39–010 

Calendar No. 393 

113TH CONGRESS REPORT " ! SENATE 2d Session 113–167 

AUTHORIZED RURAL WATER PROJECTS COMPLETION ACT 

MAY 22, 2014.—Ordered to be printed 

Ms. LANDRIEU, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany S. 715] 

The Committee on Energy and Natural Resources, to which was 

referred the bill (S. 715) to authorize the Secretary of the Interior 

to use designated funding to pay for construction of authorized 

rural water projects, and for other purposes, having considered the 

same, reports favorably thereon with an amendment and recommends that the bill, as amended, do pass. 

The amendment is as follows: 

Strike out all after the enacting clause and insert in lieu thereof 

the following: 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Authorized Rural Water Projects 

Completion Act’’. 

(b) TABLE OF CONTENTS.—The table of contents of this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

TITLE I—RECLAMATION RURAL WATER CONSTRUCTION AND 

SETTLEMENT IMPLEMENTATION FUND 

Sec. 101. Establishment. 

Sec. 102. Accounts. 

Sec. 103. Deposits to Fund. 

Sec. 104. Expenditures from Fund. 

Sec. 105. Investments of amounts. 

Sec. 106. Transfers of amounts. 

Sec. 107. Transferability between accounts. 

Sec. 108. Termination. 

TITLE II—RURAL WATER PROJECTS 

Sec. 201. Rural water projects. 

Sec. 202. Restrictions. 


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TITLE III—RECLAMATION INFRASTRUCTURE AND SETTLEMENT 

IMPLEMENTATION 

Sec. 301. Reclamation infrastructure and settlement implementation. 

SEC. 2. DEFINITIONS. 

In this Act: 

(1) FUND.—The term ‘‘Fund’’ means the Reclamation Rural Water Construction and Settlement Implementation Fund established by section 101. 

(2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has the meaning given the term 

in section 4 of the Indian Self-Determination and Education Assistance Act (25 

U.S.C. 450b). 

(3) RURAL WATER PROJECT.—The term ‘‘rural water project’’ means a project 

that is designed to provide domestic, industrial, municipal, or residential water 

to a small community or group of small communities, including Indian tribes 

and tribal organizations. 

(4) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of the Interior, 

acting through the Commissioner of Reclamation. 

TITLE I—RECLAMATION RURAL WATER CONSTRUCTION AND SETTLEMENT IMPLEMENTATION FUND 

SEC. 101. ESTABLISHMENT. 

There is established in the Treasury of the United States a fund, to be known 

as the ‘‘Reclamation Rural Water Construction and Settlement Implementation 

Fund’’, consisting of— 

(1) such amounts as are deposited in the Fund under section 103; and 

(2) any interest earned on investment of amounts in the Fund under section 

105. 

SEC. 102. ACCOUNTS. 

Within the Fund, there are established the following accounts: 

(1) Rural Water Project Account. 

(2) Indian Irrigation Account. 

(3) Reclamation Infrastructure and Settlement Implementation Account. 

SEC. 103. DEPOSITS TO FUND. 

(a) IN GENERAL.—For each of fiscal years 2014 through 2035, the Secretary of the Treasury shall deposit in the Fund $150,000,000 of the revenues that would otherwise be deposited for the fiscal year in the reclamation fund established by the first 

section of the Act of June 17, 1902 (32 Stat. 388, chapter 1093), of which— (1) $80,000,000 for each of the fiscal years shall be deposited in the Rural 

Water Project Account established under section 102(1); (2) $35,000,000 for each of the fiscal years shall be deposited in the Indian 

Irrigation Account established under section 102(2); and (3) $35,000,000 for each of the fiscal years shall be deposited in the Reclamation Infrastructure and Settlement Implementation Account established under 

section 102(3). 

(b) AVAILABILITY OF AMOUNTS.—Amounts deposited in the Fund under subsection 

(a) shall be used, subject to appropriation, to carry out this Act. 

SEC. 104. EXPENDITURES FROM FUND. 

(a) IN GENERAL.—Subject to subsection (b), for each of fiscal years 2014 through 

2035, the Secretary may expend from the Fund, in accordance with this Act, not 

more than the sum of— 

(1) $150,000,000, to be allocated from the amounts in the accounts specified 

in section 102; and 

(2) the amount of interest accrued in the Fund within each account for the 

fiscal year in which the expenditures are made, with the interest accrued within 

each account used only for expenditures from that account. 

(b) ADDITIONAL EXPENDITURES.— (1) IN GENERAL.—The Secretary may expend more than $150,000,000 for any 

fiscal year referred to in subsection (a) if the additional amounts are available 

in the Fund as a result of a failure of the Secretary to expend all of the amounts 

available under subsection (a) in 1 or more prior fiscal years. 

(2) RETENTION IN ACCOUNTS.—Any additional amounts referred to in paragraph (1) shall— 

(A) be retained within the account to which the amounts were designated; 


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(B) accrue interest for the designated account in accordance with this 

title; and 

(C) only be expended for the purposes for which expenditures from the 

designated accounts are authorized. 

SEC. 105. INVESTMENTS OF AMOUNTS. 

(a) IN GENERAL.—The Secretary shall invest such portion of the Fund as is not, 

in the judgment of the Secretary, required to meet current withdrawals. 

(b) CREDITS TO FUND.—The interest on, and the proceeds from the sale or redemption of, any obligations held in the Fund shall be credited to, and form a part of, 

the Fund. 

SEC. 106. TRANSFERS OF AMOUNTS. 

(a) IN GENERAL.—The amounts required to be transferred to the Fund under this 

title shall be transferred at least monthly from the general fund of the Treasury to 

the Fund on the basis of estimates made by the Secretary of the Treasury. 

(b) ADJUSTMENTS.—Proper adjustment shall be made in amounts subsequently 

transferred to the extent prior estimates are in excess of or less than the amounts 

required to be transferred. 

SEC. 107. TRANSFERABILITY BETWEEN ACCOUNTS. 

(a) TRANSFERABILITY OF IRRIGATION FUNDS.—No sooner than fiscal year 2023, if 

the Secretary determines that there are no further deferred maintenance needs of 

eligible Indian irrigation projects, the Secretary may expend amounts and any interest accrued in the Indian Irrigation Account established by section 102(2) on any 

expenditure authorized under section 301 from the Reclamation Infrastructure and 

Settlement Implementation Account established by section 102(3). 

