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[Senate Report 113-74]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 131
113th Congress                                                   Report
                                 SENATE
 1st Session                                                     113-74

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

 
                   MNI WICONI PROJECT ACT AMENDMENTS

                                _______
                                

               July 15, 2013.--and ordered to be printed

                                _______
                                

    Mr. Wyden, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 684]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 684) to amend the Mni Wiconi Project Act 
of 1988 to facilitate completion of the Mni Wiconi Rural Water 
Supply System, and for other purposes, having considered the 
same, reports favorably thereon with amendments and recommends 
that the bill, as amended, do pass.
    The amendments are as follows:

    1. On page 5, line 4, insert ``, as set forth in the plans 
for completion developed under subsection (a)'' after 
``transfer of existing water systems''.
    2. On page 8, line 10, strike ``authority'' and insert 
``authorities''.
    3. On page 8, line 14, insert ``also'' before ``be used''.
    4. 7 On page 11, strike lines 5 through 16 and insert the 
following:
                  ``(A) In general.--After the date on which 
                public or tribal water systems on the Pine 
                Ridge Indian Reservation, the Rosebud Indian 
                Reservation, and the Lower Brule Indian 
                Reservation that are in existence on the date 
                of enactment of this paragraph have been 
                brought up to the standards for the water 
                systems established in the plans developed 
                under section 3C(a), but not later than 15 
                years after the date of enactment of this 
                paragraph, title to each of the water systems 
                shall be transferred to the United States, to 
                be held in trust for the benefit of the 
                applicable Indian tribe, on the request of the 
                Oglala Sioux Tribes, the Rosebud Sioux Tribe, 
                or the Lower Brule Sioux Tribe, as applicable, 
                and the owner of the water system.
    5. On page 11, line 22, strike ``proposed to be 
transferred'' and insert ``proposed, by request of the owner of 
the water system, to be transferred and improved''.

                                Purpose

    The purpose of S. 684 is to amend the Mni Wiconi Project 
Act of 1988 to facilitate completion of the Mni Wiconi Rural 
Water Supply System.

                          Background and Need

    The Mni Wiconi Project Act of 1988 (Public Law 100-516) 
authorized the construction of the Mni Wiconi Rural Water 
Supply Project (Project) which provides drinking water for 
residents of three tribal water systems and one non-tribal 
system where previous water supplies were insufficient or of 
poor quality. For instance, Shannon County, South Dakota, one 
of the counties where part of the Project is located, is the 
poorest county in the United States, and the lack of water 
supplies restricts efforts to promote economic development on 
the reservation. The United States has a trust responsibility 
to ensure that adequate and safe water supplies are available.
    The original project included the Oglala Sioux Rural Water 
Supply System, the West River Rural Water System, and the 
Lyman-Jones Rural Water System. In 1994, the West River and the 
Lyman-Jones Rural Water System merged. Amendments to the 
Project were adopted in 1994 that added the Rosebud Sioux and 
the Lower Brule Sioux Rural Water Systems and raised the 
authorized appropriation ceiling for the Project to $263.2 
million. The Project was reauthorized in 2002 (Public Law 110-
367) and amended again by the Consolidated Appropriations Act, 
2008 (Public Law 110-161), to extend the sunset date to 2013. 
Once completed, the Project is estimated to serve 52,000 
people, including more than 40,000 people on the three Indian 
reservations.
    Similar to other large Federal rural water projects, 
appropriations have failed to keep pace with projected 
timelines, and additional costs have cut into construction 
funding. Accordingly, project beneficiaries are asking the 
Congress for an increase in the cost ceiling and extension of 
its authorization in order to be completed and serve the 
designated population. Without an adjustment to the cost 
ceiling, project beneficiaries argue that some portions of the 
Oglala Sioux Rural Water Supply System and Rosebud Sioux Rural 
Water System will remain incomplete. S. 684 would raise the 
Project ceiling by $14.3 million and push back the completion 
date to 2016 in order to complete the Project.

