[House Report 104-860]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-860
_______________________________________________________________________


 
                 UMATILLA BASIN PROJECT COMPLETION ACT

_______________________________________________________________________


 September 28, 1996.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Young of Alaska, from the Committee on Resources, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 2392]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Resources, to whom was referred the bill 
(H.R. 2392) to amend the Umatilla Basin Project Act to 
establish boundaries for irrigation districts within the 
Umatilla Basin, and for other purposes, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

    This Act may be cited to as the ``Umatilla Basin Project Completion 
Act''.

SEC. 2. AUTHORITY TO COMPLETE THIRD PHASE OF UMATILLA BASIN PROJECT.

    The Umatilla Basin Project Act (102 Stat. 2791) is amended by 
adding at the end the following new sections:

``SEC. 215. UMATILLA BASIN PROJECT PHASE III EXCHANGE.

    ``(a) Authorization of Project Construction.--(1) Effective upon 
the boundary adjustments under section 216(a), the Secretary is 
authorized to construct a third and final phase of the Umatilla Basin 
Project to provide additional flows in the Umatilla River for 
anadromous fish through a water exchange with Westland Irrigation 
District.
    ``(2) Prior to construction, the Secretary shall complete a 
feasibility study to identify alternatives to provide Westland 
Irrigation District and other Umatilla River Basin water users with 
exchange flows of approximately 220 cubic feet per second to restore 
the Umatilla River fishery, as determined through analysis in a 
feasibility study under paragraph (3).
    ``(3)(A) The feasibility study for the Phase III exchange 
facilities shall examine engineering, environmental, and economic 
factors associated with project alternatives, including but not limited 
to: technical engineering and hydrologic analyses pertinent to the 
identification and design of alternatives; biological analyses of 
instream flow levels to optimize anadromous fish restoration; and 
assessment of the best biological value per unit expenditure among the 
alternatives.
    ``(B) The feasibility study shall also include an analysis of 
inclusion of other irrigators in the exchange; consolidation of 
irrigation delivery facilities; potential for voluntary water 
transfers; optimization of water delivery scheduling for all four 
irrigation districts; appropriate backup systems; water conservation 
opportunities; and such other analyses as the Secretary may consider 
appropriate to improve the exchange project for fishery restoration 
purposes.
    ``(4) Prior to completion of Phase III facilities, the Secretary 
shall negotiate and execute an exchange agreement with the Westland 
Irrigation District to allow the use of Columbia River water in 
exchange for an equivalent amount of Umatilla River or McKay Reservoir 
water. Additional exchange agreements with other water users may be 
executed either before or after the completion of Phase III. The 
exchange agreement shall incorporate water delivery scheduling 
optimization, conservation, water transfer, and other technical 
operational measures recommended in the feasibility study.
    ``(b) Operation and Maintenance Costs.--All exchange system 
operation and maintenance costs and any increased operation and 
maintenance costs to the project caused by the Phase III exchange shall 
be the responsibility of the Federal Government and shall be 
nonreimbursable.
    ``(c) Power for Project Pumping.--The Administrator of the 
Bonneville Power Administration (hereinafter in this subsection 
referred to as the `Administrator'), consistent with provisions of the 
Columbia River Basin Fish and Wildlife Program established pursuant to 
the Pacific Northwest Electric Power Planning and Conservation Act (94 
Stat. 2697), shall provide for project power needed to effect the Phase 
III water exchange for purposes of mitigating anadromous fishery 
impacts. The cost of power shall be calculated as an offset to the 
Administrator's annual Treasury payments for operation and maintenance 
of the Federal Columbia River Power System.
    ``(d) Integration and Coordination of Facilities.--Project 
facilities authorized by sections 215 through 219 shall be integrated 
and coordinated into the existing Umatilla Basin Project.

``SEC. 216. UMATILLA BASIN IRRIGATION DISTRICTS BOUNDARY ADJUSTMENT.

    ``(a) In General.--(1) Effective upon completion of environmental 
reviews and approval by the Secretary, the boundaries of the Umatilla 
Basin Project irrigation districts are adjusted by operation of law as 
follows:
          ``(A) Hermiston Irrigation District's boundaries are adjusted 
        to include the 1,091 acres identified in its 1993 request to 
        the Bureau of Reclamation.
          ``(B) Stanfield Irrigation District's boundaries are adjusted 
        to include the 3,549 acres identified in its 1993 request to 
        the Bureau of Reclamation.
          ``(C) West Extension Irrigation District's boundaries are 
        adjusted to include the 2,436.8 acres identified in the June 
        1993 Bureau of Reclamation Land Classification Report as 
        irrigable.
          ``(D) Westland Irrigation District's boundaries are adjusted 
        to include the 9,912 acres identified in its 1993 request to 
        the Bureau of Reclamation.
    ``(2) The Secretary shall complete environmental reviews pursuant 
to this subsection no later than 6 months after the date of enactment 
of the Umatilla Basin Project Completion Act and at no cost to the 
Umatilla Basin Project irrigation districts.
    ``(b) Provision of McKay Reservoir Water for Environmental 
Enhancement.--(1) After the boundary adjustments under subsection (a), 
the Umatilla Basin Project irrigation districts shall provide water for 
environmental enhancement from McKay Reservoir to the Secretary in 
accordance with Option A or Option B, as specified by the Secretary.
    ``(2)(A)(i) Under Option A, the irrigation districts shall provide 
storage capacity from McKay Reservoir for environmental enhancement 
purposes each year equal the applicable amount stated in clause (ii), 
or the corresponding percentage of fill as determined by the Bureau of 
Reclamation, whichever is less.
    ``(ii) The applicable amounts referred to in clause (i) are the 
following:
          ``(I) In 1997, 6,500 acre feet.
          ``(II) In 1998, 5,500 acre feet.
          ``(III) In 1999, 4,500 acre feet.
          ``(IV) In 2000, 3,500 acre feet.
          ``(V) In 2001, 3,000 acre feet.
          ``(VI) In 2002, 3,000 acre feet.
    ``(B) Under Option B, the irrigation districts shall provide 
storage capacity from McKay Reservoir for environmental enhancement 
purposes, equal to 6,500 acre feet of water or the corresponding 
percentage of fill as determined by the Bureau of Reclamation, 
whichever is less, in each calendar year beginning in 1997 and ending 
in the year 2002: Provided, That the Secretary grant $300,000 by March 
1st of each calendar year 1997 through 2002 to the Westland Irrigation 
District of the Umatilla Project for water district improvements or 
other uses deemed appropriate by the District: Provided further, if the 
Secretary fails to grant the $300,000 by March 1st in any calendar year 
between 1997 and 2002 for purposes of this subsection the District is 
not required to provide any water for that calendar year.
    ``(C) Not later than 9 months after the date of enactment of the 
Umatilla Basin Project Completion Act, the Secretary shall specify 
Option A or Option B and notify the Umatilla Basin Project irrigation 
districts of that specification.
    ``(c) Requirements for Receiving Project Water.--Notwithstanding 
any other provision of this title, no parcel may receive Umatilla Basin 
Project water unless it has a valid State water right and is classified 
as irrigable in the Bureau of Reclamation's Land Classification Report.
    ``(d) Provision of Description of Boundaries.--A legal description 
of the irrigation district boundaries as adjusted under subsection (a), 
including land classification and project boundary maps, shall be 
provided as an attachment to all 4 Umatilla Basin Project irrigation 
districts' existing contracts.
    ``(e) Limitation on Altering Ability To Pay Determination.--No 
alteration in the ability to pay determination for the Umatilla Basin 
Project irrigation districts may be made as a result of the irrigation 
district boundary adjustments made by subsection (a).

