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[House Report 106-824]
[From the U.S. Government Publishing Office]

                                                                       
106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-824

======================================================================

 
          FORT PECK RESERVATION RURAL WATER SYSTEM ACT OF 2000

                                _______
                                

 September 7, 2000.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Young of Alaska, from the Committee on Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 1124]

      [Including cost estimate of the Congressional Budget Office]

      The Committee on Resources, to whom was referred the bill 
(H.R. 1124) to authorize construction of the Fort Peck 
Reservation Rural Water System in the State of Montana, and for 
other purposes, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Fort Peck Reservation Rural Water 
System Act of 2000''.

SEC. 2. PURPOSES.

  The purposes of this Act are--
          (1) to ensure a safe and adequate municipal, rural, and 
        industrial water supply for the residents of the Fort Peck 
        Indian Reservation in the State of Montana; and
          (2) to assist the citizens of Roosevelt, Sheridan, Daniels, 
        and Valley Counties in the State, outside the Fort Peck Indian 
        Reservation, in developing safe and adequate municipal, rural, 
        and industrial water supplies.

SEC. 3. DEFINITIONS.

  In this Act:
          (1)  Assiniboine and sioux rural water system.--The term 
        ``Assiniboine and Sioux Rural Water System'' means the rural 
        water system within the Fort Peck Indian Reservation authorized 
        by section 4.
          (2) Dry prairie rural water system.--The term ``Dry Prairie 
        Rural Water System'' means the rural water system authorized by 
        section 5 in the Roosevelt, Sheridan, Daniels, and Valley 
        Counties of the State.
          (3) Fort peck reservation rural water system.--The term 
        ``Fort Peck Reservation Rural Water System'' means the 
        Assiniboine and Sioux Rural Water System and the Dry Prairie 
        Rural Water System.
          (4) Fort peck tribes.--The term ``Fort Peck Tribes'' means 
        the Assiniboine and Sioux Indian Tribes within the Fort Peck 
        Indian Reservation.
          (5) Pick-sloan.--The term ``Pick-Sloan'' means the Pick-Sloan 
        Missouri River Basin Program (authorized by section 9 of the 
        Act entitled ``An Act authorizing the construction of certain 
        public works on rivers and harbors for flood control, and for 
        other purposes'', approved December 22, 1944 (commonly known as 
        the ``Flood Control Act of 1944'') (58 Stat. 891)).
          (6) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior.
          (7) State.--The term ``State'' means the State of Montana.

 SEC. 4. ASSINIBOINE AND SIOUX RURAL WATER SYSTEM.

