SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Dry-Redwater Regional Water 
Authority System Act of 2011''.

SEC. 2. PURPOSE.

    The purpose of this Act is to ensure a safe and adequate municipal, 
rural, and industrial water supply for the citizens of--
            (1) Dawson, Garfield, McCone, Prairie, and Richland 
        Counties of the State; and
            (2) McKenzie County, North Dakota.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Western Area Power Administration.
            (2) Authority.--The term ``Authority'' means--
                    (A) the Dry-Redwater Regional Water Authority, 
                which is a publicly owned nonprofit water authority 
                formed in accordance with Mont. Code Ann. Sec.  75-6-
                302 (2007); and
                    (B) any nonprofit successor entity.
            (3) Integrated system.--The term ``integrated system'' 
        means the transmission system owned by the Western Area Power 
        Administration Basin Electric Power District and the Heartland 
        Consumers Power District.
            (4) Non-federal distribution system.--The term ``non-
        Federal distribution system'' means a non-Federal utility that 
        provides electricity to the counties covered by the Water 
        System.
            (5) Pick-sloan program.--The term ``Pick-Sloan program'' 
        means the Pick-Sloan Missouri River Basin Program (authorized 
        by section 9 of the Act of December 22, 1944 (commonly known as 
        the ``Flood Control Act of 1944'') (58 Stat. 891, chapter 
        665)).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (7) State.--The term ``State'' means the State of Montana.
            (8) Water system.--The term ``Water System'' means the Dry-
        Redwater Regional Water Authority System authorized under 
        section 4 with a project service area that includes--
                    (A) the Garfield and McCone Counties of the State;
                    (B) the area west of the Yellowstone River in 
                Dawson and Richland Counties of the State;
                    (C) Township 15N (including the area north of the 
                Township) in Prairie County of the State; and
                    (D) the portion of McKenzie County, North Dakota 
                that includes all land that is located west of the 
                Yellowstone River in the State of North Dakota.

SEC. 4. DRY-REDWATER REGIONAL WATER AUTHORITY SYSTEM.

    (a) Authorization.--
            (1) In general.--If the Secretary, acting through the 
        Commissioner of the Bureau of Reclamation, determines that the 
        project is feasible, the Secretary is authorized to carry out 
        the project entitled ``Dry-Redwater Regional Water Authority 
        System'' in a manner that is substantially in accordance with 
        the plans, and subject to the conditions, described in the 
        ``Dry-Redwater Regional Water System Feasibility Study'', which 
        received funding from the Bureau of Reclamation on September 1, 
        2010, and is to be completed in accordance with section 106(a) 
        of the Rural Water Supply Act of 2006 (43 U.S.C. 2405(a)).
            (2) Cooperative agreement.--The Secretary shall enter into 
        a cooperative agreement with the Authority to provide Federal 
        assistance for the planning, design, and construction of the 
        Dry Redwater Regional Water Authority.
    (b) Cost Sharing.--
            (1) Federal share.--
                    (A) In general.--The Federal share of the costs 
                relating to the planning, design, and construction of 
                the Water System shall not exceed 75 percent of the 
                total cost of the Water System.
                    (B) Limitation.--Amounts made available under 
                subparagraph (A) shall not be returnable or 
                reimbursable under the reclamation laws.
            (2) Use of federal funds.--
                    (A) In general.--Subject to subparagraph (B), 
                Federal funds made available to carry out this section 
                may be used for--
                            (i) facilities relating to--
                                    (I) water intake;
                                    (II) water pumping;
                                    (III) water treatment; and
                                    (IV) water storage;
                            (ii) transmission pipelines and pumping 
                        stations;
                            (iii) appurtenant buildings, maintenance 
                        equipment, and access roads;
                            (iv) any interconnection facility that 
                        connects a pipeline of the Water System to a 
                        pipeline of a public water system;
                            (v) distribution, pumping, and storage 
                        facilities that--
                                    (I) serve the needs of citizens who 
                                use public water systems;
                                    (II) are in existence on the date 
                                of enactment of this Act; and
                                    (III) may be purchased, improved, 
                                and repaired in accordance with a 
                                cooperative agreement entered into by 
                                the Secretary under subsection (a)(2);
                            (vi) electrical power transmission and 
                        distribution facilities required for the 
                        operation and maintenance of the Water System;
                            (vii) any other facility or service 
                        required for the development of a rural water 
                        distribution system, as determined by the 
                        Secretary; and
                            (viii) any property or property right 
                        required for the construction or operation of a 
                        facility described in this subsection.
                    (B) Limitation.--Federal funds made available to 
                carry out this section shall not be used for the 
                operation, maintenance, or replacement of the Water 
                System.
    (c) Title.--Title to the Water System shall be held by the 
Authority.

