To authorize the Secretary of the Interior to convey certain lands and facilities of the Provo River Project.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Provo River Project Transfer Act''.

SEC. 2. DEFINITIONS.

    In this Act:
        (1) Agreement.--The term ``Agreement'' means the contract 
    numbered 04-WC-40-8950 and entitled ``Agreement Among the United 
    States, the Provo River Water Users Association, and the 
    Metropolitan Water District of Salt Lake & Sandy to Transfer Title 
    to Certain Lands and Facilities of the Provo River Project'' and 
    shall include maps of the land and features to be conveyed under 
    the Agreement.
        (2) Association.--The term ``Association'' means the Provo 
    River Water Users Association, a nonprofit corporation organized 
    under the laws of the State.
        (3) District.--The term ``District'' means the Metropolitan 
    Water District of Salt Lake & Sandy, a political subdivision of the 
    State.
        (4) Pleasant grove property.--
            (A) In general.--The term ``Pleasant Grove Property'' means 
        the 3.79-acre parcel of land acquired by the United States for 
        the Provo River Project, Deer Creek Division, located at 
        approximately 285 West 1100 North, Pleasant Grove, Utah, as in 
        existence on the date of enactment of this Act.
            (B) Inclusions.--The term ``Pleasant Grove Property'' 
        includes the office building and shop complex constructed by 
        the Association on the parcel of land described in subparagraph 
        (A).
        (5) Provo reservoir canal.--The term ``Provo Reservoir Canal'' 
    means the canal, and any associated land, rights-of-way, and 
    facilities acquired, constructed, or improved by the United States 
    as part of the Provo River Project, Deer Creek Division, extending 
    from, and including, the Murdock Diversion Dam at the mouth of 
    Provo Canyon, Utah, to and including the Provo Reservoir Canal 
    Siphon and Penstock, as in existence on the date of enactment of 
    this Act.
        (6) Salt lake aqueduct.--The term ``Salt Lake Aqueduct'' means 
    the aqueduct and associated land, rights-of-way, and facilities 
    acquired, constructed or improved by the United States as part of 
    the Provo River Project, Aqueduct Division, extending from, and 
    including, the Salt Lake Aqueduct Intake at the base of Deer Creek 
    Dam to and including the Terminal Reservoirs located at 3300 South 
    St. and Interstate Route 215 in Salt Lake City, Utah, as in 
    existence on the date of enactment of this Act.
        (7) Secretary.--The term ``Secretary'' means the Secretary of 
    the Interior or a designee of the Secretary.
        (8) State.--The term ``State'' means the State of Utah.

SEC. 3. CONVEYANCE OF LAND AND FACILITIES.

