House Report 106-824 - FORT PECK RESERVATION RURAL WATER SYSTEM ACT OF 2000

[House Report 106-824]
[From the U.S. Government Publishing Office]

106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-824

======================================================================

FORT PECK RESERVATION RURAL WATER SYSTEM ACT OF 2000

_______

September 7, 2000.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed

_______

Mr. Young of Alaska, from the Committee on Resources, submitted the
following

R E P O R T

[To accompany H.R. 1124]

[Including cost estimate of the Congressional Budget Office]

The Committee on Resources, to whom was referred the bill
(H.R. 1124) to authorize construction of the Fort Peck
Reservation Rural Water System in the State of Montana, and for
other purposes, having considered the same, report favorably
thereon with an amendment and recommend that the bill as
amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Fort Peck Reservation Rural Water
System Act of 2000''.

SEC. 2. PURPOSES.

The purposes of this Act are--
(1) to ensure a safe and adequate municipal, rural, and
industrial water supply for the residents of the Fort Peck
Indian Reservation in the State of Montana; and
(2) to assist the citizens of Roosevelt, Sheridan, Daniels,
and Valley Counties in the State, outside the Fort Peck Indian
Reservation, in developing safe and adequate municipal, rural,
and industrial water supplies.

SEC. 3. DEFINITIONS.

In this Act:
(1) Assiniboine and sioux rural water system.--The term
``Assiniboine and Sioux Rural Water System'' means the rural
water system within the Fort Peck Indian Reservation authorized
by section 4.
(2) Dry prairie rural water system.--The term ``Dry Prairie
Rural Water System'' means the rural water system authorized by
section 5 in the Roosevelt, Sheridan, Daniels, and Valley
Counties of the State.
(3) Fort peck reservation rural water system.--The term
``Fort Peck Reservation Rural Water System'' means the
Assiniboine and Sioux Rural Water System and the Dry Prairie
Rural Water System.
(4) Fort peck tribes.--The term ``Fort Peck Tribes'' means
the Assiniboine and Sioux Indian Tribes within the Fort Peck
Indian Reservation.
(5) Pick-sloan.--The term ``Pick-Sloan'' means the Pick-Sloan
Missouri River Basin Program (authorized by section 9 of the
Act entitled ``An Act authorizing the construction of certain
public works on rivers and harbors for flood control, and for
other purposes'', approved December 22, 1944 (commonly known as
the ``Flood Control Act of 1944'') (58 Stat. 891)).
(6) Secretary.--The term ``Secretary'' means the Secretary of
the Interior.
(7) State.--The term ``State'' means the State of Montana.

SEC. 4. ASSINIBOINE AND SIOUX RURAL WATER SYSTEM.

