[House Report 118-847]
[From the U.S. Government Publishing Office]


118th Congress }                                             { Report
                        HOUSE OF REPRESENTATIVES
  2d Session   }                                             { 118-847

======================================================================



 
             KLAMATH BASIN WATER AGREEMENT SUPPORT ACT OF
                                 2024

                                _______
                                

 December 10, 2024.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

        Mr. Westerman, from the Committee on Natural Resources, 
                        submitted the following


                              R E P O R T

                        [To accompany H.R. 7938]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 7938) to amend the Klamath Basin Water Supply 
Enhancement Act of 2000 to provide the Secretary of the 
Interior with certain authorities with respect to projects 
affecting the Klamath Basin watershed, 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 all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Klamath Basin Water Agreement Support 
Act of 2024''.

SEC. 2. KLAMATH PROJECT WATER AND POWER.

  (a) Addressing Water, Power, and Facilities Management for 
Irrigation.--Section 4 of the Klamath Basin Water Supply Enhancement 
Act of 2000 (Public Law 106-498) is amended by adding at the end the 
following:
  ``(d) Restoration Activities.--The Secretary may--
          ``(1) plan, design, construct, operate, and maintain projects 
        in the Klamath Basin watershed, including--
                  ``(A) facilities to reduce fish entrainment;
                  ``(B) projects that reduce or avoid impacts on 
                aquatic resources of facilities involved in the storage 
                or diversion of water for irrigation in the Klamath 
                Project service area; and
                  ``(C) projects that restore habitats in the Klamath 
                Basin watershed, including Tribal fishery resources 
                held in trust;
          ``(2) undertake studies, including feasibility studies, and 
        improvements that the Secretary determines to be necessary to 
        implement this subsection;
          ``(3) in implementing this subsection, enter into contracts, 
        memoranda of understanding, financial assistance agreements, 
        cost-sharing agreements, or other appropriate agreements with--
                  ``(A) State, Tribal, and local governmental agencies; 
                and
                  ``(B) private parties; and
          ``(4) accept and expend non-Federal funds in order to 
        facilitate implementation of this subsection.
  ``(e) Goals.--The goals of activities under subsections (b) and (d) 
shall include, as applicable--
          ``(1) the short-term and long-term reduction and resolution 
        of conflicts relating to water in the Klamath Basin watershed; 
        and
          ``(2) compatibility and utility for protecting natural 
        resources throughout the Klamath Basin watershed, including the 
        protection, preservation, and restoration of Klamath River 
        Tribal fishery resources, particularly through collaboratively 
        developed agreements.
  ``(f) Pumping Plant D.--The Secretary may enter into 1 or more 
agreements with the Tulelake Irrigation District to reimburse the 
Tulelake Irrigation District for not more than 69 percent of the cost 
incurred by the Tulelake Irrigation District for the operation and 
maintenance of Pumping Plant D, subject to the condition that the cost 
results in benefits to the United States.
  ``(g) Infrastructure.--
          ``(1) Keno and link river dams.--The Secretary of the 
        Interior shall comply with the terms of the agreement entitled 
        `2016 Klamath Power and Facilities Agreement'(`Agreement'), 
        including Attachment A to the Agreement.
          ``(2) Replacement of c canal flume.--
                  ``(A) In general.--The replacement of the C Canal 
                flume within the Klamath Project shall be considered to 
                be, and shall receive the treatment authorized for, 
                qualified emergency extraordinary operation and 
                maintenance work in accordance with Federal reclamation 
                law (the Act of June 17, 1902 (32 Stat. 388, chapter 
                1093), and Acts supplemental to and amendatory of that 
                Act (43 U.S.C. 371 et seq.)).
                  ``(B) Contract.--
                          ``(i) In general.--Not later than 180 days 
                        after the date of receipt of a request from the 
                        Klamath Irrigation District to enter into a 
                        contract with that district to amend the 
                        contract numbered 16-WC-20-4838, the Secretary 
                        shall enter into a contract with the Klamath 
                        Irrigation District providing that under the 
                        contract entered into under this subparagraph--
                                  ``(I) 35 percent of the total 
                                repayment obligation is nonreimbursable 
                                to the United States; and
                                  ``(II) 65 percent of the total 
                                repayment obligation shall be repaid to 
                                the United States over a period of 50 
                                years.
                          ``(ii) Inclusion.--Although the Secretary 
                        shall not condition the agreement to the 
                        contract entered into under subparagraph (A) on 
                        any other term, the contract may include other 
                        terms that are not less favorable to the 
                        contractor than contract numbered 16-WC-20-
                        4838.''.
  (b) Administration; Effect.--
          (1) Compliance.--In implementing the amendments made by this 
        section, the Secretary of the Interior shall comply with--
                  (A) the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.);
                  (B) the Endangered Species Act of 1973 (16 U.S.C. 
                1531 et seq.); and
                  (C) all other applicable laws.
          (2) Effect.--None of the amendments made by this section--
                  (A) modify any authority or obligation of the United 
                States with respect to any Tribal trust or treaty 
                obligation of the United States;
                  (B) create or determine any water right; or
                  (C) affect any water right or water right claim in 
                existence on the date of the enactment of this Act.

