I 
109TH CONGRESS 
1ST SESSION H. R. 4418 
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 HOUSE OF REPRESENTATIVES 
NOVEMBER 18, 2005 
Mr. PEARCE introduced the following bill; which was referred to the 
Committee on Resources 
A BILL 
To direct the Secretary of the Interior to establish a rural 
water supply program in the Reclamation States to pro-
vide a clean, safe, affordable, and reliable water supply 
to rural residents. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Rural Water Supply Act of 2005’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—RECLAMATION RURAL WATER SUPPLY ACT OF 2005
Sec. 101. Short title. 
Sec. 102. Definitions. 
Sec. 103. Rural water supply program. 
Sec. 104. Rural water programs assessment. 
Sec. 105. Appraisal investigations. 
Sec. 106. Feasibility studies. 
Sec. 107. Miscellaneous. 
Sec. 108. Authorization of appropriations. 
TITLE II—TWENTY-FIRST CENTURY WATER WORKS ACT 
Sec. 201. Short title. 
Sec. 202. Definitions. 
Sec. 203. Project eligibility. 
Sec. 204. Loan guarantees. 
Sec. 205. Operations, maintenance, and replacement costs. 
Sec. 206. Title to newly constructed facilities. 
Sec. 207. Water rights. 
Sec. 208. Interagency coordination and cooperation. 
Sec. 209. Authorization of appropriations. 
TITLE I—RECLAMATION RURAL 
WATER SUPPLY ACT OF 2005 
SEC. 101. SHORT TITLE. 
This title may be cited as the ‘‘Reclamation Rural 
Water Supply Act of 2005’’. 
SEC. 102. DEFINITIONS. 
In this title: 
(1) CONSTRUCTION.—The term ‘‘construction’’ 
means the installation of new infrastructure and the 
upgrading of existing facilities in locations in which 
the infrastructure or facilities are associated with 
the new infrastructure of a rural water project rec-
ommended by the Secretary pursuant to this title. 
(2) FEDERAL RECLAMATION LAW.—The term 
‘‘Federal reclamation law’’ means the Act of June 
17, 1902 (32 Stat. 388, chapter 1093), and Acts
supplemental to and amendatory of that Act (43 
U.S.C. 371 et seq.). 
(3) INDIAN.—The term ‘‘Indian’’ means an in-
dividual who is a member of an Indian tribe. 
(4) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning given the term in section 4 of the 
Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b). 
(5) NON-FEDERAL
PROJECT
ENTITY.—The 
term ‘‘non-Federal project entity’’ means a State, 
regional, or local authority, Indian tribe or tribal or-
ganization, or other qualifying entity, such as a 
water conservation district, water conservancy dis-
trict, or rural water district or association. 
(6) OPERATIONS, 
MAINTENANCE, 
AND
RE-
PLACEMENT COSTS.— 
(A) IN GENERAL.—The term ‘‘operations, 
maintenance, and replacement costs’’ means all 
costs for the operation of a rural water supply 
project that are necessary for the safe, efficient, 
and continued functioning of the project to 
produce the benefits described in a feasibility 
study.
(B) INCLUSIONS.—The term ‘‘operations, 
maintenance, 
and 
replacement 
costs’’ 
in-
cludes— 
(i) repairs of a routine nature that 
maintain a rural water supply project in a 
well kept condition; 
(ii) replacement of worn-out project 
elements; and 
(iii) rehabilitation activities necessary 
to bring a deteriorated project back to the 
original condition of the project. 
(C) EXCLUSION.—The term ‘‘operations, 
maintenance, and replacement costs’’ does not 
include construction costs. 
(7) PROGRAM.—The term ‘‘Program’’ means 
the rural water supply program established under 
section 103. 
(8) RECLAMATION
STATES.—The term ‘‘Rec-
lamation States’’ means the States and areas re-
ferred to in the first section of the Act of June 17, 
1902 (43 U.S.C. 391). 