(b) TRANSFERABILITY OF WATER SETTLEMENT FUNDS.—No sooner than fiscal year 

2023, if the Secretary determines that there are no further needs of Indian tribes 

under section 301, the Secretary may expend amounts and any interest accrued in 

the Reclamation Infrastructure and Settlement Implementation Account established 

by section 102(3) on any expenditure authorized under sections 401 through 406 

from the Indian Irrigation Account established by section 102(2). 

SEC. 108. TERMINATION. 

On September 30, 2035— 

(1) the Fund shall terminate; and 

(2) the unexpended and unobligated balance of the Fund shall be transferred 

to the reclamation fund established by the first section of the Act of June 17, 

1902 (32 Stat. 388, chapter 1093). 

TITLE II—RURAL WATER PROJECTS 

SEC. 201. RURAL WATER PROJECTS. 

Subject to section 202, for each of fiscal years 2014 through 2035, the Secretary 

may use not less than $80,000,000 of the amounts available in the Rural Water 

Project Account established under section 102(1) to complete construction of rural 

water projects— 

(1) authorized to be carried out by the Secretary on or before the date of enactment of this Act; or 

(2) for which— 

(A) pursuant to section 106(e) of the Rural Water Supply Act of 2006 (43 

U.S.C. 2405(e)), a feasibility study has been submitted to the Secretary by 

September 30, 2012; and 

(B) an Act of Congress after the date of enactment of this Act has authorized the construction of the project. 

SEC. 202. RESTRICTIONS. 

(a) NO OPERATION AND MAINTENANCE COSTS.—The Secretary shall not use any 

amounts from the Fund to pay for operation and maintenance costs of an authorized 

rural water project. 

(b) CONDITIONS.—The Secretary shall not expend any amounts from the Fund to 

carry out this title until the date on which the Secretary develops— 

(1) programmatic goals to carry out this title that— 

(A) would enable the completion of construction of the authorized rural 

water projects as expeditiously as practicable; and 

(B) reflect— 

(i) the goals and priorities identified in the laws authorizing the authorized rural water projects; and 


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(ii) the goals of the Reclamation Rural Water Supply Act of 2006 (43 

U.S.C. 2401 et seq.); and 

(2) funding prioritization criteria to serve as a methodology for distributing 

funds under this title that take into account— 

(A) an evaluation of the urgent and compelling need for potable water 

supplies in the affected rural and tribal communities; 

(B) the status of the current stages of completion of the authorized rural 

water project; 

(C) the financial needs of the affected rural and tribal communities; 

(D) the potential economic benefits of the expenditures on job creation 

and general economic development in the affected rural and tribal communities; 

(E) the ability of the authorized rural water project to address regional 

and watershed level water supply needs; 

(F) the ability of the authorized rural water project— 

(i) to minimize water and energy consumption; and 

(ii) to encourage the development of renewable energy resources, such 

as wind, solar, and hydropower elements; 

(G) the need for the authorized rural water project to address— 

(i) the needs of Indian tribes and members of Indian tribes; and 

(ii) other community needs or interests; and 

(H) such other factors as the Secretary determines to be appropriate to 

prioritize the use of available funds. 

TITLE III—RECLAMATION INFRASTRUCTURE 

AND SETTLEMENT IMPLEMENTATION 

SEC. 301. RECLAMATION INFRASTRUCTURE AND SETTLEMENT IMPLEMENTATION. 

Consistent with section 104, for each of fiscal years 2014 through 2035, the Secretary shall use not less than $35,000,000, plus accrued interest, of the amounts authorized to be expended from the Reclamation Infrastructure and Settlement Implementation Account established under section 102(3)— 

(1) to provide compensation authorized under an Act of Congress to extinguish or otherwise resolve all monetary claims of an Indian tribe against the 

United States relating to the continued and past use of the land of the Indian 

tribe by the United States for the generation of hydropower; or 

(2) to complete construction, planning, and design of projects and implement 

provisions authorized under one or more Acts of Congress that— 

(A) settle or otherwise resolve, in whole or in part, litigation involving the 

United States and the rights of one or more federally recognized Indian 

tribes to access, use, or manage water resources; or 

(B) implement agreements approved by Congress pursuant to which one 

or more federally recognized Indian tribes agree to some limitation on the 

exercise of rights or claims to access, use, or manage water resources. 

TITLE IV—REPAIR, REPLACEMENT, AND MAINTENANCE OF CERTAIN INDIAN IRRIGATION 

PROJECTS 

SEC. 401. REPAIR, REPLACEMENT, AND MAINTENANCE OF CERTAIN INDIAN IRRIGATION 

PROJECTS. 

(a) IN GENERAL.—The Secretary shall establish a program to address the deferred 

maintenance needs of Indian irrigation projects that— 

(1) create risks to public or employee safety or natural or cultural resources; 

and 

(2) unduly impede the management and efficiency of the Indian irrigation program. 

(b) FUNDING.—Consistent with section 104, of the amounts authorized to be expended from the Indian Irrigation Account established under section 102(2), the Secretary shall use or transfer to the Bureau of Indian Affairs not less than 

$35,000,000, plus accrued interest, for each of fiscal years 2014 through 2035 to 

carry out maintenance, repair, and replacement activities for 1 or more of the Indian irrigation projects described in section 402 (including any structures, facilities, 

equipment, or vehicles used in connection with the operation of those projects). 


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SEC. 402. ELIGIBLE PROJECTS. 

The projects eligible for funding under section 401(b) are the Indian irrigation 

projects in the western United States that, on the date of enactment of this Act— 

(1) are owned by the Federal Government, as listed in the Federal inventory 

required by Executive Order 13327 (40 U.S.C. 121 note; relating to Federal real 

property asset management); 

(2) are managed by the Bureau of Indian Affairs (including projects managed 

under contracts or compacts pursuant to the Indian Self-Determination and 

Education Assistance Act (25 U.S.C. 450 et seq.); and 

(3) have deferred maintenance documented by the Bureau of Indian Affairs. 

SEC. 403. REQUIREMENTS AND CONDITIONS. 

