SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Reclamation Title 
Transfer and Non-Federal Infrastructure Incentivization 
Act’’. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
(2) ELIGIBLE FACILITY.—The term ‘‘eligible fa-
cility’’— 
(A) means a reclamation project or facility, 
or a portion of such a project or facility (which 
may include dams and appurtenant works, in-
frastructure, recreational facilities, buildings, 
distribution and drainage works, and associated 
lands or interests in lands or water) that meets 
the criteria for potential transfer established 
pursuant to section 4; and 
(B) does not include a reclamation facility 
or separately functioning portion of such facility 
that generates hydropower marketed by a power 
marketing administration. 
(3) QUALIFYING
ENTITY.—The term ‘‘quali-
fying entity’’ means an agency of a State political 
subdivision, joint action or powers agency, water
users association, Indian Tribe or Tribal utility au-
thority, that— 
(A) held or holds a water service contract, 
repayment contract, operation and maintenance 
contract, water rights settlement contract or ex-
change contract providing for water service 
from the eligible facility to be transferred; and 
(B) as determined by the Secretary, has 
the capacity to continue to manage the con-
veyed property for the same purposes by which 
the property has been managed under reclama-
tion law. 
(4) CONVEYED
PROPERTY.—The term ‘‘con-
veyed property’’ means an eligible facility that has 
been transferred out of Federal ownership under 
this Act. 
SEC. 3. AUTHORIZATION OF TITLE TRANSFER. 
(a) IN GENERAL.—The Secretary may convey to a 
qualifying entity all right, title, and interest of the United 
States in and to any eligible facility, subject to subsections 
(b) and (c), if— 
(1) the Secretary notifies Congress in writing of 
the proposed conveyance, and the reasons for the 
conveyance, not later than 90 days before the date 
on which the Secretary makes the conveyance; and
(2) Congress does not pass a joint resolution 
disapproving the conveyance before such date. 
(b) ASSOCIATED WATER RIGHTS AND USES.—Fed-
eral interests in associated water rights and uses, if in-
cluded, shall be conveyed in accordance with applicable 
State law under this Act by a written agreement between 
the Secretary and the qualifying entity. 
(c) CONSULTATION.—Interests in eligible facilities 
shall be conveyed under this Act by a written agreement 
between the Secretary and the qualifying entity, developed 
in consultation with any existing water and power cus-
tomers affected by the eligible facility. 
(d) RIGHT OF FIRST REFUSAL.—If the entity that 
operates and maintains an eligible facility at the time that 
the Secretary attempts to facilitate the conveyance under 
subsection (c) is a qualifying entity, that entity shall have 
the right of first refusal to receive the conveyance under 
this Act. 
SEC. 4. ELIGIBILITY CRITERIA FOR TITLE TRANSFER 
UNDER THIS ACT. 
Not later than one year after the date of the enact-
ment of this Act, the Secretary shall establish criteria for 
determining whether facilities are eligible for title transfer 
under this Act. The criteria shall include the following 
minimum requirements:
(1) The qualifying entity agrees to accept title 
to the property proposed for transfer. 
(2) The proposed title transfer will not have an 
unmitigated significant effect on the environment. 
(3) The qualifying entity intends to use the 
property for substantially the same purposes the 
property is being used for at the time the Secretary 
evaluates the potential transfer. 
(4) The transfer is consistent with the Sec-
retary’s responsibility to protect land and water re-
sources held in trust for federally recognized Indian 
Tribes. 
(5) The transfer is consistent with the Sec-
retary’s responsibility to ensure compliance with 
international treaties and interstate compacts. 
(6) The qualifying entity agrees to provide, as 
consideration for the assets to be conveyed, com-
pensation to the United States worth the equivalent 
of the present value of any repayment obligation to 
the United States or other income stream the United 
States derives from the assets to be transferred at 
the time of the transfer.
SEC. 5. OTHER CONDITIONS FOR CONVEYANCES. 
(a) POWER RATES.—No conveyance under this Act 
may adversely impact power rates or repayment obliga-
tions. 
(b) NEPA.—The Secretary shall apply a categorical 
exclusion process under the National Environmental Pol-
icy Act of 1969 (42 U.S.C. 4321 et seq.) on eligible facili-
ties under this Act. 
SEC. 6. LIABILITY. 
Effective upon the date of conveyance of any eligible 
facility pursuant to this Act, the United States shall not 
be liable for damages of any kind arising out of any act, 
omission, or occurrence based on its prior ownership or 
operation of the conveyed property, except for damages 
caused by acts of negligence committed by the United 
States or by its employees, agents, or contractors, prior 
to conveyance. 
SEC. 7. BENEFITS. 
After a conveyance under this Act— 
(1) the conveyed property shall not be consid-
ered to be a part of a Federal reclamation project; 
and 
(2) in the event that a transfer of an entire 
project occurs, the entity to which the property is 
conveyed shall not be eligible to receive any benefits, 
including project power, with respect to the conveyed