FEDERAL ASSISTANCE FOR THE WATER SUPPLY SYSTEM.

SEC. 4103. FEDERAL ASSISTANCE FOR THE WATER SUPPLY SYSTEM. (a) In general.—The Secretary shall make grants to the water supply system for the planning and construction of the water supply project. (b) Service Area.—The water supply system shall provide for the member entities safe and adequate municipal, rural, and industrial water supplies, mitigation of wetland areas, and water conservation in— (1) Lake County, McCook County, Minnehaha County, Turner County, Lincoln County, Clay County, and Union County, in southeastern South Dakota; (2) Rock County and Nobles County, in southwestern Minnesota; and (3) Lyon County, Sioux County, Osceola County, O’Brien County, Dickinson County, and Clay County, in northwestern Iowa. (c) Amount of Grants.—Grants made available under subsection (a) to the water supply system shall not exceed the amount of funds authorized under section 4108. (d) Limitation on Availability of Construction Funds.—The Secretary shall not obligate funds for the construction of the water supply project until— (1) the requirements of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) are met; and (2) a final engineering report and a plan for a water conservation program are prepared and submitted to the Congress not less than 90 days before the commencement of construction of the water supply project.