Not later than 180 days after the date of enactment of this Act and as a precondition to amounts being expended from the Fund to carry out this title, the Secretary of the Interior, in consultation with the Assistant Secretary for Indian Affairs, the Commissioner of the Bureau of Reclamation, and representatives of affected Indian tribes, shall develop and submit to Congress— 

(1) programmatic goals to carry out this title that— 

(A) would enable the completion of repairing, replacing, improving, or 

performing maintenance on projects as expeditiously as possible; 

(B) facilitate or improve the ability of the Bureau of Indian Affairs to 

carry out the mission of the Bureau of Indian Affairs in operating a project; 

and 

(C) ensure that the results of government-to-government consultation required under section 405 be addressed; and 

(2) funding prioritization criteria to serve as a methodology for distributing 

funds under this title, that take into account— 

(A) the extent to which deferred maintenance of qualifying irrigation 

projects poses a threat to public or employee safety or health; 

(B) the extent to which deferred maintenance poses a threat to natural 

or cultural resources; 

(C) the extent to which deferred maintenance poses a threat to the ability 

of the Bureau of Indian Affairs to carry out the mission of the Bureau of 

Indian Affairs in operating the project; 

(D) the extent to which repairing, replacing, improving, or performing 

maintenance on a facility or structure will— 

(i) improve public or employee safety, health, or accessibility; 

(ii) assist in compliance with codes, standards, laws, or other requirements; 

(iii) address unmet needs; and 

(iv) assist in protecting natural or cultural resources; 

(E) the methodology of the rehabilitation priority index of the Secretary, 

as in effect on the date of enactment of this Act; 

(F) the potential economic benefits of the expenditures on job creation 

and general economic development in the affected tribal communities; 

(G) the ability of the qualifying project to address tribal, regional, and 

watershed level water supply needs; and 

(H) such other factors as the Secretary determines to be appropriate to 

prioritize the use of available funds that are, to the fullest extent practicable, consistent with tribal and user recommendations received pursuant 

to the consultation and input process under section 405. 

SEC. 404. STUDY OF INDIAN IRRIGATION PROGRAM AND PROJECT MANAGEMENT. 

(a) TRIBAL CONSULTATION AND USER INPUT.—Before beginning to conduct the 

study required under subsection (b), the Secretary of the Interior shall— 

(1) consult with the Indian tribes that have jurisdiction over the land on 

which an irrigation project eligible to receive funding under section 402 is located; and 

(2) solicit and consider the input, comments, and recommendations of the 

landowners served by the irrigation project. 

(b) STUDY.—Not later than 2 years after the date of enactment of this Act, the 

Secretary of the Interior, acting through the Assistant Secretary for Indian Affairs, 

shall complete a study that evaluates options for improving programmatic and 

project management and performance of irrigation projects managed and operated 

in whole or in part by the Bureau of Indian Affairs. 

(c) REPORT.—On completion of the study under subsection (b), the Secretary of the 

Interior, acting through the Assistant Secretary for Indian Affairs, shall submit to 

the Committees on Energy and Natural Resources and Indian Affairs of the Senate 

and the Committee on Natural Resources of the House of Representatives a report 

that— 


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(1) describes the results of the study; and 

(2) includes recommendations for improving programmatic and project management and performance in each qualifying project area and for the program 

as a whole. 

(d) FUNDING.—Of the amounts authorized to be expended from the Indian Irrigation Account established under section 102(2), $1,000,000 shall be made available 

during fiscal year 2014 to carry out this section, to remain available until expended. 

SEC. 405. TRIBAL CONSULTATION AND USER INPUT. 

Before expending funds on an Indian irrigation project pursuant to section 401, 

the Secretary of the Interior shall— 

(1) consult with the Indian tribe that has jurisdiction over the land on which 

an irrigation project eligible to receive funding under section 402 is located; and 

(2) solicit and consider the input, comments, and recommendations of the 

landowners served by the irrigation project. 

SEC. 406. ALLOCATION AMONG PROJECTS. 

(a) IN GENERAL.—Subject to subsection (b), to the maximum extent practicable, 

the Secretary shall ensure that, for each of fiscal years 2014 through 2035, each Indian irrigation project eligible for funding under section 402 that has critical maintenance needs receives part of the funding under section 401 to address critical 

maintenance needs. 

(b) PRIORITY.—In allocating amounts under section 401(b), in addition to considering the funding priorities described in section 403, the Secretary shall give priority to Indian irrigation projects for which funding has not been made available 

during the 15-year period ending on the day before the date of enactment of this 

Act under any other Act of Congress that expressly identifies the Indian irrigation 

project or the Indian reservation of the project to address the deferred maintenance, 

repair, or replacement needs of the Indian irrigation project. 

(c) CAP ON FUNDING.— 

(1) IN GENERAL.—Subject to paragraph (2), in allocating amounts under section 401(b), the Secretary shall allocate not more than $15,000,000 to any individual Indian irrigation project described in section 402 during any consecutive 

3-year period. 

(2) EXCEPTION.—Notwithstanding the cap described in paragraph (1), if the 

full amount under section 401(b) cannot be fully allocated to eligible irrigation 

projects because the only remaining activities authorized in section 401(b) are 

for irrigation projects that would exceed the cap described in paragraph (1), the 

Secretary may allocate the remaining funds to eligible irrigation projects in accordance with this title. 

(d) BASIS OF FUNDING.—Any amounts made available under this section shall be 

nonreimbursable. 

(e) APPLICABILITY OF ISDEAA.—The Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.) shall apply to activities carried out under this 

section. 

PURPOSE

The purpose of S. 715, as ordered reported, is to authorize the 

Secretary of the Interior to use designated funding to pay for construction of authorized rural water projects, implementation of Indian water settlements, and deferred maintenance of Indian irrigation projects. 

BACKGROUND AND NEED

Safe and reliable drinking water supplies are not available to 

millions of Americans, particularly in rural America. Many rural 

areas do not have the capital or the bonding capacity to pay for 

outlays of new water infrastructure or to upgrade deteriorating infrastructure. A 1995 assessment conducted by the Department of 

Agriculture found over one million people in the United States had 

no water piped into their homes, and more than 2.4 million had 

critical drinking water needs. Tribal communities are particularly 

hard hit. For example, it is estimated that over 30 percent of the 

Navajo Nation residents do not have access to safe, piped drinking 


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water. Lack of a secure water supply presents a hardship to residents and impedes economic development. 

