(3) COOPERATIVE
AGREEMENT
WITH
THE 
STATE AND THE BLACKFEET TRIBE.—The Secretary 
may enter into cooperative agreements with the 
State and the Blackfeet Tribe to carry out all or a 
portion of 1 or more studies authorized under para-
graph (1) if the Secretary determines that the coop-
erative agreements would be cost-effective and effi-
cient. 
(4) REIMBURSEMENT OF STUDY COSTS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the costs of preparing any 
study under paragraph (1) shall be— 
(i) considered to be a rehabilitation 
project cost under subsection (b); and 
(ii) if the proposed rehabilitation 
project is carried out under subsection (b), 
reimbursed in accordance with the repay-
ment contract. 
(B) BLACKFEET
TRIBE.—Any Federal 
funds provided to the Blackfeet Tribe under a 
cooperative agreement entered into under para-
graph (3) shall be nonreimbursable and non-
returnable to the United States. 
(5) REPORT.—Not later than 2 years after the 
date of enactment of this Act, the Secretary shall 
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submit to the Committee on Energy and Natural 
Resources of the Senate and the Committee on Re-
sources of the House of Representatives any studies 
required to be conducted under paragraph (1). 
(b) 
AUTHORIZATION
OF
REHABILITATION 
PROJECT.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date on which a study is submitted under 
subsection (a)(5), the Secretary shall initiate the 
planning, design, and construction of the St. Mary 
Diversion and Conveyance Works rehabilitation and 
improvement project alternative that is selected 
under paragraph (2). 
(2) SELECTION
OF
ALTERNATIVE.—The Sec-
retary, in consultation and coordination with the 
State, the Blackfeet Tribe, and other affected reha-
bilitation project stakeholders, shall select the alter-
native for construction of the rehabilitation project 
that the Secretary determines would best meet the 
needs of the State, the Blackfeet Tribe, and other 
affected rehabilitation project stakeholders. 
(3) COOPERATIVE AGREEMENT.—The Secretary 
shall enter into 1 or more cooperative agreements 
with the State, the Blackfeet Tribe, and the Board 
to provide the State, the Blackfeet Tribe, and the 
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Board with information on, and opportunities to 
provide comments with respect to, all aspects of the 
planning, design, and construction of the rehabilita-
tion project. 
(4) COST-SHARING REQUIREMENTS.— 
(A) IN GENERAL.—Of the total rehabilita-
tion projects costs— 
(i) 45 percent shall be reimbursable; 
and 
(ii) 55 percent shall be nonreimburs-
able. 
(B) REIMBURSABLE COSTS.— 
(i) FEDERAL
SHARE.—The Federal 
share of the total reimbursable rehabilita-
tion project costs, as identified in the re-
payment contract, shall be 75 percent. 
(ii) NON-FEDERAL SHARE.—The non- 
Federal share of the total reimbursable 
project costs, as identified in the repay-
ment contract, shall be the lesser of— 
(I) the amount that is equal to 
25 percent of the total reimbursable 
costs of carrying out the project; or 
(II) $25,000,000. 
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(C) FORM OF NON-FEDERAL SHARE.—The 
non-Federal share required under subpara-
graphs (A) and (B) may be in the form of— 
(i) any in-kind, documented contribu-
tion of goods or services, whether provided 
before, on, or after the date of enactment 
of this Act; or 
(ii) any amounts paid by the State, 
the Blackfeet Tribe, or other affected reha-
bilitation project stakeholders, whether 
paid before, on, or after the date of enact-
ment of this Act, for engineering or other 
studies that contribute to the rehabilitation 
and improvement of the St. Mary Diver-
sion and Conveyance Works. 
(5) 
LIMITATION
ON
CERTAIN
PROJECT 
COSTS.— 
(A) ADMINISTRATIVE
COSTS.—The total 
amount of funds expended by the Secretary for 
the administration of the rehabilitation project 
shall be not more than 4 percent of the amount 
provided for the total rehabilitation project con-
struction budget. 
(B) DESIGN
AND
CONSTRUCTION.—The 
total amount of funds expended by the Sec-
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retary for design, and construction oversight of 
the rehabilitation project shall be not more than 
20 percent of the amount provided for the total 
rehabilitation project construction budget. 