(9) RURAL WATER SUPPLY PROJECT.— 
(A) IN GENERAL.—The term ‘‘rural water 
supply project’’ means a project that is de-
signed to serve a community or group of com-
munities, each of which has a population of not 
more than 50,000 inhabitants, which may in-
clude Indian tribes and tribal organizations, 
dispersed homesites, or rural areas with domes-
tic, industrial, municipal, and residential water. 
(B) INCLUSION.—The term ‘‘rural water 
supply project’’ includes— 
(i) incidental noncommercial livestock 
watering and noncommercial irrigation of 
vegetation and small gardens of less than 
1 acre; and 
(ii) a project to improve rural water 
infrastructure, including— 
(I) pumps, pipes, wells, and other 
diversions; 
(II) storage tanks and small im-
poundments; 
(III) water treatment facilities 
for potable water supplies, including 
desalination facilities; 
(IV) equipment and management 
tools for water conservation, ground-
water recovery, and water recycling; 
and 
(V) appurtenances.
(C) EXCLUSION.—The term ‘‘rural water 
supply project’’ does not include— 
(i) commercial irrigation; or 
(ii) major impoundment structures. 
(10) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of the Interior. 
(11) TRIBAL ORGANIZATION.—The term ‘‘tribal 
organization’’ means— 
(A) the recognized governing body of an 
Indian tribe; and 
(B) any legally established organization of 
Indians that is controlled, sanctioned, or char-
tered by the governing body or democratically 
elected by the adult members of the Indian 
community to be served by the organization. 
SEC. 103. RURAL WATER SUPPLY PROGRAM. 
(a) IN GENERAL.—The Secretary, in cooperation 
with non-Federal project entities and consistent with this 
title, shall establish and carry out a rural water supply 
program in Reclamation States to— 
(1) investigate and identify opportunities to en-
sure safe and adequate rural water supply projects 
for domestic, municipal, and industrial use in small 
communities and rural areas of the Reclamation 
States;
(2) plan the design and construction, through 
the conduct of appraisal investigations and feasi-
bility studies, of rural water supply projects in Rec-
lamation States; and 
(3) oversee, as appropriate, the construction of 
rural water supply projects in Reclamation States 
that are recommended by the Secretary in a feasi-
bility report developed pursuant to section 106 and 
subsequently authorized by Congress. 
(b) NON-FEDERAL PROJECT ENTITY.—Any activity 
carried out under this title shall be carried out in coopera-
tion with a qualifying non-Federal project entity, con-
sistent with this title. 
(c) ELIGIBILITY CRITERIA.—Not later than 1 year 
after the date of enactment of this Act, the Secretary 
shall, consistent with this title, develop and publish in the 
Federal Register criteria for— 
(1) determining the eligibility of a rural com-
munity for assistance under the Program; and 
(2) prioritizing requests for assistance under 
the Program. 
(d) FACTORS.—The criteria developed under sub-
section (c) shall take into account such factors as wheth-
er— 
(1) a rural water supply project—
(A) serves— 
(i) rural areas and small communities; 
or 
(ii) Indian tribes; or 
(B) promotes and applies a regional or wa-
tershed perspective to water resources manage-
ment; 
(2) there is an urgent and compelling need for 
a rural water supply project that would— 
(A) improve the health or aesthetic quality 
of water; 
(B) result in continuous, measurable, and 
significant water quality benefits; or 
(C) address current or future water supply 
needs; 
(3) a rural water supply project helps meet ap-
plicable requirements established by law; and 
(4) a rural water supply project is cost effec-
tive. 
(e) INCLUSIONS.—The Secretary may include— 
(1) to the extent that connection provides a reli-
able water supply, a connection to preexisting infra-
structure (including impoundments and conveyance 
channels) as part of a rural water supply project; 
and
(2) notwithstanding the limitation on popu-
lation under section 102(9)(A), a town or commu-
nity with a population in excess of 50,000 inhab-
itants in an area served by a rural water supply 
project if, at the discretion of the Secretary, the 
town or community is considered to be a critical 
partner in the rural supply project. 
SEC. 104. RURAL WATER PROGRAMS ASSESSMENT. 
