[House Report 106-374]
[From the U.S. Government Publishing Office]





106th Congress                                                   Report
  1st Session           HOUSE OF REPRESENTATIVES                106-374

======================================================================



 
  CHIPPEWA CREE TRIBE OF THE ROCKY BOY'S RESERVATION INDIAN RESERVED 
    WATER RIGHTS SETTLEMENT AND WATER SUPPLY ENHANCEMENT ACT OF 1999

                                _______


October 12, 1999.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Young of Alaska, from the Committee on Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 795]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Resources, to whom was referred the bill 
(H.R. 795) to provide for the settlement of the water rights 
claims of the Chippewa Cree Tribe of the Rocky Boy's 
Reservation, and for other purposes, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Chippewa Cree Tribe of The Rocky Boy's 
Reservation Indian Reserved Water Rights Settlement and Water Supply 
Enhancement Act of 1999''.

SEC. 2. FINDINGS.

  Congress finds that--
          (1) in fulfillment of its trust responsibility to Indian 
        tribes and to promote tribal sovereignty and economic self-
        sufficiency, it is the policy of the UnitedStates to settle the 
water rights claims of the tribes without lengthy and costly 
litigation;
          (2) the Rocky Boy's Reservation was established as a homeland 
        for the Chippewa Cree Tribe;
          (3) adequate water for the Chippewa Cree Tribe of the Rocky 
        Boy's Reservation is important to a permanent, sustainable, and 
        sovereign homeland for the Tribe and its members;
          (4) the sovereignty of the Chippewa Cree Tribe and the 
        economy of the Reservation depend on the development of the 
        water resources of the Reservation;
          (5) the planning, design, and construction of the facilities 
        needed to utilize water supplies effectively are necessary to 
        the development of a viable Reservation economy and to 
        implementation of the Chippewa Cree-Montana Water Rights 
        Compact;
          (6) the Rocky Boy's Reservation is located in a water-short 
        area of Montana and it is appropriate that the Act provide 
        funding for the development of additional water supplies, 
        including domestic water, to meet the needs of the Chippewa 
        Cree Tribe;
          (7) proceedings to determine the full extent of the water 
        rights of the Chippewa Cree Tribe are currently pending before 
        the Montana Water Court as a part of the case ``In the Matter 
        of the Adjudication of All Rights to the Use of Water, Both 
        Surface and Underground, within the State of Montana'';
          (8) recognizing that final resolution of the general stream 
        adjudication will take many years and entail great expense to 
        all parties, prolong uncertainty as to the availability of 
        water supplies, and seriously impair the long-term economic 
        planning and development of all parties, the Chippewa Cree 
        Tribe and the State of Montana entered into the Compact on 
        April 14, 1997; and
          (9) the allocation of water resources from the Tiber 
        Reservoir to the Chippewa Cree Tribe under this Act is uniquely 
        suited to the geographic, social, and economic characteristics 
        of the area and situation involved.

SEC. 3. PURPOSES.

  The purposes of this Act are as follows:
          (1) To achieve a fair, equitable, and final settlement of all 
        claims to water rights in the State of Montana for--
                  (A) the Chippewa Cree Tribe; and
                  (B) the United States for the benefit of the Chippewa 
                Cree Tribe.
          (2) To approve, ratify, and confirm, as modified in this Act, 
        the Chippewa Cree-Montana Water Rights Compact entered into by 
        the Chippewa Cree Tribe of the Rocky Boy's Reservation and the 
        State of Montana on April 14, 1997, and to provide funding and 
        other authorization necessary for the implementation of the 
        Compact.
          (3) To authorize the Secretary of the Interior to execute and 
        implement the Compact referred to in paragraph (2) and to take 
        such other actions as are necessary to implement the Compact in 
        a manner consistent with this Act.
          (4) To authorize Federal feasibility studies designed to 
        identify and analyze potential mechanisms to enhance, through 
        conservation or otherwise, water supplies in north central 
        Montana, including mechanisms to import domestic water supplies 
        for the future growth of the Rocky Boy's Indian Reservation.
          (5) To authorize certain projects on the Rocky Boy's Indian 
        Reservation, Montana, in order to implement the Compact.
          (6) To authorize certain modifications to the purposes and 
        operation of the Bureau of Reclamation's Tiber Dam and Lake 
        Elwell on the Marias River in Montana in order to provide the 
        Tribe with an allocation of water from Tiber Reservoir.
          (7) To authorize the appropriation of funds necessary for the 
        implementation of the Compact.

SEC. 4. DEFINITIONS.

  In this Act:
          (1) Act.--The term ``Act'' means the ``Chippewa Cree Tribe of 
        The Rocky Boy's Reservation Indian Reserved Water Rights 
        Settlement and Water Supply Enhancement Act of 1999''.
          (2) Compact.--The term ``Compact'' means the water rights 
        compact between the Chippewa Cree Tribe of the Rocky Boy's 
        Reservation and the State of Montana contained in section 85-
        20-601 of the Montana Code Annotated (1997).
          (3) Final.--The term ``final'' with reference to approval of 
        the decree in section 101(b) means completion of any direct 
        appeal to the Montana Supreme Court of a final decree by the 
        Water Court pursuant to section 85-2-235 of theMontana Code 
Annotated (1997), or to the Federal Court of Appeals, including the 
expiration of the time in which a petition for certiorari may be filed 
in the United States Supreme Court, denial of such a petition, or the 
issuance of the Supreme Court's mandate, whichever occurs last.
          (4) Fund.--The term ``Fund'' means the Chippewa Cree Indian 
        Reserved Water Rights Settlement Fund established under section 
        104.
          (5) Indian tribe.--The term ``Indian tribe'' has the meaning 
        given that term in section 101(2) of the Federally Recognized 
        Indian Tribe List Act of 1994 (25 U.S.C. 479a(2)).
          (6) MR&I feasibility study.--The term ``MR&I feasibility 
        study'' means a municipal, rural, and industrial, domestic, and 
        incidental drought relief feasibility study described in 
        section 202.
          (7) Missouri river system.--The term ``Missouri River 
        System'' means the mainstem of the Missouri River and its 
        tributaries, including the Marias River.
          (8) Reclamation law.--The term ``Reclamation Law'' has the 
        meaning given the term ``reclamation law'' in section 4 of the 
        Act of December 5, 1924 (43 Stat. 701, chapter 4; 43 U.S.C. 
        371).
          (9) Rocky boy's reservation; reservation.--The term ``Rocky 
        Boy's Reservation'' or ``Reservation'' means the Rocky Boy's 
        Reservation of the Chippewa Cree Tribe in Montana.
          (10) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior, or his or her duly authorized representative.
          (11) Towe ponds.--The term ``Towe Ponds'' means the reservoir 
        or reservoirs referred to as ``Stoneman Reservoir'' in the 
        Compact.
          (12) Tribal compact administration.--The term ``Tribal 
        Compact Administration'' means the activities assumed by the 
        Tribe for implementation of the Compact as set forth in Article 
        IV of the Compact.
          (13) Tribal water code.--The term ``tribal water code'' means 
        a water code adopted by the Tribe, as provided in the Compact.
          (14) Tribal water right.--
                  (A) In general.--The term ``Tribal Water Right'' 
                means the water right set forth in section 85-20-601 of 
                the Montana Code Annotated (1997) and includes the 
                water allocation set forth in title II of this Act.
                  (B) Rule of construction.--The definition of the term 
                ``Tribal Water Right'' under this paragraph and the 
                treatment of that right under this Act shall not be 
                construed or interpreted as a precedent for the 
                litigation of reserved water rights or the 
                interpretation or administration of future compacts 
                between the United States and the State of Montana or 
                any other State.
          (15) Tribe.--The term ``Tribe'' means the Chippewa Cree Tribe 
        of the Rocky Boy's Reservation and all officers, agents, and 
        departments thereof.
          (16) Water development.--The term ``water development'' 
        includes all activities that involve the use of water or 
        modification of water courses or water bodies in any way.

