[Senate Report 104-387]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 610
104th Congress                                                   Report
                                 SENATE

 2d Session                                                     104-387
_______________________________________________________________________


 
                 UMATILLA BASIN PROJECT COMPLETION ACT

                                _______
                                

               September 30, 1996.--Ordered to be printed

_______________________________________________________________________


  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1986]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1986) to provide for the completion of 
the Umatilla Basin Project, and for other purposes, having 
considered the same, reports favorably thereon with an 
amendment and recommends 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 referred to as the ``Umatilla Basin Project 
Completion Act.''
    Sec. 2. Title II of P.L. 100-557 is amended by adding at the end 
thereof:
    ``Sec. 214. Authorization of Project Completion.--The Secretary of 
the Interior (hereinafter referred to as the Secretary), acting 
pursuant to the Federal reclamation laws (Act of June 17, 1902, and 
Acts amendatory thereof and supplementary thereto), is authorized to 
complete construction and to operate and maintain the integrated 
Umatilla Basin Project, including pump exchange projects known as 
Phases I, II, and III, for the purposes of completing the Columbia 
River water exchanges and other mitigation efforts necessary to restore 
the Umatilla River Basin fishery, and providing for the expansion of 
Umatilla Basin Irrigation Districts' boundaries.
    ``Sec. 215. Umatilla Basin Project Phase III Exchange.--(a)(1) 
Authorization of project construction.--The Secretary is hereby 
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 of options 
in a feasibility study described in Section 215(a)(3).
    ``(3) 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 an 
assessment of the cost-effectiveness of the alternatives for restoring 
the Umatilla Basin fishery. The 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 deem 
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: Provided, that the irrigation districts shall continue to be 
eligible to receive the same volume of water as they received from 
their Umatilla River water rights and under their respective contracts 
with the Bureau of Reclamation dated July 6, 1954 for Hermiston 
Irrigation District, November 18, 1949 for Stanfield Irrigation 
District, July 6, 1954 for West Extension Irrigation District, and 
November 18, 1949 for Westland Irrigation District. Additional exchange 
agreements with other water users may be executed prior to delivery of 
water to those entities. The exchange agreements shall incorporate 
water delivery scheduling optimization, conservation, water transfer, 
and other technical operational measures recommended in the feasibility 
study.
    ``(5) Phase III facilities may pump Columbia River water for 
exchange purposes only, and not for conjunctive use.
    ``(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 non-
reimbursable.
    ``(c) Power For Project Pumping.--The Administrator of the 
Bonneville Power Administration (hereinafter referred to as the 
Administrator), consistent with provisions of the Columbia River Basin 
Fish and Wildlife Program adopted by the Northwest Power Planning 
Council pursuant to the Pacific Northwest Electric Power Planning and 
Conservation Act (94 Stat. 2697), shall provide power needed to effect 
the Phase III water exchange for purposes of mitigating anadromous 
fishery impacts. Beginning with the fiscal year that such power is 
provided, and continuing for so long as it is provided, the 
Administrator shall apply against amounts otherwise payable by the 
Administrator to the United States Treasury a credit that reduces the 
Administrator's payment by the amount equal to the cost of power 
provided in that year. For purposes of calculating that credit, the 
Administrator shall determine the cost of the power so provided by 
multiplying the amount of the power provided by the prevailing priority 
firm rate, or the rate which is then the equivalent of the priority 
firm rate if that designation is no longer used by the Administrator, 
plus applicable transmission charges for priority firm power.
    ``(d) Project facilities authorized by this title shall be 
integrated and coordinated into the existing Umatilla Basin Project.
    ``Sec. 216. Umatilla Basin Irrigation Districts Boundary 
Adjustment.--(a) Upon enactment of the Umatilla Basin Project 
Completion Act, the boundaries of the four irrigation districts are 
adjusted by operation of law as follows:
          ``(1) Hermiston Irrigation District's boundaries are adjusted 
        to include the 1,091 acres identified in its 1993 request to 
        the Bureau of Reclamation;
          ``(2) Stanfield Irrigation District's boundaries are adjusted 
        to include the 3,549 acres identified in its 1993 request to 
        the Bureau of Reclamation. Stanfield Irrigation District shall 
        design and complete a riparian project, as described in their 
        temporary contract with the Bureau of Reclamation;
          ``(3) 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; and
          ``(4) Westland Irrigation District's boundaries are adjusted 
        to include the 9,912 acres identified in its 1993 request to 
        the Bureau of Reclamation: Provided, That the mitigation 
        provisions included in Westland's 1996 temporary contract with 
        the Bureau of Reclamation shall remain in force until Phase III 
        of the Umatilla Basin Project is constructed, operationally 
        tested, and ready for turnover to operations and maintenance 
        status. A riparian project, as described in the temporary 
        contract, will be designed and completed by the Westland 
        Irrigation District.