``SEC. 217. WATER PROTECTION AND MANAGEMENT.

    ``The Secretary, in cooperation with the Confederated Tribes of the 
Umatilla Indian Reservation (hereinafter in this section referred to as 
the `Tribes'), shall initiate discussions with the State of Oregon 
(hereinafter in this section referred to as the `State') regarding the 
Tribes' water claims and other water needs in the Umatilla River Basin. 
To facilitate these discussions of water claims, the Secretary shall do 
the following:
          ``(1) The Secretary, taking into account the facilities and 
        analyses authorized by sections 215 through 219, shall work 
        with the State, the Tribes, irrigation districts, the 
        Bonneville Power Administration, and the affected public to 
        develop a water management plan for the Umatilla River Basin. 
        The plan shall address restoration of the Umatilla River Basin 
        anadromous fishery. The Secretary shall also develop an 
        integrated ground water/surface water model of the Upper 
        Umatilla River Basin.
          ``(2) Within 2 years after the date of enactment of the 
        Umatilla Basin Project Completion Act, the Secretary shall 
        report to the Committee on Energy and Natural Resources of the 
        Senate and the Committee on Resources of the House of 
        Representatives on the progress of--
                  ``(A) the facilities authorized by sections 215 
                through 219 of this title;
                  ``(B) the water management plan;
                  ``(C) the ground water/surface water model; and
                  ``(D) the status of discussions of tribal water 
                claims in the Umatilla River Basin.

``SEC. 218. JOINT WATER SUPPLY SYSTEM.

    ``Effective upon the boundary adjustments under section 216(a), the 
Secretary is authorized to contract with the Tribes for the 
construction of a portion of an off-stream storage reservoir of 
approximately 10,000 acre-feet capacity, with associated works. Such 
authorization shall not include water treatment facilities. Such 
reservoir is to be located on or adjacent to the Tribes' reservation in 
Oregon: Provided, That:
          ``(1) The Secretary can demonstrate through appropriate 
        feasibility level planning and environmental studies that the 
        facility can be built in a manner which conforms to all 
        applicable Federal, State, and Tribal laws and that the project 
        siting and construction minimizes any adverse effects on the 
        Umatilla River fishery.
          ``(2) Diversions for storage will not reduce Umatilla River 
        flows below the levels necessary to restore and support the 
        Umatilla River anadromous fishery. In diverting water for 
        storage and operation of the reservoir, the Tribes and the city 
        of Pendleton (hereinafter in this section referred to as the 
        `City') may agree to higher levels of protection of instream 
        flows. The reservoir shall be filled only during periods of 
        high flow, and in such a manner as to preserve the ecological 
        value of high flow events in the Umatilla River, as determined 
        by Federal, State, and tribal fishery experts.
          ``(3) The City agrees to provide up to $16,000,000 (in 
        addition to the $6,500,000 authorized by section 219(4)) for 
        the tribal share of feasibility level planning and 
        environmental studies and to construct the reservoir and 
        associated works provided for by this title. Any cost overruns 
        beyond the $22,500,000 estimated for the reservoir and 
        associated works authorized by this section and section 219(4) 
        shall be allocated 70 percent to the City and 30 percent to the 
        Tribes, unless they mutually agree otherwise.
          ``(4) The City, subject to applicable Federal, State, and 
        tribal laws, shall use all of its water rights to the Umatilla 
        River and its tributaries with priority dates after January 1, 
        1910, including those rights identified in Oregon Regulatory 
        Statute 538.450, for instream flow purposes to improve the 
        Umatilla River anadromous fishery, provided that adequate water 
        from the reservoir project is available for municipal use.
          ``(5) The City and the Tribes will share all operation and 
        maintenance costs on a pro rata basis, determined by the amount 
        of water in the reservoir reserved for each government's use, 
        unless the City and the Tribes mutually agree to an alternative 
        cost allocation.
          ``(6) Title to the reservoir facility will be held jointly in 
        the name of the City and the United States, in trust for the 
        Tribes. The Secretary may negotiate a contract transferring 
        operation and maintenance responsibility to either the Tribes 
        or the City, pursuant to all applicable State, Federal, and 
        tribal law.
          ``(7) The Secretary may direct that funds authorized under 
        this section be contracted to the Tribes, under the Indian 
        Self-Determination and Education Assistance Act (25 U.S.C. 450 
        et seq.).

``SEC. 219. AUTHORIZATION OF APPROPRIATIONS.

    ``Effective upon the boundary adjustments under section 216(a), 
there are authorized to be appropriated to the Secretary, plus or minus 
such amounts as may be justified by reason of ordinary fluctuations of 
applicable cost indexes, the following sums, without fiscal year 
limitation:
          ``(1) Not to exceed $64,000,000 for feasibility studies, 
        environmental studies, and construction of the Phase III 
        Exchange: Provided, That all costs of Phase III planning and 
        construction, including operation and maintenance costs 
        allocated to the mitigation of anadromous fish species and the 
        study authorized by section 215 of this Act, shall be 
        nonreimbursable: Provided further, That not more than 25 
        percent of the amount appropriated under this paragraph may be 
        expended for administrative overhead costs.
          ``(2) Not to exceed $500,000 for tribal water claims 
        discussions, a water management plan, and an integrated ground 
        water/surface water model, as provided for in section 217(a).
          ``(3) Not to exceed $400,000 annually for enforcement and 
        protection of Phases I, II, and III exchange water for instream 
        uses.
          ``(4) Not to exceed $6,500,000 for feasibility studies, 
        environmental studies, and construction of the Tribes' portion 
        of an off-stream storage reservoir and associated works, as 
        authorized in section 218 of this title.''.

SEC. 3. WATER RIGHTS.