                          Legislative History

    S. 684 was introduced by Senator Johnson of South Dakota on 
April 9, 2013. The Subcommittee on Water and Power held a 
hearing on S. 684 on April 16, 2013. At its business meeting on 
May 16, 2013, the Committee ordered S. 684 favorably reported.
    In the 112th Congress, Senator Johnson introduced similar 
legislation, S. 3464. The Subcommittee on Water and Power held 
a hearing on September 19, 2012 (S.Hrg. 112-624).

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on May 16, 2013, by a voice vote of a 
quorum present, recommends that the Senate pass S. 684, if 
amended as described herein. Senators Risch, Lee, and Scott 
requested to be recorded as voting no.

                          Committee Amendments

    During its consideration of S. 684, the Committee adopted 
five amendments. The principal amendment clarifies that once 
the tribal water systems have been brought up to the standards 
as established in the plans for completion of the systems, but 
not later than 15 years after the date of enactment of S. 684, 
title to each system shall be transferred to the United States, 
to be held in trust for the benefit of the applicable Indian 
tribe.

                      Section-by-Section Analysis

    Section 1 provides for the short title, the ``Mni Wiconi 
Project Act Amendments of 2013.''
    Section 2 amends section 3 of the Mni Wiconi Project Act of 
1988 (Public Law 100-516) to plan for the completion of the 
Rural Water Supply System in Oglala Sioux, Rosebud Sioux, and 
Lower Brule Sioux. The Secretary of the Interior is directed to 
consult with Federal agencies and assist the Bureau of 
Reclamation in improving and repairing existing community water 
systems that are to be included within the project.
    Section 3(a) amends section 10(a) of the Mni Wiconi Project 
Act of 1988 (Public Law 100-516) to extend the authorization 
date to 2016 and raises the authorized appropriation ceiling 
for the Project by $14.3 million in construction funding.
    Section 3(b) amends section 10(b) of the Mni Wiconi Project 
Act of 1988 (Public Law 100-516) to provide for the operation 
and maintenance of the Rural Water Supply System in Oglala 
Sioux, Rosebud Sioux, and Lower Brule Sioux. After the systems 
have been brought up to code as established by the plans set 
forth in the legislation by the owning entity, each public or 
tribal water system shall be transferred to the United States, 
to be held in trust for the benefit of the applicable Indian 
tribe.

                   Cost and Budgetary Considerations

    The following estimate of costs of S. 684 has been provided 
by the Congressional Budget Office:

S. 684--Mni Wiconi Project Act Amendments of 2013

    Summary: S. 684 would authorize the Secretary of the 
Interior, acting through the Bureau of Reclamation, to develop 
plans to complete the Oglala Sioux Rural Water Supply System, 
the Rosebud Sioux Rural Water Supply System, and the Lower 
Brule Sioux Rural Water Supply System in southwestern South 
Dakota. The bill also would authorize the bureau to enter into 
agreements with other federal agencies to complete those 
projects. Based on information from the Bureau of Reclamation, 
and assuming appropriation of the necessary amounts, CBO 
estimates that implementing S. 684 would cost $29 million over 
the 2014-2018 period and an additional $62 million after 2018.
    Pay-as-you-go procedures do not apply to this legislation 
because it would not affect direct spending or revenues.
    S. 684 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 684 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--
                                                         -------------------------------------------------------
                                                            2014     2015     2016     2017     2018   2014-2018
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level...........................        0        8       12        6        6        32
Estimated Outlays.......................................        0        5        9        8        7        29
----------------------------------------------------------------------------------------------------------------