SEC. 5. MISCELLANEOUS PROVISIONS.

  (a) Nonexercise of Tribe's Rights.--Pursuant to Tribal Resolution No. 
40-98, and in exchange for benefits under this Act, the Tribe shall not 
exercise the rights set forth in Article VII.A.3 of the Compact, except 
that in the event that the approval, ratification, and confirmation of 
the Compact by the United States becomes null and void under section 
101(b), the Tribe shall have the right to exercise the rights set forth 
in Article VII.A.3 of the Compact.
  (b) Waiver of Sovereign Immunity.--Except to the extent provided in 
subsections (a), (b), and   (c) of section 208 of the Department of 
Justice Appropriation Act, 1953 (43 U.S.C. 666), nothing in this Act 
may be construed to waive the sovereign immunity of the United States.
  (c) Tribal Release of Claims Against the United States.--
          (1) In general.--Pursuant to Tribal Resolution No. 40-98, and 
        in exchange for benefits under this Act, the Tribe shall, on 
        the date of enactment of this Act, execute a waiver and release 
        of the claims described in paragraph (2) against the United 
        States, the validity of which are not recognized by the United 
        States, except that--
                  (A) the waiver and release of claims shall not become 
                effective until the appropriation of the funds 
                authorized in section 105, the water allocation in 
                section 201, and the appropriation of funds for the 
                MR&I feasibility study authorized in section 204 have 
                been completed and the decree has become final in 
                accordance with the requirements of section 101(b); and
                  (B) in the event that the approval, ratification, and 
                confirmation of the Compact by the United States 
                becomes null and void under section 101(b), the waiver 
                and release of claims shall become null and void.
          (2) Claims described.--The claims referred to in paragraph 
        (1) are as follows:
                  (A) Any and all claims to water rights (including 
                water rights in surface water, ground water, and 
                effluent), claims for injuries to water rights, claims 
                for loss or deprivation of use of water rights, and 
                claims for failure to acquire or develop water rights 
                for lands of the Tribe from time immemorial to the date 
                of ratification of the Compact by Congress.
                  (B) Any and all claims arising out of the negotiation 
                of the Compact and the settlement authorized by this 
                Act.
          (3) Setoffs.--In the event the waiver and release do not 
        become effective as set forth in paragraph (1)--
                  (A) the United States shall be entitled to setoff 
                against any claim for damages asserted by the Tribe 
                against the United States, any funds transferred to the 
                Tribe pursuant to section 104, and any interest accrued 
                thereon up to the date of setoff; and
                  (B) the United States shall retain any other claims 
                or defenses not waived in this Act or in the Compact as 
                modified by this Act.
  (d) Other Tribes Not Adversely Affected.--Nothing in this Act is 
intended to quantify or otherwise adversely affect the land and water 
rights, or claims or entitlements to land or water of an Indian tribe 
other than the Chippewa Cree Tribe.
  (e) Environmental Compliance.--In implementing the Compact, the 
Secretary shall comply with all aspects of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.), the Endangered Species Act 
of 1973 (16 U.S.C. 1531 et seq.), and all other applicable 
environmental Acts and regulations.
  (f) Execution of Compact.--The execution of the Compact by the 
Secretary as provided for in this Act shall not constitute a major 
Federal action under the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.). The Secretary is directed to carry out all 
necessary environmental compliance required by Federal law in 
implementing the Compact.
  (g) Congressional Intent.--Nothing in this Act is intended to 
prohibit the Tribe from seeking additional authorization or 
appropriation of funds for tribal programs or purposes.
  (h) Act Not Precedential.--Nothing in this Act shall be construed or 
interpreted as a precedent for the litigation of reserved water rights 
or the interpretation or administration of future water settlement 
Acts.

  TITLE I--CHIPPEWA CREE TRIBE OF THE ROCKY BOY'S RESERVATION INDIAN 
                    RESERVED WATER RIGHTS SETTLEMENT

SEC. 101. RATIFICATION OF COMPACT AND ENTRY OF DECREE.

  (a) Water Rights Compact Approved.--Except as modified by this Act, 
and to the extent the Compact does not conflict with this Act--
          (1) the Compact, entered into by the Chippewa Cree Tribe of 
        the Rocky Boy's Reservation and the State of Montana on April 
        14, 1997, is hereby approved, ratified, and confirmed; and
          (2) the Secretary shall--
                  (A) execute and implement the Compact together with 
                any amendments agreed to by the parties or necessary to 
                bring the Compact into conformity with this Act; and
                  (B) take such other actions as are necessary to 
                implement the Compact.
  (b) Approval of Decree.--
          (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the United States, the Tribe, or the 
        State of Montana shall petition the Montana Water Court, 
        individually or jointly, to enter and approve the decree agreed 
        to by the United States, the Tribe, and the State of Montana 
        attached as Appendix 1 to the Compact, or any amended version 
        thereof agreed to by the United States, the Tribe, and the 
        State of Montana.
          (2) Resort to the federal district court.--Under the 
        circumstances set forth in Article VII.B.4 of the Compact, 1 or 
        more parties may file an appropriate motion (as provided in 
        that article) in the United States district court of 
        appropriate jurisdiction.
          (3) Effect of failure of approval to become final.--In the 
        event the approval by the appropriate court, including any 
        direct appeal, does not become final within 3 years after the 
        filing of the decree, or the decree is approved but is 
        subsequently set aside by the appropriate court--
                  (A) the approval, ratification, and confirmation of 
                the Compact by the United States shall be null and 
                void; and
                  (B) except as provided in sections 105(e)(1), 5(a), 
                and 5(c)(3), this Act shall be of no further force and 
                effect.