                       Purpose of the Legislation

    The purpose of H.R. 7938 is to amend the Klamath Basin 
Water Supply Enhancement Act of 2000 to provide the Secretary 
of the Interior with certain authorities with respect to 
projects affecting the Klamath Basin watershed, and for other 
purposes.

                  Background and Need for Legislation

    The Klamath River basin covers southern Oregon and northern 
California, encompassing 12,000 square miles.\1\ The basin's 
water allocation and species protection have generated conflict 
among farmers, Indian tribes, fishermen, water project and 
wildlife refuge managers, environmental groups, hydropower 
facility operators, and state and local governments.
---------------------------------------------------------------------------
    \1\NOAA Fisheries, ``Klamath River Basin''. https://
www.fisheries.noaa.gov/west-coast/habitat-conservation/klamath-river-
basin.
---------------------------------------------------------------------------
    Multiple people and species rely on Klamath basin waters. 
Irrigated agriculture in the Upper Klamath Basin is partially 
supported by water from Reclamation's Klamath Project and 
partially by off-project supplies.\2\ Further, six national 
wildlife refuges rely on basin waters to sustain migratory bird 
habitat, and several Native American tribes historically 
depended on lower and upper basin fish species.
---------------------------------------------------------------------------
    \2\U.S. Bureau of Reclamation, Klamath Project. https://
www.usbr.gov/projects/index.php?id=470.
---------------------------------------------------------------------------
    There are two species of upper basin fish currently listed 
as endangered under the Endangered Species Act (ESA; 16 U.S.C. 
Sec. 1531 et seq.)--the Lost River sucker and the shortnose 
sucker. In the lower basin, the coho salmon is listed as 
threatened. Conflicts in the basin first came to a head in 
2001, when, because of previous biological opinions, 
Reclamation severely curtailed water deliveries to the Klamath 
Project to provide more water for endangered fish.\3\
---------------------------------------------------------------------------
    \3\Jeff Barnard, ``Convoy arrives in Klamath Falls to protest water 
shutoff''. Arizona Daily Sun, 8/21/01. https://azdailysun.com/convoy-
arrives-in-klamath-falls-to-protest-water-shutoff/
article_f583e6a0-044b-5e63-8510-6574970fd454.html.
---------------------------------------------------------------------------
    The basin contains seven dams on the Klamath River and its 
tributaries, built between 1903 and 1958.\4\ Six of these dams 
were owned by PacifiCorp.\5\ These dams are known collectively 
as the Klamath Hydroelectric Project (KHP). Historically, only 
one dam has produced hydroelectric power for the basin, 
including low-cost power for Klamath Project irrigators. The 
original Federal Energy Regulatory Commission (FERC) license to 
operate the KHP expired in 2006. In 2004, PacifiCorp applied 
for relicensing of the project,\6\ and in 2007, FERC staff 
issued a final environmental impact statement for the 
application.\7\ FERC recommended a new license with mandatory 
prescriptions to create fish ladders, which was projected to 
cost hundreds of millions of dollars to implement and result in 
net operating losses for the project.\8\
---------------------------------------------------------------------------
    \4\Klamath Hydroelectric Project--FERC No. 2082, Request for 
Determination of Eligibility. October 2003. https://www.pacificorp.com/
content/dam/pcorp/documents/en/pacificorp/energy/hydro/klamath-river/
relicensing/klamath-final-license-application/
Exhibit_E_Appendices_E_6E_
Request_for_Determination_of_Eligibility_Text.pdf.
    \5\Id.
    \6\FERC (Federal Energy Regulatory Commission). 2007. Final 
Environmental Impact Statement for Hydropower License, Klamath 
Hydroelectric Project, FERC Project No. 2082-027, FERC/EIS-0201F. 
Washington, D.C., Federal Energy Regulatory Commission, Office of 
Energy Projects, Division of Hydropower Licensing. https://
www.ferc.gov/industries/hydropower/enviro/eis/2007/11-16-07.asp.
    \7\Id.
    \8\CRS, In Focus: Klamath River Dam Removal and Restoration, March 
3, 2022. https://crsreports.congress.gov/product/pdf/IF/IF11616.
---------------------------------------------------------------------------
    In 2010, the Secretary of the Interior, the Governors of 
