SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Lewis and Clark Rural Water System 
Act of 1999''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Environmental enhancement.--The term ``environmental 
        enhancement'' means the wetland and wildlife enhancement 
        activities that are carried out substantially in accordance 
        with the environmental enhancement component of the feasibility 
        study.
            (2) Environmental enhancement component.--The term 
        ``environmental enhancement component'' means the proposals 
        described in the report entitled ``Wetlands and Wildlife 
        Enhancement for the Lewis and Clark Rural Water System'', dated 
        December 1994.
            (3) Feasibility study.--The term ``feasibility study'' 
        means the study entitled ``Feasibility Level Evaluation of a 
        Missouri River Regional Water Supply for South Dakota, Iowa and 
        Minnesota'', dated September 1993, that includes a water 
        conservation plan, environmental report, and environmental 
        enhancement component.
            (4) Incremental cost.--The term ``incremental cost'' means 
        the cost of the savings to the project were the city of Sioux 
        Falls not to participate in the water supply system.
            (5) Member entity.--The term ``member entity'' means a 
        rural water system or municipality that meets the requirements 
        for membership as defined by the Lewis and Clark Rural Water 
        System, Inc. bylaws, dated September 6, 1990.
            (6) Project construction budget.--The term ``project 
        construction budget'' means the description of the total amount 
        of funds needed for the construction of the water supply 
        project, as contained in the feasibility study.
            (7) Pumping and incidental operational requirements.--The 
        term ``pumping and incidental operational requirements'' means 
        all power requirements that are necessary for the operation of 
        intake facilities, pumping stations, water treatment 
        facilities, reservoirs, and pipelines up to the point of 
        delivery of water by the water supply system to each member 
        entity that distributes water at retail to individual users.
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (9) Water supply project.--
                    (A) In general.--The term ``water supply project'' 
                means the physical components of the Lewis and Clark 
                Rural Water Project.
                    (B) Inclusions.--The term ``water supply project'' 
                includes--
                            (i) necessary pumping, treatment, and 
                        distribution facilities;
                            (ii) pipelines;
                            (iii) appurtenant buildings and property 
                        rights;
                            (iv) electrical power transmission and 
                        distribution facilities necessary for services 
                        to water systems facilities; and
                            (v) such other pipelines, pumping plants, 
                        and facilities as the Secretary considers 
                        necessary and appropriate to meet the water 
                        supply, economic, public health, and 
                        environment needs of the member entities 
                        (including water storage tanks, water lines, 
                        and other facilities for the member entities).
            (10) Water supply system.--The term ``water supply system'' 
        means the Lewis and Clark Rural Water System, Inc., a nonprofit 
        corporation established and operated substantially in 
        accordance with the feasibility study.

SEC. 3. FEDERAL ASSISTANCE FOR THE WATER SUPPLY SYSTEM.

    (a) In General.--The Secretary shall make grants to the water 
supply system for the planning and construction of the water supply 
project.
    (b) Service Area.--The water supply system shall provide for the 
member entities safe and adequate municipal, rural, and industrial 
water supplies, environmental enhancement, mitigation of wetland areas, 
and water conservation in--
            (1) Lake County, McCook County, Minnehaha County, Turner 
        County, Lincoln County, Clay County, and Union County, in 
        southeastern South Dakota;
            (2) Rock County and Nobles County, in southwestern 
        Minnesota; and
            (3) Lyon County, Sioux County, Osceola County, O'Brien 
        County, Dickinson County, and Clay County, in northwestern 
        Iowa.
    (c) Amount of Grants.--Grants made available under subsection (a) 
to the water supply system shall not exceed the amount of funds 
authorized under section 9.
    (d) Limitation on Availability of Construction Funds.--The 
Secretary shall not obligate funds for the construction of the water 
supply project until--
            (1) the requirements of the National Environmental Policy 
        Act of 1969 (42 U.S.C. 4321 et seq.) are met; and
            (2) a final engineering report and a plan for a water 
        conservation program are prepared and submitted to Congress not 
        less than 90 days before the commencement of construction of 
        the water supply project.

SEC. 4. FEDERAL ASSISTANCE FOR THE ENVIRONMENTAL ENHANCEMENT COMPONENT.

    (a) Initial Development.--The Secretary shall make grants and other 
funds available to the water supply system and other private, State, 
and Federal entities, for the initial development of the environmental 
enhancement component.
    (b) Nonreimbursement.--Funds provided under subsection (a) shall be 
nonreimbursable and nonreturnable.

SEC. 5. MITIGATION OF FISH AND WILDLIFE LOSSES.

    Mitigation for fish and wildlife losses incurred as a result of the 
construction and operation of the water supply project shall be on an 
acre-for-acre basis, based on ecological equivalency, concurrent with 
project construction, as provided in the feasibility study.

SEC. 6. USE OF PICK-SLOAN POWER.

