II 

108TH CONGRESS 

1ST SESSION S. 1732

To direct the Secretary of the Interior to establish a rural water supply 

program in the Reclamation States to provide a clean, safe, affordable, 

and reliable water supply to rural residents. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 15, 2003

Mr. DOMENICI introduced the following bill; which was read twice and referred 

to the Committee on Energy and Natural Resources 

A BILL

To direct the Secretary of the Interior to establish a rural 

water supply program in the Reclamation States to provide a clean, safe, affordable, and reliable water supply 

to rural residents.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as ‘‘The Reclamation Rural 

5 Water Supply Act of 2003’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 
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1 (1) CONSTRUCT.—The term ‘‘construct’’ means 

2 to—

3 (A) install new infrastructure; and 

4 (B) upgrade or replace existing facilities 

5 that are associated with the new infrastructure 

6 authorized under this Act. 

7 (2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

8 means any Indian entity that is—

9 (A) included on the list of recognized tribes 

10 that the Secretary publishes in the Federal 

11 Register in accordance with section 104 of the 

12 Federally Recognized Indian Tribe List Act of 

13 1994 (25 U.S.C. 479a–1); and 

14 (B) recognized by the Secretary as eligible 

15 to receive services from the Federal Govern16 ment. 

17 (3) NON-FEDERAL PROJECT ENTITY.—The 

18 term ‘‘non-Federal project entity’’ means a State, 

19 regional, or local authority, Indian tribe, or other 

20 qualifying entity, such as a water conservation dis21 trict, water conservancy district, or rural water dis22 trict or association. 

23 (4) PROGRAM.—The term ‘‘program’’ means 

24 the rural water supply program established under 

25 section 3(a). 
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1 (5) PROJECT.—

2 (A) IN GENERAL.—The term ‘‘project’’ 

3 means a water supply project for communities, 

4 an Indian tribe, or dispersed homesites with do5 mestic or rural water. 

6 (B) INCLUSION.—The term ‘‘project’’ in7 cludes incidental livestock watering. 

8 (6) RECLAMATION LAW.—The term ‘‘Reclama9 tion law’’ means the Act of June 17, 1902 (32 Stat. 

10 388, chapter 1093), and Acts supplemental to and 

11 amendatory of that Act (43 U.S.C. 371 et seq.)). 

12 (7) RECLAMATION STATE.—The term ‘‘Rec13 lamation State’’ means each of the States identified 

14 in the first section of the Act of June 17, 1902 (43 

15 U.S.C. 391). 

16 (8) SECRETARY.—The term ‘‘Secretary’’ means 

17 the Secretary of the Interior. 

18 SEC. 3. RURAL WATER SUPPLY PROGRAM. 

19 (a) IN GENERAL.—The Secretary, in cooperation 

20 with non-Federal project entities, may carry out a rural 

21 water supply program to plan, design, and construct 

22 projects in Reclamation States. 

23 (b) ELIGIBILITY CRITERIA.—

24 (1) IN GENERAL.—The Secretary shall develop 

25 and publish in the Federal Register criteria for de-
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1 termining the eligibility of a project for assistance 

2 under the program. 

3 (2) CONSIDERATIONS.—The criteria developed 

4 under paragraph (1) shall take into account such 

5 factors as—

6 (A) whether a project serves—

7 (i) rural areas and communities; or 

8 (ii) Indian tribes; 

9 (B) whether there is an urgent and com10 pelling need for a project that would—

11 (i) result in continuous, measurable, 

12 and significant water quality benefits; 

13 (ii) address current or future water 

14 supply shortages; or 

15 (iii) improve the health or aesthetic 

16 quality of water; 

17 (C) whether a project helps meet any ap18 plicable legal requirements; 

19 (D) whether a project—

20 (i) promotes and applies a regional or 

21 watershed perspective to water resource 

22 management or cross-boundary issues; 

23 (ii) implements an integrated re24 sources management approach;
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1 (iii) increases water management 

2 flexibility; or 

3 (iv) forms a partnership with other 

4 entities; and 

5 (E) whether a project provides benefits 

6 outside the region in which the project is car7 ried out. 

8 (c) COST-SHARING REQUIREMENT.—

9 (1) FEDERAL SHARE.—The Federal share of 

10 the cost of the planning and construction of a 

11 project shall be the amount established by the Sec12 retary in the feasibility report for the project under 

13 section 5(c)(1)(D)(i). 

