To provide environmental assistance to non-Federal interests in the State of Colorado.

Summary: Rural Colorado Water Infrastructure Act - Authorizes the Secretary of the Army, acting through the Chief of Engineers, to establish a pilot program to provide environmental assistance to non-federal interests in Colorado, which may be provided in the form of design and construction assistance for water-related environmental infrastructure and resource protection and development projects.

Requires projects to be publicly owned as a prerequisite for assistance.

Directs the Secretary to enter into local cooperation agreements with non-federal interests for project design and construction. Sets the federal share of project costs under local cooperation agreements at 75 percent. Sets the non-federal share of operation and maintenance costs for projects constructed with assistance under this Act at 100 percent.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Colorado Water Infrastructure 
Act''.

SEC. 2. DEFINITIONS.

    In this Act, the following definitions apply:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of the Army, acting through the Chief of Engineers.
            (2) State.--The term ``State'' means the State of Colorado.

SEC. 3. PROGRAM.

    (a) Establishment.--The Secretary may establish a pilot program to 
provide environmental assistance to non-Federal interests in the State.
    (b) Form of Assistance.--Assistance under this section may be 
provided in the form of design and construction assistance for water-
related environmental infrastructure and resource protection and 
development projects in the State, including projects for--
            (1) wastewater treatment and related facilities;
            (2) water supply and related facilities;
            (3) water conservation and related facilities;
            (4) stormwater retention and remediation;
            (5) environmental restoration; and
            (6) surface water resource protection and development.
    (c) Public Ownership Requirement.--The Secretary may provide 
assistance for a project under this section only if the project is 
publicly owned.
    (d) Local Cooperation Agreement.--
            (1) In general.--Before providing assistance under this 
        section, the Secretary shall enter into a local cooperation 
        agreement with a non-Federal interest to provide for design and 
        construction of the project to be carried out with the 
        assistance.
            (2) Requirements.--Each local cooperation agreement entered 
        into under this subsection shall provide for the following:
                    (A) Plan.--Development by the Secretary, in 
                consultation and coordination with appropriate Federal 
                and State officials, of a facilities or resource 
                protection and development plan, including appropriate 
                engineering plans and specifications.
                    (B) Legal and institutional structures.--
                Establishment of such legal and institutional 
                structures as are necessary to ensure the effective 
                long-term operation of the project by the non-Federal 
                interest.
            (3) Cost sharing.--
                    (A) In general.--The Federal share of project costs 
                under each local cooperation agreement entered into 
                under this subsection--
                            (i) shall be 75 percent; and
                            (ii) may be in the form of grants or 
                        reimbursements of project costs.
                    (B) Pre-cooperative agreement activities.--The 
                Federal share of the cost of activities carried out by 
                the Secretary under this section before the execution 
                of a local cooperative agreement shall be 100 percent.
                    (C) Credit for design work.--The non-Federal 
                interest shall receive credit, not to exceed 6 percent 
                of the total construction costs of a project, for the 
                reasonable costs of design work completed by the non-
                Federal interest before entering into a local 
                cooperation agreement with the Secretary for the 
                project.
                    (D) Credit for interest.--In case of a delay in the 
                funding of the Federal share of the costs of a project 
                that is the subject of an agreement under this section, 
                the non-Federal interest shall receive credit for 
                reasonable interest incurred in providing the Federal 
                share of the costs of the project.
                    (E) Land, easements, and rights-of-way credit.--The 
                non-Federal interest shall receive credit for land, 
                easements, rights-of-way, and relocations toward the 
                non-Federal share of project costs (including all 
                reasonable costs associated with obtaining permits 
                necessary for the construction, operation, and 
                maintenance of the project on publicly owned or 
                controlled land), but not to exceed 25 percent of total 
                project costs.
                    (F) Operation and maintenance.--The non-Federal 
                share of operation and maintenance costs for projects 
                constructed with assistance provided under this section 
                shall be 100 percent.
    (e) Applicability of Other Federal and State Laws.--Nothing in this 
section waives, limits, or otherwise affects the applicability of any 
provision of Federal or State law that would otherwise apply to a 
project to be carried out with assistance provided under this section.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000 for fiscal year 2008 
and thereafter. Such sums shall remain available until expended.