per year from the Ute Reservoir to the cities of 
Clovis, Elida, Grady, Melrose, Portales, and 
Texico and other locations in Curry, Roosevelt, 
and Quay Counties in the State. 
(B) INCLUSIONS.—The term ‘‘System’’ in-
cludes the major components and associated in-
frastructure identified as the ‘‘Best Technical 
Alternative’’ in the engineering report. 
(7) UTE
RESERVOIR.—The term ‘‘Ute Res-
ervoir’’ means the impoundment of water created in 
1962 by the construction of the Ute Dam on the Ca-
nadian River, located approximately 32 miles up-
stream of the border between New Mexico and 
Texas. 
SEC. 3. EASTERN NEW MEXICO RURAL WATER SYSTEM. 
(a) FINANCIAL ASSISTANCE.— 
(1) IN GENERAL.—The Secretary may provide 
financial and technical assistance to the Authority to 
assist in planning, designing, conducting related 
preconstruction activities for, and constructing the 
System. 
(2) USE.— 
(A) IN
GENERAL.—Any financial assist-
ance provided under paragraph (1) shall be ob-
ligated and expended only in accordance with a
cooperative agreement entered into under sec-
tion 5(a)(2). 
(B) LIMITATIONS.—Financial assistance 
provided under paragraph (1) shall not be 
used— 
(i) for any activity that is inconsistent 
with constructing the System; or 
(ii) to plan or construct facilities used 
to supply irrigation water for irrigated ag-
ricultural purposes. 
(b) COST-SHARING REQUIREMENT.— 
(1) IN GENERAL.—The Federal share of the 
total cost of any activity or construction carried out 
using amounts made available under this Act shall 
be not more than 75 percent of the total cost of the 
System. 
(2) SYSTEM DEVELOPMENT COSTS.—For pur-
poses of paragraph (1), the total cost of the System 
shall include any costs incurred by the Authority or 
the State on or after October 1, 2003, for the devel-
opment of the System. 
(c) LIMITATION.—No amounts made available under 
this Act may be used for the construction of the System 
until— 
(1) a plan is developed under section 4(b); and
(2) the Secretary and the Authority have com-
plied with any requirements of the National Envi-
ronmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.) applicable to the System. 
(d) TITLE TO PROJECT WORKS.—Title to the infra-
structure of the System shall be held by the Authority or 
as may otherwise be specified under State law. 
SEC. 4. OPERATION, MAINTENANCE, AND REPLACEMENT 
COSTS. 
(a) IN GENERAL.—The Authority shall be responsible 
for the annual operation, maintenance, and replacement 
costs associated with the System. 
(b) OPERATION, MAINTENANCE, AND REPLACEMENT 
PLAN.—The Authority, in consultation with the Secretary, 
shall develop an operation, maintenance, and replacement 
plan that establishes the rates and fees for beneficiaries 
of the System in the amount necessary to ensure that the 
System is properly maintained and capable of delivering 
approximately 16,500 acre-feet of water per year. 
SEC. 5. ADMINISTRATIVE PROVISIONS. 
(a) COOPERATIVE AGREEMENTS.— 
(1) IN
GENERAL.—The Secretary may enter 
into any contract, grant, cooperative agreement, or 
other agreement that is necessary to carry out this 
Act.
(2) COOPERATIVE AGREEMENT FOR PROVISION 
OF FINANCIAL ASSISTANCE.— 
(A) IN
GENERAL.—The Secretary shall 
enter into a cooperative agreement with the Au-
thority to provide financial assistance and any 
other assistance requested by the Authority for 
planning, design, related preconstruction activi-
ties, and construction of the System. 
(B) 
REQUIREMENTS.—The 
cooperative 
agreement entered into under subparagraph (A) 
shall, at a minimum, specify the responsibilities 
of the Secretary and the Authority with respect 
to— 
(i) ensuring that the cost-share re-
quirements established by section 3(b) are 
met; 
(ii) completing the planning and final 
design of the System; 
(iii) any environmental and cultural 
resource compliance activities required for 
the System; and 
(iv) the construction of the System. 
(b) TECHNICAL ASSISTANCE.—At the request of the 
Authority, the Secretary may provide to the Authority any 
technical assistance that is necessary to assist the Author-
ity in planning, designing, constructing, and operating the 
System. 
(c) BIOLOGICAL ASSESSMENT.—The Secretary shall 
consult with the New Mexico Interstate Stream Commis-
sion and the Authority in preparing any biological assess-
ment under the Endangered Species Act of 1973 (16 
U.S.C. 1531 et seq.) that may be required for planning 
and constructing the System. 
(d) EFFECT.—Nothing in this Act–— 
(1) affects or preempts— 
(A) State water law; or 
(B) an interstate compact relating to the 
allocation of water; or 
(2) confers on any non-Federal entity the abil-
ity to exercise any Federal rights to— 
(A) the water of a stream; or 
(B) any groundwater resource. 
SEC. 6. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—In accordance with the adjust-
ment carried out under subsection (b), there is authorized 
to be appropriated to the Secretary to carry out this Act 
an amount not greater than $327,000,000. 
(b) ADJUSTMENT.—The amount made available 
under subsection (a) shall be adjusted to reflect changes 
in construction costs occurring after January 1, 2007, as