Dry-Redwater Regional Water Authorization Act

Summary of HR 8745 — Dry-Redwater Regional Water Authorization Act

Purpose

• Authorizes the Dry-Redwater Regional Water Authority System in Montana to plan, design, and construct a regional water supply to ensure a safe and adequate municipal, rural, and industrial water supply for residents and users in targeted Montana counties and in McKenzie County, North Dakota.
• Builds on a feasibility study (October 2025) and aims to deliver a cooperative federal–nonfederal framework for rural water development.

Key Provisions and Changes

• Authorization and Federal Role

  • The Secretary of the Interior may carry out the Dry-Redwater Regional Water Authority System in substantially accordance with the Bureau of Reclamation feasibility study.
  • The Secretary must enter into a cooperative agreement with the Dry-Redwater Authority to provide federal assistance for planning, design, and construction.

• Authority and System Scope

  • Defines the Authority as the Dry-Redwater Regional Water Authority (or its nonprofit successor) and the Water System’s project service area, which includes:
  • Garfield and McCone Counties (Montana)
  • Areas west of the Yellowstone River in Dawson and Richland Counties (Montana)
  • Part of Prairie County (Montana)
  • The portion of McKenzie County, North Dakota west of the Yellowstone River

• Cost Sharing and Federal Funds

  • Federal share for planning, design, and construction shall not exceed 75% of total costs, or a lesser amount as determined by the Secretary via feasibility report.
  • Federal funds are not returnable or reimbursable under reclamation laws.
  • Eligible uses for federal funds include:
  • Water pumping, treatment, storage facilities
  • Transmission pipelines, pumping stations, appurtenances, access roads
  • Interconnection facilities to connect to public water systems
  • Power transmission/distribution facilities necessary for operation
  • Other facilities/services required for rural water development and for acquiring necessary property rights
  • Additional uses may cover water intake and facilities that serve public water system customers, exist as of enactment, and can be purchased/improved/repaired under a cooperative agreement.
  • Federal funds may not be used for ongoing operation, maintenance, or replacement of the Water System.
  • Title to the Water System remains with the Authority.

• Power Use and Transmission (Pick-Sloan)

  • Finds that McCone and Garfield Counties were designated as Fort Peck Dam impact counties and eligible for Pick-Sloan mitigation benefits.
  • The Administrator (of the Western Area Power Administration) shall make available power needed to operate the Water System, under conditions:
  • The Water System must operate on a not-for-profit basis and follow the cooperative agreement.
  • Power is delivered at a firm rate; the Water System covers power charges and non-federal delivery costs.
  • The Water System is responsible for all non-federal transmission and distribution arrangements and for funding necessary upgrades to deliver power.

• Water Rights and State Law

  • The Act does not preempt or modify state water law or state authorities’ management of water resources.

• Funding Authorization and Adjustments

  • Authorized funding of up to $602,000,000 for planning, design, and construction for fiscal years 2027–2037.
  • Funding amounts may be adjusted for cost-index fluctuations (post-January 1, 2024 indices) and for unforeseen construction cost volatility, as determined by the Secretary.

Who Would Be Affected

• Residents and water users in the specified Montana counties and in the portion of McKenzie County, ND, who would benefit from improved water supply infrastructure.
• The Dry-Redwater Regional Water Authority (and any successor nonprofit entity) as the project owner.
• Federal agencies involved in water resources and power transmission, notably the Department of the Interior, Bureau of Reclamation, and Western Area Power Administration.
• Public water systems that could interconnect with the Water System and communities served by the Pick-Sloan power program.

Timelines and Process

• The project would proceed under a cooperative agreement with the Authority following this Act, guided by the October 2025 feasibility study (approved under the 2021 Rural Water Act).
• Funding authorization spans 2027–2037, with potential adjustments for cost changes and market volatility as allowed by the bill.