    In relation to the Umatilla Basin Project, nothing in this Act 
shall--
          (1) impair the validity of or preempt any provision of State 
        law with respect to water or water rights, or of any interstate 
        compact governing water or water rights;
          (2) create a right to the diversion or use of water, other 
        than--
                  (A) as established pursuant to the substantive and 
                procedural requirements of State law; and
                  (B) as recognized under State law;
          (3) impair any valid water right;
          (4) establish or create any water rights for any party; or
          (5) be construed to create directly or indirectly an express 
        or implied Federal reserved water right for any purpose.

SEC. 4. SENSE OF THE CONGRESS.

    It is the sense and expectation of the Congress that construction 
and operation of Phase III, the perpetual operation of the integrated 
Umatilla Basin Project, and the construction and operation of the Joint 
Water Supply System, as authorized in section 218 of the Umatilla Basin 
Project Act, will fulfill obligations of the Federal Government to 
provide the Confederated Tribes of the Umatilla Indian Reservation with 
water for fishery purposes in the Umatilla River below the mouth of 
McKay Creek, as recognized by their 1855 treaty with the United States.

                          Purpose of the Bill

    The purposes of H.R. 2392 are to establish boundaries for 
irrigation districts within the Umatilla Basin, to authorize 
Phase III of the Umatilla Basin Project, and to provide water 
for environmental enhancement in the Umatilla River.

                  Background and Need for Legislation

    The Umatilla Project is comprised of four divisions, and 
provides irrigation benefits to more that 34,000 acres of land. 
Principal crops are alfalfa hay and pasture; other crops grown 
are grain, mint, and vegetables. Both the McKay and Cold 
Springs Reservoir areas are national wildlife refuges used by 
waterfowl. Construction of the Project was approved in 1923. 
The Stanfield and Westland Irrigation Districts operate their 
own facilities. The East Division has been operated by the 
Hermiston Irrigation District since June 23, 1926, and the West 
Division by the West Extension Irrigation District since April 
27, 1926.
    The Umatilla Project Act of 1988 provided for mitigation of 
anadromous fishery resources and continued water service to 
lands of the four Project irrigation districts. The Act also 
authorized the Secretary of the Interior to modify the 
boundaries of the irrigation district to include lands that 
received irrigation water service from those districts prior to 
October 1, 1988. However, those boundary adjustments have yet 
to occur.
    The construction authorized under the 1988 Act was intended 
to fulfill partially the fishing rights reserved to the 
Confederated Tribes of the Umatilla Indian Reservation in the 
1855 Treaty with the United States. The program basically 
enables the Project to divert Columbia River water for use by 
the irrigators, thereby allowing more water to remain in the 
Umatilla River for fisheries purposes. The program's first 
phase, the West Extension Irrigation District water exchange 
facilities, was completed in November 1992 and is now in 
service. The remainder of Phase II of the program is scheduled 
for completion in fiscal year 1998.
    ``Water spreading'' has been a major issue associated with 
this Project. The Bureau of Reclamation defines ``water 
spreading'' as the unauthorized use of water from Reclamation 
facilities. Since the late 1980s, the Bureau of Reclamation has 
claimed there were ``significant unauthorized project water 
deliveries outside district boundaries'' in the Umatilla 
Project. The practice has been criticized by the Confederated 
Tribes of the Umatilla Indian Reservation and by environmental 
organizations. Project water users, however, note that changes 
in the districts' application of water over the years were made 
with the Bureau's knowledge, and Reclamation officials have 
conceded that this was the case in testimony before the 
Subcommittee on Water and Power Resources. In many cases, water 
was moved from less productive to more productive lands.
    In October 1993, the four irrigation districts submitted 
their boundary change requests for inclusion of 17,500 acres to 
the Bureau of Reclamation. The Bureau of Reclamation and the 
Confederated Tribes held the first National Environmental 
Policy Act scoping meeting in November 1993.
    Stanfield, Hermiston, and Westland Irrigation Districts 
reached agreement with Reclamation on temporary 1995 water 
delivery contracts, which were renewed for 1996, in which they 
fund their portion of a model study to assess impacts, supply 
certain instream flows, and pay in dollars or water for the 
right to use Project water in return for receiving permission 
to deliver water to ``unauthorized lands.'' Westland's 
temporary contract was also conditioned upon resolving 
repayment of 1993 and 1994 deliveries to the District's out of 
boundary lands.
    This bill, while not agreed to by all of the interested 
parties in the Basin, has been significantly expanded in an 
effort to address several of the ongoing concerns raised by 
these parties. H.R. 2392 authorizes the feasibility study for 
and construction of Phase III of the Umatilla Basin Project, 
effective upon the boundary adjustments for the irrigation 
districts. Phase III will enable additional exchanges of 
Columbia River water that will result in approximately an 
additional 180-200 cubic feet per second in water flows for 
fishery restoration efforts in the Umatilla River. The bill 
also states that the boundaries of the irrigation districts are 
to be adjusted, effective upon completion of environmental 
reviews and approval by the Secretary of the Interior. Even 
after the boundary adjustments, the bill stipulates that the 
irrigation districts will provide water for environmental 
enhancement for a specified period of time that coincides with 
the planned schedule for construction of Phase III facilities. 
The bill further directs the Secretary, in cooperation with the 
Tribes, to initiate discussions with the State of Oregon 
regarding the Tribes' water claims and other water needs in the 
Umatilla River Basin. The bill as reported also authorized the 
construction of an off-stream storage reservoir designed to 
meet the needs of the Tribes' on-reservation domestic water 
supply needs and the needs of the City of Pendleton, Oregon.

