Use of revenue for drought resilience investments, extraordinary maintenance activities, or dam safety investments

(a) Definitions In this section: (1) Dam safety investment The term dam safety investment means a project undertaken to satisfy dam safety standards— (A) under the Federal Guidelines for Dam Safety issued by the Federal Emergency Management Agency or the Interagency Committee on Dam Safety; (B) under the Bureau of Reclamation Dam Safety Program established pursuant to the Reclamation Safety of Dams Act of 1978 (43 U.S.C. 506 et seq.), including repayment of an obligation for a corrective action taken pursuant to that program; or (C) required by the State for a non-Federal dam in which a Bureau of Reclamation project or facility is located. (2) Drought resilience investment The term drought resilience investment means an improvement or addition to an eligible facility that would increase drought resilience in a Reclamation State (as such term is defined in section 4014 of the WIIN Act (43 U.S.C. 390b note)). (3) Eligible facility The term eligible facility means— (A) a project or facility owned by the Bureau of Reclamation; and (B) a non-Federal facility that stores, transports, or delivers water to or from a project or facility described in subparagraph (A). (4) Eligible temporary transfer The term eligible temporary transfer means the temporary and voluntary selling, leasing, or exchanging of water or water rights among individuals or agencies that is allowable under the reclamation laws and the water law of the applicable State. (5) Extraordinary maintenance activity The term extraordinary maintenance activity means annual payments on repayment obligations incurred under section 9603 of the Omnibus Public Land Management Act of 2009 (43 U.S.C. 510b). (6) Reclamation act The term Reclamation Act means the Act of June 17, 1902 (32 Stat. 388, chapter 1093). (7) Transferor The term transferor means the holder of a water service, transferred works, water repayment, or other contract that entitles the holder to water from a Bureau of Reclamation project or facility that undertakes an eligible temporary transfer. (b) Retention of revenue A transferor may retain all amounts derived from an eligible temporary transfer that would otherwise be deposited in the reclamation fund established by the first section of the Reclamation Act (43 U.S.C. 391), in accordance with this section. (c) Use of funds Any funds retained by a transferor under subsection (b) may be used on completion of the repayment of capital attributable to the original construction of the project, if the funds are— (1) used for a drought resilience investment, extraordinary maintenance activity, or dam safety investment; or (2) placed in the reserve account of the transferor, to be used for drought resilience investments, extraordinary maintenance activities, or dam safety investments, subject to subsection (d). (d) Transfer of unused funds to reclamation fund Any funds placed in the reserve account of the transferor pursuant to subsection (c)(2) that are not used for drought resilience investments, extraordinary maintenance activities, or dam safety investments by the date that is 10 years after the date of the placement shall be transferred to the reclamation fund established by the first section of the Reclamation Act (43 U.S.C. 391) and shall be applied to the transferor’s repayment obligations in the same manner such funds would be applied outside of this section. (e) Reporting The transferor shall report to the Commissioner, from time to time as determined by the Commissioner, on the uses of funds derived from an eligible temporary transfer. (f) Effect (1) In general Nothing in this section— (A) affects any other authority of the Secretary to use amounts derived from revenues from a Bureau of Reclamation project; or (B) creates, impairs, alters, or supersedes a State water right. (2) Applicable law Any eligible temporary transfer shall comply with all applicable— (A) State water laws; (B) Federal laws and policies; and (C) interstate water compacts. (g) Applicability This section applies to the Reclamation Act and Acts supplemental to and amendatory of that Act (43 U.S.C. 371 et seq.).