To facilitate the transfer of Spearfish Hydroelectric Plant Number 1 to the city of Spearfish, South Dakota, and for other purposes.

Exempts the Spearfish Hydroelectric Plant Number 1 located in Lawrence County, South Dakota, from the jurisdiction of the Federal Energy Regulatory Commission.

Instructs the Secretary of the Interior, acting through the United States Geological Survey, to study the hydrology of Spearfish Creek, South Dakota.

Expresses the sense of Congress that the city of Spearfish, South Dakota, in order to provide for the restoration and improvement of Spearfish Creek, should: (1) uphold the Memorandum Agreement of the city of Spearfish and the Spearfish Canyon Landowners Association, dated September 14, 2004; and (2) take action to release additional water flow of approximately five to 10 cubic feet per second between the Maurice Intake Dam and the Spearfish Diversion.