(a) IN GENERAL.—In consultation with the Secretary 
of Agriculture, the Administrator of the Environmental 
Protection Agency, the Director of the Indian Health 
Service, the Secretary of Housing and Urban Develop-
ment, and the Secretary of the Army, the Secretary shall 
develop an assessment of— 
(1) the status of all rural water supply projects 
under the jurisdiction of the Secretary authorized 
but not completed prior to the date of enactment of 
this Act, including appropriation amounts, the phase 
of development, total anticipated costs, and obstacles 
to completion; 
(2) the current plan (including projected finan-
cial and workforce requirements) for the completion 
of the projects identified in paragraph (1) within the 
time frames established under the provisions of law
authorizing the projects or the final engineering re-
ports for the projects; 
(3) the demand for new rural water supply 
projects; 
(4) rural water programs within other agencies 
and a description of the extent to which those pro-
grams provide support for rural water supply 
projects and water treatment programs in Reclama-
tion States, including an assessment of the require-
ments, funding levels, and conditions of eligibility for 
the programs assessed; 
(5) the extent of the demand that the Secretary 
can meet with the Program; 
(6) how the Program will complement authori-
ties already within the jurisdiction of the Secretary 
and the heads of the agencies with whom the Sec-
retary consults; and 
(7) improvements that can be made to coordi-
nate and integrate the authorities of the agencies 
with programs evaluated under paragraph (4), in-
cluding any recommendations to consolidate some or 
all of the activities of the agencies with respect to 
rural water supply. 
(b) CONSULTATION WITH STATES.—Before final-
izing the assessment developed under subsection (a), the
Secretary shall solicit comments from States with identi-
fied rural water needs. 
(c) REPORT.—Not later than 2 years after the date 
of enactment of this Act, the Secretary shall submit to 
the Committee on Energy and Natural Resources of the 
Senate and the Committee on Resources of the House of 
Representatives a detailed report on the assessment con-
ducted under subsection (a). 
SEC. 105. APPRAISAL INVESTIGATIONS. 
(a) IN GENERAL.—On request of a non-Federal 
project entity with respect to a proposed rural water sup-
ply project that meets the eligibility criteria published 
under section 103(c) and subject to the availability of ap-
propriations, the Secretary may— 
(1) receive and review an appraisal investiga-
tion that is— 
(A) developed by the non-Federal project 
entity, with or without support from the Sec-
retary; and 
(B) submitted to the Secretary by the non- 
Federal project entity; 
(2) conduct an appraisal investigation; or 
(3) provide a grant to, or enter into a coopera-
tive agreement with, the non-Federal project entity
to conduct an appraisal investigation, if the Sec-
retary determines that— 
(A) the non-Federal project entity is quali-
fied to complete the appraisal investigation in 
accordance with the criteria published under 
section 103(c); and 
(B) using the non-Federal project entity to 
conduct the appraisal investigation is a cost-ef-
fective alternative for completing the appraisal 
investigation. 
(b) DEADLINE.—An appraisal investigation con-
ducted under subsection (a) shall be scheduled for comple-
tion not later than 2 years after the date on which the 
appraisal investigation is initiated. 
(c) APPRAISAL REPORT.—In accordance with sub-
section (f), after an appraisal investigation is submitted 
to the Secretary under subsection (a)(1) or completed 
under paragraph (2) or (3) of subsection (a), the Sec-
retary shall prepare an appraisal report that— 
(1) considers— 
(A) whether the project meets— 
(i) the appraisal criteria developed 
under subsection (d); and 
(ii) the eligibility criteria developed 
under section 103(c);
(B) whether viable water supplies and 
water rights exist to supply the project, includ-
ing all practicable water sources such as lower 
quality waters, nonpotable waters, and water 
reuse-based water supplies; 
(C) whether the project has a positive ef-
fect on public health and safety; 
(D) whether the project will meet water de-
mand, including projected future needs; 
(E) the extent to which the project pro-
vides environmental benefits, including source 
water protection; 
(F) whether the project applies a regional 
or watershed perspective and promotes benefits 
in the region in which the project is carried out; 
(G) whether the project— 
(i)(I) implements an integrated re-
sources management approach; or 
(II) 
enhances 
water 
management 
flexibility, including providing for— 
(aa) local control to manage 
water supplies under varying water 
supply conditions; and
(bb) participation in water bank-
ing and markets for domestic and en-
vironmental purposes; and 
(ii) promotes long-term protection of 
water supplies; 
(H) preliminary cost estimates for the 
project; and 
(I) whether the non-Federal project entity 
has the capability to pay 100 percent of the 
costs associated with the operations, mainte-
nance, and replacement of the facilities con-
structed or developed as part of the rural water 
supply project; and 
(2) provides recommendations on whether a fea-
sibility study should be initiated under section 
106(a). 