  (a) Authorization.--The Secretary shall plan, design, construct, 
operate, maintain, and replace a municipal, rural, and industrial water 
system, to be known as the ``Assiniboine and Sioux Rural Water 
System'', as generally described in the report required by subsection 
(g)(2).
  (b) Components.--The Assiniboine and Sioux Rural Water System shall 
consist of--
          (1) pumping and treatment facilities located along the 
        Missouri River within the boundaries of the Fort Peck Indian 
        Reservation;
          (2) pipelines extending from the water treatment plant 
        throughout the Fort Peck Indian Reservation;
          (3) distribution and treatment facilities to serve the needs 
        of the Fort Peck Indian Reservation, including--
                  (A) public water systems in existence on the date of 
                enactment of this Act that may be purchased, improved, 
                and repaired in accordance with the cooperative 
                agreement entered into under subsection (c); and
                  (B) water systems owned by individual tribal members 
                and other residents of the Fort Peck Indian 
                Reservation;
          (4) appurtenant buildings and access roads;
          (5) all property and property rights necessary for the 
        facilities described in this subsection;
          (6) electrical power transmission and distribution facilities 
        necessary for services to Fort Peck Reservation Rural Water 
        System facilities; and
          (7) such other pipelines, pumping plants, and facilities as 
        the Secretary determines to be appropriate to meet the water 
        supply, economic, public health, and environmental needs of the 
        Fort Peck Indian Reservation, including water storage tanks, 
        water lines, and other facilities for the Fort Peck Tribes and 
        the villages, towns, and municipalities in the Fort Peck Indian 
        Reservation.
  (c) Cooperative Agreement.--
          (1) In general.--The Secretary shall enter into a cooperative 
        agreement with the Fort Peck Tribal Executive Board for 
        planning, designing, constructing, operating, maintaining, and 
        replacing the Assiniboine and Sioux Rural Water System.
          (2) Mandatory provisions.--The cooperative agreement under 
        paragraph (1) shall specify, in a manner that is acceptable to 
        the Secretary and the Fort Peck Tribal Executive Board--
                  (A) the responsibilities of each party to the 
                agreement for--
                          (i) needs assessment, feasibility, and 
                        environmental studies;
                          (ii) engineering and design;
                          (iii) construction;
                          (iv) water conservation measures; and
                          (v) administration of contracts relating to 
                        performance of the activities described in 
                        clauses (i) through (iv);
                  (B) the procedures and requirements for approval and 
                acceptance of the design and construction and for 
                carrying out other activities described in subparagraph 
                (A); and
                  (C) the rights, responsibilities, and liabilities of 
                each party to the agreement.
          (3) Optional provisions.--The cooperative agreement under 
        paragraph (1) may include provisions relating to the purchase, 
        improvement, and repair of water systems in existence on the 
        date of enactment of this Act, including systems owned by 
        individual tribal members and other residents of the Fort Peck 
        Indian Reservation.
          (4) Termination.--The Secretary may terminate a cooperative 
        agreement under paragraph (1) if the Secretary determines 
        that--
                  (A) the quality of construction does not meet all 
                standards established for similar facilities 
                constructed by the Secretary; or
                  (B) the operation and maintenance of the Assiniboine 
                and Sioux Rural Water System does not meet conditions 
                acceptable to the Secretary that are adequate to 
                fulfill the obligations of the United States to the 
                Fort Peck Tribes.
          (5) Transfer.--On execution of a cooperative agreement under 
        paragraph (1), in accordance with the cooperative agreement, 
        the Secretary may transfer to the Fort Peck Tribes, on a 
        nonreimbursable basis, funds made available for the Assiniboine 
        and Sioux Rural Water System under section 9.
  (d) Service Area.--The service area of the Assiniboine and Sioux 
Rural Water System shall be the area within the boundaries of the Fort 
Peck Indian Reservation.
  (e) Construction Requirements.--The components of the Assiniboine and 
Sioux Rural Water System shall be planned and constructed to a size 
that is sufficient to meet the municipal, rural, and industrial water 
supply requirements of the service area of the Fort Peck Reservation 
Rural Water System.
  (f) Title to Assiniboine and Sioux Rural Water System.--Title to the 
Assiniboine and Sioux Rural Water System shall be held in trust by the 
United States for the Fort Peck Tribes and shall not be transferred 
unless a transfer is authorized by an Act of Congress enacted after the 
date of enactment of this Act.
  (g) Limitation on Availability of Construction Funds.--The Secretary 
shall not obligate funds for construction of the Assiniboine and Sioux 
Rural Water System until--
          (1) the requirements of the National Environmental Policy Act 
        of 1969 (42 U.S.C. 4321 et seq.) are met with respect to the 
        Assiniboine and Sioux Rural Water System;
          (2) on or after the date that is 90 days after the date of 
        submission to Congress of a final engineering report approved 
        by the Secretary; and
          (3) the Secretary publishes a written finding that the water 
        conservation plan developed under section 7 includes prudent 
        and reasonable water conservation measures for the operation of 
        the Assiniboine and Sioux Rural Water System that have been 
        shown to be economically and financially feasible.
  (h) Technical Assistance.--The Secretary shall provide such technical 
assistance as is necessary to enable the Fort Peck Tribes to plan, 
design, construct, operate, maintain, and replace the Assiniboine and 
Sioux Rural Water System, including operation and management training.
  (i) Application of Indian Self-Determination Act.--Planning, design, 
construction, operation, maintenance, and replacement of the 
Assiniboine and Sioux Rural Water System within the Fort Peck Indian 
Reservation shall be subject to the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450 et seq.).
  (j) Cost Sharing.--
          (1) Construction.--The Federal share of the cost of 
        construction of the Assiniboine and Sioux Rural Water System 
        shall be 100 percent, and shall be funded through annual 
        appropriations to the Bureau of Reclamation.
          (2) Operation and maintenance.--The Federal share of the cost 
        of operation and maintenance of the Assiniboine and Sioux Rural 
        Water System shall be 100 percent, and shall be funded through 
        annual appropriations to the Bureau of Indian Affairs.

 SEC. 5. DRY PRAIRIE RURAL WATER SYSTEM.