(6) CONSTRUCTION
FUNDS.—The Secretary 
shall not obligate any funds made available for reha-
bilitation project construction activities authorized 
under this subsection until— 
(A) any applicable requirements of the Na-
tional Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) have been met; 
(B) a final engineering report has been— 
(i) prepared and submitted to the Sec-
retary; and 
(ii) transmitted by the Secretary to 
the Committee on Energy and Natural Re-
sources of the Senate and the Committee 
on Resources of the House of Representa-
tives by the date that is 60 days after the 
date on which the report has been sub-
mitted to the Secretary; and 
(C) a contract providing for the repayment 
of reimbursable costs for the rehabilitation 
project has been entered into by the Secretary 
and the applicable non-Federal entities. 
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(7) EMPLOYMENT
PREFERENCE.—The Sec-
retary shall require that any contract or subcontract 
for the construction of the rehabilitation project in-
clude a provision that the contractor or subcon-
tractor provide a hiring preference to qualified mem-
bers of the Blackfeet Tribe. 
(8) 
DEADLINE.—The 
rehabilitation 
project 
shall be substantially complete by not later than 
January 1, 2018. 
SEC. 4. EMERGENCY RESPONSE PLAN. 
(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of this Act, the Secretary, in consulta-
tion with the State, local and tribal authorities, and other 
Milk River Project stakeholders, shall develop and, subject 
to the availability of funds, implement an emergency re-
sponse plan to be followed in the event of a catastrophic 
infrastructure failure. 
(b) CONTENTS.—The emergency response plan 
shall— 
(1) identify the potential impacts of a cata-
strophic infrastructure failure on public safety and 
the environment, with an emphasis on the impacts 
on any portions of the Blackfeet Reservation in 
which the St. Mary Diversion and Conveyance 
Works are located; 
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(2) provide a response plan to address the pub-
lic safety and environmental impacts in the State 
and the Blackfeet Reservation within a reasonable 
period following a catastrophic infrastructure failure; 
(3) define the responsibilities of emergency re-
sponse personnel in the event of a catastrophic infra-
structure failure; 
(4) ensure communication and coordination 
among the Federal, State, tribal, and local agencies 
and other Milk River Project stakeholders that are 
responsible for implementing the emergency response 
plan; 
(5) establish public notification procedures to 
be carried out in the event of a catastrophic infra-
structure failure; 
(6) provide for the repair or replacement of 
failed infrastructure with components that are com-
patible with the rehabilitation project; 
(7) include a cost-sharing agreement that— 
(A) specifies the manner in which costs 
will be shared and any reimbursable amounts 
will be repaid if the emergency response plan is 
implemented; and 
(B) is consistent with subsection (e); and 
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(8) incorporate any other elements that the 
Secretary, in consultation with the State, tribal and 
local authorities, and other Milk River Project stake-
holders, determines would ensure a rapid and effec-
tive response to a catastrophic infrastructure failure. 
(c) TITLE.—Title to all project works and facilities 
constructed under this section shall be held by the United 
States. 
(d) DEVELOPMENT COSTS.—Any costs incurred by 
the Secretary in developing the emergency response plan 
shall be nonreimbursable. 
(e) IMPLEMENTATION COSTS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the cost-sharing requirements of section 
3(b)(4) shall apply to any costs of implementing the 
emergency response plan under this section. 
(2) 
BLACKFEET
TRIBE.—Notwithstanding 
paragraph (1), any Federal funds provided for non-
infrastructure activities carried out under this sec-
tion on the Blackfeet Reservation are nonreimburs-
able and nonreturnable to the United States. 
SEC. 5. EMERGENCY RESPONSE PLAN FUND. 
(a) ESTABLISHMENT.—There is established in the 
Treasury of the United States a revolving fund, consisting 
of— 
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(1) such amounts as are appropriated to the 
Fund under section 10(d); and 
(2) any interest earned on investment of 
amounts in the Fund under subsection (c). 
(b) EXPENDITURES FROM FUND.— 
(1) IN GENERAL.—If the Secretary determines 
that a catastrophic infrastructure failure has oc-
curred, the Secretary of the Treasury, on request of 
the Secretary, shall transfer from the Fund to the 
Secretary such amounts as the Secretary determines 
are necessary to implement the emergency response 
plan. 
(2) REPORT.—Not later than 60 days after the 
date on which amounts from the Fund are trans-
ferred to the Secretary under paragraph (1), the 
Secretary shall submit to the Committee on Energy 
and Natural Resources of the Senate and the Com-
mittee on Resources of the House of Representatives 
a report that describes— 
(A) the event that triggered the determina-
tion that a catastrophic infrastructure failure 
had occurred; 
(B) the amount transferred to the Sec-
retary from the Fund; 
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(C) a description of any construction car-
ried out using the amounts transferred; and 
(D) the estimated cost of completing any 
construction being carried out under the emer-
gency response plan. 