(d) APPRAISAL CRITERIA.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, the Secretary 
shall promulgate criteria (including appraisal factors 
listed under subsection (c)) against which the ap-
praisal investigations shall be assessed for complete-
ness and appropriateness for a feasibility study. 
(2) INCLUSIONS.—To minimize the cost of a 
rural water supply project to a non-Federal project
entity, the Secretary shall include in the criteria 
methods to scale the level of effort needed to com-
plete the appraisal investigation relative to the total 
size and cost of the proposed rural water supply 
project. 
(e) REVIEW OF APPRAISAL INVESTIGATION.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of submission of an appraisal investigation 
under paragraph (1) or (3) of subsection (a), the 
Secretary shall provide to the non-Federal entity 
that conducted the investigation a determination of 
whether the investigation has included the informa-
tion necessary to determine whether the proposed 
rural water supply project satisfies the criteria pro-
mulgated under subsection (d). 
(2) NO
SATISFACTION
OF
CRITERIA.—If the 
Secretary determines that the appraisal investigation 
submitted by a non-Federal entity does not satisfy 
the criteria promulgated under subsection (d), the 
Secretary shall inform the non-Federal entity of the 
reasons why the appraisal investigation is deficient. 
(3) RESPONSIBILITY OF SECRETARY.—If an ap-
praisal investigation as first submitted by a non- 
Federal entity does not provide all necessary infor-
mation, as defined by the Secretary, the Secretary
shall have no obligation to conduct further analysis 
until the non-Federal project entity submitting the 
appraisal study conducts additional investigation and 
resubmits the appraisal investigation under this sub-
section. 
(f) APPRAISAL REPORT.—Once the Secretary has de-
termined that an investigation provides the information 
necessary under subsection (e), the Secretary shall— 
(1) complete the appraisal report required 
under subsection (c); 
(2) make available to the public, on request, the 
appraisal report prepared under this title; and 
(3) promptly publish in the Federal Register a 
notice of the availability of the results. 
(g) COSTS.— 
(1) FEDERAL SHARE.—The Federal share of an 
appraisal investigation conducted under subsection 
(a) shall be 100 percent of the total cost of the ap-
praisal investigation, up to $200,000. 
(2) NON-FEDERAL SHARE.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), if the cost of conducting an 
appraisal investigation is more than $200,000, 
the non-Federal share of the costs in excess of 
$200,000 shall be 50 percent.
(B) EXCEPTION.—The Secretary may re-
duce the non-Federal share required under sub-
paragraph (A) if the Secretary determines that 
there is an overwhelming Federal interest in the 
appraisal investigation. 
(C) FORM.—The non-Federal share under 
subparagraph (A) may be in the form of any in- 
kind services that the Secretary determines 
would contribute substantially toward the con-
duct and completion of the appraisal investiga-
tion. 
(h) CONSULTATION; IDENTIFICATION OF FUNDING 
SOURCES.—In conducting an appraisal investigation 
under subsection (a)(2), the Secretary shall— 
(1) consult and cooperate with the non-Federal 
project entity and appropriate State, tribal, regional, 
and local authorities; 
(2) consult with the heads of appropriate Fed-
eral agencies to— 
(A) ensure that the proposed rural water 
supply project does not duplicate a project car-
ried out under the authority of the agency head; 
and
(B) if a duplicate project is being carried 
out, identify the authority under which the du-
plicate project is being carried out; and 
(3) identify what funding sources are available 
for the proposed rural water supply project. 