  (a) Planning and Construction.--
          (1) Authorization.--The Secretary shall enter into a 
        cooperative agreement with Dry Prairie Rural Water Association 
        Incorporated (or any successor non-Federal entity) to provide 
        Federal funds for the planning, design, and construction of the 
        Dry Prairie Rural Water System in Roosevelt, Sheridan, Daniels, 
        and Valley Counties, Montana, outside the Fort Peck Indian 
        Reservation.
          (2) Use of federal funds.--
                  (A) Federal share.--The Federal share of the cost of 
                planning, design, and construction of the Dry Prairie 
                Rural Water System shall be not more than 76 percent, 
                and shall be funded with amounts appropriated from 
thereclamation fund. Such amounts shall not be returnable or 
reimbursable under the Federal reclamation laws.
                  (B) Cooperative agreements.--Federal funds made 
                available to carry out this section may be obligated 
                and expended only through a cooperative agreement 
                entered into under subsection (c).
  (b) Components.--The components of the Dry Prairie Rural Water System 
facilities on which Federal funds may be obligated and expended under 
this section shall include--
          (1) storage, pumping, interconnection, and pipeline 
        facilities;
          (2) appurtenant buildings and access roads;
          (3) all property and property rights necessary for the 
        facilities described in this subsection;
          (4) electrical power transmission and distribution facilities 
        necessary for service to Dry Prairie Rural Water System 
        facilities; and
          (5) other facilities customary to the development of rural 
        water distribution systems in the State, including supplemental 
        water intake, pumping, and treatment facilities.
  (c) Cooperative Agreement.--
          (1) In general.--The Secretary, with the concurrence of the 
        Assiniboine and Sioux Rural Water System Board, shall enter 
        into a cooperative agreement with Dry Prairie Rural Water 
        Association Incorporated to provide Federal assistance for the 
        planning, design, and construction of the Dry Prairie Rural 
        Water System.
          (2) Mandatory provisions.--The cooperative agreement under 
        paragraph (1) shall specify, in a manner that is acceptable to 
        the Secretary and Dry Prairie Rural Water Association 
        Incorporated--
                  (A) the responsibilities of each party to the 
                agreement for--
                          (i) needs assessment, feasibility, and 
                        environmental studies;
                          (ii) engineering and design;
                          (iii) construction;
                          (iv) water conservation measures; and
                          (v) administration of contracts relating to 
                        performance of the activities described in 
                        clauses (i) through (iv);
                  (B) the procedures and requirements for approval and 
                acceptance of the design and construction and for 
                carrying out other activities described in subparagraph 
                (A); and
                  (C) the rights, responsibilities, and liabilities of 
                each party to the agreement.
  (d) Service Area.--
          (1) In general.--Except as provided in paragraph (2), the 
        service area of the Dry Prairie Rural Water System shall be the 
        area in the State--
                  (A) north of the Missouri River;
                  (B) south of the border between the United States and 
                Canada;
                  (C) west of the border between the States of North 
                Dakota and Montana; and
                  (D) east of the western line of range 39 east.
          (2) Fort peck indian reservation.--The service area shall not 
        include the area inside the Fort Peck Indian Reservation.
  (e) Limitation on Availability of Construction Funds.--The Secretary 
shall not obligate funds for construction of the Dry Prairie Rural 
Water System until--
          (1) the requirements of the National Environmental Policy Act 
        of 1969 (42 U.S.C. 4321 et seq.) are met with respect to the 
        Dry Prairie Rural Water System;
          (2) on or after the date that is 90 days after the date of 
        submission to Congress of a final engineering report approved 
        by the Secretary; and
          (3) the Secretary publishes a written finding that the water 
        conservation plan developed under section 7 includes prudent 
        and reasonable water conservation measures for the operation of 
        the Dry Prairie Rural Water System that have been shown to be 
        economically and financially feasible.
  (f) Interconnection of Facilities.--The Secretary shall--
          (1) interconnect the Dry Prairie Rural Water System with the 
        Assiniboine and Sioux Rural Water System; and
          (2) provide for the delivery of water to the Dry Prairie 
        Rural Water System from the Missouri River through the 
        Assiniboine and Sioux Rural Water System.
  (g) Limitation on Use of Federal Funds.--
          (1) In general.--The operation, maintenance, and replacement 
        expenses associated with water deliveries from the Assiniboine 
        and Sioux Rural Water System to the Dry Prairie Rural Water 
        System shall not be a Federal responsibility and shall be borne 
        by the Dry Prairie Rural Water System.
          (2) Federal funds.--The Secretary may not obligate or expend 
        any Federal funds for the operation, maintenance, or 
        replacement of the Dry Prairie Rural Water System.
  (h) Title to Dry Prairie Rural Water System.--Title to the Dry 
Prairie Rural Water System shall be held by Dry Prairie Rural Water 
Association, Incorporated.