                            Committee Action

    H.R. 2392 was introduced on September 21, 1995, by 
Congressman Wes Cooley (R-OR). The bill was referred to the 
Committee on Resources, and within the Committee to the 
Subcommittee on Water and Power Resources. On April 18, 1996, 
the Subcommittee held a hearing on H.R. 2392, where the witness 
for the four irrigation districts testified in favor of the 
bill, while the Administration and the Confederated Tribes of 
the Umatilla Indian Reservation testified in opposition to the 
bill. On July 11, 1996, the Subcommittee met to mark up H.R. 
2392. Congressman Cooley offered an amendment in the nature of 
a substitute that expanded the provisions of the bill to 
include: an increase in the authorization ceiling for the 
currently authorized Phase I and Phase II portions of the 
Umatilla enhancement project to $58 million, from the current 
ceiling of $42.2 million; authorization for construction of 
Phase III of the Umatilla enhancement project following 
completion of a feasibility study; authorization of $62 million 
for Phase III feasibility studies and construction; 
authorization of $500,000 for environmental compliance 
activities and a feasibility study of at least two alternative 
means of providing water supplies for on-reservation use on the 
Umatilla Indian Reservation and for the City of Pendleton, 
Oregon. The amendment in the nature of a substitute was adopted 
by voice vote, and the bill as amended was ordered favorably 
reported to the Full Committee by voice vote.
    On September 18, 1996, the Full Resources Committee met to 
consider H.R. 2392. An amendment in the nature of a substitute 
was offered by Congressman Cooley that would: define in more 
detail the conditions of the Phase III authorization and 
feasibility studies, and the terms of the water exchange 
agreements; provide for Project pumping for Phase III; adjust 
the irrigation district boundaries upon completion of 
environmental reviews and approval by the Secretary of the 
Interior, and require the environmental reviews be completed 
within six months of enactment; provide water for environmental 
enhancement for a specified period following the boundary 
adjustments; direct the Secretary to initiate discussions with 
the State of Oregon regarding the Tribes' water claims and 
other water needs in the Umatilla River Basin; direct the 
Secretary to develop a water management plan and a water model 
of the Basin; authorize construction of an off-stream storage 
reservoir of approximately 10,000 acre-feet capacity; and 
authorize appropriations. Congressman Peter DeFazio (D-OR) 
offered a substitute amendment to the Cooley amendment in the 
nature of a substitute. The DeFazio amendment in the nature of 
a substitute contained many of the same provisions as the 
Cooley substitute, but was more prescriptive in the exchange 
agreement language; put additional conditions on the Project 
for pumping power; enacted boundary adjustments for Hermiston, 
Stanfield and West Extension irrigation districts upon 
enactment, but made boundary adjustments for Westland 
Irrigation District contingent upon completion of Phase III of 
the Project; had different terms and conditions for the 
construction of the joint water supply system authorized in the 
Act; and added additional language to section 4 providing that 
fulfillment of obligations to the Tribes is contingent upon an 
agreement between the United States, the Tribes, and the States 
on certain issues. The DeFazio amendment failed by voice vote. 
The Cooley amendment in the nature of a substitute was then 
adopted by voice vote. The bill as amended was then ordered 
favorably reported to the House of Representatives by voice 
vote.

                      Section-by-Section Analysis

Section 1. Short Title

    This Act may be cited as the ``Umatilla Basin Project 
Completion Act''.

Section 2. Authority to Complete Third Phase of Umatilla Basin Project

    Section 2 amends the Umatilla Basin Project Act (Public Law 
100-557; 102 Stat. 2793) by adding at the end the following new 
sections:

Section 215. Umatilla Basin Project Phase III Exchange

    Section 215 authorizes the Secretary of the Interior, 
effective upon the boundary adjustments specified in Section 
216, to construct a third and final phase of the Umatilla Basin 
Project to provide additional flows in the Umatilla River for 
anadromous fish through a water exchange with the Westland 
Irrigation District.
    Section 215 directs the Secretary of the Interior to 
complete a feasibility study, prior to construction of the 
Phase III exchange facilities, identifying alternatives to 
provide Westland Irrigation District and Umatilla River Basin 
water users with exchange flows of approximately 220 cubic feet 
per second to restore the Umatilla River fishery. The 
feasibility study is to examine engineering, environmental, and 
economic factors associated with the Project alternatives, and 
is also to include an analysis of the inclusion of other 
irrigators in the exchange, consolidation of irrigation 
delivery facilities, potential for voluntary water transfers, 
optimization of water delivery scheduling for all four 
irrigation districts, appropriate backup systems, water 
conservation opportunities, and other analyses as the Secretary 
may consider appropriate to improve the exchange project for 
fishery restoration purposes.
    Section 215 states that the Secretary of the Interior 
shall, prior to completion of Phase III facilities, complete an 
exchange agreement with the Westland Irrigation District to 
allow the use of Columbia River water in exchange for an 
equivalent amount of Umatilla River or McKay Reservoir water. 
This section also states that additional exchange agreements 
with other water users may be executed either before or after 
completion of Phase III. The exchange agreement is to 
incorporate the technical operational measures recommended in 
the feasibility study required by this section.
    Section 215 states that all exchange system operation and 
maintenance costs and any increased operation and maintenance 
costs to the Project caused by the Phase III exchange shall be 
the responsibility of the federal government and shall be 
nonreimbursable.
    The section further states that the Bonneville Power 
Administration shall provide for Project power needed to effect 
the Phase III water exchange for purposes of mitigating 
anadromous fishery impacts. The cost of power is to be 
calculated as an offset to the Bonneville Power 
Administration's annual Treasury payments for operation and 
maintenance of the Federal Columbia River Power System.
    Section 215 requires that Project facilities authorized by 
new sections 215 through 219 of H.R. 2392 be integrated and 
coordinated into the existing Umatilla Basin Project.

Section 216. Umatilla Basin Irrigation Districts Boundary Adjustment

    Section 216 requires that, effective upon completion of 
environmental reviews and approval by the Secretary of the 
Interior, the boundaries of the Umatilla Basin Project 
irrigation districts are adjusted by operation of laws as 
follows: the Hermiston, Stanfield, and Westland Irrigation 
Districts' boundaries are adjusted as identified in their 
respective 1993 requests to the Bureau of Reclamation, and the 
West Extension Irrigation District's boundaries are adjusted to 
include land identified as irrigable in the June 1993 Bureau of 
Reclamation Land Classification Report. The Secretary is to 
complete the environmental reviews no later than six months 
after the date of enactment of H.R. 2392 and at no cost to the 
Umatilla Basin Project irrigation districts.
    Section 216 defines two options (A and B) under which the 
Umatilla Basin irrigation districts shall provide water for 
environmental enhancement to the Secretary of the Interior, and 
the Secretary shall specify, within nine months of enactment of 
H.R. 2392, which option is to be utilized. Under Option A, the 
irrigation districts shall provide storage capacity, or the 
corresponding percentage of fill, whichever is less, from McKay 
Reservoir beginning with 6,500 acre-feet in 1997 and declining 
each year in specified volumes to 3,000 acre-feet in 2002. 
Under Option B, the irrigation districts shall provide 6,500 
acre feet of storage capacity from McKay Reservoir, or the 
corresponding percentage of fill, whichever is less, beginning 
in 1997 and ending in 2002, provided that the Secretary grants 
$300,000 each calendar year through 2002 to the Westland 
Irrigation District for water district improvements or other 
uses deemed appropriate by the District. Under Option B, the 
District is not required to provide any water for environmental 
enhancement in any calendar year between 1997 and 2002 that the 
Secretary fails to grant the $300,000 by March 1st.
    Section 216 also specifies that: no parcel may receive 
Project water unless it has a valid State water right and is 
classified as irrigable in the Bureau of Reclamation's Land 
Classification Report; a legal description of the irrigation 
district boundaries as adjusted by H.R. 2392 and certain maps 
be provided as an attachment to the existing contracts of all 
four irrigation districts; and that no alteration be made in 
the ability to pay determination for the Umatilla Basin Project 
irrigation districts as a result of the boundary adjustments 
made by H.R. 2392.