14 (2) NON-FEDERAL SHARE.—

15 (A) IN GENERAL.—Except as provided in 

16 subparagraph (B), the non-Federal share shall 

17 be not less than 25 percent of the cost of plan18 ning and construction of the project, but not 

19 more than the amount established by the Sec20 retary in the feasibility report for the project 

21 under section 5(c)(1)(D)(i). 

22 (B) REDUCED NON-FEDERAL SHARE.—

23 The Secretary may reduce the non-Federal 

24 share of the cost of the planning and construc25 tion of a project under subparagraph (A) if the 
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1 Secretary determines that the amount of the 

2 non-Federal share required by that subpara3 graph would result in economic hardship for the 

4 non-Federal project entity. 

5 (C) LIMITATION.—Grants from other Fed6 eral sources shall not be credited toward the 

7 non-Federal share required by this paragraph. 

8 SEC. 4. APPRAISAL INVESTIGATIONS. 

9 (a) IN GENERAL.—On request of a non-Federal 

10 project entity, the Secretary, in cooperation with the non11 Federal project entity and in consultation with appro12 priate State, regional, local, and tribal authorities, may 

13 conduct an appraisal investigation of a project to deter14 mine whether—

15 (1) the project meets the criteria developed 

16 under section (3)(b); and 

17 (2) the Secretary should initiate a feasibility 

18 study under section 5(a). 

19 (b) REPORT.—On completion of the investigation 

20 under subsection (a), the Secretary shall prepare an ap21 praisal report that includes any recommendations of the 

22 Secretary with respect to whether a feasibility study 

23 should be initiated for the project under section 5(a). 

24 (c) COSTS.—The Secretary shall pay the costs of any 

25 appraisal investigations conducted under this section. 
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1 SEC. 5. FEASIBILITY STUDIES. 

2 (a) IN GENERAL.—The Secretary, in cooperation 

3 with a non-Federal project entity, may carry out studies 

4 to determine the feasibility of rural water supply systems 

5 recommended for study under section 4(b). 

6 (b) STUDY CONSIDERATIONS.—In conducting a feasi7 bility study under this section, the Secretary shall con8 sider—

9 (1) the need for the proposed project; 

10 (2) short- and long-term water demand and 

11 supplies in the study area; 

12 (3) an evaluation of whether the resources in 

13 the study area are capable of providing a safe and 

14 reliable source of potable water to the communities 

15 and rural areas to be served; 

16 (4) any reasonable alternatives to the proposed 

17 project (including nonstructural alternatives) that 

18 satisfy the need for action, including an alternative 

19 that is within the ability of the non-Federal project 

20 entity to pay operation, maintenance, and repair 

21 costs of the proposed project; 

22 (5) the economic feasibility and cost effective23 ness of the proposed project; 

24 (6) impacts of the proposed project on the nat25 ural and human environment; 
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1 (7) appropriate water conservation measures; 

2 and 

3 (8) the financial ability of the non-Federal 

4 project entity to pay—

5 (A) the non-Federal share of any planning 

6 and construction costs of the proposed project; 

7 and 

8 (B) 100 percent of the operation, mainte9 nance, and replacement costs allocated under 

10 subsection (c)(1)(C)(i). 

11 (c) REPORT.—

12 (1) IN GENERAL.—On completion of a feasi13 bility study under subsection (a), the Secretary shall 

14 prepare a report that—

15 (A) describes the engineering, environ16 mental, and economic activities of the Secretary 

17 carried out under the study; 

18 (B) takes into consideration—

19 (i) the range of potential solutions for, 

20 and the circumstances and needs of, the 

21 area to be served by the proposed project; 

22 (ii) the potential benefits to the people 

23 of the study area; and 

24 (iii) appropriate water conservation 

25 measures;
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1 (C) includes a schedule that identifies—

2 (i) the amount of operation, mainte3 nance, and replacement costs that should 

4 be allocated to each non-Federal project 

5 entity participating in the project; and 

6 (ii) the current and expected financial 

7 ability of each non-Federal project entity 

8 to pay the allocated operation, mainte9 nance, and replacement costs; 

10 (D)(i) specifies the Federal and non-Fed11 eral share of the planning and construction 

12 costs of the project; and 

13 (ii) allocates the non-Federal share among 

14 project beneficiaries; and 

15 (E) includes the recommendations of the 

16 Secretary as to whether the project should be 

17 carried out under this Act. 

