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

Summary: North Bay Water Reuse Program Act of 2006 - Authorizes the Secretary of the Interior to offer to enter into cooperative agreements with eligible entities in the North San Pablo Bay watershed located in Marin, Napa, Solano, and Sonoma Counties, California, for the planning, design, and construction of water reclamation and reuse projects.

Directs the Secretary and such an entity to use the design work and environmental evaluations initiated by non-federal entities and the Corps of Engineers in that watershed to the maximum extent practicable.

Requires such an agreement to specify the responsibilities of the Secretary and the entity regarding: (1) cost-share requirements; (2) needs assessment and project planning and design; (3) environmental compliance activity; (4) facilities construction; and (5) construction contract administration.

Requires that any such project consist of two phases, during which the Secretary and an entity shall complete the planning, design, and construction of: (1) the main treatment and main conveyance system; and (2) the sub-regional distribution systems.

Authorizes the Secretary to provide financial and technical assistance to an entity in planning, designing, conducting related pre-construction activities for, and constructing a project. Makes the entity responsible for the annual operation, maintenance, and replacement costs of the project. Requires the entity to develop an operation, maintenance, and replacement plan for the project.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``North Bay Water Reuse Program Act of 
2006''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Eligible entity.--The term ``eligible entity'' means a 
        member agency of the North Bay Water Reuse Authority of the 
        State located in the North San Pablo Bay watershed in--
                    (A) Marin County;
                    (B) Napa County;
                    (C) Solano County; or
                    (D) Sonoma County.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (3) State.--The term ``State'' means the State of 
        California.
            (4) Water reclamation and reuse project.--The term ``water 
        reclamation and reuse project'' means a project carried out by 
        the Secretary and an eligible entity in the North San Pablo Bay 
        watershed relating to--
                    (A) water quality improvement;
                    (B) wastewater treatment;
                    (C) water reclamation and reuse;
                    (D) groundwater recharge and protection;
                    (E) surface water augmentation; or
                    (F) other related improvements.

SEC. 3. NORTH BAY WATER REUSE PROGRAM.

    (a) In General.--The Secretary, acting through a cooperative 
agreement with the State or a subdivision of a State, may offer to 
enter into cooperative agreements with eligible entities for the 
planning, design, and construction of water reclamation and reuse 
projects.
    (b) Coordination With Other Federal Agencies.--In carrying out this 
section, the Secretary and the eligible entity shall, to the maximum 
extent practicable, use the design work and environmental evaluations 
initiated by--
            (1) non-Federal entities; and
            (2) the Corps of Engineers in the San Pablo Bay Watershed 
        of the State.
    (c) Cooperative Agreement.--
            (1) Requirements.--A cooperative agreement entered into 
        under paragraph (1) shall, at a minimum, specify the 
        responsibilities of the Secretary and the eligible entity with 
        respect to--
                    (A) ensuring that the cost-share requirements 
                established by subsection (e) are met;
                    (B) completing--
                            (i) a needs assessment for the water 
                        reclamation and reuse project; and
                            (ii) the planning and final design of the 
                        water reclamation and reuse project;
                    (C) any environmental compliance activity required 
                for the water reclamation and reuse project;
                    (D) the construction of facilities for the water 
                reclamation and reuse project; and
                    (E) administrating any contract relating to the 
                construction of the water reclamation and reuse 
                project.
            (2) Phased project.--
                    (A) In general.--A cooperative agreement described 
                in paragraph (1) shall require that any water 
                reclamation and reuse project carried out under this 
                section shall consist of 2 phases.
                    (B) First phase.--During the first phase, the 
                Secretary and an eligible entity shall complete the 
                planning, design, and construction of the main 
                treatment and main conveyance system of the water 
                reclamation and reuse project.
                    (C) Second phase.--During the second phase, the 
                Secretary and an eligible entity shall complete the 
                planning, design, and construction of the sub-regional 
                distribution systems of the water reclamation and reuse 
                project.
    (d) Financial Assistance.--
            (1) In general.--The Secretary may provide financial and 
        technical assistance to an eligible entity to assist in 
        planning, designing, conducting related preconstruction 
        activities for, and constructing a water reclamation and reuse 
        project.
            (2) Use.--Any financial assistance provided under paragraph 
        (1) shall be obligated and expended only in accordance with a 
        cooperative agreement entered into under this section.
    (e) Cost-Sharing Requirement.--
            (1) Federal share.--The Federal share of the total cost of 
        any activity or construction carried out using amounts made 
        available under this section shall be not more than 25 percent 
        of the total cost of a water reclamation and reuse project.
            (2) Form of non-federal share.--The non-Federal share may 
        be in the form of any in-kind services that the Secretary 
        determines would contribute substantially toward the completion 
        of the water reclamation and reuse project, including--
                    (A) reasonable costs incurred by the eligible 
                entity relating to the planning, design, and 
                construction of the water reclamation and reuse 
                project; and
                    (B) the fair-market value of land that is--
                            (i) used for planning, design, and 
                        construction of the water reclamation and reuse 
                        project facilities; and
                            (ii) owned by an eligible entity.
    (f) Operation, Maintenance, and Replacement Costs.--
            (1) In general.--The eligible entity shall be responsible 
        for the annual operation, maintenance, and replacement costs 
        associated with the water reclamation and reuse project.
            (2) Operation, maintenance, and replacement plan.--The 
        eligible entity, in consultation with the Secretary, shall 
        develop an operation, maintenance, and replacement plan for the 
        water reclamation and reuse project.
    (g) Effect.--Nothing in this Act--
            (1) affects or preempts--
                    (A) State water law; or
                    (B) an interstate compact relating to the 
                allocation of water; or
            (2) confers on any non-Federal entity the ability to 
        exercise any Federal right to--
                    (A) the water of a stream; or
                    (B) any groundwater resource.
    (h) Authorization of Appropriations.--There is authorized to be 
appropriated for the Federal share of the total cost of the first phase 
of water reclamation and reuse projects carried out under this Act, an 
amount not to exceed 25 percent of the total cost of those reclamation 
and reuse projects or $25,000,000, whichever is less, to remain 
available until expended.