In July 2012, the Bureau of Reclamation (‘‘Bureau’’ or ‘‘BOR’’) released a report, ‘‘Assessment of Reclamation’s Rural Water Activities and Other Federal Programs that Provide Support on Potable 

Water Supplies to Rural Water Communities in the Western 

United States’’ (‘‘BOR Assessment’’), which quantifies the range of 

unmet needs for rural water supply systems in terms of dollars. 

That report estimates that the unmet need for potable water supply in the 17 western States to be from $5 billion to $8 billion for 

non-Indian rural water supply projects and $1.2 billion for specific 

Indian water supply projects in the western States as of fiscal year 

2009. 

According to the same BOR Assessment, in the past 2 years, the 

Bureau has received 68 applications for funding for appraisal and 

feasibility studies of rural water supply projects. Thus, it appears 

that the demand for funds to study and develop plans for proposed 

rural water supply projects may well outstrip the appropriated levels and authorized ceiling of $15 million annually. 

Congress enacted the ‘‘Rural Water Supply Act of 2006,’’ which 

required the Secretary of the Interior to establish a rural water 

supply program. By definition, under the Act, a ‘‘rural water supply 

project’’ serves a community or group of communities, each of 

which has a population of less than 50,000 inhabitants, and may 

include Indian tribes, dispersed homesites, and rural areas. 

Pursuant to the Rural Water Supply Act, the Secretary is to 

carry out a program in the 17 western Reclamation States to: (1) 

investigate and identify opportunities to ensure safe and adequate 

rural water supply projects for domestic, municipal, and industrial 

use; (2) plan the design and construction, through appraisal and 

feasibility studies, of rural water supply projects; and (3) oversee 

the construction, as appropriate, of rural water supply projects that 

are recommended by the Secretary and subsequently authorized by 

Congress. Under this program, the Secretary, acting through the 

Bureau, may undertake the construction of individual rural water 

supply projects only as expressly authorized by Congress. 

Between 1980 and 2007, Congress directed the Bureau to undertake 11 specific rural water supply projects. Four of these have 

been completed. However, there is no predictable funding for the 

remaining projects, because construction funding must be secured 

annually through the appropriations process. There is a significant 

backlog in construction funding for these 7 projects. 

The Bureau receives on average approximately $50 million per 

year in appropriations for construction of the authorized projects. 

The Bureau’s Assessment report indicates that, assuming an unconstrained level of annual Federal funding of $162 million, as projected in the project engineering reports, and assuming non-Federal 

funding at the minimum required, all remaining projects could be 

completed by 2029 at a total Federal investment of about $3 billion. 

However, at the current level of funding of $50 million annually for 

construction, projects would be completed much later (perhaps as 

late as 2063) at a cost of $4 billion. 

The Reclamation Fund was established by Congress in 1902, and 

was intended to be used as a funding source to construct water 

projects in the West. The fund today is derived from several 


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sources, including a federal share of oil and gas revenues and other 

mineral receipts from federal lands. These sources, as well as repayments and revenues associated with federal water resources development and some sales, rentals, and leases (including natural 

resource leasing) of federal land in the western United States, generally make up the fund. Of these funds, natural resource royalties 

and hydropower revenues make up the majority of incoming receipts. The Congressional Research Service indicates that, over the 

last five years, an average of 91 percent of the incoming funding 

came from natural resource royalties (79%) and from hydropower 

(11%). However, the use of monies from the Reclamation Fund has 

been subject to appropriation, and therefore, large balances have 

remained in the Fund. The average annual surplus in the Reclamation Fund from fiscal year 2005 through fiscal year 2011 was $960 

million. 

While these monies were intended to be used for water project 

construction in the West, funds often have not been appropriated 

when needed. As a result, a backlog of authorized but uncompleted 

Federal water supply projects, including rural water supply 

projects remains. As an example, outstanding construction authorizations for rural water supply projects total over $2.6 billion. 

In Indian water rights settlements, Indian tribes, states, municipalities, and the United States enter into binding agreements 

whereby an affected tribe agrees to some limitation on the seniority 

of its water rights in exchange for water supply project funding. 

The United States—pursuant to its responsibility as trustee for the 

various Indian tribes—shares the costs of construction of these 

projects. Any agreement binding the United States as a party must 

be approved by Congress and most of the water settlements enacted from 1978 to present make funding for settlements contingent on the annual appropriations cycle. With funding for settlements uncertain, tribes and other parties have been increasingly 

concerned over whether projects authorized in water settlements 

legislation will be timely completed. Some tribes whose settlements 

were enacted nearly 20 years ago still must lobby for funding to 

keep projects on schedule every year. Such uncertainty makes it 

less and less likely tribes will continue to look toward settlements 

as a viable option which will lead to continued uncertainty over 

water rights in the arid west. 

Settling Indian water rights claims rather than litigating them 

is generally seen as being advantageous for all parties and has 

been formal federal policy since the George H.W. Bush Administration (55 Fed. Reg. 9223 (1990)), so it is in the national interest to 

ensure a conducive atmosphere to settling water rights claims. 

In February 2006, the Government Accountability Office issued 

a report in response to Congressional concerns over 16 Indian irrigation projects in the Western United States. GAO, Indian Irrigation Projects: Numerous Issues Need to Be Addressed to Improve 

Project Management and Financial Sustainability (GAO–06–314). 

The irrigation projects, which were generally initiated in the late 

1800s and early 1900s by the Department of the Interior, were 

aimed at assimilating tribal communities into mainstream society 

by giving them the ability to build agriculturally-based economies. 

Over time, non-Indians began buying or leasing the land served by 

the projects for agricultural purposes, and project stakeholders 


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evolved from Indian water users and the tribes within the reservation to include non-Indian water users as well. Today, many of the 

water users are non-Indian. 

The GAO report found numerous problems associated with the 

management of these irrigation projects including deferred maintenance costs estimated at $850 million. The Bureau of Indian Affairs generally defines deferred maintenance as upkeep that is 

postponed until some future time. Deferred maintenance varies 

from project to project and ranges from cleaning weeds and trees 

which divert water from irrigation ditches, to repairing leaky or 

crumbling check gates designed to regulate water flow, to resloping 

eroded canal banks to optimize water flow. 