(a) Authorization.--The Secretary shall plan, design, construct,
operate, maintain, and replace a municipal, rural, and industrial water
system, to be known as the ``Assiniboine and Sioux Rural Water
System'', as generally described in the report required by subsection
(g)(2).
(b) Components.--The Assiniboine and Sioux Rural Water System shall
consist of--
(1) pumping and treatment facilities located along the
Missouri River within the boundaries of the Fort Peck Indian
Reservation;
(2) pipelines extending from the water treatment plant
throughout the Fort Peck Indian Reservation;
(3) distribution and treatment facilities to serve the needs
of the Fort Peck Indian Reservation, including--
(A) public water systems in existence on the date of
enactment of this Act that may be purchased, improved,
and repaired in accordance with the cooperative
agreement entered into under subsection (c); and
(B) water systems owned by individual tribal members
and other residents of the Fort Peck Indian
Reservation;
(4) appurtenant buildings and access roads;
(5) all property and property rights necessary for the
facilities described in this subsection;
(6) electrical power transmission and distribution facilities
necessary for services to Fort Peck Reservation Rural Water
System facilities; and
(7) such other pipelines, pumping plants, and facilities as
the Secretary determines to be appropriate to meet the water
supply, economic, public health, and environmental needs of the
Fort Peck Indian Reservation, including water storage tanks,
water lines, and other facilities for the Fort Peck Tribes and
the villages, towns, and municipalities in the Fort Peck Indian
Reservation.
(c) Cooperative Agreement.--
(1) In general.--The Secretary shall enter into a cooperative
agreement with the Fort Peck Tribal Executive Board for
planning, designing, constructing, operating, maintaining, and
replacing the Assiniboine and Sioux Rural Water System.
(2) Mandatory provisions.--The cooperative agreement under
paragraph (1) shall specify, in a manner that is acceptable to
the Secretary and the Fort Peck Tribal Executive Board--
(A) the responsibilities of each party to the
agreement for--
(i) needs assessment, feasibility, and
environmental studies;
(ii) engineering and design;
(iii) construction;
(iv) water conservation measures; and
(v) administration of contracts relating to
performance of the activities described in
clauses (i) through (iv);
(B) the procedures and requirements for approval and
acceptance of the design and construction and for
carrying out other activities described in subparagraph
(A); and
(C) the rights, responsibilities, and liabilities of
each party to the agreement.
(3) Optional provisions.--The cooperative agreement under
paragraph (1) may include provisions relating to the purchase,
improvement, and repair of water systems in existence on the
date of enactment of this Act, including systems owned by
individual tribal members and other residents of the Fort Peck
Indian Reservation.
(4) Termination.--The Secretary may terminate a cooperative
agreement under paragraph (1) if the Secretary determines
that--
(A) the quality of construction does not meet all
standards established for similar facilities
constructed by the Secretary; or
(B) the operation and maintenance of the Assiniboine
and Sioux Rural Water System does not meet conditions
acceptable to the Secretary that are adequate to
fulfill the obligations of the United States to the
Fort Peck Tribes.
(5) Transfer.--On execution of a cooperative agreement under
paragraph (1), in accordance with the cooperative agreement,
the Secretary may transfer to the Fort Peck Tribes, on a
nonreimbursable basis, funds made available for the Assiniboine
and Sioux Rural Water System under section 9.
(d) Service Area.--The service area of the Assiniboine and Sioux
Rural Water System shall be the area within the boundaries of the Fort
Peck Indian Reservation.
(e) Construction Requirements.--The components of the Assiniboine and
Sioux Rural Water System shall be planned and constructed to a size
that is sufficient to meet the municipal, rural, and industrial water
supply requirements of the service area of the Fort Peck Reservation
Rural Water System.
(f) Title to Assiniboine and Sioux Rural Water System.--Title to the
Assiniboine and Sioux Rural Water System shall be held in trust by the
United States for the Fort Peck Tribes and shall not be transferred
unless a transfer is authorized by an Act of Congress enacted after the
date of enactment of this Act.
(g) Limitation on Availability of Construction Funds.--The Secretary
shall not obligate funds for construction of the Assiniboine and Sioux
Rural Water System until--
(1) the requirements of the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.) are met with respect to the
Assiniboine and Sioux Rural Water System;
(2) on or after the date that is 90 days after the date of
submission to Congress of a final engineering report approved
by the Secretary; and
(3) the Secretary publishes a written finding that the water
conservation plan developed under section 7 includes prudent
and reasonable water conservation measures for the operation of
the Assiniboine and Sioux Rural Water System that have been
shown to be economically and financially feasible.
(h) Technical Assistance.--The Secretary shall provide such technical
assistance as is necessary to enable the Fort Peck Tribes to plan,
design, construct, operate, maintain, and replace the Assiniboine and
Sioux Rural Water System, including operation and management training.
(i) Application of Indian Self-Determination Act.--Planning, design,
construction, operation, maintenance, and replacement of the
Assiniboine and Sioux Rural Water System within the Fort Peck Indian
Reservation shall be subject to the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450 et seq.).
(j) Cost Sharing.--
(1) Construction.--The Federal share of the cost of
construction of the Assiniboine and Sioux Rural Water System
shall be 100 percent, and shall be funded through annual
appropriations to the Bureau of Reclamation.
(2) Operation and maintenance.--The Federal share of the cost
of operation and maintenance of the Assiniboine and Sioux Rural
Water System shall be 100 percent, and shall be funded through
annual appropriations to the Bureau of Indian Affairs.

SEC. 5. DRY PRAIRIE RURAL WATER SYSTEM.

