pay. Neither can
these communities accommodate the costs in their rate structures nor
are the necessary capital outlays within their bonding capacity.
Exacerbating this problem is that, in many western states such as
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my home state of New Mexico, ground water supplies for which many
communities have relied on for water are nearly depleted. In many
cases, the only practicable alternative for providing water to these
communities is to build public works projects to transport water from
other sources. This, too, requires large sums of money which rural and
small communities can ill-afford.
Today, I rise to introduce the Rural Water Supply Act of 2005. This
bill would begin the process of providing for the essential water needs
of rural communities in the western United States. It establishes a
federal loan guarantee program within the Bureau of Reclamation that
would allow rural communities to obtain loans at interest rates far
lower than had the loans not been guaranteed by the Federal Government.
This allows rural communities access to the large sums of money
required to construct water infrastructure while recognizing the
significant demand on the Bureau's budget. The bill also expedites the
appraisal and feasibility studies which allow these communities to
assess how best to address their water supply needs and act
accordingly. At present, rural communities have to wait for Congress to
direct the Bureau of Reclamation to proceed with appraisal and
feasibility studies. This bill expedites the appraisal and feasibility
level process by requiring that, upon request of the community, the
Bureau perform a study, provide funds to a rural water community to
perform them, or accept and review studies undertaken independently by
a community. This bill will provide much needed assistance to
struggling communities.
I would like to thank Senator Bingaman, the ranking member of the
Committee of Energy and Natural Resources who I have had the great
pleasure of serving with for over two decades for being an original co-
sponsor of this bill. In addition, I very much appreciate the
willingness of the Bureau of Reclamation to work with my staff on this
important matter.
Preserving our rural communities in the west requires that we address
this instantly and vigorously. The U.S. Congress cannot sit idly by as
water shortages cause death to our rural communities. I assure you that
this bill will receive prompt consideration in the Energy and Natural
Resources Committee and it is my sincere hope that the Senate will give
this legislation its every consideration.
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. 895
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Rural
Water Supply Act of 2005''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1 Short title; table of contents.
TITLE I--RECLAMATION RURAL WATER SUPPLY ACT OF 2005
Sec. 101 Short title.
Sec. 102 Definitions.
Sec. 103 Rural water supply program.
Sec. 104 Rural water programs assessment.
Sec. 105 Appraisal investigations.
Sec. 106 Feasibility studies.
Sec. 107 Miscellaneous.
Sec. 108 Authorization of appropriations.
TITLE II--TWENTY-FIRST CENTURY WATER WORKS ACT
Sec. 201 Short title.
Sec. 202 Definitions.
Sec. 203 Project eligibility.
Sec. 204 Loan guarantees.
Sec. 205 Operations, maintenance, and replacement costs.
Sec. 206 Title to newly constructed facilities.
Sec. 207 Water rights.
Sec. 208 Interagency coordination and cooperation.
Sec. 209 Authorization of appropriations.
TITLE I--RECLAMATION RURAL WATER SUPPLY ACT OF 2005
SEC. 101. SHORT TITLE.
This title may be cited as the ``Reclamation Rural Water
Supply Act of 2005''.
SEC. 102. DEFINITIONS.
In this title:
(1) Federal reclamation law.--The term ``Federal
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.).
(2) Indian.--The term ``Indian'' means an individual who is
a member of an Indian tribe.
(3) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(4) Non-federal project entity.--The term ``non-Federal
project entity'' means a State, regional, or local authority,
Indian tribe or tribal organization, or other qualifying
entity, such as a water conservation district, water
conservancy district, or rural water district or association.
(5) Operations, maintenance, and replacement costs.--
(A) In general.--The term ``operations, maintenance, and
replacement costs'' means all costs for the operation of a
rural water supply project that are necessary for the safe,
efficient, and continued functioning of the project to
produce the benefits described in a feasibility study.
(B) Inclusions.--The term ``operations, maintenance, and
replacement costs'' includes--
(i) repairs of a routine nature that maintain a rural water
supply project in a well kept condition;
(ii) replacement of worn-out project elements; and
(iii) rehabilitation activities necessary to bring a
deteriorated project back to the original condition of the
project.