    Basis of Estimate: For this estimate, CBO assumes that S. 
684 will be enacted late in 2013 and that the necessary amounts 
will be appropriated over the next several years.
    S. 684 would require the Bureau of Reclamation to develop 
plans to complete the three water supply systems in 
southwestern South Dakota within 15 years. Those plans would 
require the bureau to enter into agreements with other federal 
agencies, including the Environmental Protection Agency, the 
Department of Agriculture, the Department of Housing and Urban 
Development, and the Bureau of Indian Affairs, to upgrade those 
systems, connect certain rural water users to those systems, 
and construct a water distribution system for livestock. The 
bureau also would be required to complete drinking water 
distribution systems on two Indian reservations that are part 
of the affected water supply systems.
    S. 684 would specifically authorize the appropriation of 
$14 million for the bureau to complete the necessary activities 
and would authorize the appropriation of whatever sums are 
necessary for other agencies to assist in completion of that 
work. Under the bill, the bureau would be tasked with 
coordinating work by all federal agencies. Based on information 
from the Bureau of Reclamation, CBO estimates that enacting the 
legislation would cost $29 million over the 2014-2018 period 
and an additional $62 million after 2018.
    Pay-As-You-Go considerations: None.
    Intergovernmental and private-sector impact: S. 684 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. Enacting this bill would benefit tribes in 
South Dakota.
    Estimate prepared by: Federal Costs: Aurora Swanson; Impact 
on State, Local, and Tribal Governments: Melissa Merrell; 
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. 684.
    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. 684, as ordered reported.

                   Congressionally Directed Spending

    S. 684, as introduced by Senator Johnson and reported by 
the Committee authorizes appropriation of an additional 
$14,308,000 to complete the planning, design, and construction 
of the Oglala Sioux Rural Water Supply System, the Rosebud 
Sioux Rural Water Supply System, the Lower Brule Sioux Rural 
Water Supply System, the West River Rural Water Supply System, 
and the Lyman-Jones Rural Water Supply System.

                        Executive Communications

    The testimony provided by the U.S. Department of the 
Interior, Bureau of Reclamation at the April 16, 2013, 
Subcommittee on Water and Power hearing on S. 684 follows:

