S4040-119

What This Bill Does

The Dakota Water Resources Act Amendments of 2026 authorizes additional indexed federal funding for North Dakota water infrastructure projects under Public Law 89-108. For state, municipal, rural, and industrial water service under section 7(a), it authorizes $120 million for the Northwest Area Water Supply Biota Water Treatment Plant and Pump Station Project; $404 million for the McClusky Canal and Missouri River North Alternative for the Eastern North Dakota Alternate Water Supply Project; $50 million for the Southwest Pipeline Project; and $63 million for North Dakota rural water districts, including the South Central Regional Water District North Burleigh Water Treatment Plant Expansion and Phase One of the Northeast North Dakota Long-Term Water Supply Project.

The bill allows amounts for those four project categories to be transferred among the projects, but no project's initial authorization may increase by more than 50 percent because of those transfers. For the Southwest Pipeline Project and North Dakota rural water district projects, the Secretary may use necessary amounts to complete final engineering reports within two years after enactment.

For Tribal municipal, rural, and industrial water systems under section 7(d), the bill authorizes $743 million, indexed. It allocates up to $118 million to complete the Spirit Lake Rural Water System within the Fort Totten Indian Reservation; up to $275 million to complete the Three Affiliated Tribes Rural Water System within the Fort Berthold Indian Reservation; up to $240 million to complete the Standing Rock Rural Water System within the Standing Rock Indian Reservation; up to $98 million to complete the Turtle Mountain Rural Water System within the Turtle Mountain Indian Reservation; and $12 million for a Lake Traverse Rural Water System feasibility study and, if feasible under reclamation laws, initial construction of the preferred alternative. The Secretary may also use these amounts for final engineering reports for the Spirit Lake, Three Affiliated Tribes, Standing Rock, and Turtle Mountain systems within two years.

The bill authorizes $75 million for section 11, to remain available until expended. It revises the indexing rules so several existing and new authorization amounts adjust for ordinary construction-cost fluctuations based on applicable engineering cost indices, while all other authorized cost ceilings remain unchanged. It also updates the Natural Resources Trust provision to include the new subsection (b)(1)(D) amounts.

Who Benefits and How

North Dakota communities served by the Northwest Area Water Supply, Eastern North Dakota Alternate Water Supply, Southwest Pipeline, and rural water district projects benefit from new indexed federal authorization levels for water treatment, raw-water intake, pump station, transmission, hydraulic, and rural distribution work. The Spirit Lake, Three Affiliated Tribes, Standing Rock, Turtle Mountain, and Lake Traverse reservation water systems benefit from the $743 million indexed Tribal water-system authorization and final engineering report authority. The Bureau of Reclamation and project sponsors benefit from transfer authority and indexing that can respond to construction-cost changes. Water infrastructure contractors benefit from potential construction and engineering work if the amounts are appropriated.

Who Bears the Burden and How

Federal taxpayers pay the budgetary cost if Congress appropriates the new indexed authorizations. The Secretary and Bureau of Reclamation must administer allocations, transfer limits, indexing, feasibility reviews, and final engineering reports. Project sponsors must comply with federal water-project requirements, complete engineering work, and stay within transfer limits that prohibit increasing any one project's initial authorization by more than 50 percent through transfers.

Key Provisions

• Authorizes indexed additional amounts for the Northwest Area Water Supply, Eastern North Dakota Alternate Water Supply, Southwest Pipeline, and North Dakota rural water district projects.
• Limits transfers among those project categories so no initial project authorization can increase by more than 50 percent through transfers.
• Authorizes $743 million, indexed, for Tribal rural water systems at Spirit Lake, Three Affiliated Tribes, Standing Rock, Turtle Mountain, and Lake Traverse.
• Requires final engineering reports within two years for specified Southwest Pipeline, North Dakota rural district, Spirit Lake, Three Affiliated Tribes, Standing Rock, and Turtle Mountain projects.
• Authorizes $75 million for section 11 to remain available until expended.
• Expands indexing rules for existing and new authorization amounts based on engineering construction-cost indices.