SEC. 106. FEASIBILITY STUDIES. 
(a) IN GENERAL.—On completion of an appraisal re-
port under section 105(c) that recommends undertaking 
a feasibility study and subject to the availability of appro-
priations, the Secretary shall— 
(1) in cooperation with a non-Federal project 
entity, carry out a study to determine the feasibility 
of the proposed rural water supply project; 
(2) receive and review a feasibility study that 
is— 
(A) developed by the non-Federal project 
entity, with or without support from the Sec-
retary; and 
(B) submitted to the Secretary by the non- 
Federal project entity; or 
(3) provide a grant to, or enter into a coopera-
tive agreement with, a non-Federal project entity to 
conduct a feasibility study, for submission to the 
Secretary, if the Secretary determines that—
(A) the non-Federal entity is qualified to 
complete the feasibility study in accordance 
with the criteria promulgated under subsection 
(d); and 
(B) using the non-Federal project entity to 
conduct the feasibility study is a cost-effective 
alternative for completing the appraisal inves-
tigation. 
(b) REVIEW OF NON-FEDERAL FEASIBILITY STUD-
IES.— 
(1) IN GENERAL.—In conducting a review of a 
feasibility study submitted under paragraph (2) or 
(3) of subsection (a), the Secretary shall— 
(A) in accordance with the feasibility fac-
tors described in subsection (c) and the criteria 
promulgated under subsection (d), assess the 
completeness of the feasibility study; and 
(B) if the Secretary determines that a fea-
sibility study is not complete, notify the non- 
Federal entity of the determination. 
(2) REVISIONS.—If the Secretary determines 
under paragraph (1)(B) that a feasibility study is 
not complete, the non-Federal entity shall pay any 
costs associated with revising the feasibility study.
(c) FEASIBILITY FACTORS.—Feasibility studies au-
thorized or reviewed under this title shall include an as-
sessment of— 
(1) near- and long-term water demand in the 
area to be served by the rural water supply project; 
(2) advancement of public health and safety of 
any existing rural water supply project and other 
benefits of the proposed rural water supply project; 
(3) alternative new water supplies in the study 
area, including any opportunities to treat and use 
low-quality water, nonpotable water, water reuse- 
based supplies, and brackish and saline waters 
through innovative and economically viable treat-
ment technologies; 
(4) environmental quality and source water pro-
tection issues related to the rural water supply 
project; 
(5) innovative opportunities for water conserva-
tion in the study area to reduce water use and water 
system costs, including— 
(A) nonstructural approaches to reduce the 
need for the project; and 
(B) demonstration technologies;
(6) the extent to which the project and alter-
natives take advantage of economic incentives and 
the use of market-based mechanisms; 
(7)(A) the construction costs and projected op-
erations, maintenance, and replacement costs of all 
alternatives; and 
(B) the economic feasibility and lowest cost 
method of obtaining the desired results of each alter-
native, taking into account the Federal cost-share; 
(8) the availability of guaranteed loans for a 
proposed rural water supply project; 
(9) the financial capability of the non-Federal 
project entity to pay the non-Federal project entity’s 
proportionate share of the design and construction 
costs and 100 percent of operations, maintenance, 
and replacement costs, including the allocation of 
costs to each non-Federal project entity in the case 
of multiple entities; 
(10) whether the non-Federal project entity has 
developed an operations, management, and replace-
ment plan to assist the non-Federal project entity in 
establishing rates and fees for beneficiaries of the 
rural water supply project that includes a schedule 
identifying the annual operations, maintenance, and
replacement costs that should be allocated to each 
non-Federal entity participating in the project; 
(11)(A) the non-Federal project entity adminis-
trative organization that would implement construc-
tion, operations, maintenance, and replacement ac-
tivities; and 
(B) the fiscal, administrative, and operational 
controls to be implemented to manage the project; 
(12) the extent to which assistance for rural 
water supply is available under other Federal au-
thorities; 
(13) the engineering, environmental, and eco-
nomic activities to be undertaken to carry out the 
proposed rural water supply project; 
(14) the extent to which the project involves 
partnerships with other State, local, or tribal govern-
ments or Federal entities; and 
(15) in the case of a project intended for Indian 
tribes and tribal organizations, the extent to which 
the project addresses the goal of economic self-suffi-
ciency. 
