II Calendar No. 659 115th CONGRESS 2d Session S. 685 [Report No. 115–373] IN THE SENATE OF THE UNITED STATES March 21, 2017 Mr. Daines (for himself and Mr. Tester ) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources November 15, 2018 Reported by Ms. Murkowski , with an amendment and an amendment to the title Strike out all after the enacting clause and insert the part printed in italic A BILL To authorize the Dry-Redwater Regional Water Authority System and the Musselshell-Judith Rural Water System in the States of Montana and North Dakota, and for other purposes.

1. Short title This Act may be cited as the Clean Water for Rural Communities Act . 2. Purpose The purpose of this Act is to ensure a safe and adequate municipal, rural, and industrial water supply for the citizens of— (1) Dawson, Garfield, McCone, Prairie, Richland, Judith Basin, Wheatland, Golden Valley, Fergus, Yellowstone, and Musselshell Counties in the State of Montana; and (2) McKenzie County, North Dakota. 3. Definitions In this Act: (1) Administrator The term Administrator means the Administrator of the Western Area Power Administration. (2) Authority The term Authority means— (A) in the case of the Dry-Redwater Regional Water Authority System— (i) the Dry-Redwater Regional Water Authority, which is a publicly owned nonprofit water authority formed in accordance with Mont. Code Ann. § 75–6–302 (2007); and (ii) any nonprofit successor entity to the Authority described in clause (i); and (B) in the case of the Musselshell-Judith Rural Water System— (i) the Central Montana Regional Water Authority, which is a publicly owned nonprofit water authority formed in accordance with Mont. Code Ann. § 75–6–302 (2007); and (ii) any nonprofit successor entity to the Authority described in clause (i). (3) Dry-Redwater Regional Water Authority System The term Dry-Redwater Regional Water Authority System means the Dry-Redwater Regional Water Authority System authorized under section 4(a)(1) with a project service area that includes— (A) Garfield and McCone Counties in the State; (B) the area west of the Yellowstone River in Dawson and Richland Counties in the State; (C) T. 15 N. (including the area north of the Township) in Prairie County in the State; and (D) the portion of McKenzie County, North Dakota, that includes all land that is located west of the Yellowstone River in the State of North Dakota. (4) Integrated system The term integrated system means the transmission system owned by the Western Area Power Administration Basin Electric Power District and the Heartland Consumers Power District. (5) Musselshell-Judith Rural Water System The term Musselshell-Judith Rural Water System means the Musselshell-Judith Rural Water System authorized under section 4(a)(2) with a project service area that includes— (A) Judith Basin, Wheatland, Golden Valley, and Musselshell Counties in the State; (B) the portion of Yellowstone County in the State within 2 miles of State Highway 3 and within 4 miles of the county line between Golden Valley and Yellowstone Counties in the State, inclusive of the Town of Broadview, Montana; and (C) the portion of Fergus County in the State within 2 miles of U.S. Highway 87 and within 4 miles of the county line between Fergus and Judith Basin Counties in the State, inclusive of the Town of Moore, Montana. (6) Non-Federal distribution system The term non-Federal distribution system means a non-Federal utility that provides electricity to the counties covered by the Dry-Redwater Regional Water Authority System. (7) Pick-sloan program The term Pick-Sloan program means the Pick-Sloan Missouri River Basin Program (authorized by section 9 of the Act of December 22, 1944 (commonly known as the Flood Control Act of 1944 ) (58 Stat. 891, chapter 665)). (8) Secretary The term Secretary means the Secretary of the Interior. (9) State The term State means the State of Montana. (10) Water system The term Water System means— (A) the Dry-Redwater Regional Water Authority System; and (B) the Musselshell-Judith Rural Water System. 4. Dry-redwater regional water authority system and musselshell-Judith Rural Water System (a) Authorization The Secretary may carry out— (1) the project entitled the Dry-Redwater Regional Water Authority System in a manner that is substantially in accordance with the feasibility study entitled Dry-Redwater Regional Water System Feasibility Study (including revisions of the study), which received funding from the Bureau of Reclamation on September 1, 2010; and (2) the project entitled the Musselshell-Judith Rural Water System in a manner that is substantially in accordance with the feasibility report entitled Musselshell-Judith Rural Water System Feasibility Report (including any and all revisions of the report). (b) Cooperative agreement