A bill to authorize the Secretary of the Interior to make available cost-shared grants and enter into cooperative agreements to further the goals of the Water 2025 Program by improving water conservation, efficiency, and management in the Reclamation States, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bureau of Reclamation Water 
Conservation, Efficiency, and Management Improvement Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Non-federal entity.--The term ``non-Federal entity'' 
        means a State, Indian tribe, irrigation district, water 
        district, or any other organization with water delivery 
        authority.
            (2) Reclamation state.--The term ``Reclamation State'' 
        means each of the States of Arizona, California, Colorado, 
        Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North 
        Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, 
        Washington, and Wyoming.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior, acting through the Commissioner of 
        Reclamation.

SEC. 3. AUTHORIZATION OF GRANTS AND COOPERATIVE AGREEMENTS.

    (a) In General.--The Secretary may, in accordance with the criteria 
published under subsection (b), provide grants to, and enter into 
cooperative agreements with non-Federal entities to pay the Federal 
share of the cost of a project to plan, design, construct, or otherwise 
implement improvements to conserve water, increase water use 
efficiency, facilitate water markets, enhance water management, or 
implement other actions to prevent water-related crises or conflicts in 
watersheds that have a nexus to Federal water projects within the 
Reclamation States.
    (b) Eligibility Criteria.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall, consistent with 
        this Act, publish in the Federal Register criteria developed by 
        the Secretary for--
                    (A) determining the eligibility of a non-Federal 
                entity for assistance under subsection (a); and
                    (B) prioritizing requests for assistance under 
                subsection (a).
            (2) Factors.--The criteria developed under paragraph (1) 
        shall take into account such factors as--
                    (A) the extent to which a project under subsection 
                (a) would reduce conflict over water;
                    (B) the extent to which a project under subsection 
                (a) would--
                            (i) increase water use efficiency; or
                            (ii) enhance water management;
                    (C) the extent to which unallocated water is 
                available in the area in which a project under 
                subsection (a) is proposed to be conducted;
                    (D) the extent to which a project under subsection 
                (a) involves water marketing;
                    (E) the likelihood that the benefit of a project 
                under subsection (a) would be attained;
                    (F) whether the non-Federal entity has demonstrated 
                the ability of the non-Federal entity to pay the non-
                Federal share;
                    (G) the extent to which the assistance provided 
                under subsection (a) is reasonable for the work 
                proposed under the project;
                    (H) the involvement of the non-Federal entity and 
                stakeholders in a project under subsection (a);
                    (I) whether a project under subsection (a) is 
                related to a Bureau of Reclamation project or facility; 
                and
                    (J) the extent to which a project under subsection 
                (a) would conserve water.
    (c) Federal Facilities.--If a grant or cooperative agreement under 
subsection (a) provides for improvements to a Federal facility--
            (1) the Federal funds provided under the grant or 
        cooperative agreement may be--
                    (A) provided on a nonreimbursable basis to an 
                entity operating affected transferred works; or
                    (B) determined to be nonreimbursable for non-
                transferred works; and
            (2) title to the improvements to the Federal facility shall 
        be held by the United States.
    (d) Cost-Sharing Requirement.--
            (1) Federal share.--The Federal share of the cost of 
        carrying out a project assisted under subsection (a) shall be 
        not more than 50 percent.
            (2) Non-federal share.--In calculating the non-Federal 
        share of the cost of carrying out a project under subsection 
        (a), the Secretary--
                    (A) may include any in-kind contributions that the 
                Secretary determines would materially contribute to the 
                completion of proposed project; and
                    (B) shall exclude any funds received from other 
                Federal agencies.
    (e) Operation and Maintenance Costs.--The non-Federal share of the 
cost of operating and maintaining improvements assisted under 
subsection (a) shall be 100 percent.
    (f) Mutual Benefit.--Grants or cooperative agreements made under 
this section or section 4 may be for the mutual benefit of the United 
States and the entity that is provided the grant or enters into the 
cooperative agreement.
    (g) Liability.--
            (1) In general.--Except as provided in paragraph (2), the 
        United States shall not be liable under Federal or State law 
        for monetary damages of any kind arising out of any act, 
        omission, or occurrence relating to any non-Federal facility 
        constructed or improved under this title.
            (2) Exception.--Notwithstanding paragraph (1), the United 
        States may be held liable for damages to non-Federal facilities 
        caused by acts of negligence committed by the United States or 
        by an employee or agent of the United States.
            (3) No additional liability.--Nothing in this section 
        increases the liability of the United States beyond that 
        provided in chapter 171 of title 28, United States Code 
        (commonly known as the ``Federal Torts Claim Act'').

SEC. 4. RESEARCH AGREEMENTS.

    The Secretary may enter into cooperative agreements with 
institutions of higher education, nonprofit research institutions, or 
organizations with water or power delivery authority to fund research 
to conserve water, increase water use efficiency, or enhance water 
management under such terms and conditions as the Secretary determines 
to be appropriate.

SEC. 5. EFFECT.

    Nothing in this title affects any existing project-specific funding 
authority.

SEC. 6. EFFECT ON STATE WATER LAW.

    Nothing in this Act invalidates, preempts, or creates any exception 
to State water law, State water rights, or any interstate compact 
governing water.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this Act 
$25,000,000 for each of fiscal years 2007 through 2016.

Summary: Bureau of Reclamation Water Conservation, Efficiency, and Management Improvement Act - Authorizes the Secretary of the Interior, acting through the Commissioner of Reclamation, to provide grants to, and enter into cooperative agreements with, nonfederal entities with water delivery authority to pay the federal share of the cost of a project to conserve water, increase water use efficiency, facilitate water markets, enhance water management, or implement other actions to prevent water-related crises or conflicts in watersheds that have a nexus to federal water projects within reclamation states . Directs the Secretary to publish assistance eligibility and priority criteria. Limits the federal cost share of the project to 50. Sets the nonfederal cost share for project operation and maintenance at 100. Authorizes the Secretary to enter into cooperative agreements with institutions of higher education, nonprofit research institutions, or organizations with water or power delivery authority to fund research to conserve water, increase water use efficiency, or enhance water management.