SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Eastern New Mexico Rural Water 
System Authorization Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Authority.--The term ``Authority'' means the Eastern 
        New Mexico Rural Water Authority, an entity formed under State 
        law for the purposes of planning, financing, developing, and 
        operating the System.
            (2) Engineering report.--The term ``engineering report'' 
        means the report entitled ``Eastern New Mexico Rural Water 
        System Preliminary Engineering Report'' and dated October 2006.
            (3) Plan.--The term ``plan'' means the operation, 
        maintenance, and replacement plan required by section 4(b).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (5) State.--The term ``State'' means the State of New 
        Mexico.
            (6) System.--
                    (A) In general.--The term ``System'' means the 
                Eastern New Mexico Rural Water System, a water delivery 
                project designed to deliver approximately 16,500 acre-
                feet of water per year from the Ute Reservoir to the 
                cities of Clovis, Elida, Grady, Melrose, Portales, and 
                Texico and other locations in Curry, Roosevelt, and 
                Quay Counties in the State.
                    (B) Inclusions.--The term ``System'' includes the 
                major components and associated infrastructure 
                identified as the ``Best Technical Alternative'' in the 
                engineering report.
            (7) Ute reservoir.--The term ``Ute Reservoir'' means the 
        impoundment of water created in 1962 by the construction of the 
        Ute Dam on the Canadian River, located approximately 32 miles 
        upstream of the border between New Mexico and Texas.

SEC. 3. EASTERN NEW MEXICO RURAL WATER SYSTEM.

    (a) Financial Assistance.--
            (1) In general.--The Secretary may provide financial and 
        technical assistance to the Authority to assist in planning, 
        designing, conducting related preconstruction activities for, 
        and constructing the System.
            (2) Use.--
                    (A) In general.--Any financial assistance provided 
                under paragraph (1) shall be obligated and expended 
                only in accordance with a cooperative agreement entered 
                into under section 5(a)(2).
                    (B) Limitations.--Financial assistance provided 
                under paragraph (1) shall not be used--
                            (i) for any activity that is inconsistent 
                        with constructing the System; or
                            (ii) to plan or construct facilities used 
                        to supply irrigation water for irrigated 
                        agricultural purposes.
    (b) Cost-Sharing Requirement.--
            (1) In general.--The Federal share of the total cost of any 
        activity or construction carried out using amounts made 
        available under this Act shall be not more than 75 percent of 
        the total cost of the System.
            (2) System development costs.--For purposes of paragraph 
        (1), the total cost of the System shall include any costs 
        incurred by the Authority or the State on or after October 1, 
        2003, for the development of the System.
    (c) Limitation.--No amounts made available under this Act may be 
used for the construction of the System until--
            (1) a plan is developed under section 4(b); and
            (2) the Secretary and the Authority have complied with any 
        requirements of the National Environmental Policy Act of 1969 
        (42 U.S.C. 4321 et seq.) applicable to the System.
    (d) Title to Project Works.--Title to the infrastructure of the 
System shall be held by the Authority or as may otherwise be specified 
under State law.

SEC. 4. OPERATION, MAINTENANCE, AND REPLACEMENT COSTS.

    (a) In General.--The Authority shall be responsible for the annual 
operation, maintenance, and replacement costs associated with the 
System.
    (b) Operation, Maintenance, and Replacement Plan.--The Authority, 
in consultation with the Secretary, shall develop an operation, 
maintenance, and replacement plan that establishes the rates and fees 
for beneficiaries of the System in the amount necessary to ensure that 
the System is properly maintained and capable of delivering 
approximately 16,500 acre-feet of water per year.

SEC. 5. ADMINISTRATIVE PROVISIONS.