Oregon and California, PacifiCorp, and other parties announced 
two interrelated settlement agreements intended to resolve 
long-standing issues in the basin: the Klamath Basin 
Restoration Agreement (KBRA) and the Klamath Hydroelectric 
Settlement Agreement (KHSA).\9\ The KBRA proposed actions to 
restore Klamath fisheries and assurances for water deliveries 
to wildlife refuges and project irrigators, among other 
things.\10\ The KHSA laid out a removal process that required a 
secretarial determination and the transfer of the dams to the 
Department of the Interior (DOI), which would oversee 
decommissioning.\11\
---------------------------------------------------------------------------
    \9\Department of the Interior. ``Two New Klamath Basin Agreements 
Carve out Path for Dam Removal and Provide Key Benefits to Irrigators'' 
04/06/2016. https://www.doi.gov/pressreleases/two-new-klamath-basin-
agreements-carve-out-path-dam-removal-and-provide-key-benefits.
    \10\Klamath Basin Restoration Agreement for the Sustainability of 
Public and Trust Resources and Affected Communities, 2/18/2010. https:/
/klamathrenewal.org/wp-content/uploads/2020/07/Klamath-Basin-
Restoration-Agreement-2-18-10.pdf.
    \11\U.S. Bureau of Reclamation, Klamath Hydroelectric Settlement 
Agreement, Including Secretarial Determination on Whether to Remove 
Four Dams on the Klamath River in California and Oregon. 75 FR 33634. 
https://www.federalregister.gov/documents/2010/06/14/2010-14174/
klamath-hydroelectric-settlement-agreement-including-secretarial-
determination-on-whether-to-
remove.
---------------------------------------------------------------------------
    A third agreement involving off-project irrigators in the 
Upper Klamath Basin was finalized in 2014.\12\ The Klamath 
settlement agreements were contingent on the passage of federal 
legislation authorizing numerous new federal activities and 
expenditures in the basin. Legislation approving the agreements 
was introduced and received hearings in the 113th and 114th 
Congresses \13\}\14\ but was not enacted. This 
action led to a push for the removal of the Klamath River dams 
without the need for congressional action.
---------------------------------------------------------------------------
    \12\Upper Klamath Basin Comprehensive Agreement, April 18, 2014. 
https://klamathrenewal.org/wp-content/uploads/2020/03/Upper-Klamath-
Basin-Comprehensive-
Agreement.pdf.
    \13\S. 2379--Klamath Basin Water Recovery and Economic Restoration 
Act of 2014.
    \14\S. 133--Klamath Basin Water Recovery and Economic Restoration 
Act of 2015.
---------------------------------------------------------------------------
    In 2016, the parties amended the KHSA to no longer require 
the transfer of dams to DOI and avoid the need for 
congressional authorization.\15\ State and federal officials 
also signed a separate agreement with irrigation interests and 
other parties, the 2016 Klamath Power and Facilities Agreement 
(KPFA).\16\ This agreement is intended to help Klamath Basin 
irrigators avoid adverse financial and regulatory impacts 
associated with the return of endangered species to the Upper 
Klamath Basin, which are anticipated after the dams are 
removed.
---------------------------------------------------------------------------
    \15\Department of the Interior. ``Two New Klamath Basin Agreements 
Carve out Path for Dam Removal and Provide Key Benefits to Irrigators'' 
04/06/2016. https://www.doi.gov/pressreleases/two-new-klamath-basin-
agreements-carve-out-path-dam-removal-and-provide-key-benefits.
    \16\2016 Klamath Power and Facilities Agreement, https://
www.oregon.gov/owrd/programs/WaterRights/Adjudications/
KlamathRiverBasinAdj/Documents/
Klamath%20Power%20and%20Facilites%20Agreement.pdf.
---------------------------------------------------------------------------
    H.R. 7938, as amended, would implement provisions of the 
KPFA by authorizing DOI to operate and improve infrastructure, 
including Keno Dam, which PacifiCorp will convey to the federal 
government. The legislation also clarifies that the Klamath 
Project is not financially responsible for any of the costs 
associated with the Keno Dam. The bill authorizes the DOI to 
protect ESA-listed species through fish screens and other 
restoration efforts, which protect Tribal resources held in 
trust and avoid additional regulatory burden on stakeholders.