(C) Exclusion.--The term ``operations, maintenance, and
replacement costs'' does not include construction costs.
(6) Program.--The term ``program'' means the rural water
supply program established under section 103.
(7) Reclamation states.--The term ``reclamation States''
means the States and areas referred to in the first section
of the Act of June 17, 1902 (43 U.S.C. 391).
(8) Rural water supply project.--
(A) In general.--The term ``rural water supply project''
means a project that is designed to serve a group of
communities, which may include Indian tribes and tribal
organizations, dispersed homesites, or rural areas with
domestic, industrial, municipal, and residential water, each
of which has a population of not more than 50,000
inhabitants.
(B) Inclusion.--The term ``rural water supply project''
includes--
(i) incidental noncommercial livestock watering and
noncommercial irrigation of vegetation and small gardens of
less than 1 acre; and
(ii) a project to improve rural water infrastructure,
including--
(I) pumps, pipes, wells, and other diversions;
(II) storage tanks and small impoundments;
(III) water treatment facilities for potable water
supplies;
(IV) equipment and management tools for water conservation,
groundwater recovery, and water recycling; and
(V) appurtenances.
(C) Exclusion.--The term ``rural water supply project''
does not include--
(i) commercial irrigation; or
(ii) major impoundment structures.
(9) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(10) Tribal organization.--The term ``tribal organization''
means--
(A) the recognized governing body of an Indian tribe; and
(B) any legally established organization of Indians that is
controlled, sanctioned, or chartered by the governing body or
democratically elected by the adult members of the Indian
community to be served by the organization.
SEC. 103. RURAL WATER SUPPLY PROGRAM.
(a) In General.--The Secretary, in cooperation with non-
Federal project entities and consistent with this title,
shall establish and carry out a rural water supply program in
reclamation States to--
(1) investigate and identify opportunities to ensure safe
and adequate rural water supply projects for municipal and
industrial use in small communities and rural areas of the
reclamation States; and
(2) plan the design and construction, through the conduct
of appraisal investigations and feasibility studies, of rural
water supply projects in reclamation States.
(b) Non-Federal Project Entity.--Any activity carried out
under this title shall be carried out in cooperation with a
qualifying non-Federal project entity, consistent with this
title.
(c) Eligibility Criteria.--Not later than 1 year after the
date of enactment of this Act, the Secretary shall,
consistent with this title, develop and publish in the
Federal Register criteria for--
(1) determining the eligibility of a rural community for
assistance under the program; and
(2) prioritizing requests for assistance under the program.
(d) Factors.--The criteria developed under subsection (c)
shall take into account such factors as whether--
(1) a rural water supply project--
(A) serves--
(i) rural areas and small communities; or
(ii) Indian tribes; or
(B) promotes and applies a regional or watershed
perspective to water resources management;
(2) there is an urgent and compelling need for a rural
water supply project that would--
(A) improve the health or aesthetic quality of water;
(B) result in continuous, measurable, and significant water
quality benefits; or
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(C) address current or future water supply needs;
(3) a rural water supply project helps meet applicable
requirements established by law; and
(4) a rural water supply project is cost effective.
(e) Inclusions.--The Secretary may include--
(1) to the extent that connection provides a reliable water
supply, a connection to preexisting infrastructure (including
dams and conveyance channels) as part of a rural water supply
project; and
(2) notwithstanding the limitation in section 102(8), a
town or community with a population in excess of 50,000
inhabitants in an area served by a rural water supply project
if, at the discretion of the Secretary, the town or community
is considered to be a critical partner in the rural supply
project.
SEC. 104. RURAL WATER PROGRAMS ASSESSMENT.
(a) In General.--In consultation with the Secretary of
Agriculture, the Administrator of the Environmental
Protection Agency, and the Director of the Indian Health
Service, the Secretary shall develop an assessment of--
(1) the status of all rural water supply projects under the
jurisdiction of the Secretary authorized but not completed
prior to the date of enactment of this Act, including
appropriation amounts, the phase of development, total
anticipated costs, and obstacles to completion;
(2) the current plan (including projected financial and
workforce requirements) for the completion of the rural water
supply projects within the time frames established under the
provisions of law authorizing the projects or the final
engineering reports for the projects;
(3) the demand for rural water supply projects;
(4) programs within other agencies that can, and a
description of the extent to which the programs, provide
support for rural water supply projects and water treatment
programs in reclamation States, including an assessment of
the requirements, funding levels, and conditions for
eligibility for the programs assessed; and
(5) the extent of the unmet needs that the Secretary can
meet with the program that complements activities undertaken
under the authorities already within the jurisdiction of the
Secretary and the heads of the agencies with whom the
Secretary consults.
