Fort Peck Rural County Water Supply System Act of 1995

Fort Peck Rural County Water Supply System Act of 1996 - Requires the Secretary of the Interior, upon request of the Fort Peck Rural County Water District, Inc., in Montana, to enter into a cooperative agreement with the District for the planning, design, and construction by the District of the Fort Peck Rural County Water Supply System. Directs that title to the project remain in the name of the District.

Requires the System to provide for safe and adequate rural water supplies under the District's jurisdiction in Valley County in northeastern Montana.

Requires the Secretary, under such agreement, to pay: (1) 75 percent of costs associated with the planning, design, and construction of the System (as described in the Final Engineering Report and Alternative Evaluation for the Fort Peck Rural County Water District, dated September 1994); and (2) such sums as are necessary to defray increases in the budget. Prohibits the amount of the Federal funds made available under the agreement from exceeding the authorized appropriations under this Act. Allows not more than five percent of such funds to be used by the Secretary for activities associated with: (1) compliance with the National Environmental Policy Act of 1969; and (2) oversight of the planning, design, and construction by the District of the System.

Authorizes appropriations. Terminates this authorization five complete fiscal years after this Act's enactment date unless the Congress has appropriated funds for the construction purposes of this Act. Directs that this authorization be extended an additional year if the Secretary has requested such appropriation. Permits the funds authorized to be appropriated to be increased or decreased by such amounts as are justified by reason of ordinary fluctuations in development costs incurred after October 1, 1994, as indicated by engineering cost indices applicable to the type of construction project authorized under this Act. Makes all costs which exceed the amounts authorized by this Act the District's responsibility.

Waives the prohibition against obligating funds for construction until 60 days from the date that the Secretary transmits a report to the Congress under the Reclamation Safety of Dams Act of 1978 for the Cachuma Project, Bradbury Dam, California.