   Statement of Robert Quint, Senior Advisor, Bureau of Reclamation, 
                       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 provide the views of the 
Department of the Interior (Department) on S. 684, the Mni 
Wiconi Project Act Amendments of 2013. The Department 
recognizes that meaningful changes to this bill have been made 
since prior related legislation was heard during the 112th 
Congress. However, if enacted, this updated version of the bill 
would still expand the scope and authorization ceiling of the 
Mni Wiconi Rural Water Supply Project, and have significant 
impacts on the budgets of both Reclamation and the Bureau of 
Indian Affairs. For the reasons described below, the Department 
cannot support S. 684.
    The Mni Wiconi Rural Water Supply Project is a municipal, 
rural and industrial project that serves both tribal and non-
tribal populations of the Pine Ridge, Rosebud, and Lower Brule 
Indian Reservations and the West River Lyman-Jones Rural Water 
System in seven counties of southwestern South Dakota. 
Responsibilities of the Secretary under the Mni Wiconi Rural 
Project Act (Public Law 100-516) include the operation and 
maintenance of existing water systems, including the core 
treatment plant and pipelines, and appurtenant facilities on 
the Pine Ridge, Rosebud and Lower Brule Indian Reservations. 
With the funding requested in the President's FY 2013 budget, 
the majority of the population of the project will be served. 
The Lower Brule and West River Lyman-Jones portions of the 
project will be completed. Generally those not connected to the 
project (approximately 2.5% of the population on Rosebud and 
Pine Ridge Reservation) are served by community water systems 
or individual wells. Reclamation would be happy to facilitate 
or coordinate action with other federal agencies to address the 
needs identified by the bill's sponsor. Reclamation has a 
backlog of authorized but not constructed projects. Therefore, 
we have concerns about adding to the scope of an existing 
project that is nearly complete.
    Section 2 of S. 684 directs the Secretary of the Interior 
to develop a plan for completion of the Oglala Sioux Rural 
Water Supply System, the Rosebud Sioux Rural Water Supply 
System, and the Lower Brule Sioux Rural Water System. Planning 
the completion of the systems is dependent on future 
appropriations as well as Reclamation's need for flexibility in 
decision-making relative to all authorized rural water 
projects. Reclamation must constantly assess and prioritize 
these kinds of projects to maximize the agency's ability to 
meet its programmatic goals, to maximize water deliveries to 
rural communities as efficiently as possible, and to reflect 
the diverse needs and circumstances facing each individual 
project. The Department would like to work with project 
sponsors of the bill to discuss plans for completion, and 
clarifying the roles, responsibilities, and authorities of 
Federal agencies involved in the project. An interagency 
agreement, as proposed by Reclamation during the August 8, 2012 
Joint Consultation Meeting with Federal Agencies, has the 
potential to achieve many of these objectives. Further, 
Reclamation is continuing to evaluate the facility improvements 
needed to transfer and incorporate existing community water 
systems.
    Section 2 also directs the Director of the Bureau of Indian 
Affairs, through the use of existing programs and annual 
appropriations, to assist the Secretary in completing the 
Oglala Sioux Rural Water Supply System, the Rosebud Sioux Rural 
Water System, and the Lower Brule Sioux Rural Water System by 
constructing, repairing, and upgrading plumbing fixtures, 
skirting, and other necessary features, such as septic tanks 
and drainfields, to ensure that houses within the service areas 
are able to meet the standards for connecting to those systems. 
The Bureau of Indian Affairs has no existing programs or annual 
appropriations for the construction, repair, or upgrading of 
plumbing fixtures or septic systems on private residences. Such 
function has usually been the responsibility of Health and 
Human Services or Indian Health Service.
    Section 3(a) of S. 684 would increase the authorized Mni 
Wiconi cost ceiling by an additional $14,308,000, based on 
October 1, 2011, price levels. Reclamation has worked closely 
with the project sponsors to ensure completed features will be 
functional and provide intended benefits within the currently 
authorized cost ceiling. The Department continues to believe 
that the FY 2013 President's request of $23 million for 
construction provides sufficient funding to meet the objectives 
of the Project as authorized. Recently enacted final 
appropriations for FY 2013 will determine final allocations to 
the project. In FY 2014, the Department is continuing to meet 
its longer-term obligation to fund operations and maintenance 
for the Mni Wiconi project's Indian sponsors features through 
Reclamation's request for $12 million in new FY 2014 
appropriations.
    Section 3(b)(5) would transfer existing public or tribal 
water systems ``in trust to the applicable rural water system'' 
upon requests from the Tribes or owner of such system. This 
language leaves some uncertainty in ownership as it doesn't 
identify the nature of the ``trust''. Language in sections 
3A(e) and 3B(e) of the current Act identifies that ownership is 
to be held in trust for the tribe by the United States. Section 
3(b) also authorizes appropriations for operation and 
maintenance to be used for the improvement, repair, and 
replacement of existing public or tribal water systems prior to 
and after their transfer into the respective project system. 
Reclamation had previously determined that the costs of 
upgrading existing community facilities should be properly 
allocated to the construction component of the project. Since 
these existing systems were originally constructed using funds 
and authorities of other agencies, Reclamation believes any 
funding for improvements needed to correct deficiencies in 
existing systems should be discussed among the various 
responsible agencies before those systems are accepted into the 
project.
    This concludes my written statement. I would be 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, changes in existing law made by 
the bill S. 684 as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

                     MNI WICONI PROJECT ACT OF 1988

                    (Public Law 100-516; as amended)

 AN ACT To authorize construction of the Mni Wiconi Rural Water Supply 
Project, and for other purposes.

           *       *       *       *       *       *       *

SEC. 3. OGLALA SIOUX RURAL WATER SUPPLY SYSTEM.

           *       *       *       *       *       *       *

SEC. 3A. ROSEBUD SIOUX RURAL WATER SYSTEM.

           *       *       *       *       *       *       *

SEC. 3B. LOWER BRULE SIOUX RURAL WATER SYSTEM.