SEC. 102. USE AND TRANSFER OF THE TRIBAL WATER RIGHT.

  (a) Administration and Enforcement.--As provided in the Compact, 
until the adoption and approval of a tribal water code by the Tribe, 
the Secretary shall administer and enforce the Tribal Water Right.
  (b) Tribal Member Entitlement.--
          (1) In general.--Any entitlement to Federal Indian reserved 
        water of any tribal member shall be satisfied solely from the 
        water secured to the Tribe by the Compact and shall be governed 
        by the terms and conditions of the Compact.
          (2) Administration.--An entitlement described in paragraph 
        (1) shall be administered by the Tribe pursuant to a tribal 
        water code developed and adopted pursuant to Article IV.A.2 of 
        the Compact, or by the Secretary pending the adoption and 
        approval of the tribal water code.
  (c) Temporary Transfer of Tribal Water Right.--Notwithstanding any 
other provision of statutory or common law, the Tribe may, with the 
approval of the Secretary and subject to the limitations and conditions 
set forth in the Compact, including limitation on transfer of any 
portion of the Tribal Water Right to within the Missouri River Basin, 
enter into a service contract, lease, exchange, or other agreement 
providing for the temporary delivery, use, or transfer of the water 
rights confirmed to the Tribe in the Compact, except that no service 
contract, lease, exchange, or other agreement entered into under this 
subsection may permanently alienate any portion of the Tribal Water 
Right.

SEC. 103. ON-RESERVATION WATER RESOURCES DEVELOPMENT.

  (a) Water Development Projects.--The Secretary, through the Bureau of 
Reclamation, is authorized and directed to plan, design, and construct, 
or to provide, pursuant to subsection (b), for the planning, design, 
and construction of the following water development projects on the 
Rocky Boy's Reservation:
          (1) Bonneau Dam and Reservoir Enlargement.
          (2) East Fork of Beaver Creek Dam Repair and Enlargement.
          (3) Brown's Dam Enlargement.
          (4) Towe Ponds' Enlargement.
          (5) Such other water development projects as the Tribe shall 
        from time to time consider appropriate.
  (b) Implementation Agreement.--The Secretary, at the request of the 
Tribe, shall enter into an agreement, or, if appropriate, renegotiate 
an existing agreement, with the Tribe to implement the provisions of 
this Act through the Tribe's annual funding agreement entered into 
under the self-governance program under title IV of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 458aa et seq.) by 
which the Tribe shall plan, design, and construct any or all of the 
projects authorized by this section.
  (c) Bureau of Reclamation Project Administration.--
          (1) In general.--Congress finds that the Secretary, through 
        the Bureau of Reclamation, has entered into an agreement with 
        the Tribe, pursuant to title IV of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 458aa et 
        seq.)--
                  (A) defining and limiting the role of the Bureau of 
                Reclamation in its administration of the projects 
                authorized in subsection (a);
                  (B) establishing the standards upon which the 
                projects will be constructed; and
                  (C) for other purposes necessary to implement this 
                section.
          (2) Agreement.--The agreement referred to in paragraph (1) 
        shall become effective when the Tribe exercises its right under 
        subsection (b).

SEC. 104. CHIPPEWA CREE INDIAN RESERVED WATER RIGHTS SETTLEMENT TRUST 
                    FUND.

  (a) Establishment of Trust Fund.--
          (1) In general.--
                  (A) Establishment.--There is hereby established in 
                the Treasury of the United States a trust fund for the 
                Chippewa Cree Tribe of the Rocky Boy's Reservation to 
                be known as the ``Chippewa Cree Indian Reserved Water 
                Rights Settlement Trust Fund''.
                  (B) Availability of amounts in fund.--
                          (i) In general.--Amounts in the Fund shall be 
                        available to the Secretary for management and 
                        investment on behalf of the Tribe and 
                        distribution to the Tribe in accordance with 
                        this Act.
                          (ii) Availability.--Funds made available from 
                        the Fund under this section shall be available 
                        without fiscal year limitation.
          (2) Management of fund.--The Secretary shall deposit and 
        manage the principal and interest in the Fund in a manner 
        consistent with subsection (b) and other applicable provisions 
        of this Act.
          (3) Contents of fund.--The Fund shall consist of the amounts 
        authorized to be appropriated to the Fund under section 105(a) 
        and such other amounts as may be transferred or credited to the 
        Fund.
          (4) Withdrawal.--The Tribe, with the approval of the 
        Secretary, may withdraw the Fund and deposit it in a mutually 
        agreed upon private financial institution. That withdrawal 
        shall be made pursuant to the American Indian Trust Fund 
        Management Reform Act of 1994 (25 U.S.C. 4001 et seq.).
          (5) Accounts.--The Secretary of the Interior shall establish 
        the following accounts in the Fund and shall allocate 
        appropriations to the various accounts as required in this Act:
                  (A) The Tribal Compact Administration Account.
                  (B) The Economic Development Account.
                  (C) The Future Water Supply Facilities Account.
  (b) Fund Management.--
          (1) In general.--
                  (A) Amounts in fund.--The Fund shall consist of such 
                amounts as are appropriated to the Fund and allocated 
                to the accounts of the Fund by the Secretary as 
                provided in this Act and in accordance with the 
                authorizations for appropriations in paragraphs (1), 
                (2), and (3) of section 105(a), together with all 
                interest that accrues in the Fund.
                  (B) Management by secretary.--The Secretary shall 
                manage the Fund, make investments from the Fund, and 
                make available funds from the Fund for distribution to 
                the Tribe in a manner consistent with the American 
                Indian Trust Fund Management Reform Act of 1994 (25 
                U.S.C. 4001 et seq.).
          (2) Tribal management.--
                  (A) In general.--If the Tribe exercises its right 
                pursuant to subsection (a)(4) to withdraw the Fund and 
                deposit it in a private financial institution, except 
                as provided in the withdrawal plan, neither the 
                Secretary nor the Secretary of the Treasury shall 
                retain any oversight over or liability for the 
                accounting, disbursement, or investment of the funds.
                  (B) Withdrawal plan.--The withdrawal plan shall 
                provide for--
                          (i) the creation of accounts and allocation 
                        to accounts in a fund established under the 
                        plan in a manner consistent with subsection 
                        (a); and
                          (ii) the appropriate terms and conditions, if 
                        any, on expenditures from the Fund (in addition 
                        to the requirements of the plans set forth in 
                        paragraphs (2) and (3) of subsection (c)).
  (c) Use of Fund.--The Tribe shall use the Fund to fulfill the 
purposes of this Act, subject to the following restrictions on 
expenditures:
          (1) Except for $400,000 necessary for capital expenditures in 
        connection with Tribal Compact Administration, only interest 
        accrued on the Tribal Compact Administration Account referred 
        to in subsection (a)(5)(A) shall be available to satisfy the 
        Tribe's obligations for Tribal Compact Administration under the 
        provisions of the Compact.
          (2) Both principal and accrued interest on the Economic 
        Development Account referred to in subsection (a)(5)(B) shall 
        be available to the Tribe for expenditure pursuant to an 
        economic development plan approved by the Secretary.
          (3) Both principal and accrued interest on the Future Water 
        Supply Facilities Account referred to in subsection (a)(5)(C) 
        shall be available to the Tribe for expenditure pursuant to a 
        water supply plan approved by the Secretary.
  (d) Investment of Fund.--
          (1) In general.--
                  (A) Applicable laws.--The Secretary shall invest 
                amounts in the Fund in accordance with--
                          (i) the Act of April 1, 1880 (21 Stat. 70, 
                        chapter 41; 25 U.S.C. 161);
                          (ii) the first section of the Act entitled 
                        ``An Act to authorize the payment of interest 
                        of certain funds held in trust by the United 
                        States for Indian tribes'', approved February 
                        12, 1929 (25 U.S.C. 161a); and
                          (iii) the first section of the Act entitled 
                        ``An Act to authorize the deposit and 
                        investment of Indian funds'', approved June 24, 
                        1938 (25 U.S.C. 162a).
                  (B) Crediting of amounts to the fund.--The interest 
                on, and the proceeds from the sale or redemption of, 
                any obligations of the United States held in the Fund 
                shall be credited to and form part of the Fund. The 
                Secretary of the Treasury shall credit to each of the 
                accounts contained in the Fund a proportionate amount 
                of that interest and proceeds.
          (2) Certain withdrawn funds.--
                  (A) In general.--Amounts withdrawn from the Fund and 
                deposited in a private financial institution pursuant 
                to a withdrawal plan approved by the Secretary under 
                the American Indian Trust Fund Management Reform Act of 
                1994 (25 U.S.C. 4001 et seq.) shall be invested by an 
                appropriate official under that plan.
                  (B) Deposit of interest and proceeds.--The interest 
                on, and the proceeds from the sale or redemption of, 
                any obligations held under this paragraph shall be 
                deposited in the private financial institution referred 
                to in subparagraph (A) in the fund established pursuant 
                to the withdrawal plan referred to in that 
                subparagraph. The appropriate official shall credit to 
                each of the accounts contained in that fund a 
                proportionate amount of that interest and proceeds.
  (e) Agreement Regarding Fund Expenditures.--If the Tribe does not 
exercise its right under subsection (a)(4) to withdraw the funds in the 
Fund and transfer those funds to a private financial institution, the 
Secretary shall enter into an agreement with the Tribe providing for 
appropriate terms and conditions, if any, on expenditures from the Fund 
in addition to the plans set forth in paragraphs (2) and (3) of 
subsection (c).
  (f) Per Capita Distributions Prohibited.--No part of the Fund shall 
be distributed on a per capita basis to members of the Tribe.

