To authorize the Secretary of the Interior to establish a program to facilitate the transfer to non-Federal ownership of appropriate reclamation projects or facilities, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reclamation Title Transfer Act of 
2008''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Eligible facility.--The term ``eligible facility'' 
        means a reclamation project or facility, or a portion of such a 
        project or facility (which may include dams and appurtenant 
        works, water rights, infrastructure, 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 5.
            (2) Qualifying entity.--The term ``qualifying entity'' 
        means an agency of a State or local government or an Indian 
        tribe, a municipal corporation, public agency, or other entity 
        such as a water district, that--
                    (A) held or holds a water service contract, 
                repayment contract, water rights settlement contract or 
                exchange 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 conveyed property for the 
                same purposes that the property has been managed under 
                reclamation law.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (4) Conveyed property.--The term ``conveyed property'' 
        means an eligible facility that has been transferred out of 
        Federal ownership under this Act.

SEC. 3. AUTHORIZATION OF TITLE TRANSFER PROGRAM.

    (a) Title Transfer Program.--Not later than one year after the date 
of the enactment of this Act, the Secretary shall establish a program 
to--
            (1) identify and analyze the potential for public benefits 
        from the transfer out of Federal ownership of eligible 
        facilities, which may include an analysis of the financial, 
        operational, water supply, and environmental characteristics of 
        the properties proposed for transfer; and
            (2) facilitate transfer of title of eligible facilities out 
        of Federal ownership to promote more efficient management of 
        water and water-related facilities.
    (b) Authorization To Transfer Title to Eligible Facilities.--The 
Secretary, without further authorization from Congress, is authorized 
to convey all right, title, and interest in any eligible facility to a 
qualifying entity, provided that--
            (1) the Secretary shall retain any mineral interests 
        associated with the conveyed property, but all mineral 
        interests retained by the United States under this Act shall be 
        managed consistent with Federal law in a manner so as not to 
        interfere with the purposes for which the eligible facility was 
        authorized;
            (2) interests in water shall be conveyed under this Act by 
        a written Agreement between the Secretary and the qualifying 
        entity; and
            (3) 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 the 
        existing power customers of the eligible facility.

SEC. 4. COMPLIANCE WITH ENVIRONMENTAL AND HISTORIC PRESERVATION LAWS.

    Before conveying land and facilities under this Act, the Secretary 
shall complete all actions required under all applicable laws, 
including--
            (1) the National Environmental Policy Act of 1969 (42 
        U.S.C. 4321 et seq.);
            (2) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
        seq.); and
            (3) the National Historic Preservation Act of 1966 (16 
        U.S.C. 470a et seq.).

SEC. 5. ELIGIBILITY CRITERIA FOR TITLE TRANSFER UNDER THIS ACT.

    Not later than one year after the date of the enactment 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) A 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 Secretary's 
        responsibility to protect land and water resources held in 
        trust for federally recognized Indian tribes.
            (5) The transfer is consistent with the Secretary'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, compensation to 
        the United States worth the equivalent of the net 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.
            (7) Interests in water shall only be eligible for 
        conveyance under this Act--
                    (A) in connection with a conveyance of title to 
                associated land or infrastructure; and
                    (B) when the qualifying entity already has a 
                contractual right to delivery or other interest or use 
                right in the water being considered for conveyance.
            (8) No conveyance under this Act may--
                    (A) adversely impact power rates or repayment 
                obligations; or
                    (B) include a Federal facility that produces power 
                that is sold to or eligible to be sold to power 
                customers pursuant to section 9(c) of the Reclamation 
                Project Act of 1939 (43 U.S.C. 485h(c)).

SEC. 6. LIABILITY.

    Effective upon the date of conveyance of any eligible facility 
pursuant to this Act, the United States shall not be liable under any 
law for damages of any kind arising out of any act, omission, or 
occurrence based on its prior ownership or operation of the conveyed 
property.

SEC. 7. BENEFITS.

    After a conveyance of title under this Act--
            (1) the conveyed property shall not be considered to be a 
        part of a Federal reclamation project; and
            (2) the entity to which the property is conveyed shall not 
        be eligible to receive any benefits, including project power, 
        with respect to the conveyed property, except benefits that 
        would be available to a similarly situated entity with respect 
        to property that is not part of a Federal reclamation project.

SEC. 8. COMPLIANCE WITH OTHER LAWS.

    (a) In General.--After a conveyance of title under this Act, the 
entity to which the property is conveyed shall comply with all 
applicable Federal, State, and local laws and regulations in its 
operation of the conveyed property.
    (b) Applicable Authority.--In accordance with section 213(a) and 
(b) of the Reclamation Reform Act of 1982 (96 Stat. 1269), the 
ownership and full-cost pricing limitations of Federal reclamation law 
(the Act of June 17, 1902 (43 U.S.C. 371 et seq.), and Acts 
supplementary thereto and amendatory thereof) shall not apply to water 
in which an interest is conveyed to a qualifying entity under this Act, 
except that all provisions of Federal reclamation law shall be 
applicable to project water provided to the entity from facilities that 
are part of a Federal reclamation project.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary to carry out this Act. These funds may be used to carry out 
the investigations authorized under this Act, and for other costs 
associated with title transfer under this Act, including an appropriate 
Federal share of the costs of compliance with the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and other 
applicable Federal law. Expenditures made by the Secretary under this 
Act shall not be a project cost assignable to any Federal reclamation 
project and shall be nonreimbursable.

SEC. 10. REPORT.

    Not later than two years after the date that funds are made 
available for this Act, the Secretary shall submit a report to the 
Natural Resources Committee of the House of Representatives and the 
Energy and Natural Resources Committee of the Senate. The report 
shall--
            (1) describe actions taken to implement this Act;
            (2) list conveyances made under this Act;
            (3) state the amount of Federal funds obligated or expended 
        to carry out this Act; and
            (4) describe factors that limit conveyances under in this 
        Act.

SEC. 11. RECLAMATION LAW.

    This Act shall amend and supplement the Act of June 17, 1902 (32 
Stat. 388, chapter 1093), and Acts supplementary thereto and amendatory 
thereof (43 U.S.C. 371 et seq.).

Summary: Reclamation Title Transfer Act of 2008 - Directs the Secretary of the Interior to establish a program to: (1) identify and analyze the potential for public benefits from the transfer out of federal ownership of eligible reclamation projects or facilities; and (2) facilitate such transfer to promote more efficient management of water and water-related facilities.

Authorizes the Secretary to convey title in any such facility to a qualifying entity (including an agency of a state or local government or Indian tribe, a municipal corporation, or another entity such as a water district), provided that: (1) the Secretary retains any associated mineral interests; (2) water interests are conveyed by written agreement; and (3) interests in eligible facilities are conveyed by an agreement developed in consultation with the facility's existing power customers.

Requires the Secretary to: (1) complete all actions required under all applicable laws (including environmental and historic preservation laws) before conveying land and facilities; and (2) establish criteria for determining whether facilities are eligible for title transfer, including requirements that a qualifying entity agrees to accept title to the property and that the proposed title transfer will not have an unmitigated significant effect on the environment.

Shields the United States from liability for any act, omission, or occurrence based on its prior ownership or operation of the conveyed property. Requires a recipient entity to comply with all applicable laws and regulations in its operation of conveyed property.