Dry-Redwater Regional Water Authorization Act

Overview

S 4489, the Dry-Redwater Regional Water Authorization Act, would authorize a federally assisted water system serving parts of Montana and North Dakota. The bill sets up a framework for planning, design, and construction of the Dry-Redwater Regional Water Authority System, with cost-sharing, power use arrangements, and governance by the Dry-Redwater Regional Water Authority (the Authority). It references a feasibility study dated October 2025 and builds on authority granted under the Clean Water for Rural Communities Act.

Purpose and scope

• To ensure a safe and adequate municipal, rural, and industrial water supply for:
  • Garfield, McCone, Prairie, Dawson, and Richland Counties in Montana
  • McKenzie County in North Dakota
• Establishes the Dry-Redwater Regional Water Authority System as the project to be carried out, with the Authority (a Montana-based publicly owned nonprofit water authority) as the owner of the Water System.

Key provisions

1) authorization and planning

• Secretary of the Interior may develop the Water System consistent with the Dry-Redwater feasibility study (Oct 2025), including revisions, under the Clean Water for Rural Communities Act.
• A cooperative agreement is required between the Secretary and the Authority to provide Federal assistance for planning, design, and construction.

2) cost sharing and funding

• Federal share of planning, design, and construction is capped at 75% of total costs, or a lesser amount per Secretary’s feasibility report.
• Federal funds used for specified facilities and services (water pumping, treatment, storage, pipelines, interconnections, power facilities, etc.) and related property rights.
• Additional allowable uses for federal funds include water intake facilities and distribution/pumping/storage facilities serving public water system needs and existing systems as of enactment.
• Federal funds cannot be used for operation, maintenance, or replacement of the Water System.
• Title to the Water System remains with the Authority.

3) power and transmission (Pick-Sloan Program)

• The Administrator of the Western Area Power Administration must make available a sufficient quantity of power annually to operate the Water System, including all components from intake through distribution.
• Eligibility requires the Water System to operate on a not-for-profit basis and to be constructed under a Secretary-approved cooperative agreement.
• Power charged at the firm power rate; the Authority is responsible for paying power charges and non-Federal delivery costs.
• The Water System is responsible for all non-Federal transmission and distribution arrangements and must fund any necessary upgrades to deliver power, including upgrades to the Integrated System and any non-Federal transmission/distribution systems.

4) water rights and state authorities

• Nothing in the Act preempts or affects state water laws or any state authority to manage water resources as of enactment.

5) statutory funding and adjustments

• Authorization of $602,000,000 for planning, design, and construction for fiscal years 2027–2037.
• Funding amount may be adjusted for cost-index fluctuations after January 1, 2024, per engineering cost indices.
• Provisions to adjust construction costs to address market volatility and industry standards.

Affected parties and beneficiaries

• Counties in Montana: Garfield, McCone, Prairie, Dawson, Richland
• County in North Dakota: McKenzie
• The Water System will serve municipal, rural, and industrial users within the defined project service area.
• The Authority (Dry-Redwater Regional Water Authority) as owner and operator of the Water System.
• The Western Area Power Administration (and associated power providers) for power transmission and delivery under the Pick-Sloan framework.
• Public water systems and existing distribution entities that may interconnect or receive water.

Procedural and timeline notes

• Introduced and referred to the Senate Committee on Energy and Natural Resources on May 12, 2026.
• The bill would follow standard congressional appropriations and authorizing processes, including feasibility study guidance and a cooperative agreement mechanism with federal involvement.
• Funding authorization spans 2027–2037, with ongoing cost-indexing and volatility adjustments.

Potential impacts

• Provides a federally backed path for substantial water infrastructure in the specified Montana and North Dakota counties.
• Establishes a shared funding framework, with up to 75% federal support, to develop a large-scale regional water system.
• Creates integration with the federal power program (Pick-Sloan), including power supply and transmission arrangements linked to the Water System.
• Maintains state sovereignty over water rights and state authorities, avoiding preemption of state laws.
• Financial exposure and long-term commitments for the Authority and participating entities, tied to federal cost-sharing and power charges.