Section 217. Water Protection and Management

    Section 217 directs the Secretary of the Interior, in 
cooperation with the Confederated Tribes of the Umatilla Indian 
Reservation, to initiate discussions with the State of Oregon 
regarding the Tribes' water claims and other needs in the 
Umatilla River Basin. This section also directs the Secretary 
to undertake specific actions to facilitate these discussions, 
including the development of a water management plan and an 
integrated ground water/surface water model for the Umatilla 
River Basin. The Secretary is directed to report to Congress 
within two years of enactment of H.R. 2392 on the progress of: 
the facilities authorized by H.R. 2392; the water management 
plan; the ground water/surface water model; and the status of 
the discussions of tribal water claims.

Section 218. Joint Water Supply System

    Section 218 authorizes the Secretary of the Interior, 
subject to specified conditions and cost-sharing, to contract 
with the Tribes for the construction of a portion of an off-
stream storage reservoir and associated works, not to include 
water treatment facilities, to be located on or adjacent to the 
Tribes' reservation in Oregon.

Section 219. Authorization of Appropriations

    Section 219 authorizes appropriations, subject to specified 
conditions, not to exceed: $64,000,000 for feasibility studies, 
environmental studies, and construction of the Phase III 
exchange facilities; $500,000 for tribal water claims 
discussions, a water management plan, and an integrated ground 
water/surface water model; $400,000 annually for enforcement 
and protection of Phases I, II, and III exchange water for 
instream uses; and $6,500,000 for feasibility studies, 
environmental studies, and construction of the Tribes' portion 
of an off-stream storage reservoir and associated works. The 
authorizations of appropriations may be adjusted to reflect 
ordinary fluctuations of applicable cost indexes and are 
without fiscal year limitation.

Section 3. Water Rights

    Section 3 states that, in relation to the Umatilla Basin 
Project, nothing in this Act shall: impair the validity of or 
preempt any provision of State law with respect to water or 
water rights, or of any interstate compact governing water or 
water rights; create a right to the diversion or use of water 
other than as established pursuant to the requirements of State 
law and as recognized under State law; impair any valid water 
right; or be construed to create an express or implied Federal 
reserved water right for any purpose.

Section 4. Sense of the Congress

    Section 4 states it is the sense and expectation of 
Congress that construction and operation of Phase III, the 
perpetual operation of the integrated Umatilla Basin Project, 
and the construction and operation of the Joint Water Supply 
System authorized by this Act will fulfill obligations of the 
federal government to provide the Confederated Tribes of the 
Umatilla Indian Reservation with water for fishery purposes in 
the Umatilla River below the mouth of McKay Creek, as 
recognized by their 1855 treaty with the United States.

            Committee Oversight Findings and Recommendations

    With respect to the requirements of clause 2(l)(3) of rule 
XI of the Rules of the House of Representatives, and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee on Resources' oversight findings and 
recommendations are reflected in the body of this report.

                     Inflationary Impact Statement

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee estimates that the 
enactment of H.R. 2392 will have no significant inflationary 
impact on prices and costs in the operation of the national 
economy.

                        Cost of the Legislation

    Clause 7(a) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs which would be incurred in carrying out 
H.R. 2392. However, clause 7(d) of that Rule provides that this 
requirement does not apply when the Committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974.

                     Compliance With House Rule XI

    1. With respect to the requirement of clause 2(l)(3)(B) of 
rule XI of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, H.R. 
2392 does not contain any new budget authority, credit 
authority, or an increase or decrease in tax expenditures.
    2. With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of H.R. 2392.
    3. With respect to the requirement of clause 2(l)(3)(C) of 
rule XI of the Rules of the House of Representatives and 
section 403 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
2392 from the Director of the Congressional Budget Office.

               Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 27, 1996.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2392, the Umatilla 
Basin Project Completion Act.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                         June E. O'Neill, Director.

               congressional budget office cost estimate

    1. Bill number: H.R. 2392.
    2. Bill title: Umatilla Basin Project Completion Act.
    3. Bill status: As ordered reported by the House Committee 
on resources on September 18, 1996.
    4. Bill purpose: H.R. 2392 would adjust the boundaries of 
four irrigation districts in the Umatilla Basin and require the 
districts to provide water annually for environmental purposes. 
The bill also would authorize the Secretary of the Interior to 
construct and to operate and maintain the third and final phase 
of the Umatilla Basin Project. The project would allow for 
water exchanges between the Columbia River and the Umatilla 
River for the purpose of restoring the Umatilla River Basin 
fishery. Other provisions of the bill would: Require the 
Administrator of the Bonneville Power Administration to provide 
the power needed to affect water exchanges between the Columbia 
and Umatilla Rivers; and authorize funds for developing a water 
management plan for the Umatilla River Basin, for monitoring 
water use in the basin, and for contracting with the 
Confederated Tribes of the Umatilla Indian Reservation to 
construct a water storage reservoir.
    5. Estimated cost to the Federal Government: Assuming 
appropriation of the necessary amounts, CBO estimates that 
enacting H.R. 2392 would result in new discretionary spending 
of $56 million over the 1997-2002 period, about $10 million in 
each of fiscal years 2003 and 2004 and roughly $1 million a 
year after 2004. The bill also would result in direct spending 
of about $1 million a year beginning in 2005.

                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                              1997     1998     1999     2000     2001     2002 
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION                                  
                                                                                                                
Estimated Authorization Level.............................        7    (\1\)       68    (\1\)    (\1\)    (\1\)
Estimated Outlays.........................................        3        3       12       10       14       14
----------------------------------------------------------------------------------------------------------------
\1\ Less than $300,000.                                                                                         