    (a) Conveyances to Association.--
        (1) Provo reservoir canal.--
            (A) In general.--In accordance with the terms and 
        conditions of the Agreement and subject to subparagraph (B), 
        the Secretary shall convey to the Association, all right, 
        title, and interest of the United States in and to the Provo 
        Reservoir Canal.
            (B) Condition.--The conveyance under subparagraph (A) shall 
        not be completed until the Secretary executes the Agreement and 
        accepts future arrangements entered into by the Association, 
        the District, the Central Utah Water Conservancy District, and 
        the Jordan Valley Water Conservancy District providing for the 
        operation, ownership, financing, and improvement of the Provo 
        Reservoir Canal.
        (2) Pleasant grove property.--In accordance with the terms and 
    conditions of the Agreement, the Secretary shall convey to the 
    Association, all right, title, and interest of the United States in 
    and to the Pleasant Grove Property.
    (b) Conveyance to District.--
        (1) In general.--In accordance with the terms and conditions of 
    the Agreement, and subject to the execution of the Agreement by the 
    Secretary, the Secretary shall convey to the District, all right, 
    title, and interest of the United States in and to Salt Lake 
    Aqueduct.
        (2) Easements.--
            (A) In general.--As part of the conveyance under paragraph 
        (1), the Secretary shall grant to the District permanent 
        easements to--
                (i) the National Forest System land on which the Salt 
            Lake Aqueduct is located; and
                (ii) land of the Aqueduct Division of the Provo River 
            Project that intersects the parcel of non-Federal land 
            authorized to be conveyed to the United States under 
            section 104(a) of Public Law 107-329 (116 Stat. 2816).
            (B) Purpose.--The easements conveyed under subparagraph (A) 
        shall be for the use, operation, maintenance, repair, 
        improvement, or replacement of the Salt Lake Aqueduct by the 
        District.
            (C) Limitation.--The United States shall not carry out any 
        activity on the land subject to the easements conveyed under 
        subparagraph (A) that would materially interfere with the use, 
        operation, maintenance, repair, improvement, or replacement of 
        the Salt Lake Aqueduct by the District.
            (D) Boundaries.--The boundaries of the easements conveyed 
        under subparagraph (A) shall be determined by the Secretary, in 
        consultation with the District and the Secretary of 
        Agriculture.
            (E) Transfer of administrative jurisdiction.--
                (i) In general.--On conveyance of the easement to the 
            land described in subparagraph (A)(ii), the Secretary, 
            subject to the easement, shall transfer to the Secretary of 
            Agriculture administrative jurisdiction over the land.
                (ii) Administrative site.--The land transferred under 
            clause (i) shall be administered by the Secretary of 
            Agriculture as an administrative site.
            (F) Administration.--The easements conveyed under 
        subparagraph (A) shall be administered by the Secretary of 
        Agriculture in accordance with section 501(b)(3) of the Federal 
        Land Policy and Management Act of 1976 (43 U.S.C. 1761(b)(3)).
    (c) Consideration.--
        (1) Association.--
            (A) In general.--In exchange for the conveyance under 
        subsection (a)(1), the Association shall pay the Secretary an 
        amount that is equal to the sum of--
                (i) the net present value of any remaining debt 
            obligation of the United States with respect to the Provo 
            Reservoir Canal; and
                (ii) the net present value of any revenues from the 
            Provo Reservoir Canal that, based on past history--

                    (I) would be available to the United States but for 
                the conveyance of the Provo Reservoir Canal under 
                subsection (a)(1); and
                    (II) would be deposited in the reclamation fund 
                established under the first section of the Act of June 
                17, 1902 (43 U.S.C. 391), and credited under the terms 
                of Reclamation Manual/Directives and Standards PEC 03-
                01.

            (B) Deduction.--In determining the net present values under 
        clauses (i) and (ii) of subparagraph (A), the Association may 
        deduct from the net present value such sums as are required for 
        the reimbursement described in the Agreement.
        (2) District.--
            (A) In general.--In exchange for the conveyance under 
        subsection (b)(1), the District shall pay the Secretary an 
        amount that is equal to the sum of--
                (i) the net present value of any remaining debt 
            obligation of the United States with respect to the Salt 
            Lake Aqueduct; and
                (ii) the net present value of any revenues from the 
            Salt Lake Aqueduct that, based on past history--

                    (I) would have been available to the United States 
                but for the conveyance of the Salt Lake Aqueduct under 
                subsection (b)(1); and
                    (II) would be deposited in the reclamation fund 
                established under the first section of the Act of June 
                17, 1902 (43 U.S.C. 391), and credited under the terms 
                of Reclamation Manual/Directives and Standards PEC 03-
                01.