                            Committee Action

    H.R. 7938 was introduced on April 11, 2024, by Rep. Cliff 
Bentz (R-OR). The bill was referred to the Committee on Natural 
Resources, and within the Committee to the Subcommittee on 
Water, Wildlife and Fisheries. On May 22, 2024, the 
Subcommittee on Water, Wildlife and Fisheries held a hearing on 
the bill. On November 20, 2024, the Committee on Natural 
Resources met to consider the bill. The Subcommittee on Water, 
Wildlife and Fisheries was discharged from further 
consideration of H.R. 7938 by unanimous consent. Rep. Cliff 
Bentz (R-OR) offered an Amendment in the Nature of a Substitute 
designated Bentz ANS_047. The amendment in the nature of a 
substitute was agreed to by unanimous consent.
    The bill, as amended, was ordered favorably reported to the 
House of Representatives by unanimous consent.

                                Hearings

    For the purposes of clause 3(c)(6) of House rule XIII, the 
following hearing was used to develop or consider this measure: 
hearing by the Subcommittee on Water, Wildlife and Fisheries 
held on May 22, 2024.

                      Section-by-Section Analysis


Section 1. Short title

    Section 1 states that the Act may be cited as the ``Klamath 
Basin Water Agreement Support Act of 2024''.

Section 2. Klamath project water and power

    Section 2 protects Klamath Basin irrigators from financial 
and regulatory impacts associated with the return of endangered 
species to the Upper Klamath Basin.

            Committee Oversight Findings and Recommendations

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

           Compliance With House Rule XIII and Congressional
                               Budget Act

    1. Cost of Legislation and the Congressional Budget Act. 
Pursuant to clause 3(c)(2) of House rule XIII and section 
308(a) of the Congressional Budget Act of 1974, and pursuant to 
clause 3(c)(3) of House rule XIII and section 402 of the 
Congressional Budget Act of 1974, the Committee has requested 
but not received from the Director of the Congressional Budget 
Office a budgetary analysis and a cost estimate of this bill.
    2. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to amend the Klamath Basin Water 
Supply Enhancement Act of 2000 to provide the Secretary of the 
Interior with certain authorities with respect to projects 
affecting the Klamath Basin watershed, and for other purposes.

