Dry-Redwater Regional Water Authorization Act

This Act may be cited as the “Dry-Redwater Regional Water Authorization Act”.

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 in the State of Montana; and

(2) McKenzie County, North Dakota.

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. title 76, chapter 6, part 3 (1999); and

(B) any nonprofit successor entity to the Authority described in subparagraph (A).

(3) Integrated System.— The term Integrated System means the transmission system owned by the Western Area Power Administration, Basin Electric Power Cooperative, and Heartland Energy.

(4) Non-Federal transmission and distribution system.— The term non-Federal transmission and distribution system means a non-Federal utility that provides electricity to the counties covered by the Water System.

(5) 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).

(6) Secretary.— The term Secretary means the Secretary of the Interior.

(7) State.— The term State means the State of Montana.

(8) Water System.— The term Water System means the Dry-Redwater Regional Water Authority System authorized under section 4(a) with a project service area that includes—

(A) Garfield and McCone Counties in the State;

(B) the area west of the Yellowstone River in Dawson and Richland Counties in the State;

(C) T. 15 N (including the area north of the Township) in Prairie County in the State; and

(D) 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.

(a) Authorization.— The Secretary may carry out the project entitled the “Dry-Redwater Regional Water Authority System” in a manner that is substantially in accordance with the Bureau of Reclamation feasibility study entitled “Dry-Redwater Regional Water System Feasibility Study” and dated October 2025 (including revisions of the study), which was authorized under the Clean Water for Rural Communities Act (section 1110 of division FF of the Consolidated Appropriations Act, 2021 (Public Law 116–260; 134 Stat. 3246)), subject to the condition that livestock watering shall not be limited to incidental noncommercial livestock watering.

(b) Cooperative agreement.— 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.

(c) Cost-Sharing requirement.—

(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—

(i) 75 percent of the total cost of the Water System; or

(ii) such other lesser amount as may be determined by the Secretary, acting through the Commissioner of Reclamation, in a feasibility report.

(B) Limitation.— Amounts made available under subparagraph (A) shall not be returnable or reimbursable under the reclamation laws.

(2) Use of Federal funds.—

(A) General uses.— Subject to subparagraphs (B) and (C), the Water System may use Federal funds made available to carry out this section for—

(i) facilities relating to—

(I) water pumping;

(II) water treatment; and

(III) water storage;

(ii) transmission pipelines;

(iii) pumping stations;

(iv) appurtenant buildings, maintenance equipment, and access roads;

(v) any interconnection facility that connects a pipeline of the Water System to a pipeline of a public water system;

(vi) electrical power transmission and distribution facilities required for the operation and maintenance of the Water System;

(vii) any other facility or service required for the development of a rural water distribution system, as determined by the Secretary; and

(viii) any property or property right required for the construction or operation of a facility described in this subsection.

(B) Additional uses.— In addition to the uses described in subparagraph (A), the Water System may use Federal funds made available to carry out this section for—

(i) facilities relating to water intake; and

(ii) distribution, pumping, and storage facilities that—

(I) serve the needs of citizens who use public water systems;

(II) are in existence on the date of enactment of this Act; and

(III) may be purchased, improved, and repaired in accordance with a cooperative agreement entered into by the Secretary under subsection (b).

(C) Limitation.— Federal funds made available to carry out this section shall not be used for the operation, maintenance, or replacement of the Water System.

(D) Title.— Title to the Water System shall be held by the Authority.

(a) Finding.— Congress finds that—

(1) McCone and Garfield Counties in the State were designated as impact counties during the period in which the Fort Peck Dam was constructed; and

(2) as a result of the designation, the counties referred to in paragraph (1) were 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 operational requirements of the Water System each year—

(A) from the water intake facilities; and

(B) through all pumping stations, water treatment facilities, reservoirs, storage tanks, and pipelines up to the point of delivery of water by the water supply system to all storage reservoirs and tanks and each entity that distributes water at retail to individual users.

(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(b).

(3) Rate.— The Administrator shall establish the cost of the power described in paragraph (1) at the firm power rate.

(4) Responsibility for power charges.— The Authority shall be responsible for the payment of the power charge described in paragraph (3) and non-Federal delivery costs described in paragraph (5).

(5) Transmission arrangements.—

(A) In general.— The Water System shall be responsible for all non-Federal transmission and distribution system delivery and service arrangements.

(B) Upgrades.— The Water System shall be responsible for funding any transmission or distribution upgrades to the Integrated System, including upgrades to any non-Federal transmission or distribution system, that are necessary to deliver power to the Water System.

Nothing in this Act—

(1) preempts or affects any State water law; or

(2) affects any authority of a State, as in effect on the date of enactment of this Act, to manage water resources within that State.

(a) Authorization.— There is authorized to be appropriated for the planning, design, and construction of the Water System $602,000,000 for the period of fiscal years 2027 through 2037.

(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, 2024, as indicated by any available engineering cost indices applicable to construction activities that are similar to the construction of the Water System.

(c) Construction costs adjustment.— The amount authorized to be appropriated under subsection (a) shall be adjusted to address construction cost changes necessary to account for unforeseen market volatility that may not otherwise be captured by engineering cost indices, as determined by the Secretary, including repricing applicable to the types of construction and current industry standards involved.