(b) 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 a
detailed report on the assessment conducted under subsection
(a).
SEC. 105. APPRAISAL INVESTIGATIONS.
(a) In General.--On request of a non-Federal project entity
with respect to a proposed rural water supply project that
meets the eligibility criteria published under section 103(c)
and subject to the availability of appropriations, the
Secretary may--
(1) receive and review an appraisal investigation that is--
(A) developed by the non-Federal project entity independent
of support from the Secretary; and
(B) submitted to the Secretary by the non-Federal project
entity;
(2) conduct an appraisal investigation; or
(3) provide a grant to, or enter into a cooperative
agreement with, the non-Federal project entity to conduct an
appraisal investigation, if the Secretary determines that--
(A) the non-Federal project entity is qualified to complete
the appraisal investigation in accordance with the criteria
published under section 103(c); and
(B) using the non-Federal project entity to conduct the
appraisal investigation is the lowest cost alternative for
completing the appraisal investigation.
(b) Deadline.--An appraisal investigation conducted under
subsection (a) shall be scheduled for completion not later
than 2 years after the date on which the appraisal
investigation is initiated.
(c) Appraisal Report.--As soon as practicable after an
appraisal investigation is submitted to the Secretary under
subsection (a)(1) or completed under paragraph (2) or (3) of
subsection (a), the Secretary shall prepare an appraisal
report that--
(1) considers--
(A) whether the project meets--
(i) the appraisal criteria developed under subsection (d);
and
(ii) the eligibility criteria developed under section
103(c);
(B) whether viable water supplies and water rights exist to
supply the project, including all practicable water sources
such as lower quality waters, nonpotable waters, and water
reuse-based water supplies;
(C) whether the project has a positive effect on public
health and safety;
(D) whether the project will meet water demand, including
projected future needs;
(E) the extent to which the project provides environmental
benefits, including source water protection;
(F) the ability of the project to supply water consistent
with Indian trust responsibilities, as appropriate;
(G) whether the project applies a regional or watershed
perspective and promotes benefits in the region in which the
project is carried out;
(H) whether the project--
(i)(I) implements an integrated resources management
approach; or
(II) enhances water management flexibility, including
providing for--
(aa) local control to manage water supplies under varying
water supply conditions; and
(bb) participation in water banking and markets for
domestic and environmental purposes; and
(ii) promotes long-term protection of water supplies;
(I) preliminary cost estimates for the project; and
(J) whether the non-Federal project entity has the
capability to pay 100 percent of the costs associated with
the operations, maintenance, and replacement of the
facilities constructed or developed as part of the rural
water supply project; and
(2) provides recommendations on whether a feasibility study
should be initiated under section 106(a).
(d) Appraisal Criteria.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall promulgate
criteria (including appraisal factors listed under subsection
(c)) against which the appraisal investigations shall be
assessed for completeness and appropriateness for a
feasibility study.
(2) Inclusions.--To minimize the cost of a rural water
supply project to a non-Federal project entity, the Secretary
shall include in the criteria methods to scale the level of
effort needed to complete the appraisal investigation
relative to the total size and cost of the proposed rural
water supply project.
(e) Review of Appraisal Investigation.--Not later than 180
days after the date of submission of an appraisal
investigation under subsection (a)(1) or the completion of an
appraisal investigation under paragraph (2) or (3) of
subsection (a), the Secretary shall--
(1) with respect to an appraisal investigation conducted by
a non-Federal project entity under subsection (a)(1), provide
to the non-Federal entity an evaluation of whether the
appraisal investigation satisfies the criteria promulgated
under subsection (d);
(2) make available to the public, on request, the results
of each appraisal investigation conducted under this title;
and
(3) promptly publish in the Federal Register a notice of
the availability of the results.