 SEC. 6. USE OF PICK-SLOAN POWER.

  (a) In General.--From power designated for future irrigation and 
drainage pumping for the Pick-Sloan Missouri Basin program, the Western 
Area Power Administration shall make available, at the firm power rate, 
the capacity and energy required to meet the pumping and incidental 
operational requirements of the Fort Peck Reservation Rural Water 
System.
  (b) Qualification to Use Pick-Sloan Power.--For as long as the Fort 
Peck Reservation rural water supply system operates on a not-for-profit 
basis, the portions of the water supply project constructed with 
assistance under this Act shall be eligible to receive firm power from 
the Pick-Sloan Missouri Basin program established by section 9 of the 
Act of December 22, 1944 (chapter 665; 58 Stat. 887), popularly known 
as the Flood Control Act of 1944.
  (c) Recovery of Expenses.--
          (1) Assiniboine and sioux rural water system.--In the case of 
        the Assiniboine and Sioux Rural Water System, the Western Area 
        Power Administration shall recover expenses associated with 
        power purchases under subsection (a) through a separate power 
        charge sufficient to cover such expenses. Such charge shall be 
        paid fully through the annual appropriations to the Bureau of 
        Indian Affairs.
          (2) Dry prairie rural water system.--In the case of the Dry 
        Prairie Rural Water System, the Western Area Power 
        Administration shall recover expenses associated with power 
        purchases under subsection (a) through a separate power charge 
        sufficient to cover expenses. Such charge shall be paid fully 
        by the Dry Prairie Rural Water System.
  (d) Additional Power.--If power in addition to that made available 
under subsection (a) is required to meet the pumping requirements of 
the Fort Peck Reservation Rural Water System, the Administrator of the 
Western Area Power Administration may purchase the necessary additional 
power at the best available rate. The costs of such purchases shall be 
reimbursed to the Administrator according to the terms identified in 
subsection (c).

 SEC. 7. WATER CONSERVATION PLAN.

  (a) In General.--The Fort Peck Tribes and Dry Prairie Rural Water 
Association Incorporated shall develop a water conservation plan 
containing--
          (1) a description of water conservation objectives;
          (2) a description of appropriate water conservation measures; 
        and
          (3) a time schedule for implementing the measures and this 
        Act to meet the water conservation objectives.
  (b) Purpose.--The water conservation plan under subsection (a) shall 
be designed to ensure that users of water from the Assiniboine and 
Sioux Rural Water System and the Dry Prairie Rural Water System will 
use the best practicable technology and management techniques to 
conserve water.
  (c) Public Participation.--Section 210(c) of the Reclamation Reform 
Act of 1982 (43 U.S.C. 390jj(c)) shall apply to an activity authorized 
under this Act.

 SEC. 8. WATER RIGHTS.

  (a) In General.--This Act does not--
          (1) impair the validity of or preempt any provision of State 
        water law or any interstate compact governing water;
          (2) alter the right of any State to any appropriated share of 
        the water of any body of surface or ground water, whether 
        determined by any past or future interstate compact or by any 
        past or future legislative or final judicial allocation;
          (3) preempt or modify any Federal or State law or interstate 
        compact concerning water quality or disposal;
          (4) confer on any non-Federal entity the authority to 
        exercise any Federal right to the water of any stream or to any 
        ground water resource;
          (5) affect any right of the Fort Peck Tribes to water, 
        located within or outside the external boundaries of the Fort 
        Peck Indian Reservation, based on a treaty, compact, executive 
        order, agreement, Act of Congress, aboriginal title, the 
        decision in Winters v. United States, 207 U.S. 564 (1908) 
        (commonly known as the ``Winters Doctrine''), or other law; or
          (6) validate or invalidate any assertion of the existence, 
        nonexistence, or extinguishment of any water right held or 
        Indian water compact entered into by the Fort Peck Tribes or by 
        any other Indian tribe or individual Indian under Federal or 
        State law.
  (b) Offset Against Claims.--Any funds received by the Fort Peck 
Tribes pursuant to this Act shall be used to offset any claims for 
money damages against the United States by the Fort Peck Tribes, 
existing on the date of the enactment of this Act, for water rights 
based on a treaty, compact, executive order, agreement, Act of 
Congress, aboriginal title, the decision in Winters v. United States, 
207 U.S. 564 (1908), or other law.

 SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

  (a) Assiniboine and Sioux Rural Water System.--There are authorized 
to be appropriated--
          (1) to the Bureau of Reclamation over a period of 10 fiscal 
        years, $124,000,000 for the planning, design, and construction 
        of the Assiniboine and Sioux Rural Water System; and
          (2) to the Bureau of Indian Affairs such sums as are 
        necessary for the operation and maintenance of the Assiniboine 
        and Sioux Rural Water System.
  (b) Dry Prairie Rural Water System.--There is authorized to be 
appropriated, over a period of 10 fiscal years, $51,000,000 for the 
planning, design, and construction of the Dry Prairie Rural Water 
System.
  (c) Cost Indexing.--The funds authorized to be appropriated may be 
increased or decreased by such amounts as are justified by reason of 
ordinary fluctuations in development costs incurred after October 1, 
1998, as indicated by engineering cost indices applicable for the type 
of construction involved.

                          PURPOSE OF THE BILL

    The purpose of H.R. 1124 is to authorize construction of 
the Fort Peck Reservation Rural water System in the State of 
Montana, and for other purposes.

                               BACKGROUND

    The Fort Peck Reservation is located in northeastern 
Montana and includes large parts of Roosevelt and Valley 
Counties. The Reservation is approximately 100 miles long by 40 
miles wide and lies along the Missouri River about 20 miles 
south of the Canadian border. The Reservation is home to the 
Assiniboine and Sioux Tribes and about 6,000 of the 11,000 
enrolled members live on the Reservation, which comprises 
slightly over two million acres. Approximately 400,000 acres 
(19 percent) are in Tribal ownership, about 543,000 (26 
percent) are owned by Tribal members, and 1,100,000 (55 
percent) are held in fee by non-Indians.
    The Fort Peck Reservation suffers from the same problem of 
inadequate quantity and quality of water supplies as do most 
areas in the High Plains. The Bureau of Reclamation 
participated in a needs assessment which documented that 
groundwater supplies did not meet Environmental Protection 
Agency requirements and that available supplies were not 
adequate. The Indian Health Service and the Tribal Health 
Office have issued several public health alerts. The Bureau of 
Reclamation also participated in a feasibility study that 
included review of the use of Missouri River water as a supply 
source for a Reservation-wide distribution system. The adjacent 
communities have the same problems, and the legislation 
contemplates that the Reservation system would be sized to 
connect to a distribution system for the surrounding 
communities. All costs of the Reservation system, including 
operations and maintenance would be a federal responsibility. 
The costs associated with the operation and maintenance of the 
system for the Tribe shall be funded through annual 
appropriations to the Bureau of Indian Affairs. Federal costs 
for the Dry Prairie system shall not exceed 76 percent, and the 
federal government may not expend any federal funds for 
operations, maintenance or replacement costs for the Dry 
Prairie system.

                            COMMITTEE ACTION

    H.R. 1124 was introduced on March 16, 1999, by Congressman 
Rick Hill (R-MT). The Senate companion legislation is S. 624, 
introduced on the same day by Senator Conrad Burns (R-MT). The 
bill was referred to the Committee on Resources, and within the 
Committee to the Subcommittee on Water and Power. On July 26, 
2000 the Resources Committee met to consider the bill. The 
Subcommittee on Water and Power was discharged from 
consideration of the measure by unanimous consent. No 
amendments were offered and the bill was ordered favorably 
reported to the House of Representatives by unanimous consent.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    The short title of the bill is the ``Fort Peck Reservation 
Rural Water System Act of 2000''.

Section 2. Purposes

    This section sets forth the purposes for the legislation.

Section 3. Definitions

    This section provides definitions of terms used in the 
bill, including ``Assiniboine and Sioux Rural Water System'', 
``Dry Prairie Rural Water System'', ``Fort Peck Reservation 
Rural Water System'', and ``Fort Peck Tribes'', among others.