SEC. 105. AUTHORIZATION OF APPROPRIATIONS.

  (a) Chippewa Cree Fund.--There is authorized to be appropriated for 
the Fund, $21,000,000 to be allocated by the Secretary as follows:
          (1) Tribal compact administration account.--For Tribal 
        Compact Administration assumed by the Tribe under the Compact 
        and this Act, $3,000,000 is authorized to be appropriated for 
        fiscal year 2000.
          (2) Economic development account.--For tribal economic 
        development, $3,000,000 is authorized to be appropriated for 
        fiscal year 2000.
          (3) Future water supply facilities account.--For the total 
        Federal contribution to the planning, design, construction, 
        operation, maintenance, and rehabilitation of a future water 
        supply system for the Reservation, there are authorized to be 
        appropriated--
                  (A) $2,000,000 for fiscal year 2000;
                  (B) $8,000,000 for fiscal year 2001; and
                  (C) $5,000,000 for fiscal year 2002.
  (b) On-Reservation Water Development.--
          (1) In general.--There are authorized to be appropriated to 
        the Department of the Interior, for the Bureau of Reclamation, 
        for the construction of the on-Reservation water development 
        projects authorized by section 103--
                  (A) $13,000,000 for fiscal year 2000, for the 
                planning, design, and construction of the Bonneau Dam 
                Enlargement, for the development of additional capacity 
                in Bonneau Reservoir for storage of water secured to 
                the Tribe under the Compact;
                  (B) $8,000,000 for fiscal year 2001, for the 
                planning, design, and construction of the East Fork Dam 
                and Reservoir enlargement, of the Brown's Dam and 
                Reservoir enlargement, and of the Towe Ponds 
                enlargement of which--
                          (i) $4,000,000 shall be used for the East 
                        Fork Dam and Reservoir enlargement;
                          (ii) $2,000,000 shall be used for the Brown's 
                        Dam and Reservoir enlargement; and
                          (iii) $2,000,000 shall be used for the Towe 
                        Ponds enlargement; and
                  (C) $3,000,000 for fiscal year 2002, for the 
                planning, design, and construction of such other water 
                resource developments as the Tribe, with the approval 
                of the Secretary, from time to time may consider 
                appropriate or for the completion of the 4 projects 
                enumerated in subparagraphs (A) and (B) of paragraph 
                (1).
          (2) Unexpended balances.--Any unexpended balance in the funds 
        authorized to be appropriated under subparagraph (A) or (B) of 
        paragraph (1), after substantial completion of all of the 
        projects enumerated in paragraphs (1) through (4) of section 
        103(a)--
                  (A) shall be available to the Tribe first for 
                completion of the enumerated projects; and
                  (B) then for other water resource development 
                projects on the Reservation.
  (c) Administration Costs.--There is authorized to be appropriated to 
the Department of the Interior, for the Bureau of Reclamation, 
$1,000,000 for fiscal year 2000, for the costs of administration of the 
Bureau of Reclamation under this Act, except that--
          (1) if those costs exceed $1,000,000, the Bureau of 
        Reclamation may use funds authorized for appropriation under 
        subsection (b) for costs; and
          (2) the Bureau of Reclamation shall exercise its best efforts 
        to minimize those costs to avoid expenditures for the costs of 
        administration under this Act that exceed a total of 
        $1,000,000.
  (d) Availability of Funds.--
          (1) In general.--The amounts authorized to be appropriated to 
        the Fund and allocated to its accounts pursuant to subsection 
        (a) shall be deposited into the Fund and allocated immediately 
        on appropriation.
          (2) Investments.--Investments may be made from the Fund 
        pursuant to section 104(d).
          (3) Availability of certain moneys.--The amounts authorized 
        to be appropriated in subsection (a)(1) shall be available for 
        use immediately upon appropriation in accordance with 
        subsection 104(c)(1).
          (4) Limitation.--Those moneys allocated by the Secretary to 
        accounts in the Fund or in a fund established under section 
        104(a)(4) shall draw interest consistent with section 104(d), 
        but the moneys authorized to be appropriated under subsection 
        (b) and paragraphs (2) and (3) of subsection (a) shall not be 
        available for expenditure until the requirements of section 
        101(b) have been met so that the decree has become final and 
        the Tribe has executed the waiver and release required under 
        section 5(c).
  (e) Return of Funds to the Treasury.--
          (1) In general.--In the event that the approval, 
        ratification, and confirmation of the Compact by the United 
        States becomes null and void under section 101(b), all 
        unexpended funds appropriated under the authority of this Act 
        together with all interest earned on such funds, 
        notwithstanding whether the funds are held by the Tribe, a 
        private institution, or the Secretary, shall revert to the 
        general fund of the Treasury 12 months after the expiration of 
        the deadline established in section 101(b).
          (2) Inclusion in agreements and plan.--The requirements in 
        paragraph (1) shall be included in all annual funding 
        agreements entered into under the self-governance program under 
        title IV of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 458aa et seq.), withdrawal plans, 
        withdrawal agreements, or any other agreements for withdrawal 
        or transfer of the funds to the Tribe or a private financial 
        institution under this Act.
  (f) Without Fiscal Year Limitation.--All money appropriated pursuant 
to authorizations under this title shall be available without fiscal 
year limitation.