S. 715, as ordered reported, is needed to address these problems. 

The bill establishes a new fund in the Treasury, using $150 million 

per year that would otherwise be deposited in the Reclamation 

Fund, to fund rural water projects, Indian water rights settlements, and deferred maintenance of Indian irrigation projects. 

LEGISLATIVE HISTORY

S. 715 was introduced by Senator Baucus on April 11, 2013. Senators Tester, Harkin, Udall of New Mexico, Klobuchar, Franken, 

Johnson of South Dakota, Heinrich, Hoeven, and Heitkamp are 

original co-sponsors. The Subcommittee on Water and Power held 

a hearing on the bill on April 16, 2013 (S. Hrg. 113–32). The Committee adopted an amendment in the nature of a substitute, as 

amended by a second degree amendment, and ordered the bill, as 

amended, favorably reported on November 21, 2013. 

In the 112th Congress similar legislation, S. 3385, was introduced by Senator Baucus on July 16, 2012. The Senate Energy and 

Natural Resources Committee held a hearing on July 31, 2012 (S. 

Hrg. 112–588). 

COMMITTEE RECOMMENDATION

The Senate Committee on Energy and Natural Resources, in 

open business session on November 21, 2013, by a majority voice 

vote of a quorum present, recommends that the Senate pass S. 715, 

if amended as described herein. Senators Landrieu, Risch, Flake, 

and Scott asked to be recorded as voting no. 

COMMITTEE AMENDMENTS

During its consideration of S. 715, the Committee adopted an 

amendment in the nature of a substitute, as amended by a second 

degree amendment to the substitute. The amendment in the nature 

of a substitute, as amended by the second degree amendment, expands the scope of the bill and the scope of the Reclamation Rural 

Water Construction Fund established by the bill to fund not only 

rural water projects, but also the settlement of claims of Indian 

tribes arising from the use of Indian land for the generation of hydropower and the deferred maintenance needs of Indian irrigation 

projects. The amendment in the nature of a substitute separates 

the provisions relating to the establishment of the Reclamation 

Rural Water Construction Fund and provisions relating to funding 

rural water projects into two separate titles and adds a third title 

providing for the implementation of reclamation infrastructure and 


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settlement agreements. The second degree amendment adds a 

fourth title addressing the deferred maintenance needs of Indian irrigation projects. The amendment in the nature of a substitute, as 

amended by the second degree amendment, renames the Rural 

Water Construction Fund, splits it into 3 separate accounts, increases the authorized amount from $80 million to $150 million, 

annually, and makes expenditures from the fund subject to appropriation. 

SECTION-BY-SECTION ANALYSIS

Section 1 provides a short title and table of contents. 

Section 2 defines key terms. 

TITLE I—RECLAMATION RURAL WATER CONSTRUCTION AND

SETTLEMENT IMPLEMENTATION FUND

Section 101 establishes a fund in the United States Treasury to 

be known as the ‘‘Reclamation Rural Water Construction and Settlement Implementation Fund.’’ 

Section 102 establishes three accounts within the fund established in Section 101. The three accounts are named: (1) the ‘‘Rural 

Water Project Account’’; (2) the ‘‘Indian Irrigation Account’’; and (3) 

the ‘‘Reclamation Infrastructure and Settlement Implementation 

Account.’’ 

Section 103(a) directs the Secretary of the Treasury to deposit $150,000,000 of revenues that would otherwise be deposited in the 

Reclamation Fund for each of fiscal years 2014 through 2035 into 

the fund established under Section 101. These funds would be divided amongst the three accounts in the following manner: 

$80,000,000 to the Rural Water Project Account; $35,000,000 to the 

Indian Irrigation Account; and $35,000,000 to the Reclamation Infrastructure and Settlement Implementation Account. 

Section 103(b) specifies that amounts deposited into the Fund 

under Section 103(a) shall be subject to appropriation. 

Section 104 discusses expenditures from the Fund—stating that 

the Secretary may expend up to the amounts allocated under Section 102 plus accrued interest. The Secretary may expend more 

than $150,000,000 in a given year if there are funds left over in 

the accounts from previous years. This section also makes clear 

that any unexpended funds must be retained in the accounts to 

which they are designated and expended for the purposes for which 

expenditures from the designated accounts are authorized. 

Section 105 directs the Secretary to invest such portions of the 

Fund that are not required for current withdrawals. This section 

also specifies that interest earned on the amounts in the Fund 

along with proceeds from the sale or redemption of any obligations 

held in the Fund shall be credited to, and form part of, the Fund. 

Section 106 requires amounts to be transferred to the Fund from 

the Reclamation Fund at least monthly and also discusses how adjustments shall be made. 

Section 107 permits funds within the Indian Irrigation Account 

established by section 102(2) and the Reclamation Infrastructure 

and Settlement Implementation Account established by section 

102(3) to be transferable with regard to authorized uses if, during 

or after fiscal year 2023, the Secretary determines that funds are 

no longer needed in either the Indian Irrigation Account or the 


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Reclamation Infrastructure and Settlement Implementation Account. 

Section 108 provides for termination of the Fund on September 

30, 2035, and mandates any remaining unexpended or unobligated 

balances be transferred to the Reclamation Fund. 

TITLE II—RURAL WATER PROJECTS

Section 201 permits the Secretary to use not less than 

$80,000,000 of the amounts available in the Rural Water Project 

Account, annually, for fiscal years 2014 through 2035, to complete 

construction of rural water projects meeting certain criteria. 

Section 202 places certain restrictions on the Secretary’s use of 

the amounts under section 201. The restrictions include that the 

Secretary shall not use the amounts for operation and maintenance 

costs, that before expending any amounts the Secretary shall develop programmatic goals for carrying out this title, and that the 

Secretary shall develop funding prioritization criteria to serve as a 

methodology for distributing funds under this title prior to expending any amounts. 

TITLE III—RECLAMATION INFRASTRUCTURE AND SETTLEMENT

IMPLEMENTATION

Section 301 directs the Secretary to use not less than 

$35,000,000, plus accrued interest, of the amounts authorized to be 

expended from the Reclamation Infrastructure and Settlement Implementation Account established under section 102(3), annually, 

for fiscal years 2014 through 2035, and describes the purposes for 

which the amounts may be expended. 