           *       *       *       *       *       *       *

SEC. 3C. PLANS FOR COMPLETING THE OGLALA SIOUX RURAL WATER SUPPLY 
                    SYSTEM, ROSEBUD SIOUX RURAL WATER SYSTEM, AND LOWER 
                    BRULE SIOUX RURAL WATER SYSTEM.

    (a) Plans for Completion.--
          (1) In general.--In consultation with the Oglala 
        Sioux Tribe, the Rosebud Sioux Tribe, and the Lower 
        Brule Sioux Tribe, as applicable, and the Federal 
        agency heads listed in subsection (b)(1), the Secretary 
        shall develop plans to complete the Oglala Sioux Rural 
        Water Supply System, the Rosebud Sioux Rural Water 
        System, and the Lower Brule Sioux Rural Water System.
          (2) Contents.--The plan for each water supply system 
        described in paragraph (1) shall require--
                  (A) the completion of remaining components of 
                the applicable system in accordance with the 
                Final Engineering Report dated May 1993;
                  (B) the improvement, repair, and replacement 
                of existing water systems; and
                  (C) the transfer of those existing water 
                systems to the United States, to be held in 
                trust for the Oglala Sioux Tribe, the Rosebud 
                Sioux Tribe, or the Lower Brule Sioux Tribe, as 
                applicable, and made part of the applicable 
                rural water system.
          (3) Submission to congress.--Not later than 2 years 
        after the date of enactment of this section, the 
        Secretary shall submit to the Committee on Energy and 
        Natural Resources of the Senate and the Committee on 
        Natural Resources of the House of Representatives--
                  (A) a copy of each plan developed under this 
                subsection, including a schedule for full 
                implementation of the plan that shall not 
                exceed a period of 15 years after the date of 
                enactment of this section;
                  (B) a report that includes--
                          (i) a description of the roles and 
                        responsibilities of each of the heads 
                        of the Federal agencies listed in 
                        subsection (b)(1) (including the 
                        Commissioner of the Bureau of 
                        Reclamation) relating to the completion 
                        of the water supply systems, including 
                        with respect to the improvement, 
                        repair, and replacement of the existing 
                        water systems before and after 
                        transfer;
                          (ii) the program authorities of each 
                        Federal agency listed in subsection 
                        (b)(1) and a description of how the 
                        heads of the Federal agencies will work 
                        together to complete and implement the 
                        plans; and
                          (iii) the amount of funding and any 
                        other need the Secretary determines to 
                        be necessary to complete and implement 
                        the plans; and
                  (C) as applicable, a description of the roles 
                and responsibilities of the heads of other 
                Federal agencies that have existing authorities 
                to provide assistance to the Oglala Sioux 
                Tribe, the Rosebud Sioux Tribe, or the Lower 
                Brule Sioux Tribe.
    (b) Interagency Agreements.--
          (1) In general.--Notwithstanding any other provision 
        of law, the Secretary shall enter into agreements with 
        the Administrator of the Environmental Protection 
        Agency, the Secretary of Agriculture, the Secretary of 
        Health and Human Services, and the Secretary of Housing 
        and Urban Development--
                  (A) to fulfill the trust responsibility of 
                the United States; and
                  (B) to complete the Oglala Sioux Rural Water 
                Supply System, the Rosebud Sioux Rural Water 
                System, and the Lower Brule Sioux Rural Water 
                System in accordance with the Final Engineering 
                Report dated May 1993, including the transfer 
                of existing water systems as set forth in the 
                plans for completion developed under subsection 
                (a).
          (2) Cooperation.--
                  (A) In general.--The heads of the Federal 
                agencies described in paragraph (1) shall 
                assist the Secretary in completing the Oglala 
                Sioux Rural Water Supply System, the Rosebud 
                Sioux Rural Water System, and the Lower Brule 
                Sioux Rural Water System pursuant to sections 
                3(a), 3A(a), and 3B(a), respectively, including 
                by--
                          (i) improving, repairing, and 
                        replacing existing water systems as set 