SEC. 106. STATE CONTRIBUTIONS TO SETTLEMENT.

  Consistent with Articles VI.C.2 and C.3 of the Compact, the State 
contribution to settlement shall be as follows:
          (1) The contribution of $150,000 appropriated by Montana 
        House Bill 6 of the 55th Legislative Session (1997) shall be 
        used for the following purposes:
                  (A) Water quality discharge monitoring wells and 
                monitoring program.
                  (B) A diversion structure on Big Sandy Creek.
                  (C) A conveyance structure on Box Elder Creek.
                  (D) The purchase of contract water from Lower Beaver 
                Creek Reservoir.
          (2) Subject to the availability of funds, the State shall 
        provide services valued at $400,000 for administration required 
        by the Compact and for water quality sampling required by the 
        Compact.

     TITLE II--TIBER RESERVOIR ALLOCATION AND FEASIBILITY STUDIES 
                             AUTHORIZATION

SEC. 201. TIBER RESERVOIR.

  (a) Allocation of Water to the Tribe.--
          (1) In general.--The Secretary shall permanently allocate to 
        the Tribe, without cost to the Tribe, 10,000 acre-feet per year 
        of stored water from the water right of the Bureau of 
        Reclamation in Lake Elwell, Lower Marias Unit, Upper Missouri 
        Division, Pick-Sloan Missouri Basin Program, Montana, measured 
        at the outlet works of the dam or at the diversion point from 
        the reservoir. The allocation shall become effective when the 
        decree referred to in section 101(b) has become final in 
        accordance with that section. The allocation shall be part of 
        the Tribal Water Right and subject to the terms of this Act.
          (2) Agreement.--The Secretary shall enter into an agreement 
        with the Tribe setting forth the terms of the allocation and 
        providing for the Tribe's use or temporary transfer of water 
        stored in Lake Elwell, subject to the terms and conditions of 
        the Compact and this Act.
          (3) Prior reserved water rights.--The allocation provided in 
        this section shall be subject to the prior reserved water 
        rights, if any, of any Indian tribe, or person claiming water 
        through any Indian tribe.
  (b) Use and Temporary Transfer of Allocation.--
          (1) In general.--Subject to the limitations and conditions 
        set forth in the Compact and this Act, the Tribe shall have the 
        right to devote the water allocated by this section to any use, 
        including agricultural, municipal, commercial, industrial, 
        mining, or recreational uses, within or outside the Rocky Boy's 
        Reservation.
          (2) Contracts and agreements.--Notwithstanding any other 
        provision of statutory or common law, the Tribe may, with the 
        approval of the Secretary and subject to the limitations and 
        conditions set forth in the Compact, enter into a service 
        contract, lease, exchange, or other agreement providing for the 
        temporary delivery, use, or transfer of the water allocated by 
        this section, except that no such service contract, lease, 
        exchange, or other agreement may permanently alienate any 
        portion of the tribal allocation.
  (c) Remaining Storage.--The United States shall retain the right to 
use for any authorized purpose, any and all storage remaining in Lake 
Elwell after the allocation made to the Tribe in subsection 201(a).
  (d) Water Transport Obligation; Development and Delivery Costs.--The 
United States shall have no responsibility or obligation to provide any 
facility for the transport of the water allocated by this section to 
the Rocky Boy's Reservation or to any other location. Except for the 
contribution set forth in subsection 105(a)(3), the cost of developing 
and delivering the water allocated by this title or any other 
supplemental water to the Rocky Boy's Reservation shall not be borne by 
the United States.
  (e) Section Not Precedential.--The provisions of this section 
regarding the allocation of water resources from the Tiber Reservoir to 
the Tribe shall not be construed as precedent in the litigation or 
settlement of any other Indian water right claims.

SEC. 202. MUNICIPAL, RURAL, AND INDUSTRIAL FEASIBILITY STUDY.

  (a) Authorization.--
          (1) In general.--
                  (A) Study.--The Secretary, through the Bureau of 
                Reclamation, shall perform an MR&I feasibility study of 
                water and related resources in north central Montana to 
                evaluate alternatives for a municipal, rural, and 
                industrial supply for the Rocky Boy's Reservation.
                  (B) Use of funds made available for fiscal year 
                1999.--The authority under subparagraph (A) shall be 
                deemed to apply to MR&I feasibility study activities 
                for which funds were made available by appropriations 
                for fiscal year 1999.
          (2) Contents of study.--The MR&I feasibility study shall 
        include the feasibility of releasing the Tribe's Tiber 
        allocation as provided in section 201 into the Missouri River 
        System for later diversion to a treatment and delivery system 
        for the Rocky Boy's Reservation.
          (3) Utilization of existing studies.--The MR&I feasibility 
        study shall include utilization of existing Federal and non-
        Federal studies and shall be planned and conducted in 
        consultation with other Federal agencies, the State of Montana, 
        and the Chippewa Cree Tribe.
  (b) Acceptance or Participation in Identified Off-Reservation 
System.--The United States, the Chippewa Cree Tribe of the Rocky Boy's 
Reservation, and the State of Montana shall not be obligated to accept 
or participate in any potential off-Reservation water supply system 
identified in the MR&I feasibility study authorized in subsection (a).

SEC. 203. REGIONAL FEASIBILITY STUDY.

