To authorize the Secretary of the Interior to convey certain facilities to the Fremont-Madison Irrigation District in the State of Idaho.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fremont-Madison Conveyance Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) District.--The term ``District'' means the Fremont-
        Madison Irrigation District, an irrigation district organized 
        under the law of the State of Idaho.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 3. CONVEYANCE OF FACILITIES.

    (a) Conveyance Requirement.--The Secretary of the Interior shall 
convey to the Fremont-Madison Irrigation District, Idaho, pursuant to 
the terms of the memorandum of agreement (MOA) between the District and 
the Secretary (Contract No. 1425-0901-09MA-0910-093310), all right, 
title, and interest of the United States in and to the canals, 
laterals, drains, and other components of the water distribution and 
drainage system that is operated or maintained by the District for 
delivery of water to and drainage of water from lands within the 
boundaries of the District as they exist upon the date of enactment of 
this Act, consistent with section 8.
    (b) Report.--If the Secretary has not completed any conveyance 
required under this Act by September 13, 2004, the Secretary shall, by 
no later than that date, submit a report to the Congress explaining the 
reasons that conveyance has not been completed and stating the date by 
which the conveyance will be completed.

SEC. 4. COSTS.

    (a) In General.--The Secretary shall require, as a condition of the 
conveyance under section 3, that the District pay the administrative 
costs of the conveyance and related activities, including the costs of 
any review required under the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.), as described in Contract No. 1425-0901-09MA-
0910-093310.
    (b) Value of Facilities To Be Transferred.--In addition to 
subsection (a) the Secretary shall also require, as a condition of the 
conveyance under section 2, that the District pay to the United States 
the lesser of the net present value of the remaining obligations owed 
by the District to the United States with respect to the facilities 
conveyed, or $280,000. Amounts received by the United States under this 
subsection shall be deposited into the Reclamation Fund.

SEC. 5. TETON EXCHANGE WELLS.

    (a) Contracts and Permit.--In conveying the Teton Exchange Wells 
pursuant to section 3, the Secretary shall also convey to the 
District--
            (1) Idaho Department of Water Resources permit number 22-
        7022, including drilled wells under the permit, as described in 
        Contract No. 1425-0901-09MA-0910-093310; and
            (2) all equipment appurtenant to such wells.
    (b) Extension of Water Service Contract.--The water service 
contract between the Secretary and the District (Contract No. 7-0907-
0910-09W0179, dated September 16, 1977) is hereby extended and shall 
continue in full force and effect until all conditions described in 
this Act are fulfilled.

SEC. 6. ENVIRONMENTAL REVIEW

    Prior to conveyance the Secretary shall complete all environmental 
reviews and analyses as set forth in the Memorandum of Agreement 
referenced in section 3(a).

SEC. 7. LIABILITY.

    Effective on the date of the conveyance the United States shall not 
be liable for damages of any kind arising out of any act, omission, or 
occurrence relating to the conveyed facilities, except for damages 
caused by acts of negligence committed by the United States or by its 
employees, agents, or contractors prior to the date of conveyance. 
Nothing in this section may increase the liability of the United States 
beyond that currently provided in chapter 171 of title 28, United 
States Code.

SEC. 8. WATER SUPPLY TO DISTRICT LANDS.

    The acreage within the District eligible to receive water from the 
Minidoka Project and the Teton Basin Projects is increased to reflect 
the number of acres within the District as of the date of enactment of 
this Act, including lands annexed into the District prior to enactment 
of this Act as contemplated by the Teton Basin Project. The increase in 
acreage does not alter deliveries authorized under the District's 
existing water storage contracts and as allowed by State water law.

SEC. 9. DROUGHT MANAGEMENT PLANNING.

    Within 60 days of enactment of this Act, in collaboration with 
stakeholders in the Henry's Fork watershed, the Secretary shall 
initiate a drought management planning process to address all water 
uses, including irrigation and the wild trout fishery, in the Henry's 
Fork watershed. Within 18 months of enactment of this Act, the 
Secretary shall submit a report to Congress, which shall include a 
final drought management plan.

SEC. 10. EFFECT.

    (a) In General.--Except as provided in this Act, nothing in this 
Act affects--
            (1) the rights of any person; or
            (2) any right in existence on the date of enactment of this 
        Act of the Shoshone-Bannock Tribes of the Fort Hall Reservation 
        to water based on a treaty, compact, executive order, 
        agreement, the decision in Winters v. United States, 207 U.S. 
        564 (1908) (commonly known as the ``Winters Doctrine''), or 
        law.
    (b) Conveyances.--Any conveyance under this Act shall not affect or 
abrogate any provision of any contract executed by the United States or 
State law regarding any irrigation district's right to use water 
developed in the facilities conveyed.

Summary: Fremont-Madison Conveyance Act - Directs the Secretary of the Interior to: (1) convey to the Fremont-Madison Irrigation District in Idaho, pursuant to a specified Memorandum of Agreement (MOA) between the District and the Secretary, the canals, lateral, drains, and other components of the water distribution and drainage system operated or maintained by the District. And (2) condition such conveyance on the District paying the administrative costs of the conveyance and related activities and the lesser of the net present value of the remaining obligations owed to the United States for the facilities conveyed or $280,000. Requires the Secretary, in conveying the Teton Exchange Wells, to also convey to the District Idaho Department of Water Resources permit number 22-7022, including drilled wells under such permit and all appurtenant equipment. Extends a specified water service contract between the Secretary and the District until all conditions described in this Act are fulfilled. Requires the Secretary, prior to conveyance, to complete all environmental reviews and analyses as set forth in the MOA. Increases the acreage within the District eligible to receive water from the Minidoka and Teton Basin Projects to reflect the number of acres within the District. Requires the Secretary: (1) in collaboration with stakeholders in the Henry's Fork watershed, to initiate a drought management planning process to address all water uses in the watershed, and (2) report a final plan to Congress.