    The costs of this bill fall within budget function 300.
    6. Basis of estimate:
    Spending Subject to Appropriation--Assuming appropriation 
of the authorized amounts, CBO estimates that it would cost $75 
million over the 1997-2004 period to construct the third and 
final phase of the Umatilla Basin Project, construct a water 
storage facility, and to develop a water management plan. 
Additional discretionary spending of about $400,000 a year 
would be required beginning in 1998 to monitor and enforce 
water uses in the basin. As shown in the above table, we 
estimate that $56 million of that spending would occur over the 
1997-2002 period. Monitoring and enforcement costs would 
increase to about $1 million a year beginning in 2005, 
including the cost of operating and maintaining the third phase 
of the Umatilla Basin Project.
    Based on information from the Bureau of Reclamation, CBO 
assumes that construction of the third phase of the Umatilla 
Project would begin in 1999 and completed in 2004. Amounts 
required to operate and maintain the Umatilla Basin Project are 
estimated based on information provided by the bureau.
    CBO estimates that requiring irrigation districts in the 
basin to provide water for environmental purposes would have no 
federal cost. Under the bill, the Bureau of Reclamation could 
elect one of two options for allocating water. Under the first 
option, the districts would provide declining annual amounts of 
storage capacity in the McKay Reservoir for environmental 
purposes.Under the second option, the districts would provide a 
constant amount of storage capacity in the McKay Reservoir in 
exchange for a $300,000 annual payment from the bureau. Based 
on information from the bureau, CBO expects that the first 
option would be adopted.
    Direct Spending--Enacting H.R. 2392 also would result in 
new direct spending of about $1 million a year beginning in 
2005 by reducing payments to the Treasury from the sale of 
power. Under the bill, the BPA Administrator would be directed 
to provide power needed to affect water exchanges between the 
Columbia and Umatilla Rivers after the Umatilla Project is 
completed. Annual payments from BPA to the Treasury from the 
sale of power would be reduced to reflect the cost of providing 
power for this purpose.
    7. Pay-as-you-go considerations: Section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 sets 
up pay-as-you-go procedures for legislation affecting direct 
spending or receipts through 1998. CBO estimates that enacting 
would affect direct spending by reducing the amount of 
offsetting receipts paid into the Treasury for the sale of 
power. However, such effects would not occur until 2005.
    8. Estimated impact on State, local, and tribal 
Governments: H.R. 2392 contains no intergovernmental mandate as 
defined in the Unfunded Mandates Reform Act of 1995 (Public Law 
104-4), and would impose no significant costs on state, local, 
or tribal governments. The bill would authorize the Secretary 
of Interior to construct facilities to provide the Westland 
Irrigation District (and possibly others) with water from the 
Columbia River. In exchange, the district would give up water 
it currently receives from the Umatilla River or the McKay 
Reservoir. The water the district would have received from the 
Umatilla River would be left in the river to restore its 
fishery resources, which are used by the Confederated Tribes of 
the Umatilla Indian Reservation.
    The bill would also authorize the Secretary of the Interior 
to provide up to $6.5 million to the Tribes for planning and 
constructing an off-stream storage reservoir, as long as the 
city of Pendleton, Oregon provides up to $16 million in 
additional funding. Pendleton would exchange current rights to 
water from the Umatilla River and its tributaries for water 
from the reservoir, which would be filled during periods of 
high flow on the river. Pendleton and the Tribes would share 
any cost overruns during construction of the reservoir on a 70 
percent/30 percent basis, unless they agreed to another ratio. 
They would divide all operation and maintenance costs for the 
reservoir on a pro rata basis.
    Finally, the bill would expand the boundaries of four 
irrigation districts in the Umatilla Basin. After the 
boundaries are adjusted, the bill would require the affected 
districts to provide water to the Secretary of Interior for 
environmental enhancement purposes. CBO believes that this 
requirement would be an additional condition of the districts' 
contracts with the federal government for the delivery of 
water. This requirement therefore does not meet the definition 
of an intergovernmental mandate as defined in Public Law 104-4.
    9. Estimated impact on the private sector: This bill would 
impose no new private-sector mandates as defined in Public Law 
104-4.
    10 Previous CBO estimate: On September 27, 1996, CBO 
provided an estimate for S. 1986, as reported by the Senate 
Committee on Energy and Natural Resources on September 16, 
1996. The two bills are similar, and the estimates are 
identical.
    11. Estimate prepared by: Federal Cost Estimate: Gary 
Brown, Impact on State, Local, and Tribal Governments: Pepper 
Santalucia, Impact on the Private Sector: Patrice Gordon.
    12. Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.

                    Compliance With Public Law 104-4

    H.R. 2392 contains no unfunded mandates.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3 of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

                       UMATILLA BASIN PROJECT ACT

                TITLE II--UMATILLA BASIN PROJECT, OREGON

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Umatilla Basin Project 
Act''.
          * * * * * * *

SEC. 215. UMATILLA BASIN PROJECT PHASE III EXCHANGE.

    (a) Authorization of Project Construction.--(1) Effective 
upon the boundary adjustments under section 216(a), the 
Secretary is authorized to construct a third and final phase of 
the Umatilla Basin Project to provide additional flows in the 
Umatilla River for anadromous fish through a water exchange 
with Westland Irrigation District.
    (2) Prior to construction, the Secretary shall complete a 
feasibility study to identify alternatives to provide Westland 
Irrigation District and other Umatilla River Basin water users 
with exchange flows of approximately 220 cubic feet per second 
to restore the Umatilla River fishery, as determined through 
analysis in a feasibility study under paragraph (3).
    (3)(A) The feasibility study for the Phase III exchange 
facilities shall examine engineering, environmental, and 
economic factors associated with project alternatives, 
including but not limited to: technical engineering and 
hydrologic analyses pertinent to the identification and design 
of alternatives; biological analyses of instream flow levels to 
optimize anadromous fish restoration; and assessment of the 
best biological value per unit expenditure among the 
alternatives.
    (B) The feasibility study shall also include an analysis of 
inclusion of other irrigators in the exchange; consolidation of 
irrigation delivery facilities; potential for voluntary water 
transfers; optimization of water delivery scheduling for all 
four irrigation districts; appropriate backup systems; water 
conservation opportunities; and such other analyses as the 
Secretary may consider appropriate to improve the exchange 
project for fishery restoration purposes.
    (4) Prior to completion of Phase III facilities, the 
Secretary shall negotiate and execute an exchange agreement 
with the Westland Irrigation District to allow the use of 
Columbia River water in exchange for an equivalent amount of 
Umatilla River or McKay Reservoir water. Additional exchange 
agreements with other water users may be executed either before 
or after the completion of Phase III. The exchange agreement 
shall incorporate water delivery scheduling optimization, 
conservation, water transfer, and other technical operational 
measures recommended in the feasibility study.
    (b) Operation and Maintenance Costs.--All exchange system 
operation and maintenance costs and any increased operation and 
maintenance costs to the project caused by the Phase III 
exchange shall be the responsibility of the Federal Government 
and shall be nonreimbursable.
    (c) Power for Project Pumping.--The Administrator of the 
Bonneville Power Administration (hereinafter in this subsection 
referred to as the ``Administrator''), consistent with 
provisions of the Columbia River Basin Fish and Wildlife 
Program established pursuant to the Pacific Northwest Electric 
Power Planning and Conservation Act (94 Stat. 2697), shall 
provide for project power needed to effect the Phase III water 
exchange for purposes of mitigating anadromous fishery impacts. 
The cost of power shall be calculated as an offset to the 
Administrator's annual Treasury payments for operation and 
maintenance of the Federal Columbia River Power System.
    (d) Integration and Coordination of Facilities.--Project 
facilities authorized by sections 215 through 219 shall be 
integrated and coordinated into the existing Umatilla Basin 
Project.