Section 4. Assiniboine and Sioux Rural Water System

    This section authorizes the Secretary of the Interior to 
plan, design, construct, operate, maintain and replace a 
municipal, rural, and industrial water system for the Fort Peck 
Reservation. This section describes the components of the 
system, provides for a cooperative agreement between the 
Secretary and the Fort Peck Tribes to define the 
responsibilities of each for the planning, design, 
construction, and operation and maintenance, and provides that 
title to the system shall be held in trust by the United States 
for the Fort Peck Tribes. The Committee expects that the Fort 
Peck Tribes will charge operation, maintenance and replacement 
costs for the water delivered to the Dry Prairie Rural Water 
System, but will not charge for access to water, use of water 
rights held by the Tribes, or for other purposes. The federal 
share of the operation of maintenance shall be 100 percent, and 
shall be funded through annual appropriations to the Bureau of 
Indian Affairs.

Section 5. Dry Prairie Rural Water System

    This section authorizes the Secretary of the Interior to 
enter into a cooperative agreement with the Dry Prairie Rural 
Water Association Incorporated to provide federal funds for the 
planning, design, and construction of the Dry Prairie Rural 
Water System. This section limits the federal share to not more 
than 76 percent. This section requires that the amounts 
appropriated come from the Reclamation Fund. In addition, the 
section describes the components of the system, the cooperative 
agreement, the service area of the system, and limitations on 
availability of construction funds. The Committee expects that 
the Secretary shall provide technical support regarding the 
cooperative agreement between the Fort Peck and Dry Prairie 
Systems regarding the interconnection of facilities.

Section 6. Use of Pick-Sloan Power

    This section provides that the Western Area Power 
Administration shall make available power which was originally 
designated for future irrigation and drainage for the Pick-
Sloan Missouri River Basin to be used instead for pumping, 
treatment, and incidental operational requirements of both 
water systems at the firm power rate. The Committee expects 
that additional power will be provided by the Western Area 
Power Administration outside the months of April through 
October, when futureirrigation and drainage power is not 
available, and such additional power, when not available from Western 
Area Power Administration, may be purchased by the Western Area Power 
Administration at the best available rate. This section also provides 
conditions for the use of such capacity and energy. The Committee 
expects that the capacity and energy marketed by the Western Area Power 
Administration to the Assiniboine and Sioux Rural Water System and to 
the Dry Prairie Rural Water System will be delivered through a 
preference power entity.

Section 7. Water conservation plan

    This section requires that the Fort Peck Tribes and the Dry 
Prairie Rural Water Association Incorporated shall develop a 
water conservation plan and describes the components of that 
plan.

Section 8. Water rights

    This section addresses water rights issues. The Committee 
expects that any funds received by the Tribe under this bill 
shall be used to offset any claims for money damages against 
the United States by the Fort Peck Tribes for water rights 
based on a treaty, compact, executive order, agreement, Act of 
Congress, aboriginal title, the decision in Winters versus 
United States, or other law.

Section 9. Authorization of appropriations

    This section authorizes $124 million over a period of 10 
fiscal years for the planning, design, and construction of the 
Assiniboine and Sioux Rural Water System and such sums as 
necessary for operation, maintenance and replacement and power 
costs. This section also authorizes $51,000,000 over a period 
of 10 fiscal years for the planning, design, and construction 
of the Dry Prairie Rural Water System. Cost indexing is 
permitted.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Resources' oversight findings and recommendations 
are reflected in the body of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact this bill.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(3)(B) 
of that rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    3. Government Reform Oversight Findings. Under clause 
3(c)(4) of rule XIII of the Rules of the House of 
Representatives, the Committee has received no report of 
oversight findings and recommendations from the Committee on 
Government Reform on this bill.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for this bill from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 30, 2000.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1124, the Fort 
Peck Reservation Rural Water System Act of 2000.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Barry Blom 
(for federal costs), and Theresa Gullo (for the state and local 
impact).
            Sincerely,
                                           Steven Lieberman
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 1124--Fort Peck Reservation Rural Water System Act of 2000