                        forth in the plans developed under 
                        subsection (a); and
                          (ii) constructing new rural water 
                        facilities, service lines, and other 
                        necessary features.
                  (B) Administrator of the environmental 
                protection agency.--The Administrator of the 
                Environmental Protection Agency shall assist 
                the Secretary in meeting the environmental and 
                safe drinking water needs of the Pine Ridge 
                Indian Reservation, the Rosebud Indian 
                Reservation, and the Lower Brule Indian 
                Reservation, including through compliance with 
                the Safe Drinking Water Act (42 U.S.C. 300f et 
                seq.).
                  (C) Secretary of health and human services.--
                The Secretary of Health and Human Services 
                shall assist the Secretary in meeting the water 
                supply and public health needs of the Pine 
                Ridge Indian Reservation, the Rosebud Indian 
                Reservation, and the Lower Brule Indian 
                Reservation, including through compliance with 
                the Act of August 5, 1954 (commonly known as 
                the `Indian Sanitation Facilities Act') (42 
                U.S.C. 2001 et seq.).
                  (D) Secretary of housing and urban 
                development.--The Secretary of Housing and 
                Urban Development shall assist the Secretary by 
                carrying out projects to connect houses that 
                are eligible for funding from the Department of 
                Housing and Urban Development on the 
                reservations of the Oglala Sioux Tribe, the 
                Rosebud Sioux Tribe, and the Lower Brule Sioux 
                Tribe, through plumbing, water pipes, 
                appurtenances, and interconnections to the 
                Oglala Sioux Rural Water Supply System, the 
                Rosebud Sioux Rural Water System, and the Lower 
                Brule Sioux Rural Water System, respectively, 
                to meet the water conservation standards of 
                those water supply systems.
          (3) Livestock distribution systems.--
                  (A) In general.--The Secretary and the 
                Secretary of Agriculture shall, through the use 
                of authorities of the Bureau of Indian Affairs 
                and the Department of Agriculture, 
                respectively, complete, during a period not to 
                exceed 15 years after the date of enactment of 
                this section, the livestock distribution system 
                for the Oglala Sioux Rural Water Supply System 
                and the Rosebud Sioux Rural Water System, 
                consistent with the Final Engineering Report 
                dated May 1993.
                  (B) Administration.--For each water supply 
                system described in subparagraph (A), the 
                Secretary shall enter into agreements with the 
                Secretary of Agriculture and the Director of 
                the Bureau of Indian Affairs that set forth the 
                specific responsibilities of each agency 
                concerning the construction of the livestock 
                distribution systems.
                  (4) Lead agency.--The Department of the 
                Interior, acting through the Bureau of 
                Reclamation, shall act as the lead agency in 
                carrying out this section.
          (5) Administration.--
                  (A) In general.--Each agency head shall carry 
                out the duties of the agency head under this 
                subsection out of amounts made available to the 
                agency head under annual appropriations and 
                existing authorities.
                  (B) Authorization of use of other federal 
                agency funds.--Amounts made available to 
                agencies other than the Bureau of Reclamation 
                may also be used to carry out this Act.
                  (C) Additional funding requests.--Nothing in 
                this subsection prohibits the Oglala Sioux 
                Tribe, the Rosebud Sioux Tribe, or the Lower 
                Brule Sioux Tribe from applying for, seeking, 
                or obtaining amounts from the Federal agencies 
                referred to in paragraph (1) for any other 
                purpose.
    (c) Upgrading Standards for Connecting Homes.--The Director 
of the Bureau of Indian Affairs shall, through the use of 
existing programs and annual appropriations, assist the 
Secretary in completing the Oglala Sioux Rural Water Supply 
System, the Rosebud Sioux Rural Water System, and the Lower 
Brule Sioux Rural Water System by constructing, repairing, and 
upgrading plumbing fixtures, skirting, and other necessary 
features, such as septic tanks and drainfields, to ensure that 
houses within the service areas are able to meet the standards 
for connecting to those water systems.