    (a) Cooperative Agreements.--
            (1) In general.--The Secretary may enter into any contract, 
        grant, cooperative agreement, or other agreement that is 
        necessary to carry out this Act.
            (2) Cooperative agreement for provision of financial 
        assistance.--
                    (A) In general.--The Secretary shall enter into a 
                cooperative agreement with the Authority to provide 
                financial assistance and any other assistance requested 
                by the Authority for planning, design, related 
                preconstruction activities, and construction of the 
                System.
                    (B) Requirements.--The cooperative agreement 
                entered into under subparagraph (A) shall, at a 
                minimum, specify the responsibilities of the Secretary 
                and the Authority with respect to--
                            (i) ensuring that the cost-share 
                        requirements established by section 3(b) are 
                        met;
                            (ii) completing the planning and final 
                        design of the System;
                            (iii) any environmental and cultural 
                        resource compliance activities required for the 
                        System; and
                            (iv) the construction of the System.
    (b) Technical Assistance.--At the request of the Authority, the 
Secretary may provide to the Authority any technical assistance that is 
necessary to assist the Authority in planning, designing, constructing, 
and operating the System.
    (c) Biological Assessment.--The Secretary shall consult with the 
New Mexico Interstate Stream Commission and the Authority in preparing 
any biological assessment under the Endangered Species Act of 1973 (16 
U.S.C. 1531 et seq.) that may be required for planning and constructing 
the System.
    (d) Effect.--Nothing in this Act--
            (1) affects or preempts--
                    (A) State water law; or
                    (B) an interstate compact relating to the 
                allocation of water; or
            (2) confers on any non-Federal entity the ability to 
        exercise any Federal rights to--
                    (A) the water of a stream; or
                    (B) any groundwater resource.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--In accordance with the adjustment carried out 
under subsection (b), there is authorized to be appropriated to the 
Secretary to carry out this Act an amount not greater than 
$327,000,000.
    (b) Adjustment.--The amount made available under subsection (a) 
shall be adjusted to reflect changes in construction costs occurring 
after January 1, 2007, as indicated by engineering cost indices 
applicable to the types of construction necessary to carry out this 
Act.
    (c) Nonreimbursable Amounts.--Amounts made available to the 
Authority in accordance with the cost-sharing requirement under section 
3(b) shall be nonreimbursable and nonreturnable to the United States.
    (d) Availability of Funds.--At the end of each fiscal year, any 
unexpended funds appropriated pursuant to this Act shall be retained 
for use in future fiscal years consistent with this Act.
Output: Eastern New Mexico Rural Water System Authorization Act - (Sec. 3) Authorizes the Secretary of the Interior to provide financial and technical assistance to the Eastern New Mexico Rural Water Authority to assist in planning, designing, conducting preconstruction activities for, and constructing the Eastern New Mexico Rural Water System.

Limits the federal share of the cost of any activity to 75%. Provides that the total cost of the System shall include any costs incurred by the Authority or the state of New Mexico on or after October 1, 2003, for System development.

(Sec. 4) Makes the Authority responsible for annual operation, maintenance, and replacement costs. Directs the Authority to develop an operation, maintenance, and replacement plan that establishes rates and fees necessary to ensure that the System is properly maintained and capable of delivering approximately 16,500 acre-feet of water per year. Prohibits the use of funds under this Act until such plan is developed and until the Secretary and the Authority have complied with applicable requirements of the National Environmental Policy Act of 1969.

(Sec. 5) Directs the Secretary to: (1) enter into a cooperative agreement to provide financial and any other assistance requested by the Authority for planning, design, related preconstruction activities, and construction of the System, subject to specified requirements; and (2) consult with the New Mexico Interstate Stream Commission and the Authority in preparing any required biological assessment under the Endangered Species Act of 1973. Authorizes the Secretary, at the Authority's request, to provide technical assistance in planning, designing, constructing, and operating the System.

(Sec. 6) Authorizes appropriations. Requires: (1) the amount made available to be adjusted to reflect changes in construction costs occurring after January 1, 2007, as indicated by engineering cost indices applicable to the types of construction necessary to carry out this Act; (2) amounts made available to the Authority in accordance with the cost-sharing requirement to be nonreimbursable and nonreturnable to the United States; and (3) any unexpended appropriated funds to be retained for use in future fiscal years consistent with this Act.