(f) Costs.--
(1) Federal share.--The Federal share of an appraisal
investigation conducted under subsection (a) shall be 100
percent of the total cost of the appraisal investigation, up
to $200,000.
(2) Non-federal share.--
(A) In general.--Except as provided in subparagraph (B), if
the cost of conducting an appraisal investigation is more
than $200,000, the non-Federal share of the costs in excess
of $200,000 shall be 50 percent.
(B) Exception.--The Secretary may reduce the non-Federal
share required under subparagraph (A) if the Secretary
determines that there is an overwhelming Federal interest in
the appraisal investigation.
(g) Consultation; Identification of Funding Sources.--In
conducting an appraisal investigation under subsection
(a)(2), the Secretary shall--
(1) consult and cooperate with the non-Federal project
entity and appropriate State, tribal, regional, and local
authorities;
(2) consult with the heads of appropriate Federal agencies
to--
(A) ensure that the proposed rural water supply project
does not duplicate a project carried out under the authority
of the agency head; and
(B) if a duplicate project is being carried out, identify
the authority under which the duplicate project is being
carried out; and
(3) identify what funding sources are available for the
proposed rural water supply project.
SEC. 106. FEASIBILITY STUDIES.
(a) In General.--On completion of an appraisal report under
section 105(c) that recommends undertaking a feasibility
study and subject to the availability of appropriations, the
Secretary shall--
(1) in cooperation with a non-Federal project entity, carry
out a study to determine the feasibility of the proposed
rural water supply project;
(2) receive and review a feasibility study that is--
(A) developed by the non-Federal project entity independent
of support from the Secretary; and
(B) submitted to the Secretary by the non-Federal project
entity; or
(3) provide a grant to, or enter into a cooperative
agreement with, a non-Federal project entity to conduct a
feasibility study, for submission to the Secretary, if the
Secretary determines that--
(A) the non-Federal entity is qualified to complete the
feasibility study in accordance with the criteria promulgated
under subsection (d); and
(B) using the non-Federal project entity to conduct the
feasibility study is the lowest cost alternative for
completing the appraisal investigation.
(b) Review of Non-Federal Feasibility Studies.--
(1) In general.--In conducting a review of a feasibility
study submitted under paragraph (2) or (3) of subsection (a),
the Secretary shall--
(A) in accordance with the feasibility factors described in
subsection (c) and the criteria promulgated under subsection
(d), assess the completeness of the feasibility study; and
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(B) if the Secretary determines that a feasibility study is
not complete, notify the non-Federal entity of the
determination.
(2) Revisions.--If the Secretary determines under paragraph
(1)(B) that a feasibility study is not complete, the non-
Federal entity shall pay any costs associated with revising
the feasibility study.
(c) Feasibility Factors.--Feasibility studies authorized or
reviewed under this title shall include an assessment of--
(1) near- and long-term water demand in the region to be
served by the rural water supply project;
(2) advancement of public health and safety of any existing
rural water supply project and other benefits of the proposed
rural water supply project;
(3) alternative new water supplies in the study area,
including any opportunities to treat and use low-quality
water, nonpotable water, water reuse-based supplies, and
brackish and saline waters through innovative and
economically viable treatment technologies;
(4) environmental quality and source water protection
issues related to the rural water supply project;
(5) innovative opportunities for water conservation in the
study area to reduce water use and water system costs,
including--
(A) nonstructural approaches to reduce the need for the
project; and
(B) demonstration technologies;
(6) the extent to which the project and alternatives take
advantage of economic incentives and the use of market-based
mechanisms;
(7)(A) the construction costs and projected operations,
maintenance, and replacement costs of all alternatives; and
(B) the economic feasibility and lowest cost method of
obtaining the desired results of each alternative, taking
into account the Federal cost-share;
(8) the availability of guaranteed loans for a proposed
rural water supply project;
(9) the financial capability of the non-Federal project
entity to pay the non-Federal project entity's proportionate
share of the design and construction costs and 100 percent of
operations, maintenance, and replacement costs, including the
allocation of costs to each non-Federal project entity in the
case of multiple entities;
(10) whether the non-Federal project entity has developed
an operations, management, and replacement plan to assist the
non-Federal project entity in establishing rates and fees for
beneficiaries of the rural water supply project;
(11)(A) the non-Federal project entity administrative
organization that would implement construction, operations,
maintenance, and replacement activities; and
(B) the fiscal, administrative, and operational controls to
be implemented to manage the project;
(12) the extent to which the project addresses Indian trust
responsibilities, as appropriate;
(13) the extent to which assistance for rural water supply
is available under other Federal authorities;
(14) the engineering, environmental, and economic
activities to be undertaken to carry out the study;
(15) the extent to which the project involves partnerships
with other State, local, or tribal governments or Federal
entities; and
(16) in the case of a project intended for Indian tribes
and tribal organizations, the extent to which the project
addresses the goal of economic self-sufficiency.
