Reclamation Title Transfer and Non-Federal Infrastructure Incentivization Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reclamation Title Transfer and Non-
Federal Infrastructure Incentivization Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (2) Eligible facility.--The term ``eligible facility''--
                    (A) means a reclamation project or facility, or a 
                portion of such a project or facility (which may 
                include dams and appurtenant works, infrastructure, 
                recreational facilities, buildings, distribution and 
                drainage works, and associated lands or interests in 
                lands or water) that meets the criteria for potential 
                transfer established pursuant to section 4; and
                    (B) does not include a reclamation facility or 
                separately functioning portion of such facility that 
                generates hydropower marketed by a power marketing 
                administration.
            (3) Qualifying entity.--The term ``qualifying entity'' 
        means an agency of a State political subdivision, joint action 
        or powers agency, water users association, Indian Tribe or 
        Tribal utility authority, that--
                    (A) held or holds a water service contract, 
                repayment contract, operation and maintenance contract, 
                water rights settlement contract or exchange contract 
                providing for water service from the eligible facility 
                to be transferred; and
                    (B) as determined by the Secretary, has the 
                capacity to continue to manage the conveyed property 
                for the same purposes by which the property has been 
                managed under reclamation law.
            (4) Conveyed property.--The term ``conveyed property'' 
        means an eligible facility that has been transferred out of 
        Federal ownership under this Act.

SEC. 3. AUTHORIZATION OF TITLE TRANSFER.

    (a) In General.--The Secretary may convey to a qualifying entity 
all right, title, and interest of the United States in and to any 
eligible facility, subject to subsections (b) and (c), if--
            (1) the Secretary notifies Congress in writing of the 
        proposed conveyance, and the reasons for the conveyance, not 
        later than 90 days before the date on which the Secretary makes 
        the conveyance; and
            (2) Congress does not pass a joint resolution disapproving 
        the conveyance before such date.
    (b) Associated Water Rights and Uses.--Federal interests in 
associated water rights and uses, if included, shall be conveyed in 
accordance with applicable State law under this Act by a written 
agreement between the Secretary and the qualifying entity.
    (c) Consultation.--Interests in eligible facilities shall be 
conveyed under this Act by a written agreement between the Secretary 
and the qualifying entity, developed in consultation with any existing 
water and power customers affected by the eligible facility.
    (d) Right of First Refusal.--If the entity that operates and 
maintains an eligible facility at the time that the Secretary attempts 
to facilitate the conveyance under subsection (c) is a qualifying 
entity, that entity shall have the right of first refusal to receive 
the conveyance under this Act.

SEC. 4. ELIGIBILITY CRITERIA FOR TITLE TRANSFER UNDER THIS ACT.

    Not later than one year after the date of the enactment of this 
Act, the Secretary shall establish criteria for determining whether 
facilities are eligible for title transfer under this Act. The criteria 
shall include the following minimum requirements:
            (1) The qualifying entity agrees to accept title to the 
        property proposed for transfer.
            (2) The proposed title transfer will not have an 
        unmitigated significant effect on the environment.
            (3) The qualifying entity intends to use the property for 
        substantially the same purposes the property is being used for 
        at the time the Secretary evaluates the potential transfer.
            (4) The transfer is consistent with the Secretary's 
        responsibility to protect land and water resources held in 
        trust for federally recognized Indian Tribes.
            (5) The transfer is consistent with the Secretary's 
        responsibility to ensure compliance with international treaties 
        and interstate compacts.
            (6) The qualifying entity agrees to provide, as 
        consideration for the assets to be conveyed, compensation to 
        the United States worth the equivalent of the present value of 
        any repayment obligation to the United States or other income 
        stream the United States derives from the assets to be 
        transferred at the time of the transfer.

SEC. 5. OTHER CONDITIONS FOR CONVEYANCES.

    (a) Power Rates.--No conveyance under this Act may adversely impact 
power rates or repayment obligations.
    (b) NEPA.--The Secretary shall apply a categorical exclusion 
process under the National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.) on eligible facilities under this Act.

SEC. 6. LIABILITY.

    Effective upon the date of conveyance of any eligible facility 
pursuant to this Act, the United States shall not be liable for damages 
of any kind arising out of any act, omission, or occurrence based on 
its prior ownership or operation of the conveyed property, except for 
damages caused by acts of negligence committed by the United States or 
by its employees, agents, or contractors, prior to conveyance.

SEC. 7. BENEFITS.

    After a conveyance under this Act--
            (1) the conveyed property shall not be considered to be a 
        part of a Federal reclamation project; and
            (2) in the event that a transfer of an entire project 
        occurs, the entity to which the property is conveyed shall not 
        be eligible to receive any benefits, including project power, 
        with respect to the conveyed property, except benefits that 
        would be available to a similarly situated entity with respect 
        to property that is not part of a Federal reclamation project.

SEC. 8. COMPLIANCE WITH OTHER LAWS.

    After a conveyance under this Act, the entity to which the property 
is conveyed shall comply with all applicable Federal, State, and local 
laws and regulations in its operation of the conveyed property.

SEC. 9. NOTIFICATION.

    The Secretary shall submit, as part of the Secretary's annual 
budget submission to Congress--
            (1) a description of the actions taken to implement this 
        Act; and
            (2) a list of conveyances made or initiated by the 
        Secretary or a qualifying entity under this Act.

            Passed the House of Representatives July 12, 2018.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.

Summary: Reclamation Title Transfer and Non-Federal Infrastructure Incentivization Act This bill authorizes the Department of the Interior to convey US interest in an eligible reclamation project or facility to an agency of a state political subdivision, a joint action or powers agency, a water users association, or an Indian tribe or tribal utility authority that holds a water service contract for such property and that has the capacity to continue to manage the property for the same purposes for which it has been managed under reclamation law, if: (1) Interior notifies Congress in writing of the proposed conveyance at least 90 days in advance, and (2) Congress does not pass a joint resolution disapproving the conveyance. A facility that generates hydropower marketed by a power marketing administration shall not be eligible for such conveyance. An entity that operates and maintains an eligible facility at the time Interior attempts to facilitate its conveyance shall have the right of first refusal to receive the conveyance. Criteria for determining whether facilities are eligible for title transfer shall include: (1) the transfer will not have an unmitigated significant effect on the environment, (2) the qualifying entity intends to use the property for substantially the same purposes the property is being used for at the time Interior evaluates the potential transfer, and (3) the qualifying entity agrees to provide the United States the equivalent of the present value of any repayment obligation or other income stream the United States derives from the assets to be transferred. No conveyance under this bill may adversely impact power rates or repayment obligations. Interior shall submit, as part of its annual budget submission to Congress: (1) a description of the actions taken to implement this bill, and (2) a list of conveyances made or initiated by Interior or a qualifying entity under this bill.