The Secretary shall enter into a cooperative agreement with the Authority to provide Federal assistance for the planning, design, and construction of the Water Systems. (c) Cost-Sharing Requirement (1) Federal share (A) In general The Federal share of the costs relating to the planning, design, and construction of the Water Systems shall not exceed— (i) in the case of the Dry-Redwater Regional Water Authority System— (I) 75 percent of the total cost of the Dry-Redwater Regional Water Authority System; or (II) such other lesser amount as may be determined by the Secretary, acting through the Commissioner of Reclamation, in a feasibility report; or (ii) in the case of the Musselshell-Judith Rural Water System, 75 percent of the total cost of the Musselshell-Judith Rural Water System. (B) Limitation Amounts made available under subparagraph (A) shall not be returnable or reimbursable under the reclamation laws. (2) Use of federal funds (A) General uses Subject to subparagraphs (B) and (C), the Water Systems may use Federal funds made available to carry out this section for— (i) facilities relating to— (I) water pumping; (II) water treatment; and (III) water storage; (ii) transmission pipelines; (iii) pumping stations; (iv) appurtenant buildings, maintenance equipment, and access roads; (v) any interconnection facility that connects a pipeline of the Water System to a pipeline of a public water system; (vi) electrical power transmission and distribution facilities required for the operation and maintenance of the Water System; (vii) any other facility or service required for the development of a rural water distribution system, as determined by the Secretary; and (viii) any property or property right required for the construction or operation of a facility described in this subsection. (B) Additional uses In addition to the uses described in subparagraph (A)— (i) the Dry-Redwater Regional Water Authority System may use Federal funds made available to carry out this section for— (I) facilities relating to water intake; and (II) distribution, pumping, and storage facilities that— (aa) serve the needs of citizens who use public water systems; (bb) are in existence on the date of enactment of this Act; and (cc) may be purchased, improved, and repaired in accordance with a cooperative agreement entered into by the Secretary under subsection (b); and (ii) the Musselshell-Judith Rural Water System may use Federal funds made available to carry out this section for— (I) facilities relating to— (aa) water supply wells; and (bb) distribution pipelines; and (II) control systems. (C) Limitation Federal funds made available to carry out this section shall not be used for the operation, maintenance, or replacement of the Water Systems. (D) Title Title to the Water Systems shall be held by the Authority. 5. Use of power from pick-sloan program by the Dry-Redwater Regional Water Authority System (a) Finding Congress finds that— (1) McCone and Garfield Counties in the State were designated as impact counties during the period in which the Fort Peck Dam was constructed; and (2) as a result of the designation, the Counties referred to in paragraph (1) were to receive impact mitigation benefits in accordance with the Pick-Sloan program. (b) Availability of power (1) In general Subject to paragraph (2), the Administrator shall make available to the Dry-Redwater Regional Water Authority System a quantity of power required, of up to 1 1/2 megawatt capacity, to meet the pumping and incidental operation requirements of the Dry-Redwater Regional Water Authority System during the period beginning on May 1 and ending on October 31 of each year— (A) from the water intake facilities; and (B) through all pumping stations, water treatment facilities, reservoirs, storage tanks, and pipelines up to the point of delivery of water by the water supply system to all storage reservoirs and tanks and each entity that distributes water at retail to individual users. (2) Eligibility The Dry-Redwater Regional Water Authority System shall be eligible to receive power under paragraph (1) if the Dry-Redwater Regional Water Authority System— (A) operates on a not-for-profit basis; and (B) is constructed pursuant to a cooperative agreement entered into by the Secretary under section 4(b). (3) Rate The Administrator shall establish the cost of the power described in paragraph (1) at the firm power rate. (4) Additional power (A) In general If power, in addition to that made available to the Dry-Redwater Regional Water Authority System under paragraph (1), is necessary to meet the pumping requirements of the Dry-Redwater Regional Water Authority, the Administrator may purchase the necessary additional power at the best available rate. (B) Reimbursement The cost of purchasing additional