  (a) In General.--
          (1) Study.--The Secretary, through the Bureau of Reclamation, 
        shall conduct, pursuant to Reclamation Law, a regional 
        feasibility study (referred to in this subsection as the 
        ``regional feasibility study'') to evaluate water and related 
        resources in north central Montana in order to determine the 
        limitations of those resources and how those resources can best 
        be managed and developed to serve the needs of the citizens of 
        Montana.
          (2) Use of funds made available for fiscal year 1999.--The 
        authority under paragraph (1) shall be deemed to apply to 
        regional feasibility study activities for which funds were made 
        available by appropriations for fiscal year 1999.
  (b) Contents of Study.--The regional feasibility study shall--
          (1) evaluate existing and potential water supplies, uses, and 
        management;
          (2) identify major water-related issues, including 
        environmental, water supply, and economic issues;
          (3) evaluate opportunities to resolve the issues referred to 
        in paragraph (2); and
          (4) evaluate options for implementation of resolutions to the 
        issues.
  (c) Requirements.--Because of the regional and international impact 
of the regional feasibility study, the study may not be segmented. The 
regional study shall--
          (1) utilize, to the maximum extent possible, existing 
        information; and
          (2) be planned and conducted in consultation with all 
        affected interests, including interests in Canada.

SEC. 204. AUTHORIZATION OF APPROPRIATIONS FOR FEASIBILITY STUDIES.

  (a) Fiscal Year 1999 Appropriations.--Of the amounts made available 
by appropriations for fiscal year 1999 for the Bureau of Reclamation, 
$1,000,000 shall be used for the purpose of commencing the MR&I 
feasibility study under section 202 and the regional study under 
section 203, of which--
          (1) $500,000 shall be used for the MR&I study under section 
        202; and
          (2) $500,000 shall be used for the regional study under 
        section 203.
  (b) Feasibility Studies.--There is authorized to be appropriated to 
the Department of the Interior, for the Bureau of Reclamation, for the 
purpose of conducting the MR&I feasibility study under section 202 and 
the regional study under section 203, $3,000,000 for fiscal year 2000, 
of which--
          (1) $500,000 shall be used for the MR&I feasibility study 
        under section 202; and
          (2) $2,500,000 shall be used for the regional study under 
        section 203.
  (c) Without Fiscal Year Limitation.--All money appropriated pursuant 
to authorizations under this title shall be available without fiscal 
year limitation.
  (d) Availability of Certain Moneys.--The amounts made available for 
use under subsection (a) shall be deemed to have been available for use 
as of the date on which those funds were appropriated. The amounts 
authorized to be appropriated in subsection (b) shall be available for 
use immediately upon appropriation.

                          PURPOSE OF THE BILL

    The purpose of H.R. 795 is to provide for the settlement of 
the water rights claims of the Chippewa Cree Tribe of the Rocky 
Boy's Reservation, and for other purposes.

                  BACKGROUND AND NEED FOR LEGISLATION

Overview of Indian reserved water rights

    The 1908 U.S. Supreme court case, Winters v. United States, 
207 U.S. 564, was the first case to determine an Indian water 
right. The case also has served to establish the foundation for 
many other aspects of implied federal reserved water rights. 
Since 1908 both Indian and non-Indian implied reserved federal 
water rights have undergone a judicial evolution.
    It has been many years since an Indian water rights 
settlement has been presented to the Congress for ratification. 
One of the most recent settlements, the Animas La Plata 
settlement in Colorado, has not been completed, although it was 
authorized a decade ago.

Rocky Boy's Reservation

    The 108,000 acre Rocky Boy's Reservation is located west of 
Havre, Montana, in the Bear Paw Mountains, with portions 
extending onto the plains between the mountains and the Milk 
River in north-central Montana. Historically, the area was part 
of the large territory north of the Missouri and Musselshell 
Rivers designated for the Blackfeet Nation in a 1855 treaty.
    In 1880 the Fort Assiniboine military reservation was 
established in this area. In 1916 Congress set aside 56,035 
acres of this land for the Chippewa and Cree Bands of Chief 
Rocky Boy. In 1947 this reservation was expanded by 45,523 
acres, bringing it to near its current size. None of the 
reservation land has been allotted although some individual 
assignments have been made.
    The reservation is home to over 3,000 tribal members and 
has an annual population growth exceeding 3 percent. While 
unemployment is estimated at nearly 70 percent, the Tribe has 
made important progress in economic development. Production of 
cattle and grain, and development of timber and tourism provide 
solid sources of tribal income. However, the reservation is 
located in an area of scarce water supply. Studies have 
demonstrated that the reservation can not sustain tribal 
membership without additional supplies of water for drinking, 
agricultural and municipal purposes.

The water rights settlement process

    Since 1992, the Tribe, State and federal governments have 
worked to reach a water rights settlement. The Tribe and State 
reached tentative agreement on a compact in January 1997. The 
Tribal Council passed a resolution supporting ratification of 
the agreement shortly thereafter. In the spring of 1997, the 
Montana State Senate unanimously ratified the compact and the 
State House gave its approval on a 91-9 vote. It was signed 
into law by the Governor of Montana on April 14, 1997. In the 
summer of 1997, the Department of Interior became actively 
involved in reviewing and negotiating modifications to the 
settlement. By the summer of 1998, the Administration and the 
State of Montana contacted the Committee on Resources to 
discuss the need to advance legislation approving the water 
rights settlement.
    The Rocky Boy's settlement process has been important for a 
number of reasons. The State of Montana and the Tribe have 
spent a good deal of time working through the issues in a 
constructive fashion, taking steps to minimize the impact on 
other affected water users. Furthermore, there has been minimal 
emphasis on some of the outmoded bases for calculating these 
claims. This process has allowed the parties to look to newer, 
more flexible solutions which provide tribes with real 
opportunities without making demands that may destroy the 
economic livelihood of existing water users. Additionally, this 
process has brought private sector expertise to the Tribe's 
efforts to utilize these water supplies once the settlement is 
authorized.
    By approaching these settlements in more creative ways, 
Congress and the federal government can narrow the divergent 
expectations of the parties as they enter negotiations and 
attempt to correct problems that have existed for decades. It 
is important for Congress to modernize the process and bases 
for settling these claims. It is taking far too long to arrive 
at settlements. Often tribes receive water and money under 
circumstances that do not ultimately help them realize the 
benefits of the broader economy. It is the intention of the 
Committee that this settlement will help the Chippewa Cree 
Tribe reach its goal of self-determination.