(a) Planning and Construction.--
(1) Authorization.--The Secretary shall enter into a
cooperative agreement with Dry Prairie Rural Water Association
Incorporated (or any successor non-Federal entity) to provide
Federal funds for the planning, design, and construction of the
Dry Prairie Rural Water System in Roosevelt, Sheridan, Daniels,
and Valley Counties, Montana, outside the Fort Peck Indian
Reservation.
(2) Use of federal funds.--
(A) Federal share.--The Federal share of the cost of
planning, design, and construction of the Dry Prairie
Rural Water System shall be not more than 76 percent,
and shall be funded with amounts appropriated from
thereclamation fund. Such amounts shall not be returnable or
reimbursable under the Federal reclamation laws.
(B) Cooperative agreements.--Federal funds made
available to carry out this section may be obligated
and expended only through a cooperative agreement
entered into under subsection (c).
(b) Components.--The components of the Dry Prairie Rural Water System
facilities on which Federal funds may be obligated and expended under
this section shall include--
(1) storage, pumping, interconnection, and pipeline
facilities;
(2) appurtenant buildings and access roads;
(3) all property and property rights necessary for the
facilities described in this subsection;
(4) electrical power transmission and distribution facilities
necessary for service to Dry Prairie Rural Water System
facilities; and
(5) other facilities customary to the development of rural
water distribution systems in the State, including supplemental
water intake, pumping, and treatment facilities.
(c) Cooperative Agreement.--
(1) In general.--The Secretary, with the concurrence of the
Assiniboine and Sioux Rural Water System Board, shall enter
into a cooperative agreement with Dry Prairie Rural Water
Association Incorporated to provide Federal assistance for the
planning, design, and construction of the Dry Prairie Rural
Water System.
(2) Mandatory provisions.--The cooperative agreement under
paragraph (1) shall specify, in a manner that is acceptable to
the Secretary and Dry Prairie Rural Water Association
Incorporated--
(A) the responsibilities of each party to the
agreement for--
(i) needs assessment, feasibility, and
environmental studies;
(ii) engineering and design;
(iii) construction;
(iv) water conservation measures; and
(v) administration of contracts relating to
performance of the activities described in
clauses (i) through (iv);
(B) the procedures and requirements for approval and
acceptance of the design and construction and for
carrying out other activities described in subparagraph
(A); and
(C) the rights, responsibilities, and liabilities of
each party to the agreement.
(d) Service Area.--
(1) In general.--Except as provided in paragraph (2), the
service area of the Dry Prairie Rural Water System shall be the
area in the State--
(A) north of the Missouri River;
(B) south of the border between the United States and
Canada;
(C) west of the border between the States of North
Dakota and Montana; and
(D) east of the western line of range 39 east.
(2) Fort peck indian reservation.--The service area shall not
include the area inside the Fort Peck Indian Reservation.
(e) Limitation on Availability of Construction Funds.--The Secretary
shall not obligate funds for construction of the Dry Prairie Rural
Water System until--
(1) the requirements of the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.) are met with respect to the
Dry Prairie Rural Water System;
(2) on or after the date that is 90 days after the date of
submission to Congress of a final engineering report approved
by the Secretary; and
(3) the Secretary publishes a written finding that the water
conservation plan developed under section 7 includes prudent
and reasonable water conservation measures for the operation of
the Dry Prairie Rural Water System that have been shown to be
economically and financially feasible.
(f) Interconnection of Facilities.--The Secretary shall--
(1) interconnect the Dry Prairie Rural Water System with the
Assiniboine and Sioux Rural Water System; and
(2) provide for the delivery of water to the Dry Prairie
Rural Water System from the Missouri River through the
Assiniboine and Sioux Rural Water System.
(g) Limitation on Use of Federal Funds.--
(1) In general.--The operation, maintenance, and replacement
expenses associated with water deliveries from the Assiniboine
and Sioux Rural Water System to the Dry Prairie Rural Water
System shall not be a Federal responsibility and shall be borne
by the Dry Prairie Rural Water System.
(2) Federal funds.--The Secretary may not obligate or expend
any Federal funds for the operation, maintenance, or
replacement of the Dry Prairie Rural Water System.
(h) Title to Dry Prairie Rural Water System.--Title to the Dry
Prairie Rural Water System shall be held by Dry Prairie Rural Water
Association, Incorporated.

SEC. 6. USE OF PICK-SLOAN POWER.

