II Calendar No. 649 119th CONGRESS 2d Session S. 3725 IN THE SENATE OF THE UNITED STATES January 29, 2026 Mr. Thune (for himself, Mr. Rounds , Ms. Klobuchar , Mr. Grassley , Ms. Ernst , and Ms. Smith ) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources September 17, 2026 Reported by Mr. Lee , with an amendment Strike out all after the enacting clause and insert the part printed in italic A BILL To require the Secretary of the Interior to conduct a study to determine the feasibility of constructing a project to supply municipal, rural, and industrial water to expand the capacity and reach of the Lewis and Clark Rural Water System, Inc. (doing business as “Lewis & Clark Regional Water System”), in the States of Iowa, Minnesota, and South Dakota. 1. Short title This Act may be cited as the “Lewis & Clark Regional Water System Expansion Feasibility Study Act”. 2. Definitions In this Act: (1) Non-Federal project entity The term “non-Federal project entity” means— (A) the Lewis and Clark Rural Water System, Inc. (doing business as “Lewis & Clark Regional Water System”); and (B) any nonprofit successor entity to the corporation described in subparagraph (A). (2) Proposed rural water supply project The term “proposed rural water supply project” means the proposed project to supply municipal, rural, and industrial water to expand the capacity and reach of the Lewis & Clark Regional Water System in the States of Iowa, Minnesota, and South Dakota. (3) Secretary The term Secretary means the Secretary of the Interior. 3. Lewis & Clark Regional Water System expansion feasibility study (a) Study (1) In general The Secretary, in coordination with the non-Federal project entity, shall carry out a study to determine the feasibility of the proposed rural water supply project. (2) Feasibility report After completion of the feasibility study for the proposed rural water supply project under paragraph (1), the Secretary shall— (A) develop a feasibility report that includes a recommendation of the Secretary on— (i) whether the proposed rural water supply project should be authorized for construction; and (ii) the appropriate non-Federal share of construction costs, which shall be— (I) at least 25 percent of the total construction costs; and (II) determined based on an analysis of the financial capability-to-pay the allocated construction and operations, maintenance, and replacement costs of the recommended plan; (B) submit the report under subparagraph (A) to the Committee on Energy and Natural Resources of the Senate and the Committee on Natural Resources of the House of Representatives; and (C) make the report under subparagraph (A) publicly available, along with associated feasibility study documents. (3) Consultation and cooperation In addition to the non-Federal project entity, the Secretary shall consult and cooperate with appropriate Federal, State, Tribal, regional, and local authorities during the conduct of the feasibility study and development of the feasibility report under this subsection. (b) Cost-Sharing agreement for feasibility study costs The Secretary shall enter into a cost-sharing agreement (or an appropriate financial assistance agreement, as determined by the Secretary) with the non-Federal project entity to conduct a study under subsection (a) that complies with the reclamation feasibility standards. (c) Federal share of feasibility study costs The Federal share of the total costs of carrying out the feasibility study under subsection (a) shall not exceed 50 percent. (d) Authorization of appropriations There is authorized to be appropriated to the Secretary to carry out this section $10,000,000. (e) Termination of authority The authority provided by this section expires on the date that is 10 years after the date of enactment of this Act. 1. Short title This Act may be cited as the “Lewis and Clark Regional Water System Expansion Feasibility Study Act”. 2. Lewis and Clark Regional Water System expansion feasibility study (a) Definitions In this section: (1) Lewis and Clark Regional Water Supply Project The term Lewis and Clark Regional Water Supply Project means the proposed project to supply municipal, rural, and industrial water to expand the capacity and reach of the Lewis and Clark Regional Water System in the States of Iowa, Minnesota, and South Dakota. (2) Non-Federal project entity The term non-Federal project entity means— (A) the Lewis and Clark Regional Water System, Inc.; and (B) any nonprofit successor entity to the corporation described in subparagraph (A). (3) Secretary The term Secretary means the Secretary of the Interior, acting through the Commissioner of Reclamation. (b) Study (1) In general The Secretary, in coordination with the non-Federal project entity, shall carry out a study to determine the feasibility of the Lewis and Clark Regional Water Supply Project in accordance with— (A) the reclamation laws; and (B) the reclamation feasibility standards. (2) Feasibility report After completion of the feasibility study for the Lewis and Clark Regional Water Supply Project under paragraph (1), the Secretary shall— (A) develop a feasibility report that includes recommendations of the Secretary regarding— (i) whether the Lewis and Clark Regional Water Supply Project is technically and financially feasible in accordance with the reclamation laws and reclamation feasibility standards; (ii) whether the Lewis and Clark Regional Water Supply Project should be authorized for construction; and (iii) the appropriate non-Federal share of construction costs, which shall be not less than 25 percent of the total construction costs; (B) submit the report under subparagraph (A) to the Committee on Energy and Natural Resources of the Senate and the Committee on Natural Resources of the House of Representatives; and (C) make the report under subparagraph (A) publicly available, along with associated feasibility study documents. (3) Consultation and cooperation In addition to the non-Federal project entity, the Secretary shall consult and cooperate with appropriate Federal, State, Tribal, regional, and local authorities during the conduct of the feasibility study and development of the feasibility report under this subsection. (c) Cost-sharing agreement for feasibility study costs The Secretary shall enter into a cost-sharing agreement (or an appropriate financial assistance agreement, as determined by the Secretary) with the non-Federal project entity to conduct a study under this section that complies with the reclamation feasibility standards. (d) Federal share of feasibility study costs; funding (1) Federal share The Federal share of the total costs of carrying out the feasibility study under this section— (A) shall not exceed 50 percent; and (B) shall be paid by the Secretary using appropriated funds identified under paragraph (2). (2) Identification of funds Not later than 90 days after the date of enactment of this Act, the Secretary shall identify sources of available funds to pay the Federal share under paragraph (1)(B). (e) Limitation on expenditures Not more than $10,000,000 of Federal funds may be expended to carry out the feasibility study under this section. (f) Termination of authority The authority provided by this section expires on the date that is 5 years after the date of enactment of this Act. September 17, 2026 Reported with an amendment