    Summary: H.R. 1124 would authorize appropriations for a 
water supply system serving the Fort Peck Indian Reservation 
and the Dry Prairie Rural Water System in Montana. This bill 
would authorize a total of $175 million (in 2000 dollars) over 
a 10-year period for the construction of the system and would 
authorize such sums as may be necessary for the operation and 
maintenance of the facilities on the reservation. It would 
direct the Secretary of the Interior to enter into cooperative 
agreements with the Fort Peck Tribal Executive Board and the 
Dry Prairie Rural Water Association that would allow those 
entities to implement the project if they comply with certain 
terms and conditions in the bill. All costs associated with the 
tribal portion of the project would be the responsibility of 
the Bureau of Reclamation. The Dry Prairie Rural Water System 
would be required to pay for operation and maintenance of its 
portion of the system but would not be obligated to repay the 
federal contribution to the project.
    Adjusting for inflation, CBO estimates that implementing 
the bill would require appropriations of $207 million over the 
2001-2010 period and additional amounts thereafter. We estimate 
that $66 million of this total would be spent over the 2001-
2005 period and $141 million over fiscal years 2006 through 
2010. Outlays for operation and maintenance costs in subsequent 
years would average about $2 million a year (in 2000 dollars) 
and would continue over the life of the tribal water system, or 
through at least fiscal year 2050. Because H.R. 1124 would not 
affect direct spending or receipts, pay-as-you-go procedures 
would not apply.
    H.R. 1124 contains an intergovernmental mandate as defined 
in the Unfunded Mandates Reform Act (UMRA). CBO estimates that 
complying with this mandate would impose no significant costs 
on state, local, or tribal governments, so the threshold 
established by that act ($55 million in 2000, adjusted annually 
for inflation) would not be exceeded. The bill contains no new 
private-sector mandates as defined in UMRA.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 1124 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and environment).

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2001     2002     2003     2004     2005
----------------------------------------------------------------------------------------------------------------
                                  Changes in Spending Subject to Appropriation

Estimated Authorization Level                                              3        5       15       21       22
Estimated Outlays..................................................        3        5       15       21       22
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that 
appropriations would be provided as needed to design, 
construct, and operate this water supply system. We also assume 
that the Secretary would complete the cooperative agreements 
with the Fort Peck Tribes and the Dry Prairie Rural Water 
Association in fiscal year 2001.
    Our estimate of project costs is based on a preliminary 
construction schedule prepared by the tribes and the 
association that is consistent with the amounts and conditions 
specified in H.R. 1124. CBO adjusted those estimates to reflect 
the impact of anticipated inflation during the time between the 
authorization and appropriation of project funding. We expect 
that outlays would occur as funds are obligated because, under 
the bill, project implementation would be the responsibility of 
the tribes and the association.
    Pay-as-you-go considerations: None.
    Estimated impact on State, local, and tribal governments: 
H.R. 1124 contains an intergovernmental mandate as defined in 
UMRA. CBO estimates that complying with this mandate would 
impose no significant costs on state, local, or tribal 
governments, so the threshold established by that act ($55 
million in 2000, adjusted annually for inflation) would not be 
exceeded.

Mandates

    The bill would require the Fort Peck Tribes and the Dry 
Prairie Rural Water Association (a public entity) to develop a 
water conservation plan. This requirement would be an 
intergovernmental mandate as defined in UMRA. Because these 
organizations have already developed a plan, however, complying 
with this mandate would result in no significant additional 
costs.

Other impacts

    The Dry Prairie Rural Water Association and the state of 
Montana would probably incur some additional costs as a result 
of this bill's enactment, but these costs would be voluntary. 
H.R. 1124 would require nonfederal participants to pay part of 
the cost of constructing the Dry Prairie system and to pay all 
the costs of operating and maintaining this system.
    Estimated impact on the private sector: This bill contains 
no new private-sector mandates as defined in UMRA.
    Previous CBO estimates: On October 8, 1999, CBO transmitted 
a cost estimate for S. 624, the Fort Peck Reservation Rural 
Water System Act of 1999, as ordered reported by the Senate 
Committee on Energy and Natural Resources on September 22, 
1999. H.R. 1124 and S. 624 are very similar, and the costs of 
the two versions of the legislation are nearly identical.
    On August 30, 2000, CBO transmitted a cost estimate for S. 
624 as ordered reported by the House Committee on Resources on 
July 26, 2000. The House version of S. 624 and H.R. 1124 are 
identical, as are the cost estimates.
    Estimate prepared by: Federal Costs: Barry Blom; Impact on 
State, Local, and Tribal Governments: Theresa Gullo; Impact on 
Private Sector: Lauren Marks.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates, as defined in 
Public Law 104-4.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    This bill is not intended to preempt any State, local or 
tribal law.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.

                                
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