            (B) Deduction.--In determining the net present values under 
        clauses (i) and (ii) of subparagraph (A), the District may 
        deduct from the net present value such sums as are required for 
        the reimbursement described in the Agreement.
    (d) Payment of Costs.--In addition to amounts paid to the Secretary 
under subsection (c), the Association and the District shall, in 
accordance with the Agreement, pay the Secretary--
        (1) any necessary and reasonable administrative and real estate 
    transfer costs incurred by the Secretary in carrying out the 
    conveyance; and
        (2) one-half of any necessary and reasonable costs associated 
    with complying with--
            (A) the National Environmental Policy Act of 1969 (42 
        U.S.C. 4321 et seq.);
            (B) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
        seq.); and
            (C)(i) the National Historic Preservation Act (16 U.S.C. 
        470 et seq.); and
            (ii) any other Federal cultural resource laws.
    (e) Compliance With Environmental Laws.--
        (1) In general.--Before conveying land and facilities under 
    subsections (a) and (b), the Secretary shall comply with all 
    applicable requirements under--
            (A) the National Environmental Policy Act of 1969 (42 
        U.S.C. 4321 et seq.);
            (B) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
        seq.); and
            (C) any other law applicable to the land and facilities.
        (2) Effect.--Nothing in this Act modifies or alters any 
    obligations under--
            (A) the National Environmental Policy Act of 1969 (42 
        U.S.C. 4321 et seq.); or
            (B) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
        seq.).

SEC. 4. EXISTING CONTRACTS.

    (a) Deer Creek Division Construction Contract.--Notwithstanding the 
conveyances under subsections (a) and (b)(1) of section 3, and subject 
to the terms of the Agreement, any portion of the Deer Creek Division, 
Provo River Project, Utah, that is not conveyed under that section 
shall continue to be operated and maintained by the Association, in 
accordance with the contract numbered I1r-874, dated June 27, 1936, and 
entitled the ``Contract Between the United States and Provo River Water 
Users Association Providing for the Construction of the Deer Creek 
Division of the Provo River Project, Utah''.
    (b) Provo River Project and Jordan Aqueduct System Contracts.--
Subject to the terms of the Agreement, any written contract of the 
United States in existence on the date of enactment of this Act 
relating to the operation and maintenance of any division or facility 
of the Provo River Project or the Jordan Aqueduct System is confirmed 
and declared to be a valid contract of the United States that is 
enforceable in accordance with the express terms of the contract.
    (c) Use of Central Utah Project Water.--
        (1) In general.--Subject to paragraph (2), any entity with 
    contractual Provo Reservoir Canal or Salt Lake Aqueduct capacity 
    rights in existence on the date of enactment of this Act may, in 
    addition to the uses described in the existing contracts, use the 
    capacity rights, without additional charge or further approval from 
    the Secretary, to transport Central Utah Project water on behalf of 
    the entity or others.
        (2) Limitations.--An entity shall not use the capacity rights 
    to transport Central Utah Project water under paragraph (1) 
    unless--
            (A) the transport of the water is expressly authorized by 
        the Central Utah Water Conservancy District;
            (B) the use of the water facility to transport the Central 
        Utah Project water is expressly authorized by the entity 
        responsible for operation and maintenance of the facility; and
            (C) carrying Central Utah Project water through Provo River 
        Project facilities would not--
                (i) materially impair the ability of the Central Utah 
            Water Conservancy District or the Secretary to meet 
            existing express environmental commitments for the 
            Bonneville Unit; or
                (ii) require the release of additional Central Utah 
            Project water to meet those environmental commitments.
    (d) Authorized Modifications.--The Agreement may provide for--
        (1) the modification of the 1936 Repayment Contract for the 
    Deer Creek Division of the Provo River Project to reflect the 
    partial prepayment, the adjustment of the annual repayment amount, 
    and the transfer of the Provo Reservoir Canal and the Pleasant 
    Grove Property; and
        (2) the modification or termination of the 1938 Repayment 
    Contract for the Aqueduct Division of the Provo River Project to 
    reflect the complete payout and transfer of all facilities of the 
    Aqueduct Division.
    (e) Effect of Act.--Nothing in this Act impairs any contract 
(including subscription contracts) in effect on the date of enactment 
of this Act that allows for or creates a right to convey water through 
the Provo Reservoir Canal.

SEC. 5. EFFECT OF CONVEYANCE.