(c) INVESTMENT OF AMOUNTS.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury shall invest such portion of the Fund as is not, 
in the judgment of the Secretary of the Treasury, 
required to meet current withdrawals. 
(2) INTEREST-BEARING OBLIGATIONS.—Invest-
ments may be made only in interest-bearing obliga-
tions of the United States. 
(3) ACQUISITION
OF
OBLIGATIONS.—For the 
purpose of investments under paragraph (1), obliga-
tions may be acquired— 
(A) on original issue at the issue price; or 
(B) by purchase of outstanding obligations 
at the market price. 
(4) SALE OF OBLIGATIONS.—Any obligation ac-
quired by the Fund may be sold by the Secretary of 
the Treasury at the market price. 
(5) CREDITS TO FUND.—The interest on, and 
the proceeds from the sale or redemption of, any ob-
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ligations held in the Fund shall be credited to, and 
form a part of, the Fund. 
(d) TERMINATION OF FUND.— 
(1) IN GENERAL.—If the Secretary determines 
that the St. Mary Diversion and Conveyance Works 
no longer pose an unacceptable risk of catastrophic 
infrastructure failure— 
(A) the Fund shall be terminated; and 
(B) the unexpended and unobligated bal-
ance of the Fund shall be made available for 
the construction of the rehabilitation project au-
thorized under section 3(b)(1). 
(2) ADDITIONAL FUNDS.—Amounts made avail-
able for the construction of the rehabilitation project 
under paragraph (1)(B) shall be in addition to the 
amounts made available for the rehabilitation project 
under section 10(b). 
SEC. 6. MILK RIVER PROJECT. 
(a) AUTHORIZED USES.—Notwithstanding any other 
provision of law— 
(1) the authorized uses of Lake Sherburne Res-
ervoir, St. Mary Diversion and Conveyance Works, 
Fresno 
Reservoir, 
Nelson 
Reservoir, 
and 
the 
Vandalia Diversion Dam shall include irrigation, 
flood control, the provision of municipal and indus-
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trial water supplies, recreation, fish and wildlife con-
servation and development, and water conservation; 
and 
(2) the Milk River Project shall be operated— 
(A) primarily for the purpose of irrigation; 
and 
(B) in a manner that does not interfere 
with any contracts in existence on the date of 
enactment of this Act that are executed under 
the reclamation laws. 
(b) SERVICE AREA.—The service area of the Milk 
River Project is— 
(1) the Milk River Basin; and 
(2) the portion of the St. Mary River Basin 
that is accessible to the Milk River Project. 
(c) FEASIBILITY STUDIES.— 
(1) PRIORITY.—In consultation with the State 
and affected Milk River Project stakeholders, the 
Secretary shall prioritize the Milk River Project 
structures that are in need of rehabilitation and im-
provement. 
(2) PREPARATION OF STUDIES.—The Secretary 
or the non-Federal project sponsor shall prepare 1 
or more feasibility studies for Milk River Project 
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structures in order of the priority established under 
paragraph (1). 
(3) COSTS.—The costs of any feasibility studies 
prepared under paragraph (2) shall be— 
(A) considered to be Milk River Project re-
habilitation and improvement costs; and 
(B) reimbursable if the proposed Milk 
River Project rehabilitation and improvement is 
carried out. 
(4) COOPERATIVE
AGREEMENTS.—The Sec-
retary may enter into any cooperative agreements 
with the non-Federal project sponsors that the Sec-
retary determines to be necessary to carry out this 
subsection. 
(d) MILK RIVER PROJECT REHABILITATION AND IM-
PROVEMENT COSTS.—The cost-sharing requirements of 
section 3(b)(4) shall apply to the costs of studying, design-
ing, planning, and constructing any rehabilitation of, or 
improvements to, Milk River Project structures that are 
carried out in accordance with a feasibility study prepared 
under subsection (c). 
SEC. 7. BLACKFEET TRIBE. 
(a) PROTECTION OF LAND AND WATER RIGHTS.— 
In carrying out the rehabilitation project, the Secretary 
shall ensure that the land and water rights held in trust 
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for the benefit of the Blackfeet Tribe and the members 
of the Blackfeet Tribe are protected. 
