SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Clean Water for Rural Communities 
Act''.

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, Richland, Judith 
        Basin, Wheatland, Golden Valley, Fergus, Yellowstone, and 
        Musselshell Counties in the State of Montana; 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) in the case of the Dry-Redwater Regional Water 
                Authority System--
                            (i) 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
                            (ii) any nonprofit successor entity to the 
                        Authority described in clause (i); and
                    (B) in the case of the Musselshell-Judith Rural 
                Water System--
                            (i) the Central Montana Regional Water 
                        Authority, which is a publicly owned nonprofit 
                        water authority formed in accordance with Mont. 
                        Code Ann. Sec.  75-6-302 (2007); and
                            (ii) any nonprofit successor entity to the 
                        Authority described in clause (i).
            (3) Dry-redwater regional water authority system.--The term 
        ``Dry-Redwater Regional Water Authority System'' means the Dry-
        Redwater Regional Water Authority System authorized under 
        section 4(a)(1) with a project service area that includes--
                    (A) Garfield and McCone Counties in the State;
                    (B) the area west of the Yellowstone River in 
                Dawson and Richland Counties in the State;
                    (C) T. 15 N. (including the area north of the 
                Township) in Prairie County in 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.
            (4) 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.
            (5) Musselshell-judith rural water system.--The term 
        ``Musselshell-Judith Rural Water System'' means the 
        Musselshell-Judith Rural Water System authorized under section 
        4(a)(2) with a project service area that includes--
                    (A) Judith Basin, Wheatland, Golden Valley, and 
                Musselshell Counties in the State;
                    (B) the portion of Yellowstone County in the State 
                within 2 miles of State Highway 3 and within 4 miles of 
                the county line between Golden Valley and Yellowstone 
                Counties in the State, inclusive of the Town of 
                Broadview, Montana; and
                    (C) the portion of Fergus County in the State 
                within 2 miles of U.S. Highway 87 and within 4 miles of 
                the county line between Fergus and Judith Basin 
                Counties in the State, inclusive of the Town of Moore, 
                Montana.
            (6) Non-federal distribution system.--The term ``non-
        Federal distribution system'' means a non-Federal utility that 
        provides electricity to the counties covered by the Dry-
        Redwater Regional Water Authority System.
            (7) 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)).
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (9) State.--The term ``State'' means the State of Montana.
            (10) Water system.--The term ``Water System'' means--
                    (A) the Dry-Redwater Regional Water Authority 
                System; and
                    (B) the Musselshell-Judith Rural Water System.

SEC. 4. DRY-REDWATER REGIONAL WATER AUTHORITY SYSTEM AND MUSSELSHELL-
              JUDITH RURAL WATER SYSTEM.

    (a) Authorization.--The Secretary may carry out--
            (1) the project entitled the ``Dry-Redwater Regional Water 
        Authority System'' in a manner that is substantially in 
        accordance with the feasibility study entitled ``Dry-Redwater 
        Regional Water System Feasibility Study'' (including revisions 
        of the study), which received funding from the Bureau of 
        Reclamation on September 1, 2010; and
            (2) the project entitled the ``Musselshell-Judith Rural 
        Water System'' in a manner that is substantially in accordance 
        with the feasibility report entitled ``Musselshell-Judith Rural 
        Water System Feasibility Report'' (including any and all 
        revisions of the report).
    (b) 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 Water Systems.
    (c) Cost-Sharing Requirement.--
            (1) Federal share.--
                    (A) In general.--The Federal share of the costs 
                relating to the planning, design, and construction of 
                the Water Systems shall not exceed--
                            (i) in the case of the Dry-Redwater 
                        Regional Water Authority System--
                                    (I) 75 percent of the total cost of 
                                the Dry-Redwater Regional Water 
                                Authority System; or
                                    (II) such other lesser amount as 
                                may be determined by the Secretary, 
                                acting through the Commissioner of 
                                Reclamation, in a feasibility report; 
                                or
                            (ii) in the case of the Musselshell-Judith 
                        Rural Water System, 75 percent of the total 
                        cost of the Musselshell-Judith Rural 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) General uses.--Subject to subparagraphs (B) and 
                (C), the Water Systems may use Federal funds made 
                available to carry out this section for--
                            (i) facilities relating to--
                                    (I) water pumping;
                                    (II) water treatment; and
                                    (III) water storage;
                            (ii) transmission pipelines;
                            (iii) pumping stations;
                            (iv) appurtenant buildings, maintenance 
                        equipment, and access roads;
                            (v) any interconnection facility that 
                        connects a pipeline of the Water System to a 
                        pipeline of a public water system;
                            (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) Additional uses.--In addition to the uses 
                described in subparagraph (A)--
                            (i) the Dry-Redwater Regional Water 
                        Authority System may use Federal funds made 
                        available to carry out this section for--
                                    (I) facilities relating to water 
                                intake; and
                                    (II) distribution, pumping, and 
                                storage facilities that--
                                            (aa) serve the needs of 
                                        citizens who use public water 
                                        systems;
                                            (bb) are in existence on 
                                        the date of enactment of this 
                                        Act; and
                                            (cc) may be purchased, 
                                        improved, and repaired in 
                                        accordance with a cooperative 
                                        agreement entered into by the 
                                        Secretary under subsection (b); 
                                        and
                            (ii) the Musselshell-Judith Rural Water 
                        System may use Federal funds made available to 
                        carry out this section for--
                                    (I) facilities relating to--
                                            (aa) water supply wells; 
                                        and
                                            (bb) distribution 
                                        pipelines; and
                                    (II) control systems.
                    (C) Limitation.--Federal funds made available to 
                carry out this section shall not be used for the 
                operation, maintenance, or replacement of the Water 
                Systems.
                    (D) Title.--Title to the Water Systems shall be 
                held by the Authority.