    (a) In General.--From power designated for future irrigation and 
drainage pumping for the Pick-Sloan Missouri River Basin Program, the 
Western Area Power Administration shall make available the capacity and 
energy required to meet the pumping and incidental operational 
requirements of the water supply project during the period beginning 
May 1 and ending October 31 of each year.
    (b) Conditions.--The capacity and energy described in subsection 
(a) shall be made available on the following conditions:
            (1) The water supply system shall be operated on a not-for-
        profit basis.
            (2) The water supply system shall contract to purchase the 
        entire electric service requirements of the project, including 
        the capacity and energy made available under subsection (a), 
        from a qualified preference power supplier that itself 
        purchases power from the Western Area Power Administration.
            (3) The rate schedule applicable to the capacity and energy 
        made available under subsection (a) shall be the firm power 
        rate schedule of the Pick-Sloan Eastern Division of the Western 
        Area Power Administration in effect when the power is delivered 
        by the Administration to the qualified preference power 
        supplier.
            (4) It is agreed by contract among--
                    (A) the Western Area Power Administration;
                    (B) the power supplier with which the water supply 
                system contracts under paragraph (2);
                    (C) the power supplier of the entity described in 
                subparagraph (B); and
                    (D) the water supply system;
        that in the case of the capacity and energy made available 
        under subsection (a), the benefit of the rate schedule 
        described in paragraph (3) shall be passed through to the water 
        supply system, except that the power supplier of the water 
        supply system shall not be precluded from including, in the 
        charges of the supplier to the water system for the electric 
        service, the other usual and customary charges of the supplier.

SEC. 7. NO LIMITATION ON WATER PROJECTS IN STATES.

    This Act does not limit the authorization for water projects in the 
States of South Dakota, Iowa, and Minnesota under law in effect on or 
after the date of enactment of this Act.

SEC. 8. WATER RIGHTS.

    Nothing in this Act--
            (1) invalidates or preempts State water law or an 
        interstate compact governing water;
            (2) alters the rights of any State to any appropriated 
        share of the waters of any body of surface or ground water, 
        whether determined by past or future interstate compacts or by 
        past or future legislative or final judicial allocations;
            (3) preempts or modifies any Federal or State law, or 
        interstate compact, governing water quality or disposal; or
            (4) confers on any non-Federal entity the ability to 
        exercise any Federal right to the waters of any stream or to 
        any ground water resource.

SEC. 9. COST SHARING.

    (a) Federal Cost Share.--
            (1) In general.--Except as provided in paragraph (2), the 
        Secretary shall provide funds equal to 80 percent of--
                    (A) the amount allocated in the total project 
                construction budget for planning and construction of 
                the water supply project under section 3; and
                    (B) such amounts as are necessary to defray 
                increases in development costs reflected in appropriate 
                engineering cost indices after September 1, 1993.
            (2) Sioux falls.--The Secretary shall provide funds for the 
        city of Sioux Falls, South Dakota, in an amount equal to 50 
        percent of the incremental cost to the city of participation in 
        the project.
    (b) Non-Federal Cost Share.--
            (1) In general.--Except as provided in paragraph (2), the 
        non-Federal share of the costs allocated to the water supply 
        system shall be 20 percent of the amounts described in 
        subsection (a)(1).
            (2) Sioux falls.--The non-Federal cost-share for the city 
        of Sioux Falls, South Dakota, shall be 50 percent of the 
        incremental cost to the city of participation in the project.

SEC. 10. BUREAU OF RECLAMATION.

    (a) Authorization.--At the request of the water supply system, the 
Secretary may allow the Commissioner of Reclamation to provide project 
construction oversight to the water supply project and environmental 
enhancement component for the service area of the water supply system 
described in section 3(b).
    (b) Project Oversight Administration.--The amount of funds used by 
the Commissioner of Reclamation for oversight described in subsection 
(a) shall not exceed the amount that is equal to 1 percent of the 
amount provided in the total project construction budget for the entire 
project construction period.
    (c) Operation and Maintenance.--The water supply system shall be 
responsible for annual operation and maintenance of the project.

SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this Act 
$223,987,700, to remain available until expended, of which not more 
than $10,100,000 shall be used for the initial development of the 
environmental enhancement component under section 4.

            Passed the Senate November 19, 1999.

            Attest:

                                                    GARY SISCO,

                                                             Secretary.
Prohibits the Secretary from obligating project funds until: (1) National Environmental Policy Act of 1969 requirements are met; and (2) a final engineering report and a plan for a water conservation program are submitted to Congress.
Requires the Secretary to make grants and other funds available to the System and other private, State, and Federal entities for the initial development of the environmental enhancement component.
Specifies that mitigation for fish and wildlife losses incurred as a result of the construction and operation of the water supply project shall be on an acre-for-acre basis, based on ecological equivalency, concurrent with project construction.
Requires the Western Area Power Administration to make available the capacity and energy required to meet the pumping and incidental operational requirements of the water supply project during the period beginning May 1, and ending October 31, of each year from power designated for future irrigation and drainage pumping for the Pick-Sloan Missouri River Basin program, on specified conditions, including that: (1) the water supply system is operated on a not-for-profit basis; (2) the water supply system contracts to purchase the entire electric service  requirements of the project from a qualified preference power supplier that itself purchases power from the Administration; and (3) the rate schedule applicable to the capacity and energy made available is the firm power rate schedule of the Pick-Sloan Eastern Division of the Administration.
Specifies an 80 percent Federal share of planning, construction, and development costs of the project. Requires the Secretary to provide funds for the city of Sioux Falls, South Dakota, equal to 50 percent of the incremental cost of its participation in the project.
Authorizes the Secretary to allow the Bureau of Reclamation to provide project construction oversight to the water supply project and environmental enhancement component.
Makes the System responsible for the annual operation and maintenance of such project.
Authorizes appropriations.
Lewis and Clark Rural Water System Act of 1999