(b) 
SETTLEMENT
OF
MILK
RIVER
PROJECT 
CLAIMS.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of law, the Secretary shall resolve any 
land, water, environmental, and other claims of the 
Blackfeet Tribe against the United States relating to 
the portions of the Milk River Project located within 
the exterior boundaries of the Blackfeet Reservation. 
(2) COSTS.—Any Federal funds expended under 
paragraph (1) shall be nonreimbursable and non-
returnable to the United States. 
(3) REPORT.—Not later than January 1, 2008, 
or if the Secretary and the Blackfeet Tribe agree to 
a later date, the date agreed to by the Secretary and 
the Blackfeet Tribe, the Secretary shall submit to 
Congress a report that describes the resolution of 
any claims under paragraph (1), including a descrip-
tion of the amount of funds necessary to resolve the 
claims. 
(c) BLACKFEET PROJECTS.— 
(1) IDENTIFICATION OF PROJECTS.—The Sec-
retary, in consultation with the Blackfeet Tribe, 
shall identify appropriate Blackfeet projects to im-
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prove economic conditions on the Blackfeet Reserva-
tion. 
(2) FEASIBILITY STUDIES.— 
(A) IN
GENERAL.—The Secretary shall 
complete 1 or more studies to determine the 
feasibility of carrying out the Blackfeet projects 
identified under paragraph (1). 
(B) USE OF EXISTING STUDIES.—In pre-
paring a study under subparagraph (A), the 
Secretary shall, to the maximum extent prac-
ticable, use any existing studies that are identi-
fied by the Blackfeet Tribe. 
(C) 
CONSIDERATIONS.—The 
Secretary 
may consider the use of the St. Mary Diversion 
and Conveyance Works in— 
(i) the preparation of a feasibility 
study under this paragraph; and 
(ii) the subsequent planning, design, 
and construction of any Blackfeet projects 
that are recommended to be carried out 
under this subsection. 
(D) 
COOPERATIVE
AGREEMENTS.—The 
Secretary may enter into 1 or more cooperative 
agreements with the Blackfeet Tribe to carry 
out a feasibility study under this paragraph. 
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(E) REPORT.—Not later than 180 days 
after the date on which a feasibility study is 
completed under this paragraph, the Secretary 
shall submit to Congress a report that— 
(i) identifies any Blackfeet projects 
proposed to be carried out under this sub-
section; and 
(ii) describes the amount of funds 
necessary for the recommended Blackfeet 
projects. 
(d) HYDROPOWER
PREFERENCE.—The Blackfeet 
Tribe shall be eligible for preference in the development 
of hydropower generation on all facilities of the St. Mary 
Diversion and Conveyance Works located within the exte-
rior boundaries of the Blackfeet Reservation on the same 
basis as municipalities under the Federal Power Act (16 
U.S.C. 791a et seq.) and the reclamation laws (including 
the Reclamation Project Act of 1939 (43 U.S.C. 485 et 
seq.)). 
(e) EMPLOYMENT
PREFERENCE.—The Secretary 
shall require that any contract or subcontract for the con-
struction of the rehabilitation project require that the con-
tractor or subcontractor provide a hiring preference to 
qualified members of the Blackfeet Tribe. 
(f) BLACKFEET IRRIGATION PROJECT.— 
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(1) FEASIBILITY STUDIES.— 
(A) IN GENERAL.—As soon as practicable 
after the date on which the Secretary completes 
an appraisal investigation of the Blackfeet Irri-
gation Project, the Secretary shall conduct 1 or 
more studies to determine the feasibility of re-
habilitating and improving the Blackfeet Irriga-
tion Project structures that are determined by 
the Secretary to be in need of rehabilitation or 
improvement based on the appraisal investiga-
tion. 
(B) 
NONREIMBURSABLE
COSTS.—Any 
costs incurred in carrying out a feasibility study 
under subparagraph (A) are nonreimbursable 
and nonreturnable to the United States. 
(C) COOPERATIVE AGREEMENT.—The Sec-
retary may enter into 1 or more cooperative 
agreements with the Blackfeet Tribe for the 
conduct of the feasibility studies under subpara-
graph (A). 
(D) EMPLOYMENT
PREFERENCE.—With 
respect to hiring or contracting for individuals 
to carry out a feasibility study under subpara-
graph (A), the Secretary shall give preference 
to any member of the Blackfeet Tribe that the 
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