    ``(b) Notwithstanding any other provision of this Title, 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.
    ``(c) Upon approval of each irrigation district's boundary 
adjustment request and adjustment of the boundary, a legal description 
of the new district boundaries, including land classification and 
project boundary maps, shall be provided as an attachment to all four 
Irrigation Districts' existing contracts.
    ``(d) No alteration in the ability to pay determination for the 
Umatilla Basin Project districts may be made as a result of the project 
boundary expansions authorized by this Title.
    ``Sec. 217. Water Protection and Management.--(a) The Secretary, in 
cooperation with the Confederated Tribes of the Umatilla Indian 
Reservation (hereinafter referred to as the Tribes), shall participate 
in any discussions with the State of Oregon (hereinafter 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:
          ``(1) The Secretary, taking into account the facilities and 
        analyses authorized by the Act, shall participate in any 
        efforts undertaken by the State, Tribes, irrigation districts, 
        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 groundwater/surface water model of the Upper 
        Umatilla River Basin.
          ``(2) Within two years after the date of enactment of this 
        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 this Act;
                  ``(B) the water management plan;
                  ``(C) the groundwater/surface water model; and
                  ``(D) the status of discussions of Tribal water 
                claims in the Umatilla River Basin.
    ``(b) The Secretary shall enter into appropriate agreements with 
the State, the relevant irrigation districts, and the Tribes, as 
appropriate, to provide funding for monitoring and administration, 
including regulation, of project-related water supplies for the 
purposes herein identified.
    ``Sec. 218. Joint Water Supply System.--The Secretary is authorized 
to provide by grant or contract, any funds appropriated pursuant to 
Section 219(a)(4) of this Act, to the Tribes for the construction of an 
offstream storage reservoir of approximately 10,000 acre-feet capacity, 
with associated works. Such authorization shall not include the purpose 
of constructing water treatment facilities. Such reservoir is to be 
located on or adjacent to the Tribes' Reservation in Oregon: Provided, 
That:
    ``(a) The City of Pendleton, Oregon (hereinafter referred to as the 
City) agrees to provide up to $16,000,000 (in addition to the 
$6,500,000 authorized by this Act for the Tribal share of the project) 
for feasibility level planning and environmental studies and 
construction of the reservoir and associated works provided for by this 
Section. Any cost overruns beyond the $22,500,000 estimated for the 
reservoir and associated works authorized by this Act shall be 
allocated 70 per cent to the City and 30 per cent to the Tribes, unless 
they mutually agree otherwise. In the event that actual construction of 
the reservoir and associated works is not initiated within 24 months of 
funds being appropriated pursuant to Section 219(a)(4), such funds will 
be returned to the Treasury;
    ``(b) The Secretary determines, pursuant to appropriate feasibility 
level planning and environmental studies, that the facility can be 
built and operated in a manner which conforms to all applicable 
Federal, State, and Tribal laws and that the project siting and 
construction minimizes adverse effects on the Umatilla River fishery;
    ``(c) The Secretary, in cooperation with the State and the Tribes, 
determines that 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 may agree to higher levels of 
protection of instream flows, as may be permitted by State and Federal 
law. 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;
    ``(d) 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 Revised Statutes 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;
    ``(e) The City and the Tribes shall be responsible for operation 
and maintenance of the reservoir and associated works and shall share 
all operation and maintenance costs on a pro rata basis, determined by 
the amount of water in the reservoir set aside for each Government's 
use, unless the City and the Tribes mutually agree to an alternative 
cost allocation; and
    ``(f) The Secretary may direct that funds authorized under Section 
219(a)(4) be contracted to the Tribes, under the provision of the 
Indian Self-Determination and Education Assistance Act, 25 U.S.C. 
Sec. 450 et seq., as amended.
    ``Sec. 219. Authorization of Appropriations.--``(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 in Section 215 of this Act, shall be non-
        reimbursable; 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 a water management plan and 
        an integrated groundwater/surface water model, as provided for 
        in Section 217(a) of this title;
          ``(3) not to exceed $400,000 annually for enforcement and 
        protection of Phases I, II, and III exchange water for instream 
        uses, as provided for in Section 217(b) of this title; and
          ``(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.--Nothing in this Act shall:
    (a) 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;
    (b) Create a right to the diversion or use of water other than as 
established pursuant to the substantive and procedural requirements of 
State law and as recognized under State law;
    (c) Impair any valid water right; or
    (d) Establish or create any water rights for any party, nor may any 
provision 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 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: Provided, That fulfillment of 
obligations is contingent upon an agreement between the United States, 
the Tribes, and the State as to the instream flow levels necessary for 
fishery restoration, and that the design and operation of the 
integrated Umatilla Basin Project, as determined by the feasibility 
study required in Section 215(a)(3) of this Act, will allow such 
instream flow levels to be achieved.