                           Earmark Statement

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                 Unfunded Mandates Reform Act Statement

    An estimate of federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chair of 
the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee, if such 
estimate is not publicly available on the Congressional Budget 
Office website.

                           Existing Programs

    Directed Rule Making. This bill does not contain any 
directed rule makings.
    Duplication of Existing Programs. This bill does not 
establish or reauthorize a program of the federal government 
known to be duplicative of another program. Such program was 
not included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-139 
or identified in the most recent Catalog of Federal Domestic 
Assistance published pursuant to the Federal Program 
Information Act (Public Law 95-220, as amended by Public Law 
98-169) as relating to other programs.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                Preemption of State, Local or Tribal Law

    Any preemptive effect of this bill over state, local, or 
tribal law is intended to be consistent with the bill's 
purposes and text and the Supremacy Clause of Article VI of the 
U.S. Constitution.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) 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 italics and existing law in which no change is 
proposed is shown in roman):

              KLAMATH BASIN WATER SUPPLY ENHANCEMENT ACT
                                OF 2000

           *       *       *       *       *       *       *

SEC. 4. POWER AND WATER MANAGEMENT

  (a) Definitions.--In this section:
          (1) Covered power use.--The term ``covered power 
        use'' means a use of power to develop or manage water 
        from any source for irrigation, wildlife purposes, or 
        drainage on land that is--
                  (A) associated with the Klamath Project, 
                including land within a unit of the National 
                Wildlife Refuge System that receives water due 
                to the operation of Klamath Project facilities; 
                or
                  (B) irrigated by the class of users covered 
                by the agreement dated April 30, 1956, between 
                the California Oregon Power Company and Klamath 
                Basin Water Users Protective Association and 
                within the Off Project Area (as defined in the 
                Upper Basin Comprehensive Agreement entered 
                into on April 18, 2014), only if each 
                applicable owner and holder of a possessory 
                interest of the land is a party to that 
                agreement (or a successor agreement that the 
                Secretary determines provides a comparable 
                benefit to the United States).
          (2) Klamath project.--
                  (A) In general.--The term ``Klamath Project'' 
                means the Bureau of Reclamation project in the 
                States of California and Oregon.
                  (B) Inclusions.--The term ``Klamath Project'' 
                includes any dam, canal, or other works or 
                interests for water diversion, storage, 
                delivery, and drainage, flood control, or any 
                similar function that is part of the project 
                described in subparagraph (A).
          (3) Power cost benchmark.--The term ``power cost 
        benchmark'' means the average net delivered cost of 
        power for irrigation and drainage at Reclamation 
        projects in the area surrounding the Klamath Project 
        that are similarly situated to the Klamath Project, 
        including Reclamation projects that--
                  (A) are located in the Pacific Northwest; and
                  (B) receive project-use power.
  (b) Water Activities and Drought Response.--
          (1) In general.--Subject to appropriations and 
        required environmental reviews, the Secretary is 
        authorized to carry out activities, including entering 
        into a contract or making financial assistance 
        available through cooperative agreements or other 
        methods--
                  (A) to plan, implement, and administer 
                programs, including conservation and efficiency 
                measures, land idling, and use of groundwater, 
                to align water supplies and demand for 
                irrigation water users associated with the 
                Klamath Project, with a primary emphasis on 
                programs developed or endorsed by local 
                entities comprised of representatives of those 
                water users;
                  (B) Expenditures under this paragraph shall 
                not exceed $10 million on an average annual 
                basis.
          (2) 2018 drought response.--All disbursements made or 
        to be made based on actions approved by the Secretary 
        under Contract Numbers 18-WC-20-5322 and 18-WC-20-5323 
        are authorized.
          (3) Requirements.--The Secretary shall ensure that 
        the activities under this subsection--
                  (A) do not foster groundwater use that 
                results in groundwater level declines that, 
                based on existing data from the United States 
                Geological Survey, are more than appropriate in 
                a critically dry year, taking into 
