out ‘‘and controlling floods.’’ and inserting in lieu thereof
‘‘controlling floods, and environmental quality activities.
As used in this Act, the term ‘environmental quality activ-
ity’ means any activity that primarily benefits the quality
of natural environmental resources.’’.
(b) REALLOCATION OF PROJECT COSTS.—Such Act
is further amended by adding at the end the following new
section:
‘‘SEC. 7. (a)(1) Not later than 180 days after the
date of enactment of the Mountain Park Project Act of
1994, the Secretary of the Interior (referred to in this sec-
tion as the ‘Secretary’) shall—
‘‘(A) conduct appropriate investigations to de-
termine environmental quality activities that could
be carried out for the Mountain Park project; and
‘‘(B) on the basis of the determination made
under subparagraph (A), make an appropriate
reallocation of the costs of the project under sections
2 and 3 (referred to in this section as ‘project costs’)
to accommodate the environmental quality activities
that the Secretary authorizes pursuant to this sub-
section.
‘‘(2) In conducting investigations under this sub-
section, the Secretary shall examine the benefits to natural
environmental resources achievable from an environmental
quality activity that requires reallocating water or using
facilities or land of the Mountain Park project, including
any of the following activities:
‘‘(A) Developing in-stream flows.
‘‘(B) Developing wetland habitat.
‘‘(C) Any other environmental quality activity
that the Secretary determines to be appropriate to
benefit the overall quality of the environment.
‘‘(b)(1) Upon completion of the investigations under
subsection (a)(2), the Secretary shall carry out the follow-
ing:
‘‘(A) The preparation of a proposed reallocation
of project costs in conformance with subsection
(a)(1)(B).
‘‘(B) Negotiations with the Mountain Park
Master Conservancy District (referred to in this sec-
tion as the ‘District’) to amend the contract exe-
cuted by the District pursuant to this Act to adjust
the obligation of the District to repay project costs,
as described in section 2, to reflect the reallocation
of nonreimbursable project costs.
‘‘(2) For the purposes of paragraph (1), project costs
associated with an environmental quality activity specified
by the Secretary pursuant to subsection (a)(2) shall be
nonreimbursable project costs.
‘‘(c)(1) Notwithstanding any other provision of this
Act, the Secretary is authorized to accept prepayment of
the repayment obligation of the District for the reimburs-
able construction costs of the project allocated to munici-
pal and industrial water supply for the city of Altus, Okla-
homa, the city of Frederick, Oklahoma, or the city of Sny-
der, Oklahoma (or any combination thereof), and, upon
receipt of such prepayment, the District’s obligation to the
United States shall be reduced by the amount of such
costs, and any security held therefor, shall be released by
the Secretary.
‘‘(2) Any prepayment made pursuant to subsection
(c)(1) shall realize to the United States an amount cal-
culated by discounting the remaining repayment obligation
by the interest rate determined in accordance with sub-
section (d).
‘‘(d)(1) The Secretary shall determine the interest
rate in accordance with the guidelines set forth in Circular
A–129 issued by the Office of Management and Budget
concerning loan sales and prepayment of loans. In deter-
mining the interest rate, the Secretary shall equate an ap-
propriate amount of prepayment with the price of the Dis-
trict’s obligation if it were to be sold on the open market
to a third party.
‘‘(2) If the District uses tax-exempt financing to fi-
nance a prepayment under subsection (c)(1), then the in-
terest rate by which the Secretary discounts the remaining
payments due on the District’s obligation shall be adjusted
by an amount that compensates the United States for the
direct or indirect loss of future tax revenues.
‘‘(e) Notwithstanding any payment made by the Dis-
trict pursuant to this section or pursuant to any contract
with the Secretary, title to the project facilities shall re-
main with the United States.’’.
(c) REPEAL.—Section 3101 of the Reclamation
Projects Authorization and Adjustment Act of 1992 (Pub-
lic Law 102–575; 106 Stat. 4698) is repealed.
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