                         Purpose of the Measure

    S. 1986, as ordered reported, would amend the Umatilla 
Basin Project Act of 1988 (P.L. 100-557) to provide $71 million 
for the completion of the Phase III exchange system and would 
make or authorize alterations in District boundaries consistent 
with current water deliveries.

                          Background and Need

    The Umatilla project, located in northeastern Oregon, was 
authorized in 1905 under the 1902 Reclamation Act and most 
facilities were constructed between 1906 and 1927. Four 
irrigation districts operate and maintain the project 
facilities. Diversion facilities include the Three Mile Falls 
Dam and the Feed Canal Diversion Dam which is used to till Cold 
Springs reservoir. Storage facilities for the project include 
the Cold Springs and McKay Dams.
    In 1988, the Umatilla Basin Project Act was passed for the 
purpose of mitigating the loss of anadromous fishery resources 
on the Umatilla River while continuing water service to 
irrigated lands. The project, when fully implemented by the 
Bureau, will improve the flow conditions of the Umatilla River 
for salmon and steel head trout migration, spawning and rearing 
by providing exchange water from the Columbia River. Annual 
pumping requirements for the project from the Columbia River is 
estimated to average 39,000 acre feet annually. In 1996, over 
4,000 fish returned to the Umatilla River for the first time in 
decades.
    The 1988 Act, however, provided Columbia River exchanges 
for only half of the Umatilla River irrigation withdrawals. The 
legislation calls for the completion of a third and final phase 
of the project to provide exchange water and will satisfy all 
obligations of the United States to provide water for fishery 
needs of the Confederated Tribes of the Umatilla Indian 
Reservation below the mouth of McKay creek. The legislation 
also adjusts the boundaries of the four districts (one 
prospectively) in accordance with the lands irrigated with 
project water in 1988 and calls for a comprehensive water 
management plan for the Umatilla River.

                          Legislative History

    Senator Hatfield introduced S. 1986 on July 24, 1996. The 
Subcommittee on Forests and Public Land Management held a 
hearing on September 3, 1996.

            Committee Recommendations and Tabulation of Vote

    The Senate Committee on Energy and Natural Resources, in 
open business session on Thursday, September 12, 1996, by a 
unanimous voice vote of a quorum present, recommends that the 
Senate pass S. 1986 as described herein.

                      Section-by-Section Analysis

Section 1--Short title

    The title of the Act is the ``Umatilla Basin Project 
Completion Act.''

Section 2--Umatilla Basin Project Act amendments

    This section amends title II of the Umatilla Basin Project 
Act of 1988, Pub. L. 100-557, by adding the following new 
sections:
    Section 214 authorizes the Secretary of the Interior to 
complete the construction of the Umatilla Basin Project and to 
operate and maintain the Project for purposes of completing the 
Columbia River water exchanges, and provides for the expansion 
of the Umatilla Basin Irrigation District's boundaries.
    Section 215 authorizes the Secretary 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. 
Prior to construction, the Secretary is required to conduct 
feasibility studies and environmental analyses. Prior to 
completion of Phase III facilities, the Secretary is required 
to negotiate and execute a water exchange agreement with 
Westland Irrigation District to allow the use of Columbia River 
water in exchange for an equivalent amount of Umatilla River or 
McKay Reservoir water. Phase III facilities are required to use 
project water only for exchange purposes and not for 
conjunctive use. All exchange system operation and maintenance 
costs and any increased operation and maintenance costs caused 
by the exchange shall be non-reimbursable and be the 
responsibility of the United States. The Bonneville Power 
Administration is required to provide the power necessary to 
effect the Phase III water exchange for purposes of mitigating 
anadromous fishery impacts. Beginning with the year power is 
provided and continuing for so long thereafter as power is 
provided, BPA shall be given a credit against amounts owed to 
the United States Treasury in an amount equal to the cost of 
power provided in that year.
    Section 216 would adjust the boundaries of four irrigation 
districts by operation of law as follows: Hermiston Irrigation 
District's boundaries would be adjusted to include 1,091 acres; 
Stanfield Irrigation District's boundaries would be adjusted to 
include 3,549 acres; West Extension Irrigation District's 
boundaries would be adjusted to include 2,436.8 acres; and 
Westland Irrigation District's boundaries would be adjusted to 
include 9,912 acres. Stanfield and Westland Irrigation 
Districts will remain responsible for riparian mitigation 
projects specified in their temporary contracts with the Bureau 
of Reclamation. Westland Irrigation District will continue to 
provide McKay Reservoir water for instream flows, as specified 
in its temporary contract, until Phase III is completed. A 
valid State water right and ``irrigable'' classification status 
are prerequisites for receiving project water, and there is no 
alteration in ability to pay determinations for any of the four 
districts as a result of the boundary expansions.
    Section 217 requires the Secretary to: (1) participate in 
discussions with the State of Oregon regarding water claims of 
the Tribes of the Umatilla Indian Reservation and other water 
needs in the Umatilla River Basin; (2) participate in efforts 
taken by the State, Tribes, irrigation districts, BPA and the 
affected public to develop a water management plan for the 
Umatilla Basin; (3) develop an integrated groundwater/surface 
water model for the Upper Umatilla River Basin; (4) report to 
Congress within two years of enactment of the status of the 
facilities authorized by this Act, the water management plan, 
the water model, and discussions of Tribal water claims; and 
(5) enter into agreements with the State, irrigation districts, 
and Tribes to provide funding for monitoring and 
administration, including regulation, of project-related water 
supplies.
    Section 218 authorizes the Secretary to contract with the 
Tribes to construct an offstream storage reservoir of 
approximately 10,000 acre feet capacity, with associated works. 
The authorization does not include construction of water 
treatment facilities. The reservoir will be filled only during 
periods of high flow. The City of Pendleton is required to 
provide up to $16 million and use its Umatilla River water to 
improve the fishery.
    Section 219 authorizes: $64,000,000, with a 25% 
administrative cost cap, for Phase III studies and 
construction; $500,000 for developing a comprehensive 
management plan and a groundwater/surface water model; $400,000 
for monitoring and enforcing project water; and $6,500,000 for 
offstream reservoir studies and construction.