(a) In General.--From power designated for future irrigation and
drainage pumping for the Pick-Sloan Missouri Basin program, the Western
Area Power Administration shall make available, at the firm power rate,
the capacity and energy required to meet the pumping and incidental
operational requirements of the Fort Peck Reservation Rural Water
System.
(b) Qualification to Use Pick-Sloan Power.--For as long as the Fort
Peck Reservation rural water supply system operates on a not-for-profit
basis, the portions of the water supply project constructed with
assistance under this Act shall be eligible to receive firm power from
the Pick-Sloan Missouri Basin program established by section 9 of the
Act of December 22, 1944 (chapter 665; 58 Stat. 887), popularly known
as the Flood Control Act of 1944.
(c) Recovery of Expenses.--
(1) Assiniboine and sioux rural water system.--In the case of
the Assiniboine and Sioux Rural Water System, the Western Area
Power Administration shall recover expenses associated with
power purchases under subsection (a) through a separate power
charge sufficient to cover such expenses. Such charge shall be
paid fully through the annual appropriations to the Bureau of
Indian Affairs.
(2) Dry prairie rural water system.--In the case of the Dry
Prairie Rural Water System, the Western Area Power
Administration shall recover expenses associated with power
purchases under subsection (a) through a separate power charge
sufficient to cover expenses. Such charge shall be paid fully
by the Dry Prairie Rural Water System.
(d) Additional Power.--If power in addition to that made available
under subsection (a) is required to meet the pumping requirements of
the Fort Peck Reservation Rural Water System, the Administrator of the
Western Area Power Administration may purchase the necessary additional
power at the best available rate. The costs of such purchases shall be
reimbursed to the Administrator according to the terms identified in
subsection (c).

SEC. 7. WATER CONSERVATION PLAN.

(a) In General.--The Fort Peck Tribes and Dry Prairie Rural Water
Association Incorporated 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 implementing the measures and this
Act to meet the water conservation objectives.
(b) Purpose.--The water conservation plan under subsection (a) shall
be designed to ensure that users of water from the Assiniboine and
Sioux Rural Water System and the Dry Prairie Rural Water System will
use the best practicable 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 an activity authorized
under this Act.

SEC. 8. WATER RIGHTS.

(a) In General.--This Act does not--
(1) impair the validity of or preempt any provision of State
water law or any interstate compact governing water;
(2) alter the right of any State to any appropriated share of
the water of any body of surface or ground water, whether
determined by any past or future interstate compact or by any
past or future legislative or final judicial allocation;
(3) preempt or modify any Federal or State law or interstate
compact concerning water quality or disposal;
(4) confer on any non-Federal entity the authority to
exercise any Federal right to the water of any stream or to any
ground water resource;
(5) affect any right of the Fort Peck Tribes to water,
located within or outside the external boundaries of the Fort
Peck Indian Reservation, based on a treaty, compact, executive
order, agreement, Act of Congress, aboriginal title, the
decision in Winters v. United States, 207 U.S. 564 (1908)
(commonly known as the ``Winters Doctrine''), or other law; or
(6) validate or invalidate any assertion of the existence,
nonexistence, or extinguishment of any water right held or
Indian water compact entered into by the Fort Peck Tribes or by
any other Indian tribe or individual Indian under Federal or
State law.
(b) Offset Against Claims.--Any funds received by the Fort Peck
Tribes pursuant to this Act shall be used to offset any claims for
money damages against the United States by the Fort Peck Tribes,
existing on the date of the enactment of this Act, for water rights
based on a treaty, compact, executive order, agreement, Act of
Congress, aboriginal title, the decision in Winters v. United States,
207 U.S. 564 (1908), or other law.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

(a) Assiniboine and Sioux Rural Water System.--There are authorized
to be appropriated--
(1) to the Bureau of Reclamation over a period of 10 fiscal
years, $124,000,000 for the planning, design, and construction
of the Assiniboine and Sioux Rural Water System; and
(2) to the Bureau of Indian Affairs such sums as are
necessary for the operation and maintenance of the Assiniboine
and Sioux Rural Water System.
(b) Dry Prairie Rural Water System.--There is authorized to be
appropriated, over a period of 10 fiscal years, $51,000,000 for the
planning, design, and construction of the Dry Prairie Rural Water
System.
(c) Cost Indexing.--The funds authorized to be appropriated may be
increased or decreased by such amounts as are justified by reason of
ordinary fluctuations in development costs incurred after October 1,
1998, as indicated by engineering cost indices applicable for the type
of construction involved.

