SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Dry-Redwater Regional Water 
Authority System Act of 2008''.

SEC. 2. FINDINGS; PURPOSE.

    (a) Findings.--Congress finds that--
            (1) there are insufficient available supplies of safe water 
        to meet the minimum health and safety standards of the citizens 
        of--
                    (A) Dawson, Garfield, McCone, Prairie, and Richland 
                Counties of the State; and
                    (B) McKenzie County, North Dakota;
            (2) McCone and Garfield Counties of the State were--
                    (A) directly and physically impacted when the Fort 
                Peck Dam was constructed; and
                    (B) to receive certain impact benefits as a result 
                of the Pick-Sloan program; and
            (3) the water that is contained in the Fort Peck Dam 
        reservoir is managed for purposes relating to--
                    (A) flood control;
                    (B) the production of hydroelectric power;
                    (C) irrigation;
                    (D) the maintenance of a public water supply;
                    (E) the conservation of fish and wildlife;
                    (F) recreation; and
                    (G) the improvement of water quality.
    (b) 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, and Richland 
        Counties of the State; and
            (2) McKenzie County, North Dakota.

SEC. 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) the Dry-Redwater Regional Water Authority, 
                which is a publicly owned nonprofit water authority 
                formed in accordance with Mont. Code Ann. Sec.  75-6-
                302 (2007); and
                    (B) any nonprofit successor entity.
            (3) Firm power rate.--The term ``firm power rate'' means 
        the rate charged by the Administrator for the Pick-Sloan 
        Missouri Basin Program--Eastern Division.
            (4) 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)).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (6) State.--The term ``State'' means the State of Montana.
            (7) Water system.--The term ``Water System'' means the Dry-
        Redwater Regional Water Authority System authorized under 
        section 4 for--
                    (A) Dawson, Garfield, McCone, Prairie, and Richland 
                Counties of the State; and
                    (B) McKenzie County, North Dakota.

SEC. 4. DRY-REDWATER REGIONAL WATER AUTHORITY SYSTEM.

    (a) Cooperative Agreement.--
            (1) In general.--The Secretary shall enter into a 
        cooperative agreement with the Authority to provide Federal 
        assistance for the planning, design, and construction of the 
        Water System.
            (2) Requirements.--A cooperative agreement entered into 
        under paragraph (1) shall specify, in a manner that is 
        acceptable to the Secretary and the Authority--
                    (A) the responsibilities of each party to the 
                cooperative agreement relating to the Water System, 
                including--
                            (i) the final engineering report;
                            (ii) an environmental and cultural resource 
                        study;
                            (iii) engineering and design;
                            (iv) construction;
                            (v) water conservation measures; and
                            (vi) administration of contracts relating 
                        to the performance of the activities described 
                        in clauses (i) through (v);
                    (B) any procedure or requirement relating to--
                            (i) the carrying out of each activity 
                        described in subparagraph (A); and
                            (ii) the approval and acceptance of the 
                        design and construction of the Water System; 
                        and
                    (C) the rights, responsibilities, and liabilities 
                of each party to the cooperative agreement.
    (b) Use of Federal Funds.--
            (1) Federal share.--
                    (A) In general.--The Federal share of the costs 
                relating to the planning, design, and construction of 
                the Water System shall not exceed 75 percent of the 
                total cost of the Water System.
                    (B) Limitation.--Amounts made available under 
                subparagraph (A) shall not be returnable or 
                reimbursable under the reclamation laws.
            (2) Compliance with cooperative agreement.--Federal funds 
        made available to carry out this section shall be obligated and 
        expended in accordance with a cooperative agreement entered 
        into by the Secretary under subsection (a)(1).
    (c) Components.--Components of the Water System facilities for 
which Federal funds may be obligated and expended under this section 
shall include--
            (1) facilities relating to--
                    (A) water intake;
                    (B) water pumping;
                    (C) water treatment; and
                    (D) water storage;
            (2) transmission pipelines and pumping stations;
            (3) appurtenant buildings, maintenance equipment, and 
        access roads;
            (4) any interconnection facility that connects a pipeline 
        of the Water System to a pipeline of a public water system;
            (5) distribution, pumping, and storage facilities that--
                    (A) serve the needs of citizens who use public 
                water systems;
                    (B) are in existence on the date of enactment of 
                this Act; and
                    (C) may be purchased, improved, and repaired in 
                accordance with a cooperative agreement entered into by 
                the Secretary under subsection (a)(1);
            (6) electrical power transmission and distribution 
        facilities required for the operation and maintenance of the 
        Water System;
            (7) any other facility or service required for the 
        development of a rural water distribution system, as determined 
        by the Secretary; and
            (8) any property or property right required for the 
        construction or operation of a facility described in this 
        subsection.
    (d) Service Area.--The service area of the Water System shall be--
            (1) the area of Garfield and McCone Counties in the State;
            (2) the area west of the Yellowstone River in Dawson and 
        Richland Counties in the State;
            (3) the area including, and north of, Township 15N in 
        Prairie County in the State; and
            (4) 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.
    (e) Limitation on Availability of Construction Funds.--The 
Secretary shall not obligate funds for construction of the Water System 
until the date--
            (1) on which the Water System complies with each 
        requirement under the National Environmental Policy Act of 1969 
        (42 U.S.C. 4321 et seq.);
            (2) that is 90 days after the date of receipt by Congress 
        of the final engineering report described in subsection 
        (a)(2)(A)(i) that is approved by the Secretary; and
            (3) on which the Secretary publishes a written finding that 
        the water conservation plan developed pursuant to section 6 
        contains water conservation measures for the operation of the 
        Water System that are--
                    (A) prudent;
                    (B) reasonable; and
                    (C) economically and financially feasible.
    (f) Limitation on Use of Federal Funds.--
            (1) In general.--Any cost relating to the operation, 
        maintenance, or replacement of the Water System--
                    (A) shall not be a Federal responsibility; and
                    (B) shall be paid by the Water System.
            (2) Federal funds.--The Secretary shall not obligate or 
        expend Federal funds for the operation, maintenance, or 
        replacement of the Water System.
    (g) Title to the Water System.--Title to the Water System shall be 
held by the Authority.