power shall be reimbursed to the Administrator by the Dry-Redwater Regional Water Authority. (5) Responsibility for power charges The Dry-Redwater Regional Water Authority shall be responsible for the payment of the power charge described in paragraph (4) and non-Federal delivery costs described in paragraph (6). (6) Transmission arrangements (A) In general The Dry-Redwater Regional Water Authority System shall be responsible for all non-Federal transmission and distribution system delivery and service arrangements. (B) Upgrades The Dry-Redwater Regional Water Authority System shall be responsible for funding any transmission upgrades, if required, to the integrated system necessary to deliver power to the Dry-Redwater Regional Water Authority System. 6. Water rights Nothing in this Act— (1) preempts or affects any State water law; or (2) affects any authority of a State, as in effect on the date of enactment of this Act, to manage water resources within that State. 7. Authorization of appropriations (a) Authorization There are authorized to be appropriated such sums as are necessary to carry out the planning, design, and construction of the Water Systems, substantially in accordance with the cost estimate set forth in the applicable feasibility study or feasibility report described in section 4(a). (b) Cost indexing (1) In general The amount authorized to be appropriated under subsection (a) may be increased or decreased in accordance with ordinary fluctuations in development costs incurred after the applicable date specified in paragraph (2), as indicated by any available engineering cost indices applicable to construction activities that are similar to the construction of the Water Systems. (2) Applicable dates The date referred to in paragraph (1) is— (A) in the case of the Dry-Redwater Regional Water Authority System, January 1, 2008; and (B) in the case of the Musselshell-Judith Rural Water Authority System, November 1, 2014.

1. Short title This Act may be cited as the Clean Water for Rural Communities Act . 2. Purpose The purpose of this Act is to ensure a safe and adequate municipal, rural, and industrial water supply for the citizens of— (1) Dawson, Garfield, McCone, Prairie, Richland, Judith Basin, Wheatland, Golden Valley, Fergus, Yellowstone, and Musselshell Counties in the State of Montana; and (2) McKenzie County, North Dakota. 3. Definitions In this Act: (1) Authority The term Authority means— (A) the Central Montana Regional Water Authority, a publicly owned nonprofit water authority formed in accordance with Mont. Code Ann. Sec. 75-6-302 (2007); and (B) any nonprofit successor entity to the Authority described in subparagraph (A). (2) Musselshell-Judith Rural Water System The term Musselshell-Judith Rural Water System means the Musselshell-Judith Rural Water System authorized under section 4(a), with a project service area that includes— (A) Judith Basin, Wheatland, Golden Valley, and Musselshell Counties in the State; (B) the portion of Yellowstone County in the State within 2 miles of State Highway 3 and within 4 miles of the county line between Golden Valley and Yellowstone Counties in the State, inclusive of the Town of Broadview, Montana; and (C) the portion of Fergus County in the State within 2 miles of U.S. Highway 87 and within 4 miles of the county line between Fergus and Judith Basin Counties in the State, inclusive of the Town of Moore, Montana. (3) Secretary The term Secretary means the Secretary of the Interior. (4) State The term State means the State of Montana. 4. Musselshell-Judith Rural Water System (a) Authorization The Secretary may carry out the planning, design, and construction of the Musselshell-Judith Rural Water System in a manner that is substantially in accordance with the feasibility report entitled Musselshell-Judith Rural Water System Feasibility Report (including any and all revisions of the report). (b) Cooperative agreement The Secretary shall enter into a cooperative agreement with the Authority to provide Federal assistance for the planning, design, and construction of the Musselshell-Judith Rural Water System. (c) Cost-sharing requirement (1) Federal share (A) In general The Federal share of the costs relating to the planning, design, and construction of the Musselshell-Judith Rural Water System shall not exceed 65 percent of the total cost of the Musselshell-Judith Rural Water System. (B) Limitation Amounts made available under subparagraph (A) shall not be returnable or reimbursable under the reclamation laws. (2) Use of Federal funds (A) General uses Subject to subparagraph (B), the Musselshell-Judith Rural Water System may use Federal funds made available to carry out this section for— (i) facilities relating to— (I) water pumping; (II) water treatment; (III) water