TITLE IV—REPAIR, REPLACEMENT, AND MAINTENANCE OF CERTAIN

INDIAN IRRIGATION PROJECTS

Section 401 directs the Secretary to establish a program to address the deferred maintenance needs of Indian irrigation projects 

and to transfer to the Bureau of Indian Affairs not less than 

$35,000,000, plus accrued interest, annually, for each of fiscal years 

2014 through 2035, to carry out maintenance, repair, and replacement activities for eligible projects. 

Section 402 lays out criteria for projects eligible for funding 

under section 401(b). 

Section 403 directs the Secretary, as a precondition of expending 

amounts to carry out this title and within 180 days from the enactment of this act, and in consultation with the Assistant Secretary 

for Indian Affairs, the Commissioner of the Bureau of Reclamation, 

and representatives of affected Indian tribes, to develop and submit 

to Congress programmatic goals to carry out this title and a funding prioritization criteria to serve as a methodology for distributing 

funds under this title. Section 403 lays out details of what those 

goals and prioritization criteria should contemplate. 

Section 404 directs the Secretary—acting through the Assistant 

Secretary for Indian Affairs—to complete a study within 2 years 

from the enactment of this act, that evaluates options for improving programmatic and project management and performance of irrigation projects managed in whole or in part by the Bureau of Indian Affairs and report it to Congress. Section 404 also directs the 


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Secretary to consult with Indian tribes having jurisdiction over the 

land on which an eligible project is located and with other landowners served by the project prior to beginning said study. Section 

404 also allocates funding to enable completion of the report. 

Section 405 requires the Secretary, prior to expending funds pursuant to section 401, to consult with the Indian tribe that has jurisdiction over the land on which an eligible irrigation project is located and to consider the input of other affected landowners. 

Section 406(a) directs the Secretary to ensure, to the maximum 

extent practicable, that for each of fiscal years 2014 through 2035, 

each Indian irrigation project eligible for funding under section 

402, that has critical maintenance needs, receives part of the funding under section 401 to address those needs. 

Section 406(b) directs the Secretary to give priority to Indian irrigation projects for which funding has not been made available during the 15-year period ending the day before the date of enactment 

of this act. 

Section 406(c) caps funding for any individual project to 

$15,000,000 over any consecutive 3-year period unless there are no 

other projects needing funding. 

Sections 406(d) and 406(e) clarify that any amounts made available under this section shall be nonreimbursable and that the Indian Self-Determination and Education Assistance Act applies to 

activities carried out under this section, respectively. 

COST AND BUDGETARY CONSIDERATIONS

The following estimate of costs of this measure has been provided 

by the Congressional Budget Office: 

S. 715—Authorized Rural Water Projects Completion Act 

Summary: S. 715 would establish a new Reclamation Rural 

Water Construction and Settlement Implementation Fund and 

transfer $150 million from the existing Reclamation Fund into the 

proposed fund annually through 2035. Those annual deposits and 

interest credited to the unspent balances in the new fund would be 

authorized to be appropriated for constructing certain rural water 

projects, settling claims against the federal government regarding 

the use of tribal lands, and maintaining Indian irrigation projects. 

Based on information from the Bureau of Reclamation (BOR) and 

the Bureau of Indian Affairs (BIA), CBO estimates that subject to 

appropriation of the authorized amounts, the legislation would cost 

$692 million over the 2015–2019 period and $2.6 billion after 2019. 

Pay-as-you-go procedures do not apply to this legislation because it 

would not affect direct spending or revenues. 

S. 715 contains no intergovernmental or private-sector mandates 

as defined in the Unfunded Mandates Reform Act (UMRA). Tribal 

governments and rural communities would benefit from funds appropriated under this bill. 

Estimated cost to the Federal Government: The estimated budgetary impact of S. 715 is shown in the following table. The costs 

of this legislation fall within budget functions 300 (natural resources and environment) and 450 (community and regional development). 


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By fiscal year, in millions of dollars— 

2015 2016 2017 2018 2019 2015–2019 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Title II—Rural Water Projects: 

Estimated Authorization Level ............................................................. 80 81 83 83 83 410 

Estimated Outlays ............................................................................... 48 69 83 83 83 366 

Title III—Reclamation Infrastructure and Settlement Implementation: 

Estimated Authorization Level ............................................................. 35 35 36 36 36 178 

Estimated Outlays ............................................................................... 32 35 36 36 36 175 

Title III—Indian Irrigation: 

Estimated Authorization Level ............................................................. 35 35 36 36 37 180 

Estimated Outlays ............................................................................... 18 27 35 36 37 152 

Total Costs: 

Estimated Authorization Level .................................................... 150 152 155 155 156 767 

Estimated Outlays ...................................................................... 97 131 153 155 156 692 

Note: Components may not sum to totals because of rounding. Additional costs would continue after 2019, subject to appropriation, until 

around 2035. CBO estimates those costs would total about $2.6 billion. 

Basis of estimate: For this estimate, CBO assumes that S. 715 

will be enacted by the end of 2014 and that the authorized 

amounts will be appropriated for each fiscal year. Estimated outlays are based on information from the BOR and BIA, and on historical spending patterns for similar projects. 

Title II—Rural Water Projects: CBO estimates that implementing title II to construct rural water projects would cost $366 

million over the 2015–2019 period and about $1.4 billion thereafter, 

assuming appropriation of the authorized amounts. 

Titel II would authorized the appropriate of $80 million annually 

through 2035 plus interest credited to a portion of the proposed 

fund to construct certain water projects to provide rural and tribal 

communities with access to clean, safe and reliable drinking water. 

Based on information provided by the BOR, CBO estimates that 

seven projects would be eligible for funding using the criteria specified in S. 715. those seven projects are currently being constructed 

or are ready to be constructed. 

Title III—Reclamation Infrastructure and Settlement Implementation: CBO estimates that implementing title III would cost $175 

million over the 2015–2019 period and $631 million thereafter, assuming appropriation of the authorized amounts. 