                consideration the long-term sustainability of 
                aquifers; and
                  (B) do not adversely affect compliance with 
                applicable laws protecting fishery resources in 
                Upper Klamath Lake and the Klamath River.
          (4) Conveyance of non-project water.--
                  (A) In general.--Subject to subparagraphs (B) 
                and (C), any entity operating under a contract 
                entered into with the United States for the 
                operation and maintenance of any Klamath 
                Project works or facility, and any entity 
                operating any works or facility not owned by 
                the United States that receives Klamath Project 
                water, may use, without any additional Federal 
                contract, permit, or other authorization, any 
                Klamath Project works or facility to convey 
                non-Klamath Project water for any authorized 
                purpose of the Klamath Project.
                  (B) Permits; measurement.--A use of water 
                pursuant to subparagraph (A) (including an 
                addition or conveyance of water) shall be 
                subject to the requirements that--
                          (i) the applicable entity shall 
                        secure all permits required under State 
                        or local law; and
                          (ii) as applicable--
                                  (I) all water delivered into 
                                and taken out of a Klamath 
                                Project works or facility 
                                pursuant to that subparagraph 
                                shall be measured; and
                                  (II) any irrigation district 
                                conveying water shall ensure 
                                that only the land authorized 
                                to receive water under 
                                applicable State law shall 
                                receive, and put to beneficial 
                                use, the water, in accordance 
                                with the applicable State law 
                                and any associated terms and 
                                conditions.
                  (C) Limitation.--A use of non-Klamath Project 
                water under this paragraph shall not--
                          (i) adversely affect the delivery of 
                        water to any water user or land served 
                        by the Klamath Project; or
                          (ii) result in any additional cost to 
                        the United States.
          (5) Effect of subsection.--Nothing in this subsection 
        authorizes the Secretary to develop or construct new 
        facilities for the Klamath Project without appropriate 
        approval from Congress under section 9 of the 
        Reclamation Projects Act of 1939 (43 U.S.C. 485h).
  (c) Reducing Power Costs.--
          (1) In general.--Not later than 180 days after the 
        date of enactment of America's Water Infrastructure Act 
        of 2018, the Secretary, in consultation with interested 
        irrigation interests that are eligible for covered 
        power use and organizations representative of those 
        interests, shall submit to the Committee on Energy and 
        Natural Resources of the Senate and the Committee on 
        Natural Resources of the House of Representatives a 
        report that--
                  (A) identifies the power cost benchmark; and
                  (B) recommends actions (other than direct 
                payments to persons making covered power uses 
                or to other entities for the purposes of 
                subsidizing power rates) that, in the judgment 
                of the Secretary, are necessary and appropriate 
                to ensure that the net delivered power cost for 
                covered power use is equal to or less than the 
                power cost benchmark, including a description 
                of--
                          (i) actions--
                                  (I) to immediately reduce 
                                power costs; and
                                  (II) to ensure that the net 
                                delivered power cost for 
                                covered power use is equal to, 
                                or less than, the power cost 
                                benchmark in the near term, 
                                while longer-term actions are 
                                being implemented;
                          (ii) actions that prioritize--
                                  (I) water and power 
                                conservation and efficiency 
                                measures that could assist in 
                                achieving the power cost 
                                benchmark;
                                  (II) to the extent actions 
                                involving the development or 
                                acquisition of power generation 
                                are included, renewable energy 
                                technologies (including 
                                hydropower); and
                                  (III) regional economic 
                                development;