SEC. 216. UMATILLA BASIN IRRIGATION DISTRICTS BOUNDARY ADJUSTMENT.

    (a) In General.--(1) Effective upon completion of 
environmental reviews and approval by the Secretary, the 
boundaries of the Umatilla Basin Project irrigation districts 
are adjusted by operation of law as follows:
          (A) Hermiston Irrigation District's boundaries are 
        adjusted to include the 1,091 acres identified in its 
        1993 request to the Bureau of Reclamation.
          (B) Stanfield Irrigation District's boundaries are 
        adjusted to include the 3,549 acres identified in its 
        1993 request to the Bureau of Reclamation.
          (C) West Extension Irrigation District's boundaries 
        are adjusted to include the 2,436.8 acres identified in 
        the June 1993 Bureau of Reclamation Land Classification 
        Report as irrigable.
          (D) Westland Irrigation District's boundaries are 
        adjusted to include the 9,912 acres identified in its 
        1993 request to the Bureau of Reclamation.
    (2) The Secretary shall complete environmental reviews 
pursuant to this subsection no later than 6 months after the 
date of enactment of the Umatilla Basin Project Completion Act 
and at no cost to the Umatilla Basin Project irrigation 
districts.
    (b) Provision of McKay Reservoir Water for Environmental 
Enhancement.--(1) After the boundary adjustments under 
subsection (a), the Umatilla Basin Project irrigation districts 
shall provide water for environmental enhancement from McKay 
Reservoir to the Secretary in accordance with Option A or 
Option B, as specified by the Secretary.
    (2)(A)(i) Under Option A, the irrigation districts shall 
provide storage capacity from McKay Reservoir for environmental 
enhancement purposes each year equal the applicable amount 
stated in clause (ii), or the corresponding percentage of fill 
as determined by the Bureau of Reclamation, whichever is less.
    (ii) The applicable amounts referred to in clause (i) are 
the following:
          (I) In 1997, 6,500 acre feet.
          (II) In 1998, 5,500 acre feet.
          (III) In 1999, 4,500 acre feet.
          (IV) In 2000, 3,500 acre feet.
          (V) In 2001, 3,000 acre feet.
          (VI) In 2002, 3,000 acre feet.
    (B) Under Option B, the irrigation districts shall provide 
storage capacity from McKay Reservoir for environmental 
enhancement purposes, equal to 6,500 acre feet of water or the 
corresponding percentage of fill as determined by the Bureau of 
Reclamation, whichever is less, in each calendar year beginning 
in 1997 and ending in the year 2002: Provided, That the 
Secretary grant $300,000 by March 1st of each calendar year 
1997 through 2002 to the Westland Irrigation District of the 
Umatilla Project for water district improvements or other uses 
deemed appropriate by the District: Provided further, if the 
Secretary fails to grant the $300,000 by March 1st in any 
calendar year between 1997 and 2002 for purposes of this 
subsection the District is not required to provide any water 
for that calendar year.
    (C) Not later than 9 months after the date of enactment of 
the Umatilla Basin Project Completion Act, the Secretary shall 
specify Option A or Option B and notify the Umatilla Basin 
Project irrigation districts of that specification.
    (c) Requirements for Receiving Project Water.--
Notwithstanding any other provision of this title, no parcel 
may receive Umatilla Basin Project water unless it has a valid 
State water right and is classified as irrigable in the Bureau 
of Reclamation's Land Classification Report.
    (d) Provision of Description of Boundaries.--A legal 
description of the irrigation district boundaries as adjusted 
under subsection (a), including land classification and project 
boundary maps, shall be provided as an attachment to all 4 
Umatilla Basin Project irrigation districts' existing 
contracts.
    (e) Limitation on Altering Ability To Pay Determination.--
No alteration in the ability to pay determination for the 
Umatilla Basin Project irrigation districts may be made as a 
result of the irrigation district boundary adjustments made by 
subsection (a).

SEC. 217. WATER PROTECTION AND MANAGEMENT.

    The Secretary, in cooperation with the Confederated Tribes 
of the Umatilla Indian Reservation (hereinafter in this section 
referred to as the ``Tribes''), shall initiate discussions with 
the State of Oregon (hereinafter in this section referred to as 
the ``State'') regarding the Tribes' water claims and other 
water needs in the Umatilla River Basin. To facilitate these 
discussions of water claims, the Secretary shall do the 
following:
          (1) The Secretary, taking into account the facilities 
        and analyses authorized by sections 215 through 219, 
        shall work with the State, the Tribes, irrigation 
        districts, the Bonneville Power Administration, and the 
        affected public to develop a water management plan for 
        the Umatilla River Basin. The plan shall address 
        restoration of the Umatilla River Basin anadromous 
        fishery. The Secretary shall also develop an integrated 
        ground water/surface water model of the Upper Umatilla 
        River Basin.
          (2) Within 2 years after the date of enactment of the 
        Umatilla Basin Project Completion Act, the Secretary 
        shall report to the Committee on Energy and Natural 
        Resources of the Senate and the Committee on Resources 
        of the House of Representatives on the progress of--
                  (A) the facilities authorized by sections 215 
                through 219 of this title;
                  (B) the water management plan;
                  (C) the ground water/surface water model; and
                  (D) the status of discussions of tribal water 
                claims in the Umatilla River Basin.

SEC. 218. JOINT WATER SUPPLY SYSTEM.