SEC. 5. USE OF POWER FROM PICK-SLOAN PROGRAM.

    (a) Findings.--Congress finds that McCone and Garfield Counties in 
the State were designated as impact counties during the period in which 
the Fort Peck Dam was constructed, and as such, were to receive impact 
mitigation benefits in accordance with the Pick-Sloan program.
    (b) Availability of Power.--
            (1) In general.--Subject to paragraph (2), the 
        Administrator shall make available to the Water System a 
        quantity of power required, of up to 1\1/2\ megawatt capacity, 
        to meet the pumping and incidental operation requirements of 
        the Water System during the period beginning on May 1 and 
        ending on October 31 of each year--
                    (A) from the water intake facilities; and
                    (B) through all pumping stations, water treatment 
                facilities, reservoirs, storage tanks, and pipelines up 
                to the point of delivery of water by the water supply 
                system to all storage reservoirs and tanks and each 
                entity that distributes water at retail to individual 
                users.
            (2) Eligibility.--The Water System shall be eligible to 
        receive power under paragraph (1) if the Water System--
                    (A) operates on a not-for-profit basis; and
                    (B) is constructed pursuant to a cooperative 
                agreement entered into by the Secretary under section 
                4(a)(2).
            (3) Rate.--The Administrator shall establish the cost of 
        the power described in paragraph (1) at the firm power rate.
            (4) Additional power.--
                    (A) In general.--If power, in addition to that made 
                available to the Water System under paragraph (1), is 
                necessary to meet the pumping requirements of the 
                Authority, the Administrator may purchase the necessary 
                additional power at the best available rate.
                    (B) Reimbursement.--The cost of purchasing 
                additional power shall be reimbursed to the 
                Administrator by the Authority.
            (5) Responsibility for power charges.--The Authority shall 
        be responsible for the payment of the power charge described in 
        paragraph (4) and non-Federal delivery costs described in 
        paragraph (6).
            (6) Transmission arrangements.--
                    (A) In general.--The Water System shall be 
                responsible for all non-Federal transmission and 
                distribution system delivery and service arrangements.
                    (B) Upgrades.--The Water System shall be 
                responsible for funding any transmission upgrades, if 
                required, to the integrated system necessary to deliver 
                power to the Water System.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out the planning, design, and construction of the 
Water System $115,116,000.
    (b) Cost Indexing.--The amount authorized to be appropriated under 
subsection (a) may be increased or decreased in accordance with 
ordinary fluctuations in development costs incurred after January 1, 
2008, as indicated by any available engineering cost indices applicable 
to construction activities that are similar to the construction of the 
Water System.
Dry-Redwater Regional Water Authority System Act of 2011 - Authorizes the Secretary of the Interior to carry out the project entitled the "Dry-Redwater Regional Water Authority System" in accordance with the plans described in the "Dry-Redwater Regional Water System Feasibility Study" if the Secretary determines that the project is feasible.

Directs the Secretary to enter into a cooperative agreement to provide federal assistance for the planning, design, and construction of the Dry-Redwater Regional Water Authority for specified counties in Montana and North Dakota.

Limits the federal share of planning, design, and construction of the System to 75% of the total cost. Delineates the components of System facilities for which federal funds may be expended. Prohibits federal funds from being used for the System's operation, maintenance, or replacement.

Directs the Administrator of the Western Area Power Administration to make available to the System a quantity of power required, up to one and a half megawatt capacity, to meet the System's pumping and incidental operation requirements between May 1 and October 31 of each year from the water intake facilities and through all pumping stations, water treatment facilities, reservoirs, storage tanks, and pipelines up to the point of delivery of water by the water supply system to all storage reservoirs and tanks and each entity that distributes water at retail to individual users. Makes the System eligible to receive such power only if it operates on a nonprofit basis and is constructed pursuant to the cooperative agreement. Sets forth provisions regarding the purchase of additional power, the Authority's responsibility for power charges and non-federal delivery costs, and the System's responsibility for non-federal transmission and distribution system delivery and service arrangements and for funding any transmission upgrades required to the integrated system necessary to deliver power to the System.
A bill to authorize the Dry-Redwater Regional Water Authority System.