SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Mountain Park Project Act of 1994''.

SEC. 2. MODIFICATION OF MOUNTAIN PARK PROJECT.

    (a) In General.--The first section of the Act entitled ``An Act to 
authorize the Secretary of the Interior to construct, operate, and 
maintain the Mountain Park reclamation project, Oklahoma, and for other 
purposes'' (Public Law 90-503; 82 Stat. 853) is amended by striking out 
``and controlling floods.'' and inserting in lieu thereof ``controlling 
floods, and environmental quality activities. As used in this Act, the 
term `environmental quality activity' means any activity that primarily 
benefits the quality of natural environmental resources.''.
    (b) Reallocation of Project Costs.--Such Act is further amended by 
adding at the end the following new section:
    ``Sec. 7. (a)(1) Not later than 180 days after the date of 
enactment of the Mountain Park Project Act of 1994, the Secretary of 
the Interior (referred to in this section as the `Secretary') shall--
            ``(A) conduct appropriate investigations to determine 
        environmental quality activities that could be carried out for 
        the Mountain Park project; and
            ``(B) on the basis of the determination made under 
        subparagraph (A), make an appropriate reallocation of the costs 
        of the project under sections 2 and 3 (referred to in this 
        section as `project costs') to accommodate the environmental 
        quality activities that the Secretary authorizes pursuant to 
        this subsection.
    ``(2) In conducting investigations under this subsection, the 
Secretary shall examine the benefits to natural environmental resources 
achievable from an environmental quality activity that requires 
reallocating water or using facilities or land of the Mountain Park 
project, including any of the following activities:
            ``(A) Developing in-stream flows.
            ``(B) Developing wetland habitat.
            ``(C) Any other environmental quality activity that the 
        Secretary determines to be appropriate to benefit the overall 
        quality of the environment.
    ``(b)(1) Upon completion of the investigations under subsection 
(a)(2), the Secretary shall carry out the following:
            ``(A) The preparation of a proposed reallocation of project 
        costs in conformance with subsection (a)(1)(B).
            ``(B) Negotiations with the Mountain Park Master 
        Conservancy District (referred to in this section as the 
        `District') to amend the contract executed by the District 
        pursuant to this Act to adjust the obligation of the District 
        to repay project costs, as described in section 2, to reflect 
        the reallocation of nonreimbursable project costs.
    ``(2) For the purposes of paragraph (1), project costs associated 
with an environmental quality activity specified by the Secretary 
pursuant to subsection (a)(2) shall be nonreimbursable project costs.
    ``(c)(1) Notwithstanding any other provision of this Act, the 
Secretary is authorized to accept prepayment of the repayment 
obligation of the District for the reimbursable construction costs of 
the project allocated to municipal and industrial water supply for the 
city of Altus, Oklahoma, the city of Frederick, Oklahoma, or the city 
of Snyder, Oklahoma (or any combination thereof), and, upon receipt of 
such prepayment, the District's obligation to the United States shall 
be reduced by the amount of such costs, and any security held therefor, 
shall be released by the Secretary.
    ``(2) Any prepayment made pursuant to subsection (c)(1) shall 
realize to the United States an amount calculated by discounting the 
remaining repayment obligation by the interest rate determined in 
accordance with subsection (d).
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    ``(d)(1) The Secretary of the Treasury shall determine the interest 
rate in accordance with the guidelines set forth in Circular A-129 
issued by the Office of Management and Budget and the Department of 
Treasury Financial Manual. In determining the interest rate, the 
Secretary shall consider the price of the District's obligation if it 
were to be sold on the open market to a third party.
    ``(2) If the District uses tax-exempt financing to finance a 
prepayment under subsection (c)(1), then the interest rate by which the 
Secretary discounts the remaining payments due on the District's 
obligation shall be adjusted by an amount that compensates the United 
States for the direct or indirect loss of future tax revenues.
    ``(e) Notwithstanding any payment made by the District pursuant to 
this section or pursuant to any contract with the Secretary, title to 
the project facilities shall remain with the United States.''.
    (c) Repeal.--Section 3101 of the Reclamation Projects Authorization 
and Adjustment Act of 1992 (Public Law 102-575; 106 Stat. 4698) is 
repealed.
Output: Mountain Park Project Act of 1994 - Adds environmental quality activities to the list of activities of the Mountain Park Reclamation Project, Oklahoma. 
Directs the Secretary of the Interior to:  (1) conduct investigations to determine environmental quality activities that could be carried out for the Project; and (2) make an appropriate reallocation of Project costs to accommodate such activities.  Requires the Secretary, in conducting such investigations, to examine the benefits to natural environmental resources achievable from an environmental quality activity that requires reallocating water using facilities or land of the Project. 
Requires the Secretary, upon completion of investigations, to:  (1) prepare a proposed reallocation of Project costs; and (2) negotiate with the Mountain Park Master Conservancy District to amend the contract to adjust the obligation of the District to repay Project costs to reflect the reallocation of nonreimbursable Project costs. Requires Project costs associated with an environmental quality activity to be nonreimbursable.  Authorizes the Secretary to accept prepayment of the repayment obligation of the District for reimbursable construction costs allocated to municipal and industrial water supply for the cities of Altus, Frederick, or Snyder, Oklahoma, or any combination thereof, and reduces the District's obligation by the amount of such costs upon receipt of prepayment. 
Directs the Secretary of the Treasury:  (1) to determine the interest rate in accordance with the guidelines set forth in Circular A-129 issued by the Office of Management and Budget and the Department of Treasury Financial Manual; and (2) in determining such rate, to consider the price of the District's obligation if it were to be sold on the open market to a third party. 
Provides that title to the Project facilities shall remain with the United States. 
Repeals provisions of existing law regarding prepayment by the District for Project costs.