(d) Feasibility Study Criteria.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall promulgate
criteria (including the feasibility factors listed under
subsection (c)) under which the feasibility studies shall be
assessed for completeness and appropriateness.
(2) Inclusions.--The Secretary shall include in the
criteria promulgated under paragraph (1) methods to scale the
level of effort needed to complete the feasibility assessment
relative to the total size and cost of the proposed rural
water supply project and reduce total costs to non-Federal
entities.
(e) Feasibility Report.--
(1) In general.--After completion of appropriate
feasibility studies for rural water supply projects that
address the factors described in subsection (c) and the
criteria promulgated under subsection (d), the Secretary
shall--
(A) develop a feasibility report that includes--
(i) a recommendation of the Secretary on--
(I) whether the rural water supply project should be
authorized for construction; and
(II) the appropriate non-Federal share of construction
costs, which shall be--
(aa) at least 25 percent of the total construction costs;
and
(bb) determined based on an analysis of the capability-to-
pay information considered under subsections (c)(9) and (f);
and
(ii) if the Secretary recommends that the project should be
authorized for construction--
(I) what amount of grants, loan guarantees, or combination
of grants and loan guarantees should be used to provide the
Federal cost share;
(II) a schedule that identifies the annual operations,
maintenance, and replacement costs that should be allocated
to each non-Federal entity participating in the rural water
supply project; and
(III) an assessment of the financial capability of each
non-Federal entity participating in the rural water supply
project to pay the allocated annual operation, maintenance,
and replacement costs for the rural water supply project;
(B) submit the report to the Committee on Energy and
Natural Resources of the Senate and the Committee on
Resources of the House of Representatives;
(C) make the report publicly available, along with
associated study documents; and
(D) publish in the Federal Register a notice of the
availability of the results.
(f) Capability-To-Pay.--
(1) In general.--In evaluating a proposed rural water
supply project under this section, the Secretary shall--
(A) consider the financial capability of any non-Federal
project entities participating in the rural water supply
project to pay the capital construction costs of the rural
water supply project; and
(B) recommend an appropriate Federal share and non-Federal
share of the capital construction costs, as determined by the
Secretary.
(2) Factors.--In determining the financial capability of
non-Federal project entities to pay for a rural water supply
project under paragraph (1), the Secretary shall evaluate
factors for the project area, relative to the State and
county average, including--
(A) per capita income;
(B) median household income;
(C) the poverty rate;
(D) the ability of the non-Federal project entity to raise
tax revenues or assess fees;
(E) the strength of the balance sheet of the non-Federal
project entity; and
(F) the existing cost of water in the region.
(3) Indian tribes.--In determining the capability-to-pay of
Indian tribe project beneficiaries, the Secretary may
consider deferring the collection of all or part of the non-
Federal construction costs apportioned to Indian tribe
project beneficiaries unless or until the Secretary
determines that the Indian tribe project beneficiaries should
pay--
(A) the costs allocated to the beneficiaries; or
(B) an appropriate portion of the costs.
(g) Cost-Sharing Requirement.--
(1) In general.--Except as otherwise provided in this
subsection, 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.--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.
(3) Financial hardship.--The Secretary may increase the
Federal share of the costs of a feasibility study if the
Secretary determines, based on a demonstration of financial
hardship, that the non-Federal participant is unable to
contribute at least 50 percent of the costs of the study.