           *       *       *       *       *       *       *

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    (a) Planning, Design, and Construction.--There are 
authorized to be appropriated $263,241,000 [and $58,800,000 
(based on October 1, 1997, price levels)] $58,800,000 (based on 
October 1, 1997 price levels), and $14,308,000 (based on 
October 1, 2011 price levels) for the planning, design, and 
construction of the Oglala Sioux Rural Water Supply System, the 
Rosebud Sioux Rural Water Supply System, the Lower Brule Sioux 
Rural Water Supply System, the West River Rural Water Supply 
System, and the Lyman-Jones Rural Water Supply System described 
in section 3, 3A, 3B, and 4. Such funds are authorized to be 
appropriated only through the end of the year [2013] 2016. The 
funds authorized to be appropriated by the first sentence of 
this section, less any amounts previously obligated for the 
Systems, may be increased or decreased by such amounts as may 
be justified by reason of ordinary fluctuations in development 
costs incurred after October 1, 1992 (with respect to the 
$263,241,000), [and October 1, 1997 (with respect to the 
$58,800,000)] $58,800,000 (based on October 1, 1997 price 
levels), and $14,308,000 (based on October 1, 2011 price 
levels), as indicated by engineering costs indices applicable 
for the type of construction involved.

           *       *       *       *       *       *       *

    (b) Operation and Maintenance of Oglala Sioux Rural Water 
Supply System, Rosebud Sioux Rural Water Supply System and 
Lower Brule Sioux Rural Water Supply System.--[There are]
          (1) Operation and maintenance.--
                  (A) In general.--There are authorized to be 
                appropriated such sums as may be necessary for 
                the operation and maintenance of the Oglala 
                Sioux Rural Water Supply System, Rosebud Sioux 
                Rural Water Supply System and Lower Brule Sioux 
                Rural Water Supply System. [The operation]
                  (B) West river and lyman-jones rural water 
                systems.--
                          (i) In general.--The operation and 
                        maintenance expenses associated with 
                        water deliveries to the West River and 
                        Lyman-Jones Rural Water Systems are a 
                        non-Federal responsibility and for such 
                        deliveries the Secretary shall enter 
                        into a contract with the West River and 
                        Lyman-Jones Systems for the payment of 
                        an annual operation and maintenance 
                        fee. [Such fee]
                          (ii) Fee basis.--The fee described in 
                        clause (i) shall be based on the 
                        incremental operation and maintenance 
                        costs for water actually delivered each 
                        year to the West River and Lyman-Jones 
                        Rural Water Systems. [Such operation 
                        and maintenance payments]
                          (iii) Adjustment of payments.--The 
                        operation and maintenance payments 
                        under this subparagraph shall be 
                        increased or decreased by such amounts 
                        as may be justified by reason of 
                        ordinary fluctuations as indicated by 
                        indices applicable to comparable 
                        regional rural water supply systems for 
                        the type of operation and maintenance 
                        involved.
          (2) Community water systems upgrades.--
                  (A) In general.--After the date on which the 
                public or tribal water systems on the Pine 
                Ridge Indian Reservation, the Rosebud Indian 
                Reservation, and the Lower Brule Indian 
                Reservation that are in existence on the date 
                of enactment of this paragraph have been 
                brought up to the standards for the water 
                systems established in the plans developed 
                under section 3C(a), but not later than 15 
                years after the date of enactment of this 
                paragraph, title to each of the water systems 
                shall be transferred to the United States, to 
                be held in trust for the benefit of the 
                applicable Indian tribe, on the request of the 
                Oglala Sioux Tribe, the Rosebud Sioux Tribe, or 
                the Lower Brule Sioux Tribe, as applicable, and 
                the owner of the water system.
                  (B) Improvements and repairs and 
                replacement.--The Secretary shall use amounts 
                authorized to be appropriated under paragraph 
                (1) for the improvement, repair, and 
                replacement of any water system that is 
                transferred or proposed, by request of the 
                owner of the water system, to be transferred 
                and improved under subparagraph (A).

           *       *       *       *       *       *       *

                                  
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