storage; (IV) water supply wells; (V) distribution pipelines; and (VI) control systems; (ii) transmission pipelines; (iii) pumping stations; (iv) appurtenant buildings, maintenance equipment, and access roads; (v) any interconnection facility that connects a pipeline of the Musselshell-Judith Rural Water System to a pipeline of a public water system; (vi) electrical power transmission and distribution facilities required for the operation and maintenance of the Musselshell-Judith Rural Water System; (vii) any other facility or service required for the development of a rural water distribution system, as determined by the Secretary; and (viii) any property or property right required for the construction or operation of a facility described in this subsection. (B) Limitation Federal funds made available to carry out this section shall not be used for the operation, maintenance, or replacement of the Musselshell-Judith Rural Water System. (C) Title Title to the Musselshell-Judith Rural Water System shall be held by the Authority. 5. Dry-Redwater feasibility study (a) Definitions In this section: (1) Dry-Redwater Regional Water Authority The term Dry-Redwater Regional Water Authority means— (A) the Dry-Redwater Regional Water Authority, a publicly owned nonprofit water authority formed in accordance with Mont. Code Ann. § 75–6–302 (2007); and (B) any nonprofit successor entity to the Authority described in subparagraph (A). (2) Dry-Redwater Regional Water Authority System The term Dry-Redwater Regional Water Authority System means the project entitled the Dry-Redwater Regional Water Authority System , with a project service area that includes— (A) Garfield and McCone Counties in the State; (B) the area west of the Yellowstone River in Dawson and Richland Counties in the State; (C) T. 15 N. (including the area north of the Township) in Prairie County in the State; and (D) the portion of McKenzie County, North Dakota, that includes all land that is located west of the Yellowstone River in the State of North Dakota. (3) Reclamation feasibility standards The term reclamation feasibility standards means the eligibility criteria and feasibility study requirements described in section 106 of the Reclamation Rural Water Supply Act of 2006 ( 43 U.S.C. 2405 ) (as in effect on September 29, 2016). (4) Submitted feasibility study The term submitted feasibility study means the feasibility study entitled Dry-Redwater Regional Water System Feasibility Study (including revisions of the study), which received funding from the Bureau of Reclamation on September 1, 2010. (b) Study (1) In general The Secretary, in consultation with the Dry-Redwater Regional Water Authority, may undertake a study, including a review of the submitted feasibility study, to determine the feasibility of constructing the Dry-Redwater Regional Water System. (2) Requirement The study under paragraph (1) shall comply with the reclamation feasibility standards. (c) Cooperative agreement If the Secretary determines that the study under subsection (b) does not comply with the reclamation feasibility standards, the Secretary may enter into a cooperative agreement with the Dry-Redwater Regional Water Authority to complete additional work to ensure that the study complies with the reclamation feasibility standards. (d) Authorization of appropriations There is authorized to be appropriated to the Secretary $5,000,000 to carry out this section. (e) Termination The authority provided by this section shall expire on the date that is 5 years after the date of enactment of this Act. 6. Water rights Nothing in this Act— (1) preempts or affects any State water law; or (2) affects any authority of a State, as in effect on the date of enactment of this Act, to manage water resources within that State. 7. Authorization of appropriations (a) Authorization There is authorized to be appropriated to carry out the planning, design, and construction of the Musselshell-Judith Rural Water System, substantially in accordance with the cost estimate set forth in the feasibility report described in section 4(a), $56,650,000. (b) Cost Indexing The amount authorized to be appropriated under subsection (a) may be increased or decreased in accordance with ordinary fluctuations in development costs incurred after November 1, 2014, as indicated by any available engineering cost indices applicable to construction activities that are similar to the construction of the Musselshell-Judith Rural Water System.

Amend the title so as to read: A bill to authorize the construction of the Musselshell-Judith Rural Water System and study of the Dry-Redwater Regional Water Authority System in the States of Montana and North Dakota, and for other purposes. .

November 15, 2018 Reported with an amendment and an amendment to the title