18 (2) SUBMISSION TO CONGRESS.—With respect 

19 to any project that the Secretary recommends under 

20 paragraph (1)(E), the Secretary shall submit to 

21 Congress—

22 (A) the feasibility report for the proposed 

23 project prepared under paragraph (1); 

24 (B) any environmental reports associated 

25 with the proposed project; and 
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1 (C) a request to develop and construct the 

2 proposed project, as appropriate. 

3 (d) PRIORITIES.—The Secretary shall establish prior4 ities for carrying out projects under this Act based on—

5 (1) the extent to which the project takes advan6 tage of—

7 (A) economic incentives; and 

8 (B) the use of market-based mechanisms; 

9 (2) the cost benefit of the project versus other 

10 alternatives such as desalination; 

11 (3) whether non-Federal project entities have 

12 adequate fiscal controls in place to manage the 

13 project; and 

14 (4) the extent to which the project involves 

15 partnerships. 

16 (e) COST-SHARING REQUIREMENT.—

17 (1) FEDERAL SHARE.—The Federal share of 

18 the cost of a feasibility study carried out under this 

19 section shall not exceed 50 percent of the study 

20 costs. 

21 (2) FORM OF NON-FEDERAL SHARE.—The non22 Federal share under paragraph (1) may be in the 

23 form of any in-kind services that the Secretary de24 termines would contribute substantially toward the 

25 conduct and completion of the study. 
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1 (f) REIMBURSEMENT OF COSTS.—If a project is con2 structed under the program, the Federal share of feasi3 bility studies shall be—

4 (1) considered to be project costs; and 

5 (2) reimbursed in accordance with Reclamation 

6 law. 

7 SEC. 6. OPERATION, MAINTENANCE, AND REPLACEMENT 

8 COSTS. 

9 (a) IN GENERAL.—To be eligible to carry out a 

10 project under this Act, a non-Federal project entity shall 

11 establish, to the satisfaction of the Secretary, that the 

12 non-Federal project entity has the ability to pay all oper13 ation, maintenance, and replacement costs of the project 

14 facilities. 

15 (b) PLAN.—The non-Federal project entity, in con16 sultation with the Secretary, shall develop an operation, 

17 maintenance, and replacement plan to provide the nec18 essary framework to assist the non-Federal project entity 

19 in establishing rates and fees for project beneficiaries. 

20 SEC. 7. MISCELLANEOUS PROVISIONS. 

21 (a) AUTHORITY OF SECRETARY.—The Secretary may 

22 enter into contracts, financial assistance agreements, and 

23 such other agreements, and promulgate such regulations, 

24 as are necessary to carry out this Act. 
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1 (b) LIMITATION ON USE OF FUNDS.—None of the 

2 funds made available to the Secretary for planning or con3 struction of a rural water supply project developed under 

4 the program may be used to plan or construct facilities 

5 used to supply water for irrigation. 

6 (c) TITLE TO PROJECTS.—Title to the components 

7 of rural water supply projects planned, designed, and con8 structed under the program shall be held by the non-Fed9 eral project entity. 

10 SEC. 8. EFFECT ON FEDERAL RECLAMATION LAW. 

11 Nothing in this Act supersedes or amends—

12 (1) Reclamation law; or 

13 (2) any Federal law associated with a project, 

14 or portion of a project constructed under Reclama15 tion law. 

16 SEC. 9. AUTHORIZATION OF APPROPRIATIONS. 

17 (a) IN GENERAL.—There is authorized to be appro18 priated to carry out this Act $70,000,000 for fiscal year 

19 2004 and each fiscal year thereafter. 

20 (b) CONSTRUCTION COST INDEXING.—

21 (1) IN GENERAL.—Any amounts appropriated 

22 for the planning and construction of projects under 

23 this Act shall include such sums as are necessary to 

24 defray increases in development costs reflected in 

25 appropriate engineering cost indices after the com-
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1 pletion date of the applicable feasibility report, to re2 main available until expended. 

3 (2) COST SHARING.—The Federal and non-Fed4 eral share of cost increases due to inflation shall be 

5 allocated in amounts that are proportionate to the 

6 allocation determined under section 3(c).

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