(4) Larger communities.--In conducting a feasibility study
of a rural water supply system that includes a community with
a population in excess of 50,000 inhabitants, the Secretary
may require the community to pay a greater percentage of the
non-Federal share than that required for communities with
less than 50,000 inhabitants.
(h) Consultation and Cooperation.--In addition to the non-
Federal project entity, the Secretary shall consult and
cooperate with appropriate Federal, State, tribal, regional,
and local authorities during the conduct of each feasibility
assessment and development of the feasibility report
conducted under this title.
SEC. 107. MISCELLANEOUS.
(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 title.
(b) Transfer of Projects.--Nothing in this title authorizes
the transfer of pre-existing facilities or pre-existing
components of any water system from Federal to private
ownership or from private to Federal ownership.
(c) Federal Reclamation Law.--Nothing in this title
supersedes or amends any Federal law associated with a
project, or portion of a project, constructed under Federal
reclamation law.
(d) Interagency Coordination.--The Secretary shall
coordinate the program carried out under this title with
existing Federal and State rural water and wastewater
programs to facilitate the most efficient and effective
solution to meeting the water needs of the non-Federal
project sponsors.
(e) Multiple Indian Tribes.--In any case in which a
contract is entered into with, or a grant is made, to an
organization to perform services benefitting more than 1
Indian tribe under this title, the approval of each such
Indian tribe shall be a prerequisite to entering into the
contract or making the grant.
(f) Ownership of Facilities.--Title to any facility
planned, designed, and recommended for construction under
this title is intended to be held by the non-Federal project
entity.
(g) Effect on State Water Law.--
(1) In general.--Nothing in this title preempts or affects
State water law or an interstate compact governing water.
(2) Compliance required.--The Secretary shall comply with
State water laws in carrying out this title.
(h) No Additional Requirements.--Nothing in this title
requires a feasibility study for, or imposes any other
additional requirements with respect to, rural water supply
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projects or programs that are authorized before the date of
enactment of this Act.
SEC. 108. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There is authorized to be appropriated to
carry out this title $20,000,000 for the period of fiscal
years 2006 through 2015, to remain available until expended.
(b) Rural Water Programs Assessment.--Of the amounts made
available under subsection (a), not more than $1,000,000 may
be made available to carry out section 104 for each of fiscal
years 2006 and 2007.
(c) Limitation.--No amounts made available under this
section shall be used to pay construction costs associated
with any rural water supply project.
TITLE II--TWENTY-FIRST CENTURY WATER WORKS ACT
SEC. 201. SHORT TITLE.
This title may be cited as the ``Twenty-First Century Water
Works Act''.
SEC. 202. DEFINITIONS.
In this title:
(1) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(2) Lender.--The term ``lender'' means any non-Federal
qualified institutional buyer (as defined in section
230.144A(a) of title 17, Code of Federal Regulation (or any
successor regulation), known as Rule 144A(a) of the
Securities and Exchange Commission and issued under the
Securities Act of 1933 (15 U.S.C. 77a et seq.)).
(3) Loan guarantee.--The term ``loan guarantee'' means any
guarantee, insurance, or other pledge by the Secretary to pay
all or part of the principal of, and interest on, a loan or
other debt obligation of a non-Federal borrower to a lender.
(4) Non-federal borrower.--The term ``non-Federal
borrower'' means--
(A) a State (including a department, agency, or political
subdivision of a State); or
(B) a conservancy district, irrigation district, canal
company, water users' association, Indian tribe, an agency
created by interstate compact, or any other entity that has
the capacity to contract with the United States under Federal
reclamation law.
(5) Project.--The term ``project'' means--
(A) a rural water supply project (as defined in section
102(8)); or
(B) an extraordinary operation and maintenance activity
for, or the rehabilitation of, a facility--
(i) that is authorized by Federal reclamation law and
constructed by the United States under such law; or
(ii) in connection with which there is a repayment or water
service contract executed by the United States under Federal
reclamation law.
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
SEC. 203. PROJECT ELIGIBILITY.
(a) Eligibility Criteria.--
(1) In general.--The Secretary shall develop and publish in
the Federal Register criteria for determining the eligibility
of a project for financial assistance under section 204.