PURPOSE OF THE BILL

The purpose of H.R. 1124 is to authorize construction of
the Fort Peck Reservation Rural water System in the State of
Montana, and for other purposes.

BACKGROUND

The Fort Peck Reservation is located in northeastern
Montana and includes large parts of Roosevelt and Valley
Counties. The Reservation is approximately 100 miles long by 40
miles wide and lies along the Missouri River about 20 miles
south of the Canadian border. The Reservation is home to the
Assiniboine and Sioux Tribes and about 6,000 of the 11,000
enrolled members live on the Reservation, which comprises
slightly over two million acres. Approximately 400,000 acres
(19 percent) are in Tribal ownership, about 543,000 (26
percent) are owned by Tribal members, and 1,100,000 (55
percent) are held in fee by non-Indians.
The Fort Peck Reservation suffers from the same problem of
inadequate quantity and quality of water supplies as do most
areas in the High Plains. The Bureau of Reclamation
participated in a needs assessment which documented that
groundwater supplies did not meet Environmental Protection
Agency requirements and that available supplies were not
adequate. The Indian Health Service and the Tribal Health
Office have issued several public health alerts. The Bureau of
Reclamation also participated in a feasibility study that
included review of the use of Missouri River water as a supply
source for a Reservation-wide distribution system. The adjacent
communities have the same problems, and the legislation
contemplates that the Reservation system would be sized to
connect to a distribution system for the surrounding
communities. All costs of the Reservation system, including
operations and maintenance would be a federal responsibility.
The costs associated with the operation and maintenance of the
system for the Tribe shall be funded through annual
appropriations to the Bureau of Indian Affairs. Federal costs
for the Dry Prairie system shall not exceed 76 percent, and the
federal government may not expend any federal funds for
operations, maintenance or replacement costs for the Dry
Prairie system.

COMMITTEE ACTION

H.R. 1124 was introduced on March 16, 1999, by Congressman
Rick Hill (R-MT). The Senate companion legislation is S. 624,
introduced on the same day by Senator Conrad Burns (R-MT). The
bill was referred to the Committee on Resources, and within the
Committee to the Subcommittee on Water and Power. On July 26,
2000 the Resources Committee met to consider the bill. The
Subcommittee on Water and Power was discharged from
consideration of the measure by unanimous consent. No
amendments were offered and the bill was ordered favorably
reported to the House of Representatives by unanimous consent.

SECTION-BY-SECTION ANALYSIS

Section 1. Short title

The short title of the bill is the ``Fort Peck Reservation
Rural Water System Act of 2000''.

Section 2. Purposes

This section sets forth the purposes for the legislation.

Section 3. Definitions

This section provides definitions of terms used in the
bill, including ``Assiniboine and Sioux Rural Water System'',
``Dry Prairie Rural Water System'', ``Fort Peck Reservation
Rural Water System'', and ``Fort Peck Tribes'', among others.

Section 4. Assiniboine and Sioux Rural Water System

This section authorizes the Secretary of the Interior to
plan, design, construct, operate, maintain and replace a
municipal, rural, and industrial water system for the Fort Peck
Reservation. This section describes the components of the
system, provides for a cooperative agreement between the
Secretary and the Fort Peck Tribes to define the
responsibilities of each for the planning, design,
construction, and operation and maintenance, and provides that
title to the system shall be held in trust by the United States
for the Fort Peck Tribes. The Committee expects that the Fort
Peck Tribes will charge operation, maintenance and replacement
costs for the water delivered to the Dry Prairie Rural Water
System, but will not charge for access to water, use of water
rights held by the Tribes, or for other purposes. The federal
share of the operation of maintenance shall be 100 percent, and
shall be funded through annual appropriations to the Bureau of
Indian Affairs.

Section 5. Dry Prairie Rural Water System

This section authorizes the Secretary of the Interior to
enter into a cooperative agreement with the Dry Prairie Rural
Water Association Incorporated to provide federal funds for the
planning, design, and construction of the Dry Prairie Rural
Water System. This section limits the federal share to not more
than 76 percent. This section requires that the amounts
appropriated come from the Reclamation Fund. In addition, the
section describes the components of the system, the cooperative
agreement, the service area of the system, and limitations on
availability of construction funds. The Committee expects that
the Secretary shall provide technical support regarding the
cooperative agreement between the Fort Peck and Dry Prairie
Systems regarding the interconnection of facilities.