Title III would authorize the appropriation of $35 million annually through 2035 plus interest credited to a portion of the proposed fund to satisfy certain settlement agreements between the 

federal government and federally recognized Indian tribes. Settlements eligible for funding under this title would include those that 

have been authorized by the Congress, that have some portion of 

the settlement amount subject to appropriation, and that meet certain other criteria. According to BIA, several settlement agreements previously authorized by the Congress would meet the bill’s 

criteria; for example, the White Mountain Apache Tribe Water 

Rights quantification, the Taos Pueblo Indian Water Rights Settlement, and the Aamodt Litigation Settlement. Future settlements 

could also qualify to receive amounts authorized by the bill. 

Title IV—Indian Irrigation: CBO estimates that implementing 

title IV would cost $152 million over the 2015–2019 period and 

$634 million thereafter, assuming appropriation of the authorized 

amounts. 


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Title IV would authorize the appropriation of $35 million annually through 2035 plus interest credited to a portion of the proposed fund to maintain Indian irrigation projects owned by the federal government and managed by the Bureau of Indian Affairs. According to BIA, the agency manages 14 Indian irrigation projects 

that have nearly $600 million in deferred maintenance costs. 

Under the bill, additional maintenance costs that accrue at those 

14 projects prior to 2035 also would be eligible to be paid from 

amounts appropriated from the fund. 

Pay-as-you-go considerations: None. 

Intergovernmental and private-sector impact: S. 715 contains no 

intergovernmental or private-sector mandates as defined in UMRA. 

Assuming appropriation of necessary amounts, tribal governments 

and rural communities would benefit from this bill. 

Estimate prepared by: Federal Costs: Aurora Swanson; Impact 

on State, Local, and Tribal Governments: Michael Kulas; Impact on 

the Private Sector: Amy Petz. 

Estimate approved by: Theresa Gullo; Deputy Assistant Director 

for Budget Analysis. 

REGULATORY IMPACT EVALUATION

In compliance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee makes the following evaluation 

of the regulatory impact which would be incurred in carrying out 

S. 715. 

The bill is not a regulatory measure in the sense of imposing 

Government established standards or significant economic responsibilities on private individuals and businesses. 

No personal information would be collected in administering the 

program. Therefore, there would be no impact on personal privacy. 

Little, if any additional paperwork would result from the enactment of S. 715. 

CONGRESSIONALLY DIRECTED SPENDING

S. 715, as ordered reported, does not contain any congressionally 

directed spending items, limited tax benefits, or limited tariff benefits as defined in rule XLIV of the Standing Rules of the Senate. 

EXECUTIVE COMMUNICATIONS

The testimony provided by the Bureau of Reclamation at the 

April 16, 2013, Subcommittee on Water and Power hearing on S. 

715 follows: 

STATEMENT OF ROBERT QUINT, SENIOR ADVISOR, BUREAU

OF RECLAMATION, U.S. DEPARTMENT OF THE INTERIOR

Chairman Schatz and Members of the Subcommittee, I 

am Bob Quint, Senior Advisor at the Bureau of Reclamation (Reclamation). I am pleased to be here to provide the 

views of the Department of the Interior (Department) on 

S. 715, the ‘‘Authorized Rural Water Projects Completion 

Act’’. My statement today will draw upon the testimony 

provided by Commissioner Mike Connor in July 2012 on S. 

3385, prior legislation discussed in this Committee during 

the 112th Congress. 


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Like the sponsors of this legislation, the Department 

supports the goals of encouraging vibrant rural economies 

and ensuring safe, reliable sources of drinking water for 

rural residents. Rural water projects help build strong, secure rural communities and are important to our non-federal sponsors, which is why the President’s FY 2014 Budget includes $40 million for rural water projects. 

As a threshold matter, the Obama Administration has 

supported Reclamation’s rural water program over the last 

four years, allocating $231 million of funding, in the FY 

2010–2013 budgets, to construct, operate, and maintain 

authorized rural water projects in addition to $232 million 

provided for these projects in the Recovery Act. Still, the 

rural water program must compete with a number of other 

priorities within the Budget, including aging infrastructure, Indian water rights settlements, environmental compliance and restoration actions, and other priorities intended to address future water and energy related challenges. Notwithstanding the importance of rural water 

projects, current budget constraints have limited the ability to make Federal investments that match on-the-ground 

capabilities. 

Despite such constraints Reclamation has made progress 

in promoting certainty, sustainability, and resiliency for 

those who use and rely on water resources in the West and 

in supporting the basic drinking water needs of rural communities, as directed by the Congress. S. 715 provides a 

constant level of mandatory funding to support the construction of authorized rural water projects to deliver 

water to smaller, isolated communities. However, the Department believes Federal investments in such projects 

must recognize the current fiscal constraints and the need 

to make tough choices in prioritizing those investments. 

The Administration supports the goals embodied by S. 715 

of advancing the economic security of Americans living in 

rural areas, and constructing these important infrastructure projects will not only help provide the economic benefits of a clean, reliable, drinking water system that most 

Americans take for granted, but will also assist in creating 

jobs in the short-term through ongoing construction, but 

the Administration supports discretionary funding for 

these projects. 

Since the 1980s, Congress has authorized Reclamation 

to undertake the design and construction of specific 

projects intended to deliver potable water supplies to rural 

communities located in North Dakota, South Dakota, Montana, New Mexico, Minnesota and Iowa. These projects 

exist in communities that are experiencing urgent needs 

for water due to poor quality of the existing supply or the 

lack of a secure, reliable supply. For example, in rural 

Montana, some communities have, from time-to-time, been 

subject to ‘‘boil water’’ orders due to the unsafe conditions 

of the existing drinking water supplies. In Eastern New 

Mexico, the existing communities currently rely on the diminishing Ogallala Aquifer and the current drinking water 


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systems are projected to be depleted within 40 years. Reclamation’s Rural Water Program provides a resource to 

rural communities under those circumstances and the Congress has authorized federal assistance to meet those 

needs. 

The Rural Water Supply Act of 2006 (P.L. 109–451) authorized Reclamation to establish a program to work with 

rural communities, including tribes, in the 17 Western 

States to assess rural water supply needs and conduct appraisal and feasibility studies without individual acts of 

Congress. Pursuant to the Rural Water Supply Act, Reclamation created a rural water program to enable coordinated examination of the various options to address rural 

communities’ water supply needs through a cost effective, 

priority-based process. 