                          (iii) the potential costs and 
                        timeline for the actions recommended 
                        under this subparagraph;
                          (iv) provisions for modifying the 
                        actions and timeline to adapt to new 
                        information or circumstances; and
                          (v) a description of public input 
                        regarding the proposed actions, 
                        including--
                                  (I) input from water users 
                                that have covered power use; 
                                and
                                  (II) the degree to which 
                                those water users concur with 
                                the recommendations.
  (d) Restoration Activities.--The Secretary may--
          (1) plan, design, construct, operate, and maintain 
        projects in the Klamath Basin watershed, including--
                  (A) facilities to reduce fish entrainment;
                  (B) projects that reduce or avoid impacts on 
                aquatic resources of facilities involved in the 
                storage or diversion of water for irrigation in 
                the Klamath Project service area; and
                  (C) projects that restore habitats in the 
                Klamath Basin watershed, including Tribal 
                fishery resources held in trust;
          (2) undertake studies, including feasibility studies, 
        and improvements that the Secretary determines to be 
        necessary to implement this subsection;
          (3) in implementing this subsection, enter into 
        contracts, memoranda of understanding, financial 
        assistance agreements, cost-sharing agreements, or 
        other appropriate agreements with--
                  (A) State, Tribal, and local governmental 
                agencies; and
                  (B) private parties; and
          (4) accept and expend non-Federal funds in order to 
        facilitate implementation of this subsection.
  (e) Goals.--The goals of activities under subsections (b) and 
(d) shall include, as applicable--
          (1) the short-term and long-term reduction and 
        resolution of conflicts relating to water in the 
        Klamath Basin watershed; and
          (2) compatibility and utility for protecting natural 
        resources throughout the Klamath Basin watershed, 
        including the protection, preservation, and restoration 
        of Klamath River Tribal fishery resources, particularly 
        through collaboratively developed agreements.
  (f) Pumping Plant D.--The Secretary may enter into 1 or more 
agreements with the Tulelake Irrigation District to reimburse 
the Tulelake Irrigation District for not more than 69 percent 
of the cost incurred by the Tulelake Irrigation District for 
the operation and maintenance of Pumping Plant D, subject to 
the condition that the cost results in benefits to the United 
States.
  (g) Infrastructure.--
          (1) Keno and link river dams.--The Secretary of the 
        Interior shall comply with the terms of the agreement 
        entitled ``2016 Klamath Power and Facilities 
        Agreement''(``Agreement''), including Attachment A to 
        the Agreement.
          (2) Replacement of c canal flume.--
                  (A) In general.--The replacement of the C 
                Canal flume within the Klamath Project shall be 
                considered to be, and shall receive the 
                treatment authorized for, qualified emergency 
                extraordinary operation and maintenance work in 
                accordance with Federal reclamation law (the 
                Act of June 17, 1902 (32 Stat. 388, chapter 
                1093), and Acts supplemental to and amendatory 
                of that Act (43 U.S.C. 371 et seq.)).
                  (B) Contract.--
                          (i) In general.--Not later than 180 
                        days after the date of receipt of a 
                        request from the Klamath Irrigation 
                        District to enter into a contract with 
                        that district to amend the contract 
                        numbered 16-WC-20-4838, the Secretary 
                        shall enter into a contract with the 
                        Klamath Irrigation District providing 
                        that under the contract entered into 
                        under this subparagraph--
                                  (I) 35 percent of the total 
                                repayment obligation is 
                                nonreimbursable to the United 
                                States; and
                                  (II) 65 percent of the total 
                                repayment obligation shall be 
                                repaid to the United States 
                                over a period of 50 years.
                          (ii) Inclusion.--Although the 
                        Secretary shall not condition the 
                        agreement to the contract entered into 
                        under subparagraph (A) on any other 
                        term, the contract may include other 
                        terms that are not less favorable to 
                        the contractor than contract numbered 
                        16-WC-20-4838.

           *       *       *       *       *       *       *


                                  [all]