Section 6. Use of Pick-Sloan Power

This section provides that the Western Area Power
Administration shall make available power which was originally
designated for future irrigation and drainage for the Pick-
Sloan Missouri River Basin to be used instead for pumping,
treatment, and incidental operational requirements of both
water systems at the firm power rate. The Committee expects
that additional power will be provided by the Western Area
Power Administration outside the months of April through
October, when futureirrigation and drainage power is not
available, and such additional power, when not available from Western
Area Power Administration, may be purchased by the Western Area Power
Administration at the best available rate. This section also provides
conditions for the use of such capacity and energy. The Committee
expects that the capacity and energy marketed by the Western Area Power
Administration to the Assiniboine and Sioux Rural Water System and to
the Dry Prairie Rural Water System will be delivered through a
preference power entity.

Section 7. Water conservation plan

This section requires that the Fort Peck Tribes and the Dry
Prairie Rural Water Association Incorporated shall develop a
water conservation plan and describes the components of that
plan.

Section 8. Water rights

This section addresses water rights issues. The Committee
expects that any funds received by the Tribe under this bill
shall be used to offset any claims for money damages against
the United States by the Fort Peck Tribes for water rights
based on a treaty, compact, executive order, agreement, Act of
Congress, aboriginal title, the decision in Winters versus
United States, or other law.

Section 9. Authorization of appropriations

This section authorizes $124 million over a period of 10
fiscal years for the planning, design, and construction of the
Assiniboine and Sioux Rural Water System and such sums as
necessary for operation, maintenance and replacement and power
costs. This section also authorizes $51,000,000 over a period
of 10 fiscal years for the planning, design, and construction
of the Dry Prairie Rural Water System. Cost indexing is
permitted.

COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Resources' oversight findings and recommendations
are reflected in the body of this report.

CONSTITUTIONAL AUTHORITY STATEMENT

Article I, section 8 of the Constitution of the United
States grants Congress the authority to enact this bill.

COMPLIANCE WITH HOUSE RULE XIII

1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the
Rules of the House of Representatives requires an estimate and
a comparison by the Committee of the costs which would be
incurred in carrying out this bill. However, clause 3(d)(3)(B)
of that rule provides that this requirement does not apply when
the Committee has included in its report a timely submitted
cost estimate of the bill prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974.
2. Congressional Budget Act. As required by clause 3(c)(2)
of rule XIII of the Rules of the House of Representatives and
section 308(a) of the Congressional Budget Act of 1974, this
bill does not contain any new budget authority, spending
authority, credit authority, or an increase or decrease in
revenues or tax expenditures.
3. Government Reform Oversight Findings. Under clause
3(c)(4) of rule XIII of the Rules of the House of
Representatives, the Committee has received no report of
oversight findings and recommendations from the Committee on
Government Reform on this bill.
4. Congressional Budget Office Cost Estimate. Under clause
3(c)(3) of rule XIII of the Rules of the House of
Representatives and section 403 of the Congressional Budget Act
of 1974, the Committee has received the following cost estimate
for this bill from the Director of the Congressional Budget
Office:

U.S. Congress,
Congressional Budget Office,
Washington, DC, August 30, 2000.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1124, the Fort
Peck Reservation Rural Water System Act of 2000.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Barry Blom
(for federal costs), and Theresa Gullo (for the state and local
impact).
Sincerely,
Steven Lieberman
(For Dan L. Crippen, Director).
Enclosure.