                            COMMITTEE ACTION

    H.R. 795 was introduced on February 23, 1999, by 
Congressman Rick Hill (R-MT). The bill was referred to the 
Committee on Resources, and within the Committee to the 
Subcommittee on Water and Power. On July 1, 1999, the 
Subcommittee held a legislative hearing on the bill, where 
David Hayes, Acting Deputy Secretary of Interior; a member of 
the Chippewa Cree Tribe, and a representative from the State of 
Montana testified in favor of the bill. On August 4, 1999, the 
Committee on Resources discharged the Subcommittee on Water and 
Power from further consideration of the bill by unanimous 
consent, and the Committee met to consider the bill. 
Congressman Hill, on behalf of Congressman John T. Doolittle 
(R-CA), offered an amendment to create two titles in the 
legislation. Section 8 of H.R. 795, the Tiber Reservoir water 
allocation, become Title II, and Sections 5-7 and 9-12 then 
became Title I. The remaining miscellaneous provisions are 
applicable to both titles. These changes addressed issues 
concerning the use of non-appurtenant water sources concerning 
the water right settlement. The amendment was adopted by voice. 
The bill, as amended, was then ordered favorably reported to 
the House of Representatives by voice vote.

                      SECTION-BY-SECTION ANALYSIS

            Section 1. Short title.
    This section indicates that the short title of the bill is 
the Chippewa Cree Tribe of The Rocky Boy's Reservation Indian 
Reserved Water Rights Settlement and Water Supply Enhancement 
Act of 1999.
            Section 2. Findings
    This section sets out nine findings. The allocation of 
water resources from Tiber Reservoir referred to in paragraph 
(9) of this section is implemented under section 201 of the 
bill. Tiber Reservoir is a Bureau of Reclamation facility 
located 50 miles west of the Rocky Boy's Reservation and has 
available unallocated water providing a unique opportunity to 
meet the water needs of the Chippewa Cree Tribe. The Reservoir 
is also referred to as ``Lake Elwell'' in the Act and in the 
Compact.
            Section 3. Purposes
    This section sets forth the seven purposes of the bill.
            Section 4. Definitions
    This section defines 16 terms used in the bill. The use of 
the term ``Tribal Water Right'' is not intended to create a new 
class of water rights. The term ``Tribal Water Right'' is used 
in the Compact between the State of Montana and the Chippewa 
Cree Tribe of the Rocky Boy's Reservation and in other compacts 
entered into by the State of Montana as a shorthand method of 
reference to multiple sources of water made available or 
confirmed to a tribe as part of the settlement of claims to 
water within the State of Montana. ``Tribal Water Right'' is 
then used in sections of compacts entered into by the State of 
Montana setting forth the parameters for administration and 
dispute resolution. The parties adopted this approach to assure 
that, through use of a single term, all protections sought by 
the State and the Tribe from adverse use of water and all 
negotiated mechanisms for resolution of disputes apply to all 
water sources included in the settlement of claims.
            Section 5. Miscellaneous provisions
    This section sets forth miscellaneous provisions of the 
bill that are applicable to both Titles 1 and 2, including the 
requirement of a waiver and release of claims by the Chippewa 
Cree Tribe against the United States. The claims released by 
the Tribe are claims arising from time immemorial to the date 
of enactment of the Act: any and all claims to water rights, 
claims for injuries to water rights, claims for loss or 
deprivation of use of water rights, and claims for failure to 
acquire or develop water rights for lands of the Tribe and any 
claims arising out of the negotiation of the Compact and the 
settlement authorized by the bill.

Title I--Chippewa Cree Tribe of the Rocky Boy's Reservation Indian 
        reserved water rights settlement

    Title I of the bill ratifies the Compact between the 
Chippewa Cree Tribe and the State of Montana regarding the 
Tribe's Indian reserved water rights. The title also provides 
for entry of a judicial decree associated with these water 
rights by the Montana Water Court. Section 102 details the use 
and transfer of the tribal water right. Section 103 speaks to 
on-reservation water resources development. Section 104 
establishes a Chippewa Cree Indian Reserved Water Rights 
Settlement trust fund. Section 105 provides an authorization of 
appropriations. Section 106 specifies the State of Montana's 
contributions to the settlement.

Title II--Tiber Reservoir allocation and feasibility studies 
        authorization

    Title II presents an opportunity, outside of a reserved 
water right settlement, for the Tribe to pursue use of 
unallocated federal project water in Tiber Reservoir to meet 
some of its additional water needs. This is an opportunity that 
is unique to this settlement and is not likely to be available 
in settling other claims. This title also provides for a more 
comprehensive evaluation of the regional and tribal water 
needs.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Resources' oversight findings and recommendations 
are reflected in the body of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact this bill.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation.--Clause 3(d)(2) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(3)(B) 
of that rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act.--As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in tax 
expenditures. According to the Congressional Budget Office, 
enactment of H.R. 795 would eventually affect direct spending 
(including offsetting receipts) by directing the Bureau of 
Reclamation to provide water to the Tribe (which might 
otherwise be marketed) but any such impact ``would not be 
significant over the next 10 years.''
    3. Government Reform Oversight Findings.--Under clause 
3(c)(4) of rule XIII of the Rules of the House of 
Representatives, the Committee has received no report of 
oversight findings and recommendations from the Committee on 
Government Reform on this bill.
    4. Congressional Budget Office Cost Estimate.--Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for this bill from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 23, 1999.
Hon. Don Young,
Chairman, Committee on Resources, House of Representatives, Washington, 
        DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 795, the Chippewa 
Cree Tribe of the Rocky Boy's Reservation Indian Reserved Water 
Rights Settlement and Water Supply enhancement Act of 1999. 
This estimate supersedes a CBO cost estimate prepared for H.R. 
795 on September 10, 1999, which was transmitted with an 
incorrect reference to the bill's title.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan Carroll 
(for federal costs) and Marjorie Miller (for the impact on 
state, local, and tribal governments).
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 795--Chippewa Cree Tribe of the Rocky Boy's Reservation Indian 
        Reserved Water Rights Settlement and Water Supply Enhancement 
        Act of 1999

            Summary
    H.R. 795 would approve and ratify the water rights 
settlement agreement entered into by the Chippewa Cree Tribe of 
the Rocky Boy's Reservation and the state of Montana on April 
14, 1997. The bill would authorize appropriations for the 
Department of Interior (DOI) to implement the agreement, but 
most of these funds could not be spent until the agreement is 
approved by the Montana Water Court. H.R. 795 would create the 
Chippewa Cree Indian Reserved Water Rights Settlement Trust 
fund and would allow the tribe to spend most amounts deposited 
to the fund (including interest earnings) without further 
appropriation. The bill also would authorize funding for the 
Bureau of Reclamation to conduct two feasibility studies and 
several on-reservation water development projects. (That amount 
includes $1 million for 1999 which has already been provided 
for the current year.) In addition, H.R. 795 would require the 
bureau to permanently allocate 10,000 acre-feet per year of 
stored water to the tribe.
    Based on information from DOI, CBO estimates that 
implementing H.R. 795 would cost $48 million over the 2000-2004 
period, assuming the appropriation of the authorized amounts. 
Enacting H.R. 795 could eventually affect direct spending 
(including offsetting receipts); therefore, pay-as-you-go 
procedures would apply. CBO estimates, however, that any such 
impact would not be significant over the next 10 years. H.R. 
795 contains no intergovernmental or private-sector mandates as 
defined in the Unfunded Mandates Reform Act (UMRA). Any costs 
resulting from the settlement agreement would be incurred 
voluntarily by the state and tribal governments as parties to 
that agreement.
            Estimated cost to the Federal Government
    The estimated impact of H.R. 795 on discretionary spending 
is shown in the following table. CBO estimates that the bill 
could affect future offsetting receipts, but that any such 
effects would not be significant over the 2000-2004 period. The 
costs of this legislation fall within budget functions 300 
(natural resources and environment) and 450 (community and 
regional development).