    On conveyance of any land or facility under subsection (a) or 
(b)(1) of section 3--
        (1) the land and facilities shall no longer be part of a 
    Federal reclamation project;
        (2) the Association and the District shall not be entitled to 
    receive any future reclamation benefits with respect to the land 
    and facilities, except for benefits that would be available to 
    other nonreclamation facilities; and
        (3) the United States shall not be liable for damages arising 
    out of any act, omission, or occurrence relating to the land and 
    facilities, but shall continue to be liable for damages caused by 
    acts of negligence committed by the United States or by any 
    employee or agent of the United States before the date of 
    conveyance, consistent with chapter 171 of title 28, United States 
    Code.

SEC. 6. REPORT.

    If a conveyance required under subsection (a) or (b)(1) of section 
3 is not completed by the date that is 18 months after the date of 
enactment of this Act, the Secretary shall submit to Congress a report 
that--
        (1) describes the status of the conveyance;
        (2) describes any obstacles to completing the conveyance; and
        (3) specifies an anticipated date for completion of the 
    conveyance.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

Summary: Provo River Project Transfer Act - (Sec. 3) Directs the Secretary of the Interior to convey to the Provo River Water Users Association (Association) all right, title, and interest of the United States in and to the Provo Reservoir Canal in the State of Utah. Conditions such conveyance upon the execution by the Secretary of the Agreement entitled "Agreement Among the United States, the Provo River Waters Users Association, and the Metropolitan Water District of Salt Lake & Sandy to Transfer Title to Certain Lands and Facilities of the Provo River Project (Agreement)," and upon the Secretary's acceptance of future arrangements governing the operation, ownership, financing, and improvement of the Provo Reservoir Canal.

Directs the Secretary to convey to the Association all right, title, and interest of the United States in and to the Pleasant Grove Property in the State of Utah.

Directs the Secretary to: (1) convey to the Metropolitan Water District of Salt Lake & Sandy (District) in the State of Utah, all right, title, and interest of the United States in and to Salt Lake Aqueduct; (2) grant permanent easements to the District for the use, operation, maintenance, repair, improvement, or replacement of the Salt Lake Aqueduct by the District; (3) determine the boundaries of such easements; and (4) transfer administrative jurisdiction over certain land of the Aqueduct Division of the Provo River Project to the Secretary of Agriculture. Directs the Secretary of Agriculture to administer such land as an administrative site subject to provisions of the Federal Land Policy and Management Act of 1976.

Prohibits the United States from carrying out any activities on the lands covered by the Salt Lake Aqueduct easements that would materially interfere with the operation, maintenance, repair, improvement, or replacement of the Salt Lake Aqueduct by the District.

Sets forth a formula for for payments by the Association and the District for the land conveyances under this Act. Requires the Association and the District to pay certain additional costs relating to the land conveyances.

Requires the Secretary to comply with certain environmental and other laws prior to making land conveyances under this Act.

(Sec. 4) Confirms that: (1) certain existing contracts covering lands of the Provo River Project not conveyed by this Act remain in effect; and (2) entities with existing contractual capacity rights to either the Provo Reservoir Canal or Salt Lake Aqueduct may transport Central Utah Project water.

Authorizes the Agreement to provide for modifications to repayment contracts for the Deer Creek and Aqueduct Divisions of the Provo River Project.

Provides that nothing in this Act impairs any existing contract (including subscription contracts) regarding the conveyance of water through the Provo Reservoir Canal.

(Sec. 5) Provides that: (1) lands and facilities conveyed under this Act are no longer part of a Federal reclamation project; (2) the Association and the District are no longer entitled to reclamation benefits for conveyed lands, except for benefits available to other nonreclamation facilities; and (3) the United States shall not be liable for damages for acts, omissions, or occurrences relating to conveyances under this Act, except for negligent acts committed prior to the date of conveyance.

(Sec. 6) Requires the Secretary to report to Congress on the status of any land conveyances not completed within 18 months after the enactment of this Act.