In addition to authorizing appraisal investigations and 

feasibility studies, Section 104 of the Rural Water Supply 

Act required that the Secretary of the Interior, in consultation with the Secretary of Agriculture, the Administrator 

of the Environmental Protection Agency, the Director of 

the Indian Health Service, the Secretary of Housing and 

Urban Development and the Secretary of the Army, to develop a comprehensive assessment of the status of the existing, authorized rural water projects. Section 104 also directs Reclamation to describe its plans for completing the 

design and construction of the authorized rural water 

projects. 

In response to Section 104, Reclamation issued a draft 

assessment report titled ‘‘Assessment of Reclamation’s 

Rural Water Activities and Other Federal Programs that 

Provide Support on Potable Water Supplies to Rural Water 

Communities in the Western United States’’ which is 

posted on Reclamation’s website (www.usbr.gov/rural 

water/docs/Rural-Water-Assessment-Report-and-FundingCriteria.pdf). Comments on the draft report were submitted through September 10, 2012. In addition to providing a report of the status of the existing authorized 

rural water projects, the assessment report describes how 

Reclamation’s Rural Water Supply Program will be carried 

out and coordinated with other Federal programs which 

support the development and management of water supplies in rural communities in the western states and to 

maximize efficiency of the various programs by leveraging 

Federal and non-Federal funding to meet the shared goals 

of the programs. 

As described in the assessment report, with the exception of Title III of P.L. 107–331 that authorized the 

Jicarilla rural water supply system, each of the Acts of 

Congress authorizing Reclamation’s involvement in the 

rural water supply projects required that the cost ceilings 

included in the original authorizing legislation be indexed 

to adjust for inflation which is estimated to be 4% annually. The result of these indexing requirements is that the 

overall cost of the authorized rural water projects has 

risen and continues to rise during the time needed for conVerDate Mar 15 2010 01:43 May 28, 2014 Jkt 039010 PO 00000 Frm 00016 Fmt 6659 Sfmt 6969 E:\HR\OC\SR167.XXX SR167

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struction, such that the total estimated funding that would 

be required to complete these projects is now $2.6 billion, 

which is substantially higher than the original authorization amounts, which totaled $2.0 billion. 

Reclamation has recognized the need to make meaningful progress in constructing authorized rural water 

projects and has budgeted $40 million in FY2014 toward 

that effort. At the levels provided in the 2013 budget, and 

without additional non-Federal funding, progress would be 

made towards project completion, but some of the currently authorized projects would be completed much later, 

perhaps not until well after 2063 despite close to $4.0 billion being invested by that time. It is estimated that as of 

2063, an outstanding balance of approximately $1.1 billion 

would remain to complete construction of currently authorized projects. 

Across the country, state, local, and Tribal governments 

are taking a greater leadership role in water resources investments, including financing projects the Federal government would have in the past. Constrained Federal budgets 

do not preclude the ability of non-Federal parties to move 

forward with important investments in water resources infrastructure and the Department stands ready to support 

that effort. Even with the additional resources made available through S. 715, we would expect that non-Federal entities will likely need to increase their share of funding to 

build these projects in the timeframes they have envisioned. 

S. 715 establishes a dedicated Reclamation Rural Water 

Construction Fund in the United States Treasury comprised of funds that would otherwise be deposited into the 

Reclamation Fund established by the first section of the 

Act of June 17, 1902 (32 Stat. 388, chapter 1093). This 

funding source would enable earlier completion of projects. 

Section 3(b)(3) of S. 3385 provides that the bill’s cost would 

be offset so as to not increase the deficit. The Department 

supports such language. However, even if an equivalent 

and acceptable offset is identified, use of those funds must 

be weighed against other priorities across the Federal government, including deficit reduction. 

Section 3 of S. 715 provides that for each fiscal year 

from 2014 through 2030, $80,000,000 per year will be deposited into the Fund in addition to interest earned on invested money that is available in the Fund but not utilized 

for the current withdrawal. Section 3(c) of S. 715 limits expenditures from fiscal year 2014 through 2035 from the 

Fund to not more than $80,000,000 in addition to interest 

accrued in that same fiscal year, with an allowance for the 

use of funds carried over from prior years. 

S. 715 also provides that if a feasibility study has been 

submitted to the Secretary by September 30, 2012, and 

those projects are subsequently authorized by Congress, 

they may be eligible to receive funding through the Reclamation Rural Water Construction Fund. S. 715 directs 

the Secretary of the Interior to develop programmatic 


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goals enabling the expeditious completion of construction 

of the existing rural water projects and to establish 

prioritization criteria for the distribution of funds. Reclamation’s draft assessment report would meet these requirements when complete. Reclamation’s first goal is to 

advance the construction of rural water projects that meet 

the most urgent water supply needs in the shortest 

amount of time, given our current budget constraints. The 

second goal is to give priority to rural water projects that 

address Indian and tribal water supply needs. 

Within the context of the above goals, Reclamation recognizes that current and projected funding levels may not 

be sufficient to expeditiously complete the federal funding 

portion of every project and that it must prioritize the allocation of available funding. The draft assessment report 

outlines prioritization criteria to guide Reclamation’s decision making to maximize the agency’s ability to meet its 

programmatic goals, to maximize water deliveries to rural 

communities in as short a period as possible, and to reflect 

the diverse needs and circumstances facing each individual 

project. The six criteria identified by Reclamation for rural 

water construction prioritization are: 

• Is there an urgent and compelling need for potable water supplies? 

• How close is the Project to being completed and 

what is the commitment of the project sponsors to 

making that happen? 

• What is the financial need of the communities and 

what is the relative economic effect of the Project? 

• Does the Project fulfill Reclamation’s authorized 

niche for taking a regional and watershed approach to 

rural water projects? 

• Does the project minimize water and energy consumption and encourage the development of renewable 

energy resources such as wind, solar, hydropower, etc., 

to meet local needs? 

• Does the project serve the needs of tribal communities and tribal members? 

The analysis outlined in the draft assessment report underscores that in times of constrained federal budgets, 

non-federal funding in excess of the minimum contributions originally contemplated will be required to expedite 

project completion and reduce the effects of indexing over 

the construction period. 

This concludes my written statement. I am pleased to 

answer questions at the appropriate time. 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, the Committee notes that no changes in existing law are made by the bill S. 715 as ordered reported. 

Æ 


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