To enable a Bureau of Reclamation partnership with the North Bay Water Reuse Authority and other regional partners to achieve water supply, water quality, and environmental restoration objectives.

Summary: North Bay Water Reuse Program Act of 2005 - Authorizes the Secretary of the Interior to participate in the planning, design, and construction of water reclamation and reuse projects with eligible entities in the North San Pablo Bay watershed located in Napa, Sonoma, Marin, and Solano Counties, California.

Requires: (1) the Secretary, in carrying out such reclamation and reuse projects, to build upon the design work and environmental evaluation undertaken by non-Federal entities and by the Corps of Engineers to the greatest degree practicable; and (2) all planning, design, and construction of recycled water projects to be undertaken in accordance with cooperative agreements between the Secretary and eligible entities.

Limits the Federal share of projects funded under this Act to 65 percent of the total cost of project planning, environmental evaluation, and construction.

Requires the Secretary to make grants and other funds available to eligible entities for the initial development of environmental improvement and enhancement components of the North Bay Water Reuse Program.

States that nothing in this Act: (1) invalidates or preempts State water law or interstate compacts governing water; (2) alters the rights of States to appropriated shares of surface or groundwater; (3) preempts or modifies State or Federal laws or interstate compacts governing water quality or disposal; or (4) confers on nonfederal entities the ability to exercise Federal water rights.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``North Bay Water Reuse Program Act of 
2005''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Eligible entity.--The term ``eligible entity'' means 
        each of--
                    (A) the Sonoma Valley County Sanitation District, 
                Sonoma, California;
                    (B) the Napa Sanitation District, Napa, California;
                    (C) the City of American Canyon, California;
                    (D) the Las Gallinas Valley Sanitary District, San 
                Rafael, California;
                    (E) the Novato Sanitary District, Novato, 
                California;
                    (F) the City of Petaluma, California; and
                    (G) the Sonoma County Water Agency.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 3. NORTH BAY WATER REUSE PROGRAM.

    (a) In General.--The Secretary may, through a cooperative agreement 
with the State of California or a subdivision thereof, participate in 
the planning, design, and construction of water reclamation and reuse 
projects including water quality improvement, waste water treatment, 
water reclamation and reuse, groundwater recharge and protection, 
surface water augmentation, and other improvements with eligible 
entities in the North San Pablo Bay watershed in Napa, Sonoma, Marin, 
and Solano Counties, California.
    (b) Coordination With Other Federal Agencies.--In carrying out this 
section, the Secretary shall, to the greatest degree practicable, build 
upon the design work and environmental evaluation undertaken by non-
Federal entities and by the Corps of Engineers in the San Pablo Bay 
Watershed, California.
    (c) Cooperative Agreements.--All planning, design, and construction 
of a recycled water project authorized by this Act shall be undertaken 
in accordance with a cooperative agreement between the Secretary and 
the eligible entity for the project. Such cooperative agreement shall 
set forth in a manner acceptable to the Secretary the responsibilities 
of the eligible entity for--
            (1) needs assessment;
            (2) feasibility and reconnaissance studies;
            (3) environmental review;
            (4) engineering and design;
            (5) construction; and
            (6) the administration of contracts pertaining to any of 
        the foregoing.
    (d) Financial Assistance.--Upon execution of a cooperative 
agreement under this section, the Secretary may provide to the eligible 
entity, on the basis described in section 4, the funds authorized, 
through direct loans, loan guarantees, or grants.

SEC. 4. COST SHARING.

    (a) Federal Assistance.--The Federal share of a project funded 
under this Act shall not exceed 65 percent of the total cost for 
planning, environmental evaluation, and construction of the project.
    (b) Non-Federal Cost Share.--
            (1) In general.--Except as provided in subsection (c), the 
        non-Federal cost share of the costs of a project funded under 
        this Act shall be no less than 35 percent total cost for 
        planning, environmental evaluation, and construction of the 
        project.
            (2) Credit for non-federal work.--The non-Federal interests 
        with respect to a project funded under this Act shall receive 
        credit toward the non-Federal share of the cost of the 
        project--
                    (A) for reasonable costs incurred by the non-
                Federal interests as a result of participation in the 
                planning, design, and construction of the project; and
                    (B) for the fair-market value of lands utilized for 
                project facilities and owned by eligible entities.
    (c) Operation and Maintenance.--The non-Federal share of operation 
and maintenance costs of a project funded under this Act shall be 100 
percent.
    (d) Federal Assistance for Environmental Improvement and 
Enhancement.--
            (1) Initial development.--The Secretary shall make grants 
        and other funds available to eligible entities for the initial 
        development of environmental improvement and enhancement 
        components of the North Bay Water Reuse Program.
            (2) Nonreimbursable.--Grants provided under this Act shall 
        be nonreimbursable and not subject to repayment.

SEC. 5. WATER RIGHTS.

    Nothing in this Act--
            (1) invalidates or preempts State water law or any 
        interstate compact governing water;
            (2) alters the rights of any State to any appropriated 
        share of the waters of any body of surface or groundwater, 
        whether determined by past or future interstate compacts or 
        final judicial allocations;
            (3) preempts or modifies any State or Federal law, or 
        interstate compact, governing water quality or disposal; or
            (4) confers on any non-Federal entity the ability to 
        exercise any Federal right to the waters of any stream or to 
        any groundwater resource.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to the Secretary to carry 
out this Act $65,000,000, to remain available until expended.