SEC. 5. USE OF POWER FROM PICK-SLOAN PROGRAM BY THE DRY-REDWATER 
              REGIONAL WATER AUTHORITY SYSTEM.

    (a) Finding.--Congress finds that--
            (1) McCone and Garfield Counties in the State were 
        designated as impact counties during the period in which the 
        Fort Peck Dam was constructed; and
            (2) as a result of the designation, the Counties referred 
        to in paragraph (1) 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 Dry-Redwater Regional 
        Water Authority System a quantity of power required, of up to 
        1\1/2\ megawatt capacity, to meet the pumping and incidental 
        operation requirements of the Dry-Redwater Regional Water 
        Authority 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 Dry-Redwater Regional Water Authority 
        System shall be eligible to receive power under paragraph (1) 
        if the Dry-Redwater Regional Water Authority 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(b).
            (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 Dry-Redwater Regional Water Authority 
                System under paragraph (1), is necessary to meet the 
                pumping requirements of the Dry-Redwater Regional Water 
                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 Dry-Redwater Regional Water 
                Authority.
            (5) Responsibility for power charges.--The Dry-Redwater 
        Regional Water 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 Dry-Redwater Regional Water 
                Authority System shall be responsible for all non-
                Federal transmission and distribution system delivery 
                and service arrangements.
                    (B) Upgrades.--The Dry-Redwater Regional Water 
                Authority System shall be responsible for funding any 
                transmission upgrades, if required, to the integrated 
                system necessary to deliver power to the Dry-Redwater 
                Regional Water Authority System.

SEC. 6. WATER RIGHTS.

    Nothing in this Act--
            (1) preempts or affects any State water law; or
            (2) affects any authority of a State, as in effect on the 
        date of enactment of this Act, to manage water resources within 
        that State.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization.--There are authorized to be appropriated such 
sums as are necessary to carry out the planning, design, and 
construction of the Water Systems, substantially in accordance with the 
cost estimate set forth in the applicable feasibility study or 
feasibility report described in section 4(a).
    (b) Cost Indexing.--
            (1) In general.--The amount authorized to be appropriated 
        under subsection (a) may be increased or decreased in 
        accordance with ordinary fluctuations in development costs 
        incurred after the applicable date specified in paragraph (2), 
        as indicated by any available engineering cost indices 
        applicable to construction activities that are similar to the 
        construction of the Water Systems.
            (2) Applicable dates.--The date referred to in paragraph 
        (1) is--
                    (A) in the case of the Dry-Redwater Regional Water 
                Authority System, January 1, 2008; and
                    (B) in the case of the Musselshell-Judith Rural 
                Water Authority System, November 1, 2014.
Clean Water for Rural Communities Act  This bill authorizes the Department of the Interior to carry out the projects entitled: (1) the &quot;Dry-Redwater Regional Water Authority System&quot; in accordance with the Dry-Redwater Regional Water System Feasibility Study, which received funding from the Bureau of Reclamation on September 1, 2010; and (2) the &quot;Musselshell-Judith Rural Water System&quot; in accordance with the Musselshell-Judith Rural Water System Feasibility Report. The bill defines the service areas of such projects in North Dakota and Montana. Interior must enter into a cooperative agreement with the Dry-Redwater Regional Water Authority and the Central Montana Regional Water Authority to provide federal assistance for the planning, design, and construction of such water systems. The bill sets forth the federal share of such costs and the authorized uses of federal funds, which exclude operation, maintenance, or replacement of the water systems. The Western Area Power Administration must make available to the Dry-Redwater System a quantity of power (up to one and a half megawatt capacity) required to meet the system's pumping and incidental operation requirements between May 1 and October 31 of each year: (1) from the water intake facilities; and (2) through all pumping stations, water treatment facilities, reservoirs, storage tanks, and pipelines up to the point of delivery of water to all storage reservoirs and tanks and each entity that distributes water at retail to individual users. The system is eligible to receive such power only if it: (1) operates on a nonprofit basis, and (2) is constructed pursuant to the cooperative agreement with the Dry-Redwater Regional Water Authority. The bill provides for the purchase of additional power. The authority is responsible for: (1) charges for such additional power, (2) the costs of non-federal transmission and distribution system delivery and service arrangements, and (3) funding any upgrades to the transmission system owned by the Western Area Power Administration Basin Electric Power District and the Heartland Consumers Power District required to deliver power to the system. The bill authorizes appropriations and adjustments in authorized amounts in accordance with ordinary fluctuations in development costs.
Clean Water for Rural Communities Act