(2) Inclusions.--Eligibility criteria shall include--
(A) submission of an application by the lender to the
Secretary;
(B) demonstration of the creditworthiness of the project,
including a determination by the Secretary that any financing
for the project has appropriate security features to ensure
repayment;
(C) demonstration by the non-Federal borrower, to the
satisfaction of the Secretary, of the ability of the non-
Federal borrower to repay the project financing from user
fees or other dedicated revenue sources;
(D) demonstration by the non-Federal borrower, to the
satisfaction of the Secretary, of the ability of the non-
Federal borrower to pay all operations, maintenance, and
replacement costs of the project facilities; and
(E) such other criteria as the Secretary determines to be
appropriate.
(b) Waiver.--The Secretary may waive any of the criteria in
subsection (a)(2) that the Secretary determines to be
duplicative or rendered unnecessary because of an action
already taken by the United States.
(c) Projects Previously Authorized.--A project that was
authorized for construction under Federal reclamation laws
prior to the date of enactment of this Act shall be eligible
for assistance under this title, subject to the criteria
established by the Secretary under subsection (a).
(d) Criteria for Rural Water Supply Projects.--A rural
water supply project that is determined to be feasible under
section 106 is eligible for a loan guarantee under section
204.
SEC. 204. LOAN GUARANTEES.
(a) Authority.--Subject to the availability of
appropriations, the Secretary may make available to lenders
for a project meeting the eligibility criteria established in
section 203 loan guarantees to supplement private-sector or
lender financing for the project.
(b) Terms and Limitations.--
(1) In general.--Loan guarantees under this section for a
project shall be on such terms and conditions and contain
such covenants, representations, warranties, and requirements
as the Secretary determines to be appropriate to protect the
financial interests of the United States.
(2) Maximum amount.--The amount of a loan guarantee shall
not exceed 90 percent of the reasonably anticipated eligible
project costs.
(3) Interest rate.--The interest rate on a loan guarantee
shall be negotiated between the non-Federal borrower and the
lender with the consent of the Secretary.
(4) Amortization.--A loan guarantee under this section
shall provide for complete amortization of the loan guarantee
within not more than 40 years.
(5) Non-subordination.--In case of bankruptcy, insolvency,
or liquidation of the non-Federal borrower, a loan guarantee
shall not be subordinated to the claims of any holder of
project obligations.
(c) Prepayment and Refinancing.--Any prepayment or
refinancing terms on a loan guarantee shall be negotiated
between the non-Federal borrower and the lender with the
consent of the Secretary.
SEC. 205. OPERATIONS, MAINTENANCE, AND REPLACEMENT COSTS.
(a) In General.--The non-Federal share of operations,
maintenance, and replacement costs for a project receiving
Federal assistance under this title shall be 100 percent.
(b) Plan.--On request of the non-Federal borrower, the
Secretary may assist in the development of an operation,
maintenance, and replacement plan to provide the necessary
framework to assist the non-Federal borrower in establishing
rates and fees for project beneficiaries.
SEC. 206. TITLE TO NEWLY CONSTRUCTED FACILITIES.
(a) New Projects and Facilities.--All new projects or
facilities constructed in accordance with this title shall
remain under the jurisdiction and control of the non-Federal
borrower subject to the terms of the repayment agreement.
(b) Existing Projects and Facilities.--Nothing in this
title affects the title of--
(1) reclamation projects authorized prior to the date of
enactment of this Act;
(2) works supplemental to existing reclamation projects; or
(3) works constructed to rehabilitate existing reclamation
projects.
SEC. 207. WATER RIGHTS.
(a) In General.--Nothing in this title preempts or affects
State water law or an interstate compact governing water.
(b) Compliance Required.--The Secretary shall comply with
State water laws in carrying out this title. Nothing in this
title affects or preempts State water law or an interstate
compact governing water.
SEC. 208. INTERAGENCY COORDINATION AND COOPERATION.
The Secretary and the Secretary of Agriculture shall enter
into a memorandum of agreement providing for Department of
Agriculture financial appraisal functions and loan guarantee
administration for activities carried out under this title.
SEC. 209. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are
necessary to carry out this title, to remain available until
expended.
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