(d) FEASIBILITY STUDY CRITERIA.— 
(1) IN GENERAL.—Not later than 18 months 
after the date of enactment of this Act, the Sec-
retary shall promulgate criteria (including the feasi-
bility factors listed under subsection (c)) under 
which the feasibility studies shall be assessed for 
completeness and appropriateness. 
(2) INCLUSIONS.—The Secretary shall include 
in the criteria promulgated under paragraph (1) 
methods to scale the level of effort needed to com-
plete the feasibility assessment relative to the total 
size and cost of the proposed rural water supply 
project and reduce total costs to non-Federal enti-
ties. 
(e) FEASIBILITY REPORT.— 
(1) IN GENERAL.—After completion of appro-
priate feasibility studies for rural water supply 
projects that address the factors described in sub-
section (c) and the criteria promulgated under sub-
section (d), the Secretary shall— 
(A) develop a feasibility report that in-
cludes— 
(i) a recommendation of the Secretary 
on— 
(I) whether the rural water sup-
ply project should be authorized for 
construction; and
(II) the appropriate non-Federal 
share of construction costs, which 
shall be— 
(aa) at least 25 percent of 
the total construction costs; and 
(bb) determined based on an 
analysis of the capability-to-pay 
information 
considered 
under 
subsections (c)(9) and (f); and 
(ii) if the Secretary recommends that 
the project should be authorized for con-
struction— 
(I) what amount of grants, loan 
guarantees, or combination of grants 
and loan guarantees should be used to 
provide the Federal cost share; 
(II) a schedule that identifies the 
annual operations, maintenance, and 
replacement costs that should be allo-
cated to each non-Federal entity par-
ticipating in the rural water supply 
project; and 
(III) an assessment of the finan-
cial capability of each non-Federal en-
tity participating in the rural water
supply project to pay the allocated an-
nual operation, maintenance, and re-
placement costs for the rural water 
supply project; 
(B) submit the report to the Committee on 
Energy and Natural Resources of the Senate 
and the Committee on Resources of the House 
of Representatives; 
(C) make the report publicly available, 
along with associated study documents; and 
(D) publish in the Federal Register a no-
tice of the availability of the results. 
(f) CAPABILITY-TO-PAY.— 
(1) IN
GENERAL.—In evaluating a proposed 
rural water supply project under this section, the 
Secretary shall— 
(A) consider the financial capability of any 
non-Federal project entities participating in the 
rural water supply project to pay 25 percent or 
more of the capital construction costs of the 
rural water supply project; and 
(B) recommend an appropriate Federal 
share and non-Federal share of the capital con-
struction costs, as determined by the Secretary.
(2) FACTORS.—In determining the financial ca-
pability of non-Federal project entities to pay for a 
rural water supply project under paragraph (1), the 
Secretary shall evaluate factors for the project area, 
relative to the State average, including— 
(A) per capita income; 
(B) median household income; 
(C) the poverty rate; 
(D) the ability of the non-Federal project 
entity to raise tax revenues or assess fees; 
(E) the strength of the balance sheet of 
the non-Federal project entity; and 
(F) the existing cost of water in the re-
gion. 
(3) INDIAN TRIBES.—In determining the capa-
bility-to-pay of Indian tribe project beneficiaries, the 
Secretary may consider deferring the collection of all 
or part of the non-Federal construction costs appor-
tioned to Indian tribe project beneficiaries unless or 
until the Secretary determines that the Indian tribe 
project beneficiaries should pay— 
(A) the costs allocated to the beneficiaries; 
or 
(B) an appropriate portion of the costs. 
(g) COST-SHARING REQUIREMENT.—
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the Federal share of the 
cost of a feasibility study carried out under this sec-
tion shall not exceed 50 percent of the study costs. 
(2) FORM.—The non-Federal share under para-
graph (1) may be in the form of any in-kind services 
that the Secretary determines would contribute sub-
stantially toward the conduct and completion of the 
study. 