SEC. 5. USE OF POWER FROM PICK-SLOAN PROGRAM.

    (a) Findings.--Congress finds that McCone and Garfield Counties in 
the State were designated--
            (1) as impact counties during the period in which the Fort 
        Peck Dam was constructed; and
            (2) 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 Water System a 
        quantity of power required to meet the pumping and incidental 
        operation requirements of the Water System--
                    (A) from the water intake facilities; and
                    (B) through--
                            (i) the water treatment facilities; and
                            (ii) all first water distribution pumping 
                        facilities.
            (2) Eligibility.--The Water System shall be eligible to 
        receive power under paragraph (1) if the Water 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(a)(1).
            (3) Rate.--The Administrator shall establish the cost of 
        the power described in paragraph (1) at the firm power rate.
            (4) Recovery of expenses.--The Administrator shall recover 
        the costs associated with the quantity of power used by the 
        Authority under paragraph (1).
            (5) Responsibility for expenses.--The Authority shall be 
        responsible for the payment of the costs described in paragraph 
        (4).

SEC. 6. WATER CONSERVATION PLAN.

    (a) In General.--The Authority shall develop a water conservation 
plan containing--
            (1) a description of water conservation objectives;
            (2) a description of appropriate water conservation 
        measures; and
            (3) a time schedule for carrying out the measures described 
        in paragraph (2) and this Act to meet the water conservation 
        objectives described in paragraph (1).
    (b) Design Requirement.--The water conservation plan developed 
under subsection (a) shall be designed to ensure that users of water 
provided by the Water System will use the best practical technology and 
management techniques to conserve water.
    (c) Public Participation.--Section 210(c) of the Reclamation Reform 
Act of 1982 (43 U.S.C. 390jj(c)) shall apply to each activity carried 
out under this Act.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    (a) Water System.--There is authorized to be appropriated to carry 
out the planning, design, and construction of the Water System 
$115,116,000 for the period of fiscal years 2009 through 2019.
    (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 January 1, 
2008, as indicated by any available engineering cost indices applicable 
to construction activities that are similar to the construction of the 
Water System.
Output: Dry-Redwater Regional Water Authority System Act of 2008 - Directs the Secretary of the Interior to enter into a cooperative agreement to provide federal assistance for the planning, design, and construction of the Dry-Redwater Regional Water Authority System for specified counties in Montana and North Dakota.

Lists agreement requirements. Limits the federal share of planning, design, and construction of the System to 75% of the total cost. Delineates the components of System facilities for which federal funds may be expended and the System's service area. Limits the obligation of funds for construction. Provides that any cost relating to the System's operation, maintenance, or replacement shall not be a federal responsibility and shall be paid by the System.

Directs the Administrator of the Western Area Power Administration to make available to the System a quantity of power required to meet the System's pumping and incidental operation requirements from the water intake facilities and through the water treatment facilities and all first water distribution pumping facilities. Makes the System eligible to receive power only if it operates on a nonprofit basis and is constructed pursuant to the agreement.

Directs the Authority to develop a water conservation plan containing a description of water conservation objectives and measures and a schedule for carrying out such measures. Requires the plan to be designed to ensure that users of water provided by the System will use the best practical technology and management techniques to conserve water.