    Effective upon the boundary adjustments under section 
216(a), the Secretary is authorized to contract with the Tribes 
for the construction of a portion of an off-stream storage 
reservoir of approximately 10,000 acre-feet capacity, with 
associated works. Such authorization shall not include water 
treatment facilities. Such reservoir is to be located on or 
adjacent to the Tribes' reservation in Oregon: Provided, That:
          (1) The Secretary can demonstrate through appropriate 
        feasibility level planning and environmental studies 
        that the facility can be built in a manner which 
        conforms to all applicable Federal, State, and Tribal 
        laws and that the project siting and construction 
        minimizes any adverse effects on the Umatilla River 
        fishery.
          (2) Diversions for storage will not reduce Umatilla 
        River flows below the levels necessary to restore and 
        support the Umatilla River anadromous fishery. In 
        diverting water for storage and operation of the 
        reservoir, the Tribes and the city of Pendleton 
        (hereinafter in this section referred to as the 
        ``City'') may agree to higher levels of protection of 
        instream flows. The reservoir shall be filled only 
        during periods of high flow, and in such a manner as to 
        preserve the ecological value of high flow events in 
        the Umatilla River, as determined by Federal, State, 
        and tribal fishery experts.
          (3) The City agrees to provide up to $16,000,000 (in 
        addition to the $6,500,000 authorized by section 
        219(4)) for the tribal share of feasibility level 
        planning and environmental studies and to construct the 
        reservoir and associated works provided for by this 
        title. Any cost overruns beyond the $22,500,000 
        estimated for the reservoir and associated works 
        authorized by this section and section 219(4) shall be 
        allocated 70 percent to the City and 30 percent to the 
        Tribes, unless they mutually agree otherwise.
          (4) The City, subject to applicable Federal, State, 
        and tribal laws, shall use all of its water rights to 
        the Umatilla River and its tributaries with priority 
        dates after January 1, 1910, including those rights 
        identified in Oregon Regulatory Statute 538.450, for 
        instream flow purposes to improve the Umatilla River 
        anadromous fishery, provided that adequate water from 
        the reservoir project is available for municipal use.
          (5) The City and the Tribes will share all operation 
        and maintenance costs on a pro rata basis, determined 
        by the amount of water in the reservoir reserved for 
        each government's use, unless the City and the Tribes 
        mutually agree to an alternative cost allocation.
          (6) Title to the reservoir facility will be held 
        jointly in the name of the City and the United States, 
        in trust for the Tribes. The Secretary may negotiate a 
        contract transferring operation and maintenance 
        responsibility to either the Tribes or the City, 
        pursuant to all applicable State, Federal, and tribal 
        law.
          (7) The Secretary may direct that funds authorized 
        under this section be contracted to the Tribes, under 
        the Indian Self-Determination and Education Assistance 
        Act (25 U.S.C. 450 et seq.).

SEC. 219. AUTHORIZATION OF APPROPRIATIONS.

    Effective upon the boundary adjustments under section 
216(a), there are authorized to be appropriated to the 
Secretary, plus or minus such amounts as may be justified by 
reason of ordinary fluctuations of applicable cost indexes, the 
following sums, without fiscal year limitation:
          (1) Not to exceed $64,000,000 for feasibility 
        studies, environmental studies, and construction of the 
        Phase III Exchange: Provided, That all costs of Phase 
        III planning and construction, including operation and 
        maintenance costs allocated to the mitigation of 
        anadromous fish species and the study authorized by 
        section 215 of this Act, shall be nonreimbursable: 
        Provided further, That not more than 25 percent of the 
        amount appropriated under this paragraph may be 
        expended for administrative overhead costs.
          (2) Not to exceed $500,000 for tribal water claims 
        discussions, a water management plan, and an integrated 
        ground water/surface water model, as provided for in 
        section 217(a).
          (3) Not to exceed $400,000 annually for enforcement 
        and protection of Phases I, II, and III exchange water 
        for instream uses.
          (4) Not to exceed $6,500,000 for feasibility studies, 
        environmental studies, and construction of the Tribes' 
        portion of an off-stream storage reservoir and 
        associated works, as authorized in section 218 of this 
        title.
                            DISSENTING VIEWS

    The changes made by the Committee to H.R. 2392 are 
significant, but the legislation fails to address several 
critical issues and should not be enacted.
    H.R. 2392 would in effect legalize the illegal ``water 
spreading'' practices endemic to the Umatilla Basin Project by 
simply adjusting the project irrigation boundaries. The Bureau 
of Reclamation defines ``water spreading'' as the unauthorized 
use of water from Reclamation facilities. Since the late 1980s, 
the Bureau has noted there were ``significant unauthorized 
project water deliveries outside district boundaries'' in the 
Umatilla Project. The water spreading practices have been 
criticized by the Confederated Tribes of the Umatilla Indian 
Reservation and by environmental organizations, and were the 
subject of detailed hearings held by the Committee on Natural 
Resources in the 103rd Congress (Serial No. 103-101). Project 
water users, however, contend that changes over time in the 
irrigation districts' application of water were made with the 
Bureau's knowledge. In many cases, water was moved from less 
productive to more productive lands, and the Bureau looked the 
other way.
    The Committee also seems to be looking the other way in its 
approval of H.R. 2392. In their eagerness to approve irrigation 
district boundary changes, the supporters of H.R. 2392 have 
neglected to adequately provide for fishery restoration needs, 
short-circuited environmental review requirements, and conveyed 
millions of dollars in unjustifiable subsidies and benefits to 
local water users.
    Under H.R. 2392, Federal taxpayers, not project 
beneficiaries, will pay for the environmental review of the 
proposed boundary expansion. The cost of conducting 
environmental analyses and preparing environmental impact 
statements is normally assigned to local project sponsors or at 
least treated as an expense to be shared between local sponsors 
and the United States.
    The time allowed for environmental review would be 
statutorily limited to 6 months under this bill, an 
unjustifiable provision that is contrary to the intent of the 
most basic of our Federal environmental statutes. Ongoing 
hydrologic modeling studies of the Umatilla Basin may not be 
completed within six months. Without the results of those 
studies, no good science will be available to determine the 
environmental effects of boundary expansions.
    H.R. 2392 fails to provide adequate mitigation water for 
Westland Irrigation District water spreading. Neither of the 
two options specified in sec. 216(b) guarantees mitigation 
water until Phase III is completed, which is absolutely 
necessary. And under Option 2, irrigators would be granted 
$300,000 each year by the United States to pay them for 
``environmental enhancement'' water needed to mitigate for 
fishery damages caused by illegal water spreading practices. 
Water users should not be excused from providing reasonable 
water supplies to mitigate damages to fishery resources.
    The Phase III water exchanges provisions of the bill may 
allow new lands to be irrigated because the bill does not 
prohibit the irrigation district from using the Phase III 
facilities for ``conjunctive use'' pumping. This ``back door'' 
authorization of new irrigation would undoubtedly result in 
additional fishery impacts on the Columbia River, where the 
Bureau of Reclamation is acquiring water upstream for salmon 
recovery.
    Despite the long and public history of illegal water use in 
the Umatilla Basin Project, H.R. 2392 makes absolutely no 
attempt to recover the costs of past unauthorized water 
deliveries. According to the Bureau of Reclamation, the four 
irrigation districts pay less than $1 per acre-foot for their 
water supplies under their original water contracts. The water 
charges to irrigate lands outside the legal service area would 
probably be at least 8 times that amount, but H.R. 2392 simply 
legalizes the boundary changes and lets the water users off the 
hook.
    Supporters of H.R. 2392 have resisted good faith efforts to 
negotiate a compromise bill among the various interests in the 
Umatilla Basin. Instead of reflecting a consensus solution, 
H.R. 2392 simply bestows added taxpayer subsidies on project 
irrigators who already are among the most heavily subsidized 
water users in the entire Reclamation program.

            Sincerely yours,
                                   George Miller.
                                   Sam Gejdenson.
                                   Peter A. DeFazio.