----------------------------------------------------------------------------------------------------------------
                                                                     By fiscal year, in millions of dollars--
                                                                 -----------------------------------------------
                                                                   1999    2000    2001    2002    2003    2004
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending under current law:
    Budget authority 1..........................................       1       0       0       0       0       0
    Estimated outlays...........................................       1       0       0       0       0       0
Proposed changes:
    Authorization level.........................................       0      25      16       8       0       0
    Estimated outlays...........................................       0      11       9      13      11       4
Spending under H.R. 795
    Authorization level 1.......................................       1      25      16       8       0       0
    Estimated outlays...........................................       1      11       9      13      11       4
----------------------------------------------------------------------------------------------------------------
\1\The 1999 level is the amount appropriated to the bureau of preauthorization feasibility studies related to
  the settlement in that year.

            Spending subject to appropriation
    Although H.R. 795 would authorize specific amounts for each 
fiscal year, most of the funds could not be spent until the 
Montana Water Court has approved the settlement agreement 
between the tribe and the state of Montana. H.R. 795 requires 
at least one of the parties to petition the court within 180 
days of enactment to approve the settlement. Unless the court 
offers final approval of the settlement within three years of 
the date when this petition is filed, all unexpended funds 
provided to implement H.R. 795 would be returned to the 
Treasury.
    Based on information from the tribe, the state, and DOI, 
CBO estimates that the settlement would be approved during 
fiscal year 2002, assuming the bill is enacted be the beginning 
of fiscal year 2000. For purposes of this estimate, CBO assumes 
that the amounts authorized for each year would be appropriated 
as specified in the bill, but that any federal funding 
contingent upon the approval of the settlement agreement would 
not be spent before 2002. For purposes of this estimate, we 
assume that outlays would occur at historical rates once the 
funds are released.
    Chippewa Cree Indian Reserved Water Rights Settlement Trust 
Fund.--H.R. 795 would authorize appropriations totaling $21 
million over the 2000-2002 period to be deposited in the 
Chippewa Cree Indian Reserved Water Rights Settlement Trust 
Fund. Starting in fiscal year 2000, the federal budget will 
exclude trust funds that are held and managed in a fiduciary 
capacity by the federal government on the behalf of Indian 
tribes. Hence, deposits to the trust fund established under 
this bill would be treated as payments to a nonfederal entity. 
As a result, the entire amount appropriated to the fund in any 
fiscal year would be recorded as an outlay in that year.
    Once funds are deposited, the tribe could either withdraw 
the money (subject to DOI approval) and invest it in a private 
financial institution or leave it in the Treasury where it 
would earn simple interest at a specified rate. Most of the 
amounts in the fund would become available to the tribe upon 
final approval of the settlement agreement. Because the trust 
fund would be nonbudgetary, such restrictions on the tribe's 
use of the trust fund would not impact the time of federal 
outlay.
    Feasibility Studies.--H.R. 795 would authorize 
appropriations of $1 million in 1999 and $3 million in 2000 for 
the bureau to conduct two feasibility studies. The use of these 
funds would not be contingent on the approval of the 
settlement. According to the bureau, the $1 million authorized 
for 1999 has already been appropriated for feasibility studies 
related to the settlement. CBO estimates that the amount 
authorized for 2000 would be sufficient to cover the remaining 
costs of these studies.
    Water Development Projects.--H.R. 795 would authorize 
appropriations totaling $24 million over the 2000-2002 period 
for the bureau to implement several on-reservation water 
development projects. None of these funds could be spent until 
the settlement agreement is approved. Based on information from 
the bureau, CBO estimates that once the funds become available, 
the agency would spend the accumulated appropriations at 
historical rates.
            Direct Spending (including offsetting receipts)
    Effective upon the date when the Montana Water Court 
approves the settlement agreement, H.R. 795 would require the 
bureau of permanently allocate 10,000 acre-feed per year of 
water to the tribe. The tribe could devote the water to any use 
within or outside of the reservationand would bear the cost of 
developing and transporting the water. According to the bureau, the 
allocation to the tribe would not affect other users over the 2000-2004 
period. Because the allocation would reduce the amount of a marketable 
resource currently owned by the federal government, this provision 
could eventually reduce offsetting receipts; thus, pay-as-you-go 
procedures would apply. CBO estimates, however, that any such impact 
would not be significant in the foreseeable future.
            Pay-as-you-go considerations
    The Balanced Budget and Emergency Deficit Control Act sets 
up pay-as-you-go procedures for legislation affecting direct 
spending or receipts. Enacting H.R. 795 eventually could reduce 
offsetting receipts (a credit against direct spending) that 
might have been collected if the water allocated to the tribe 
had been contracted to some other use. Thus, pay-as-you-go 
procedures would apply, but CBO estimates that any such impact 
would not be significant over the next 10 years.
            Estimated impact on State, local, and tribal governments
    H.R. 795 contains no intergovernmental mandates as defined 
in UMRA. Any costs resulting from the settlement agreement 
would be incurred voluntarily by the state and tribal 
governments as parties to that agreement. The tribe has agreed 
to release the United States from all claims relating to its 
water rights in exchange for the benefits to be provided by 
this bill. The state of Montana has agreed to make financial 
contributions totaling $550,000 for various activities in 
support of the settlement.
            Estimated impact on the private sector
    This bill contains no new private-sector mandates as 
defined in UMRA.
            Previous CBO estimate
    On September 8, 1999, CBO transmitted a cost estimate for 
S. 438, the Chippewa Cree Tribe of the Rocky Boy's Reservation 
Indian Reserved Water Rights Settlement of 1999, as reported by 
the Senate Committee on Indian Affairs on July 22, 1999. The 
two bills are virtually identical, and the cost estimates are 
the same.
    Estimate prepared by: Federal costs: Megan Carroll; Impact 
on State, local, and tribal governments: Marjorie Miller.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    This bill is not intended to preempt any State, local or 
tribal law.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.

                                

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