SECTION 1. SHORT TITLE.
    This Act may be cited as the ``Bureau of Reclamation Small Conduit 
Hydropower Development and Rural Jobs Act''.
SEC. 2. AUTHORIZATION.
    Section 9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 
485h(c)) is amended--
        (1) by striking ``The Secretary is authorized to enter into 
    contracts to furnish water'' and inserting the following:
        ``(1) The Secretary is authorized to enter into contracts to 
    furnish water'';
        (2) by striking ``(1) shall'' and inserting ``(A) shall'';
        (3) by striking ``(2) shall'' and inserting ``(B) shall'';
        (4) by striking ``respecting the terms of sales of electric 
    power and leases of power privileges shall be in addition and 
    alternative to any authority in existing laws relating to 
    particular projects'' and inserting ``respecting the sales of 
    electric power and leases of power privileges shall be an 
    authorization in addition to and alternative to any authority in 
    existing laws related to particular projects, including small 
    conduit hydropower development''; and
        (5) by adding at the end the following:
            ``(2)(A) When carrying out this subsection, the Secretary 
        shall first offer the lease of power privilege to an irrigation 
        district or water users association operating the applicable 
        transferred conduit, or to the irrigation district or water 
        users association receiving water from the applicable reserved 
        conduit. The Secretary shall determine a reasonable time frame 
        for the irrigation district or water users association to 
        accept or reject a lease of power privilege offer for a small 
        conduit hydropower project.
            ``(B) If the irrigation district or water users association 
        elects not accept a lease of power privilege offer under 
        subparagraph (A), the Secretary shall offer the lease of power 
        privilege to other parties in accordance with this subsection.
            ``(3) The Bureau of Reclamation shall apply its categorical 
        exclusion process under the National Environmental Policy Act 
        of 1969 (42 U.S.C. 4321 et seq.) to small conduit hydropower 
        development under this subsection, excluding siting of 
        associated transmission facilities on Federal lands.
            ``(4) The Power Resources Office of the Bureau of 
        Reclamation shall be the lead office of small conduit 
        hydropower policy and procedure-setting activities conducted 
        under this subsection.
            ``(5) Nothing in this subsection shall obligate the Western 
        Area Power Administration, the Bonneville Power Administration, 
        or the Southwestern Power Administration to purchase or market 
        any of the power produced by the facilities covered under this 
        subsection and none of the costs associated with production or 
        delivery of such power shall be assigned to project purposes 
        for inclusion in project rates.
            ``(6) Nothing in this subsection shall alter or impede the 
        delivery and management of water by Bureau of Reclamation 
        facilities, as water used for conduit hydropower generation 
        shall be deemed incidental to use of water for the original 
        project purposes. Lease of power privilege shall be made only 
        when, in the judgment of the Secretary, the exercise of the 
        lease will not be incompatible with the purposes of the project 
        or division involved, nor shall it create any unmitigated 
        financial or physical impacts to the project or division 
        involved. The Secretary shall notify and consult with the 
        irrigation district or water users association operating the 
        transferred conduit before offering the lease of power 
        privilege and shall prescribe terms and conditions that will 
        adequately protect the planning, design, construction, 
        operation, maintenance, and other interests of the United 
        States and the project or division involved.
            ``(7) Nothing in this subsection shall alter or affect any 
        existing agreements for the development of conduit hydropower 
        projects or disposition of revenues.
            ``(8) Nothing in this subsection shall alter or affect any 
        existing preliminary permit, license, or exemption issued by 
        the Federal Energy Regulatory Commission under Part I of the 
        Federal Power Act (16 U.S.C. 792 et seq.) or any project for 
        which an application has been filed with the Federal Energy 
        Regulatory Commission as of the date of the enactment of the 
        Bureau of Reclamation Small Conduit Hydropower Development and 
        Rural Jobs Act.
            ``(9) In this subsection:
                ``(A) Conduit.--The term `conduit' means any Bureau of 
            Reclamation tunnel, canal, pipeline, aqueduct, flume, 
            ditch, or similar manmade water conveyance that is operated 
            for the distribution of water for agricultural, municipal, 
            or industrial consumption and not primarily for the 
            generation of electricity.
                ``(B) Irrigation district.--The term `irrigation 
            district' means any irrigation, water conservation or 
            conservancy, multicounty water conservation or conservancy 
            district, or any separate public entity composed of two or 
            more such districts and jointly exercising powers of its 
            member districts.
                ``(C) Reserved conduit.--The term `reserved conduit' 
            means any conduit that is included in project works the 
            care, operation, and maintenance of which has been reserved 
            by the Secretary, through the Commissioner of the Bureau of 
            Reclamation.
                ``(D) Transferred conduit.--The term `transferred 
            conduit' means any conduit that is included in project 
            works the care, operation, and maintenance of which has 
            been transferred to a legally organized water users 
            association or irrigation district.
                ``(E) Small conduit hydropower.--The term `small 
            conduit hydropower' means a facility capable of producing 5 
            megawatts or less of electric capacity.''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
(This measure has not been amended since it was passed by the House on April 10, 2013.  Bureau of Reclamation Small Conduit Hydropower Development and Rural Jobs Act - Amends the Reclamation Project Act of 1939 to authorize the Secretary of the Interior (acting through the Bureau of Reclamation) to contract for the development of small conduit hydropower at Bureau facilities. Defines: (1) "small conduit hydropower" as five megawatts or less; and (2) "conduit" as a tunnel, canal, pipeline, aqueduct, flume, ditch, or similar manmade water conveyance. Requires that power privilege leases be offered first to an irrigation district or water users association operating or receiving water from the applicable transferred or reserved conduit.  Defines: (1) reserved conduit as any conduit included in project works whose care, operation, and maintenance has been reserved by the Secretary (through the Bureau); and (2) transferred conduit as any conduit included in project works whose care, operation, and maintenance has been transferred to a legally organized water users association or irrigation district. Requires the Secretary to offer the lease of power privilege to other parties if the irrigation district or water users association elects not to accept a lease of power privilege offer. Requires the Bureau to apply its categorical exclusion process under the National Environmental Policy Act of 1969 (NEPA) to small conduit hydropower, except with respect to siting of associated transmission on federal lands. Makes the Bureau's Power Resources Office the lead office for such small conduit hydropower policy and procedure-setting activities. (Thus excludes such activities from the jurisdiction of the Federal Energy Regulatory Commission [FERC].) Declares that nothing in this Act shall: (1) obligate specified power administrations to purchase or market the power produced by such facilities, (2) alter or impede the delivery and management of water for original project purposes, or (3) alter or affect any existing agreements for conduit hydropower development projects or disposition of revenues. Deems water used for conduit hydropower generation to be incidental to use of water for the original project purposes.
Bureau of Reclamation Small Conduit Hydropower Development and Rural Jobs Act