(3) FINANCIAL HARDSHIP.—The Secretary may 
increase the Federal share of the costs of a feasi-
bility study if the Secretary determines, based on a 
demonstration of financial hardship, that the non- 
Federal participant is unable to contribute at least 
50 percent of the costs of the study. 
(4) LARGER
COMMUNITIES.—In conducting a 
feasibility study of a rural water supply system that 
includes a community with a population in excess of 
50,000 inhabitants, the Secretary may require the 
non-Federal project entity to pay more than 50 per-
cent of the costs of the study. 
(h) CONSULTATION AND COOPERATION.—In addition 
to the non-Federal project entity, the Secretary shall con-
sult and cooperate with appropriate Federal, State, tribal, 
regional, and local authorities during the conduct of each
feasibility assessment and development of the feasibility 
report conducted under this title. 
SEC. 107. MISCELLANEOUS. 
(a) AUTHORITY OF SECRETARY.—The Secretary may 
enter into contracts, financial assistance agreements, and 
such other agreements, and promulgate such regulations, 
as are necessary to carry out this title. 
(b) TRANSFER OF PROJECTS.—Nothing in this title 
authorizes the transfer of pre-existing facilities or pre-ex-
isting components of any water system from Federal to 
private ownership or from private to Federal ownership. 
(c) FEDERAL RECLAMATION LAW.—Nothing in this 
title supersedes or amends any Federal law associated 
with a project, or portion of a project, constructed under 
Federal reclamation law. 
(d) INTERAGENCY COORDINATION.—The Secretary 
shall coordinate the Program carried out under this title 
with existing Federal and State rural water and waste-
water programs to facilitate the most efficient and effec-
tive solution to meeting the water needs of the non-Fed-
eral project sponsors. 
(e) MULTIPLE INDIAN TRIBES.—In any case in 
which a contract is entered into with, or a grant is made, 
to an organization to perform services benefitting more 
than 1 Indian tribe under this title, the approval of each
such Indian tribe shall be a prerequisite to entering into 
the contract or making the grant. 
(f) OWNERSHIP OF FACILITIES.—Title to any facility 
planned, designed, and recommended for construction 
under this title shall be held by the non-Federal project 
entity. 
(g) EXPEDITED PROCEDURES.—If the Secretary de-
termines that a community to be served by a proposed 
rural water supply project has urgent and compelling 
water needs, the Secretary shall, to the maximum extent 
practicable, expedite appraisal investigations and reports 
conducted under section 105 and feasibility studies and 
reports conducted under section 106. 
(h) EFFECT ON STATE WATER LAW.— 
(1) IN
GENERAL.—Nothing in this title pre-
empts or affects State water law or an interstate 
compact governing water. 
(2) COMPLIANCE
REQUIRED.—The Secretary 
shall comply with State water laws in carrying out 
this title. 
(i) NO ADDITIONAL REQUIREMENTS.—Nothing in 
this title requires a feasibility study for, or imposes any 
other additional requirements with respect to, rural water 
supply projects or programs that are authorized before the 
date of enactment of this Act.
SEC. 108. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—There is authorized to be appro-
priated to carry out this title $20,000,000 for the period 
of fiscal years 2006 through 2015, to remain available 
until expended. 
(b) RURAL WATER PROGRAMS ASSESSMENT.—Of the 
amounts made available under subsection (a), not more 
than $1,000,000 may be made available to carry out sec-
tion 104 for each of fiscal years 2006 and 2007. 
(c) LIMITATION.—No amounts made available under 
this section shall be used to pay construction costs associ-
ated with any rural water supply project. 
TITLE II—TWENTY-FIRST 
CENTURY WATER WORKS ACT 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Twenty-First Century 
Water Works Act’’. 
SEC. 202. DEFINITIONS. 
In this title: 
(1) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning given the term in section 4 of the 
Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b). 
(2) LENDER.—The term ‘‘lender’’ means any 
non-Federal qualified institutional buyer (as defined 
in section 230.144A(a) of title 17, Code of Federal