Section 3--Water rights

    This section declares that nothing in this Act: (1) impairs 
the validity of or preempts State law with respect to water or 
water rights, or of any interstate compact governing water or 
water rights; (2) creates a right to divert or use water other 
than as established pursuant to the substantive and procedural 
requirements of State law; (3) impairs any valid water right; 
or (4) establishes or creates any water rights for any part, 
nor creates an express or implied Federal reserved water right 
for any purpose.

Section 4--Sense of Congress

    This section declares that Congress expects that operation 
of Phases I, II, and III of the Umatilla Basin Project and the 
joint water supply project with the City of Pendleton will 
fulfill all obligations of the Federal Government to provide 
the Confederated Tribes of the Umatilla River Indian 
Reservation with water for fishery needs in the Umatilla River 
below the mouth of McKay Creek, as recognized by their 1855 
Treaty with the United States.

                   cost and regulatory considerations

    The Congressional Budget Office estimate of the costs of 
this measure follows:

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 27, 1996.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources, U.S. Senate, 
        Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1986, 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.
    Enclosure.

               congressional budget office cost estimate

    1. Bill number: S. 1986.
    2. Bill title: Umatilla Basin Project Completion Act.
    3. Bill status: As reported by the Senate Committee on 
Energy and Natural Resources on September 16, 1996.
    4. Bill purpose: S. 1986 would adjust the boundaries of 
irrigation districts in the Umatilla Basin and 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 (BPA) 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 S. 1986 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 $500,000.                                                                                           

    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. 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.
    Direct spending: Enacting S. 1986 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 Administer 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: S. 1986 contains no intergovernmental mandates as 
defined in the Unfunded Mandates Reform Act of 1995 (Public Law 
104-4), and would impose no costs on state, local, or tribal 
governments. The bill would adjust the boundaries of four 
irrigation districts in the Umatilla Basin and would authorize 
construction of facilities to replace the water these districts 
currently receive from the Umatilla River with water from the 
Columbia River. The water the districts 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 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. The city 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/30percent basis, unless they agreed to another ratio. 
They would divide all operation and maintenance costs for the 
reservoir on a pro rata basis.
    9. Estimated impact on the private sector: This bill would 
impose no new private-sector mandates a defined in Public Law 
104-4.
    10. Previous CBO estimate: On September 27, 1996, CBO 
provided an estimate for H.R. 2392, as reported by the House 
Committee on Resources on September 18, 1996. The two bills are 
similar, and the estimates are identical.
    11. Estimated prepared by: Federal cost estimate: Gary 
Brown; Impact on State, local, and tribal governments: Pepper 
Santalucia; and Impact on the private sector: Patrice Gordon.
    12. Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.

                       federal mandate evaluation

    The Congressional Budget Office has determined that S. 1986 
contains no private sector or intergovernmental mandates as 
defined in the Unfunded Mandates Reform Act of 1995 (Public Law 
104-4).

                      regulatory impact evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
implementing S. 1986. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    There are likely to be significant paperwork requirements 
for the Department of the Interior.

                        executive communications

    A Statement of Administration Position has not been 
submitted as of the date this report was filed. When the SAP is 
available, the Chairman will request that it be printed in the 
Congressional Record for the advice of the Senate.

                        changes in existing law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by the bill S. 1986, as 
ordered reported.