H.R. 1124--Fort Peck Reservation Rural Water System Act of 2000

Summary: H.R. 1124 would authorize appropriations for a
water supply system serving the Fort Peck Indian Reservation
and the Dry Prairie Rural Water System in Montana. This bill
would authorize a total of $175 million (in 2000 dollars) over
a 10-year period for the construction of the system and would
authorize such sums as may be necessary for the operation and
maintenance of the facilities on the reservation. It would
direct the Secretary of the Interior to enter into cooperative
agreements with the Fort Peck Tribal Executive Board and the
Dry Prairie Rural Water Association that would allow those
entities to implement the project if they comply with certain
terms and conditions in the bill. All costs associated with the
tribal portion of the project would be the responsibility of
the Bureau of Reclamation. The Dry Prairie Rural Water System
would be required to pay for operation and maintenance of its
portion of the system but would not be obligated to repay the
federal contribution to the project.
Adjusting for inflation, CBO estimates that implementing
the bill would require appropriations of $207 million over the
2001-2010 period and additional amounts thereafter. We estimate
that $66 million of this total would be spent over the 2001-
2005 period and $141 million over fiscal years 2006 through
2010. Outlays for operation and maintenance costs in subsequent
years would average about $2 million a year (in 2000 dollars)
and would continue over the life of the tribal water system, or
through at least fiscal year 2050. Because H.R. 1124 would not
affect direct spending or receipts, pay-as-you-go procedures
would not apply.
H.R. 1124 contains an intergovernmental mandate as defined
in the Unfunded Mandates Reform Act (UMRA). CBO estimates that
complying with this mandate would impose no significant costs
on state, local, or tribal governments, so the threshold
established by that act ($55 million in 2000, adjusted annually
for inflation) would not be exceeded. The bill contains no new
private-sector mandates as defined in UMRA.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 1124 is shown in the following table.
The costs of this legislation fall within budget function 300
(natural resources and environment).

----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------
2001 2002 2003 2004 2005
----------------------------------------------------------------------------------------------------------------
Changes in Spending Subject to Appropriation

Estimated Authorization Level 3 5 15 21 22
Estimated Outlays.................................................. 3 5 15 21 22
----------------------------------------------------------------------------------------------------------------

Basis of estimate: For this estimate, CBO assumes that
appropriations would be provided as needed to design,
construct, and operate this water supply system. We also assume
that the Secretary would complete the cooperative agreements
with the Fort Peck Tribes and the Dry Prairie Rural Water
Association in fiscal year 2001.
Our estimate of project costs is based on a preliminary
construction schedule prepared by the tribes and the
association that is consistent with the amounts and conditions
specified in H.R. 1124. CBO adjusted those estimates to reflect
the impact of anticipated inflation during the time between the
authorization and appropriation of project funding. We expect
that outlays would occur as funds are obligated because, under
the bill, project implementation would be the responsibility of
the tribes and the association.
Pay-as-you-go considerations: None.
Estimated impact on State, local, and tribal governments:
H.R. 1124 contains an intergovernmental mandate as defined in
UMRA. CBO estimates that complying with this mandate would
impose no significant costs on state, local, or tribal
governments, so the threshold established by that act ($55
million in 2000, adjusted annually for inflation) would not be
exceeded.

Mandates

The bill would require the Fort Peck Tribes and the Dry
Prairie Rural Water Association (a public entity) to develop a
water conservation plan. This requirement would be an
intergovernmental mandate as defined in UMRA. Because these
organizations have already developed a plan, however, complying
with this mandate would result in no significant additional
costs.

Other impacts

The Dry Prairie Rural Water Association and the state of
Montana would probably incur some additional costs as a result
of this bill's enactment, but these costs would be voluntary.
H.R. 1124 would require nonfederal participants to pay part of
the cost of constructing the Dry Prairie system and to pay all
the costs of operating and maintaining this system.
Estimated impact on the private sector: This bill contains
no new private-sector mandates as defined in UMRA.
Previous CBO estimates: On October 8, 1999, CBO transmitted
a cost estimate for S. 624, the Fort Peck Reservation Rural
Water System Act of 1999, as ordered reported by the Senate
Committee on Energy and Natural Resources on September 22,
1999. H.R. 1124 and S. 624 are very similar, and the costs of
the two versions of the legislation are nearly identical.
On August 30, 2000, CBO transmitted a cost estimate for S.
624 as ordered reported by the House Committee on Resources on
July 26, 2000. The House version of S. 624 and H.R. 1124 are
identical, as are the cost estimates.
Estimate prepared by: Federal Costs: Barry Blom; Impact on
State, Local, and Tribal Governments: Theresa Gullo; Impact on
Private Sector: Lauren Marks.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.

COMPLIANCE WITH PUBLIC LAW 104-4

This bill contains no unfunded mandates, as defined in
Public Law 104-4.

PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

This bill is not intended to preempt any State, local or
tribal law.

CHANGES IN EXISTING LAW

If enacted, this bill would make no changes in existing
law.