Small Reclamation Water Resources Project Act of 1997

Small Reclamation Water Resources Project Act of 1997 - Amends the Small Reclamation Projects Act of 1956 (the Act) to: (1) include the development of irrigation projects as an authorized purpose under the Act; (2) include as an authorized water resources project (project) a development or rehabilitation project carried out by a non-Federal organization (organization) under the Federal reclamation laws in one or more of the 17 western reclamation States; and (3) define "water quality improvements" for purposes of such Act.

Establishes within the Bureau of Reclamation of the Department of the Interior a program under which the Secretary of the Interior may make grants to organizations to carry out projects. Requires any organization applying for such assistance to submit to the Secretary a project proposal which shall include a project plan and estimated costs comparable to those included in preauthorization reports required for a Federal reclamation project. Directs the Secretary to require each organization to contribute no less than 25 and no more than 40 percent of the estimated project costs. Provides a maximum allowable Federal share of project costs of $30 million per project. Requires project approval or disapproval within one year of submission.

Outlines project contract terms and conditions to be negotiated by the Secretary upon approval of any project proposal. Limits loan terms to no less than 15 and no more than 25 years.

Establishes within the Bureau the Small Reclamation Water Resources Management Partnership Program for a small grant and loan program. Limits grants to $5 million for a single project, to be matched on a 50-50 basis. Limits loans to $1.5 million per project. Provides funding. Requires loans to be repaid within five years of project completion. Includes as eligible activities for such grants and loans: (1) water conservation; (2) fish and wildlife enhancement; (3) public safety; (4) public outdoor recreation; and (5) archaelogical surveys. Authorizes the Secretary to add to such list as considered appropriate, requiring 60 days' prior notice and publication of the proposed additions. Outlines application requirements and terms and conditions of project work.

Establishes within the Bureau a demonstration program to guarantee loans for projects receiving loans or grants under the Act. Authorizes the Secretary to expend up to ten percent of amounts available under the Act for such program. Directs the Secretary to use competitive procedures in the selection of loan guarantee recipients, using specified criteria. Requires 75 percent of the loan guarantee funding to be expended for the general grant and loan program, and 25 percent to be expended for the small grant and loan program. Directs the Secretary to report to the Congress on the beneficial use and suggested improvements associated with the use of loan guarantees as a mechanism for project construction.

Requires: (1) each proposal for a loan, grant, or guarantee under the Act to be accompanied by payment of a specified proposal fee; and (2) each loan, grant, or guarantee recipient to be solely responsible for planning, constructing, operating, and maintaining such project. Gives priority to approved proposals which are related to presently authorized reclamation projects that will benefit from work carried out under the proposal. Authorizes the head of any Federal department or agency to make available to the organization any appropriate information and material useful to the planning, design, construction, or operation and maintenance of a project. Requires project planning and construction to be in compliance with the Fish and Wildlife Coordination Act.